BILL NUMBER: SBX2 1	CHAPTERED
	BILL TEXT

	CHAPTER  1
	FILED WITH SECRETARY OF STATE  SEPTEMBER 30, 2008
	APPROVED BY GOVERNOR  SEPTEMBER 30, 2008
	PASSED THE SENATE  AUGUST 31, 2008
	PASSED THE ASSEMBLY  AUGUST 28, 2008
	AMENDED IN ASSEMBLY  AUGUST 28, 2008
	AMENDED IN ASSEMBLY  AUGUST 28, 2008
	AMENDED IN ASSEMBLY  AUGUST 4, 2008

INTRODUCED BY   Senators Perata, Machado, and Steinberg
   (Principal coauthor: Assembly Member Bass)
   (Coauthors: Assembly Members Arambula, Eng, Feuer, Huffman, Jones,
Krekorian, Laird, Salas, and Wolk)

                        SEPTEMBER 14, 2007

   An act to add and repeal Section 65595.5 of the Government Code,
and to add Sections 127.5 and 134.5 to, to add Division 33
(commencing with Section 83000) to, and to repeal and add Part 2.2
(commencing with Section 10530) of Division 6 of, the Water Code,
relating to water, and making an appropriation therefor.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1, Perata. Water quality, flood control, water storage, and
wildlife preservation.
   (1) The Integrated Regional Water Management Planning Act of 2002
authorizes a regional water management group, as defined, to prepare
and adopt a regional water plan meeting specified requirements.
   This bill would repeal these provisions of law and enact the
Integrated Regional Water Management Planning Act. Regional water
management groups, as defined, would be authorized to prepare and
adopt integrated regional water management plans meeting specified
requirements.
   The Department of Water Resources would be required to develop
project solicitation and evaluation guidelines for a specified
funding source.
   (2) Under existing law, various bond acts have been approved by
the voters to provide funds for water projects, facilities, and
programs. The Disaster Preparedness and Flood Prevention Bond Act of
2006, a bond act approved by the voters at the November 7, 2006,
statewide general election, authorizes the issuance of bonds in the
amount of $4,090,000,000 for the purposes of financing disaster
preparedness and flood prevention projects. The Safe Drinking Water,
Water Quality and Supply, Flood Control, River and Coastal Protection
Bond Act of 2006, an initiative bond act approved by the voters at
the November 7, 2006, statewide general election, authorizes the
issuance of bonds in the amount of $5,388,000,000 for the purposes of
financing a safe drinking water, water quality and supply, flood
control, and resource protection program. The Water Security, Clean
Drinking Water, Coastal and Beach Protection Act of 2002, an
initiative bond act approved by the voters at the November 5, 2002,
statewide general election, authorizes the issuance of bonds in the
amount of $3,440,000,000 to finance a safe drinking water, water
quality, and water reliability program. The Costa-Machado Water Act
of 2000, a bond act approved by the voters at the March 7, 2000,
statewide direct primary election, authorizes the issuance of bonds
in the amount of $1,970,000,000 for the purposes of financing a safe
drinking water, water quality, flood protection, and water
reliability program.
   This bill, with regard to those bond funds, would appropriate
$820,973,000 as follows: of the funds made available pursuant to the
Disaster Preparedness and Flood Prevention Bond Act of 2006,
$135,000,000 to the Department of Water Resources for essential
emergency preparedness supplies and projects, and $150,000,000 to the
department for stormwater flood management project grants; of the
funds made available pursuant to the Safe Drinking Water, Water
Quality and Supply, Flood Control, River and Coastal Protection Bond
Act of 2006, $50,000,000 to the State Department of Public Health for
grants for small community drinking water systems infrastructure
improvements and related actions, $50,400,000 to the State Department
of Public Health for grants for projects to prevent or reduce the
contamination of groundwater that serves as a source of drinking
water, $181,971,000 to the department for integrated regional water
management activities, $90,000,000 to the department for the
implementation of Delta water quality improvement projects that
protect drinking water supplies, $100,000,000 to the department for
the acquisition, preservation, protection, and restoration of
Sacramento-San Joaquin Delta resources, $12,000,000 to the department
to complete planning and feasibility studies associated with new
surface storage under the California Bay-Delta Program, $15,000,000
to the department for planning and feasibility studies to identify
potential options for the reoperation of the state's flood protection
and water supply systems, $10,000,000 to the department to update
the California Water Plan, $10,000,000 to the State Coastal
Conservancy for projects on the Santa Ana River, and $7,300,000 to
the department for the urban streams restoration program; of the
funds made available under the Water Security, Clean Drinking Water,
Coastal and Beach Protection Act of 2002, $3,760,000 to the
department for planning and feasibility studies associated with
surface storage under the California Bay-Delta Program; and of the
funds made available pursuant to the Costa-Machado Water Act of 2000,
$2,272,000 to the department for the Sacramento River Hamilton City
Area Flood Damage Reduction Project and $3,450,000 to the department
for the Franks Tract Pilot Project.
   The bill would provide that up to 5% of the funds appropriated by
the bill may be expended to pay for the administrative costs of that
program. The bill would provide that funds appropriated by the bill
are available for encumbrance until June 30, 2010. On January 10,
2010, program recipients would be required to report to the fiscal
committees of the Legislature with regard to the committed and
anticipated expenditures of these funds. The bill would require the
Director of Finance to administratively establish positions necessary
to implement activities funded by the bill's appropriations.
   (3) Under the Porter-Cologne Water Quality Control Act, the State
Water Resources Control Board and the California regional water
quality control boards are the principal state agencies with
authority over matters relating to water quality.
   This bill would require the state board, in consultation with
other agencies, to develop pilot projects in the Tulare Lake Basin
and the Salinas Valley focused on nitrate contamination. The bill
would require the state board to create an interagency task force, as
needed, to oversee the pilot projects and submit a report to the
Legislature on the scope and findings of the projects within 2 years
of receiving funding. The state board would be required to implement
recommendations for developing a groundwater cleanup program for the
Central Valley Water Quality Control Region and the Central Coast
Water Quality Control Region based upon pilot project results within
2 years of submitting the report to the Legislature.
   (4) Existing law requires the department, not later than January
1, 2009, to update a model water efficient landscape ordinance.
Existing law generally requires rules and regulations of the
department to be first presented to the California Water Commission
and to become effective only upon approval of the commission.
   This bill, until December 31, 2009, would provide that commission
review and approval does not apply to the department's adoption of
regulations updating the model water efficient landscape ordinance.
   (5) The bill would authorize the department to utilize the Program
Manager class series that was created for the California Bay-Delta
Authority for positions to manage vital departmental activities.
   Appropriation: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 65595.5 is added to the Government Code, to
read:
   65595.5.  (a) Notwithstanding Section 161 of the Water Code, until
December 31, 2009, in order to ensure timely implementation of water
conservation activities relating to landscaping, Section 161 of the
Water Code does not apply to the department's adoption of regulations
required by Section 65595.
   (b) This section shall remain in effect only until January 1,
2010, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2010, deletes or extends
that date.
  SEC. 2.  Section 127.5 is added to the Water Code, to read:
   127.5.  The department may utilize the program manager class
series that was created for the California Bay-Delta Authority, for
positions to manage vital departmental activities, including those
relating to climate change mitigation and adaptation, water
management, and statewide planning.
  SEC. 3.  Section 134.5 is added to the Water Code, to read:
   134.5.  The Director of Finance shall administratively establish
positions necessary to implement activities funded by the
appropriations made in Division 33 (commencing with Section 83000).
  SEC. 4.  Part 2.2 (commencing with Section 10530) of Division 6 of
the Water Code is repealed.
  SEC. 5.  Part 2.2 (commencing with Section 10530) is added to
Division 6 of the Water Code, to read:

      PART 2.2.  INTEGRATED REGIONAL WATER MANAGEMENT PLANS


      CHAPTER 1.  SHORT TITLE


   10530.  This part shall be known and may be cited as the
Integrated Regional Water Management Planning Act.
      CHAPTER 2.  LEGISLATIVE FINDINGS AND DECLARATIONS


   10531.  The Legislature finds and declares all of the following:
   (a) Water is a valuable natural resource in California, and should
be managed to ensure the availability of sufficient supplies to meet
the state's agricultural, domestic, industrial, and environmental
needs. It is the intent of the Legislature to encourage local
agencies to work cooperatively to manage their available local and
imported water supplies to improve the quality, quantity, and
reliability of those supplies.
   (b) Local agencies can realize efficiencies by coordinating and
integrating their assets and seeking mutual solutions to water
management issues.
   (c) The reliability of water supplies can be significantly
improved by diversifying water portfolios, taking advantage of local
and regional opportunities, and considering a broad variety of water
management strategies as described in the California Water Plan.
   (d) The implementation of this part will facilitate the
development of integrated regional water management plans, thereby
assisting each region of the state to improve water supply
reliability, water quality, and environmental stewardship to meet
current and future needs.
   (e) Water management is integrally linked to public health and the
health of all natural resources within our watersheds. It is the
intent of the Legislature that water management strategies and
projects are carried out in a way that promotes these important
public values.
      CHAPTER 3.  DEFINITIONS


   10532.  Unless the context otherwise requires, the definitions set
forth in this chapter govern the construction of this part.
   10533.  "Basin plan" means a water quality control plan developed
pursuant to Section 13240.
   10534.  "Integrated regional water management plan" means a
comprehensive plan for a defined geographic area, the specific
development, content, and adoption of which shall satisfy
requirements developed pursuant to this part. At a minimum, an
integrated regional water management plan describes the major
water-related objectives and conflicts within a region, considers a
broad variety of water management strategies, identifies the
appropriate mix of water demand and supply management alternatives,
water quality protections, and environmental stewardship actions to
provide long-term, reliable, and high-quality water supply and
protect the environment, and identifies disadvantaged communities in
the region and takes the water-related needs of those communities
into consideration.
   10535.  "Local agency" means any city, county, city and county,
special district, joint powers authority, or other political
subdivision of the state, a public utility as defined in Section 216
of the Public Utilities Code, or a mutual water company as defined in
Section 2725 of the Public Utilities Code.
   10536.  "Plan" means an integrated regional water management plan.

   10537.  "Regional projects or programs" means projects or programs
identified in an integrated regional water management plan that
accomplish any of the following:
   (a) Reduce water demand through agricultural and urban water use
efficiency.
   (b) Increase water supplies for any beneficial use through the use
of any of the following, or other, means:
   (1) Groundwater storage and conjunctive water management.
   (2) Desalination.
   (3) Precipitation enhancement.
   (4) Water recycling.
   (5) Regional and local surface storage.
   (6) Water-use efficiency.
   (7) Stormwater management.
   (c) Improve operational efficiency and water supply reliability,
including conveyance facilities, system reoperation, and water
transfers.
   (d) Improve water quality, including drinking water treatment and
distribution, groundwater and aquifer remediation, matching water
quality to water use, wastewater treatment, water pollution
prevention, and management of urban and agricultural runoff.
   (e) Improve resource stewardship, including agricultural lands
stewardship, ecosystem restoration, flood plain management, recharge
area protection, urban land use management, groundwater management,
water-dependent recreation, fishery restoration, including fish
passage improvement, and watershed management.
   (f) Improve flood management through structural and nonstructural
means, or by any other means.
   10538.  "Regional reports or studies" means reports or studies
relating to any of the matters described in subdivisions (a) to (f),
inclusive, of Section 10537, that are identified in an integrated
regional water management plan.
   10539.  "Regional water management group" means a group in which
three or more local agencies, at least two of which have statutory
authority over water supply or water management, as well as those
other persons who may be necessary for the development and
implementation of a plan that meets the requirements in Sections
10540 and 10541, participate by means of a joint powers agreement,
memorandum of understanding, or other written agreement, as
appropriate, that is approved by the governing bodies of those local
agencies.
      CHAPTER 4.  INTEGRATED REGIONAL WATER MANAGEMENT PLANS


   10540.  (a) A regional water management group may prepare and
adopt an integrated regional water management plan in accordance with
this part.
   (b) A regional water management group may coordinate its planning
activities to address or incorporate all or part of any of the
following actions of its members into its plan:
   (1) Groundwater management planning pursuant to Part 2.75
(commencing with Section 10750) or other specific groundwater
management authority.
   (2) Urban water management planning pursuant to Part 2.6
(commencing with Section 10610).
   (3) The preparation of a water supply assessment required pursuant
to Part 2.10 (commencing with Section 10910).
   (4) Agricultural water management planning pursuant to Part 2.8
(commencing with Section 10800).
   (5) City and county general planning pursuant to Section 65350 of
the Government Code.
   (6) Other water resource management planning, including flood
protection, watershed management planning, and multipurpose program
planning.
   (c) At a minimum, all plans shall address all of the following:
   (1) Protection and improvement of water supply reliability,
including identification of feasible agricultural and urban water use
efficiency strategies.
   (2) Identification and consideration of the drinking water quality
of communities within the area of the plan.
   (3) Protection and improvement of water quality within the area of
the plan, consistent with the relevant basin plan.
   (4) Identification of any significant threats to groundwater
resources from overdrafting.
   (5) Protection, restoration, and improvement of stewardship of
aquatic, riparian, and watershed resources within the region.
   (6) Protection of groundwater resources from contamination.
   (7) Identification and consideration of the water-related needs of
disadvantaged communities in the area within the boundaries of the
plan.
   (d) This section does not obligate a local agency to fund the
implementation of any project or program.
   10541.  (a) The department shall develop project solicitation and
evaluation guidelines for the application of funds made available
pursuant to Section 75026 of the Public Resources Code, to enable
broad and diverse participation in integrated regional water
management plan development and refinement.
   (b) The department shall conduct two public meetings to consider
public comments prior to finalizing the guidelines. The department
shall publish the draft solicitation and evaluation guidelines on its
Internet Web site at least 30 days before the public meetings. One
meeting shall be conducted at a location in northern California and
one meeting shall be conducted at a location in southern California.
Upon adoption, the department shall transmit copies of the guidelines
to the fiscal committees and the appropriate policy committees of
the Legislature. To the extent feasible, each state agency shall
provide outreach to disadvantaged communities to promote access to
and participation in those meetings.
   (c) The department shall consult with the board, the California
regional water quality control boards, the State Department of Public
Health, the Department of Fish and Game, the California Bay-Delta
Authority or its successor, and other state agencies with water
management responsibility and authority in the development of the
guidelines.
   (d) The department may periodically review and update the
guidelines to accommodate changes in funding sources, statutory
requirements, new commonly accepted management practices, and changes
in state water management policy. Any guideline changes shall be
made with appropriate consultation with other state agencies and
public review pursuant to subdivisions (b) and (c).
   (e) The guidelines shall require that integrated regional water
management plans include all of the following:
   (1) Consideration of all of the resource management strategies
identified in the California Water Plan, as updated by department
Bulletin No. 160-2005 and future updates.
   (2) Consideration of objectives in the appropriate basin plan or
plans and strategies to meet applicable water quality standards.
   (3) Description of the major water-related objectives and
conflicts within a region.
   (4) Measurable regional objectives and criteria for developing
regional project priorities.
   (5) An integrated, collaborative, multibenefit approach to
selection and design of projects and programs.
   (6) Identification and consideration of the water-related needs of
disadvantaged communities in the area within the boundaries of the
plan.
   (7) Performance measures and monitoring to demonstrate progress
toward meeting regional objectives.
   (8) A plan for implementation and financing of identified projects
and programs.
   (9) Consideration of greenhouse gas emissions of identified
programs and projects.
   (10) Evaluation of the adaptability to climate change of water
management systems in the region.
   (11) Documentation of data and technical analyses used in the
development of the plan.
   (12) A process to disseminate data and information related to the
development and implementation of the plan.
   (13) A process to coordinate water management projects and
activities of participating local agencies and local stakeholders to
avoid conflicts and take advantage of efficiencies.
   (14) Any other matters identified by the department.
   (f) The guidelines shall include standards for identifying a
region for the purpose of developing or modifying an integrated
regional water management plan. At a minimum, a region shall be a
contiguous geographic area encompassing the service areas of multiple
local agencies, and shall be defined to maximize opportunities for
integration of water management activities. The department shall
develop a process to approve the composition of a region for the
purposes of Sections 75026, 75027, and 75028 of the Public Resources
Code.
   (g) The guidelines shall require that the development and
implementation of an integrated regional water management plan
include a public process that provides outreach and an opportunity to
participate in plan development and implementation to appropriate
local agencies and stakeholders, as applicable to the region,
including all of the following:
   (1) Wholesale and retail water purveyors, including a local
agency, mutual water company, or a water corporation as defined in
Section 241 of the Public Utilities Code.
   (2) Wastewater agencies.
   (3) Flood control agencies.
   (4) Municipal and county governments and special districts.
   (5) Electrical corporations, as defined in Section 218 of the
Public Utilities Code.
   (6) Native American tribes that have lands within the region.
   (7) Self-supplied water users, including agricultural, industrial,
residential, park districts, school districts, colleges and
universities, and others.
   (8) Environmental stewardship organizations, including watershed
groups, fishing groups, land conservancies, and environmental groups.

   (9) Community organizations, including landowner organizations,
taxpayer groups, and recreational interests.
   (10) Industry organizations representing agriculture, developers,
and other industries appropriate to the region.
   (11) State, federal, and regional agencies or universities, with
specific responsibilities or knowledge within the region.
   (12) Disadvantaged community members and representatives,
including environmental justice organizations, neighborhood councils,
and social justice organizations.
   (13) Any other interested groups appropriate to the region.
   (h) The guidelines shall require integrated regional water
management plans to be developed through a collaborative process that
makes public both of the following:
   (1) The process by which decisions are made in consultation with
the persons or entities identified in subdivision (g).
   (2) The manner in which a balance of interested persons or
entities representing different sectors and interests listed in
subdivision (g) have been or will be engaged in the process described
in this subdivision, regardless of their ability to contribute
financially to the plan.
   (i) The guidelines shall provide for a process for the
development, periodic review, updating, and amending of integrated
regional water management plans. The department shall establish
eligibility requirements for the project funding, that provide
sufficient time for the updating of plans as necessary to reflect
changes in the guidelines.
   10543.  (a) A regional water management group proposing to prepare
an integrated regional water management plan shall publish a notice
of intention to prepare the plan in accordance with Section 6066 of
the Government Code.
   (b) For the purposes of carrying out this part, the regional water
management group shall make available to the public the
documentation prepared pursuant to subdivision (g) of Section 10541
describing the manner in which interested parties may participate in
developing the integrated regional water management plan.
   (c) Upon the completion of the integrated regional water
management plan, the regional water management group shall publish a
notice of intention to adopt the plan in accordance with Section 6066
of the Government Code and shall adopt the plan in a public meeting
of its governing board.
      CHAPTER 5.  FUNDING FOR QUALIFIED PROJECTS AND PROGRAMS


   10544.  When selecting projects and programs pursuant to Division
24 (commencing with Section 78500), Division 26 (commencing with
Section 79000), Division 26.5 (commencing with Section 79500), or
pursuant to any grant funding authorized on or after January 1, 2009,
for water management activities, the department, the board, the
State Department of Public Health, and the California Bay-Delta
Authority or its successor, as appropriate, shall include in any set
of criteria used to select projects and programs for funding, a
criterion that provides a preference for regional projects or
programs.
   10546.  An integrated regional water management plan prepared
pursuant to this part shall be eligible for funding pursuant to
Section 75026 of the Public Resources Code, and for any funding
authorized on or after January 1, 2009, that is allocated
specifically for implementation of integrated regional water
management.
   10547.  This part does not prohibit the department from
implementing Section 75026 of the Public Resources Code by using
existing integrated regional water management guidelines in
accordance with subdivision (d) of Section 75026 of the Public
Resources Code.
      CHAPTER 6.  MISCELLANEOUS


   10548.  This part does not affect any powers granted to a local
agency by any other law.
   10549.  This part does not authorize a regional water management
group to define, or otherwise determine, the water rights of any
person.
   10550.  The plan or project shall not be funded pursuant to this
part if it would fund activities inconsistent with applicable state
and federal water quality laws.
  SEC. 6.  Division 33 (commencing with Section 83000) is added to
the Water Code, to read:

      DIVISION 33.  INTEGRATED WATER SUPPLY AND FLOOD PROTECTION
PLANNING, DESIGN, AND IMPLEMENTATION


   83000.  The Legislature hereby finds and declares all of the
following:
   (a) Water is vital to the economy, environment, and overall
well-being of the state.
   (b) California faces increasing challenges in managing its water
supply due to climate change, uncertainty regarding the availability
of water from the Sacramento-San Joaquin Delta and other sources, an
increasing state population, limitations on public funds, and other
factors.
   (c) California must adopt a new, updated, and comprehensive set of
water planning, design, and implementation policies that reflect
these realities to protect its water supply future.
   (d) In the past, state laws, funding schemes, and administrative
actions have treated the planning, construction, and operation of
water supply, groundwater, and flood control systems as separate and
distinct activities, thereby reducing efficiency and water supply
reliability.
   (e) California has not taken full advantage of the cost savings,
the environmental benefits, or the expediency of more efficient
operations and usage of existing water supply, storage, and flood
protection facilities.
   (f) It is the policy of the state to more effectively integrate
its flood protection systems with its water supply and conveyance
systems in order to conserve limited public dollars, increase the
available water supply, improve water quality, increase wildlife and
ecosystem protections, protect public health and safety, and address
the effects of climate change.
   (g) The purpose of this division is to require the integration of
flood protection and water systems to achieve multiple public
benefits, including all of the following:
   (1) Increasing water supply reliability in the least costly, most
efficient, and most reliable manner to meet current and future state
needs.
   (2) Increasing use of water use efficiency and water conservation
measures to increase and extend existing water supplies.
   (3) Reducing energy consumption associated with water transport,
thereby reducing state greenhouse gas emissions.
   (4) Improving water management to protect and restore ecosystems
and wildlife habitat.
   83001.  In order to provide the least costly, most efficient, and
reliable water supply to a growing state, it is the intent of the
Legislature that the department accomplish the following objectives:
   (a) Integrate state flood protection and water supply systems.
   (b) Promote conjunctive use of groundwater storage capacity to
improve overall water supply and flood system operation.
   (c) Promote increased water use efficiency through expanded use of
water conservation, water recycling, and improvements in technology.

   83002.  The sum of eight hundred twenty million nine hundred
seventy-three thousand dollars ($820,973,000) is hereby appropriated
in accordance with the following schedule:
   (a) Of the funds made available pursuant to Chapter 1.699
(commencing with Section 5096.800) of Division 5 of the Public
Resources Code, the sum of two hundred eighty-five million dollars
($285,000,000) is hereby appropriated as follows:
   (1) Pursuant to subdivision (c) of Section 5096.821 of the Public
Resources Code, the sum of one hundred thirty-five million dollars
($135,000,000) to the department for the acquisition, design, and
construction of essential emergency preparedness supplies and
projects. Prior to the design or construction of any project funded
pursuant to this paragraph, the California Bay-Delta Authority, or
its successor, shall approve the specific project or program.
Preference shall be given to projects that protect and improve Delta
water quality and drinking water supplies. Of the amount made
available pursuant to this paragraph, not less than thirty-five
million dollars ($35,000,000) shall be expended by the department for
projects to reinforce those sections of the levees that have the
highest potential to suffer breaches or failure and cause harm to
municipal and industrial water supply aqueducts that cross the Delta
and which are vulnerable to flood damage, including the installation
of scour protection on the supports of the aqueducts in those areas
located adjacent to the sections of the levees that have been
identified as the highest risk of breaches or failure.
   (2) Pursuant to Section 5096.827 of the Public Resources Code, the
sum of one hundred fifty million dollars ($150,000,000) to the
department for grants for stormwater flood management projects that
reduce flood damage and provide other benefits, including groundwater
recharge, water quality improvement, and ecosystem restoration. Not
less than one hundred million dollars ($100,000,000) of this amount
shall be available for projects that address immediate public health
and safety needs, strengthen existing flood control facilities to
address seismic safety issues. Twenty million dollars ($20,000,000)
shall be available for local agencies to meet immediate water quality
needs related to combined municipal sewer and stormwater systems to
prevent sewage discharges into state waters. Twenty million dollars
($20,000,000) shall be available for urban stream stormwater flood
management projects to reduce the frequency and impacts of flooding
in watersheds that drain to the San Francisco Bay.
   (b) Of the funds made available pursuant to Division 43
(commencing with Section 75001) of the Public Resources Code, the sum
of five hundred twenty-six million four hundred ninety-one thousand
dollars ($526,491,000) is hereby appropriated as follows:
   (1) Pursuant to Section 75022 of the Public Resources Code, the
sum of fifty million dollars ($50,000,000) to the State Department of
Public Health for grants for small community drinking water system
infrastructure improvements and related action to meet safe drinking
water standards. First priority for these funds shall be given to
disadvantaged or severely disadvantaged communities lacking resources
to provide safe drinking water to residents. Small community
drinking water systems that are dependent on surface water and are
under orders from the State Department of Public Health to boil water
from existing treatment systems for parasites, viruses, or giardia
shall be eligible for grants for drinking water system infrastructure
improvements.
   (2) Pursuant to Section 75025 of the Public Resources Code, the
sum of fifty million four hundred thousand dollars ($50,400,000) to
the State Department of Public Health for grants for projects to
prevent or reduce the contamination of groundwater that serves as a
source of drinking water. Funds appropriated by this paragraph shall
be available for immediate projects needed to protect public health
by preventing or reducing the contamination of groundwater that
serves as a major source of drinking water for a community.
   (A) The State Department of Public Health shall prioritize project
funding based on the following criteria:
   (i) The threat posed by groundwater contamination to the affected
community's overall drinking water supplies, including the need for
the treatment or construction of alternative supplies if groundwater
is not available due to contamination.
   (ii) The potential for groundwater contamination to spread and
reduce drinking water supply and water storage capacity for major
population areas.
   (iii) The potential of the project, if fully implemented, to
enhance local water supply reliability.
   (iv) The potential of the project to increase opportunities for
groundwater recharge and optimization of groundwater supplies.
   (B) The State Department of Public Health shall give additional
consideration to projects that meet any of the following criteria:
   (i) The project is implemented pursuant to a comprehensive
basinwide groundwater quality management and remediation plan or is
necessary to develop a comprehensive groundwater plan.
   (ii) Affected groundwater provides a local supply that, if
contaminated, will require the importation of additional water from
the Sacramento-San Joaquin Delta or the Colorado River.
   (iii) The project will serve an economically disadvantaged
community.
   (iv) Multiple contaminants affect more than one-third of the well
capacity of a local water system.
   (C) Of the amount made available by this paragraph, up to ten
million dollars ($10,000,000) shall be allocated for projects that
meet the criteria of this paragraph and both of the following
criteria:
   (i) The project has the potential to leverage funds.
   (ii) The project addresses contamination at a site on the list
maintained by the Department of Toxic Substances Control pursuant to
Section 25356 of the Health and Safety Code or a site listed on the
National Priorities List pursuant to the federal Comprehensive
                                   Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C. Sec. 9601 et
seq.).
   (D) Of the funds made available by this paragraph, two million
dollars ($2,000,000) shall be allocated to the State Department of
Public Health to contract with the State Water Resources Control
Board for the purposes of Section 83002.5.
   (3) (A) Pursuant to Section 75026 of the Public Resources Code,
the sum of one hundred eighty-one million seven hundred ninety-one
thousand dollars ($181,791,000) to the department for integrated
regional water management activities as follows:
   (i) One hundred million dollars ($100,000,000) for implementation
grants.
   (ii) Thirty-nine million dollars ($39,000,000) for planning
grants, local groundwater assistance grants, and CALFED scientific
research grants.
   (iii) Twenty-two million ninety-one thousand dollars ($22,091,000)
for projects with interregional or statewide benefits.
   Of the amount made available pursuant to this paragraph, not less
than ten million dollars ($10,000,000) shall be made available for
expenditure to interconnect municipal and industrial water supply
aqueducts that cross the Delta and that are vulnerable to flood
damage, including the design and construction of interties among
aqueducts that provide at least 90 percent of a regional water supply
that would be threatened in the event of levee failure or other
disaster, and that support an integrated regional emergency water
supply system.
   (iv) Twenty million seven hundred thousand dollars ($20,700,000)
for program delivery costs.
   (B) An implementation grant pursuant to clause (i) of subparagraph
(A) shall be available only for projects included in an integrated
regional water management plan that meets one of the following
conditions:
   (i) The plan complies with Part 2.2 (commencing with Section
10530) of Division 6.
   (ii) For a plan adopted before the date on which this section is
enacted, both of the following apply:
   (I) The regional water management group that prepared the plan
enters into a binding agreement with the department to update the
plan to comply with Part 2.2 (commencing with Section 10530) of
Division 6 within two years of the date on which the agreement was
entered into.
   (II) The regional water management group undertakes all reasonable
and feasible efforts to take into account water-related needs of
disadvantaged communities in the area within the boundaries of the
plan.
   (C) Of the funds described in clauses (i) and (ii) of subparagraph
(A), the department shall allocate not less than 10 percent to
facilitate and support the participation of disadvantaged communities
in integrated regional water management planning and for projects
that address critical water supply or water quality needs for
disadvantaged communities.
   (D) Of the funds described in clause (iii) of subparagraph (A),
the department shall allocate two million dollars ($2,000,000) to
Tulare County for development of an integrated water quality and
wastewater treatment program plan to address the drinking water and
wastewater needs of disadvantaged communities in the Tulare Lake
Basin. Funds allocated pursuant to this paragraph shall be available
for assessment and feasibility studies necessary to develop the plan,
and the plan shall include recommendations for planning,
infrastructure, and other water management actions, and shall include
specific recommendations for regional drinking water treatment
facilities, regional wastewater treatment facilities, conjunctive use
sites and groundwater recharge, groundwater for surface water
exchanges, related infrastructure, and cost-sharing mechanisms.
Tulare County shall consult with appropriate stakeholders, including
representatives of disadvantaged communities, when preparing the
plan. The department, in consultation with the State Department of
Public Health, shall submit the plan to the Legislature by January 1,
2011.
   (E) Of the funds described in clause (i) of subparagraph (A), the
department shall allocate not less than twenty million dollars
($20,000,000) to support urban and agricultural water conservation
projects necessary to meet a 20-percent reduction in per capita water
use by the year 2020.
   (4) Pursuant to Section 75029 of the Public Resources Code, the
sum of ninety million dollars (90,000,000) to the department for the
implementation of Delta water quality improvement projects that
protect drinking water supplies as follows:
   (A) Pursuant to subdivision (d) of Section 75029 of the Public
Resources Code, the sum of fifty million dollars ($50,000,000) for
drinking water intake facility projects to improve the quality of
drinking water supply from the Sacramento-San Joaquin Delta that are
identified in the June 2005 Delta Region Drinking Water Quality
Management Plan. Funding shall be made available for environmental
review, design, and construction. Project proponents seeking funding
for construction shall meet all of the following criteria:
   (i) Have completed documentation required under the California
Environmental Quality Act (Division 13 (commencing with Section
21000) of the Public Resources Code) and a notice of determination
has been filed prior to June 30, 2008.
   (ii) Have demonstrated multiple benefits in conveyance and Delta
operation to achieve protection or improvement to Delta pelagic
fisheries, as well as drinking water quality improvement and public
health protection.
   (iii) Are able to complete design and commence construction before
June 30, 2009.
   (iv) Have local or federal cost-sharing funds immediately
available.
   (B) The sum of forty million dollars ($40,000,000) for projects
consistent with subdivision (c) of Section 75029 of the Public
Resources Code.
   (5) Pursuant to Section 75033 of the Public Resources Code, the
sum of one hundred million dollars ($100,000,000) to the department
for the acquisition, preservation, protection, and restoration of
Sacramento-San Joaquin Delta resources in accordance with Section
75033 of the Public Resources Code. The department shall expend these
funds pursuant to priorities that reflect the value of the resources
and land uses protected by the levees to the state as a whole,
consistent with the Delta Vision Strategic Plan. Projects shall be
selected to improve the stability of the Delta levee system, reduce
subsidence, and assist in restoring the ecosystem of the Delta.
Priority shall be given to projects that improve conditions for Delta
smelt and other native fish. Up to five million dollars ($5,000,000)
made available pursuant to this paragraph shall be available as
grants and direct expenditures for emergency communications equipment
to improve emergency response preparedness.
   (6) Pursuant to Chapter 4 (commencing with Section 75041) of
Division 43 of the Public Resources Code, the sum of thirty-seven
million dollars ($37,000,000) to the department as follows:
   (A) (i) Twelve million dollars ($12,000,000) to complete the
planning and feasibility studies associated with new surface storage
under the California Bay-Delta Program.
   (ii) The planning and feasibility studies shall include the
following information:
   (I) The identification of specific construction and operation
conditions proposed for each surface storage facility, including
consideration of climate change, an estimated schedule for the
construction and completion of each project funded under Section
75041, and the total costs of constructing each project.
   (II) A description of the estimated total costs to construct each
project and an allocation of the costs to public and private
beneficiaries.
   (iii) Any feasibility study conducted by or funded by the state
for new surface storage under the California Bay-Delta Program shall
evaluate funded projects consistent with all statutory and other
legally established requirements for protection of environmental and
natural resources, including protections for the McCloud River
pursuant to Section 5093.542 of the Public Resources Code.
   (iv) The feasibility studies shall be prepared and submitted to
the Governor and the Legislature no later than December 31, 2009.
   (B) (i) Fifteen million dollars ($15,000,000) for planning and
feasibility studies to identify potential options for the reoperation
of the state's flood protection and water supply systems that will
optimize the use of existing facilities and groundwater storage
capacity.
   (ii) The studies shall incorporate appropriate climate change
scenarios and be designed to determine the potential to achieve the
following objectives:
   (I) Integration of flood protection and water supply systems to
increase water supply reliability and flood protection, improve water
quality, and provide for ecosystem protection and restoration.
   (II) Reoperation of existing reservoirs, flood facilities, and
other water facilities in conjunction with groundwater storage to
improve water supply reliability, flood control, and ecosystem
protection and to reduce groundwater overdraft.
   (III) Promotion of more effective groundwater management and
protection and greater integration of groundwater and surface water
resource uses.
   (IV) Improvement of existing water conveyance systems to increase
water supply reliability, improve water quality, expand flood
protection, and protect and restore ecosystems.
   (C) Ten million dollars ($10,000,000) to update the California
Water Plan, including evaluation of climate change impacts, the
development of strategies to adapt to climate change impacts,
technical assistance to local agencies that incorporate climate
change into their studies, reports, and plans, and the identification
of strategies to reduce greenhouse gas emissions related to the
storage, conveyance, and distribution of water.
   (D) Of the money made available pursuant to subparagraphs (A),
(B), and (C), up to two million dollars ($2,000,000) may be expended
for planning and feasibility studies necessary to implement the Delta
Vision Strategic Plan, developed pursuant to Executive Order No.
S-17-06, dated September 28, 2006, establishing the Delta Vision
process.
   (7) Pursuant to Section 75050 of the Public Resources Code, the
sum of seventeen million three hundred thousand dollars ($17,300,000)
for the protection and restoration of rivers and streams as follows:

   (A) Ten million dollars ($10,000,000) to the State Coastal
Conservancy for the purposes of subdivision (i) of Section 75050 of
the Public Resources Code.
   (B) Seven million three hundred thousand dollars ($7,300,000) to
the department for the purposes of subdivision (e) of Section 75050
of the Public Resources Code.
   (c) Of the funds made available pursuant to subdivision (a) of
Section 79550, the sum of three million seven hundred sixty thousand
dollars ($3,760,000) is hereby appropriated to the department for
planning and feasibility studies associated with surface storage
under the California Bay-Delta Program.
   (d) (1) Of the funds available pursuant to Section 79101.4, the
sum of two million two hundred seventy-two thousand dollars
($2,272,000) is appropriated to the department for the Sacramento
River Hamilton City Area Flood Damage Reduction Project.
   (2) Of the funds available pursuant to subdivision (c) of Section
79196.5, the sum of three million four hundred fifty thousand dollars
($3,450,000) is appropriated to the department for the Franks Tract
Pilot Project under the CALFED Drinking Water Quality Program.
   83002.5.  To improve understanding of the causes of groundwater
contamination, identify potential remediation solutions and funding
sources to recover costs expended by the state for the purposes of
this section to clean up or treat groundwater, and ensure the
provision of safe drinking water to all communities, the State Water
Resources Control Board, in consultation with other agencies as
specified in this section, shall develop pilot projects in the Tulare
Lake Basin and the Salinas Valley that focus on nitrate
contamination and do all of the following:
   (a) (1) In collaboration with relevant agencies and utilizing
existing data, including groundwater ambient monitoring and
assessment results along with the collection of new information as
needed, do all of the following:
   (A) Identify sources, by category of discharger, of groundwater
contamination due to nitrates in the pilot project basins.
   (B) Estimate proportionate contributions to groundwater
contamination by source and category of discharger.
   (C) Identify and analyze options within the board's current
authority to reduce current nitrate levels and prevent continuing
nitrate contamination of these basins and estimate the costs
associated with exercising existing authority.
   (2) In collaboration with the State Department of Public Health,
do all of the following:
   (A) Identify methods and costs associated with the treatment of
nitrate contaminated groundwater for use as drinking water.
   (B) Identify methods and costs to provide an alternative water
supply to groundwater reliant communities in each pilot project
basin.
   (3) Identify all potential funding sources to provide resources
for the cleanup of nitrates, groundwater treatment for nitrates, and
the provision of alternative drinking water supply, including, but
not limited to, state bond funding, federal funds, water rates, and
fees or fines on polluters.
   (4) Develop recommendations for developing a groundwater cleanup
program for the Central Valley Water Quality Control Region and the
Central Coast Water Quality Control Region based upon pilot project
results.
   (b) Create an interagency task force, as needed, to oversee the
pilot projects and develop recommendations for the Legislature. The
interagency task force may include the board, the State Department of
Public Health, the Department of Toxic Substances Control, the
California Environmental Protection Agency, the Department of Water
Resources, local public health officials, the Department of Food and
Agriculture, and the Department of Pesticide Regulation.
   (c) Submit a report to the Legislature on the scope and findings
of the pilot projects, including recommendations, within two years of
receiving funding.
   (d) Implement recommendations in the Central Coast Water Quality
Control Region and the Central Valley Water Quality Control Region
pursuant to paragraph (4) of subdivision (a) within two years of
submitting the report described in subdivision (c) to the
Legislature.
   (e) For the Salinas Valley Pilot Project, the State Water
Resources Control Board shall consult with the Monterey County Water
Resources Agency.
   83002.6.  Up to 5 percent of the funds appropriated by this
division may be expended to pay the costs incurred in the
administration of that program.
   83002.7.  Funds appropriated by this division shall only be
available for encumbrance until June 30, 2010. On January 10, 2010,
any program that is the recipient of an appropriation made by this
division shall report to the fiscal committees of the Legislature on
the details of all committed and anticipated expenditures of these
funds. The report shall include all of the following information:
   (a) Fiscal detail of state operations support and local assistance
costs.
   (b) A general description of the project and the project funding
made available by an appropriation in the annual Budget Act for the
2008-09 fiscal year or proposed to be made available in the annual
Budget Act for the 2009-10 fiscal year.
   (c) A description of the manner in which funds have been expended
and a plan for the future expenditure of funds.
   (d) An anticipated timeframe for the full expenditure of the
appropriation.
   (e) An anticipated timeframe for the full completion of the
designated project.
   (f) The amount of total matching project funding that is being
provided by an entity other than the state.