Establishes the water quality capital account.

Declares that expenditures from the water quality capital account may only be used: (1) To make grants or loans to public bodies, including grants to public bodies as cost-sharing moneys in any case where federal, local, or other moneys are made available on a cost-sharing basis, for the capital component of water pollution control facilities and activities;

(2) For purposes of assisting a public body to obtain an ownership interest in water pollution control facilities; or

(3) To defray any part of the capital component of the payments made by a public body to a service provider under a service agreement entered into under RCW 70.150.060.