BILL NUMBER: AB 300	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 30, 2009
	AMENDED IN SENATE  JUNE 23, 2009
	AMENDED IN SENATE  JUNE 10, 2009
	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, 2017, the public water
system, or the local agency if there is no public water system, to
review, 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   system  would be authorized to collect
fees necessary to provide the additional analysis of the voluntary
demand management measures. This bill would provide that a water
supply assessment completed, as specified, satisfies the existing
requirement of verifying sufficient water supply,  except as
specified with regard to new information or water savings projections
  unless the public water system receives specified new
information  . The public water system would be required to
determine the projected water savings  for  
attributable to  the voluntary demand management measures that
will be incorporated into the subdivision. The projected water
savings would be  authorized   required  to
be calculated using specified data compiled or maintained by the
public water system or the water savings projections adopted by the
California Urban Water Conservation Council. 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   for which neither  the
California Urban Water Conservation Council  or 
 nor  the public water system  , the public water
system's determination of   has adopted   an
estimate or method to calculate the projected water savings of the
proposed voluntary demand management measure,  the projected
water savings would be required to be made based on documented
methodologies or calculations submitted in the record.  The
  Five years after the project has been fully developed,
the  public water system would be required to  include
within its next urban water management plan a  report on the
monitoring and compliance of voluntary water demand management
measures and to determine  , if practicable based on readily
available information,  whether they have resulted in the water
savings necessary to achieve the agreed upon water demand offsets.
 The bill would require copies of the first report prepared 5
years after the project has been fully developed to 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.  The bill would also
require the public water system to document the measured annual water
use of the subdivision in comparison to the projected demand
associated with the subdivision, and to calculate the water savings
attributable to the  demand management  
voluntary mitigation  measures financed by the Voluntary Water
Demand Mitigation Fund for the subdivision.  If the public water
system bases its written verification of a sufficient water supply
for the subdivision, in whole or in part, on the use of voluntary
demand management measures within the subdivision, the written
verification would be required to be conditioned on the maintenance
and operation of the voluntary demand management measures, or
measures that are at least as water efficient, as agreed to by the
applicant and the public water system, and the recordation as a
covenant running with the land for the lots within the subdivision.
The bill would provide that by acceptance of a deed to a lot, each
purchaser would acknowledge   the obligation to comply with
the voluntary demand measures for the lot as described in the
covenant. These covenants would be authorized to be enforced pursuant
to the existing authority of a public water system.  The bill
would further require a builder, prior to the close of escrow, to
give a purchaser  a manual of documents  
information  that would be required to be included in a
maintenance manual that informs the purchaser of the existence of the
home's unique water saving devices, including specified information.
The bill would also encourage the public water system to commit to
carrying out the water conservation measures funded by the Voluntary
Water Demand Mitigation Fund within 24 months of the sale of the last
unit of the proposed subdivision.  The bill would provide
that the sole remedy for the failure of a public water system to
implement the water conservation measures would be for an interested
party to seek a writ of mandamus to compel the public water system to
comply.  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 
savings  . 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.  Not less
than 40% of the proceeds from the voluntary water demand mitigation
fund would be required to be directed to water conservation programs
in any disadvantaged community, unless the public water system makes
a specified finding.  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, 2017, 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  planned water demand reduction actions contained
in an adopted urban water management plan and  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 a mutual 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 agreed upon in the
agreement between the applicant and the public water system. The bill
would authorize, at the discretion of the public water system, the
amount required for the Voluntary Water Demand Mitigation Fund to be
reduced by a portion of the normally required system capacity charges
that finance future water supplies. The bill would also authorize
any reduction in the capacity charge to be calculated using the
amount of water projected to be conserved using the Voluntary Water
Demand Mitigation Fund at the cost determined by the public water
system for developing new water supplies  through 
 or for  water conservation. The bill would not require the
total reduction in system capacity charges to be equal to the amount
paid into the Voluntary Water Demand Mitigation Fund.  The
bill would prohibit a project from being disapproved due to the
applicant's refusal to use voluntary mitigation measures. 
The bill would require the public water system to determine the
projected water savings  for   attributable to
 the voluntary demand management measures that will be
incorporated into the  subdivision   project
 . 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. The public water system would be
prohibited from using any funds from the Voluntary Water Conservation
Mitigation Fund to supplant funding for water conservation programs
required by  planned water reduction actions contained in an
adopted urban water management plan,  existing law  , 
or paid for by existing customers through water rates and surcharges.
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  
voluntary demand   management measures  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  
in order to ensure that  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   exceed those required by  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 
planned water demand reduction actions contained in an adopted urban
water management plan and  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  voluntarily chosen by the applicant 
that are permanently fixed to residential, commercial, industrial, or
other real property that will reduce the subdivision's water demand
below the applicable 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. For the purposes of this
chapter, water recycling shall be eligible as a water conservation
measure.
   (G) Voluntary mitigation measures may include, at the applicant's
sole discretion, water conservation offsets which minimize a
percentage of a project's impact on the public water system, as
determined by the applicant and agreed upon by the public water
system. The applicant may enter into a mutual 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. At the discretion
of the public water system, the amount required for the Voluntary
Water Demand Mitigation Fund may be reduced by a portion of the
normally required system capacity charges that finance future water
supplies. Any reduction in the capacity charge may be calculated
using the amount of water projected to be conserved using the
Voluntary Water Demand Mitigation Fund at the cost determined by the
public water system for developing new water supplies 
through   or for  water conservation. Because the
cost varies for developing different sources of future water
supplies, including through water conservation, the total reduction
in system capacity charges may or may not be equal to the amount paid
into the Voluntary Water Demand Mitigation Fund.  A
tentative map that includes a subdivision may not be disapproved due
to the applicant's refusal to use voluntary mitigation measures.
  An applicant's refusal to use voluntary demand
management measures shall not result in any of the consequences set
forth   in paragraph (3) of subdivision (p). 
   (6) "Voluntary Water Demand Mitigation Fund" means the fund used
to finance verifiable and quantifiable water conservation or water
supply augmentation measures by the public water system that mitigate
or offset an agreed upon percentage of the projected water demand
impacts from the 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. The water savings projection attributable to voluntary
demand management measures shall be contained in the written
verification and 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   system
 may collect fees necessary to provide additional analysis of
voluntary demand management measures  required by this
section, pursuant   , if required by this section
pursuant  to Section 66014. A water supply assessment that is
completed pursuant to Part 2.10 (commencing with Section 10910) of
Division 6 of the Water Code satisfies the requirements of this
section, unless the public water  agency receives new
information or otherwise alters its water savings projections after
the assessment is completed.   system receives
significant new information that becomes available and that was not
known and could not be known at the time when the assessment was
prepared. 
   (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) The public water system shall make the determination of the
projected water savings  for the   attributable
to the voluntary demand management  measures that will be
incorporated into the subdivision.  The 
    (A)     The  projected water savings
 may be calculated using water   shall be
calculated using either of the following: 
    (i)     Water  efficiency program data
compiled or maintained by the public water system  . 
 or the water 
    (ii)     Water  savings projections
adopted by the California Urban Water Conservation  Council,
including estimates of normal performance decline of specific water
demand management measures. If   Council. 
    (B)     Notwithstanding subparagraph (A),
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   demand management
measure for which neither  the California Urban Water
Conservation  Council or the public water system, the public
water system's determination of the projected water  
Council nor the public water system has adopted an estimate or method
to calculate the projected water savings of the proposed voluntary
water demand management measure, the projected water  savings
shall be made based on documented methodologies or calculations
submitted in the  record. These methodologies  
record. 
    (i)     These methodologies or calculations
 may include, but are not limited to, water efficiency program
implementation data and projections calculated by the public water
 system or   system, the local agency,  the
applicant, or by the California Water Conservation  Council,
or data that demonstrates that water efficiencies are quantifiable
and verifiable when the determination is made. Pursuant to 
 Council.  
   (ii) These methodologies or calculations shall demonstrate that
the proposed voluntary water demand management measures result in
projected water savings that are quantifiable and verifiable. 

   (C) The projected water savings may also include all of the
following:  
   (i) Estimates of normal performance decline of specific water
demand management measures.  
   (ii) Adjustment factors or other estimates to reflect the
uncertain performance of new and emerging technologies. 
    (6)     Five   years after the
project has been fully developed, the public water system shall
include, in its next urban water management plan required by 
Part 2.6 (commencing with Section 10610) of Division 6 of the Water
Code,  the public water system shall   a 
report on the monitoring and compliance of voluntary water demand
management measures and determine  , if practicable based on
readily available information,  whether they have resulted in
the water savings necessary to achieve the agreed upon water demand
offsets.  The 
    (7)    If practicable based on readily
available information, the  public water system shall do both of
the following:
   (A) Document the measured annual water use of the subdivision in
comparison to the projected demand associated with the subdivision.
   (B) Calculate the water savings attributable to the 
demand management   voluntary mitigation  measures
financed by the Voluntary Water Demand Mitigation Fund for the
subdivision. 
   (6) Copies of the first report, prepared five years after the
project has been fully developed, 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.  
   (8) (A) If the public water system bases its written verification
of a sufficient water supply for the subdivision, in whole or in
part, on the use of voluntary demand management measures within the
subdivision, the written verification shall be conditioned on the
maintenance and operation of the voluntary demand management
measures, or measures that are at least as water efficient, as agreed
to by the applicant and the public water system, and the recordation
as a covenant running with the land, pursuant to Section 1468 of the
Civil Code, for the lots within the subdivision. The maintenance and
operation obligations shall be contained in the maintenance manual
referred to in paragraph (9). The recorded covenant shall include a
notice of the existence of the maintenance manual and the obligation
of the purchaser to obtain the maintenance manual from the seller. By
acceptance of a deed to a lot, each purchaser acknowledges the
obligation to comply with the voluntary demand management measures
for the lot as described in the covenant. The covenant and its
obligations shall be in effect for the time period used by the public
water system for determining the water savings attributable to the
demand management measures but not exceeding the period described in
paragraph (2) of subdivision (a).  
   (B) The requirements of subparagraph (A) shall be included with
the original sales documentation and shall be acknowledged by the
purchaser. The seller shall instruct the original purchaser to
provide the maintenance manual to any subsequent purchaser, pursuant
to subdivision (h) of Section 912 of the Civil Code.  
   (C) The covenant referred to in subparagraph (A) may be enforced
pursuant to the existing authority of a public water system. 

   (7) 
    (9)  Prior to the close of escrow, a builder shall give
to a purchaser  a manual of documents  
information  that shall be included in a maintenance manual 
, as described in subdivision (c) of Section 945.5 of the Civil
Code,  that informs the purchaser of the existence of the home's
unique water saving devices, including information regarding their
benefits, maintenance requirements, and proper use.
   (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  savings 
. The expenditure may be made within the subdivision or elsewhere
within the service area of the public water supplier, at its
discretion.  Funds deposited into the voluntary water demand
mitigation fund shall be accounted for in the same manner as fees
imposed for water connections or sewer connections pursuant to
Section 66013. 
   (2) The public water system shall be prohibited from using funds
from the Voluntary Water Conservation Mitigation Fund to supplant
funding for water conservation programs required by  existing
law   planned water demand reduction actions contained
in an adopted urban water management plan, existing law,  or
paid for by existing customers through water rates and surcharges.
   (3) The public water system should commit to carrying out the
water conservation measures funded by the Voluntary Water Demand
Mitigation Fund within 24 months of the sale of the last unit of the
proposed subdivision. However, the public water system's failure to
implement the water conservation measures shall not result in the
revocation, denial, or delay of any legislative, adjudicatory,
ministerial, or discretionary act, permit, or approval necessary for
the planning, use, development, construction, occupancy, or operation
of the proposed subdivision or any improvement thereon.  The
sole remedy for the failure of a public water system to implement
the water conservation measures shall be for an interested party to
seek a writ of mandamus to compel the public water system to comply.

   (q) (1) Not less than 40 percent of the proceeds from the
Voluntary Water Demand Mitigation Fund shall be directed to water
conservation programs in any disadvantaged community, as defined in
Section 75005 of the Public Resources Code, within the service area
of the public water system.
   (2) The governing body of the public water system may make a
finding based on substantial evidence that no disadvantaged community
exists within the service area or that the capacity for water
conservation within all disadvantaged communities within the service
area has been exhausted. Substantial evidence demonstrating that no
disadvantaged community exists within the service area shall include
federal census data. When the public water system makes this finding,
the use of the water demand
       mitigation funds shall be exempt from the requirements of
paragraph (1).
   (r) Notwithstanding subdivision (q), the amount of water savings
attributable to the payment of fees into the Voluntary Water Demand
Mitigation Fund shall be based upon the  least expensive,
 most cost-effective means to yield water  savings 
. 
   (s) Wherever "public water system" is used in paragraphs (5) and
(6) of subdivision (a), paragraphs (1), (5), (6), (7), and (8) of
subdivision (b), and subdivision (p), a local agency shall be
substituted if there is no public water system that supplies water
for the subdivision.  
   (s) 
    (t)  This section shall remain in effect only until
January 1, 2017, and as of that date is repealed, unless a later
enacted statute, that is enacted before January 1, 2017, 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, 2017.
  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  after taking into consideration voluntary
water demand management measures proposed to be incorporated into the
project or within the water provider's service area  .
   (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  planned water demand reduction actions
contained in an adopted urban water management plan and  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  voluntarily chosen by the applicant  "
means water use efficiency measures that exceed current 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. For the purposes of this
chapter, water recycling shall be eligible as a water conservation
measure.
   (G) Voluntary mitigation measures may include, at the applicant's
sole discretion conservation offsets that reduce a project's impact
to the public water system, as determined by the applicant and agreed
upon by the public water system. The applicant may enter into a
mutual 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. At the discretion of the public water system,
the amount required for the Voluntary Water Demand Mitigation Fund
may be reduced by a portion of the normally required system capacity
charges that finance future water supplies. Any reduction in the
capacity charge may be calculated using the amount of water projected
to be conserved using the Voluntary Water Demand Mitigation Fund at
the cost determined by the public water system for developing new
water supplies  through  or for  water
conservation. Because the cost varies for developing different
sources of future water supplies, including through water
conservation, the total reduction in system capacity charges may or
may not be equal to the amount paid into the Voluntary Water Demand
Mitigation Fund.  A project may not be disapproved due to the
applicant's refusal to use voluntary mitigation measures. 
 An applicant's refusal to use voluntary demand management
measures shall not result in any of the consequences set forth in
paragraph (3) of subdivision (i). 
   (6) "Voluntary Water Demand Mitigation Fund" means the fund used
to finance verifiable and quantifiable water conservation or water
supply augmentation measures by the public water system that mitigate
or offset a percentage of the projected water demand impacts from
the  subdivision.  
   (7) The public water system shall make the determination of the
projected water savings for the measures that will be incorporated
into the subdivision. The projected water savings may be calculated
using water efficiency program data compiled or maintained by the
public water system or the water savings projections adopted by the
California Urban Water Conservation Council, including estimates of
normal performance decline of specific water demand management
measures. 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 or the public water system, the public water
system's determination of the projected water savings shall be made
based on documented methodologies or calculations submitted in the
record. These methodologies may include, but are not limited to,
water efficiency program implementation data and projections
calculated by the public water system or the applicant, or by the
California Water Conservation Council, or data that demonstrates that
water efficiencies are quantifiable and verifiable when the
determination is made. Pursuant to Part 2.6 (commencing with Section
10610) of Division 6 of the Water Code, the public water system shall
report on the monitoring and compliance of voluntary demand
management measures and determine whether they have resulted in the
water savings necessary to achieve the agreed upon water demand
offsets. The public water system shall do both of the following:
 
   (A) Document the measured annual water use of the subdivision in
comparison to the projected demand associated with the subdivision.
 
   (B) Calculate the water savings attributable to the demand
management measures financed by the Voluntary Water Demand Mitigation
Fund for the subdivision.  
   (8) Copies of the first report, prepared five years after the
project has been fully developed, 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. 
    (9)     Prior to the
close of escrow, a builder shall give to a purchaser a manual of
documents that shall be included in a maintenance manual that informs
the purchaser of the existence of the home's unique water saving
devices, including information regarding their benefits, maintenance
requirements, and proper use.   project.  
   (7) The public water system shall make the determination of the
projected water savings attributable to the voluntary demand
management measures that will be incorporated into the project. 

   (A) The projected water savings shall be calculated using either
of the following:  
   (i) Water efficiency program data compiled or maintained by the
public water system.  
   (ii) Water savings projections adopted by the California Urban
Water Conservation Council.  
   (B) Notwithstanding subparagraph (A), if a project applicant
proposes to use a new voluntary water demand management measure for
which neither the California Urban Water Conservation Council nor the
public water system has adopted an estimate or method to calculate
the projected water savings of the proposed voluntary water demand
management measure, the projected water savings shall be made based
on documented methodologies or calculations submitted in the record.
 
   (i) These methodologies or calculations may include, but are not
limited to, water efficiency program implementation data and
projections calculated by the public water system, the local agency,
the applicant, or the California Water Conservation Council. 

   (ii) These methodologies or calculations shall demonstrate that
the proposed voluntary water demand management measures result in
projected water savings that are quantifiable and verifiable. 

   (C) The projected water savings may also include all of the
following:  
   (i) Estimates of normal performance decline of specific water
demand management measures.  
   (ii) Adjustment factors or other estimates to reflect the
uncertain performance of new and emerging technologies.  
   (8) Five years after the project has been fully developed, the
public water system shall include in its next urban water management
plan, required by Part 2.6 (commencing with Section 10610) of
Division 6 of the Water Code, a report on the monitoring and
compliance of voluntary water demand management measures and
determine, if practicable based upon readily available information,
whether they have resulted in the water savings necessary to achieve
the agreed upon water demand offsets.  
   (9) If practicable based upon readily available information, the
public water system shall do both of the following:  
   (A) Document the measured annual water use of the project in
comparison to the projected demand associated with the project. 

   (B) Calculate the water savings attributable to the voluntary
mitigation measures financed by the Voluntary Water Demand Mitigation
Fund for the project.  
   (10) (A) If the public water system bases its water supply
assessment for the project, in whole or in part, on the use of
voluntary demand management measures within the project, the
assessment shall be conditioned on the maintenance and operation of
the voluntary demand management measures, or measures that are at
least as water efficient, as agreed to by the applicant and the
public water system, and the recordation as a covenant running with
the land, pursuant to Section 1468 of the Civil Code, for the lots
within the project. The maintenance and operation obligations shall
be contained in the maintenance manual referred to in paragraph (11).
The recorded covenant shall include a notice of the existence of the
maintenance manual and the obligation for a purchaser to obtain it
from the seller. By acceptance of a deed to a lot, each purchaser
acknowledges the obligation to comply with the voluntary demand
management measures for the lot as described in the covenant. The
covenant and its obligations shall be in effect for the time period
used by the public water system for determining the water savings
attributable to the demand management measures but that time period
shall not exceed the period described in subdivision (a) of Section
10631.  
   (B) The requirements of paragraph (A) shall be included with the
original sales documentation and shall be acknowledged by the
purchaser. The seller shall instruct the original purchaser to
provide the maintenance manual to any subsequent
                               purchaser, pursuant to subdivision (h)
of Section 912 of the Civil Code.  
   (C) The covenant referred to in paragraph (A) may be enforced
pursuant to the existing authority of a public water system. 

   (11) Prior to the close of escrow, a builder shall give to a
purchaser information that shall be included in a maintenance manual
as described in subdivision (c) of Section 945.5 of the Civil Code,
that informs the purchaser of the existence of the home's unique
water saving devices, including information regarding their benefits,
maintenance requirements, and proper use. 
   (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 
 project  . Water conservation measures shall be chosen that
are the  least expensive,  most cost-effective
means to yield water  savings  . The expenditures may be
made within the subdivision or elsewhere within the service area of
the public water supplier at its discretion.  Funds deposited
into the voluntary water demand mitigation fund shall be accounted
for in the same manner as fees imposed for water connections or sewer
connections pursuant to Section 66013. 
   (2) The public water system shall be prohibited from using funds
from the Voluntary Water Conservation Mitigation Fund to supplant
funding for water conservation programs required by  existing
law   planned water reduction actions contained in an
adopted urban water management plan, existing law,  or paid for
by existing customers through water rates and surcharges.
   (3) The public water system should commit to carrying out the
water conservation measures funded by the Voluntary Water Demand
Mitigation Fund within 24 months of the sale of the last unit of the
proposed subdivision. However, the public water system's failure to
implement the water conservation measures shall not result in the
revocation, denial, or delay of any legislative, adjudicatory,
ministerial, or discretionary act, permit, or approval necessary for
the planning, use, development, construction, occupancy, or operation
of the proposed subdivision   project  or
any improvement thereon.  The sole remedy for the failure of
a public water system to implement the water conservation measures
shall be for an interested party to seek a writ of mandamus to compel
the public water system to comply. 
   (j) (1) Not less than 40 percent of the proceeds from the
Voluntary Water Demand Mitigation Fund shall be directed to water
conservation programs in any disadvantaged community, as defined in
Section 75005 of the Public Resources Code, within the service area
of the public water system.
   (2) The governing body of the public water system may make a
finding based on substantial evidence that no disadvantaged community
exists within the service area or that the capacity for water
conservation within all disadvantaged communities within the service
area has been exhausted. Substantial evidence demonstrating that no
disadvantaged community exists within the service area shall include
federal census data. When the public water system makes this finding,
the use of the water demand mitigation funds shall be exempt from
the requirements in paragraph (1).
   (k) Notwithstanding subdivision (j), the amount of water savings
attributable to the payment of fees into the Voluntary Water Demand
Mitigation Fund shall be based upon the  least expensive,
 most cost-effective means to yield water  savings 
. 
   (l) Wherever "public water system" is used in paragraphs (5), (6),
(7), (8), (9), and (10) of subdivision (c), and subdivision (p), a
local agency shall be substituted if there is no public water system
that supplies water for the subdivision.  
   (l) 
    (m)  This section shall remain in effect only until
January 1, 2017, and as of that date is repealed, unless a later
enacted statute, that is enacted before January 1, 2017, 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, 2017.
  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.