BILL NUMBER: AB 1187	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Members Huffman and Caballero
   (Principal coauthors: Assembly Members Arambula, Eng, Feuer, and
Salas)

                        FEBRUARY 27, 2009

   An act to add Division 26.7 (commencing with Section 79700) to the
Water Code, relating to financing a water supply reliability and
water source protection program, by providing the funds necessary
therefor through an election for the issuance and sale of bonds of
the State of California and for the handling and disposition of those
funds.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1187, as introduced, Huffman. Safe, Clean, Reliable Drinking
Water Supply Act of 2010.
   Under existing law, various measures have been approved by the
voters to provide funds for water protection, facilities, and
programs.
   This bill would enact the Safe, Clean, Reliable Drinking Water
Supply Act of 2010 which, if approved by the voters, would authorize,
for the purposes of financing specified water supply reliability and
water source protection programs, the issuance of bonds in the
amount of $10,035,000,000 pursuant to the State General Obligation
Bond Law.
   The act, if approved by the voters, would require the ____ to
establish and impose a fee on users of water to be used for the
purposes of the act, upon appropriation by the Legislature.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Division 26.7 (commencing with Section 79700) is added
to the Water Code, to read:

      DIVISION 26.7.  THE SAFE, CLEAN, RELIABLE DRINKING WATER SUPPLY
ACT of 2010


      CHAPTER 1.  SHORT TITLE


   79700.  This division shall be known and may be cited as the Safe,
Clean, Reliable Drinking Water Supply Act of 2010.
      CHAPTER 2.  FINDINGS AND DECLARATIONS


   79701.  The people of California find and declare all of the
following:
   (a) Safeguarding supplies of clean, safe drinking water to
California's homes, businesses, and farms is an essential
responsibility of government, and critical to protecting the quality
of life for Californians.
   (b) Every Californian should have access to clean, safe, reliable
drinking water.
   (c) Providing adequate supplies of clean, safe drinking water is
vital to keeping California's economy growing and strong.
   (d) Encouraging water conservation and recycling are commonsense
methods to make more efficient use of existing water supplies.
   (e) Protecting lakes, rivers, and streams from pollution, cleaning
up polluted groundwater supplies, and protecting water sources that
supply the entire state are crucial to providing a reliable supply of
drinking water and protecting the state's natural resources.
      CHAPTER 3.  DEFINITIONS


   79702.  Unless the context otherwise requires, the definitions set
forth in this section govern the construction of this division, as
follows:
   (a) "Bay Delta Conservation Plan" means the final plan prepared
pursuant to the Planning Agreement regarding the Bay Delta
Conservation Plan, dated October 6, 2006.
   (b) "Bay-Delta Estuary" means the Delta, Suisun Bay, and Suisun
Marsh.
   (c) "CALFED Bay-Delta Program" means the program described in the
Record of Decision dated August 28, 2000.
   (d) "Committee" means the Safe, Clean, Reliable Drinking Water
Supply Finance Committee created by Section 79782.
   (e) "Delta" means the Sacramento-San Joaquin Delta as defined in
Section 12220.
   (f) "Delta conveyance facilities" means facilities that convey
water directly from the Sacramento River to the State Water Project
or the federal Central Valley Project pumping facilities in the south
Delta.
   (g) "Department" means the Department of Water Resources.
   (h) "Director" means the Director of Water Resources.
   (i) "Disadvantaged community" has the meaning set forth in
subdivision (a) of Section 79505.5.
   (j) "Fund" means the Safe, Clean, Reliable Drinking Water Supply
Fund created by Section 79720.
   (k) "Integrated regional water management plan" means a
comprehensive plan for a defined geographic area, the specific
development and content of which shall be defined by guidelines
adopted by the department. At a minimum, an integrated regional water
management plan describes the major water-related objectives and
conflicts within a region, considers a broad variety of water
management strategies, and identifies the appropriate combination of
water demand and supply management alternatives, water quality
protections, and environmental stewardship actions to provide
long-term, reliable, and high-quality water supplies and to protect
the environment.
   (l) "Nonprofit organization" means an organization qualified to do
business in California and qualified under Section 501(c) (3) of
Title 26 of the United States Internal Revenue Code.
   (m) "Public agency" means a state agency or department, district,
joint powers authority, city, county, city and county, or other
political subdivision of the state.
   (n) "Secretary" means the Secretary of the Natural Resources
Agency.
   (o) "State General Obligation Bond Law" means the State General
Obligation Bond Law (Chapter 4 (commencing with Section 16720) of
Part 3 of Division 4 of Title 2 of the Government Code).
      CHAPTER 4.  GENERAL PROVISIONS


   79710.  An amount that equals not more than 5 percent of the funds
allocated for a grant program pursuant to this division may be used
to pay the administrative costs of that program.
   79710.5.  Up to 10 percent of funds allocated for each program
funded by this division may be used to finance planning and
monitoring necessary for the successful design, selection, and
implementation of the projects authorized under that program. This
section shall not otherwise restrict funds ordinarily used by an
agency for "preliminary plans," "working drawings," and "construction"
as defined in the annual Budget Act for a capital outlay project or
grant project. Water quality monitoring performed in connection with
a project funded under this division shall be integrated into the
surface water ambient monitoring program administered by the State
Water Resources Control Board.
   79711.  Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code does not apply to the
development or implementation of programs or projects authorized or
funded under Chapter 6 (commencing with Section 79721), Chapter 7
(commencing with Section 79730), Chapter 9 (commencing with Section
79750), Chapter 10 (commencing with Section 79775), and Chapter 11
(commencing with Section 79779).
   79712.  (a) Prior to disbursing grants pursuant to this division,
each state agency that is required to administer a competitive grant
program under this division shall develop project solicitation and
evaluation guidelines. The guidelines may include a limitation on the
dollar amount of grants to be awarded.
   (b) Prior to disbursing grants, the state agency shall conduct
three public meetings to consider public comments prior to finalizing
the guidelines. The state agency shall publish the draft
solicitation and evaluation guidelines on its Internet Web site at
least 30 days before the public meetings. One meeting shall be
conducted at a location in northern California, one meeting shall be
conducted in the central valley, and one meeting shall be conducted
at a location in southern California. Upon adoption, the state agency
shall transmit copies of the guidelines to the fiscal committees and
the appropriate policy committees of the Legislature.
   79713.  It is the intent of the people that the investment of
public funds pursuant to this division result in public benefits.
   79714.  The State Auditor shall annually conduct a programmatic
review and an audit of expenditures from the fund. The State Auditor
shall report its findings annually on or before March 1 to the
Governor and the Legislature, and shall make the findings available
to the public.
   79715.  Funds provided by this division shall not be used to
support or pay for the costs of environmental mitigation measures or
compliance obligations of any party except as part of the
environmental mitigation costs of projects financed by this division.
Funds provided by this division may be used for environmental
enhancements or other public benefits.
   79716.  Funds provided by this division shall not be expended to
pay the costs of the design, construction, operation, or maintenance
of Delta conveyance facilities. Those costs shall be the
responsibility of the agencies that benefit from the design,
construction, operation, or maintenance of those facilities.
   79717.  Nothing in this division shall limit or otherwise affect
the application of Sections 10505, 10505.5, 11128, 11460, 11461,
11462, and 11463 and Sections 12200 to 12220, inclusive.
   79718.  The Legislature may enact legislation necessary to
implement programs funded by this division.
   79719.  Eligible applicants under this division are public
agencies, nonprofit organizations, public utilities, and mutual water
companies. To be eligible for funding under this division, a
project, proposed by a public utility that is regulated by the Public
Utilities Commission or a mutual water company, shall have a clear
and definite public purpose and shall benefit the customers of the
water system.
      CHAPTER 5.  SAFE, CLEAN, RELIABLE DRINKING WATER SUPPLY FUND


   79720.  The proceeds of bonds issued and sold pursuant to this
division, and the fee described in Chapter 12 (commencing with
Section 79779.7), shall be deposited in the Safe, Clean, Reliable
Drinking Water Supply Fund, which is hereby created.
      CHAPTER 6.  WATER SUPPLY RELIABILITY


   79721.  The sum of one billion five hundred million dollars
($1,500,000,000) shall be available, upon appropriation by the
Legislature, from the fund to the department for competitive grants
in accordance with Section 79722.
   79722.  (a) Except as provided in subdivision (f), the department
shall award grants to eligible projects that implement an adopted
integrated regional water management plan.
   (b) An urban water supplier that does not prepare, adopt, and
submit its urban water management plan in accordance with the Urban
Water Management Planning Act (Part 2.6 (commencing with Section
10610) of Division 6) is ineligible to receive funds made available
pursuant to Section 79721 until the urban water management plan is
prepared and submitted in accordance with the requirements of that
act.
   (c) The department shall require a local cost share of not less
than 50 percent of the total costs of the projects. The department
may waive or reduce the cost-sharing requirement for projects that
directly benefit a disadvantaged community.
   (d) Eligible projects include, but are not limited to, all of the
following:
   (1) Agricultural and urban water use efficiency implementation
projects, including, but not limited to, feasibility studies,
technical assistance, education, and public outreach, and projects
that result in water savings, increased instream flow, improved water
quality, or increased energy efficiency.
   (2) Recycling, reclamation, water treatment for the recovery of
water supplies, desalination, and associated facilities, including
distributions systems.
   (3) Groundwater and surface storage projects, and conjunctive use
and reservoir reoperation projects.
   (4) Groundwater contamination prevention, cleanup, and treatment,
and other water quality projects necessary to protect existing or
potential water supplies. The implementation of a project financed
pursuant to this paragraph does not relieve a responsible party or
liable person from that person's obligation under existing state or
federal law to clean up or remediate, or otherwise treat,
contaminated water.
   (5) Projects that reduce contributions to climate change from
water management systems.
   (6) Projects that enhance the adaptability to climate change of
water management systems.
   (7) Other projects that meet the requirements of Section 75026 of
the Public Resources Code.
   (e) The funding provided in Section 79721 shall be allocated to
each hydrologic region as identified in the California Water Plan in
accordance with this subdivision. For the South Coast hydrologic
region, the department shall establish three funding areas that
reflect the watersheds of San Diego County (designated as the San
Diego subregion), the Santa Ana River watershed and southern Orange
County (designated as the Santa Ana subregion), and the Los Angeles
and Ventura County watersheds (designated as the Los Angeles
subregion), and shall allocate funds to those areas in accordance
with this subdivision. The North and South Lahontan hydrologic
regions shall be treated as one area for the purpose of allocating
funds. The department may recognize multiple integrated regional
water management plans in each of the areas allocated funding. Funds
made available by this chapter shall be allocated as follows:
(1) North Coast            $70,000,000
(2) San Francisco Bay     $150,000,000
(3) Central Coast          $82,000,000
(4) Los Angeles subregion $210,000,000
(5) Santa Ana subregion   $146,000,000
(6) San Diego subregion   $108,000,000
(7) Sacramento River      $103,000,000
(8) San Joaquin River      $91,000,000
(9) Tulare/Kern            $93,000,000
(10) North/South Lahontan  $75,000,000
(11) Colorado River Basin  $72,000,000
(12) Interregional        $300,000,000


   (f) Interregional funds may be expended directly or granted by the
department to address multiregional needs or state priorities,
including, but not limited to, any of the following:
   (1) Investing in new water technology development and deployment.
   (2) Meeting state water recycling and water conservation goals.
   (3) Adapting to climate change impacts.
   (4) Reducing contributions to climate change.
   (5) Other projects to improve statewide water use measurement and
management systems.
   (6) Other projects and activities designed to meet the needs of
disadvantaged communities, including technical and grant writing
assistance.
   79723.  (a) The sum of five hundred million dollars ($500,000,000)
is available, upon appropriation by the Legislature from the fund,
to the department for grants and expenditures for the planning,
design, and construction of local and regional drought relief
projects that reduce the impacts of drought conditions, including,
but not limited to, the impacts of reductions in Delta diversions.
Projects shall be consistent with an adopted integrated regional
water management plan and include the following types of projects:
   (1) Water conservation and efficiency projects.
   (2) Water recycling and related infrastructure.
   (3) Stormwater capture.
   (4) Groundwater cleanup.
   (5) Local and regional conveyance projects that improve
connectivity and water management.
   (6) Other local and regional water supply reliability projects.
   (b) Projects shall meet both of the following conditions:
   (1) The project shall provide a sustainable water supply that does
not contribute to groundwater overdraft or increase surface water
diversions.
   (2) The project shall be capable of being operational within two
years of receiving the grant.
   (c) Preference shall be given to applicants that can demonstrate
substantial past and current investments in conservation and local
water projects.
   (d) The department shall require a cost share of not less than 50
percent of total project costs from nonstate sources. The department
may waive or reduce the cost share requirement for projects that
directly benefit disadvantaged communities.
      CHAPTER 7.  DELTA SUSTAINABILITY


   79730.  (a) The Bay-Delta Estuary is a unique and irreplaceable
combination of environmental and economic resources. Current
management and use of the Delta is not sustainable, and results in a
high level of conflict among various interests. Future Delta
sustainability is threatened by changing hydrology due to climate
change, water diversions, flood risk, seismic events, nonnative
species, toxics, and other environmental problems. Future management
of the Delta must improve Delta ecosystem health and improve the
means of Delta water conveyance in order to protect drinking water
quality, improve water supply reliability, restore ecosystem health,
and preserve agricultural and recreational values in the Delta, while
providing to counties and watersheds of origin assurances that their
priority to water resources will be protected and that programs or
facilities implemented or constructed in the Delta will not result in
redirection of unmitigated, significant adverse impacts to the
counties and watershed of origin. Many sources of funding will be
needed to implement improved Delta management.
   (b) This chapter provides state funding for public benefits
associated with projects needed to assist in the Delta's
sustainability as a vital resource for fish, wildlife, water quality,
water supply, agriculture, and recreation.
   (c) In implementing this chapter, the Natural Resources Agency, or
another agency as may be established by statute to provide oversight
and management for Delta projects shall develop, in cooperation with
the department, the Department of Fish and Game, and the State Water
Resources Control Board, a comprehensive Delta sustainability plan
that balances the coequal goals of ecosystem revitalization and
environmentally sustainable water supply, consistent with criteria to
be adopted by statute.
   79731.  The sum of one billion nine hundred million dollars
($1,900,000,000) is available upon appropriation by the Legislature
from the fund for grants and direct expenditure, as follows:
   (a) Seven hundred million dollars ($700,000,000) for projects that
provide public benefits and support Delta sustainability options,
including projects that do any of the following:
   (1) Ensure that urban and agricultural water supplies derived from
the Delta, including water supplies used within the Delta, are not
disrupted because of catastrophic failures of Delta levees resulting
from earthquakes, floods, land sinking, rising ocean levels, or other
forces.
   (2) Improve the quality of drinking water derived from the Delta.
   (3)  Provide physical improvements or other actions to create
waterflow and water quality conditions within the Delta to provide
adequate habitat for native fish and wildlife.
   (4) Facilitate other projects that provide public benefits and
support Delta sustainability options approved by the Legislature,
including costs associated with planning, monitoring, and design of
alternatives, and project modifications and adaptations necessary to
achieve the goals of this chapter.
   (b) One billion two hundred million dollars ($1,200,000,000) for
projects to protect and enhance the sustainability of the Delta
ecosystem, including any of the following:
   (1) Projects for the development and implementation of the Bay
Delta Conservation Plan that promote the conservation, as that term
is defined in Chapter 10 (commencing with Section 2800) of Division 3
of the Fish and Game Code, of covered species, and for native
fishery restoration projects that are consistent with criteria to be
adopted by statute. The projects shall be implemented through a
cooperative effort among regulatory agencies, regulated and
potentially regulated entities, and affected parties, including state
and federal water contractors. These funds may be expended for the
preparation of environmental documentation and environmental
compliance that meets the requirements of Chapter 10 (commencing with
Section 2800) of Division 3 of the Fish and Game Code.
   (2) Other projects to protect and restore native fish and wildlife
dependent on the Delta ecosystem, including the acquisition of water
rights, the removal or reduction of undesirable invasive species,
and projects both in and out of the Delta that improve the ability to
restore and recover native anadromous fish species.
   (3) Projects to reduce greenhouse gas emissions from exposed Delta
soils.
   (4) Projects that reduce impacts of mercury contamination of the
Delta and its watersheds, and remediation and elimination of
continuing sources of mercury contamination.
   79732.  The secretary, or other public official as may be
designated by statute, shall submit the plan described in subdivision
(c) of Section 79730 to the Legislature by June 30, 2011. By April 1
of each year following the submission of the plan, the secretary, or
another public official as may be designated by statute, shall
evaluate the progress in implementing the plan, determine if adequate
progress is being made, and submit those findings to the Legislature
along with recommendations to improve the implementation of the
plan.
   79733.  (a) Except as provided in subdivision (b), no funds may be
appropriated for any project pursuant to this chapter unless the
project is consistent with a comprehensive Delta sustainability plan
adopted by statute.
   (b) Up to 10 percent of funds may be appropriated pursuant to this
chapter prior to the adoption of the plan described in subdivision
(a).
      CHAPTER 8.  STATEWIDE WATER SYSTEM OPERATIONAL IMPROVEMENT


   79740.  (a) The sum of three billion dollars ($3,000,000,000) is
available, upon appropriation by the Legislature from the fund, to
the Natural Resources Agency, or another agency as may be established
by statute to provide oversight and management for Delta watershed
projects, for public benefits associated with water storage projects
that improve the operation of the state water system, are cost
effective, and provide a net improvement in ecosystem and water
quality conditions, in accordance with this chapter. Funds authorized
for, or made available, pursuant to this chapter shall be available
and used only for the purposes provided in this chapter.
   (b) Projects shall be selected by the Natural Resources Agency, or
another agency as may be established by statute to provide oversight
and management for Delta watershed projects, through a competitive
public process that ranks potential projects based on the expected
return for public investment as measured by the magnitude of the
public benefits provided, pursuant to criteria established under this
chapter.
   (c) Any project constructed with funds provided by this chapter
shall be subject to Section 11590.
   (d) Notwithstanding subdivision (a), up to 10 percent of the three
billion dollars ($3,000,000,000) made available by subdivision (a)
shall be made available, upon appropriation by the Legislature from
the fund, to the Department of Fish and Game and the State Water
Resources Control Board to implement this chapter.
   79741.  Projects for which the public benefits are eligible for
funding under this chapter consist of any of the following:
   (a) Surface storage projects identified in the CALFED Bay-Delta
Program Record of Decision, dated August 28, 2000, excluding the
expansion of the Shasta Reservoir.
   (b) Groundwater storage projects and groundwater contamination
prevention or remediation projects that provide water storage
benefits.
   (c) Conjunctive use and reservoir reoperation projects.
   (d) Regional and local surface storage projects that improve the
operation of water systems in the state and provide public benefits.
   79741.5.  A project shall not be funded pursuant to this chapter
unless it provides measurable improvements to the Delta ecosystem,
including, but not limited to, measurable contributions to Delta
ecosystem improvements from the tributaries to the Delta.
   79742.  (a) Funds allocated pursuant to this chapter may be
expended solely for the following public benefits associated with
water storage projects:
   (1) Ecosystem improvements, including changing the timing of water
diversions, improvement in flow conditions, temperature, or other
benefits that contribute to restoration of aquatic ecosystems and
native fish and wildlife, including those ecosystems and fish and
wildlife in the Delta.
   (2) Water quality improvements in the Delta, or in other river
systems, that provide significant public trust resources, or that
clean up and restore groundwater resources.
   (3) Flood control benefits, including, but not limited to,
increases in flood reservation space in existing reservoirs by
exchange for existing or increased water storage capacity in response
to the effects of changing hydrology and decreasing snow pack on
California's water and flood management system.
   (b) For the purposes of this chapter, "public benefits" does not
include the costs of environmental mitigation measures or compliance
obligations.
   79743.  In consultation with the Department of Fish and Game, the
State Water Resources Control Board, and the department, the Natural
Resources Agency, or another agency as may be established by statute
to provide oversight and management for Delta watershed projects,
shall develop and adopt, by regulation, methods for quantification
and management of public benefits described under Section 79742 by
December 15, 2011. The regulations shall include the priorities and
relative environmental value of ecosystem benefits as provided by the
Department of Fish and Game and the priorities and relative
environmental value of water quality benefits as provided by the
State Water Resources Control Board.
   79744.  (a) Except as provided under subdivision (c), no funds
allocated pursuant to this chapter may be allocated for a project
unless the Natural Resources Agency, or another agency as may be
established by statute to provide oversight and management for Delta
watershed projects, approves the project based on its determination
that all of the following have occurred:
   (1) The Natural Resources Agency, or another agency as may be
established by statute to provide oversight and management for Delta
watershed projects, has adopted the regulations specified in Section
79743 and specifically quantified and made public the cost of the
public benefits associated with the project.
   (2) The department has entered into a contract with each party who
will derive benefits, other than public benefits as defined in
Section 79742, from the project that ensures the party will pay its
share of the total costs of the project. The benefits available to a
party shall be consistent with that party's share of total project
costs.
   (3) The department has entered into a contract with each public
agency identified in Section 79743 that administers the public
benefits, after that agency makes a finding that the public benefits
of the project for which that agency is responsible meet all the
requirements of this chapter, to assure that the public contribution
of funds pursuant to this chapter achieves the public benefits
identified for the project.
   (4) The Natural Resources Agency, or another agency as may be
established by statute to provide oversight and management for Delta
watershed projects, has held a public hearing for the purposes of
providing an opportunity for the public to review and comment on the
information required to be prepared pursuant to this subdivision.
   (5) All of the following additional conditions are met:
   (A) Feasibility studies have been completed.
   (B) The director has found and determined that the project is
feasible and is consistent with all applicable laws and regulations.
   (C) All environmental documentation associated with the project
has been completed, and all other federal, state, and local
approvals, certifications, and agreements required to be completed
have been obtained.
   (b) The Natural Resources Agency, or another agency as may be
established by statute to provide oversight and management for Delta
watershed projects, shall submit to the Legislature its findings for
each of the criteria listed in subdivision (a) for a project funded
pursuant to this chapter.
   (c) Notwithstanding subdivision (a), funds may be made available
under this chapter for the completion of environmental documentation
and permitting of a project if all of the conditions of this section
have been met except for the
          conditions established under subparagraph (C) of paragraph
(5) of subdivision (a).
   79745.  (a) The public benefit cost share of a project funded
pursuant to this chapter, other than a project defined under
subdivision (c) of Section 79741, may not exceed 50 percent of the
total costs of any project funded under this chapter.
   (b) No project may be funded unless it provides ecosystem
improvements as described in paragraph (1) of subdivision (a) of
Section 79742 that are at least 50 percent of total public benefits
of the project funded under this chapter.
   79746.  (a) No project identified in subdivision (a) of Section
79741 shall be eligible for funding under this chapter unless, by
January 1, 2014, all of the following conditions are met for the
project:
   (1) All feasibility studies are complete and draft environmental
documentation is available for public review.
   (2) The director makes a finding that the project is feasible.
   (3) The director receives commitments for not less than 75 percent
of the nonstate cost share of the project.
   (b) If compliance with subdivision (a) is delayed by litigation or
failure to promulgate regulations, the date in subdivision (a) shall
be extended by the director for a time period that is equal to the
time period of the delay.
   79747.  Surface storage projects funded pursuant to this chapter
and described in subdivision (a) of Section 79741 may be made a unit
of the Central Valley Project as provided in Section 11290 and may be
financed, acquired, constructed, operated, and maintained pursuant
to Part 3 (commencing with Section 11100) of Division 6.
      CHAPTER 9.  CONSERVATION AND WATERSHED PROTECTION


   79750.  The sum of one billion dollars ($1,000,000,000) is
available, upon appropriation by the Legislature from the fund, in
accordance with this chapter, for expenditures and grants for
ecosystem and watershed protection and restoration projects,
including, but not limited to, all of the following watersheds:
   (a) The San Joaquin River watershed.
   (b) The Kern River and Tulare Basin watersheds.
   (c) The Salton Sea and Colorado River watersheds.
   (d) The Los Angeles River watershed.
   (e) The San Gabriel River watershed.
   (f) The Santa Ana River watershed.
   (g) The Klamath River watershed, including the Trinity, Scott, and
Shasta Rivers and watersheds.
   (h) North coast watersheds.
   (i) San Francisco Bay watersheds.
   (j) Central coast watersheds.
   (k) South coast watersheds.
   (l) Lake Tahoe Basin watershed.
   (m) The Sacramento River watershed, including the Yolo Bypass.
   (n) San Diego County coastal watersheds.
   (o) The Ventura River watershed.
   (p) The Sierra Nevada Mountain watersheds.
   (q) The Mojave River watershed.
   (r) The Owens River watershed.
   (s) The Santa Monica Bay watershed.
   79751.  (a) Funds provided for the Sacramento River and San
Joaquin River watersheds under Section 79750 shall be available for
projects consistent with the ecosystem restoration program element of
the California Bay-Delta Program, or its successor, or the San
Joaquin River Parkway Master Plan.
   (b) Funds provided for Salton Sea watershed projects under Section
79750 shall be available for Salton Sea restoration activities
identified for "Period I" in the Natural Resources Agency report
entitled "Salton Sea Ecosystem Restoration Program Preferred
Alternative Report and Funding Plan," dated May 2007.
   (c) Funds provided for the Lake Tahoe Basin watershed under
Section 79750 shall be available for projects consistent with the
Lake Tahoe Environmental Improvement Program.
   (d) Funds provided for the Los Angeles River and San Gabriel River
watersheds under Section 79750 shall be available pursuant to
Section 79508, and for projects identified in the Los Angeles River
Revitalization Master Plan.
   79752.  (a) The sum of eighty-five million dollars ($85,000,000)
is available, upon appropriation by the Legislature from the fund, to
the Department of Fish and Game for expenditures and grants to
protect the Delta ecosystem and the state's water supply from
invasive species, including, but not limited to, asiatic clams, zebra
mussels, quagga mussels, and New Zealand mud snails.
   (b) At least fifty million dollars ($50,000,000) of the funds
provided pursuant to subdivision (a) shall be available for grants to
public agencies, including water agencies, to pay for capital
expenditures associated with the control of invasive species,
including, but not limited to, chlorination facilities, habitat
modifications, and monitoring equipment. The Department of Fish and
Game shall administer the grant program.
   (c) The Legislature, by statute, shall establish requirements for
both of the following:
   (1) Repayment of grant funds made available pursuant to this
section in the event of cost recovery from parties responsible for
the introduction of invasive species that affect the Delta ecosystem
and the state's water supply.
   (2) Recipients of grants to make reasonable efforts to recover
costs from parties described in paragraph (1).
   79753.  For restoration and ecosystem protection projects under
this chapter, the services of the California Conservation Corps or
community conservation corps shall be used whenever feasible.
   79754.  Funds provided under this chapter may be appropriated to
the Natural Resources Agency, the Department of Fish and Game, the
Wildlife Conservation Board, the California Conservation Corps, the
Department of Parks and Recreation, or to state conservancies for
expenditures and grants consistent with this chapter and other
applicable laws.
   79755.  Of the funds made available pursuant to Section 79750, not
less than two hundred million dollars ($200,000,000) shall be
available to the State Coastal Conservancy for projects within
coastal counties and coastal watersheds, including grants to the San
Diego River Conservancy and for the Santa Ana River Parkway.
   79756.  Of the funds provided in Section 79750, not less than one
hundred million dollars ($100,000,000) shall be available to the
Wildlife Conservation Board for direct expenditure or grants for the
acquisition of water rights from willing sellers and the conveyance
of water for the benefit of migratory birds on wildlife refuges and
wildlife habitat areas subject to Section 3406(d) of the federal
Central Valley Project Improvement Act (Public Law 102-575).
   79757.  Of the funds provided in Section 79750, not less than two
hundred million dollars ($200,000,000) shall be available to the
Wildlife Conservation Board for direct expenditure or grants for the
protection or restoration of watershed lands that provide sources of
drinking water or rivers and streams that support species listed as
threatened or endangered under state or federal law.
   79758.  The sum of one hundred million dollars ($100,000,000) is
available, upon appropriation by the Legislature from the fund, to
the Wildlife Conservation Board, in consultation with the Department
of Forestry and Fire Protection, for grants and direct expenditures
for watershed restoration in fire damaged areas, and for fuel load
reduction and other projects to reduce the potential for watershed
damage from wildfires to protect water quality, fish, and wildlife.
   79759.  The sum of four hundred million dollars ($400,000,000) is
available, upon appropriation by the Legislature from the fund, to
the Department of Fish and Game and the State Coastal Conservancy for
grants and expenditures for projects that improve native fish
populations on rivers and streams, including, but not limited to,
barrier removal, sediment management, watershed land use planning,
and related watershed restoration.
   79760.  For the purposes of this chapter, the terms "restoration"
and "protection" have the meanings set forth in Section 75005 of the
Public Resources Code.
      CHAPTER 10.  GROUNDWATER PROTECTION AND WATER QUALITY


   79775.  (a) The sum of three hundred sixty million dollars
($360,000,000) is available, upon appropriation by the Legislature
from the fund, for expenditures, grants, and loans for projects to
prevent or reduce the contamination of groundwater that serves as a
source of drinking water. Projects shall be consistent with an
adopted integrated regional water management plan. Funds appropriated
pursuant to this section shall be available to the State Department
of Public Health for projects necessary to protect public health by
preventing or reducing the contamination of groundwater that serves
as a major source of drinking water for a community.
   (b) Projects shall be prioritized based upon the following
criteria:
   (1) The threat posed by groundwater contamination to the affected
community's overall drinking water supplies, including the need for
treatment of alternative supplies if groundwater is not available due
to contamination.
   (2) The potential for groundwater contamination to spread and
reduce drinking water supply and water storage for nearby population
areas.
   (3) The potential of the project, if fully implemented, to enhance
local water supply reliability.
   (4) The potential of the project to increase opportunities for
groundwater recharge and optimization of groundwater supplies.
   (c) The State Department of Public Health shall give additional
consideration to projects that meet any of the following criteria:
   (1) The project is implemented pursuant to a comprehensive
basinwide groundwater quality management and remediation plan or is
necessary to develop a comprehensive groundwater plan.
   (2) Affected groundwater provides a local supply that, if
contaminated and not remediated, will require import of additional
water from outside the region.
   (3) The project addresses contamination at a site where the
responsible parties have not been identified, or where the
responsible parties are unwilling or unable to pay for cleanup.
   (d) Of the amount made available by this section, not less than
one hundred million dollars ($100,000,000) shall be allocated to
projects that benefit disadvantaged communities, including technical
and grant writing assistance.
   (e) Of the amount made available by this section, up to one
hundred million dollars ($100,000,000) shall be available for
projects that meet the requirement of this section and both of the
following criteria:
   (1) The project is part of a basinwide management and remediation
plan for which federal funds have been allocated.
   (2) The project addresses contamination at a site on the list
maintained by the Department of Toxic Substances Control pursuant to
Section 25356 of the Health and Safety Code or a site listed on the
National Priorities List pursuant to the federal Comprehensive
Environmental Response, Compensation, and Liability Act of 1980 (42
U.S.C. Sec. 9601 et seq.).
   (f) The Legislature, by statute, shall establish both of the
following:
   (1) Requirements for repayment of grant funds in the event of cost
recovery from parties responsible for the groundwater contamination.

   (2) Requirements for recipients of grants to make reasonable
efforts to recover costs from parties responsible for groundwater
contamination.
   79775.5.  The sum of ninety million dollars ($90,000,000) is
available, upon appropriation by the Legislature from the fund, to
the State Department of Public Health for grants and direct
expenditures to finance emergency and urgent actions on behalf of
disadvantaged communities to ensure that safe drinking water supplies
are available to all Californians.
   79776.  The sum of two hundred million dollars ($200,000,000) is
available, upon appropriation by the Legislature from the fund, to
the State Water Resources Control Board for grants for small
community wastewater treatment projects to protect water quality that
meet all of the following criteria:
   (a) The project is for the planning, design, permitting,
construction, or improvement of a wastewater treatment facility,
sewer system, or related infrastructure necessary to meet water
quality standards or prevent contamination of surface water or
groundwater resources.
   (b) The project will serve a community with a population of 20,000
or less.
   (c) The project meets other standards that may be established by
the State Water Resources Control Board with respect to the design,
construction, financing, and operation of the project.
   79777.  (a) The sum of three hundred million dollars
($300,000,000) is available, upon appropriation by the Legislature
from the fund, to the State Water Resources Control Board for
competitive grants and loans for stormwater management and water
quality projects pursuant to this section.
   (b) Eligible projects shall do all of the following:
   (1) Assist in compliance with total maximum daily load (TMDL)
implementation plans.
   (2) Be consistent with all applicable waste discharge permits.
   (3) Be consistent with the applicable integrated regional water
management plan.
   (4) Contribute to the implementation of a comprehensive stormwater
management plan that meets all of the following criteria:
   (A) Manages stormwater on a watershed basis.
   (B) Prioritizes source control, onsite and local infiltration, and
reuse.
   (C) Provides for multiple benefit project design and community
participation.
   (D) Uses natural systems or mimics natural system function to the
maximum extent feasible.
   (E) Includes requirements for new and upgraded infrastructure and
development to meet design criteria and best management practices to
prevent stormwater pollution.
   (c) Eligible projects include facilities and infrastructure to
reduce, manage, and treat stormwater runoff, including, but not
limited to, all of the following:
   (1) Detention and retention basins.
   (2) Diversion, infiltration, and treatment facilities.
   (3) Creation or enhancement of natural infiltration and treatment.

   (4) Projects to facilitate, encourage, or support low-impact
development.
   (5) Other stormwater reduction projects, including installation or
enhancement of permeable surfaces, cisterns, and groundwater
recharge facilities.
   (d) The board shall require not less than a 50 percent local cost
share for grant funds, but may suspend or reduce the matching
requirements for disadvantaged communities.
   (e) The board shall award grants on a competitive basis,
considering the following criteria:
   (1) Water quality benefits from implementation of the stormwater
management plan.
   (2) Creation of sustainable local jobs through the implementation
of the stormwater management plan.
   (3) Overall community and public health benefits of implementing
the stormwater management plan.
   (4) The project's contribution to implementing the stormwater
management plan.
   79778.  The sum of one hundred million dollars ($100,000,000) is
available, upon appropriation by the Legislature from the fund, to
the California Ocean Protection Trust Fund established pursuant to
Section 35650 of the Public Resources Code, for projects consistent
with Section 35650 of the Public Resources Code.
      CHAPTER 11.  WATER RECYCLING AND ADVANCED WATER MANAGEMENT
TECHNOLOGIES


   79779.  The sum of five hundred million dollars ($500,000,000) is
available, upon appropriation by the Legislature from the fund, for
grants and loans for water and advanced treatment technology projects
that include the following:
   (a) Water recycling projects.
   (b) Contaminant and salt removal projects, including groundwater
and seawater desalination.
   (c) Dedicated distribution infrastructure for recycled water,
including commercial and industrial end-user retrofit projects to
allow use of recycled water.
   (d) Pilot projects for new salt and contaminant removal
technology.
   (e) Groundwater recharge infrastructure related to recycled water.

   (f) Technical assistance and grant writing assistance for
disadvantaged communities.
   (g) Advanced urban and agricultural water use measurement
technologies, including smart water meters, to encourage water use
efficiency.
   79779.5.  For projects funded pursuant to Section 79779, at least
a 50-percent local cost share shall be required, but may be suspended
or reduced for disadvantaged communities. Projects shall be selected
on a competitive basis, considering all of the following criteria:
   (a) Water supply reliability improvement.
   (b) Water quality and ecosystem benefits related to decreased
reliance on diversions from the Delta or instream flows.
   (c) Public health benefits from improved drinking water quality.
   (d) Cost-effectiveness.
   (e) Energy efficiency and greenhouse gas emission impacts.
      CHAPTER 12.  STATEWIDE WATER FEE


   79779.7.  The ____ shall establish and impose a fee on users of
water in the state to be used for the purposes of this division,
including paying the principal of, and interest on, bonds issued
pursuant to this division, upon appropriation by the Legislature from
the fund. In establishing and implementing this fee, all of the
following requirements shall be met:
   (a) The amount of the fee shall not exceed the reasonable cost of
the programs that the fee supports.
   (b) The fee shall not be imposed upon a feepayer if that feepayer'
s water use does not create adverse impacts mitigated by this
division or the feepayer does not benefit from programs provided by
this division.
   (c) The fee shall be equitably apportioned among feepayer groups.
      CHAPTER 13.  FISCAL PROVISIONS


   79780.  (a) Bonds in the total amount of ten billion thirty-five
million dollars ($10,035,000,000), not including the amount of any
refunding bonds issued in accordance with Section 79792, or so much
thereof as is necessary, may be issued and sold to provide a fund to
be used for carrying out the purposes expressed in this division and
to reimburse the General Obligation Bond Expense Revolving Fund
pursuant to Section 16724.5 of the Government Code. The bonds, when
sold, shall be and constitute valid and binding obligations of the
State of California, and the full faith and credit of the State of
California is hereby pledged for the punctual payment of both the
principal of, and interest on, the bonds as the principal and
interest become due and payable.
   (b) The Treasurer shall sell the bonds authorized by the committee
pursuant to this section. The bonds shall be sold upon the terms and
conditions specified in a resolution to be adopted by the committee
pursuant to Section 16731 of the Government Code.
   79781.  The bonds authorized by this division shall be prepared,
executed, issued, sold, paid, and redeemed as provided in the State
General Obligation Bond Law, and all of the provisions of that law
apply to the bonds and to this division and are hereby incorporated
in this division as though set forth in full in this division, except
Section 16727 of the Government Code shall not apply to the extent
that it is inconsistent with any other provision of this division.
   79782.  (a) Solely for the purpose of authorizing the issuance and
sale, pursuant to the State General Obligation Bond Law, of the
bonds authorized by this division, the Safe, Clean, Reliable Drinking
Water Supply Finance Committee is hereby created. For purposes of
this division, the Safe, Clean, Reliable Drinking Water Supply
Finance Committee is "the committee" as that term is used in the
State General Obligation Bond Law.
   (b) The committee consists of the Director of Finance, the
Treasurer, and the Controller. Notwithstanding any other provision of
law, any member may designate a deputy to act as that member in his
or her place for all purposes, as though the member were personally
present.
   (c) The Treasurer shall serve as chairperson of the committee.
   (d) A majority of the members of the committee shall constitute a
quorum of the committee, and may act for the committee.
   79783.  The committee shall determine whether or not it is
necessary or desirable to issue bonds authorized pursuant to this
division to carry out the actions specified in this division and, if
so, the amount of bonds to be issued and sold. Successive issues of
bonds may be authorized and sold to carry out those actions
progressively, and it is not necessary that all of the bonds
authorized to be issued be sold at any one time.
   79784.  "Board," as defined in Section 16722 of the Government
Code for the purposes of compliance with the State General Obligation
Bond Law, means the department.
   79785.  There shall be collected each year and in the same manner
and at the same time as other state revenue is collected, in addition
to the ordinary revenues of the state, a sum in an amount required
to pay the principal of, and interest on, the bonds each year, and it
is the duty of all officers charged by law with any duty in regard
to the collection of the revenue to do and perform each and every act
which is necessary to collect that additional sum.
   79786.  Notwithstanding Section 13340 of the Government Code,
there is hereby appropriated from the General Fund in the State
Treasury, for the purposes of this division, an amount that will
equal the total of the following:
   (a) The sum annually necessary to pay the principal of, and
interest on, bonds issued and sold pursuant to this division, as the
principal and interest become due and payable.
   (b) The sum that is necessary to carry out the provisions of
Section 79789, appropriated without regard to fiscal years.
   79787.  The board may request the Pooled Money Investment Board to
make a loan from the Pooled Money Investment Account in accordance
with Section 16312 of the Government Code for the purpose of carrying
out this division. The amount of the request shall not exceed the
amount of the unsold bonds that the committee has, by resolution,
authorized to be sold for the purpose of carrying out this division.
The board shall execute those documents required by the Pooled Money
Investment Board to obtain and repay the loan. Any amounts loaned
shall be deposited in the fund to be allocated in accordance with
this division.
   79788.  Notwithstanding any other provision of this division, or
of the State General Obligation Bond Law, if the Treasurer sells
bonds that include a bond counsel opinion to the effect that the
interest on the bonds is excluded from gross income for federal tax
purposes under designated conditions, the Treasurer may maintain
separate accounts for the bond proceeds invested and for the
investment earnings on those proceeds, and may use or direct the use
of those proceeds or earnings to pay any rebate, penalty, or other
payment required under federal law or take any other action with
respect to the investment and use of those bond proceeds, as may be
required or desirable under federal law in order to maintain the
tax-exempt status of those bonds and to obtain any other advantage
under federal law on behalf of the funds of this state.
   79789.  For the purposes of carrying out this division, the
Director of Finance may authorize the withdrawal from the General
Fund of an amount or amounts not to exceed the amount of the unsold
bonds that have been authorized by the committee to be sold for the
purpose of carrying out this division. Any amounts withdrawn shall be
deposited in the fund. Any money made available under this section
shall be returned to the General Fund, with interest at the rate
earned by the money in the Pooled Money Investment Account, from
proceeds received from the sale of bonds for the purpose of carrying
out this division.
   79790.  All money deposited in the fund that is derived from
premiums and accrued interest on bonds sold pursuant to this division
shall be reserved in the fund and shall be available for transfer to
the General Fund as a credit to expenditures for bond interest.
   79791.  Pursuant to Chapter 4 (commencing with Section 16720) of
Part 3 of Division 4 of Title 2 of the Government Code, the cost of
bond issuance shall be paid out of the bond proceeds. These costs
shall be shared proportionately by each program funded through this
division.
   79792.  The bonds issued and sold pursuant to this division may be
refunded in accordance with Article 6 (commencing with Section
16780) of Chapter 4 of Part 3 of Division 4 of Title 2 of the
Government Code, which is a part of the State General Obligation Bond
Law. Approval by the electors of the state for the issuance of the
bonds under this division shall include approval of the issuance of
any bonds issued to refund any bonds originally issued under this
division or any previously issued refunding bonds.
   79793.  The proceeds from the sale of bonds authorized by this
division are not "proceeds of taxes" as that term is used in Article
XIII B of the California Constitution, and the disbursement of these
proceeds is not subject to the limitations imposed by that article.
  SEC. 2.  (a) (1) Notwithstanding Section 9051 of the Elections Code
or any other provision of law, the Attorney General shall provide
and return to the Secretary of State a ballot title and summary in
10-point type that contains the following title and summary for ____
Bill ____, adopted by the Legislature at the 2009-10 Regular Session:



   "SAFE, CLEAN, RELIABLE DRINKING WATER SUPPLY ACT OF 2010" and in
the same square under those words:
   "Safeguards supplies of safe, clean drinking water to California
homes, farms, and businesses. Expands conservation, cleans up
polluted wells, expands flood prevention and environmental protection
of water sources supplying the State Water Project. Authorizes ten
billion thirty-five million dollars ($10,035,000,000) in general
obligation bonds."


   (2) The language in paragraph (1) shall be the only language
included in the title and summary for ____ Bill ____, adopted by the
Legislature at the 2009-10 Regular Session, and the Attorney General
shall not supplement, subtract from, or revise that language.
   (3) Notwithstanding any other provision of law, including Sections
9050, 9051, 13247, 13262, and 13281 of the Elections Code, the
language in paragraph (1) for the title and summary shall also be the
language included in the ballot label for the condensed statement of
the ballot title, and the Attorney General shall not supplement,
subtract from, or revise that language, except that the Attorney
General may include the fiscal impact summary prepared pursuant to
Section 9087 of the Elections Code and Section 88003 of the
Government Code. The ballot label is the condensed statement of the
ballot title and the financial impact summary.
   (b) Opposite the square, there shall be left spaces in which the
voters may place a cross in the manner required by law to indicate
whether they vote for or against
        the act.
   (c) Where the voting in the election is done by means of voting
machines used pursuant to law in the manner that carries out the
intent of this section, the use of the voting machines and the
expression of the voters' choices by means thereof are in compliance
with this section.
  SEC. 3.  Section 1 of this act shall take effect only upon the
approval by the voters of the Safe, Clean, Reliable Drinking Water
Supply Act of 2010, as set forth in that section.