BILL NUMBER: SBX7 2	CHAPTERED
	BILL TEXT

	CHAPTER  3
	FILED WITH SECRETARY OF STATE  NOVEMBER 9, 2009
	APPROVED BY GOVERNOR  NOVEMBER 9, 2009
	PASSED THE SENATE  NOVEMBER 4, 2009
	PASSED THE ASSEMBLY  NOVEMBER 4, 2009
	AMENDED IN ASSEMBLY  NOVEMBER 4, 2009
	AMENDED IN SENATE  NOVEMBER 2, 2009

INTRODUCED BY   Senator Cogdill
   (Principal coauthor: Senator Hollingsworth)
   (Principal coauthors: Assembly Members Blakeslee and Caballero)
   (Coauthors: Senators Cedillo and Florez)

                        OCTOBER 27, 2009

   An act to add Division 26.7 (commencing with Section 79700) to the
Water Code, relating to a safe drinking water and water supply
reliability 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,
and declaring the urgency thereof, to take effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 2, Cogdill. Safe, Clean, and Reliable Drinking Water Supply Act
of 2010.
   (1) Under existing law, various measures have been approved by the
voters to provide funds for water supply and protection facilities
and programs.
   This bill would enact the Safe, Clean, and Reliable Drinking Water
Supply Act of 2010, which, if approved by the voters, would
authorize the issuance of bonds in the amount of $11,140,000,000
pursuant to the State General Obligation Bond Law to finance a safe
drinking water and water supply reliability program.
   The bill would provide for the submission of the bond act to the
voters at the November 2, 2010, statewide general election.
   (2) This bill would take effect only if SB 1 of the 2009-10 7th
Extraordinary Session is enacted and becomes effective.
   (3) This bill would declare that it is to take effect immediately
as an urgency statute.


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, AND 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, and 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, and
reliable drinking water.
   (c) Providing adequate supplies of clean, safe, and reliable
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) "Commission" means the California Water Commission.
   (e) "Committee" means the Safe, Clean, and Reliable Drinking Water
Supply Finance Committee created by Section 79812.
   (f) "Delta" means the Sacramento-San Joaquin Delta, as defined in
Section 12220.
   (g) "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.
   (h) "Delta counties" means the Counties of Solano, Yolo,
Sacramento, Contra Costa, and San Joaquin.
   (i) "Delta Plan" has the meaning set forth in Section 85059.
   (j) "Department" means the Department of Water Resources.
   (k) "Director" means the Director of Water Resources.
   (l) "Disadvantaged community" has the meaning set forth in
subdivision (a) of Section 79505.5.
   (m) "Economically distressed area" means a municipality with a
population of 20,000 persons or less, a rural county, or a reasonably
isolated and divisible segment of a larger municipality where the
segment of the population is 20,000 persons or less, with an annual
median household income that is less than 85 percent of the statewide
median household income, and with one or more of the following
conditions as determined by the department:
   (1) Financial hardship.
   (2) Unemployment rate at least 2 percent higher than the statewide
average.
   (3) Low population density.
   (n)  "Fund" means the Safe, Clean, and Reliable Drinking Water
Supply Fund of 2010 created by Section 79716.
   (o) "Integrated regional water management plan" has the meaning
set forth in Section 10534.
   (p) "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 Code.
   (q) "Public agency" means a state agency or department, district,
joint powers authority, city, county, city and county, or other
political subdivision of the state.
   (r) "Secretary" means the Secretary of the Natural Resources
Agency.
   (s) "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


   79705.  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.
   79706.  Up to 10 percent of funds allocated for each program
funded by this division may be expended for 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 shall be integrated into the
surface water ambient monitoring program administered by the State
Water Resources Control Board.
   79707.  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 this division other than Chapter 8 (commencing with
Section 79740).
   79708.  (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 and adopt 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 at a location 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.
   79709.  It is the intent of the people that the investment of
public funds pursuant to this division will result in public
benefits.
   79710.  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.
   79711.  Funds provided by this division shall not be expended 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
or for costs for groundwater cleanup pursuant to the requirements of
Chapter 10 (commencing with Section 79770). Funds provided by this
division may be used for environmental enhancements or other public
benefits.
   79712.  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 water agencies that benefit from the design,
construction, operation, or maintenance of those facilities.
   79713.  (a) This division does not diminish, impair, or otherwise
affect in any manner whatsoever any area of origin, watershed of
origin, county of origin, or any other water rights protections,
including, but not limited to, rights to water appropriated prior to
December 19, 1914, provided under the law. This division does not
limit or otherwise affect the application of Article 1.7 (commencing
with Section 1215) of Chapter 1 of Part 2 of Division 2, Sections
10505, 10505.5, 11128, 11460, 11461, 11462, and 11463, and Sections
12200 to 12220, inclusive.
   (b) For the purposes of this division, an area that utilizes water
that has been diverted and conveyed from the Sacramento River
hydrologic region, for use outside the Sacramento River hydrologic
region or the Delta, shall not be deemed to be immediately adjacent
thereto or capable of being conveniently supplied with water
therefrom by virtue or on account of the diversion and conveyance of
that water through facilities that may be constructed for that
purpose after January 1, 2010.
   (c) Nothing in this division supersedes, limits, or otherwise
modifies the applicability of Chapter 10 (commencing with Section
1700) of Part 2 of Division 2, including petitions related to any new
conveyance constructed or operated in accordance with Chapter 2
(commencing with Section 85320) of Part 4 of Division 35.
   (d) Unless otherwise expressly provided, nothing in this division
supersedes, reduces, or otherwise affects existing legal protections,
both procedural and substantive, relating to the state board's
regulation of diversion and use of water, including, but not limited
to, water right priorities, the protection provided to municipal
interests by Sections 106 and 106.5, and changes in water rights.
Nothing in this division expands or otherwise alters the state board'
s existing authority to regulate the diversion and use of water or
the courts' existing concurrent jurisdiction over California water
rights.
   79714.  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.
   79715.  The Legislature may enact legislation necessary to
implement programs funded by this division, except as otherwise
provided in Section 79749.5.
   79716.  The proceeds of bonds issued and sold pursuant to this
division shall be deposited in the Safe, Clean, and Reliable Drinking
Water Supply Fund of 2010, which is hereby created in the State
Treasury.
      CHAPTER 5.  DROUGHT RELIEF


   79720.  The sum of four hundred fifty-five million dollars
($455,000,000) shall be available, upon appropriation by the
Legislature from the fund, for the purposes of this chapter.
   79720.1.  (a) From the funds described in Section 79720, one
hundred ninety million dollars ($190,000,000) shall be available,
upon appropriation by the Legislature from the fund, 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. Eligible projects include all of the following:
   (1) Water conservation and efficiency projects, including
installation of the most water efficient fixtures commercially
available.
   (2) Water recycling and related infrastructure.
   (3) Groundwater cleanup.
   (4) Local and regional conveyance projects that improve water
supplies and public benefits associated with conveyance facilities.
   (5) Other local and regional water supply reliability projects.
   (6) Local and regional surface water storage projects that provide
emergency water supplies and water supply reliability in drought
conditions.
   (b) Projects funded pursuant to this section shall meet both of
the following requirements:
   (1) The project will provide a sustainable water supply that does
not contribute to groundwater overdraft or increase surface water
diversions.
   (2) The project is 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) Not more than 10 percent of the funds provided pursuant to
this section shall be available for planning, investigations,
studies, and monitoring.
   (e) 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-sharing requirement for projects that
directly benefit disadvantaged communities or economically distressed
areas.
   (f) From the funds described in this section, the sum of one
hundred million dollars ($100,000,000) shall be made available for
local and regional water projects, including surface storage
projects, that provide emergency water supplies and water supply
reliability in drought conditions in San Diego County.
   79720.2.  From the funds described in Section 79720, the sum of
ninety million dollars ($90,000,000) shall be available, upon
appropriation by the Legislature from the fund, for grants to
disadvantaged communities and economically distressed areas
experiencing economic impacts from drought for drought relief
projects and programs.
   79720.3.  From the funds described in Section 79720, the sum of
seventy-five million dollars ($75,000,000) shall be 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.
   79720.4.  (a) From the funds described in Section 79720, eighty
million dollars ($80,000,000) shall be available for deposit into the
Safe Drinking Water State Revolving Fund created pursuant to Section
116760.30 of the Health and Safety Code.
   (b) From the funds described in this section, up to eight million
dollars ($8,000,000) shall be made available for grants for projects
within the City of Maywood that design and implement water supply
infrastructure upgrades that provide for safe drinking water.
   79720.6.  From the funds described in Section 79720, the sum of
twenty million dollars ($20,000,000) shall be available for water
quality and public health projects on the New River.
      CHAPTER 6.  WATER SUPPLY RELIABILITY


   79721.  The sum of one billion fifty million dollars
($1,050,000,000) shall be available, upon appropriation by the
Legislature, from the fund to the department for competitive grants
and expenditures 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) For the purposes of awarding a grant under this chapter, the
department shall require a local cost share of not less than 50
percent of the total costs of the project. The department may waive
or reduce the cost-sharing requirement for projects that directly
benefit a disadvantaged community or an economically distressed area.

   (d) Eligible projects are those included in adopted integrated
regional water management plans consistent with Part 2.2 (commencing
with Section 10530) of Division 6, including, but not limited to,
local and regional surface water storage projects.
   (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. For purposes of this subdivision, the Sacramento River
hydrologic region does not include the Delta. For purposes of this
subdivision, the Mountain Counties Overlay is not eligible for funds
from the Sacramento River hydrologic region or the San Joaquin River
hydrologic region. 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: $45,000,000.
   (2) San Francisco Bay: $132,000,000.
   (3) Central Coast: $58,000,000.
   (4) Los Angeles subregion: $198,000,000.
   (5) Santa Ana subregion: $128,000,000.
   (6) San Diego subregion: $87,000,000.
   (7) Sacramento River: $76,000,000.
   (8) San Joaquin River: $64,000,000.
   (9) Tulare/Kern: $70,000,000.
   (10) North/South Lahontan: $51,000,000.
   (11) Colorado River Basin: $47,000,000.
   (12) Mountain Counties Overlay: $44,000,000.
   (13) Interregional: $50,000,000.
   (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 management systems.
   (6) Other projects and activities designed to meet the needs of
disadvantaged communities or economically distressed areas including
technical and grant writing assistance.
   (g) Ten million dollars of the interregional funds shall be
available for a grant to the University of California, Sierra Nevada
Research Institute of the University of California, for the
development and deployment of measurement infrastructure and related
information technology to identify and analyze water supply impacts
of climate change on the Sierra Nevada snow pack and runoff.
   79722.5.  Of the funds provided in Section 79721, not less than 10
percent shall be allocated to disadvantaged communities.
   79723.  (a) The sum of three hundred fifty million dollars
($350,000,000) shall be 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 conveyance projects that support regional and interregional
connectivity and water management. Projects shall be consistent with
an adopted integrated regional water management plan and shall
provide one or more of the following benefits:
   (1) Improvements in regional or interregional water supply and
water supply reliability.
   (2) Mitigation of conditions of groundwater overdraft, saline
water intrusion, water quality degradation, or subsidence.
   (3) Adaptation to the impacts of hydrologic changes.
   (4) Improved water security from drought, natural disasters, or
other events that could interrupt imported water supplies.
   (5) Providing safe drinking water for disadvantaged communities
and economically distressed areas.
   (b) Not more than 10 percent of the funds provided by this section
shall be available for planning, investigations, studies, and
monitoring.
   (c) 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 or economically distressed
areas.
      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.
   79731.  The sum of two billion two hundred fifty million dollars
($2,250,000,000) shall be available, upon appropriation from the
fund, for grants and direct expenditures, as follows:
   (a) (1) Seven hundred fifty million dollars ($750,000,000) for
projects, including grants to Delta counties and cities within the
Delta, that provide public benefits and support Delta sustainability
options, including projects and supporting scientific studies and
assessments that do any of the following:
   (A) 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.
   (B) Assist in preserving economically viable and sustainable
agriculture and other economic activities in the Delta.
   (C) Improve the quality of drinking water derived from the Delta.
   (D) Improve levee and flood control facilities and other vital
infrastructure necessary to protect Delta communities affected by the
implementation of this chapter.
   (E) 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.
   (F) 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.
   (G) Mitigate other impacts of water conveyance and ecosystem
restoration.
   (H) Provide or improve water quality facilities and other
infrastructure.
   (2) Of the funds provided in this subdivision, not less than fifty
million dollars ($50,000,000) shall be available for matching grants
for improvements to wastewater treatment facilities upstream of the
Delta to improve Delta water quality.
   (3) Of the funds provided in this subdivision, up to two hundred
fifty million dollars ($250,000,000) may be expended in the Delta to
provide assistance to local governments and the local agricultural
economy due to loss of productive agricultural lands for habitat and
ecosystem restoration within the Delta.
   (b) One billion five hundred million dollars ($1,500,000,000) 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, consistent with Chapter 10 (commencing with
Section 2800) of Division 3 of the Fish and Game Code. 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.
   (2) Other projects to protect and restore native fish and wildlife
dependent on the Delta ecosystem, including the acquisition of water
rights and the removal or reduction of undesirable invasive 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.
   (5) Scientific studies and assessments that support the projects
authorized under this section.
   (c) Funds provided by this chapter shall be available for
appropriation to, among other entities, the Sacramento-San Joaquin
Delta Conservancy for implementation consistent with the Delta Plan.
   79732.  (a) A project that receives funding pursuant to
subdivision (a) of Section 79731 shall only be eligible for funding
pursuant to other provisions of this division to the extent that the
combined state funding pursuant to this division does not exceed 50
percent of the total project costs.
   (b) The department shall determine what consitututes a project for
the purposes of subdivision (a).
      CHAPTER 8.  STATEWIDE WATER SYSTEM OPERATIONAL IMPROVEMENT


   79740.  (a) Notwithstanding Section 162, the commission may make
the determinations, findings, and recommendations required of it by
this chapter independent of the views of the director. All final
actions by the commission in implementing this chapter shall be taken
by a majority of the members of the commission at a public meeting
noticed and held pursuant to the Bagley-Keene Open Meeting Act
(Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of
Division 3 of Title 2 of the Government Code).
   (b) Notwithstanding Section 13340 of the Government Code, the sum
of three billion dollars ($3,000,000,000) is hereby continuously
appropriated from the fund, without regard to fiscal years, to the
commission 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
to, the commission pursuant to this chapter shall be available and
expended only for the purposes provided in this chapter, and shall
not be subject to appropriation or transfer by the Legislature or the
Governor for any other purpose.
   (c) Projects shall be selected by the commission 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.
   (d) Any project constructed with funds provided by this chapter
shall be subject to Section 11590.
   79741.  Projects for which the public benefits are eligible for
funding under this chapter consist of only the following:
   (a) Surface storage projects identified in the CALFED Bay-Delta
Program Record of Decision, dated August 28, 2000, except for
projects prohibited by Chapter 1.4 (commencing with Section 5093.50)
of Division 5 of the Public Resources Code.
   (b) Groundwater storage projects and groundwater contamination
prevention or remediation projects that provide water storage
benefits.
   (c) Conjunctive use and reservoir reoperation projects.
   (d) Local and regional surface storage projects that improve the
operation of water systems in the state and provide public benefits.
   79742.  A project shall not be funded pursuant to this chapter
unless it provides measurable improvements to the Delta ecosystem or
to the tributaries to the Delta.
   79743.  (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.
   (4) Emergency response, including, but not limited to, securing
emergency water supplies and flows for dilution and salinity
repulsion following a natural disaster or act of terrorism.
   (5) Recreational purposes, including, but not limited to, those
recreational pursuits generally associated with the outdoors.
   (b) Funds shall not be expended pursuant to this chapter for the
costs of environmental mitigation measures or compliance obligations
except for those associated with providing the public benefits as
described in Section 79743.
   79744.  In consultation with the Department of Fish and Game, the
State Water Resources Control Board, and the department, the
commission shall develop and adopt, by regulation, methods for
quantification and management of public benefits described in Section
79743 by December 15, 2012. 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.
   79745.  (a) Except as provided in subdivision (c), no funds
allocated pursuant to this chapter may be allocated for a project
before December 15, 2012, and until the commission approves the
project based on the commission's determination that all of the
following have occurred:
   (1) The commission has adopted the regulations specified in
Section 79744 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
that will derive benefits, other than public benefits, as defined in
Section 79743, 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 79744 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 ensure that the public contribution
of funds pursuant to this chapter achieves the public benefits
identified for the project.
   (4) The commission 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 commission has found and determined that the project is
feasible, is consistent with all applicable laws and regulations, and
will advance the long-term objectives of restoring ecological health
and improving water management for beneficial uses of the Delta.
   (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 commission shall submit to the Legislature its findings
for each of the criteria identified 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.
   79746.  (a) The public benefit cost share of a project funded
pursuant to this chapter, other than a project described in
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 79743 that are at least 50 percent of total public benefits
of the project funded under this chapter.
   79747.  (a) A project is not eligible for funding under this
chapter unless, by January 1, 2018, all of the following conditions
are met:
   (1) All feasibility studies are complete and draft environmental
documentation is available for public review.
   (2) The commission makes a finding that the project is feasible,
and will advance the long-term objectives of restoring ecological
health and improving water management for beneficial uses of the
Delta.
   (3) The director receives commitments for not less than 75 percent
of the nonpublic benefit 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 commission for a time period that is equal to the
time period of the delay, and funding under this chapter that has
been dedicated to the project shall be encumbered until the time at
which the litigation is completed or the regulations have been
promulgated.
   79748.  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.
   79749.  (a) The funds allocated for the design, acquisition, and
construction of surface storage projects identified in the CALFED
Bay-Delta Record of Decision, dated August 28, 2000, pursuant to this
chapter may be provided for those purposes to local joint powers
authorities formed by irrigation districts and other local water
districts and local governments within the applicable hydrologic
region to design, acquire, and construct those projects.
   (b) The joint powers authorities described in subdivision (a) may
include in their membership governmental and nongovernmental partners
that are not located within their respective hydrologic regions in
financing the surface storage projects, including, as appropriate,
cost share participation or equity participation. The department
shall be an ex-officio member of each joint powers authority subject
to this section, but the department shall not control the governance,
management, or operation of the surface water storage projects.
   (c) A joint powers authority subject to this section shall own,
govern, manage, and operate a surface water storage project, subject
to the requirement that the ownership, governance, management, and
operation of the surface water storage project shall advance the
purposes set forth in this chapter.
   79749.5.  (a) In approving the Safe, Clean, and Reliable Drinking
Water Supply Act of 2010, the people were informed and hereby declare
that the provisions of this chapter are necessary, integral, and
essential to meeting the single object or work of the Safe, Clean,
and Reliable Drinking Water Supply Act of 2010. As such, any
amendment of the provisions of this chapter by the Legislature
without voter approval would frustrate the scheme and design that
induced voter approval of this act. The people therefore find and
declare that any amendment of the provisions of this chapter by the
Legislature shall require a vote of two-thirds of the membership in
each house of the Legislature and voter approval.
   (b) This section shall not govern or be used as authority for
determining whether the amendment of any other provision of this act
not contained in this chapter would constitute a substantial change
in the scheme and design of this act requiring voter approval.
      CHAPTER 9.  CONSERVATION AND WATERSHED PROTECTION


   79750.  The sum of one billion seven hundred eighty-five million
dollars ($1,785,000,000) shall be 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) The North Coast watersheds.
   (i) The San Francisco Bay watersheds.
   (j) The Central Coast watersheds.
   (k) The South Coast watersheds.
   (l) The Lake Tahoe Basin watershed.
   (m) The Sacramento River watershed, including the Yolo Bypass.
   (n) The 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.
   (t) The watersheds of Marin County.
   (u) The watersheds of Orange County.
   79751.  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 Conservation, the Department of Parks and Recreation,
the Department of Forestry and Fire Protection, or to state
conservancies for expenditures and grants consistent with this
chapter and other applicable laws.
   79752.  (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 appropriated to the Natural Resources Agency and
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.
   79754.  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.
   79755.  (a) Of the funds provided in Section 79750, not less than
two hundred fifty million dollars ($250,000,000) shall be available
to the State Coastal Conservancy for projects within coastal counties
and coastal watersheds. Of this amount, not less than forty million
dollars ($40,000,000) shall be available for grants in San Diego
County, including not less than twenty million dollars ($20,000,000)
in grants to the San Diego River Conservancy, not less than forty
million dollars ($40,000,000) shall be available for the Santa Ana
River Parkway, and not less than twenty million dollars ($20,000,000)
shall be available for grants for protection and restoration of the
Bolsa Chica wetlands and adjacent uplands and for associated visitor
and interpretive natural history or archeological facilities.
   (b) 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 expenditures 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), if the
acquisition of water rights by the Wildlife Conservation Board is
consistent with that federal act. All costs associated with the
acquisition of water rights by the Wildlife Conservation Board for
the purposes set forth under this section shall be paid out of the
funds designated for the Wildlife Conservation Board.
   (c) Of the funds provided in Section 79750, not less than two
hundred fifteen million dollars ($215,000,000) shall be available to
the Wildlife Conservation Board for direct expenditures or grants for
the protection or restoration of watershed lands or rivers and
streams that support species listed as threatened or endangered under
state or federal law, consistent with the requirements of programs
identified in Division 2 (commencing with Section 700) of the Fish
and Game Code, and requirements to implement or develop a natural
community conservation plan pursuant to Chapter 10 (commencing with
Section 2800) of Division 3 of the Fish and Game Code. Of the funds
provided in this section, the sum of twenty-five million dollars
($25,000,000) shall be available to the San Joaquin River Conservancy
for river parkway projects. Of the funds provided in this
subdivision, not less than twenty million dollars ($20,000,000) shall
be available for watershed protection projects that reduce the
fragmentation of habitats by promoting the linkage of existing public
lands in Ventura County. In order to ensure programmatic consistency
with ongoing state conservancy programs, any project financed
pursuant to this paragraph within the jurisdiction of any
conservancy, shall be upon application of, and by grant to, that
respective conservancy. The conservancy may apply on behalf of a
local agency, and in that case, the board may make the grant award
directly to that local agency.
   (d) Of the funds provided in Section 79750, seventy-five million
dollars ($75,000,000) shall be available to the San Gabriel and Lower
Los Angeles Rivers and Mountains Conservancy for the purposes
described in subdivision (d) of Section 79752.
   (e) Of the funds provided in Section 79750, seventy-five million
dollars ($75,000,000) shall be available to the Santa Monica
Mountains Conservancy for implementation of watershed protection
activities throughout the watershed of the upper Los Angeles River.
   (f) Of the funds provided in Section 79750, twenty million dollars
($20,000,000) shall be available to the Baldwin Hills Conservancy.
   (g) Of the funds provided in Section 79750, twenty-five million
dollars ($25,000,000) shall be available for Santa Monica Bay
watershed projects pursuant to Division 23 (commencing with Section
33000) of the Public Resources Code.
   (h) Of the funds provided in Section 79750, fifty million dollars
($50,000,000) shall be available to the State Coastal Conservancy for
coastal salmonid restoration projects.
   (i) Of the funds provided in Section 79750, one hundred million
dollars ($100,000,000) shall be available to the Lake Tahoe
Conservancy for the Lake Tahoe Environmental Improvement Program as
described in subdivision (c) of Section 79752.
   (j) Of the funds provided in Section 79750, twenty million dollars
($20,000,000) shall be available to the Department of Conservation
for the California Farmland Conservancy Program Act (Division 10.2
(commencing with Section 10200) of the Public Resources Code). Up to
five million dollars ($5,000,000) may be used for the Department of
Conservation Watershed Coordinator Grant Program.
   (k) Of the funds provided in Section 79750, fifty million dollars
($50,000,000) shall be available to the secretary for projects in
accordance with the California River Parkways Act of 2004 (Chapter
3.8 (commencing with Section 5750) of Division 5 of the Public
Resources Code). Up to twenty million dollars ($20,000,000) may be
transferred to the department for the Urban Streams Restoration
Program pursuant to Section 7048 of the Water Code.
   (l) Of the funds provided in Section 79750, not less than
seventy-five million dollars ($75,000,000) shall be available to the
Sierra Nevada Conservancy for grants, loans, direct expenditures, and
other purposes and projects consistent with the mission and laws
governing the conservancy, including, but not limited to, physical
projects, projects for the provision of public access, educational
and interpretive activities, projects to improve community
sustainability and institutional infrastructure, planning, including
collaborative public processes, monitoring, and research activities.
   (m) Of the funds provided in Section 79750, one hundred million
dollars ($100,000,000) shall be available for Salton Sea restoration
pursuant to subdivision (b) of Section 79752.
   (n) Of the funds provided in Section 79750, ten million dollars
($10,000,000) shall be available to the Natural Resources Agency for
planning for natural resources and watershed protections to address
climate change impacts and adaptation.
   (o) Of the funds provided in Section 79750, thirty million dollars
($30,000,000) shall be available to the Department of Parks and
Recreation for grants for watershed education facilities. Of this
amount, twenty million dollars ($20,000,000) shall be available for
capital improvements to watershed education centers that serve an
urban area with a population of over one million.
   (p) Of the funds provided in Section 79750, ten million dollars
($10,000,000) shall be deposited in the California Waterfowl Habitat
Preservation Account for the purposes of implementing the California
Waterfowl Habitat Program described in Article 7 (commencing with
Section 3460) of Chapter 2 of Part 1 of Division 4 of the Fish and
Game Code, the California Landowner Incentive Program, and the
Permanent Wetland Easement Program.
   79756.  (a) One hundred million dollars ($100,000,000) of the
funds provided pursuant to Section 79750 shall be allocated to the
Department of Forestry and Fire Protection for direct expenditures or
grants for fuel treatment and forest restoration projects to protect
watersheds tributary to dams or reservoirs from the adverse impacts
of fire and erosion, to promote forest health in those watersheds, to
protect life and property, to provide for climate change adaptation,
and reduce total wildfire costs and losses. Funds shall be available
in accordance with the following requirements:
   (1) Sixty-seven million dollars ($67,000,000) shall be available
to the Department of Forestry and Fire Protection to provide
technical assistance for project development and implementation and
to fund grants to public agencies and nonprofit organizations for the
purpose of fuel treatment projects that will reduce wildfire risks,
protect watersheds tributary to water storage facilities, and promote
watershed health.
   (2) Twenty-five million dollars ($25,000,000) shall be available
to the Department of Forestry and Fire Protection to provide
technical assistance for project development and implementation, and
for grants and loans for fuel treatment and reforestation projects to
eligible landowners as defined in subdivision (b) of Section 4793 of
the Public Resources Code and consistent with the provisions of the
California Forest Improvement Act of 1978.
   (3) The sum of eight million dollars ($8,000,000) shall be
available to do all of the following:
   (A) Reimburse incremental costs to the Department of Forestry and
Fire Protection resulting from implementation of fuel reduction
projects consistent with the provisions of the Vegetation Management
Program established under Article 2 (commencing with Section 4475) of
Chapter 7 of Part 2 of Division 4 of the Public Resources Code.
These projects shall include three or more pilot projects to utilize
the fuels removed for energy production or other wood product uses.
   (B) Reimburse costs of conservation camp crews used to conduct
fuel reduction activities, and costs to the Department of Forestry
and Fire Protection for conducting prefire management projects
consistent with the 1996 California Fire Plan or its successor plan.
   (b) Funding criteria and projects shall demonstrate the linkage
between the project and the protection of watershed health,
protection of watershed storage capacity, maintenance or enhancement
of forest health, protection of life and property, and greenhouse gas
reduction.
   79757.  Of the funds provided in Section 79750, not more than two
hundred fifty million dollars ($250,000,000) shall be available for
dam removal and related measures in the Klamath River watershed if
the secretary finds that all of the following conditions have been
met:
   (a) The State of California, the State of Oregon, the United
States, and PacifiCorp have executed a dam removal agreement.
   (b) The State of California, the State of Oregon, and the United
States have made the determinations required under the agreement to
effect dam removal.
   (c) Ratepayer funds required by the agreement have been authorized
and will be timely provided.
   (d) All other conditions required in the agreement have been met.
   79758.  Of the funds provided in Section 79750, not less than
twenty million dollars ($20,000,000) shall be allocated to Siskiyou
County for the purpose of economic development as defined in Section
13997.2 of the Government Code.
   79759.  Of the funds provided in Section 79750, the sum of fifty
million dollars ($50,000,000) shall be available, upon appropriation
by the Legislature from the fund, to the California State University
for the purposes of funding agricultural water supply, water use,
efficiency, water quality, and related research and education efforts
in accordance with the California State University Water Resources
and Policy Initiatives.
   79759.5.  Of the funds provided in Section 79750, the sum of fifty
million dollars ($50,000,000) shall be available to the State
Coastal Conservancy for projects that meet the requirements of the
California Ocean Protection Act (Division 26.5 (commencing with
Section 35500) of the Public Resources Code).
   79760.  Of the funds provided in Section 79750, sixty million
dollars ($60,000,000) shall be available to the Natural Resources
Agency for projects authorized under Section 3406 (b) (10) of the
Central Valley Project Improvement Act that improve salmonid fish
passage in the Sacramento River watershed.
   79760.5.  Of the funds provided in Section 79750, fifty million
dollars ($50,000,000) shall be available, upon appropriation by the
Legislature from the fund, to the Wildlife Conservation Board to
capitalize an advanced public infrastructure revolving fund
mitigation program, to be established by statute, designed to improve
the environmental effectiveness and efficiency of infrastructure
mitigation. These funds shall not be used to subsidize or decrease
the mitigation obligations of any party.
   79761.  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


   79770.  (a) The sum of one billion dollars ($1,000,000,000) shall
be 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 will serve an economically disadvantaged community
or an economically distressed area.
   (4) 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 available for
projects that meet the requirements 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 Comprehensive Environmental
Response, Compensation, and Liability Act of 1980 (42 U.S.C. Sec.
9601 et seq.).
   (e) Of the amount made available by this section, one hundred
million dollars ($100,000,000) shall be available to the State
Department of Public Health for grants and direct expenditures to
finance emergency and urgent actions in accordance with this section
on behalf of disadvantaged communities and economically distressed
areas to ensure that safe drinking water supplies are available to
all Californians.
   (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.
      CHAPTER 11.  WATER RECYCLING PROGRAM


   79780.   The sum of one billion dollars ($1,000,000,000) shall be
available, upon appropriation by the Legislature from the fund, for
grants and loans for water recycling and advanced treatment
technology projects, including all of 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.
   79781.  Of the funds made available in Section 79780, not less
than fifty million dollars ($50,000,000) shall be available for
projects that are designed to help restore lost water supply
reliability in areas with widespread groundwater contamination in
locations that contain sites that are listed 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. Section 9601 et seq.) and for
which federal funds have been allocated pursuant to Public Law
106-554.
   79782.  For projects funded pursuant to the funds made available
pursuant to Section 79780, at least a 50-percent local cost share
shall be required. That cost share may be suspended or reduced for
disadvantaged communities and economically distressed areas.
   79783.  Projects funded pursuant to the funds made available
pursuant to Section 79780 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.
   79784.  (a) (1) The sum of two hundred fifty million dollars
($250,000,000) shall be available, upon appropriation by the
Legislature from the fund, for direct expenditures, grants, and loans
for water conservation and water use efficiency plans, projects, and
programs, including any of the following:
   (A) Urban water conservation plans, projects, and programs,
including regional projects and programs, implemented to achieve
urban water use targets pursuant to Chapter 3 (commencing with
Section 10608.16) of Part 2.55 of Division 6. Priority for funding
shall be given to programs that do the following:
   (i) Assist water suppliers and regions to implement conservation
programs and measures that are not locally cost-effective.
   (ii) Support water supplier and regional efforts to implement
programs targeted to enhance water use efficiency for commercial,
industrial, and institutional water users.
   (iii) Assist water suppliers and regions with programs and
measures targeted toward realizing the conservation benefits of
implementation of the provisions of the state landscape model
ordinance.
   (B) Agricultural water use efficiency projects and programs
pursuant to Part 2.8 (commencing with Section 10800) of Division 6.
   (C) Agricultural water management plans developed pursuant to Part
2.8 (commencing with Section 10800) of Division 6.
   (2) The department shall award grants or loans under this chapter
in a competitive process that considers, as primary factors, the
local and statewide conservation and water use efficiency benefits of
the measures proposed for grants.
   (b) Section 1011 applies to all conservation measures that an
agricultural water supplier or an urban water supplier implements
with funding under this chapter. This subdivision does not limit the
application of Section 1011 to any other measures or projects
implemented by a water supplier.
      CHAPTER 12.  FISCAL PROVISIONS


   79810.  (a) Bonds in the total amount of eleven billion one
hundred forty million dollars ($11,140,000,000), not including the
amount of any refunding bonds issued in accordance with Section
79822, 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.
   79811.  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.
   79812.  (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, and Reliable
Drinking Water Finance Committee is hereby created. For purposes of
this division, the Safe, Clean, and Reliable Drinking Water 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, the Controller, the Director of Water Resources, and the
Secretary of the Natural Resources Agency. 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.
   79813.  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.
   79814.  "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.
   79815.  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.
   79816.  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 79819, appropriated without regard to fiscal years.
   79817.  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.
   79818.  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.
   79819.  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.
   79820.  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.
   79821.  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.
   79822.  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.
   79823.  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.
   79824.  Of the eleven billion one hundred forty million dollars
($11,140,000,000) in bonds authorized in this division, no more than
five billion five hundred seventy million dollars ($5,570,000,000)
shall be sold by the Treasurer before July 1, 2015.
  SEC. 2.  Section 1 of this act shall be submitted to the voters at
the November 2, 2010, statewide general election in accordance with
provisions of the Government Code and the Elections Code governing
the submission of a statewide measure to the voters.
  SEC. 3.  (a) Section 1 of this act shall take effect only upon the
approval by the voters of the Safe, Clean, and Reliable Drinking
Water Supply Act of 2010, as set forth in that section at the
November 2, 2010, statewide general election.
   (b) (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 for all state ballot pamphlets of the November 2, 2010,
statewide general election that contains the following title and
summary for Senate Bill 2, adopted by the Legislature at the 2009-10
Seventh Extraordinary Session:
   "SAFE, CLEAN, AND RELIABLE DRINKING WATER SUPPLY ACT OF 2010" and
in the same square under those words:

   "To protect water quality and ensure safe, clean drinking water;
meet the water supply needs of California residents, farms,
businesses, expand water conservation and recycling; restore fish and
wildlife habitat; reduce polluted runoff that contaminates rivers,
streams, beaches, and bays; and protect the safety of water supplies
threatened by earthquakes and other natural disasters; the State of
California shall issue bonds totaling eleven billion one hundred
forty million dollars ($11,140,000,000) paid from existing state
funds subject to independent, annual audits, and citizen oversight."

   (2) The language in paragraph (1) shall be the only language
included in the title and summary for Senate Bill 2, adopted by the
Legislature at the 2009-10 Seventh Extraordinary 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.
   (c) 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.
   (d) 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. 4.  This act shall take effect only if Senate Bill 1 of the
2009-10 Seventh Extraordinary Session is enacted and becomes
effective.
  SEC. 5.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order to fund a safe, clean, and reliable water supply at the
earliest possible date, it is necessary that this act take effect
immediately.