BILL NUMBER: AB 300	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 20, 2009
	AMENDED IN ASSEMBLY  APRIL 2, 2009

INTRODUCED BY   Assembly Member Caballero

                        FEBRUARY 17, 2009

   An act to amend, repeal, and add Section 66473.7 of the Government
Code, and to amend, repeal, and add Section 10910 of the Water Code,
relating to subdivision map approvals.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 300, as amended, Caballero. Subdivisions: water supply.
   (1) The Subdivision Map Act prohibits approval of a tentative map,
or a parcel map for which a tentative map was not required, or a
development agreement for a subdivision of property of more than 500
dwelling units, except as specified, including the design of the
subdivision or the type of improvement, unless the legislative body
of a city or county or the designated advisory agency provides
written verification from the applicable public water system that a
sufficient water supply is available or, in addition, a specified
finding is made by the local agency that sufficient water supplies
are, or will be, available prior to completion of the project.
   This bill would require, until January 1, 2020, the public water
system, or the local agency if there is no public water system, to
review  and   , verify for accuracy, 
and approve,  as specified, the subdivider's water savings
projections attributable to voluntary demand management measures, as
defined. The public water agency would be authorized to collect fees
necessary to provide the additional analysis of the voluntary demand
management measures. Water savings projections would be authorized to
be calculated using the water savings projections adopted by the
California Urban Water Conservation Council. Water savings
projections for measures for which the California Urban Water
Conservation Council does not have adopted findings would be required
to be based on substantial evidence in the record and included in
the water supply assessment adopted by the water supplier. If a
project applicant proposes to use a new voluntary water reduction
demand management measure that is not based on water savings
projections adopted by the California Urban Water Conservation
Council, the legislative body of a city or county or the advisory
agency would be required to have the project applicant enter into an
agreement with the water utility to implement and monitor the actual
water savings over time, as specified. The public water system would
be required to prepare a written report of the projected water demand
versus the actual water use 5 years after the project has been fully
developed, and to provide copies of the report to the project
applicant, the city or county that approved the subdivision map, the
California Urban Water Conservation Council, and the Department of
Water Resources. The bill would also require, at the time of final
inspection, that a manual providing directions to the owner or
occupant on the proper use of water conservation devices and systems
be placed in the dwelling. By adding to the duties of the public
water system, this bill would impose a state-mandated local program.
   (2) Existing law requires a city or county that determines a
project, as defined, is subject to the California Environmental
Quality Act to identify any public water system that may supply water
for the project and to request those public water systems to prepare
a specified water supply assessment. If no public water system is
identified, the city or county is required to prepare the water
supply assessment.
   This bill would require, until January 1, 2020, if the project
applicant elects to include voluntary demand management measures, any
city, county, or public water system preparing a water supply
assessment to reduce the projected water demand for the project to an
amount below the current statutory, regulatory, and local-ordinance
requirements based on the project applicant's voluntary water demand
management measures, as defined. The bill would authorize the
applicant to enter into an agreement with the public water system to
mitigate water demand associated with a proposed subdivision by
depositing funds in a Voluntary Water Demand Mitigation Fund, as
defined. The fees paid into the Voluntary Water Demand Mitigation
Fund would be prohibited from exceeding the amount necessary to
offset the actual or percentage of actual water demand impacts
determined according to the agreement between the applicant and the
public water system. The fees would be prohibited from exceeding the
amount of all capacity charges and other water service fees
applicable to the subdivision, and those capacity charges and other
water service fees would be required to be reduced to the extent that
contributions are made to the Voluntary Water Demand Mitigation
Fund. The public water system would be required to expend all funds
from the Voluntary Water Demand Mitigation Fund on water conservation
measures that will reduce the projected demand associated with the
subdivision, and would be prohibited from using any funds from the
Water Conservation Mitigation Fund to supplant funding for water
conservation programs required by existing law or paid for by
existing customers through water rates and surcharges. The bill would
require the public water system to choose water conservation
measures that are the least expensive and most cost effective means
to yield water. The bill would authorize expenditures from the fund
to be made within the subdivision or elsewhere within the service
area of the public water supplier, at its discretion. Water savings
projections would be authorized to be calculated using the water
savings projections adopted by the California Urban Water
Conservation Council. Water savings projections for measures for
which the California Urban Water Conservation Council does not have
adopted findings would be required to be based on substantial
evidence in the record and included in the water supply assessment
adopted by the water supplier. If a project applicant proposes to use
a new voluntary water reduction demand management measure that is
not based on water savings projections adopted by the California
Urban Water Conservation Council, the legislative body of a city or
county or the advisory agency would be required to have the project
applicant enter into an agreement with the water utility to implement
and monitor the actual water savings over time, as specified. The
public water system would be required to prepare a written report of
the projected water demand versus the actual water use 5 years after
the project has been fully developed. By adding to the duties of the
public water system, this bill would impose a state-mandated local
program.
   (3) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  The Legislature finds and declares:
   (a) Current law requires an assessment of how new land use
proposals will affect water supply without recognizing the potential
benefits of evolving voluntary water conservation measures.
   (b) Water conservation measures beyond those already required by
state law should be encouraged by accounting for their use when
quantifying project water demand.
   (c) The amount of water demand reductions should be confirmed by
the water agencies responsible for providing water service to new
development in a cooperative approach with project proponents and
local governments that ensures projected water savings are achieved.
   (d) Water agencies and local government should provide flexibility
and encourage the development and implementation of innovative new
water conservation technology, water use efficiency, and water
management techniques to meet customer needs throughout the differing
hydrologic regions of the state.
   (e) Encouraging widespread use of voluntary water conservation
measures will assist water agencies and the state in documenting the
potential water savings from new water use efficiency projects and
programs in a manner that will promote successful water conservation
strategies and discourage ineffective ones.
   (f) There have been numerous water use efficiency technological
and management developments related to landscape irrigation in recent
years, and this act will promote the adoption of approaches that go
beyond the state's Model Landscape Ordinance.
   (g) More efficient use of water statewide also will reduce the
energy necessary to pump, transport, and treat water with potentially
significant corresponding reductions in greenhouse gas emissions.
  SEC. 2.  Section 66473.7 of the Government Code is amended to read:

   66473.7.  (a) For the purposes of this section, the following
definitions apply:
   (1) "Subdivision" means a proposed residential development of more
than 500 dwelling units, except that for a public water system that
has fewer than 5,000 service connections, "subdivision" means any
proposed residential development that would account for an increase
of 10 percent or more in the number of the public water system's
existing service connections.
   (2) "Sufficient water supply" means the total water supplies
available during normal, single-dry, and multiple-dry years within a
20-year projection that will meet the projected demand associated
with the proposed subdivision, in addition to existing and planned
future uses, including, but not limited to, agricultural and
industrial uses. In determining "sufficient water supply," all of the
following factors shall be considered:
   (A) The availability of water supplies over a historical record of
at least 20 years.
   (B) The applicability of an urban water shortage contingency
analysis prepared pursuant to Section 10632 of the Water Code that
includes actions to be undertaken by the public water system in
response to water supply shortages.
   (C) The reduction in water supply allocated to a specific water
use sector pursuant to a resolution or ordinance adopted, or a
contract entered into, by the public water system, as long as that
resolution, ordinance, or contract does not conflict with Section 354
of the Water Code.
   (D) The amount of water that the water supplier can reasonably
rely on receiving from other water supply projects, such as
conjunctive use, reclaimed water, water conservation, and water
transfer, including programs identified under federal, state, and
local water initiatives such as CALFED and Colorado River tentative
agreements, to the extent that these water supplies meet the criteria
of subdivision (d).
   (3) "Public water system" means the water supplier that is, or may
become as a result of servicing the subdivision included in a
tentative map pursuant to subdivision (b), a public water system, as
defined in Section 10912 of the Water Code, that may supply water for
a subdivision.
   (4) "Projected demand associated with the proposed subdivision"
means the anticipated water demand for the project, given current
statutory, regulatory, and local-ordinance requirements, reduced by
the amount of voluntary demand management measures.
   (5) "Voluntary demand management measures" means water use
efficiency measures that are permanently fixed to residential,
commercial, industrial, or other real property that will reduce the
subdivision's water demand below the applicable  statutory
and regulatory   statutory, regulatory, and
local-ordinance  requirements for water conservation, and may
include, but are not limited to, all of the following:
   (A) Smart irrigation controllers.
   (B) Waterless urinals.
   (C) Ultralow flow and dual flow toilets.
   (D) Recycled water facilities.
   (E) Rainwater capture and reuse facilities.
   (F) Any other measure that will prevent the waste of water or
promote the reasonable and efficient use and reuse of available water
supplies by the subdivision or the public.
   (G) Voluntary mitigation measures may include, at the applicant's
sole discretion, water demand mitigation measures which minimize a
percentage, as determined by the applicant, of a project's impact to
the public water system. The applicant may enter into an agreement
with the public water system to mitigate water demand associated with
a proposed subdivision by depositing funds into a Voluntary Water
Demand Mitigation Fund. The fees paid into the Voluntary Water Demand
Mitigation Fund shall not exceed an amount necessary to offset the
actual or percentage of actual water demand impacts agreed upon in
the agreement between the applicant and the public water system. The
fees may not exceed the amount of all capacity charges and other
water service fees applicable to the subdivision. All applicable
capacity charges and other water service fees shall be reduced to the
extent that contributions are made to the Voluntary Water Demand
Mitigation Fund. This section shall not be waived or modified by
contractual agreement, act, or omission of the parties. A tentative
map that includes a subdivision may not be disapproved due to the
applicant's refusal to use voluntary mitigation measures.
   (6) "Voluntary Water Demand Mitigation Fund" means the fund used
to finance water conservation and water supply augmentation measures
by the public water system that mitigate an agreed upon percentage of
the projected water demand impacts from the subdivision, at the
discretion of the applicant.
   (b) (1) The legislative body of a city or county or the advisory
agency, to the extent that it is authorized by local ordinance to
approve, conditionally approve, or disapprove the tentative map,
shall include as a condition in any tentative map that includes a
subdivision a requirement that a sufficient water supply shall be
available. Proof of the availability of a sufficient water supply
shall be requested by the subdivision applicant or local agency, at
the discretion of the local agency, and shall be based on written
verification from the applicable public water system within 90 days
of a request. The water savings projection attributable to voluntary
demand management measures shall be contained in the written
verification and  verified for accuracy   shall
be verified for accuracy and approved  by the public water
system, or, if there is no public water system, the local agency. The
public water agency may collect fees necessary to provide additional
analysis of voluntary demand management measures required by this
section, pursuant to Section 66014.
   (2) If the public water system fails to deliver the written
verification as required by this section, the local agency or any
other interested party may seek a writ of mandamus to compel the
public water system to comply.
   (3) If the written verification provided by the applicable public
water system indicates that the public water system is unable to
provide a sufficient water supply that will meet the projected demand
associated with the proposed subdivision, then the local agency may
make a finding, after consideration of the written verification by
the applicable public water system, that additional water supplies
not accounted for by the public water system are, or will be,
available prior to completion of the subdivision that will satisfy
the requirements of this section. This finding shall be made on the
record and supported by substantial evidence.
   (4) If the written verification is not provided by the public
water system, notwithstanding the local agency or other interested
party securing a writ of mandamus to compel compliance with this
section, then the local agency may make a finding that sufficient
water supplies are, or will be, available prior to completion of the
subdivision that will satisfy the requirements of this section. This
finding shall be made on the record and supported by substantial
evidence.
   (5) Water savings projections may be calculated using the water
savings projections adopted by the California Urban Water
Conservation Council. Water savings projections for measures for
which the California Urban Water Conservation Council does not have
adopted findings shall be based on substantial evidence in the record
and included in the water supply assessment adopted by the water
supplier. If a project applicant proposes to use a new voluntary
water reduction demand management measure that is not based on water
savings projections adopted by the California Urban Water
Conservation Council, the legislative body of a city or county or the
advisory agency shall require the project applicant to enter into an
agreement with the water utility to implement and monitor the actual
water savings over time through conditions of approval for the
project, which may include the adoption of legally enforceable
mechanisms, including, but not limited to, inclusion in covenants,
conditions, and restrictions. The public water system shall prepare a
written report of the projected water demand versus the actual water
use five years after the project has been fully developed. Copies of
the report shall be provided to the project applicant, the city or
county that approved the subdivision map, the California Urban Water
Conservation Council, and the Department of Water Resources.
Additionally, at the time of final inspection, a manual providing
directions to the owner or occupant on the proper use of water
conservation devices and systems shall be placed in the dwelling.
   (c) The applicable public water system's written verification of
its ability or inability to provide a sufficient water supply that
will meet the projected demand associated with the proposed
subdivision as required by subdivision (b) shall be supported by
substantial evidence. The substantial evidence may include, but is
not limited to, any of the following:
   (1) The public water system's most recently adopted urban water
management plan adopted pursuant to Part 2.6 (commencing with Section
10610) of Division 6 of the Water Code.
   (2) A water supply assessment that was completed pursuant to Part
2.10 (commencing with Section 10910) of Division 6 of the Water Code.

   (3) Other information relating to the sufficiency of the water
supply that contains analytical information that is substantially
similar to the assessment required by Section 10635 of the Water
Code.
   (d) When the written verification pursuant to subdivision (b)
relies on projected water supplies that are not currently available
to the public water system, to provide a sufficient water supply to
the subdivision, the written verification as to those projected water
supplies shall be based on all of the following elements, to the
extent each is applicable:
   (1) Written contracts or other proof of valid rights to the
identified water supply that identify the terms and conditions under
which the water will be available to serve the proposed subdivision.
   (2) Copies of a capital outlay program for financing the delivery
of a sufficient water supply that has been adopted by the applicable
governing body.
   (3) Securing of applicable federal, state, and local permits for
construction of necessary infrastructure associated with supplying a
sufficient water supply.
   (4) Any necessary regulatory approvals that are required in order
to be able to convey or deliver a sufficient water supply to the
subdivision.
   (e) If there is no public water system, the local agency shall
make a written finding of sufficient water supply based on the
evidentiary requirements of subdivisions (b), (c), and (d) and
identify the mechanism for providing water to the subdivision.
   (f) In making any findings or determinations under this section, a
local agency, or designated advisory agency, may work in conjunction
with the project applicant and the public water system to secure
water supplies sufficient to satisfy the demands of the proposed
subdivision. If the local agency secures water supplies pursuant to
this subdivision, which supplies are acceptable to and approved by
the governing body of the public water system as suitable for
delivery to customers, it shall work in conjunction with the public
water system to implement a plan to deliver that water supply to
satisfy the long-term demands of the proposed subdivision.
   (g) The written verification prepared under this section also
shall include a description, to the extent that data is reasonably
available based on published records maintained by federal and state
agencies, and public records of local agencies, of the reasonably
foreseeable impacts of the proposed subdivision on the availability
of water resources for agricultural and industrial uses within the
public water system's service area that are not currently receiving
water from the public water system but are utilizing the same sources
of water. To the extent that those reasonably foreseeable impacts
have previously been evaluated in a document prepared pursuant to the
California Environmental Quality Act (Division 13 (commencing with
Section 21000) of the Public Resources Code) or the National
Environmental Policy Act (P.L. 91-190) for the proposed subdivision,
the public water system may utilize that information in preparing the
written verification.
   (h) Where a water supply for a proposed subdivision includes
groundwater, the public water system serving the proposed subdivision
shall evaluate, based on substantial evidence, the extent to which
it or the landowner has the right to extract the additional
groundwater needed to supply the proposed subdivision. Nothing in
this subdivision is intended to modify state law with regard to
groundwater rights.
   (i) This section shall not apply to any residential project
proposed for a site that is within an urbanized area and has been
previously developed for urban uses, or where the immediate
contiguous properties surrounding the residential project site are,
or previously have been, developed for urban uses, or housing
projects that are exclusively for very low and low-income households.

   (j) The determinations made pursuant to this section shall be
consistent with the obligation of a public water system to grant a
priority for the provision of available and future water resources or
services to proposed housing developments that help meet the city's
or county's share of the regional housing needs for lower income
households, pursuant to Section 65589.7.
   (k) The County of San Diego shall be deemed to comply with this
section if the Office of Planning and Research determines that all of
the following conditions have been met:
   (1) A regional growth management strategy that provides for a
comprehensive regional strategy and a coordinated economic
development and growth management program has been developed pursuant
to Proposition C as approved by the voters of the County of San
Diego in November 1988, which required the development of a regional
growth management plan and directed the establishment of a regional
planning and growth management review board.
   (2) Each public water system, as defined in Section 10912 of the
Water Code, within the County of San Diego has adopted an urban water
management plan pursuant to Part 2.6 (commencing with Section 10610)
of the Water Code.
   (3) The approval or conditional approval of tentative maps for
subdivisions, as defined in this section, by the County of San Diego
and the cities within the county requires written communications to
be made by the public water system to the city or county, in a format
and with content that is substantially similar to the requirements
contained in this section, with regard to the availability of a
sufficient water supply, or the reliance on projected water supplies
to provide a sufficient water supply, for a proposed subdivision.
   () Nothing in this section shall preclude the legislative body of
a city or county, or the designated advisory agency, at the request
of the applicant, from making the determinations required in this
section earlier than required pursuant to subdivision (b).
   (m) Nothing in this section shall be construed to create a right
or entitlement to water service or any specific level of water
service.
   (n) Nothing in this section is intended to change existing law
concerning a public water system's obligation to provide water
service to its existing customers or to any potential future
customers.
   (o) Any action challenging the sufficiency of the public water
system's written verification of a sufficient water supply shall be
governed by Section 66499.37.
   (p) (1) For purposes of a Voluntary Water Demand Mitigation Fund
held by a public water system, the public water system shall be
required to expend all funds from the Voluntary Water Demand
Mitigation Fund on water conservation measures that will reduce the
projected demand associated with the subdivision. Water conservation
measures shall be chosen that are the least expensive, most
cost-effective means to yield water. The expenditure may be made
within the subdivision or elsewhere within the service area of the
public water supplier, at its discretion.
   (2) The public water system shall be prohibited from using funds
from the Water Conservation Mitigation Fund to supplant funding for
water conservation programs required by existing law or paid for by
existing customers through water rates and surcharges.
   (q) This section shall remain in effect only until January 1,
2020, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2020, deletes or extends
that date.
  SEC. 3.  Section 66473.7 is added to the Government Code, to read:
   66473.7.  (a) For the purposes of this section, the following
definitions apply:
   (1) "Subdivision" means a proposed residential development of more
than 500 dwelling units, except that for a public water system that
has fewer than 5,000 service connections, "subdivision" means any
proposed residential development that would account for an increase
of 10 percent or more in the number of the public water system's
existing service connections.
   (2) "Sufficient water supply" means the total water supplies
available during normal, single-dry, and multiple-dry years within a
20-year projection that will meet the projected demand associated
with the proposed subdivision, in addition to existing and planned
future uses, including, but not limited to, agricultural and
industrial uses. In determining "sufficient water supply," all of the
following factors shall be considered:
   (A) The availability of water supplies over a historical record of
at least 20 years.
   (B) The applicability of an urban water shortage contingency
analysis prepared pursuant to Section 10632 of the Water Code that
includes actions to be undertaken by the public water system in
response to water supply shortages.
   (C) The reduction in water supply allocated to a specific water
use sector pursuant to a resolution or ordinance adopted, or a
contract entered into, by the public water system, as long as that
resolution, ordinance, or contract does not conflict with Section 354
of the Water Code.
   (D) The amount of water that the water supplier can reasonably
rely on receiving from other water supply projects, such as
conjunctive use, reclaimed water, water conservation, and water
transfer, including programs identified under federal, state, and
local water initiatives such as CALFED and Colorado River tentative
agreements, to the extent that these water supplies meet the criteria
of subdivision (d).
   (3) "Public water system" means the water supplier that is, or may
become as a result of servicing the subdivision included in a
tentative map pursuant to subdivision (b), a public water system, as
defined in Section 10912 of the Water Code, that may supply water for
a subdivision.
   (b) (1) The legislative body of a city or county or the advisory
agency, to the extent that it is authorized by local ordinance to
approve, conditionally approve, or disapprove the tentative map,
shall include as a condition in any tentative map that includes a
subdivision a requirement that a sufficient water supply shall be
available. Proof of the availability of a sufficient water supply
shall be requested by the subdivision applicant or local agency, at
the discretion of the local agency, and shall be based on written
verification from the applicable public water system within 90 days
of a request.
   (2) If the public water system fails to deliver the written
verification as required by this section, the local agency or any
other interested party may seek a writ of mandamus to compel the
public water system to comply.
   (3) If the written verification provided by the applicable public
water system indicates that the public water system is unable to
provide a sufficient water supply that will meet the projected demand
associated with the proposed subdivision, then the local agency may
make a finding, after consideration of the written verification by
the applicable public water system, that additional water supplies
not accounted for by the public water system are, or will be,
available prior to completion of the subdivision that will satisfy
the requirements of this section. This finding shall be made on the
record and supported by substantial evidence.
   (4) If the written verification is not provided by the public
water system, notwithstanding the local agency or other interested
party securing a writ of mandamus to compel compliance with this
section, then the local agency may make a finding that sufficient
water supplies are, or will be, available prior to completion of the
subdivision that will satisfy the requirements of this section. This
finding shall be made on the record and supported by substantial
evidence.
   (c) The applicable public water system's written verification of
its ability or inability to provide a sufficient water supply that
will meet the projected demand associated with the proposed
subdivision as required by subdivision (b) shall be supported by
substantial evidence. The substantial evidence may include, but is
not limited to, any of the following:
   (1) The public water system's most recently adopted urban water
management plan adopted pursuant to Part 2.6 (commencing with Section
10610) of Division 6 of the Water Code.
   (2) A water supply assessment that was completed pursuant to Part
2.10 (commencing with Section 10910) of Division 6 of the Water Code.

   (3) Other information relating to the sufficiency of the water
supply that contains analytical information that is substantially
similar to the assessment required by Section 10635 of the Water
Code.
   (d) When the written verification pursuant to subdivision (b)
relies on projected water supplies that are not currently available
to the public water system, to provide a sufficient water supply to
the subdivision, the written verification as to those projected water
supplies shall be based on all of the following elements, to the
extent each is applicable:
   (1) Written contracts or other proof of valid rights to the
identified water supply that identify the terms and conditions under
which the water will be available to serve the proposed subdivision.
   (2) Copies of a capital outlay program for financing the delivery
of a sufficient water supply that has been adopted by the applicable
governing body.
   (3) Securing of applicable federal, state, and local permits for
construction of necessary infrastructure associated with supplying a
sufficient water supply.
   (4) Any necessary regulatory approvals that are required in order
to be able to convey or deliver a sufficient water supply to the
subdivision.
   (e) If there is no public water system, the local agency shall
make a written finding of sufficient water supply based on the
evidentiary requirements of subdivisions (c) and (d) and identify the
mechanism for providing water to the subdivision.
   (f) In making any findings or determinations under this section, a
local agency, or designated advisory agency, may work in conjunction
with the project applicant and the public water system to secure
water supplies sufficient to satisfy the demands of the proposed
subdivision. If the local agency secures water supplies pursuant to
this subdivision, which supplies are acceptable to and approved by
the governing body of the public water system as suitable for
delivery to customers, it shall work in conjunction with the public
water system to implement a plan to deliver that water supply to
satisfy the long-term demands of the proposed subdivision.
   (g) The written verification prepared under this section also
shall include a description, to the extent that data is reasonably
available based on published records maintained by federal and state
agencies, and public records of local agencies, of the reasonably
foreseeable impacts of the proposed subdivision on the availability
of water resources for agricultural and industrial uses within the
public water system's service area that are not currently receiving
water from the public water system but are utilizing the same sources
of water. To the extent that those reasonably foreseeable impacts
have previously been evaluated in a document prepared pursuant to the
California Environmental Quality Act (Division 13 (commencing with
Section 21000) of the Public Resources Code) or the National
Environmental Policy Act (P.L. 91-190) for the proposed subdivision,
the public water system may utilize that information in preparing the
written verification.
   (h) Where a water supply for a proposed subdivision includes
groundwater, the public water system serving the proposed subdivision
shall evaluate, based on substantial evidence,
                       the extent to which it or the landowner has
the right to extract the additional groundwater needed to supply the
proposed subdivision. Nothing in this subdivision is intended to
modify state law with regard to groundwater rights.
   (i) This section shall not apply to any residential project
proposed for a site that is within an urbanized area and has been
previously developed for urban uses, or where the immediate
contiguous properties surrounding the residential project site are,
or previously have been, developed for urban uses, or housing
projects that are exclusively for very low and low-income households.

   (j) The determinations made pursuant to this section shall be
consistent with the obligation of a public water system to grant a
priority for the provision of available and future water resources or
services to proposed housing developments that help meet the city's
or county's share of the regional housing needs for lower income
households, pursuant to Section 65589.7.
   (k) The County of San Diego shall be deemed to comply with this
section if the Office of Planning and Research determines that all of
the following conditions have been met:
   (1) A regional growth management strategy that provides for a
comprehensive regional strategy and a coordinated economic
development and growth management program has been developed pursuant
to Proposition C as approved by the voters of the County of San
Diego in November 1988, which required the development of a regional
growth management plan and directed the establishment of a regional
planning and growth management review board.
   (2) Each public water system, as defined in Section 10912 of the
Water Code, within the County of San Diego has adopted an urban water
management plan pursuant to Part 2.6 (commencing with Section 10610)
of the Water Code.
   (3) The approval or conditional approval of tentative maps for
subdivisions, as defined in this section, by the County of San Diego
and the cities within the county requires written communications to
be made by the public water system to the city or county, in a format
and with content that is substantially similar to the requirements
contained in this section, with regard to the availability of a
sufficient water supply, or the reliance on projected water supplies
to provide a sufficient water supply, for a proposed subdivision.
   () Nothing in this section shall preclude the legislative body of
a city or county, or the designated advisory agency, at the request
of the applicant, from making the determinations required in this
section earlier than required pursuant to subdivision (b).
   (m) Nothing in this section shall be construed to create a right
or entitlement to water service or any specific level of water
service.
   (n) Nothing in this section is intended to change existing law
concerning a public water system's obligation to provide water
service to its existing customers or to any potential future
customers.
   (o) Any action challenging the sufficiency of the public water
system's written verification of a sufficient water supply shall be
governed by Section 66499.37.
   (p) This section shall become operative on January 1, 2020.
  SEC. 4.  Section 10910 of the Water Code is amended to read:
   10910.  (a) Any city or county that determines that a project, as
defined in Section 10912, is subject to the California Environmental
Quality Act (Division 13 (commencing with Section 21000) of the
Public Resources Code) under Section 21080 of the Public Resources
Code shall comply with this part.
   (b) The city or county, at the time that it determines whether an
environmental impact report, a negative declaration, or a mitigated
negative declaration is required for any project subject to the
California Environmental Quality Act pursuant to Section 21080.1 of
the Public Resources Code, shall identify any water system that is,
or may become as a result of supplying water to the project
identified pursuant to this subdivision, a public water system, as
defined in Section 10912, that may supply water for the project. If
the city or county is not able to identify any public water system
that may supply water for the project, the city or county shall
prepare the water assessment required by this part after consulting
with any entity serving domestic water supplies whose service area
includes the project site, the local agency formation commission, and
any public water system adjacent to the project site.
   (c) (1) The city or county, at the time it makes the determination
required under Section 21080.1 of the Public Resources Code, shall
request each public water system identified pursuant to subdivision
(b) to determine whether the projected water demand associated with a
proposed project was included as part of the most recently adopted
urban water management plan adopted pursuant to Part 2.6 (commencing
with Section 10610).
   (2) If the projected water demand associated with the proposed
project was accounted for in the most recently adopted urban water
management plan, the public water system may incorporate the
requested information from the urban water management plan in
preparing the elements of the assessment required to comply with
subdivisions (d), (e), (f), and (g).
   (3) If the projected water demand associated with the proposed
project was not accounted for in the most recently adopted urban
water management plan, or the public water system has no urban water
management plan, the water supply assessment for the project shall
include a discussion with regard to whether the public water system's
total projected water supplies available during normal, single dry,
and multiple dry water years during a 20-year projection will meet
the projected water demand associated with the proposed project, in
addition to the public water system's existing and planned future
uses, including agricultural and manufacturing uses.
   (4) If the city or county is required to comply with this part
pursuant to subdivision (b), the water supply assessment for the
project shall include a discussion with regard to whether the total
projected water supplies, determined to be available by the city or
county for the project during normal, single dry, and multiple dry
water years during a 20-year projection, will meet the projected
water demand associated with the proposed project, in addition to
existing and planned future uses, including agricultural and
manufacturing uses.
   (5) If an applicant elects to include voluntary demand management
measures, the projected water demand shall be reduced for the project
to an amount below the current statutory, regulatory, and
local-ordinance requirements, based on the project applicant's
voluntary water demand management measures. The public water system,
or, if there is no public water system, the local agency, shall
quantify the reduction of anticipated water demand attributable to
the voluntary demand management measures. For purposes of this
section, "voluntary water demand management measures" means water use
efficiency measures that exceed current  statutory and
regulatory   statutory, regulatory, and local-ordinance
 requirements, and that are permanently fixed to residential,
commercial, industrial, or other real property that will reduce
projected water demand, and may include, but are not limited to, all
of the following:
   (A) Smart irrigation controllers.
   (B) Waterless urinals.
   (C) Ultralow flow and dual flow toilets.
   (D) Recycled water facilities.
   (E) Rainwater capture and reuse facilities.
   (F) Any other measure that will prevent the waste of water or
promote the reasonable and efficient use and reuse of available water
supplies by the subdivision or the public.
   (G) Voluntary mitigation measures may include, at the applicant's
sole discretion, water demand mitigation measures that reduce a
project's impact to the public water system, as determined by the
applicant. The applicant may enter into an agreement with the public
water system to mitigate water demand associated with a proposed
subdivision by depositing funds into a Voluntary Water Demand
Mitigation Fund. The fees paid into the Voluntary Water Demand
Mitigation Fund shall not exceed an amount necessary to offset the
actual or percentage of actual water demand impacts agreed upon in
the agreement between the applicant and the public water system. The
fees may not exceed the amount of all capacity charges and other
water service fees applicable to the subdivision. All applicable
capacity charges and other water service fees shall not be waived or
modified by contractual agreement, act, or omission of the parties. A
project may not be disapproved due to the applicant's refusal to use
voluntary mitigation measures.
   (6) "Voluntary Water Demand Mitigation Fund" means the fund used
to finance water conservation and water supply augmentation measures
by the public water system that mitigate an agreed upon percentage of
the projected water demand impacts from the subdivision, at the
discretion of the applicant.
   (7) Water savings projections may be calculated using the water
savings projections adopted by the California Urban Water
Conservation Council. Water savings projections for measures for
which the California Urban Water Conservation Council does not have
adopted findings shall be based on substantial evidence in the record
and included in the water supply assessment adopted by the water
supplier. If a project applicant proposes to use a new voluntary
water reduction demand management measure that is not based on water
savings projections adopted by the California Urban Water
Conservation Council, the legislative body of a city or county or the
advisory agency shall require the project applicant to enter into an
agreement with the water utility to implement and monitor the actual
water savings over time through conditions of approval for the
project, which may include the adoption of legally enforceable
mechanisms including, bu not limited to, inclusion in covenants,
conditions, and restrictions. The public water system shall prepare a
written report of the projected water demand versus the actual water
use five years after the project has been fully developed. Copies of
the report shall be provided to the project applicant, the city or
county that approved the subdivision map, the California Urban Water
Conservation Council, and the Department of Water Resources.
Additionally, at the time of final inspection, a manual providing
directions to the owner or occupant on the proper use of water
conservation devices and systems shall be placed in the dwelling.
   (d) (1) The assessment required by this section shall include an
identification of any existing water supply entitlements, water
rights, or water service contracts relevant to the identified water
supply for the proposed project, and a description of the quantities
of water received in prior years by the public water system, or the
city or county if either is required to comply with this part
pursuant to subdivision (b), under the existing water supply
entitlements, water rights, or water service contracts.
   (2) An identification of existing water supply entitlements, water
rights, or water service contracts held by the public water system,
or the city or county if either is required to comply with this part
pursuant to subdivision (b), shall be demonstrated by providing
information related to all of the following:
   (A) Written contracts or other proof of entitlement to an
identified water supply.
   (B) Copies of a capital outlay program for financing the delivery
of a water supply that has been adopted by the public water system.
   (C) Federal, state, and local permits for construction of
necessary infrastructure associated with delivering the water supply.

   (D) Any necessary regulatory approvals that are required in order
to be able to convey or deliver the water supply.
   (e) If no water has been received in prior years by the public
water system, or the city or county if either is required to comply
with this part pursuant to subdivision (b), under the existing water
supply entitlements, water rights, or water service contracts, the
public water system, or the city or county if either is required to
comply with this part pursuant to subdivision (b), shall also include
in its water supply assessment pursuant to subdivision (c), an
identification of the other public water systems or water service
contractholders that receive a water supply or have existing water
supply entitlements, water rights, or water service contracts, to the
same source of water as the public water system, or the city or
county if either is required to comply with this part pursuant to
subdivision (b), has identified as a source of water supply within
its water supply assessments.
   (f) If a water supply for a proposed project includes groundwater,
the following additional information shall be included in the water
supply assessment:
   (1) A review of any information contained in the urban water
management plan relevant to the identified water supply for the
proposed project.
   (2) A description of any groundwater basin or basins from which
the proposed project will be supplied. For those basins for which a
court or the board has adjudicated the rights to pump groundwater, a
copy of the order or decree adopted by the court or the board and a
description of the amount of groundwater the public water system, or
the city or county if either is required to comply with this part
pursuant to subdivision (b), has the legal right to pump under the
order or decree. For basins that have not been adjudicated,
information as to whether the department has identified the basin or
basins as overdrafted or has projected that the basin will become
overdrafted if present management conditions continue, in the most
current bulletin of the department that characterizes the condition
of the groundwater basin, and a detailed description by the public
water system, or the city or county if either is required to comply
with this part pursuant to subdivision (b), of the efforts being
undertaken in the basin or basins to eliminate the long-term
overdraft condition.
   (3) A detailed description and analysis of the amount and location
of groundwater pumped by the public water system, or the city or
county if either is required to comply with this part pursuant to
subdivision (b), for the past five years from any groundwater basin
from which the proposed project will be supplied. The description and
analysis shall be based on information that is reasonably available,
including, but not limited to, historic use records.
   (4) A detailed description and analysis of the amount and location
of groundwater that is projected to be pumped by the public water
system, or the city or county if either is required to comply with
this part pursuant to subdivision (b), from any basin from which the
proposed project will be supplied. The description and analysis shall
be based on information that is reasonably available, including, but
not limited to, historic use records.
   (5) An analysis of the sufficiency of the groundwater from the
basin or basins from which the proposed project will be supplied to
meet the projected water demand associated with the proposed project.
A water supply assessment shall not be required to include the
information required by this paragraph if the public water system
determines, as part of the review required by paragraph (1), that the
sufficiency of groundwater necessary to meet the initial and
projected water demand associated with the project was addressed in
the description and analysis required by paragraph (4) of subdivision
(b) of Section 10631.
   (g) (1) Subject to paragraph (2), the governing body of each
public water system shall submit the assessment to the city or county
not later than 90 days from the date on which the request was
received. The governing body of each public water system, or the city
or county if either is required to comply with this act pursuant to
subdivision (b), shall approve the assessment prepared pursuant to
this section at a regular or special meeting.
   (2) Prior to the expiration of the 90-day period, if the public
water system intends to request an extension of time to prepare and
adopt the assessment, the public water system shall meet with the
city or county to request an extension of time, which shall not
exceed 30 days, to prepare and adopt the assessment.
   (3) If the public water system fails to request an extension of
time, or fails to submit the assessment notwithstanding the extension
of time granted pursuant to paragraph (2), the city or county may
seek a writ of mandamus to compel the governing body of the public
water system to comply with the requirements of this part relating to
the submission of the water supply assessment.
   (h) Notwithstanding any other provision of this part, if a project
has been the subject of a water supply assessment that complies with
the requirements of this part, no additional water supply assessment
shall be required for subsequent projects that were part of a larger
project for which a water supply assessment was completed and that
has complied with the requirements of this part and for which the
public water system, or the city or county if either is required to
comply with this part pursuant to subdivision (b), has concluded that
its water supplies are sufficient to meet the projected water demand
associated with the proposed project, in addition to the existing
and planned future uses, including, but not limited to, agricultural
and industrial uses, unless one or more of the following changes
occurs:
   (1) Changes in the project that result in a substantial increase
in water demand for the project.
   (2) Changes in the circumstances or conditions substantially
affecting the ability of the public water system, or the city or
county if either is required to comply with this part pursuant to
subdivision (b), to provide a sufficient supply of water for the
project.
   (3) Significant new information becomes available which was not
known and could not have been known at the time when the assessment
was prepared.
   (i) (1) For purposes of a Voluntary Water Demand Mitigation Fund
held by a public water system, the public water system shall be
required to expend all funds from the Voluntary Water Demand
Mitigation Fund on water conservation measures that will reduce the
projected demand associated with the subdivision. Water conservation
measures shall be chosen that are the least expensive, most cost
effective means to yield water. The expenditures may be made within
the subdivision or elsewhere within the service area of the public
water supplier at its discretion.
   (2) The public water system shall be prohibited from using funds
from the Water Conservation Mitigation Fund to supplant funding for
water conservation programs required by existing law or paid for by
existing customers through water rates and surcharges.
   (j) This section shall remain in effect only until January 1,
2020, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2020, deletes or extends
that date.
  SEC. 5.  Section 10910 is added to the Water Code, to read:
   10910.  (a) Any city or county that determines that a project, as
defined in Section 10912, is subject to the California Environmental
Quality Act (Division 13 (commencing with Section 21000) of the
Public Resources Code) under Section 21080 of the Public Resources
Code shall comply with this part.
   (b) The city or county, at the time that it determines whether an
environmental impact report, a negative declaration, or a mitigated
negative declaration is required for any project subject to the
California Environmental Quality Act pursuant to Section 21080.1 of
the Public Resources Code, shall identify any water system that is,
or may become as a result of supplying water to the project
identified pursuant to this subdivision, a public water system, as
defined in Section 10912, that may supply water for the project. If
the city or county is not able to identify any public water system
that may supply water for the project, the city or county shall
prepare the water assessment required by this part after consulting
with any entity serving domestic water supplies whose service area
includes the project site, the local agency formation commission, and
any public water system adjacent to the project site.
   (c) (1) The city or county, at the time it makes the determination
required under Section 21080.1 of the Public Resources Code, shall
request each public water system identified pursuant to subdivision
(b) to determine whether the projected water demand associated with a
proposed project was included as part of the most recently adopted
urban water management plan adopted pursuant to Part 2.6 (commencing
with Section 10610).
   (2) If the projected water demand associated with the proposed
project was accounted for in the most recently adopted urban water
management plan, the public water system may incorporate the
requested information from the urban water management plan in
preparing the elements of the assessment required to comply with
subdivisions (d), (e), (f), and (g).
   (3) If the projected water demand associated with the proposed
project was not accounted for in the most recently adopted urban
water management plan, or the public water system has no urban water
management plan, the water supply assessment for the project shall
include a discussion with regard to whether the public water system's
total projected water supplies available during normal, single dry,
and multiple dry water years during a 20-year projection will meet
the projected water demand associated with the proposed project, in
addition to the public water system's existing and planned future
uses, including agricultural and manufacturing uses.
   (4) If the city or county is required to comply with this part
pursuant to subdivision (b), the water supply assessment for the
project shall include a discussion with regard to whether the total
projected water supplies, determined to be available by the city or
county for the project during normal, single dry, and multiple dry
water years during a 20-year projection, will meet the projected
water demand associated with the proposed project, in addition to
existing and planned future uses, including agricultural and
manufacturing uses.
   (d) (1) The assessment required by this section shall include an
identification of any existing water supply entitlements, water
rights, or water service contracts relevant to the identified water
supply for the proposed project, and a description of the quantities
of water received in prior years by the public water system, or the
city or county if either is required to comply with this part
pursuant to subdivision (b), under the existing water supply
entitlements, water rights, or water service contracts.
   (2) An identification of existing water supply entitlements, water
rights, or water service contracts held by the public water system,
or the city or county if either is required to comply with this part
pursuant to subdivision (b), shall be demonstrated by providing
information related to all of the following:
   (A) Written contracts or other proof of entitlement to an
identified water supply.
   (B) Copies of a capital outlay program for financing the delivery
of a water supply that has been adopted by the public water system.
   (C) Federal, state, and local permits for construction of
necessary infrastructure associated with delivering the water supply.

   (D) Any necessary regulatory approvals that are required in order
to be able to convey or deliver the water supply.
   (e) If no water has been received in prior years by the public
water system, or the city or county if either is required to comply
with this part pursuant to subdivision (b), under the existing water
supply entitlements, water rights, or water service contracts, the
public water system, or the city or county if either is required to
comply with this part pursuant to subdivision (b), shall also include
in its water supply assessment pursuant to subdivision (c), an
identification of the other public water systems or water service
contractholders that receive a water supply or have existing water
supply entitlements, water rights, or water service contracts, to the
same source of water as the public water system, or the city or
county if either is required to comply with this part pursuant to
subdivision (b), has identified as a source of water supply within
its water supply assessments.
   (f) If a water supply for a proposed project includes groundwater,
the following additional information shall be included in the water
supply assessment:
   (1) A review of any information contained in the urban water
management plan relevant to the identified water supply for the
proposed project.
   (2) A description of any groundwater basin or basins from which
the proposed project will be supplied. For those basins for which a
court or the board has adjudicated the rights to pump groundwater, a
copy of the order or decree adopted by the court or the board and a
description of the amount of groundwater the public water system, or
the city or county if either is required to comply with this part
pursuant to subdivision (b), has the legal right to pump under the
order or decree. For basins that have not been adjudicated,
information as to whether the department has identified the basin or
basins as overdrafted or has projected that the basin will become
overdrafted if present management conditions continue, in the most
current bulletin of the department that characterizes the condition
of the groundwater basin, and a detailed description by the public
water system, or the city or county if either is required to comply
with this part pursuant to subdivision (b), of the efforts being
undertaken in the basin or basins to eliminate the long-term
overdraft condition.
   (3) A detailed description and analysis of the amount and location
of groundwater pumped by the public water system, or the city or
county if either is required to comply with this part pursuant to
subdivision (b), for the past five years from any groundwater basin
from which the proposed project will be supplied. The description and
analysis shall be based on information that is reasonably available,
including, but not limited to, historic use records.
   (4) A detailed description and analysis of the amount and location
of groundwater that is projected to be pumped by the public water
system, or the city or county if either is required to comply with
this part pursuant to subdivision
         (b), from any basin from which the proposed project will be
supplied. The description and analysis shall be based on information
that is reasonably available, including, but not limited to, historic
use records.
   (5) An analysis of the sufficiency of the groundwater from the
basin or basins from which the proposed project will be supplied to
meet the projected water demand associated with the proposed project.
A water supply assessment shall not be required to include the
information required by this paragraph if the public water system
determines, as part of the review required by paragraph (1), that the
sufficiency of groundwater necessary to meet the initial and
projected water demand associated with the project was addressed in
the description and analysis required by paragraph (4) of subdivision
(b) of Section 10631.
   (g) (1) Subject to paragraph (2), the governing body of each
public water system shall submit the assessment to the city or county
not later than 90 days from the date on which the request was
received. The governing body of each public water system, or the city
or county if either is required to comply with this act pursuant to
subdivision (b), shall approve the assessment prepared pursuant to
this section at a regular or special meeting.
   (2) Prior to the expiration of the 90-day period, if the public
water system intends to request an extension of time to prepare and
adopt the assessment, the public water system shall meet with the
city or county to request an extension of time, which shall not
exceed 30 days, to prepare and adopt the assessment.
   (3) If the public water system fails to request an extension of
time, or fails to submit the assessment notwithstanding the extension
of time granted pursuant to paragraph (2), the city or county may
seek a writ of mandamus to compel the governing body of the public
water system to comply with the requirements of this part relating to
the submission of the water supply assessment.
   (h) Notwithstanding any other provision of this part, if a project
has been the subject of a water supply assessment that complies with
the requirements of this part, no additional water supply assessment
shall be required for subsequent projects that were part of a larger
project for which a water supply assessment was completed and that
has complied with the requirements of this part and for which the
public water system, or the city or county if either is required to
comply with this part pursuant to subdivision (b), has concluded that
its water supplies are sufficient to meet the projected water demand
associated with the proposed project, in addition to the existing
and planned future uses, including, but not limited to, agricultural
and industrial uses, unless one or more of the following changes
occurs:
   (1) Changes in the project that result in a substantial increase
in water demand for the project.
   (2) Changes in the circumstances or conditions substantially
affecting the ability of the public water system, or the city or
county if either is required to comply with this part pursuant to
subdivision (b), to provide a sufficient supply of water for the
project.
   (3) Significant new information becomes available which was not
known and could not have been known at the time when the assessment
was prepared.
   (i) This section shall become operative on January 1, 2020.
  SEC. 6.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.