(

a) The Legislature finds that it is in the best interest of the communities on the Monterey Peninsula that any joint exercise of powers authority formed under this

article to which the Monterey Peninsula Water Management District and one or more other public agencies are members is authorized to issue water rate relief bonds, hereafter “agency bonds,” the proceeds of which will be used to purchase water rate relief bonds that are authorized to be issued by an affiliate of a qualifying water utility in a financing order issued pursuant to

Article 5.7 (commencing with

Section 849) of

Chapter of Part of Division of the Public Utilities Code, to fund any necessary reserves and to pay the costs of issuance of the agency bonds. The agency bonds may be issued only if the commission finds in a financing order that the issuance, due to the availability of a federal or state income tax exemption, will provide savings to water customers on the Monterey Peninsula. (

b) Notwithstanding any other provision of law, the joint powers agency may issue bonds pursuant to

Article 2 (commencing with

Section 6540) or

Article 4 (commencing with

Section 6584). If the agency issues bonds under this section, the agency, notwithstanding

Article 5 (commencing with

Section 53760) of

Chapter of Part of Division of Title 5, shall not be eligible to file for bankruptcy pursuant to

Chapter 9 (commencing with

Section 901) of Title of the United States Code as long as the bonds and any related financing costs are outstanding and unpaid and shall remain ineligible for a period of one year and one day after repayment of the bonds and any related financing costs.