The secretary shall provide the following subsidies, in accordance with the application process specified in this article, from the funds made available pursuant to Section 80800:

(a) Up to 50 percent of the cost of the premiums for the environmental insurance products provided pursuant to Section 80770.

(b) (1) Up to 80 percent of the self-insured retention amount of the cost overrun insurance provided pursuant to Section 80770, up to a maximum of five hundred thousand dollars ($500,000).

(2) The secretary may expend the funds available to pay a portion of the self-insured retention amount of the cost overrun insurance provided pursuant to Section 80770 only under all of the following conditions:

(A) The insured demonstrates that it exercised reasonably prudent business judgment in insuring the cost overrun, consistent with an attempt to minimize the incurred costs, and incurred the costs through no fault of its own.

(B) The insured pays, at a minimum, the first 20 percent of the self-insured retention amount.

(C) The secretary determines that the amount of the payment is in the best interests of the state, taking into account the environmental and economic benefits of the specified project, as compared to the benefit of conserving funds for assistance at other sites.

(Added by Stats. 2022, Ch. 257, Sec. 2. (AB 2293) Effective January 1, 2023. Operative January 1, 2024, pursuant to Sec. 4 of Stats. 2022, Ch. 257.)