California Code, Health and Safety Code - HSC § 80600

(a) If a regional board or a local oversight program agency under contract with the state board oversees a response action pursuant to this article, the department shall reimburse the regional board or state board from the account for oversight costs, if all of the following occur:

(b) If the department determines pursuant to paragraph (2) of subdivision (b) of Section 80520 that the account has insufficient funds, the regional board or state board shall recover its oversight costs from the loan recipient, and the department shall not be liable for these oversight costs.

(c) If a regional board or a local oversight program agency under contract with the state board oversees a response action pursuant to this article, the recipient of a loan approved pursuant to Article 7 (commencing with Section 80480) shall enter into an agreement with the regional board or the state board under paragraph (1) of subdivision (b) of Section 80520 for the oversight and approval of the response action at the site, prior to the release of loan funds by the department.  The agreement shall meet the requirements specified in the regulations adopted pursuant to Article 12 (commencing with Section 80620).