BILL NUMBER: SBX7 7	AMENDED
	BILL TEXT

	AMENDED IN SENATE  NOVEMBER 2, 2009
	AMENDED IN SENATE  OCTOBER 29, 2009

INTRODUCED BY   Senator Steinberg
   (Principal coauthors: Assembly Members Feuer and Huffman)

                        OCTOBER 28, 2009

    An act to amend and repeal Section 10631.5 of, to add
Part 2.55 (commencing with Section 10608) to Division 6 of, and to
repeal and add Part 2.8 (commencing with Section 10800) of Division 6
of, the Water Code, relating to water.   An act to
amend and repeal Section 10631.5 of, to add Part 2.55 (commencing
with Section 10608) to Division 6 of, and to repeal and add Part 2.8
(commencing with Section 10800) of Division 6 of, the Water Code,
relating to water. 



	LEGISLATIVE COUNSEL'S DIGEST


   SB 7, as amended, Steinberg. Water conservation.
   (1) Existing law requires the Department of Water Resources to
convene an independent technical panel to provide information to the
department and the Legislature on new demand management measures,
technologies, and approaches. "Demand management measures" means
those water conservation measures, programs, and incentives that
prevent the waste of water and promote the reasonable and efficient
use and reuse of available supplies.
   This bill would require the state to achieve a 20% reduction in
urban per capita water use in California by December 31, 2020. The
state would be required to make incremental progress towards this
goal by reducing per capita water use by at least 10% on or before
December 31, 2015. The bill would require each urban retail water
supplier to develop urban water use targets and an interim urban
water use target, in accordance with specified requirements. The bill
would require agricultural water suppliers to implement efficient
water management practices. The bill would require the department, in
consultation with other state agencies, to develop a single
standardized water use reporting form. The bill, with certain
exceptions, would provide that urban retail water suppliers, on and
after July 1, 2016, and agricultural water suppliers, on and after
July 1, 2013, are not eligible for state water grants or loans unless
they comply with the water conservation requirements established by
the bill. The bill would repeal, on July 1, 2016, an existing
requirement that conditions eligibility for certain water management
grants or loans to an urban water supplier on the implementation of
certain water demand management measures.
   (2) Existing law, until January 1, 1993, and thereafter only as
specified, requires certain agricultural water suppliers to prepare
and adopt water management plans.
   This bill would revise existing law relating to agricultural water
management planning to require agricultural water suppliers to
prepare and adopt agricultural water management plans with specified
components on or before December 31, 2012, and update those plans on
or before December 31, 2015, and on or before December 31 every 5
years thereafter. An agricultural water supplier that becomes an
agricultural water supplier after December 31, 2012, would be
required to prepare and adopt an agricultural water management plan
within one year after becoming an agricultural water supplier. The
agricultural water supplier would be required to notify each city or
county within which the supplier provides water supplies with regard
to the preparation or review of the plan. The bill would require the
agricultural water supplier to submit copies of the plan to the
department and other specified entities. The bill would provide that
an agricultural water supplier is not eligible for state water grants
or loans unless the supplier complies with the water management
planning requirements established by the bill.
   (3) The bill would take effect only if SB 1, SB 5, and SB 7 of the
2009-10 Seventh Extraordinary Session of the Legislature are enacted
and become effective.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

   SECTION 1.    Part 2.55 (commencing with Section
10608) is added to Division 6 of the   Water Code  
, to read:  

      PART 2.55.  SUSTAINABLE WATER USE AND DEMAND REDUCTION


      CHAPTER 1.  GENERAL DECLARATIONS AND POLICY


   10608.  The Legislature finds and declares all of the following:
   (a) Water is a public resource that the California Constitution
protects against waste and unreasonable use.
   (b) Growing population, climate change, and the need to protect
and grow California's economy while protecting and restoring our fish
and wildlife habitats make it essential that the state manage its
water resources as efficiently as possible.
   (c) Diverse regional water supply portfolios will increase water
supply reliability and reduce dependence on the Delta.
   (d) Reduced water use through conservation provides significant
energy and environmental benefits, and can help protect water
quality, improve streamflows, and reduce greenhouse gas emissions.
   (e) The success of state and local water conservation programs to
increase efficiency of water use is best determined on the basis of
measurable outcomes related to water use or efficiency.
   (f) Improvements in technology and management practices offer the
potential for increasing water efficiency in California over time,
providing an essential water management tool to meet the need for
water for urban, agricultural, and environmental uses.
   (g) The Governor has called for a 20 percent per capita reduction
in urban water use statewide by 2020.
   (h) The factors used to formulate water use efficiency targets can
vary significantly from location to location based on factors
including weather, patterns of urban and suburban development, and
past efforts to enhance water use efficiency.
   (i) Per capita water use is a valid measure of a water provider's
efforts to reduce urban water use within its service area. However,
per capita water use is less useful for measuring relative water use
efficiency between different water providers. Differences in weather,
historical patterns of urban and suburban development, and density
of housing in a particular location need to be considered when
assessing per capita water use as a measure of efficiency.
   10608.4.  It is the intent of the Legislature, by the enactment of
this part, to do all of the following:
   (a) Require all water suppliers to increase the efficiency of use
of this essential resource.
   (b) Establish a framework to meet the state targets for urban
water conservation identified in this part and called for by the
Governor.
   (c) Measure increased efficiency of urban water use on a per
capita basis.
   (d) Establish a method or methods for urban retail water suppliers
to determine targets for achieving increased water use efficiency by
the year 2020, in accordance with the Governor's goal of a
20-percent reduction.
   (e) Establish consistent water use efficiency planning and
implementation standards for urban water suppliers and agricultural
water suppliers.
   (f) Promote urban water conservation standards that are consistent
with the California Urban Water Conservation Council's adopted best
management practices and the requirements for demand management in
Section 10631.
   (g) Establish standards that recognize and provide credit to water
suppliers that made substantial capital investments in urban water
conservation since the drought of the early 1990s.
   (h) Recognize and account for the investment of urban retail water
suppliers in providing recycled water for beneficial uses.
   (i) Require implementation of specified efficient water management
practices for agricultural water suppliers.
   (j) Support the economic productivity of California's
agricultural, commercial, and industrial sectors.
   (k) Advance regional water resources management.
   10608.8.  (a) (1) Water use efficiency measures adopted and
implemented pursuant to this part or Part 2.8 (commencing with
Section 10800) are water conservation measures subject to the
protections provided under Section 1011.
   (2) Because an urban agency is not required to meet its urban
water use target until 2020 pursuant to subdivision (b) of Section
10608.24, an urban retail water supplier's failure to meet those
targets shall not establish a violation of law for purposes of any
state administrative or judicial proceeding prior to January 1, 2021.
Nothing in this paragraph limits the use of data reported to the
department or the board in litigation or an administrative
proceeding. This paragraph shall become inoperative on January 1,
2021.
   (3) To the extent feasible, the department and the board shall
provide for the use of water conservation reports required under this
part to meet the requirements of Section 1011 for water conservation
reporting.
   (b) This part does not limit or otherwise affect the application
of Chapter 3.5 (commencing with Section 11340), Chapter 4 (commencing
with Section 11370), Chapter 4.5 (commencing with Section 11400),
and Chapter 5 (commencing with Section 11500) of Part 1 of Division 3
of Title 2 of the Government Code.
   (c) This part does not require a reduction in the total water used
in the agricultural or urban sectors, because other factors,
including, but not limited to, changes in agricultural economics or
population growth may have greater effects on water use. This part
does not limit the economic productivity of California's
agricultural, commercial, or industrial sectors.
   (d) The requirements of this part do not apply to an agricultural
water supplier that is a party to the Quantification Settlement
Agreement, as defined in subdivision (a) of Section 1 of Chapter 617
of the Statutes of 2002, during the period within which the
Quantification Settlement Agreement remains in effect. After the
expiration of the Quantification Settlement Agreement, to the extent
conservation water projects implemented as part of the Quantification
Settlement Agreement remain in effect, the conserved water created
as part of those projects shall be credited against the obligations
of the agricultural water supplier pursuant to this part.
      CHAPTER 2.  DEFINITIONS


   10608.12.  Unless the context otherwise requires, the following
definitions govern the construction of this part:
   (a) "Agricultural water supplier" means a water supplier, either
publicly or privately owned, providing water to 10,000 or more
irrigated acres, excluding recycled water. "Agricultural water
supplier" includes a supplier or contractor for water, regardless of
the basis of right, that distributes or sells water for ultimate
resale to customers. "Agricultural water supplier" does not include
the department.
   (b) "Base daily per capita water use" means any of the following:
   (1) The urban retail water supplier's estimate of its average
gross water use, reported in gallons per capita per day and
calculated over a continuous 10-year period ending no earlier than
December 31, 2004, and no later than December 31, 2010.
   (2) For an urban retail water supplier that meets at least 10
percent of its 2008 measured retail water demand through recycled
water that is delivered within the service area of an urban retail
water supplier or its urban wholesale water supplier, the urban
retail water supplier may extend the calculation described in
paragraph (1) up to an additional five years to a maximum of a
continuous 15-year period ending no earlier than December 31, 2004,
and no later than December 31, 2010.
   (3) For the purposes of Section 10608.22, the urban retail water
supplier's estimate of its average gross water use, reported in
gallons per capita per day and calculated over a continuous five-year
period ending no earlier than December 31, 2007, and no later than
December 31, 2010.
   (c) "Baseline commercial, industrial, and institutional water use"
means an urban retail water supplier's base daily per capita water
use for commercial, industrial, and institutional users.
   (d) "Commercial water user" means a water user that provides or
distributes a product or service.
   (e) "Compliance daily per capita water use" means the gross water
use during the final year of the reporting period, reported in
gallons per capita per day.
   (f) "Disadvantaged community" means a community with an annual
median household income that is less than 80 percent of the statewide
annual median household income.
   (g) "Gross water use" means the total volume of water, whether
treated or untreated, entering the distribution system of an urban
retail water supplier, excluding all of the following:
   (1) Recycled water that is delivered within the service area of an
urban retail water supplier or its urban wholesale water supplier.
   (2) The net volume of water that the urban retail water supplier
places into long-term storage.
   (3) The volume of water the urban retail water supplier conveys
for use by another urban water supplier.
   (4) The volume of water delivered for agricultural use, except as
otherwise provided in subdivision (f) of Section 10608.24.
   (h) "Industrial water user" means a water user that is primarily a
manufacturer or processor of materials as defined by the North
American Industry Classification System code sectors 31 to 33,
inclusive, or an entity that is a water user primarily engaged in
research and development.
   (i) "Institutional water user" means a water user dedicated to
public service. This type of user includes, among other users, higher
education institutions, schools, courts, churches, hospitals,
government facilities, and nonprofit research institutions.
   (j) "Interim urban water use target" means the midpoint between
the urban retail water supplier's base daily per capita water use and
the urban retail water supplier's urban water use target for 2020.
   (k) "Locally cost effective" means that the present value of the
local benefits of implementing an agricultural efficiency water
management practice is greater than or equal to the present value of
the local cost of implementing that measure.
   (l) "Process water" means water used for producing a product or
product content or water used for research and development,
including, but not limited to, continuous manufacturing processes,
water used for testing and maintaining equipment used in producing a
product or product content, and water used in combined heat and power
facilities used in producing a product or product content. Process
water does not mean incidental water uses not related to the
production of a product or product content, including, but not
limited to, water used for restrooms, landscaping, air conditioning,
heating, kitchens, and laundry.
   (m) "Recycled water" means recycled water, as defined in
subdivision (n) of Section 13050, that is used to offset potable
demand, including recycled water supplied for direct use and indirect
potable reuse, that meets the following requirements, where
applicable:
   (1) For groundwater recharge, including recharge through spreading
basins, water supplies that are all of the following:
   (A) Metered.
   (B) Developed through planned investment by the urban water
supplier or a wastewater treatment agency.
   (C) Treated to a minimum tertiary level.
   (D) Delivered within the service area of an urban retail water
supplier or its urban wholesale water supplier that helps an urban
retail water supplier meet its urban water use target.
   (2) For reservoir augmentation, water supplies that meet the
criteria of paragraph (1) and are conveyed through a distribution
system constructed specifically for recycled water.
   (n) "Regional water resources management" means sources of supply
resulting from watershed-based planning for sustainable local water
reliability or any of the following alternative sources of water:
   (1) The capture and reuse of stormwater or rainwater.
   (2) The use of recycled water.
   (3) The desalination of brackish groundwater.
   (4) The conjunctive use of surface water and groundwater in a
manner that is consistent with the safe yield of the groundwater
basin.
   (o) "Reporting period" means the years for which an urban retail
water supplier reports compliance with the urban water use targets.
   (p) "Urban retail water supplier" means a water supplier, either
publicly or privately owned, that directly provides potable municipal
water to more than 3,000 end users or that supplies more than 3,000
acre-feet of potable water annually at retail for municipal purposes.

   (q) "Urban water use target" means the urban retail water supplier'
s targeted future daily per capita water use.
   (r) "Urban wholesale water supplier," means a water supplier,
either publicly or privately owned, that provides more than 3,000
acre-feet of water annually at wholesale for potable municipal
purposes.
      CHAPTER 3.  URBAN RETAIL WATER SUPPLIERS


   10608.16.  (a) The state shall achieve a 20-percent reduction in
urban per capita water use in California on or before December 31,
2020.
   (b) The state shall make incremental progress towards the state
target specified in subdivision (a) by reducing urban per capita
water use by at least 10 percent on or before December 31, 2015.
   10608.20.  (a) (1) Each urban retail water supplier shall develop
urban water use targets and an interim urban water use target by July
1, 2011. Urban retail water suppliers may elect to determine and
report progress toward achieving these targets on an individual or
regional basis, as provided in subdivision (a) of Section 10608.28,
and may determine the targets on a fiscal year or calendar year
basis.
   (2) It is the intent of the Legislature that the urban water use
targets described in subdivision (a) cumulatively result in a
20-percent reduction from the baseline daily per capita water use by
December 31, 2020.
   (b) An urban retail water supplier shall adopt one of the
following methods for determining its urban water use target pursuant
to subdivision (a):
   (1) Eighty percent of the urban retail water supplier's baseline
per capita daily water use.
   (2) The per capita daily water use that is estimated using the sum
of the following performance standards:
   (A) For indoor residential water use, 55 gallons per capita daily
water use as a provisional standard. Upon completion of the
department's 2016 report to the Legislature pursuant to Section
10608.42, this standard may be adjusted by the Legislature by
statute.
   (B) For landscape irrigated through dedicated or residential
meters or connections, water efficiency equivalent to the standards
of the Model Water Efficient Landscape Ordinance set forth in Chapter
2.7 (commencing with Section 490) of Division 2 of Title 23 of the
California Code of Regulations, as in effect the later of the year of
the landscape's installation or 1992. An urban retail water supplier
using the approach specified in this subparagraph shall use
satellite imagery, site visits, or other best available technology to
develop an accurate estimate of landscaped areas.
   (C) For commercial, industrial, and institutional uses, a
10-percent reduction in water use from the baseline commercial,
industrial, and institutional water use by 2020.
   (3) Ninety-five percent of the applicable state hydrologic region
target, as set forth in the state's draft 20x2020 Water Conservation
Plan (dated April 30, 2009). If the service area of an urban water
supplier includes more than one hydrologic region, the supplier shall
apportion its service area to each region based on population or
area.
   (4) A method that shall be identified and developed by the
department, through a public process, and reported to the Legislature
no later than December 31, 2010. The method developed by the
department shall identify per capita targets that cumulatively result
in a statewide 20 percent reduction in urban daily per capita water
use by December 31, 2020. In developing urban daily per capita water
use targets, the department shall do all of the following:
   (A) Consider climatic differences within the state.
   (B) Consider population density differences within the state.
   (C) Provide flexibility to communities and regions in meeting the
targets.
   (D) Consider different levels of per capita water use according to
plant water needs in different regions.
   (E) Consider different levels of commercial, industrial, and
institutional water use in different regions of the state.
   (F) Avoid placing an undue hardship on communities that have
implemented conservation measures or taken actions to keep per capita
water use low.
   (c) The department shall update the method described in paragraph
(4) of subdivision (b) and report to the Legislature by December 31,
2014. An urban retail water supplier that adopted the method
described in paragraph (4) of subdivision (b) may adopt a new urban
daily per capita water use target pursuant to this updated method.
   (d) An urban retail water supplier shall include in its urban
water management plan required pursuant to Part 2.6 (commencing with
Section 10610) due in 2010 the baseline daily per capita water use,
urban water use target, interim urban water use target, and
compliance daily per capita water use, along with the bases for
determining those estimates, including references to supporting data.

   (e) When calculating per capita values for the purposes of this
chapter, an urban retail water supplier shall determine population
using federal, state, and local population reports and projections.
   (f) An urban retail water supplier may update its 2020 urban water
use target in its 2015 urban water management plan required pursuant
to Part 2.6 (commencing with Section 10610).
   (g) (1) The department, through a public process and in
consultation with the California Urban Water Conservation Council,
shall develop technical methodologies and criteria for the consistent
implementation of this part, including, but not limited to, both of
the following:
   (A) Methodologies for calculating base daily per capita water use,
baseline commercial, industrial, and institutional water use,
compliance daily per capita water use, gross water use, service area
population, indoor residential water use, and landscaped area water
use.
   (B) Criteria for adjustments pursuant to subdivisions (d) and (e)
of Section 10608.24.
   (2) The department shall post the methodologies and criteria
developed pursuant to this subdivision on its Internet Web site, and
make written copies available, by October 1, 2010. An urban retail
water supplier shall use the methods developed by the department in
compliance with this part.
   (h) (1) The department shall adopt regulations for implementation
of the provisions relating to process water in accordance with
subdivision (l) of Section 10608.12, subdivision (e) of Section
10608.24, and subdivision (d) of Section 10608.26.
   (2) The initial adoption of a regulation authorized by this
subdivision is deemed to address an emergency, for purposes of
Sections 11346.1 and 11349.6 of the Government Code, and the
department is hereby exempted for that purpose from the requirements
of subdivision (b) of Section 11346.1 of the Government Code. After
the initial adoption of an emergency regulation pursuant to this
subdivision, the department shall not request approval from the
Office of Administrative Law to readopt the regulation as an
emergency regulation pursuant to Section 11346.1 of the Government
Code.
   (i) An urban retail water supplier shall be granted an extension
to July 1, 2011, for adoption of an urban water management plan
pursuant to Part 2.6 (commencing with Section 10610) due in 2010 to
allow use of technical methodologies developed by the department
pursuant to paragraph (4) of subdivision (b) and subdivision (g). An
urban retail water supplier that adopts an urban water management
plan due in 2010 that does not use the methodologies developed by the
department pursuant to subdivision (g) shall amend the plan by July
1, 2011, to comply with this part.
   10608.22.  Notwithstanding the method adopted by an urban retail
water supplier pursuant to Section 10608.20, an urban retail water
supplier's per capita daily water use reduction shall be no less than
5 percent of base daily per capita water use as defined in paragraph
(3) of subdivision (b) of Section 10608.12. This section does not
apply to an urban retail water supplier with a base daily per capita
water use at or below 100 gallons per capita per day.
   10608.24.  (a) Each urban retail water supplier shall meet its
interim urban water use target by December 31, 2015.
   (b) Each urban retail water supplier shall meet its urban water
use target by December 31, 2020.
   (c) An urban retail water supplier's compliance daily per capita
water use shall be the measure of progress toward achievement of its
urban water use target.
   (d) (1) When determining compliance daily per capita water use, an
urban retail water supplier may consider the following factors:
   (A) Differences in evapotranspiration and rainfall in the baseline
period compared to the compliance reporting period.
   (B) Substantial changes to commercial or industrial water use
resulting from increased business output and economic development
that have occurred during the reporting period.
   (C) Substantial changes to institutional water use resulting from
fire suppression services or other extraordinary events, or from new
or expanded operations, that have occurred during the reporting
period.
   (2) If the urban retail water supplier elects to adjust its
estimate of compliance daily per capita water use due to one or more
of the factors described in paragraph (1), it shall provide the basis
for, and data supporting, the adjustment in the report required by
Section 10608.40.
   (e) When developing the urban water use target pursuant to Section
10608.20, an urban retail water supplier that has a substantial
percentage of industrial water use in its service area, may exclude
process water from the calculation of gross water use to avoid a
disproportionate burden on another customer sector.
   (f) (1) An urban retail water supplier that includes agricultural
water use in an urban water management plan pursuant to Part 2.6
(commencing with Section 10610) may include the agricultural water
use in determining gross water use. An urban retail water supplier
that includes agricultural water use in determining gross water use
and develops its urban water use target pursuant to paragraph (2) of
subdivision (b) of Section 10608.20 shall use a water efficient
standard for agricultural irrigation of 100 percent of reference
evapotranspiration multiplied by the crop coefficient for irrigated
acres.
   (2) An urban retail water supplier, that is also an agricultural
water supplier, is not subject to the requirements of Chapter 4
(commencing with Section 10608.48), if the agricultural water use is
incorporated into its urban water use target pursuant to paragraph
(1).
   10608.26.  (a) In complying with this part, an urban retail water
supplier shall conduct at least one public hearing to accomplish all
of the following:
                                                          (1) Allow
community input regarding the urban retail water supplier's
implementation plan for complying with this part.
   (2) Consider the economic impacts of the urban retail water
supplier's implementation plan for complying with this part.
   (3) Adopt a method, pursuant to subdivision (b) of Section
10608.20, for determining its urban water use target.
   (b) In complying with this part, an urban retail water supplier
may meet its urban water use target through efficiency improvements
in any combination among its customer sectors. An urban retail water
supplier shall avoid placing a disproportionate burden on any
customer sector.
   (c) For an urban retail water supplier that supplies water to a
United States Department of Defense military installation, the urban
retail water supplier's implementation plan for complying with this
part shall consider the United States Department of Defense military
installation's requirements under federal Executive Order 13423.
   (d) (1) Any ordinance or resolution adopted by an urban retail
water supplier after the effective date of this section shall not
require existing customers as of the effective date of this section,
to undertake changes in product formulation, operations, or equipment
that would reduce process water use, but may provide technical
assistance and financial incentives to those customers to implement
efficiency measures for process water. This section shall not limit
an ordinance or resolution adopted pursuant to a declaration of
drought emergency by an urban retail water supplier.
   (2) This part shall not be construed or enforced so as to
interfere with the requirements of Chapter 4 (commencing with Section
113980) to Chapter 13 (commencing with Section 114380), inclusive,
of Part 7 of Division 104 of the Health and Safety Code, or any
requirement or standard for the protection of public health, public
safety, or worker safety established by federal, state, or local
government or recommended by recognized standard setting
organizations or trade associations.
   10608.28.  (a) An urban retail water supplier may meet its urban
water use target within its retail service area, or through mutual
agreement, by any of the following:
   (1) Through an urban wholesale water supplier.
   (2) Through a regional agency authorized to plan and implement
water conservation, including, but not limited to, an agency
established under the Bay Area Water Supply and Conservation Agency
Act (Division 31 (commencing with Section 81300)).
   (3) Through a regional water management group as defined in
Section 10537.
   (4) By an integrated regional water management funding area.
   (5) By hydrologic region.
   (6) Through other appropriate geographic scales for which
computation methods have been developed by the department.
   (b) A regional water management group, with the written consent of
its member agencies, may undertake any or all planning, reporting,
and implementation functions under this chapter for the member
agencies that consent to those activities. Any data or reports shall
provide information both for the regional water management group and
separately for each consenting urban retail water supplier and urban
wholesale water supplier.
   10608.32.  All costs incurred pursuant to this part by a water
utility regulated by the Public Utilities Commission may be
recoverable in rates subject to review and approval by the Public
Utilities Commission, and may be recorded in a memorandum account and
reviewed for reasonableness by the Public Utilities Commission.
   10608.36.  Urban wholesale water suppliers shall include in the
urban water management plans required pursuant to Part 2.6
(commencing with Section 10610) an assessment of their present and
proposed future measures, programs, and policies to help achieve the
water use reductions required by this part.
   10608.40.  Urban water retail suppliers shall report to the
department on their progress in meeting their urban water use targets
as part of their urban water management plans submitted pursuant to
Section 10631. The data shall be reported using a standardized form
developed pursuant to Section 10608.52.
   10608.42.  The department shall review the 2015 urban water
management plans and report to the Legislature by December 31, 2016,
on progress towards achieving a 20-percent reduction in urban water
use by December 31, 2020. The report shall include recommendations on
changes to water efficiency standards or urban water use targets in
order to achieve the 20-percent reduction and to reflect updated
efficiency information and technology changes.
   10608.43.  The department, in conjunction with the California
Urban Water Conservation Council, by April 1, 2010, shall convene a
representative task force consisting of academic experts, urban
retail water suppliers, environmental organizations, commercial water
users, industrial water users, and institutional water users to
develop alternative best management practices for commercial,
industrial, and institutional users and an assessment of the
potential statewide water use efficiency improvement in the
commercial, industrial, and institutional sectors that would result
from implementation of these best management practices. The
taskforce, in conjunction with the department, shall submit a report
to the Legislature by April 1, 2012, that shall include a review of
multiple sectors within commercial, industrial, and institutional
users and that shall recommend water use efficiency standards for
commercial, industrial, and institutional users among various sectors
of water use. The report shall include, but not be limited to, the
following:
   (a) Appropriate metrics for evaluating commercial, industrial, and
institutional water use.
   (b) Evaluation of water demands for manufacturing processes,
goods, and cooling.
   (c) Evaluation of public infrastructure necessary for delivery of
recycled water to the commercial, industrial, and institutional
sectors.
   (d) Evaluation of institutional and economic barriers to increased
recycled water use within the commercial, industrial, and
institutional sectors.
   (e) Identification of technical feasibility and cost of the best
management practices to achieve more efficient water use statewide in
the commercial, industrial, and institutional sectors that is
consistent with the public interest and reflects past investments in
water use efficiency.
   10608.44.  Each state agency shall reduce water use on facilities
it operates to support urban retail water suppliers in meeting the
target identified in Section 10608.16.
      CHAPTER 4.  AGRICULTURAL WATER SUPPLIERS


   10608.48.  (a) On or before July 31, 2012, an agricultural water
supplier shall implement efficient water management practices
pursuant to subdivisions (b) and (c).
   (b) Agricultural water suppliers shall implement all of the
following critical efficient management practices:
   (1) Measure the volume of water delivered to customers with
sufficient accuracy to comply with subdivision (a) of Section 531.10
and to implement volumetric pricing pursuant to paragraph (2).
   (2) Adopt a pricing structure for water customers based at least
in part on quantity delivered.
   (c) Agricultural water suppliers shall implement additional
efficient management practices, including, but not limited to,
practices to accomplish all of the following, if the measures are
locally cost effective and technically feasible:
   (1) Facilitate alternative land use for lands with exceptionally
high water duties or whose irrigation contributes to significant
problems, including drainage.
   (2) Facilitate use of available recycled water that otherwise
would not be used beneficially, meets all health and safety criteria,
and does not harm crops or soils.
   (3) Facilitate the financing of capital improvements for on-farm
irrigation systems.
   (4) Implement an incentive pricing structure that promotes one or
more of the following goals:
   (A) More efficient water use at the farm level.
   (B) Conjunctive use of groundwater.
   (C) Appropriate increase of groundwater recharge.
   (D) Reduction in problem drainage.
   (E) Improved management of environmental resources.
   (F) Effective management of all water sources throughout the year
by adjusting seasonal pricing structures based on current conditions.

   (5) Expand line or pipe distribution systems, and construct
regulatory reservoirs to increase distribution system flexibility and
capacity, decrease maintenance, and reduce seepage.
   (6) Increase flexibility in water ordering by, and delivery to,
water customers within operational limits.
   (7) Construct and operate supplier spill and tailwater recovery
systems.
   (8) Increase planned conjunctive use of surface water and
groundwater within the supplier service area.
   (9) Automate canal control structures.
   (10) Facilitate or promote customer pump testing and evaluation.
   (11) Designate a water conservation coordinator who will develop
and implement the water management plan and prepare progress reports.

   (12) Provide for the availability of water management services to
water users. These services may include, but are not limited to, all
of the following:
   (A) On-farm irrigation and drainage system evaluations.
   (B) Normal year and real-time irrigation scheduling and crop
evapotranspiration information.
   (C) Surface water, groundwater, and drainage water quantity and
quality data.
   (D) Agricultural water management educational programs and
materials for farmers, staff, and the public.
   (13) Evaluate the policies of agencies that provide the supplier
with water to identify the potential for institutional changes to
allow more flexible water deliveries and storage.
   (14) Evaluate and improve the efficiencies of the supplier's
pumps.
   (d) Agricultural water suppliers shall include in the agricultural
water management plans required pursuant to Part 2.8 (commencing
with Section 10800) a report on which efficient water management
practices have been implemented and are planned to be implemented, an
estimate of the water use efficiency improvements that have occurred
since the last report, and an estimate of the water use efficiency
improvements estimated to occur five and 10 years in the future. If
an agricultural water supplier determines that an efficient water
management practice is not locally cost effective or technically
feasible, the supplier shall submit information documenting that
determination.
   (e) The data shall be reported using a standardized form developed
pursuant to Section 10608.52.
   (f) An agricultural water supplier may meet the requirements of
subdivisions (d) and (e) by submitting to the department a water
conservation plan submitted to the United States Bureau of
Reclamation that meets the requirements described in Section 10828.
   (g) On or before December 31, 2013, December 31, 2016, and
December 31, 2021, the department, in consultation with the board,
shall submit to the Legislature a report on the agricultural
efficient water management practices that have been implemented and
are planned to be implemented and an assessment of the manner in
which the implementation of those efficient water management
practices has affected and will affect agricultural operations,
including estimated water use efficiency improvements, if any.
   (h) The department may update the efficient water management
practices required pursuant to subdivision (c), in consultation with
the Agricultural Water Management Council, the United States Bureau
of Reclamation, and the board. All efficient water management
practices for agricultural water use pursuant to this chapter shall
be adopted or revised by the department only after the department
conducts public hearings to allow participation of the diverse
geographical areas and interests of the state.
   (i) (1) The department shall adopt regulations that provide for a
range of options that agricultural water suppliers may use or
implement to comply with the measurement requirement in paragraph (1)
of subdivision (b).
   (2) The initial adoption of a regulation authorized by this
subdivision is deemed to address an emergency, for purposes of
Sections 11346.1 and 11349.6 of the Government Code, and the
department is hereby exempted for that purpose from the requirements
of subdivision (b) of Section 11346.1 of the Government Code. After
the initial adoption of an emergency regulation pursuant to this
subdivision, the department shall not request approval from the
Office of Administrative Law to readopt the regulation as an
emergency regulation pursuant to Section 11346.1 of the Government
Code.
      CHAPTER 5.  SUSTAINABLE WATER MANAGEMENT


   10608.50.  (a) The department, in consultation with the board,
shall promote implementation of regional water resources management
practices through increased incentives and removal of barriers
consistent with state and federal law. Potential changes may include,
but are not limited to, all of the following:
   (1) Revisions to the requirements for urban and agricultural water
management plans.
   (2) Revisions to the requirements for integrated regional water
management plans.
   (3) Revisions to the eligibility for state water management grants
and loans.
   (4) Revisions to state or local permitting requirements that
increase water supply opportunities, but do not weaken water quality
protection under state and federal law.
   (5) Increased funding for research, feasibility studies, and
project construction.
   (6) Expanding technical and educational support for local land use
and water management agencies.
   (b) No later than January 1, 2011, and updated as part of the
California Water Plan, the department, in consultation with the
board, and with public input, shall propose new statewide targets, or
review and update existing statewide targets, for regional water
resources management practices, including, but not limited to,
recycled water, brackish groundwater desalination, and infiltration
and direct use of urban stormwater runoff.
      CHAPTER 6.  STANDARDIZED DATA COLLECTION


   10608.52.  (a) The department, in consultation with the board, the
California Bay-Delta Authority or its successor agency, the State
Department of Public Health, and the Public Utilities Commission,
shall develop a single standardized water use reporting form to meet
the water use information needs of each agency, including the needs
of urban water suppliers that elect to determine and report progress
toward achieving targets on a regional basis as provided in
subdivision (a) of Section 10608.28.
   (b) At a minimum, the form shall be developed to accommodate
information sufficient to assess an urban water supplier's compliance
with conservation targets pursuant to Section 10608.24 and an
agricultural water supplier's compliance with implementation of
efficient water management practices pursuant to subdivision (a) of
Section 10608.48. The form shall accommodate reporting by urban water
suppliers on an individual or regional basis as provided in
subdivision (a) of Section 10608.28.
      CHAPTER 7.  FUNDING PROVISIONS


   10608.56.  (a) On and after July 1, 2016, an urban retail water
supplier is not eligible for a water grant or loan awarded or
administered by the state unless the supplier complies with this
part.
   (b) On and after July 1, 2013, an agricultural water supplier is
not eligible for a water grant or loan awarded or administered by the
state unless the supplier complies with this part.
   (c) Notwithstanding subdivision (a), the department shall
determine that an urban retail water supplier is eligible for a water
grant or loan even though the supplier has not met the per capita
reductions required pursuant to Section 10608.24, if the urban retail
water supplier has submitted to the department for approval a
schedule, financing plan, and budget, to be included in the grant or
loan agreement, for achieving the per capita reductions. The supplier
may request grant or loan funds to achieve the per capita reductions
to the extent the request is consistent with the eligibility
requirements applicable to the water funds.
   (d) Notwithstanding subdivision (b), the department shall
determine that an agricultural water supplier is eligible for a water
grant or loan even though the supplier is not implementing all of
the efficient water management practices described in Section
10608.48, if the agricultural water supplier has submitted to the
department for approval a schedule, financing plan, and budget, to be
included in the grant or loan agreement, for implementation of the
efficient water management practices. The supplier may request grant
or loan funds to implement the efficient water management practices
to the extent the request is consistent with the eligibility
requirements applicable to the water funds.
   (e) Notwithstanding subdivision (a), the department shall
determine that an urban retail water supplier is eligible for a water
grant or loan even though the supplier has not met the per capita
reductions required pursuant to Section 10608.24, if the urban retail
water supplier has submitted to the department for approval
documentation demonstrating that its entire service area qualifies as
a disadvantaged community.
   (f) The department shall not deny eligibility to an urban retail
water supplier or agricultural water supplier in compliance with the
requirements of this part and Part 2.8 (commencing with Section
10800), that is participating in a multiagency water project, or an
integrated regional water management plan, developed pursuant to
Section 75026 of the Public Resources Code, solely on the basis that
one or more of the agencies participating in the project or plan is
not implementing all of the requirements of this part or Part 2.8
(commencing with Section 10800).
   10608.60.  (a) It is the intent of the Legislature that funds made
available by Section 75026 of the Public Resources Code should be
expended, consistent with Division 43 (commencing with Section 75001)
of the Public Resources Code and upon appropriation by the
Legislature, for grants to implement this part. In the allocation of
funding, it is the intent of the Legislature that the department give
consideration to disadvantaged communities to assist in implementing
the requirements of this part.
   (b) It is the intent of the Legislature that funds made available
by Section 75041 of the Public Resources Code, should be expended,
consistent with Division 43 (commencing with Section 75001) of the
Public Resources Code and upon appropriation by the Legislature, for
direct expenditures to implement this part.
      CHAPTER 8.  QUANTIFYING AGRICULTURAL WATER USE EFFICIENCY


   10608.64.  The department, in consultation with the Agricultural
Water Management Council, academic experts, and other stakeholders,
shall develop a methodology for quantifying the efficiency of
agricultural water use. Alternatives to be assessed shall include,
but not be limited to, determination of efficiency levels based on
crop type or irrigation system distribution uniformity. On or before
December 31, 2011, the department shall report to the Legislature on
a proposed methodology and a plan for implementation. The plan shall
include the estimated implementation costs and the types of data
needed to support the methodology. Nothing in this section authorizes
the department to implement a methodology established pursuant to
this section. 
   SEC. 2.    Section 10631.5 of the   Water
Code   is amended to read: 
   10631.5.  (a) (1) Beginning January 1, 2009, the terms of, and
eligibility for, a water management grant or loan made to an urban
water supplier and awarded or administered by the department, state
board, or California Bay-Delta Authority or its successor agency
shall be conditioned on the implementation of the water demand
management measures described in Section 10631, as determined by the
department pursuant to subdivision (b).
   (2) For the purposes of this section, water management grants and
loans include funding for programs and projects for surface water or
groundwater storage, recycling, desalination, water conservation,
water supply reliability, and water supply augmentation. This section
does not apply to water management projects funded by the 
federal  American Recovery and Reinvestment Act of 2009 (Public
Law 111-5).
   (3) Notwithstanding paragraph (1), the department shall determine
that an urban water supplier is eligible for a water management grant
or loan even though the supplier is not implementing all of the
water demand management measures described in Section 10631, if the
urban water supplier has submitted to the department for approval a
schedule, financing plan, and budget, to be included in the grant or
loan agreement, for implementation of the water demand management
measures. The supplier may request grant or loan funds to implement
the water demand management measures to the extent the request is
consistent with the eligibility requirements applicable to the water
management funds.
   (4) (A) Notwithstanding paragraph (1), the department shall
determine that an urban water supplier is eligible for a water
management grant or loan even though the supplier is not implementing
all of the water demand management measures described in Section
10631, if an urban water supplier submits to the department for
approval documentation demonstrating that a water demand management
measure is not locally cost effective. If the department determines
that the documentation submitted by the urban water supplier fails to
demonstrate that a water demand management measure is not locally
cost effective, the department shall notify the urban water supplier
and the agency administering the grant or loan program within 120
days that the documentation does not satisfy the requirements for an
exemption, and include in that notification a detailed statement to
support the determination.
   (B) For purposes of this paragraph, "not locally cost effective"
means that the present value of the local benefits of implementing a
water demand management measure is less than the present value of the
local costs of implementing that measure.
   (b) (1) The department, in consultation with the state board and
the California Bay-Delta Authority or its successor agency, and after
soliciting public comment regarding eligibility requirements, shall
develop eligibility requirements to implement the requirement of
paragraph (1) of subdivision (a). In establishing these eligibility
requirements, the department shall do both of the following:
   (A) Consider the conservation measures described in the Memorandum
of Understanding Regarding Urban Water Conservation in California,
and alternative conservation approaches that provide equal or greater
water savings.
   (B) Recognize the different legal, technical, fiscal, and
practical roles and responsibilities of wholesale water suppliers and
retail water suppliers.
   (2) (A) For the purposes of this section, the department shall
determine whether an urban water supplier is implementing all of the
water demand management measures described in Section 10631 based on
either, or a combination, of the following:
   (i) Compliance on an individual basis.
   (ii) Compliance on a regional basis. Regional compliance shall
require participation in a regional conservation program consisting
of two or more urban water suppliers that achieves the level of
conservation or water efficiency savings equivalent to the amount of
conservation or savings achieved if each of the participating urban
water suppliers implemented the water demand management measures. The
urban water supplier administering the regional program shall
provide participating urban water suppliers and the department with
data to demonstrate that the regional program
                     is consistent with this clause. The department
shall review the data to determine whether the urban water suppliers
in the regional program are meeting the eligibility requirements.
   (B) The department may require additional information for any
determination pursuant to this section.
   (3) The department shall not deny eligibility to an urban water
supplier in compliance with the requirements of this section that is
participating in a multiagency water project, or an integrated
regional water management plan, developed pursuant to Section 75026
of the Public Resources Code, solely on the basis that one or more of
the agencies participating in the project or plan is not
implementing all of the water demand management measures described in
Section 10631.
   (c) In establishing guidelines pursuant to the specific funding
authorization for any water management grant or loan program subject
to this section, the agency administering the grant or loan program
shall include in the guidelines the eligibility requirements
developed by the department pursuant to subdivision (b).
   (d) Upon receipt of a water management grant or loan application
by an agency administering a grant and loan program subject to this
section, the agency shall request an eligibility determination from
the department with respect to the requirements of this section. The
department shall respond to the request within 60 days of the
request.
   (e) The urban water supplier may submit to the department copies
of its annual reports and other relevant documents to assist the
department in determining whether the urban water supplier is
implementing or scheduling the implementation of water demand
management activities. In addition, for urban water suppliers that
are signatories to the Memorandum of Understanding Regarding Urban
Water Conservation in California and submit biennial reports to the
California Urban Water Conservation Council in accordance with the
memorandum, the department may use these reports to assist in
tracking the implementation of water demand management measures. 

   (f) This section shall remain in effect only until July 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before July 1, 2016, deletes or extends that date. 
   SEC. 3.    Part 2.8 (commencing with Section 10800)
of Division 6 of the   Water Code   is repealed.

   SEC. 4.    Part 2.8 (commencing with Section 10800)
is added to Division 6 of the   Water Code   , to
read:  

      PART 2.8.  AGRICULTURAL WATER MANAGEMENT PLANNING


      CHAPTER 1.  GENERAL DECLARATIONS AND POLICY


   10800.  This part shall be known and may be cited as the
Agricultural Water Management Planning Act.
   10801.  The Legislature finds and declares all of the following:
   (a) The waters of the state are a limited and renewable resource.
   (b) The California Constitution requires that water in the state
be used in a reasonable and beneficial manner.
   (c) Urban water districts are required to adopt water management
plans.
   (d) The conservation of agricultural water supplies is of great
statewide concern.
   (e) There is a great amount of reuse of delivered water, both
inside and outside the water service areas.
   (f) Significant noncrop beneficial uses are associated with
agricultural water use, including streamflows and wildlife habitat.
   (g) Significant opportunities exist in some areas, through
improved irrigation water management, to conserve water or to reduce
the quantity of highly saline or toxic drainage water.
   (h) Changes in water management practices should be carefully
planned and implemented to minimize adverse effects on other
beneficial uses currently being served.
   (i) Agricultural water suppliers that receive water from the
federal Central Valley Project are required by federal law to prepare
and implement water conservation plans.
   (j) Agricultural water users applying for a permit to appropriate
water from the board are required to prepare and implement water
conservation plans.
   10802.  The Legislature finds and declares that all of the
following are the policies of the state:
   (a) The conservation of water shall be pursued actively to protect
both the people of the state and the state's water resources.
   (b) The conservation of agricultural water supplies shall be an
important criterion in public decisions with regard to water.
   (c) Agricultural water suppliers shall be required to prepare
water management plans to achieve conservation of water.
      CHAPTER 2.  DEFINITIONS


   10810.  Unless the context otherwise requires, the definitions set
forth in this chapter govern the construction of this part.
   10811.  "Agricultural water management plan" or "plan" means an
agricultural water management plan prepared pursuant to this part.
   10812.  "Agricultural water supplier" has the same meaning as
defined in Section 10608.12.
   10813.  "Customer" means a purchaser of water from a water
supplier who uses water for agricultural purposes.
   10814.  "Person" means any individual, firm, association,
organization, partnership, business, trust, corporation, company,
public agency, or any agency of that entity.
   10815.  "Public agency" means any city, county, city and county,
special district, or other public entity.
   10816.  "Urban water supplier" has the same meaning as set forth
in Section 10617.
   10817.  "Water conservation" means the efficient management of
water resources for beneficial uses, preventing waste, or
accomplishing additional benefits with the same amount of water.
      CHAPTER 3.  AGRICULTURAL WATER MANAGEMENT PLANS



      Article 1.  General Provisions


   10820.  (a) An agricultural water supplier shall prepare and adopt
an agricultural water management plan in the manner set forth in
this chapter on or before December 31, 2012, and shall update that
plan on December 31, 2015, and on or before December 31 every five
years thereafter.
   (b) Every supplier that becomes an agricultural water supplier
after December 31, 2012, shall prepare and adopt an agricultural
water management plan within one year after the date it has become an
agricultural water supplier.
   (c) A water supplier that indirectly provides water to customers
for agricultural purposes shall not prepare a plan pursuant to this
part without the consent of each agricultural water supplier that
directly provides that water to its customers.
   10821.  (a) An agricultural water supplier required to prepare a
plan pursuant to this part shall notify each city or county within
which the supplier provides water supplies that the agricultural
water supplier will be preparing the plan or reviewing the plan and
considering amendments or changes to the plan. The agricultural water
supplier may consult with, and obtain comments from, each city or
county that receives notice pursuant to this subdivision.
   (b) The amendments to, or changes in, the plan shall be adopted
and submitted in the manner set forth in Article 3 (commencing with
Section 10840).

      Article 2.  Contents of Plans


   10825.  (a) It is the intent of the Legislature in enacting this
part to allow levels of water management planning commensurate with
the numbers of customers served and the volume of water supplied.
   (b) This part does not require the implementation of water
conservation programs or practices that are not locally cost
effective.
   10826.  An agricultural water management plan shall be adopted in
accordance with this chapter. The plan shall do all of the following:

   (a) Describe the agricultural water supplier and the service area,
including all of the following:
   (1) Size of the service area.
   (2) Location of the service area and its water management
facilities.
   (3) Terrain and soils.
   (4) Climate.
   (5) Operating rules and regulations.
   (6) Water delivery measurements or calculations.
   (7) Water rate schedules and billing.
   (8) Water shortage allocation policies.
   (b) Describe the quantity and quality of water resources of the
agricultural water supplier, including all of the following:
   (1) Surface water supply.
   (2) Groundwater supply.
   (3) Other water supplies.
   (4) Source water quality monitoring practices.
   (5) Water uses within the agricultural water supplier's service
area, including all of the following:
   (A) Agricultural.
   (B) Environmental.
   (C) Recreational.
   (D) Municipal and industrial.
   (E) Groundwater recharge.
   (F) Transfers and exchanges.
   (G) Other water uses.
   (6) Drainage from the water supplier's service area.
   (7) Water accounting, including all of the following:
   (A) Quantifying the water supplier's water supplies.
   (B) Tabulating water uses.
   (C) Overall water budget.
   (8) Water supply reliability.
   (c) Include an analysis, based on available information, of the
effect of climate change on future water supplies.
   (d) Describe previous water management activities.
   (e) Include in the plan the water use efficiency information
required pursuant to Section 10608.48.
   10827.  Agricultural water suppliers that are members of the
Agricultural Water Management Council, and that submit water
management plans to that council in accordance with the "Memorandum
of Understanding Regarding Efficient Water Management Practices By
Agricultural Water Suppliers In California," dated January 1, 1999,
may submit the water management plans identifying water demand
management measures currently being implemented, or scheduled for
implementation, to satisfy the requirements of Section 10826.
   10828.  (a) Agricultural water suppliers that are required to
submit water conservation plans to the United States Bureau of
Reclamation pursuant to either the Central Valley Project Improvement
Act (Public Law 102-575) or the Reclamation Reform Act of 1982, or
both, may submit those water conservation plans to satisfy the
requirements of Section 10826, if both of the following apply:
   (1) The agricultural water supplier has adopted and submitted the
water conservation plan to the United States Bureau of Reclamation
within the previous four years.
   (2) The United States Bureau of Reclamation has accepted the water
conservation plan as adequate.
   (b) This part does not require agricultural water suppliers that
are required to submit water conservation plans to the United States
Bureau of Reclamation pursuant to either the Central Valley Project
Improvement Act (Public Law 102-575) or the Reclamation Reform Act of
1982, or both, to prepare and adopt water conservation plans
according to a schedule that is different from that required by the
United States Bureau of Reclamation.
   10829.  An agricultural water supplier may satisfy the
requirements of this part by adopting an urban water management plan
pursuant to Part 2.6 (commencing with Section 10610) or by
participation in area wide, regional, watershed, or basinwide water
management planning if those plans meet or exceed the requirements of
this part.

      Article 3.  Adoption and Implementation of Plans


   10840.  Every agricultural water supplier shall prepare its plan
pursuant to Article 2 (commencing with Section 10825).
   10841.  Prior to adopting a plan, the agricultural water supplier
shall make the proposed plan available for public inspection, and
shall hold a public hearing on the plan. Prior to the hearing, notice
of the time and place of hearing shall be published within the
jurisdiction of the publicly owned agricultural water supplier
pursuant to Section 6066 of the Government Code. A privately owned
agricultural water supplier shall provide an equivalent notice within
its service area and shall provide a reasonably equivalent
opportunity that would otherwise be afforded through a public hearing
process for interested parties to provide input on the plan. After
the hearing, the plan shall be adopted as prepared or as modified
during or after the hearing.
   10842.  An agricultural water supplier shall implement the plan
adopted pursuant to this chapter in accordance with the schedule set
forth in its plan, as determined by the governing body of the
agricultural water supplier.
   10843.  (a) An agricultural water supplier shall submit to the
entities identified in subdivision (b) a copy of its plan no later
than 30 days after the adoption of the plan. Copies of amendments or
changes to the plans shall be submitted to the entities identified in
subdivision (b) within 30 days after the adoption of the amendments
or changes.
   (b) An agricultural water supplier shall submit a copy of its plan
and amendments or changes to the plan to each of the following
entities:
   (1) The department.
   (2) Any city, county, or city and county within which the
agricultural water supplier provides water supplies.
   (3) Any groundwater management entity within which jurisdiction
the agricultural water supplier extracts or provides water supplies.
   (4) Any urban water supplier within which jurisdiction the
agricultural water supplier provides water supplies.
   (5) Any city or county library within which jurisdiction the
agricultural water supplier provides water supplies.
   (6) The California State Library.
   (7) Any local agency formation commission serving a county within
which the agricultural water supplier provides water supplies.
   10844.  (a) Not later than 30 days after the date of adopting its
plan, the agricultural water supplier shall make the plan available
for public review on the agricultural water supplier's Internet Web
site.
   (b) An agricultural water supplier that does not have an Internet
Web site shall submit to the department, not later than 30 days after
the date of adopting its plan, a copy of the adopted plan in an
electronic format. The department shall make the plan available for
public review on the department's Internet Web site.
   10845.  (a) The department shall prepare and submit to the
Legislature, on or before December 31, 2013, and thereafter in the
years ending in six and years ending in one, a report summarizing the
status of the plans adopted pursuant to this part.
   (b) The report prepared by the department shall identify the
outstanding elements of any plan adopted pursuant to this part. The
report shall include an evaluation of the effectiveness of this part
in promoting efficient agricultural water management practices and
recommendations relating to proposed changes to this part, as
appropriate.
   (c) The department shall provide a copy of the report to each
agricultural water supplier that has submitted its plan to the
department. The department shall also prepare reports and provide
data for any legislative hearing designed to consider the
effectiveness of plans submitted pursuant to this part.
   (d) This section does not authorize the department, in preparing
the report, to approve, disapprove, or critique individual plans
submitted pursuant to this part.
      CHAPTER 4.  MISCELLANEOUS PROVISIONS


   10850.  (a) Any action or proceeding to attack, review, set aside,
void, or annul the acts or decisions of an agricultural water
supplier on the grounds of noncompliance with this part shall be
commenced as follows:
   (1) An action or proceeding alleging failure to adopt a plan shall
be commenced within 18 months after that adoption is required by
this part.
   (2) Any action or proceeding alleging that a plan, or action taken
pursuant to the plan, does not comply with this part shall be
commenced within 120 days after submitting the plan or amendments to
the plan to entities in accordance with Section 10844 or the taking
of that action.
   (b) In an action or proceeding to attack, review, set aside, void,
or annul a plan, or an action taken pursuant to the plan by an
agricultural water supplier, on the grounds of noncompliance with
this part, the inquiry shall extend only to whether there was a
prejudicial abuse of discretion. Abuse of discretion is established
if the agricultural water supplier has not proceeded in a manner
required by law, or if the action by the agricultural water supplier
is not supported by substantial evidence.
   10851.  The California Environmental Quality Act (Division 13
(commencing with Section 21000) of the Public Resources Code) does
not apply to the preparation and adoption of plans pursuant to this
part. This part does not exempt projects for implementation of the
plan or for expanded or additional water supplies from the California
Environmental Quality Act.
   10852.  An agricultural water supplier is not eligible for a water
grant or loan awarded or administered by the state unless the
supplier complies with this part.
   10853.  No agricultural water supplier that provides water to less
than 25,000 irrigated acres, excluding recycled water, shall be
required to implement the requirements of this part or Part 2.55
(commencing with Section 10608) unless sufficient funding has
specifically been provided to that water supplier for these purposes.

   SECTION 1.    Part 2.55 (commencing with
Section 10608) is added to Division 6 of the   Water
Code   , to read: 

      PART  2.55.   SUSTAINABLE WATER USE AND DEMAND
REDUCTION


      CHAPTER 1.  GENERAL DECLARATIONS AND POLICY


   10608.  The Legislature finds and declares all of the following:
   (a) Water is a public resource that the California Constitution
protects against waste and unreasonable use.
   (b) Growing population, climate change, and the need to protect
and grow California's economy while protecting and restoring our fish
and wildlife habitats make it essential that the state manage its
water resources as efficiently as possible.
   (c) Diverse regional water supply portfolios will increase water
supply reliability and reduce dependence on the Delta.
   (d) Reduced water use through conservation provides significant
energy and environmental benefits, and can help protect water
quality, improve streamflows, and reduce greenhouse gas emissions.
   (e) The success of state and local water conservation programs to
increase efficiency of water use is best determined on the basis of
measurable outcomes related to water use or efficiency.
   (f) Improvements in technology and management practices offer the
potential for increasing water efficiency in California over time,
providing an essential water management tool to meet the need for
water for urban, agricultural, and environmental uses.
   (g) The Governor has called for a 20 percent per capita reduction
in urban water use statewide by 2020.
   (h) The factors used to formulate water use efficiency targets can
vary significantly from location to location based on factors
including weather, patterns of urban and suburban development, and
past efforts to enhance water use efficiency.
   (i) Per capita water use is a valid measure of a water provider's
efforts to reduce urban water use within its service area. However,
per capita water use is less useful for measuring relative water use
efficiency between different water providers. Differences in weather,
historical patterns of urban and suburban development, and density
of housing in a particular location need to be considered when
assessing per capita water use as a measure of efficiency.
   10608.4.  It is the intent of the Legislature, by the enactment of
this part, to do all of the following:
   (a) Require all water suppliers to increase the efficiency of use
of this essential resource.
   (b) Establish a framework to meet the state targets for urban
water conservation identified in this part and called for by the
Governor.
   (c) Measure increased efficiency of urban water use on a per
capita basis.
   (d) Establish a method or methods for urban retail water suppliers
to determine targets for achieving increased water use efficiency by
the year 2020, in accordance with the Governor's goal of a
20-percent reduction.
   (e) Establish consistent water use efficiency planning and
implementation standards for urban water suppliers and agricultural
water suppliers.
   (f) Promote urban water conservation standards that are consistent
with the California Urban Water Conservation Council's adopted best
management practices and the requirements for demand management in
Section 10631.
   (g) Establish standards that recognize and provide credit to water
suppliers that made substantial capital investments in urban water
conservation since the drought of the early 1990s.
   (h) Recognize and account for the investment of urban retail water
suppliers in providing recycled water for beneficial uses.
   (i) Require implementation of specified efficient water management
practices for agricultural water suppliers.
   (j) Support the economic productivity of California's
agricultural, commercial, and industrial sectors.
   (k) Advance regional water resources management.
   10608.8.  (a) (1) Water use efficiency measures adopted and
implemented pursuant to this part or Part 2.8 (commencing with
Section 10800) are water conservation measures subject to the
protections provided under Section 1011.
   (2) Because an urban water supplier is not required to meet its
urban water use target until December 31, 2020, pursuant to
subdivision (b) of Section 10608.24, an urban water supplier's
failure to meet those targets shall not establish a violation of law
for purposes of any state administrative or judicial proceeding prior
to January 1, 2021. This paragraph shall become inoperative on
January 1, 2021.
   (3) To the extent feasible, the department and the board shall
provide for the use of water conservation reports required under this
part to meet the requirements of Section 1011 for water conservation
reporting.
   (b) This part does not limit or otherwise affect the application
of Chapter 3.5 (commencing with Section 11340), Chapter 4 (commencing
with Section 11370), Chapter 4.5 (commencing with Section 11400),
and Chapter 5 (commencing with Section 11500) of Part 1 of Division 3
of Title 2 of the Government Code.
   (c) This part does not require a reduction in the total water used
in the agricultural or urban sectors, because other factors,
including, but not limited to, changes in agricultural economics or
population growth may have greater effects on water use. This part
does not limit the economic productivity of California's
agricultural, commercial, or industrial sectors.
   (d) The requirements of this part do not apply to an agricultural
water supplier that is a party to the Quantification Settlement
Agreement, as defined in subdivision (a) of Section 1 of Chapter 617
of the Statutes of 2002, during the period within which the
Quantification Settlement Agreement remains in effect. After the
expiration of the Quantification Settlement Agreement, to the extent
conservation water projects implemented as part of the Quantification
Settlement Agreement remain in effect, the conserved water created
as part of those projects shall be credited against the obligations
of the agricultural water supplier pursuant to this part. 

      CHAPTER 2.  DEFINITIONS


   10608.12.  Unless the context otherwise requires, the following
definitions govern the construction of this part:
   (a) "Agricultural water supplier" means a water supplier, either
publicly or privately owned, providing water to 10,000 or more
irrigated acres, excluding recycled water. "Agricultural water
supplier" includes a supplier or contractor for water, regardless of
the basis of right, that distributes or sells water for ultimate
resale to customers.

          (b) "Base daily per capita water use" means any of the
following:
   (1) The urban retail water supplier's estimate of its average
gross water use, reported in gallons per capita per day and
calculated over a continuous 10-year period ending no earlier than
December 31, 2004, and no later than December 31, 2010.
   (2) For an urban retail water supplier that meets at least 10
percent of its 2008 measured retail water demand through recycled
water that is delivered within the service area of an urban retail
water supplier or its urban wholesale water supplier, the urban
retail water supplier may extend the calculation described in
paragraph (1) up to an additional five years to a maximum of a
continuous 15-year period ending no earlier than December 31, 2004,
and no later than December 31, 2010.
   (3) For the purposes of Section 10608.22, the urban retail water
supplier's estimate of its average gross water use, reported in
gallons per capita per day and calculated over a continuous five-year
period ending no earlier than December 31, 2007, and no later than
December 31, 2010.
   (c) "Baseline commercial, industrial, and institutional water use"
means an urban retail water supplier's base daily per capita water
use for commercial, industrial, and institutional users.
   (d) "Commercial water user" means a water user that provides or
distributes a product or service.
   (e) "Compliance daily per capita water use" means the gross water
use during the final year of the reporting period, reported in
gallons per capita per day.
   (f) "Disadvantaged community" means a community with an annual
median household income that is less than 80 percent of the statewide
annual median household income.
   (g) "Gross water use" means the total volume of water, whether
treated or untreated, entering the distribution system of an urban
retail water supplier, excluding all of the following:
   (1) Recycled water that is delivered within the service area of an
urban retail water supplier or its urban wholesale water supplier.
   (2) The net volume of water that the urban retail water supplier
places into long-term storage.
   (3) The volume of water the urban retail water supplier conveys
for use by another urban water supplier.
   (4) The volume of water delivered for agricultural use, except as
otherwise provided in subdivision (f) of Section 10608.24.
   (h) "Industrial water user" means a water user that is primarily a
manufacturer or processor of materials as defined by the North
American Industry Classification System code sectors 31 to 33,
inclusive, or an entity that is a water user primarily engaged in
research and development.
   (i) "Institutional water user" means a water user dedicated to
public service. This type of user includes, among other users, higher
education institutions, schools, courts, churches, hospitals,
government facilities, and nonprofit research institutions.
   (j) "Interim urban water use target" means the midpoint between
the urban retail water supplier's base daily per capita water use and
the urban retail water supplier's urban water use target for 2020.
   (k) "Locally cost effective" means that the present value of the
local benefits of implementing an agricultural efficiency water
management practice is greater than or equal to the present value of
the local cost of implementing that measure.
   (l) "Process water" means water used for producing a product or
product content or water used for research and development,
including, but not limited to, continuous manufacturing processes,
water used for testing and maintaining equipment used in producing a
product or product content, and water used in combined heat and power
facilities used in producing a product or product content. Process
water does not mean incidental water uses not related to the
production of a product or product content, including, but not
limited to, water used for restrooms, landscaping, air conditioning,
heating, kitchens, and laundry.
   (m) "Recycled water" means recycled water, as defined in
subdivision (n) of Section 13050, that is used to offset potable
demand, including recycled water supplied for direct use and indirect
potable reuse, that meets the following requirements, where
applicable:
   (1) For groundwater recharge, including recharge through spreading
basins, water supplies that are all of the following:
   (A) Metered.
   (B) Developed through planned investment by the urban water
supplier or a wastewater treatment agency.
   (C) Treated to a minimum tertiary level.
   (D) Delivered within the service area of an urban retail water
supplier or its urban wholesale water supplier that helps an urban
retail water supplier meet its urban water use target.
   (2) For reservoir augmentation, water supplies that meet the
criteria of paragraph (1) and are conveyed through a distribution
system constructed specifically for recycled water.
   (n) "Regional water resources management" means sources of supply
resulting from watershed-based planning for sustainable local water
reliability or any of the following alternative sources of water:
   (1) The capture and reuse of stormwater or rainwater.
   (2) The use of recycled water.
   (3) The desalination of brackish groundwater.
   (4) The conjunctive use of surface water and groundwater in a
manner that is consistent with the safe yield of the groundwater
basin.
   (o) "Reporting period" means the years for which an urban retail
water supplier reports compliance with the urban water use targets.
   (p) "Urban retail water supplier" means a water supplier, either
publicly or privately owned, that directly provides potable municipal
water to more than 3,000 end users or that supplies more than 3,000
acre-feet of potable water annually at retail for municipal purposes.

   (q) "Urban water use target" means the urban retail water supplier'
s targeted future daily per capita water use.
   (r) "Urban wholesale water supplier," means a water supplier,
either publicly or privately owned, that provides more than 3,000
acre-feet of water annually at wholesale for potable municipal
purposes.  
      CHAPTER 3.  URBAN RETAIL WATER SUPPLIERS


   10608.16.  (a) The state shall achieve a 20-percent reduction in
urban per capita water use in California on or before December 31,
2020.
   (b) The state shall make incremental progress towards the state
target specified in subdivision (a) by reducing urban per capita
water use by at least 10 percent on or before December 31, 2015.
   10608.20.  (a) (1) Each urban retail water supplier shall develop
urban water use targets and an interim urban water use target by July
1, 2011. Urban retail water suppliers may elect to determine and
report progress toward achieving these targets on an individual or
regional basis, as provided in subdivision (a) of Section 10608.28,
and may determine the targets on a fiscal year or calendar year
basis.
   (2) It is the intent of the Legislature that the urban water use
targets described in subdivision (a) cumulatively result in a
20-percent reduction from the baseline daily per capita water use by
December 31, 2020.
   (b) An urban retail water supplier shall adopt one of the
following methods for determining its urban water use target pursuant
to subdivision (a):
   (1) Eighty percent of the urban retail water supplier's baseline
per capita daily water use.
   (2) The per capita daily water use that is estimated using the sum
of the following performance standards:
   (A) For indoor residential water use, 55 gallons per capita daily
water use as a provisional standard. Upon completion of the
department's 2016 report to the Legislature pursuant to Section
10608.42, this standard may be adjusted by the Legislature by
statute.
   (B) For landscape irrigated through dedicated or residential
meters or connections, water efficiency equivalent to the standards
of the Model Water Efficient Landscape Ordinance set forth in Chapter
2.7 (commencing with Section 490) of Division 2 of Title 23 of the
California Code of Regulations, as in effect the later of the year of
the landscape's installation or 1992. An urban retail water supplier
using the approach specified in this subparagraph shall use
satellite imagery, site visits, or other best available technology to
develop an accurate estimate of landscaped areas.
   (C) For commercial, industrial, and institutional uses, a
10-percent reduction in water use from the baseline commercial,
industrial, and institutional water use by 2020.
   (3) Ninety-five percent of the applicable state hydrologic region
target, as set forth in the state's draft 20x2020 Water Conservation
Plan (dated April 30, 2009). If the service area of an urban water
supplier includes more than one hydrologic region, the supplier shall
apportion its service area to each region based on population or
area.
   (4) A method that shall be identified and developed by the
department, through a public process, and reported to the Legislature
no later than December 31, 2010. The method developed by the
department shall identify per capita targets that cumulatively result
in a statewide 20 percent reduction in urban daily per capita water
use by December 31, 2020. If the department does not adopt a method
pursuant to this paragraph, the urban retail water supplier shall
adopt a method described in paragraph (1), (2), or (3). In developing
urban daily per capita water use targets, the department shall do
all of the following:
   (A) Consider climatic differences within the state.
   (B) Consider population density differences within the state.
   (C) Provide flexibility to communities and regions in meeting the
targets.
   (D) Consider different levels of per capita water use according to
plant water needs in different regions.
   (E) Consider different levels of commercial, industrial, and
institutional water use in different regions of the state.
   (F) Avoid placing an undue hardship on communities that have
implemented conservation measures or taken actions to keep per capita
water use low.
   (c) The department shall update the method described in paragraph
(4) of subdivision (b) and report to the Legislature by December 31,
2014. An urban retail water supplier that adopted the method
described in paragraph (4) of subdivision (b) may adopt a new urban
daily per capita water use target pursuant to this updated method.
   (d) An urban retail water supplier shall include in its urban
water management plan required pursuant to Part 2.6 (commencing with
Section 10610) due in 2010 the baseline daily per capita water use,
urban water use target, interim urban water use target, and
compliance daily per capita water use, along with the bases for
determining those estimates, including references to supporting data.

   (e) When calculating per capita values for the purposes of this
chapter, an urban retail water supplier shall determine population
using federal, state, and local population reports and projections.
   (f) An urban retail water supplier may update its 2020 urban water
use target in its 2015 urban water management plan required pursuant
to Part 2.6 (commencing with Section 10610).
   (g) (1) The department, through a public process and in
consultation with the California Urban Water Conservation Council,
shall develop technical methodologies and criteria for the consistent
implementation of this part, including, but not limited to, both of
the following:
   (A) Methodologies for calculating base daily per capita water use,
baseline commercial, industrial, and institutional water use,
compliance daily per capita water use, gross water use, service area
population, indoor residential water use, and landscaped area water
use.
   (B) Criteria for adjustments pursuant to subdivisions (d) and (e)
of Section 10608.24.
   (2) The department shall post the methodologies and criteria
developed pursuant to this subdivision on its Internet Web site, and
make written copies available, by October 1, 2010. An urban retail
water supplier shall use the methods developed by the department in
compliance with this part.
   (h) (1) The department shall adopt regulations for implementation
of the provisions relating to process water in accordance with
subdivision (l) of Section 10608.12, subdivision (e) of Section
10608.24, and subdivision (d) of Section 10608.26.
   (2) The initial adoption of a regulation authorized by this
subdivision is deemed to address an emergency, for purposes of
Sections 11346.1 and 11349.6 of the Government Code, and the
department is hereby exempted for that purpose from the requirements
of subdivision (b) of Section 11346.1 of the Government Code. After
the initial adoption of an emergency regulation pursuant to this
subdivision, the department shall not request approval from the
Office of Administrative Law to readopt the regulation as an
emergency regulation pursuant to Section 11346.1 of the Government
Code.
   (i) An urban retail water supplier shall be granted an extension
to July 1, 2011, for adoption of an urban water management plan
pursuant to Part 2.6 (commencing with Section 10610) due in 2010 to
allow use of technical methodologies developed by the department
pursuant to paragraph (4) of subdivision (b) and subdivision (g). An
urban retail water supplier that adopts an urban water management
plan due in 2010 that does not use the methodologies developed by the
department pursuant to subdivision (g) shall amend the plan by July
1, 2011, to comply with this part.
   10608.22.  Notwithstanding the method adopted by an urban retail
water supplier pursuant to Section 10608.20, an urban retail water
supplier's per capita daily water use reduction shall be no less than
5 percent of base daily per capita water use as defined in paragraph
(3) of subdivision (b) of Section 10608.12. This section does not
apply to an urban retail water supplier with a base daily per capita
water use at or below 100 gallons per capita per day.
   10608.24.  (a) Each urban retail water supplier shall meet its
interim urban water use target by December 31, 2015.
   (b) Each urban retail water supplier shall meet its urban water
use target by December 31, 2020.
   (c) An urban retail water supplier's compliance daily per capita
water use shall be the measure of progress toward achievement of its
urban water use target.
   (d) (1) When determining compliance daily per capita water use, an
urban retail water supplier may consider the following factors:
   (A) Differences in evapotranspiration and rainfall in the baseline
period compared to the compliance reporting period.
   (B) Substantial changes to commercial or industrial water use
resulting from increased business output and economic development
that have occurred during the reporting period.
   (C) Substantial changes to institutional water use resulting from
fire suppression services or other extraordinary events, or from new
or expanded operations, that have occurred during the reporting
period.
   (2) If the urban retail water supplier elects to adjust its
estimate of compliance daily per capita water use due to one or more
of the factors described in paragraph (1), it shall provide the basis
for, and data supporting, the adjustment in the report required by
Section 10608.40.
   (e) When developing the urban water use target pursuant to Section
10608.20, an urban retail water supplier that has a substantial
percentage of industrial water use in its service area, may exclude
process water from the calculation of gross water use to avoid a
disproportionate burden on another customer sector.
   (f) (1) An urban retail water supplier that includes agricultural
water use in an urban water management plan pursuant to Part 2.6
(commencing with Section 10610) may include the agricultural water
use in determining gross water use. An urban retail water supplier
that includes agricultural water use in determining gross water use
and develops its urban water use target pursuant to paragraph (2) of
subdivision (b) of Section 10608.20 shall use a water efficient
standard for agricultural irrigation of 100 percent of reference
evapotranspiration multiplied by the crop coefficient for irrigated
acres.
   (2) An urban retail water supplier, that is also an agricultural
water supplier, is not subject to the requirements of Chapter 4
(commencing with Section 10608.48), if the agricultural water use is
incorporated into its urban water use target pursuant to paragraph
(1).
   10608.26.  (a) In complying with this part, an urban retail water
supplier shall conduct at least one public hearing to accomplish all
of the following:
   (1) Allow community input regarding the urban retail water
supplier's implementation plan for complying with this part.
   (2) Consider the economic impacts of the urban retail water
supplier's implementation plan for complying with this part.
   (3) Adopt a method, pursuant to subdivision (b) of Section
10608.20, for determining its urban water use target.
   (b) In complying with this part, an urban retail water supplier
may meet its urban water use target through efficiency improvements
in any combination among its customer sectors. An urban retail water
supplier shall avoid placing a disproportionate burden on any
customer sector.
   (c) For an urban retail water supplier that supplies water to a
United States Department of Defense military installation, the urban
retail water supplier's implementation plan for complying with this
part shall consider the United States Department of Defense military
installation's requirements under federal Executive Order 13423.
   (d) (1) Any ordinance or resolution adopted by an urban retail
water supplier after the effective date of this section shall not
require existing customers as of the effective date of this section,
to undertake changes in product formulation, operations, or equipment
that would reduce process water use, but may provide technical
assistance and financial incentives to those customers to implement
efficiency measures for process water. This section shall not affect
the operation of an ordinance or resolution adopted under Section 375
prior to the effective date of this section.
   (2) This part shall not be construed or enforced so as to
interfere with the requirements of Chapter 4 (commencing with Section
113980) to Chapter 13 (commencing with Section 114380), inclusive,
of Part 7 of Division 104 of the Health and Safety Code, or any
requirement or standard for the protection of public health, public
safety, or worker safety established by federal, state, or local
government or recommended by recognized standard setting
organizations or trade associations.
   10608.28.  (a) An urban retail water supplier may meet its urban
water use target within its retail service area, or through mutual
agreement, by any of the following:
   (1) Through an urban wholesale water supplier.
   (2) Through a regional agency authorized to plan and implement
water conservation, including, but not limited to, an agency
established under the Bay Area Water Supply and Conservation Agency
Act (Division 31 (commencing with Section 81300)).
   (3) Through a regional water management group as defined in
Section 10537.
   (4) By an integrated regional water management funding area.
   (5) By hydrologic region.
   (6) Through other appropriate geographic scales for which
computation methods have been developed by the department.
   (b) A regional water management group, with the written consent of
its member agencies, may undertake any or all planning, reporting,
and implementation functions under this chapter for the member
agencies that consent to those activities. Any data or reports shall
provide information both for the regional water management group and
separately for each consenting urban retail water supplier and urban
wholesale water supplier.
   10608.32.  All costs incurred pursuant to this part by a water
utility regulated by the Public Utilities Commission may be
recoverable in rates subject to review and approval by the Public
Utilities Commission, and may be recorded in a memorandum account and
reviewed for reasonableness by the Public Utilities Commission.
   10608.36.  Urban wholesale water suppliers shall include in the
urban water management plans required pursuant to Part 2.6
(commencing with Section 10610) an assessment of their present and
proposed future measures, programs, and policies to help achieve the
water use reductions required by this part.
   10608.40.  Urban water retail suppliers shall report to the
department on their progress in meeting their urban water use targets
as part of their urban water management plans submitted pursuant to
Section 10631. The data shall be reported using a standardized form
developed pursuant to Section 10608.52.
   10608.42.  The department shall review the 2015 urban water
management plans and report to the Legislature by December 31, 2016,
on progress towards achieving a 20-percent reduction in urban water
use by December 31, 2020. The report shall include recommendations on
changes to water efficiency standards or urban water use targets in
order to achieve the 20-percent reduction and to reflect updated
efficiency information and technology changes.
   10608.43.  The department, in conjunction with the California
Urban Water Conservation Council, by April 1, 2010, shall convene a
representative task force consisting of academic experts, urban
retail water suppliers, environmental organizations, commercial water
users, industrial water users, and institutional water users to
develop alternative best management practices for commercial,
industrial, and institutional users and an assessment of the
potential statewide water use efficiency improvement in the
commercial, industrial, and institutional sectors that would result
from implementation of these best management practices. The
taskforce, in conjunction with the department, shall submit a report
to the Legislature by April 1, 2012, that shall include a review of
multiple sectors within commercial, industrial, and institutional
users and that shall recommend water use efficiency standards for
commercial, industrial, and institutional users among various sectors
of water use. The report shall include, but not be limited to, the
following:
   (a) Appropriate metrics for evaluating commercial, industrial, and
institutional water use.
   (b) Evaluation of water demands for manufacturing processes,
goods, and cooling.
   (c) Evaluation of public infrastructure necessary for delivery of
recycled water to the commercial, industrial, and institutional
sectors.
   (d) Evaluation of institutional and economic barriers to increased
recycled water use within the commercial, industrial, and
institutional sectors.
   (e) Identification of technical feasibility and cost of the best
management practices to achieve more efficient water use statewide in
the commercial, industrial, and institutional sectors that is
consistent with the public interest and reflects past investments in
water use efficiency.
   10608.44.  Each state agency shall reduce water use on facilities
it operates to support urban retail water suppliers in meeting the
target identified in Section 10608.16.  

   CHAPTER 4.  AGRICULTURAL WATER SUPPLIERS


   10608.48.  (a) On or before July 31, 2012, an agricultural water
supplier shall implement efficient water management practices
pursuant to subdivisions (b) and (c).
   (b) Agricultural water suppliers shall implement all of the
following critical efficient management practices:
   (1) Measure the volume of water delivered to customers with
sufficient accuracy to comply with subdivision (a) of Section 531.10
and to implement volumetric pricing pursuant to paragraph (2).
   (2) Adopt a pricing structure for water customers based at least
in part on quantity delivered.
   (c) Agricultural water suppliers shall implement additional
efficient management practices, including, but not limited to,
practices to accomplish all of the following, if the measures are
locally cost effective and technically feasible:
   (1) Facilitate alternative land use for lands with exceptionally
high water duties or whose irrigation contributes to significant
problems, including drainage.
   (2) Facilitate use of available recycled water that otherwise
would not be used beneficially, meets all health and safety criteria,
and does not harm crops or soils.
   (3) Facilitate the financing of capital improvements for on-farm
irrigation systems.
   (4) Implement an incentive pricing structure that promotes one or
more of the following goals:
   (A) More efficient water use at the farm level.
   (B) Conjunctive use of groundwater.
   (C) Appropriate increase of groundwater recharge.
   (D) Reduction in problem drainage.
   (E) Improved management of environmental resources.
   (F) Effective management of all water sources throughout the year
by adjusting seasonal pricing structures based on current conditions.

   (5) Expand line or pipe distribution systems, and construct
regulatory reservoirs to increase distribution system flexibility and
capacity, decrease maintenance, and reduce seepage.
   (6) Increase flexibility in water ordering by, and delivery to,
water customers within operational limits.
   (7) Construct and operate supplier spill and tailwater recovery
systems.
   (8) Increase planned conjunctive use of surface water and
groundwater within the supplier service area.
   (9) Automate canal control structures.
   (10) Facilitate or promote customer pump testing and evaluation.
   (11) Designate a water conservation coordinator who will develop
and implement the water management plan and prepare progress reports.

   (12) Provide for the availability of water management services to
water users. These services may include, but are not limited to, all
of the following:
   (A) On-farm irrigation and drainage system evaluations.
   (B) Normal year and real-time irrigation scheduling and crop
evapotranspiration information.
   (C) Surface water, groundwater, and drainage water quantity and
quality data.
   (D) Agricultural water management educational programs and
materials for farmers, staff, and the public.
   (13) Evaluate the policies of agencies that provide the supplier
with water to identify the potential for institutional changes to
allow more flexible water deliveries and storage.
   (14) Evaluate and improve the efficiencies of the supplier's
pumps.
   (d) Agricultural water suppliers shall include in the agricultural
water management plans required pursuant to Part 2.8 (commencing
with Section 10800) a report on which efficient water management
practices have been implemented and are planned to be implemented, an
estimate of the water use efficiency improvements that have occurred
since the last report, and an estimate of the water use efficiency
improvements estimated to occur five and 10 years in the future. If
an agricultural water supplier determines that an efficient water
management practice is not locally cost effective or technically
feasible, the supplier shall submit information documenting that
determination.
   (e) The data shall be reported using a standardized form developed
pursuant to Section 10608.52.
   (f) An agricultural water supplier may meet the requirements of
subdivisions (d) and (e) by submitting to the department a water
conservation plan submitted to the United States Bureau of
Reclamation that meets the requirements described in Section 10828.
   (g) On or before December 31, 2013, December 31, 2016, and
December 31, 2021, the department, in consultation with the board,
shall submit to the Legislature a report on the agricultural
efficient water management practices that have been implemented and
are planned to be implemented and an assessment of the manner in
which the implementation of those efficient water management
practices has affected and will affect agricultural operations,
including estimated water use efficiency improvements, if any.
   (h) The department may update the efficient water management
practices required pursuant to subdivision (c), in consultation with
the Agricultural Water Management Council, the United States Bureau
of Reclamation, and the board. All efficient water management
practices for agricultural water use pursuant to this chapter shall
be adopted or revised by the department only after the department
conducts public hearings to allow participation of the diverse
geographical areas and interests of the state.
   (i) (1) The department shall adopt regulations that provide for a
range of options that agricultural water suppliers may use or
implement to comply with the measurement requirement in paragraph (1)
of subdivision (b).
   (2) The initial adoption of a regulation authorized by this
subdivision is deemed to address an emergency, for purposes of
Sections 11346.1 and 11349.6 of the Government Code, and the
department is hereby exempted for that purpose from the requirements
of subdivision (b) of Section 11346.1 of the Government Code. After
the initial adoption of an emergency regulation pursuant to this
subdivision, the department shall not request approval from the
Office of Administrative Law to readopt the regulation as an
emergency regulation pursuant to Section 11346.1 of the Government
Code.  
      CHAPTER 5.  SUSTAINABLE WATER MANAGEMENT


   10608.50.  (a) The department, in consultation with the board,
shall promote implementation of regional water resources management
practices through increased incentives and removal of barriers
consistent with state and federal law. Potential changes may include,
but are not limited to, all of the following:
   (1) Revisions to the requirements for urban and agricultural water
management plans.
   (2) Revisions to the requirements for integrated regional water
management plans.
   (3) Revisions to the eligibility for state water management grants
and loans.
   (4) Revisions to state or local permitting requirements that
increase water supply opportunities, but do not weaken water quality
protection under state and federal law.
   (5) Increased funding for research, feasibility studies, and
project construction.
   (6) Expanding technical and educational support for local land use
and water management agencies.
   (b) No later than January 1, 2011, and updated as part of the
California Water Plan, the department, in consultation with the
board, and with public input, shall propose new statewide targets, or
review and update existing statewide targets, for regional water
resources management practices, including, but not limited to,
recycled water, brackish groundwater desalination, and infiltration
and direct use of urban stormwater runoff.  
      CHAPTER 6.  STANDARDIZED DATA COLLECTION


   10608.52.  (a) The department, in consultation with the board, the
California Bay-Delta Authority or its successor agency, the State
Department of Public Health, and the Public Utilities Commission,
shall develop a single standardized water use reporting form to meet
the water use information needs of each agency, including the needs
of urban water suppliers that elect to determine and report progress
toward achieving targets on a regional basis as provided in
subdivision (a) of Section 10608.28.
   (b) At a minimum, the form shall be developed to accommodate
information sufficient to assess an urban water supplier's compliance
with conservation targets pursuant to Section 10608.24 and an
agricultural water supplier's compliance with implementation of
efficient water management practices pursuant to subdivision (a) of
Section 10608.48. The form shall accommodate reporting by urban water
suppliers on an individual or regional basis as provided in
subdivision (a) of Section 10608.28.  
      CHAPTER 7.  FUNDING PROVISIONS


   10608.56.  (a) On and after July 1, 2016, an urban retail water
supplier is not eligible for a water grant or loan awarded or
administered by the state unless the supplier complies with this
part.
   (b) On and after July 1, 2013, an agricultural water supplier is
not eligible for a water grant or loan awarded or administered by the
state unless the supplier complies with this part.
   (c) Notwithstanding subdivision (a), the department shall
determine that an urban retail water supplier is eligible for a water
grant or loan even though the supplier has not met the per capita
reductions required pursuant to Section 10608.24, if the urban retail
water supplier has submitted to the department for approval a
schedule, financing plan, and budget, to be included in the grant or
loan agreement, for achieving the per capita reductions. The supplier
may request grant or loan funds to achieve the per capita reductions
to the extent the request is consistent with the eligibility
requirements applicable to the water funds.
   (d) Notwithstanding subdivision (b), the department shall
determine that an agricultural water supplier is eligible for a water
grant or loan even though the supplier is not implementing all of
the efficient water management practices described in Section
10608.48, if the agricultural water supplier has submitted to the
department for approval a schedule, financing plan, and budget, to be
included in the grant or loan agreement, for implementation of the
efficient water management practices. The supplier may request grant
or loan funds to implement the efficient water management practices
to the extent the request is consistent with the eligibility
requirements applicable to the water funds.
   (e) Notwithstanding subdivision (a), the department shall
determine that an urban retail water supplier is eligible for a water
grant or loan even though the supplier has not met the per capita
reductions required pursuant to Section 10608.24, if the urban retail
water supplier has submitted to the department for approval
documentation demonstrating that its entire service area qualifies as
a disadvantaged community.
   (f) The department shall not deny eligibility to an urban retail
water supplier or agricultural water supplier in compliance with the
requirements of this part and Part 2.8 (commencing with Section
10800), that is participating in a multiagency water project, or an
integrated regional water management plan, developed pursuant to
Section 75026 of the Public Resources Code, solely on the basis that
one or more of the agencies participating in the project or plan is
not implementing all of the requirements of this part or Part 2.8
(commencing with Section 10800).
   10608.60.  (a) It is the intent of the Legislature that funds made
available by Section 75026 of the Public Resources Code should be
expended, consistent with Division 43 (commencing with Section 75001)
of the Public Resources Code and upon appropriation by the
Legislature, for grants to implement this part. In the allocation of
funding, it is the intent of the Legislature that the department give
consideration to disadvantaged communities to assist in implementing
the requirements of this part.
   (b) It is the intent of the Legislature that funds made available
by Section 75041 of the Public Resources Code, should be expended,
consistent with Division 43 (commencing with Section 75001) of the
Public Resources Code and upon appropriation by the Legislature, for
direct expenditures to implement this part.  
      CHAPTER 8.  QUANTIFYING AGRICULTURAL WATER USE EFFICIENCY


   10608.64.  The department, in consultation with the Agricultural
Water Management Council, academic experts, and other stakeholders,
shall develop a methodology for quantifying the efficiency of
agricultural water use. Alternatives to be assessed shall include,
but not be limited to, determination of efficiency levels based on
crop type or irrigation system distribution uniformity. On or before
December 31, 2011, the department shall report to the Legislature on
a proposed methodology and a plan for implementation. The plan shall
include the estimated implementation costs and the types of data
needed to support the methodology. Nothing in this section authorizes
the department to implement a methodology established pursuant to
this section.  
  SEC. 2.    Section 10631.5 of the Water Code is
amended to read:
   10631.5.  (a) (1) Beginning January 1, 2009, the terms of, and
eligibility for, a water management grant or loan made to an urban
water supplier and awarded or administered by the department, state
board, or California Bay-Delta Authority or its successor agency
shall be conditioned on the implementation of the water demand
management measures described in Section 10631, as determined by the
department pursuant to subdivision (b).
   (2) For the purposes of this section, water management grants and
loans include funding for programs and projects for surface water or
groundwater storage, recycling, desalination, water conservation,
water supply reliability, and water supply augmentation. This section
does not apply to water management projects funded by the federal
American Recovery and Reinvestment Act of 2009 (Public Law 111-5).
   (3) Notwithstanding paragraph (1), the department shall determine
that an urban water supplier is eligible for a water management grant
or loan even though the supplier is not implementing all of the
water demand management measures described in Section 10631, if the
urban water supplier has submitted to the department for approval a
schedule, financing plan, and budget, to be included in the grant or
loan agreement, for implementation of the water demand management
measures. The supplier may request grant or loan funds to implement
the water demand management measures to the extent the request is
consistent with the eligibility requirements applicable to the water
management funds.
   (4) (A) Notwithstanding paragraph (1), the department shall
determine that an urban water supplier is eligible for a water
management grant or loan even though the supplier is not implementing
all of the water demand management measures described in Section
10631, if an urban water supplier submits to the department for
approval documentation demonstrating that a water demand management
measure is not locally cost effective. If the department determines
that the documentation submitted by the urban water supplier fails to
demonstrate that a water demand management measure is not locally
cost effective, the department shall notify the urban water supplier
and the agency administering the grant or loan program within 120
days that the documentation does not satisfy the requirements for an
exemption, and include in that notification a detailed statement to
support the determination.
   (B) For purposes of this paragraph, "not locally cost effective"
means that the present value of the local benefits of implementing a
water demand management measure is less than the present value of the
local costs of implementing that measure.
   (b) (1) The department, in consultation with the state board and
the California Bay-Delta Authority or its successor agency, and after
soliciting public comment regarding eligibility requirements, shall
develop eligibility requirements to implement the requirement of
paragraph (1) of subdivision (a). In establishing these eligibility
requirements, the department shall do both of the following:
   (A) Consider the conservation measures described in the Memorandum
of Understanding Regarding Urban Water Conservation in California,
and alternative conservation approaches that provide equal or greater
water savings.
   (B) Recognize the different legal, technical, fiscal, and
practical roles and responsibilities of wholesale water suppliers and
retail water suppliers.
   (2) (A) For the purposes of this section, the department shall
determine whether an urban water supplier is implementing all of the
water demand management measures described in Section 10631 based on
either, or a combination, of the following:
   (i) Compliance on an individual basis.
   (ii) Compliance on a regional basis. Regional compliance shall
require participation in a regional conservation program consisting
of two or more urban water suppliers that achieves the level of
conservation or water efficiency savings equivalent to the amount of
conservation or savings achieved if each of the participating urban
water suppliers implemented the water demand management measures. The
urban water supplier administering the regional program shall
provide participating urban water suppliers and the department with
data to demonstrate that the regional program is consistent with this
clause. The department shall review the data to determine whether
the urban water suppliers in the regional program are meeting the
eligibility requirements.
   (B) The department may require additional information for any
determination pursuant to this section.
   (3) The department shall not deny eligibility to an urban water
supplier in compliance with the requirements of this section that is
participating in a multiagency water project, or an integrated
regional water management plan, developed pursuant to Section 75026
of the Public Resources Code, solely on the basis that one or more of
the agencies participating in the project or plan is not
implementing all of the water demand management measures described in
Section 10631.
   (c) In establishing guidelines pursuant to the specific funding
authorization for any water management grant or loan program subject
to this section, the agency administering the grant or loan program
shall include in the guidelines the eligibility requirements
developed by the department pursuant to subdivision (b).
   (d) Upon receipt of a water management grant or loan application
by an agency administering a grant and loan program subject to this
section, the agency shall request an eligibility determination from
the department with respect to the requirements of this section. The
department shall respond to the request within 60 days of the
request.
   (e) The urban water supplier may submit to the department copies
of its annual reports and other relevant documents to assist the
department in determining whether the urban water supplier is
implementing or scheduling the implementation of water demand
management activities. In addition, for urban water suppliers that
are signatories to the Memorandum of Understanding Regarding Urban
Water Conservation in California and submit biennial reports to the
California Urban Water Conservation Council in accordance with the
memorandum, the department may use these reports to assist in
tracking the implementation of water demand management measures.
   (f) This section shall remain in effect only until July 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before July 1, 2016, deletes or extends that date.
 
  SEC. 3.    Part 2.8 (commencing with Section
10800) of Division 6 of the Water Code is repealed. 

  SEC. 4.    Part 2.8 (commencing with Section
10800) is added to Division 6 of the Water Code, to read:

      PART 2.8.  AGRICULTURAL WATER MANAGEMENT PLANNING


      CHAPTER 1.  GENERAL DECLARATIONS AND POLICY


   10800.  This part shall be known and may be cited as the
Agricultural Water Management Planning Act.
   10801.  The Legislature finds and declares all of the following:
   (a) The waters of the state are a limited and renewable resource.
   (b) The California Constitution requires that water in the state
be used in a reasonable and beneficial manner.
   (c) Urban water districts are required to adopt water management
plans.
   (d) The conservation of agricultural water supplies is of great
statewide concern.
   (e) There is a great amount of reuse of delivered water, both
inside and outside the water service areas.
   (f) Significant noncrop beneficial uses are associated with
agricultural water use, including streamflows and wildlife habitat.
   (g) Significant opportunities exist in some areas, through
improved irrigation water management, to conserve water or to reduce
the quantity of highly saline or toxic drainage water.
   (h) Changes in water management practices should be carefully
planned and implemented to minimize adverse effects on other
beneficial uses currently being served.
   (i) Agricultural water suppliers that receive water from the
federal Central Valley Project are required by federal law to prepare
and implement water conservation plans.
   (j) Agricultural water users applying for a permit to appropriate
water from the board are required to prepare and implement water
conservation plans.
   10802.  The Legislature finds and declares that all of the
following are the policies of the state:
   (a) The conservation of water shall be pursued actively to protect
both the people of the state and the state's water resources.
   (b) The conservation of agricultural water supplies shall be an
important criterion in public decisions with regard to water.
   (c) Agricultural water suppliers shall be required to prepare
water management plans to achieve conservation of water.
      CHAPTER 2.  DEFINITIONS


   10810.  Unless the context otherwise requires, the definitions set
forth in this chapter govern the construction of this part.
   10811.  "Agricultural water management plan" or "plan" means an
agricultural water management plan prepared pursuant to this part.
   10812.  "Agricultural water supplier" has the same meaning as
defined in Section 10608.12.
   10813.  "Customer" means a purchaser of water from a water
supplier who uses water for agricultural purposes.
   10814.  "Person" means any individual, firm, association,
organization, partnership, business, trust, corporation, company,
public agency, or any agency of that entity.
   10815.  "Public agency" means any city, county, city and county,
special district, or other public entity.
   10816.  "Urban water supplier" has the same meaning as set forth
in Section 10617.
   10817.  "Water conservation" means the efficient management of
water resources for beneficial uses, preventing waste, or
accomplishing additional benefits with the same amount of water.
      CHAPTER 3.  AGRICULTURAL WATER MANAGEMENT PLANS



      Article 1.  General Provisions


   10820.  (a) An agricultural water supplier shall prepare and adopt
an agricultural water management plan in the manner set forth in
this chapter on or before December 31, 2012, and shall update that
plan on December 31, 2015, and on or before December 31 every five
years thereafter.
                                                            (b) Every
supplier that becomes an agricultural water supplier after December
31, 2012, shall prepare and adopt an agricultural water management
plan within one year after the date it has become an agricultural
water supplier.
   (c) A water supplier that indirectly provides water to customers
for agricultural purposes shall not prepare a plan pursuant to this
part without the consent of each agricultural water supplier that
directly provides that water to its customers.
   10821.  (a) An agricultural water supplier required to prepare a
plan pursuant to this part shall notify each city or county within
which the supplier provides water supplies that the agricultural
water supplier will be preparing the plan or reviewing the plan and
considering amendments or changes to the plan. The agricultural water
supplier may consult with, and obtain comments from, each city or
county that receives notice pursuant to this subdivision.
   (b) The amendments to, or changes in, the plan shall be adopted
and submitted in the manner set forth in Article 3 (commencing with
Section 10840).

      Article 2.  Contents of Plans


   10825.  (a) It is the intent of the Legislature in enacting this
part to allow levels of water management planning commensurate with
the numbers of customers served and the volume of water supplied.
   (b) This part does not require the implementation of water
conservation programs or practices that are not locally cost
effective.
   10826.  An agricultural water management plan shall be adopted in
accordance with this chapter. The plan shall do all of the following:

   (a) Describe the agricultural water supplier and the service area,
including all of the following:
   (1) Size of the service area.
   (2) Location of the service area and its water management
facilities.
   (3) Terrain and soils.
   (4) Climate.
   (5) Operating rules and regulations.
   (6) Water delivery measurements or calculations.
   (7) Water rate schedules and billing.
   (8) Water shortage allocation policies.
   (b) Describe the quantity and quality of water resources of the
agricultural water supplier, including all of the following:
   (1) Surface water supply.
   (2) Groundwater supply.
   (3) Other water supplies.
   (4) Source water quality monitoring practices.
   (5) Water uses within the agricultural water supplier's service
area, including all of the following:
   (A) Agricultural.
   (B) Environmental.
   (C) Recreational.
   (D) Municipal and industrial.
   (E) Groundwater recharge.
   (F) Transfers and exchanges.
   (G) Other water uses.
   (6) Drainage from the water supplier's service area.
   (7) Water accounting, including all of the following:
   (A) Quantifying the water supplier's water supplies.
   (B) Tabulating water uses.
   (C) Overall water budget.
   (8) Water supply reliability.
   (c) Include an analysis, based on available information, of the
effect of climate change on future water supplies.
   (d) Describe previous water management activities.
   (e) Include in the plan the water use efficiency information
required pursuant to Section 10608.48.
   10827.  Agricultural water suppliers that are members of the
Agricultural Water Management Council, and that submit water
management plans to that council in accordance with the "Memorandum
of Understanding Regarding Efficient Water Management Practices By
Agricultural Water Suppliers In California," dated January 1, 1999,
may submit the water management plans identifying water demand
management measures currently being implemented, or scheduled for
implementation, to satisfy the requirements of Section 10826.
   10828.  (a) Agricultural water suppliers that are required to
submit water conservation plans to the United States Bureau of
Reclamation pursuant to either the Central Valley Project Improvement
Act (Public Law 102-575) or the Reclamation Reform Act of 1982, or
both, may submit those water conservation plans to satisfy the
requirements of Section 10826, if both of the following apply:
   (1) The agricultural water supplier has adopted and submitted the
water conservation plan to the United States Bureau of Reclamation
within the previous four years.
   (2) The United States Bureau of Reclamation has accepted the water
conservation plan as adequate.
   (b) This part does not require agricultural water suppliers that
are required to submit water conservation plans to the United States
Bureau of Reclamation pursuant to either the Central Valley Project
Improvement Act (Public Law 102-575) or the Reclamation Reform Act of
1982, or both, to prepare and adopt water conservation plans
according to a schedule that is different from that required by the
United States Bureau of Reclamation.
   10829.  An agricultural water supplier may satisfy the
requirements of this part by adopting an urban water management plan
pursuant to Part 2.6 (commencing with Section 10610) or by
participation in area wide, regional, watershed, or basinwide water
management planning if those plans meet or exceed the requirements of
this part.

      Article 3.  Adoption and Implementation of Plans


   10840.  Every agricultural water supplier shall prepare its plan
pursuant to Article 2 (commencing with Section 10825).
   10841.  Prior to adopting a plan, the agricultural water supplier
shall make the proposed plan available for public inspection, and
shall hold a public hearing on the plan. Prior to the hearing, notice
of the time and place of hearing shall be published within the
jurisdiction of the publicly owned agricultural water supplier
pursuant to Section 6066 of the Government Code. A privately owned
agricultural water supplier shall provide an equivalent notice within
its service area and shall provide a reasonably equivalent
opportunity that would otherwise be afforded through a public hearing
process for interested parties to provide input on the plan. After
the hearing, the plan shall be adopted as prepared or as modified
during or after the hearing.
   10842.  An agricultural water supplier shall implement the plan
adopted pursuant to this chapter in accordance with the schedule set
forth in its plan, as determined by the governing body of the
agricultural water supplier.
   10843.  (a) An agricultural water supplier shall submit to the
entities identified in subdivision (b) a copy of its plan no later
than 30 days after the adoption of the plan. Copies of amendments or
changes to the plans shall be submitted to the entities identified in
subdivision (b) within 30 days after the adoption of the amendments
or changes.
   (b) An agricultural water supplier shall submit a copy of its plan
and amendments or changes to the plan to each of the following
entities:
   (1) The department.
   (2) Any city, county, or city and county within which the
agricultural water supplier provides water supplies.
   (3) Any groundwater management entity within which jurisdiction
the agricultural water supplier extracts or provides water supplies.
   (4) Any urban water supplier within which jurisdiction the
agricultural water supplier provides water supplies.
   (5) Any city or county library within which jurisdiction the
agricultural water supplier provides water supplies.
   (6) The California State Library.
   (7) Any local agency formation commission serving a county within
which the agricultural water supplier provides water supplies.
   10844.  (a) Not later than 30 days after the date of adopting its
plan, the agricultural water supplier shall make the plan available
for public review on the agricultural water supplier's Internet Web
site.
   (b) An agricultural water supplier that does not have an Internet
Web site shall submit to the department, not later than 30 days after
the date of adopting its plan, a copy of the adopted plan in an
electronic format. The department shall make the plan available for
public review on the department's Internet Web site.
   10845.  (a) The department shall prepare and submit to the
Legislature, on or before December 31, 2013, and thereafter in the
years ending in six and years ending in one, a report summarizing the
status of the plans adopted pursuant to this part.
   (b) The report prepared by the department shall identify the
outstanding elements of any plan adopted pursuant to this part. The
report shall include an evaluation of the effectiveness of this part
in promoting efficient agricultural water management practices and
recommendations relating to proposed changes to this part, as
appropriate.
   (c) The department shall provide a copy of the report to each
agricultural water supplier that has submitted its plan to the
department. The department shall also prepare reports and provide
data for any legislative hearing designed to consider the
effectiveness of plans submitted pursuant to this part.
   (d) This section does not authorize the department, in preparing
the report, to approve, disapprove, or critique individual plans
submitted pursuant to this part.
      CHAPTER 4.  MISCELLANEOUS PROVISIONS


   10850.  (a) Any action or proceeding to attack, review, set aside,
void, or annul the acts or decisions of an agricultural water
supplier on the grounds of noncompliance with this part shall be
commenced as follows:
   (1) An action or proceeding alleging failure to adopt a plan shall
be commenced within 18 months after that adoption is required by
this part.
   (2) Any action or proceeding alleging that a plan, or action taken
pursuant to the plan, does not comply with this part shall be
commenced within 120 days after submitting the plan or amendments to
the plan to entities in accordance with Section 10844 or the taking
of that action.
   (b) In an action or proceeding to attack, review, set aside, void,
or annul a plan, or an action taken pursuant to the plan by an
agricultural water supplier, on the grounds of noncompliance with
this part, the inquiry shall extend only to whether there was a
prejudicial abuse of discretion. Abuse of discretion is established
if the agricultural water supplier has not proceeded in a manner
required by law, or if the action by the agricultural water supplier
is not supported by substantial evidence.
   10851.  The California Environmental Quality Act (Division 13
(commencing with Section 21000) of the Public Resources Code) does
not apply to the preparation and adoption of plans pursuant to this
part. This part does not exempt projects for implementation of the
plan or for expanded or additional water supplies from the California
Environmental Quality Act.
   10852.  An agricultural water supplier is not eligible for a water
grant or loan awarded or administered by the state unless the
supplier complies with this part.
   10853.  No agricultural water supplier that provides water to less
than 25,000 irrigated acres, excluding recycled water, shall be
required to implement the requirements of this part or Part 2.55
(commencing with Section 10608) unless sufficient funding has
specifically been provided to that water supplier for these purposes.

  SEC. 5.  This act shall take effect only if Senate Bill 1, Senate
Bill 5, and Senate Bill 6 of the 2009-10 Seventh Extraordinary
Session of the Legislature are enacted and become effective.