Amended in Senate September 11, 2013

Amended in Senate August 26, 2013

Amended in Assembly May 21, 2013

Amended in Assembly April 23, 2013

Amended in Assembly April 1, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 1331

Introduced by begin delete Committee on Water, Parks and Wildlife (Assembly Members Rendon (Chair), Blumenfield, Bocanegra, Fong, Frazier, Gatto, Gomez, Gray, and Yamada) end delete begin insert Assembly Member Rendon end insert

February 22, 2013

An act to repeal and add Division 26.7 (commencing with Section 79700) of the Water Code, and to repeal Section 2 of Chapter 3 of the Seventh Extraordinary Session of the Statutes of 2009, relating to a climate change response for clean and safe drinking water program, by providing the funds necessary therefor through an election for the issuance and sale of bonds of the State of California and for the handling and disposition of those funds.

LEGISLATIVE COUNSEL’S DIGEST

AB 1331, as amended, begin delete Committee on Water, Parks and Wildlife end delete   begin insert Rendon end insert . Climate Change Response for Clean and Safe Drinking Water Act of 2014.

(1) Existing law, the Safe, Clean, and Reliable Drinking Water Supply Act of 2012, if approved by the voters, would authorize the issuance of bonds in the amount of $11,140,000,000 pursuant to the State General Obligation Bond Law to finance a safe drinking water and water supply reliability program. Existing law provides for the submission of the bond act to the voters at the November 4, 2014, statewide general election.

This bill would repeal these provisions.

(2) Under existing law, various measures have been approved by the voters to provide funds for water supply and protection facilities and programs.

This bill would enact the Climate Change Response for Clean and Safe Drinking Water Act of 2014, which, if adopted by the voters, would authorize the issuance of bonds in the amount of $6,500,000,000 pursuant to the State General Obligation Bond Law to finance a climate change response for clean and safe drinking water program.

This bill would provide for the submission of the bond act to the voters at the November 4, 2014, statewide general election.

Vote: ²⁄₃. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Division 26.7 (commencing with Section 79700)
of the Water Code, as added by Section 1 of Chapter 3 of the
Seventh Extraordinary Session of the Statutes of 2009, is repealed.

SEC. 2.  

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

 

Division 26.7.  The Climate Change Response for
Clean and Safe Drinking Water Act of 2014.

 

Chapter  1. Short Title

 

79700.  

This division shall be known, and may be cited, as the
begin delete Clean and Safe Drinking Water and Climate Change Response end delete
begin insert Climate Change Response for Clean and Safe Drinking Water end insert Act
of 2014.

 

Chapter  2. Definitions

 

79701.  

The people of California find and declare all of the
following:

(a) Safeguarding supplies of clean and safe drinking water to
California’s homes, businesses, and farms is an essential
responsibility of government, and critical to protecting the quality
of life for Californians.

(b) Every Californian should have access to clean, safe, and
reliable drinking water, consistent with the human right to water
and Section 106.3. Providing adequate supplies of clean, safe, and
reliable drinking water is vital to keeping California’s economy
growing and strong.

(c) Climate change has impaired California’s capacity to ensure
clean, safe, and reliable drinking water, as droughts have become
more frequent and more severe, and ecosystems have become
stressed. Higher temperatures mean less snow pack, which is the
state’s largest water reservoir. Scientists project a loss of at least
25 percent of the snow pack in the Sierra Nevada Mountains by
2050. begin insert The Colorado River basin, which provides drinking water
to southern California, has experienced prolonged drought and
the federal government projects a continuing decline in water
availability. end insert

(d) California’s water infrastructure continues to age and
deteriorate. More than 50 years ago, Californians approved the
construction of the State Water Project. In the decades that
followed, California’s water leaders developed the most
sophisticated system of state, federal, regional, and local water
infrastructure anywhere in the world. In recent decades, however,
that water infrastructure and the water environment on which it
depends have deteriorated.

(e) In the years since the voters approved the state water project,
California’s population has continued to grow, from less than 16
million in 1960 to more than 37 million in 2010. A growing
population and a growing economy have put greater stress on
California’s natural resources, including water. Contamination of
groundwater aquifers from a vibrant economy has threatened vital
drinking water supplies. begin insert The Department of Finance projects that
California’s population will reach 50 million by 2049. end insert

begin insert

(f) A growing population and a growing economy have put
greater stress on California’s natural resources, including water.
Contamination of groundwater aquifers from economic activity
in the agricultural and industrial sectors has threatened vital
drinking water supplies.

end insert begin delete

(f)

end delete

begin insert (g) end insert  As California and its water infrastructure have grown,
increasing demands on California’s limited water supplies and
deteriorating aquatic ecosystems have led to intense conflict,
further threatening the reliability of clean and safe drinking water.

79702.  

The people of California find and declare all of the
following:

(a) A sustainable water future can provide the means for
California to maintain vibrant communities, globally competitive
agriculture, and begin delete heathy end delete begin insert healthy end insert ecosystems, which are all a part
of the quality of life that attracts so many to live in California.

(b) Responding to climate change, ensuring clean and safe
drinking water, and preparing for California’s continued growth
will require a diversified portfolio of strategies and investments
to address the many water challenges facing California.

(c) Improving water quality offers one of the most immediate
steps to ensuring a clean and safe drinking water supply. California
needs water quality improvements at all parts of the hydrologic
cycle, from source water in the watersheds where the state’s
drinking water supplies originate to wastewater treatment to
improve surface water quality for those who live downstream.

(d) Addressing the challenges to the sustainability of the Delta,
the heart of the California water system, will help resolve some
of the conflicts that impede progress in improving the statewide
water system.

(e) Enhancing regional water self-reliance offers a key strategy
for addressing climate change and improving water supply
reliability. It helps the Delta and it helps local communities to
address their own water challenges. Water conservation and water
recycling form one part of the regional water self-reliance strategy
and are commonsense methods to make more efficient use of
existing water supplies.

 

Chapter  3. Definitions

 

79703.  

Unless the context otherwise requires, the definitions
set forth in this section govern the construction of this division, as
follows:

(a) “CALFED Bay-Delta Program” means the program
described in the Record of Decision dated August 28, 2000.

(b) “Commission” means the California Water Commission.

(c) “Committee” means the Climate Change Response for Clean
and Safe Drinking Water Finance Committee created by Section
79802.

(d) “Delta” means the Sacramento-San Joaquin Delta, as defined
in Section 85058.

(e) “Delta conveyance facilities” means facilities that convey
water directly from the Sacramento River to the State Water Project
or the federal Central Valley Project pumping facilities in the south
Delta.

(f) “Delta counties” means the Counties of Solano, Yolo,
Sacramento, Contra Costa, and San Joaquin.

(g) “Department” means the Department of Water Resources.

(h) “Director” means the Director of Water Resources.

(i) “Disadvantaged community” has the meaning set forth in
subdivision (a) of Section 79505.5.

(j) “Economically distressed area” means a municipality with
a population of 20,000 persons or less, a rural county, or a
reasonably isolated and divisible segment of a larger municipality
where the segment of the population is 20,000 persons or less,
with an annual median household income that is less than 85
percent of the statewide median household income, and with one
or more of the following conditions as determined by the
department:

(1) Financial hardship.

(2) Unemployment rate at least 2 percent higher than the
statewide average.

(3) Low population density.

(k) “Fund” means the Climate Change Response for Clean and
Safe Drinking Water Fund of 2014 created by Section 79717.

(l) “Integrated regional water management plan” has the
meaning set forth in Section 10534.

(m) “Nonprofit organization” means an organization qualified
to do business in California and qualified under Section 501(c)(3)
of Title 26 of the United States Code.

(n) “Public agency” means a state agency or department, district,
joint powers authority, city, county, city and county, or other
political subdivision of the state.

(o) “Rainwater” has the meaning set forth in subdivision (c) of
Section 10573.

begin insert

(p) “Severely disadvantaged community” has the meaning set
forth in subdivision (n) of Section 116760.20 of the Health and
Safety Code.

end insert begin insert

(q) “Small community water system” means a community water
system that serves no more than 3,300 service connections or a
yearlong population of no more than 10,000 persons.

end insert begin delete

(p)

end delete

begin insert ( end insert begin insert r) end insert  “State General Obligation Bond Law” means the State
General Obligation Bond Law (Chapter 4 (commencing with
Section 16720) of Part 3 of Division 4 of Title 2 of the Government
Code).

begin delete

(q)

end delete begin insert

(s) “State small water system” has the meaning set forth in
subdivision (n) of Section 116275 of the Health and Safety Code.

end insert

begin insert ( end insert begin insert t) end insert  “Stormwater” has the meaning set forth in subdivision (e)
of Section 10573.

 

Chapter  4. General Provisions

 

79705.  

An amount that equals not more than 5 percent of the
funds allocated for a grant program pursuant to this division may
be used to pay the administrative costs of that program.

79706.  

Up to 10 percent of funds allocated for each program
funded by this division may be expended for planning and
monitoring necessary for the successful design, selection, and
implementation of the projects authorized under that program.
This section shall not otherwise restrict funds ordinarily used by
an agency for “preliminary plans,” “working drawings,” and
“construction” as defined in the annual Budget Act for a capital
outlay project or grant project. Water quality monitoring shall be
integrated into the surface water ambient monitoring program
administered by the State Water Resources Control Board.
Watershed monitoring shall be integrated into the statewide
watershed program administered by the Department of
Conservation.

79707.  

Chapter 3.5 (commencing with Section 11340) of Part
1 of Division 3 of Title 2 of the Government Code does not apply
to the development or implementation of programs or projects
authorized or funded under this division other than Chapter 9
(commencing with Section 79760).

79708.  

(a) Prior to disbursing grants or loans pursuant to this
division, each state agency that receives an appropriation from the
funding made available by this division to administer a competitive
grant or loan program under this division shall develop and adopt
project solicitation and evaluation guidelines. The guidelines shall
include monitoring and reporting requirements and may include
a limitation on the dollar amount of grants or loans to be awarded.

(b) Prior to disbursing grants or loans, the state agency shall
conduct three public meetings to consider public comments prior
to finalizing the guidelines. The state agency shall publish the draft
solicitation and evaluation guidelines on its Internet Web site at
least 30 days before the public meetings. One meeting shall be
conducted at a location in northern California, one meeting shall
be conducted at a location in the central valley of California, and
one meeting shall be conducted at a location in southern California.
Upon adoption, the state agency shall transmit copies of the
guidelines to the fiscal committees and the appropriate policy
committees of the Legislature.

79709.  

It is the intent of the people that:

(a) The investment of public funds pursuant to this division will
result in public benefits begin insert that address the most urgent needs for
public funding end insert .

(b) Beneficiaries pay for the benefits they receive from projects
funded pursuant to this division.

(c) Any relevant statute enacted before voters approve this bond
shall be considered in the appropriation and expenditure of the
funding authorized by this division.

(d) In the appropriation and expenditure of funding authorized
by this division, priority shall be given to projects that leverage
private, federal, or local funding or produce the greatest public
benefit.

(e) A funded project advances the purposes of the chapter from
which the project received funding.

(f) In making decisions regarding water resources, state and
local water agencies use the best available science to inform those
decisions.

(g) Special consideration will be given to projects that employ
new or innovative technology or practices, including decision
support tools that demonstrate the multiple benefits of integrating
multiple jurisdictions, including, but not limited to, water supply,
flood control, land use, and sanitation.

begin insert

(h) Projects funded with proceeds from this division shall be
consistent with Section 65041.1 of the Government Code and any
adopted, approved sustainable communities strategy consistent
with subparagraph (B) of paragraph (2) of subdivision (b) of
Section 65080 of the Government Code.

end insert

79710.  

(a) The California State Auditor shall annually conduct
a programmatic review and an audit of expenditures from the fund.

(b) Notwithstanding Section 10231.5 of the Government Code,
the California State Auditor shall report its findings annually on
or before March 1 to the Governor and the Legislature, and shall
make the findings available to the public.

begin insert

(c) If an audit of a public agency that receives funding
authorized by this division is conducted pursuant to state law and
reveals any impropriety, the California State Auditor or the
Controller may conduct a full audit of any or all of the activities
of the public agency.

end insert begin insert

(d) The state agency issuing any grant or loan with funding
authorized by this division shall require adequate reporting of the
expenditures of the funding from the grant or loan.

end insert

79711.  

Funds provided by this division shall not be expended
to support or pay for the costs of environmental mitigation
measures or begin insert environmental end insert compliance obligations of any party
except as part of the environmental mitigation costs of projects
financed by this division. Funds provided by this division may be
used for environmental enhancements or other public benefits.

79712.  

Funds provided by this division shall not be expended
to pay the costs of the design, construction, operation, or
maintenance of Delta conveyance facilities. Those costs shall be
the responsibility of the water agencies that benefit from the design,
construction, operation, or maintenance of those facilities.

79713.  

(a) This division does not diminish, impair, or
otherwise affect in any manner whatsoever any area of origin,
watershed of origin, county of origin, or any other water rights
protections, including, but not limited to, rights to water
appropriated prior to December 19, 1914, provided under the law.
This division does not limit or affect the application of Article 1.7
(commencing with Section 1215) of Chapter 1 of Part 2 of Division
2, Sections 10505, 10505.5, 11128, 11460, 11461, 11462, and
11463, and Sections 12200 to 12220, inclusive.

(b) For the purposes of this division, an area that utilizes water
that has been diverted and conveyed from the Sacramento River
hydrologic region, for use outside the Sacramento River hydrologic
region or the Delta, shall not be deemed to be immediately adjacent
thereto or capable of being conveniently supplied with water
therefrom by virtue or on account of the diversion and conveyance
of that water through facilities that may be constructed for that
purpose after January 1, 2014.

(c) Nothing in this division supersedes, limits, or otherwise
modifies the applicability of Chapter 10 (commencing with Section
1700) of Part 2 of Division 2, including petitions related to any
new conveyance constructed or operated in accordance with
Chapter 2 (commencing with Section 85320) of Part 4 of Division
35.

(d) Unless otherwise expressly provided, nothing in this division
supersedes, reduces, or otherwise affects existing legal protections,
both procedural and substantive, relating to the state board’s
regulation of diversion and use of water, including, but not limited
to, water right priorities, the protection provided to municipal
interests by Sections 106 and 106.5, and changes in water rights.
Nothing in this division expands or otherwise alters the state
board’s existing authority to regulate the diversion and use of water
or the courts’ existing concurrent jurisdiction over California water
rights.

(e) Nothing in this division shall be construed to affect any
contract begin delete related to water in any way connected to the Delta end delete begin insert entered
into before January 1, 2013, between the State of California and
one or more of the delta water agencies pursuant to the authority
granted under Chapter 283 of the Statutes of 1973, Chapter 1089
of the Statutes of 1973, or Chapter 1133 of the Statutes of 1973,
as those chapters may have been amended end insert .

(f) Nothing in this division shall be construed to affect the
California Wild and Scenic Rivers Act (Chapter 1.4 (commencing
with Section 5093.50) of Division 5 of the Public Resources Code)
and funds authorized pursuant to this division shall not be available
for any project that could have an adverse effect on the free flowing
condition of a wild and scenic river.

79714.  

Eligible applicants under this division are public
begin delete agencies, end delete begin insert agencies and end insert nonprofit begin delete organizations, public utilities,
and mutual water companies. To be eligible for funding under this
division, a project proposed by a public utility that is regulated by
the Public Utilities Commission or a mutual water company shall
have a clear and definite public purpose and shall benefit the
customers of the water system. end delete begin insert organizations. A public agency
may use funding authorized by this division to benefit recipients
of water from public utilities or mutual water companies that
operate a public water system if the funding provides public
benefits. end insert

79715.  

The Legislature may enact legislation necessary to
implement programs funded by this division.

79716.  

begin insert (a) end insert begin insert   end insert Unless otherwise specified, any state agency may
be eligible for appropriations from the funding made available by
this division.

begin insert

(b) Funds authorized in this division may be expended to pay
for the services of the California Conservation Corps in
implementation of funded projects.

end insert

79717.  

The proceeds of bonds issued and sold pursuant to this
division shall be deposited in the Climate Change Response for
Clean and Safe Drinking Water Fund of 2014, which is hereby
created in the State Treasury.

 

Chapter  5. Water Quality and Clean and Safe Drinking
Water

 

79720.  

The sum of one billion dollars ($1,000,000,000) shall
be available, upon appropriation by the Legislature from the fund,
for expenditures, grants, and loans for projects that improve water
quality or help provide clean and safe drinking water to all
Californians.

79721.  

The projects eligible for funding pursuant to this chapter
shall help improve water quality for begin delete all end delete begin insert a end insert beneficial begin delete uses end delete begin insert use end insert . The
purposes of this chapter are to:

(a) Reduce contaminants in drinking water supplies regardless
of the source of the water or the contamination, including the
assessment and prioritization of the risk to the safety of drinking
water supplies.

(b) Address the critical and immediate needs of disadvantaged,
rural, or small communities that suffer from contaminated drinking
water supplies, including, but not limited to, projects that address
a public health emergency.

(c) Leverage other private, federal, state, and local drinking
water quality and wastewater treatment funds.

(d) Reduce contaminants in discharges to, and improve the
quality of, surface water streams.

(e) Improve water quality of surface water streams, including
begin insert multibenefit end insert stormwater quality begin insert projects end insert .

(f) Prevent further contamination of drinking water supplies.

(g) Provide disadvantaged communities with public drinking
water infrastructure that provides clean and safe drinking water
supplies that the community can sustain over the long term.

(h) Ensure access to clean begin delete and end delete begin insert , end insert safe begin insert , and affordable end insert drinking
water for California’s communities.

79722.  

(a) A project that receives funding under this chapter
shall be selected by a competitive grant or loan process with added
consideration for those projects that leverage private, federal, or
local funding. begin delete Special consideration shall also be given to a project
focused on groundwater clean up. end delete begin insert This subdivision shall not apply
to projects for the purposes of Section 79727 that address a public
health priority for which no other source of funding can be
identified. end insert

(b) An agency administering grants or loans for the purposes
of this chapter shall assess the capacity of a community to pay for
the operation and maintenance of the facility to be funded.

begin insert

(c) A project that receives funding authorized by this chapter
may be implemented by any public water system or other public
water agency.

end insert

79723.  

An applicant for a project to clean up a groundwater
aquifer shall demonstrate that a public agency has authority to
manage the water resources in that aquifer in order to be eligible
for funding pursuant to this chapter. This section does not apply
to projects that install treatment facilities at the wellhead, customer
connection, or the tap.

79724.  

The contaminants that may be addressed with funding
pursuant to this chapter may include, but shall not be limited to,
nitrates, perchlorate, MTBE (methyl tertiary butyl ether), arsenic,
begin delete salinity end delete begin insert selenium end insert , hexavalent chromium, mercury, PCE
(perchloroethylene), TCE (trichloroethylene), DCE
(dichloroethene), DCA (dichloroethane), begin insert 1, 2, 3 TCP
(trichloropropane), end insert and carbon tetrachloride.

79725.  

(a) Of the funds authorized in Section 79720, begin delete up to end delete begin insert not
less than end insert one hundred million dollars ($100,000,000) shall be
available for deposit in the State Water Pollution Control Revolving
Fund Small Community Grant Fund created pursuant to Section
13477.6 for grants for wastewater treatment projects. Priority shall
be given to projects that serve disadvantaged communities and
severely disadvantaged communities, and to projects that address
public health hazards. begin delete Special consideration shall be given to small
communities with limited financial resources. end delete Projects shall
include, but not be limited to, projects that identify, plan, design,
and implement regional mechanisms to consolidate wastewater
systems or provide affordable treatment technologies.

(b) Of the funds authorized in Section 79720, up to two hundred
fifty million dollars ($250,000,000) shall be available to support
projects that address the management of stormwater quality begin insert ,
including projects described in subdivision (f) of Section 79743 end insert .

begin insert

begin insert 79726. end insert   

(a) Of the funds authorized in Section 79720, one
hundred million dollars ($100,000,000) shall be available for
deposit in the Emergency Clean Water Grant Fund, established
pursuant to Section 116475 of the Health and Safety Code, for
grants and direct expenditures to finance public health emergencies
and urgent actions, as may be determined by the Legislature, to
ensure that safe drinking water supplies are available to all
Californians. Eligible projects include, but are not limited to, the
following:

(1) Providing interim water supplies, including, but not limited
to, bottled water, where necessary to protect public health.

(2) Identifying, planning, designing, and constructing projects
that improve existing water systems to provide safe, reliable,
accessible, and affordable drinking water, provide other sources
of safe drinking water, including, but not limited to, replacement
wells, and prevent contamination.

(3) Establishing connections to an adjacent water system.

(4) The design, purchase, installation, and initial operating
costs for interim water treatment equipment and systems.

(b) The administering entity may expend up to ten million dollars
($10,000,000) for grants and loans to address the water quality
needs of private well owners that have no other source of funding
and serve members of a disadvantaged community.

end insert begin insert

begin insert 79727. end insert   

(a) Of the funds authorized in Section 79720, four
hundred million dollars ($400,000,000) shall be available for
grants and loans for public water system infrastructure
improvements and related actions to meet safe drinking water
standards, ensure affordable drinking water, or both. Priority
shall be given to projects that provide treatment for contamination
or access to an alternate drinking water source or sources for
small community water systems or state small water systems in
disadvantaged communities whose drinking water source is
impaired by chemical and nitrate contaminants and other health
hazards identified by the implementing agency. Eligible recipients
serve disadvantaged communities and are public agencies or
incorporated mutual water companies. The implementing agency
may make grants for the purpose of financing feasibility studies
and to meet the eligibility requirements for a construction grant.
Eligible expenses may include initial operation and maintenance
costs for systems serving disadvantaged communities. Special
consideration shall be given to projects that provide shared
solutions for multiple communities, at least one of which is a
disadvantaged community that lacks safe, affordable drinking
water and is served by a small community water system, state small
water system, or a private well. Construction grants shall be limited
to five million dollars ($5,000,000) per project, except that the
implementing agency may set a limit of not more than twenty
million dollars ($20,000,000) for projects that provide regional
or shared among multiple entities, at least one of which shall be
a small disadvantaged community. Not more than 25 percent of a
grant may be awarded in advance of actual expenditures.

(b) The administering entity may expend up to twenty-five
million dollars ($25,000,000) of the funds allocated in subdivision
(a) for technical assistance to eligible communities.

end insert begin insert

begin insert 79728. end insert   

Of the funds authorized in Section 79720, two hundred
fifty million dollars ($250,000,000) shall be available for improving
groundwater quality.

end insert begin delete

79726.  

For

end delete

begin insert

begin insert 79729. end insert   

end insert

begin insert (a) end insert begin insert   end insert begin insert For end insert the purposes of awarding funding under this
chapter, a local cost share of not less than 50 percent of the total
costs of the project shall be required. The cost-sharing requirement
may be waived or reduced for projects that directly benefit a
disadvantaged community or an economically distressed area.

begin insert

(b) At least 10 percent of the funds available pursuant to this
chapter shall be allocated for projects serving severely
disadvantaged communities.

end insert begin insert

(c) Funding authorized pursuant to this chapter shall include
funding for technical assistance to disadvantaged communities.
The agency administering this funding shall operate a
multidisciplinary technical assistance program for small and
disadvantaged communities.

end insert

 

Chapter  6. Protecting Rivers, Lakes, Streams, and
Watersheds

 

79730.  

The sum of one billion five hundred million dollars
($1,500,000,000) shall be available, upon appropriation by the
Legislature from the fund, in accordance with this chapter, for
expenditures and grants for ecosystem and watershed protection
and restoration projects, including, but not limited to, for all of the
following watersheds:

(a) The San Joaquin River watershed.

(b) The Kern River and Tulare Basin watersheds.

(c) The Salton Sea and Colorado River watersheds.

(d) The Los Angeles River watershed.

(e) The San Gabriel River watershed.

(f) The Santa Ana River watershed.

(g) The Klamath River watershed, including the Trinity, Scott,
and Shasta Rivers and watersheds.

(h) The North Coast watersheds.

(i) The San Francisco Bay watersheds.

(j) The Central Coast watersheds.

(k) The South Coast watersheds.

(l) The Lake Tahoe Basin watershed.

(m) The Sacramento River watershed, including the Yolo
Bypass.

(n) The San Diego County coastal watersheds.

(o) The Ventura River watershed.

(p) The Sierra Nevada Mountain watersheds.

(q) The Mojave River watershed.

(r) The Owens River watershed.

(s) The Santa Monica Bay watershed.

(t) The watersheds of Marin County.

(u) The watersheds of Orange County.

79731.  

In protecting and restoring California rivers, lakes,
streams, and watersheds, the purposes of this chapter are to:

(a) Protect and increase the economic benefits arising from
healthy watersheds, fishery resources, and instream flow.

(b) Help watershed ecosystems adapt to climate change.

(c) Restore river parkways throughout the state, including, but
not limited to, projects begin insert pursuant to the California River Parkways
Act of 2004 (Chapter 3.8 (commencing with Section 5750) of
Division 5 of the Public Resources Code), end insert in the Urban Streams
Restoration Program established pursuant to Section 7048 begin insert , and
urban river greenways end insert .

(d) Protect and restore aquatic, wetland, and migratory bird
ecosystems, including fish and wildlife corridors begin insert and the
acquisition of water rights for instream flow pursuant to Section
1707 end insert .

(e) Fulfill the obligations of the State of California in complying
with the terms of begin delete multi-party end delete begin insert multiparty end insert settlement agreements
related to water resources.

(f) Remove barriers to fish passage.

(g) Collaborate with federal agencies in the protection of fish
native to California begin insert and wetlands in the central valley of California end insert .

(h) Implement fuel treatment projects to reduce wildfire risks,
protect watersheds tributary to water storage facilities, and promote
watershed health.

(i) Protect and restore begin insert rural and urban end insert watershed health to
improve watershed storage capacity, forest health, protection of
life and property, begin insert stormwater resource management, end insert and
greenhouse gas reduction.

begin insert

(j) Promote access and recreational opportunities to watersheds
and waterways that are compatible with habitat values and water
quality objectives.

end insert begin insert

(k) Promote educational opportunities to instruct and inform
Californians, including young people, about the value of
watersheds.

end insert

79732.  

For restoration and ecosystem protection projects under
this chapter, the services of the California Conservation Corps or
begin delete community end delete begin insert a local end insert conservation corps begin insert certified by the California
Conservation Corps end insert shall be used whenever feasible.

79733.  

(a)  begin delete Of end delete begin insert Notwithstanding Section 79711, of end insert begin insert end insert the funds
authorized in Section 79730, five hundred million dollars
($500,000,000) shall be available to fulfill the obligations of the
State of California in complying with the terms of any of the
following:

(1) The February 18, 2010, Klamath Basin Restoration
Agreement.

(2) The begin delete Qualification end delete begin insert Quantification end insert Settlement Agreement, as
defined in subdivision (a) of Section 1 of Chapter 617 of the begin delete Statues end delete
begin insert Statutes end insert of 2002.

(3) The San Joaquin River Restoration Settlement, as described
in Part I of Subtitle A of Title X of Public Law 111-11.

begin insert

(4) Section 3406(d) of Title 34 of Public Law 102-575.

end insert

(b) Of the funds authorized in Section 79730, two hundred fifty
million dollars ($250,000,000) shall be available to the Natural
Resources Agency to support projects of a state conservancy as
provided in the conservancy’s strategic plan.

79734.  

For the purposes of this chapter, the terms “protection”
and “restoration” have the meanings set forth in Section 75005 of
the Public Resources Code.

 

Chapter  7. Climate Change Preparedness for Regional
Water Security

 

79740.  

The sum of one billion five hundred million dollars
($1,500,000,000) shall be available, upon appropriation by the
Legislature from the fund, for expenditures and competitive grants
and loans to eligible projects that are included in, and implement
an adopted integrated regional water management plan consistent
with Part 2.2 (commencing with Section 10530) of Division 6.

79741.  

In order to improve regional water self-reliance security
and adapt to the effects on water supply arising out of climate
change, the purposes of this chapter are to:

(a) Help water infrastructure systems adapt to climate change begin insert ,
including, but not limited to, sea-level rise end insert .

(b) Incentivize water agencies throughout each watershed to
collaborate in managing the region’s water resources and setting
regional priorities for water infrastructure.

(c) Improve regional water self-reliance, including projects that
reduce reliance on the Delta in meeting California’s future water
supply needs, consistent with Section 85021.

(d) Fund the increment of project costs related to the project’s
public benefits.

79742.  

(a) In selecting among proposed projects in a
watershed, the scope of the adopted integrated regional water
management plan may be considered by the administering state
agency, with priority going to projects in plans that cover a greater
portion of the watershed. If a plan covers substantially all of the
watershed, then the plan’s project priorities shall be given
deference.

(b) An urban water supplier that does not prepare, adopt, and
submit its urban water management plan in accordance with the
Urban Water Management Planning Act (Part 2.6 (commencing
with Section 10610) of Division 6) is ineligible to begin delete receive end delete begin insert apply
for end insert funds made available pursuant to this chapter until the urban
water management plan is prepared and submitted in accordance
with the requirements of that act.

(c) An agricultural water supplier that does not prepare, adopt,
and submit its agricultural water management plan in accordance
with the Agricultural Water Management Planning Act (Part 2.8
(commencing with Section 10800) of Division 6) is ineligible to
begin delete receive end delete begin insert apply for end insert funds made available pursuant to this chapter
until the agricultural water management plan is prepared and
submitted in accordance with the requirements of that act.

begin insert

(d) A local agency that does not prepare, adopt, and submit its
groundwater management plan in accordance with Part 2.75
(commencing with Section 10750) of Division 6 is ineligible to
apply for funds made available pursuant to this chapter until the
plan is prepared and submitted in accordance with the
requirements of that part.

end insert begin delete

(d)

end delete

begin insert ( end insert begin insert e) end insert  For the purposes of awarding funding under this chapter, a
begin delete local end delete cost share begin insert from nonstate sources end insert of not less than 50 percent
of the total costs of the project shall be required. The cost sharing
requirement may be waived or reduced for projects that directly
benefit a disadvantaged community or an economically distressed
area.

begin delete

(e)

end delete

begin insert ( end insert begin insert f) end insert  Not less than 10 percent of the funds authorized by this
chapter shall be allocated to projects that directly benefit
disadvantaged communities.

begin delete

(f)

end delete

begin insert ( end insert begin insert g) end insert  For the purposes of awarding a grant under this chapter, the
applicant shall demonstrate that the integrated regional water
management plan the applicant’s project implements addresses
the risks in the region to water supply and water infrastructure
arising from climate change.

begin insert

(h) Projects that achieve multiple benefits shall receive special
consideration.

end insert

79743.  

Subject to the determination of regional priorities by
the regional water management group, eligible projects may
include, but are not limited to, projects that promote any of the
following:

(a) Water begin delete re-use end delete begin insert reuse end insert and recycling.

(b) Water-use efficiency and water conservation.

(c) Local and regional surface and underground water storage begin insert , end insert
begin insert including groundwater aquifer cleanup or recharge projects end insert .

(d) Regional water conveyance facilities that improve integration
of separate water systems.

(e) Watershed protection, restoration, and management projects.

(f) Stormwater resource management, including begin insert , end insert but not limited
to begin insert , end insert the following:

(1) Projects to reduce, manage, treat, or capture rainwater or
stormwater.

(2) Projects that provide multiple benefits such as water quality,
water supply, flood control, or open space.

(3) Decision support tools that evaluate the benefits and costs
of begin delete multi-benefit end delete begin insert multibenefit end insert stormwater projects.

(4) Projects to implement a stormwater resource plan developed
in accordance with Part 2.3 (commencing with Section 10560) of
Division 6.

(g) Conjunctive use of surface and groundwater storage
facilities.

(h) Water desalination begin insert projects, including end insert projects that
incorporate renewable energy generation and reduce Delta exports.

begin insert

(i) Decision support tools to model regional water management
strategies to account for climate change and other changes in
regional demand and supply projections.

end insert

79744.  

(a) Of the funds authorized in Section 79740, one
billion dollars ($1,000,000,000) shall be allocated to the hydrologic
regions as identified in the California Water Plan in accordance
with this section. For the South Coast hydrologic region, the
department shall establish three funding areas that reflect the
watersheds of San Diego County (designated as the San Diego
subregion), the Santa Ana River watershed and southern Orange
County (designated as the Santa Ana subregion), and the Los
Angeles and Ventura County watersheds (designated as the Los
Angeles subregion), and shall allocate funds to those areas in
accordance with this subdivision. The North and South Lahontan
hydrologic regions shall be treated as one area for the purpose of
allocating funds. For purposes of this subdivision, the Sacramento
River hydrologic region does not include the Delta. For purposes
of this subdivision, the Mountain Counties Overlay is not eligible
for funds from the Sacramento River hydrologic region or the San
Joaquin River hydrologic region. Multiple integrated regional
water management plans may be recognized in each of the areas
allocated funding.

(b) Funds made available by this chapter shall be allocated as
follows:

(1) North Coast: $45,000,000.

(2) San Francisco Bay: $132,000,000.

(3) Central Coast: $58,000,000.

(4) Los Angeles subregion: $198,000,000.

(5) Santa Ana subregion: $128,000,000.

(6) San Diego subregion: $87,000,000.

(7) Sacramento River: $76,000,000.

(8) San Joaquin River: $64,000,000.

(9) Tulare/Kern: $70,000,000.

(10) North/South Lahontan: $51,000,000.

(11) Colorado River Basin: $47,000,000.

(12) Mountain Counties Overlay: $44,000,000.

79745.  

(a) Of the funds authorized by 79740 up to two hundred
fifty million dollars ($250,000,000) may be used for direct
expenditures, grants, and loans for water conservation and water
use efficiency plans, projects, and programs, including either of
the following:

(1) Urban water conservation plans, projects, and programs,
including regional projects and programs, implemented to achieve
urban water use targets developed pursuant to Section 10608.20.
Priority for funding shall be given to programs that do any of the
following:

(A) Assist water suppliers and regions to implement
conservation programs and measures that are not locally
cost-effective.

(B) Support water supplier and regional efforts to implement
programs targeted to enhance water use efficiency for commercial,
industrial, and institutional water users.

(C) Assist water suppliers and regions with programs and
measures targeted toward realizing the conservation benefits of
implementation of the provisions of the state landscape model
ordinance.

(2) Agricultural water management plans or agricultural water
use efficiency projects and programs developed pursuant to Part
2.8 (commencing with Section 10800) of Division 6.

(b) Section 1011 applies to all conservation measures that an
agricultural water supplier or an urban water supplier implements
with funding under this chapter. This subdivision does not limit
the application of Section 1011 to any other measures or projects
implemented by a water supplier.

79746.  

Of the funds authorized by 79740, the sum of five
hundred million dollars ($500,000,000) shall be available, upon
appropriation by the Legislature from the fund, for grants and loans
for water recycling and advanced treatment technology projects,
including all of the following:

(a) Water recycling projects.

(b) Contaminant and salt removal projects, including, but not
limited to, groundwater and seawater desalination.

(c) Dedicated distribution infrastructure for recycled water and
commercial and industrial end-user retrofit projects to allow use
of recycled water.

(d) Pilot projects for new salt and contaminant removal
technology.

(e) Groundwater recharge infrastructure related to recycled
water.

(f) Technical assistance and grant writing assistance for
disadvantaged communities.

(g) For projects funded pursuant to this section, at least a 50
percent local cost share shall be required. That cost share may be
suspended or reduced for disadvantaged communities and
economically distressed areas.

(h) Projects funded pursuant to this section shall be selected on
a competitive basis, considering all of the following criteria:

(1) Water supply reliability improvement.

(2) Water quality and ecosystem benefits related to decreased
reliance on diversions from the Delta or instream flows.

(3) Public health benefits from improved drinking water quality.

(4) Cost effectiveness.

(5) Energy efficiency and greenhouse gas emission impacts.

begin insert

(i) For the purposes of this section, a plan or strategy by one
or more regional water agencies to incorporate water recycling
into the region’s water supplies shall satisfy the requirements for
an integrated regional water management plan, consistent with
Part 2.2 (commencing with Section 10530) of Division 6.

end insert

79747.  

In order to receive funding authorized by this chapter
to address groundwater quality or supply in an aquifer, the
applicant shall demonstrate that a public agency has authority to
manage the water resources in that aquifer. begin insert A groundwater
management plan adopted and approved pursuant to Part 2.75
(commencing with Section 10750) of Division 6 shall be deemed
sufficient to satisfy the requirements of this section. end insert

 

Chapter  8. begin insert Sacramento-San Joaquin end insert Delta
Sustainability

 

79750.  

(a) The sum of one billion ($1,000,000,000) shall be
available, upon appropriation by the Legislature from the fund,
for grants and direct expenditures to improve the sustainability of
the Delta.

(b) This chapter provides state funding for public benefits
associated with projects needed to assist in the Delta’s
sustainability as a vital resource for fish, wildlife, water quality,
water supply, agriculture, and recreation.

79751.  

In order to promote the sustainability and resiliency of
the Delta, the purposes of this chapter are to:

(a) Protect, restore, and enhance the Delta ecosystem.

(b) Maintain and improve existing Delta levees.

(c) Promote the sustainability of the Delta.

79752.  

The funds authorized in Section 79750 shall not be
used to pay the costs of exercising eminent domain.

79753.  

Any project funded by this chapter shall include a
partner begin insert that is a resident, landowner, public agency, or
organization end insert from one begin insert or more end insert of the five Delta counties. begin insert For the
purposes of this chapter, a partner from a Delta county shall have
a significant role in the development and implementation of the
funded project. end insert

79754.  

Funding authorized by this chapter for the purpose of
subdivision (a) of Section 79751 may include, but is not limited
to, the following:

(a) Projects to protect and restore native fish and wildlife
dependent on the Delta ecosystem, including improvement of
aquatic or terrestrial habitat or the removal or reduction of
undesirable invasive species.

(b) Projects to reduce greenhouse gas emissions from exposed
Delta soils.

(c) Scientific studies and assessments that support the projects
authorized under this section.

79755.  

begin insert (a) end insert begin insert   end insert Funding authorized by this chapter for the purpose
of subdivision (b) of Section 79751 shall reduce the risk of levee
failure and flood in the Delta and may be expended begin insert , consistent
with the Delta levee investment priorities recommended pursuant
to Section 85306, end insert for any of the following:

begin delete

(a)

end delete

begin insert ( end insert begin insert 1) end insert  Local assistance under the Delta levee maintenance
subventions program under Part 9 (commencing with Section
12980) of Division 6, as that part may be amended.

begin delete

(b)

end delete

begin insert ( end insert begin insert 2) end insert  Special flood protection projects under Chapter 2
(commencing with Section 12310) of Part 4.8 of Division 6, as
that chapter may be amended.

begin delete

(c)

end delete

begin insert ( end insert begin insert 3) end insert  Levee improvement projects that increase the resiliency of
levees within the Delta to withstand earthquake, flooding, or sea
level rise.

begin delete

(d)

end delete

begin insert ( end insert begin insert 4) end insert  Emergency response and repair projects.

begin insert

(b) All projects funded pursuant to this section shall be subject
to Section 79050.

end insert

 

Chapter  9. Water Storage for Climate Change

 

79760.  

(a) Notwithstanding Section 162, the commission may
make the determinations, findings, and recommendations required
of it by this chapter independent of the views of the director. All
final actions by the commission in implementing this chapter shall
be taken by a majority of the members of the commission at a
public meeting noticed and held pursuant to the Bagley-Keene
Open Meeting Act (Article 9 (commencing with Section 11120)
of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government
Code).

(b) Notwithstanding Section 13340 of the Government Code,
the sum of one billion five hundred million dollars
($1,500,000,000) is hereby continuously appropriated from the
fund, without regard to fiscal years, to the commission for public
benefits associated with water storage projects that improve the
operation of the state water system, are cost effective, and provide
a net improvement in ecosystem and water quality conditions, in
accordance with this chapter. Funds authorized for, or made
available to, the commission pursuant to this chapter shall be
available and expended only for the purposes provided in this
chapter, and shall not be subject to appropriation or transfer by the
Legislature or the Governor for any other purpose.

(c) Projects shall be selected by the commission through a
competitive public process that ranks potential projects based on
the expected return for public investment as measured by the
magnitude of the public benefits provided, pursuant to criteria
established under this chapter.

(d) Any project constructed with funds provided by this chapter
shall be subject to Section 11590.

79761.  

In order to expand the state’s water storage capacity to
address the impacts of climate change on the snow pack in the
Sierra Nevada Mountains and water storage resources, the purposes
of this chapter are to:

(a) Construct new surface water storage projects.

(b) Restore and expand groundwater aquifer storage capacity.

(c) Restore water storage capacity of existing surface water
storage reservoirs.

79762.  

Projects for which the public benefits are eligible for
funding under this chapter consist of only the following:

(a) Surface storage projects identified in the CALFED Bay-Delta
Program, except for projects prohibited by Chapter 1.4
(commencing with Section 5093.50) of Division 5 of the Public
Resources Code.

(b) Groundwater storage projects and groundwater
contamination prevention or remediation projects that provide
water storage benefits.

(c) Conjunctive use and reservoir reoperation projects.

(d) Local and regional surface storage projects that improve the
operation of water systems in the state and provide public benefits.

(e) Projects that remove sediment, improve dam stability in
seismic events or otherwise restore water storage capacity in
existing water storage reservoirs.

79763.  

A project shall not be funded pursuant to this chapter
unless it provides measurable improvements to the Delta ecosystem
or to the tributaries to the Delta.

79764.  

(a) Funds allocated pursuant to this chapter may be
expended solely for the following public benefits associated with
water storage projects:

(1) Ecosystem improvements, including changing the timing of
water diversions, improvement in flow conditions, temperature,
or other benefits that contribute to restoration of aquatic ecosystems
and native fish and wildlife, including those ecosystems and fish
and wildlife in the Delta begin insert or the Delta tributaries end insert .

(2) Water quality improvements in the Delta, or in other river
systems, that provide significant public trust resources, or that
clean up and restore groundwater resources.

(3) Flood control benefits, including, but not limited to, increases
in flood reservation space in existing reservoirs by exchange for
existing or increased water storage capacity in response to the
effects of changing hydrology and decreasing snow pack on
California’s water and flood management system.

(4) Emergency response, including, but not limited to, securing
emergency water supplies and flows for dilution and salinity
repulsion following a natural disaster or act of terrorism.

(5) Recreational purposes, including, but not limited to, those
recreational pursuits generally associated with the outdoors.

(b) Funds shall not be expended pursuant to this chapter for the
costs of environmental mitigation measures or compliance
obligations except for those associated with providing public
benefits as described in subdivision (a).

79765.  

In consultation with the Department of Fish and Game,
the State Water Resources Control Board, and the department, the
commission shall develop and adopt, by regulation, methods for
quantification and management of public benefits described in
Section 79764 by December 15, 2014. The regulations shall include
the priorities and relative environmental value of ecosystem
benefits as provided by the Department of Fish and Game and the
priorities and relative environmental value of water quality benefits
as provided by the State Water Resources Control Board.

79766.  

(a) Except as provided in subdivision (c), no funds
allocated pursuant to this chapter may be allocated for a project
before December 15, 2014, and until the commission approves the
project based on the commission’s determination that all of the
following have occurred:

(1) The commission has adopted the regulations specified in
Section 79765 and specifically quantified and made public the cost
of the public benefits associated with the project.

(2) The department has entered into a contract with each party
that will derive benefits, other than public benefits, as defined in
Section 79764, from the project that ensures the party will pay its
share of the total costs of the project. The benefits available to a
party shall be consistent with that party’s share of total project
costs.

(3) The department has entered into a contract with each public
agency identified in Section 79765 that administers the public
benefits, after that agency makes a finding that the public benefits
of the project for which that agency is responsible meet all the
requirements of this chapter, to ensure that the public contribution
of funds pursuant to this chapter achieves the public benefits
identified for the project.

(4) The commission has held a public hearing for the purposes
of providing an opportunity for the public to review and comment
on the information required to be prepared pursuant to this
subdivision.

(5) All of the following additional conditions are met:

(A) Feasibility studies have been completed.

(B) The commission has found and determined that the project
is feasible, is consistent with all applicable laws and regulations,
and will advance the long-term objectives of restoring ecological
health and improving water management for beneficial uses of the
Delta.

(C) All environmental documentation associated with the project
has been completed, and all other federal, state, and local approvals,
certifications, and agreements required to be completed have been
obtained.

(b) The commission shall submit to the Legislature its findings
for each of the criteria identified in subdivision (a) for a project
funded pursuant to this chapter.

(c) Notwithstanding subdivision (a), funds may be made
available under this chapter for the completion of environmental
documentation and permitting of a project.

79767.  

(a) The public benefit cost share of a project funded
pursuant to this chapter, other than a project described in
subdivision (c) of Section 79762, may not exceed 50 percent of
the total costs of any project funded under this chapter.

(b) No project may be funded unless it provides ecosystem
improvements as described in paragraph (1) of subdivision (a) of
Section 79764 that are at least 50 percent of total public benefits
of the project funded under this chapter.

(c) In order to receive funding authorized by this chapter to
improve groundwater storage in an aquifer, the applicant shall
demonstrate that a public agency has authority to manage the water
resources in that aquifer.

79768.  

(a) A project is not eligible for funding under this
chapter unless, by January 1, 2018, all of the following conditions
are met:

(1) All feasibility studies are complete and draft environmental
documentation is available for public review.

(2) The commission makes a finding that the project is feasible,
and will advance the long-term objectives of restoring ecological
health and improving water management for beneficial uses of the
Delta.

(3) The director receives commitments for not less than 75
percent of the nonpublic benefit cost share of the project.

(b) If compliance with subdivision (a) is delayed by litigation
or failure to promulgate regulations, the date in subdivision (a)
shall be extended by the commission for a time period that is equal
to the time period of the delay, and funding under this chapter that
has been dedicated to the project shall be encumbered until the
time at which the litigation is completed or the regulations have
been promulgated.

 

Chapter  10. Fiscal Provisions

 

79800.  

(a) Bonds in the total amount of six billion five hundred
million dollars ($6,500,000,000), or so much thereof as is
necessary, not including the amount of any refunding bonds issued
in accordance with Section begin delete 79812, or so much thereof as is
necessary, end delete begin insert 79812 end insert may be issued and sold to provide a fund to be
used for carrying out the purposes expressed in this division and
to reimburse the General Obligation Bond Expense Revolving
Fund pursuant to Section 16724.5 of the Government Code. The
bonds, when sold, shall be and constitute a valid and binding
obligation of the State of California, and the full faith and credit
of the State of California is hereby pledged for the punctual
payment of both principal of, and interest on, the bonds as the
principal and interest become due and payable.

(b) The Treasurer shall sell the bonds authorized by the
committee pursuant to this section. The bonds shall be sold upon
the terms and conditions specified in a resolution to be adopted
by the committee pursuant to Section 16731 of the Government
Code.

79801.  

The bonds authorized by this division shall be prepared,
executed, issued, sold, paid, and redeemed as provided in the State
General Obligation Bond Law (Chapter 4 (commencing with
Section 16720) of Part 3 of Division 4 of Title 2 of the Government
Code), and all of the provisions of that law apply to the bonds and
to this division and are hereby incorporated in this division as
though set forth in full in this division, except begin insert subdivisions (a) and
(b) of end insert Section 16727 of the Government Code begin delete shall not apply to
the extent that it is inconsistent with any other provision of this
division end delete .

79802.  

(a) Solely for the purpose of authorizing the issuance
and sale pursuant to the State General Obligation Bond Law
(Chapter 4 (commencing with Section 16720) of Part 3 of Division
4 of Title 2 of the Government Code) of the bonds authorized by
this division, the Climate Change Response for Clean and Safe
Drinking Water Finance Committee is hereby created. For purposes
of this division, the Climate Change Response for Clean and Safe
Drinking Water Finance Committee is “the committee” as that
term is used in the State General Obligation Bond Law.

(b) The committee consists of the Director of Finance, the
Treasurer, the Controller, the Director of Water Resources, and
the Secretary of the Natural Resources Agency. Notwithstanding
any other provision of law, any member may designate a begin delete deputy end delete
begin insert representative end insert to act as that member in his or her place for all
purposes, as though the member were personally present.

(c) The Treasurer shall serve as chairperson of the committee.

(d) A majority of the committee may act for the committee.

79803.  

The committee shall determine whether or not it is
necessary or desirable to issue bonds authorized pursuant to this
division in order to carry out the actions specified in this division
and, if so, the amount of bonds to be issued and sold. Successive
issues of bonds may be authorized and sold to carry out those
actions progressively, and it is not necessary that all of the bonds
authorized to be issued be sold at any one time.

79804.  

For purposes of the State General Obligation Bond
Law, “board,” as defined in Section 16722 of the Government
Code, means the Department of Water Resources.

79805.  

There shall be collected each year and in the same
manner and at the same time as other state revenue is collected,
in addition to the ordinary revenues of the state, a sum in an amount
required to pay the principal of, and interest on, the bonds each
year. It is the duty of all officers charged by law with any duty in
regard to the collection of the revenue to do and perform each and
every act that is necessary to collect that additional sum.

79806.  

Notwithstanding Section 13340 of the Government
Code, there is hereby appropriated from the General Fund in the
State Treasury, for the purposes of this division, an amount that
will equal the total of the following:

(a) The sum annually necessary to pay the principal of, and
interest on, bonds issued and sold pursuant to this division, as the
principal and interest become due and payable.

(b) The sum that is necessary to carry out the provisions of
Section 79809, appropriated without regard to fiscal years.

79807.  

The board may request the Pooled Money Investment
Board to make a loan from the Pooled Money Investment Account
in accordance with Section 16312 of the Government Code for the
purpose of carrying out this division begin insert less any amount withdrawn
pursuant to Section 79809 end insert . The amount of the request shall not
exceed the amount of the unsold bonds that the committee has, by
resolution, authorized to be sold for the purpose of carrying out
this division. The board shall execute those documents required
by the Pooled Money Investment Board to obtain and repay the
loan. Any amounts loaned shall be deposited in the fund to be
allocated in accordance with this division.

79808.  

Notwithstanding any other provision of this division,
or of the State General Obligation Bond Law, if the Treasurer sells
bonds that include a bond counsel opinion to the effect that the
interest on the bonds is excluded from gross income for federal
tax purposes under designated conditions begin insert or is otherwise entitled
to any federal tax advantage end insert , the Treasurer may maintain separate
accounts for the bond proceeds invested and for the investment
earnings on those proceeds, and may use or direct the use of those
proceeds or earnings to pay any rebate, penalty, or other payment
required under federal law or take any other action with respect
to the investment and use of those bond proceeds, as may be
required or desirable under federal law in order to maintain the
tax-exempt status of those bonds and to obtain any other advantage
under federal law on behalf of the funds of this state.

79809.  

For the purposes of carrying out this division, the
Director of Finance may authorize the withdrawal from the General
Fund of an amount or amounts not to exceed the amount of the
unsold bonds that have been authorized by the committee to be
sold for the purpose of carrying out this division begin insert less any amount
borrowed pursuant to Section 79807 end insert . Any amounts withdrawn
shall be deposited in the fund. Any money made available under
this section shall be returned to the General Fund, with interest at
the rate earned by the money in the Pooled Money Investment
Account, from proceeds received from the sale of bonds for the
purpose of carrying out this division.

79810.  

All money deposited in the fund that is derived from
begin delete premiums end delete begin insert premium end insert and accrued interest on bonds sold pursuant
to this division shall be reserved in the fund and shall be available
for transfer to the General Fund as a credit to expenditures for
bond interest begin insert , except that amounts derived from premium may be
reserved and used to pay the cost end insert begin insert of bond issuance prior to any
transfer to the General Fund end insert .

79811.  

Pursuant to Chapter 4 (commencing with Section
16720) of Part 3 of Division 4 of Title 2 of the Government Code,
the cost of bond issuance shall be paid out of the bond proceeds begin insert ,
including premium, if any end insert . begin delete These end delete begin insert To the extent the cost of bond
issuance is not paid from premiums received from the sale of bonds,
these end insert costs shall be shared proportionately by each program funded
through this division begin insert by the applicable bond sale end insert .

79812.  

The bonds issued and sold pursuant to this division
may be refunded in accordance with Article 6 (commencing with
Section 16780) of Chapter 4 of Part 3 of Division 4 of Title 2 of
the Government Code, which is a part of the State General
Obligation Bond Law. Approval by the begin delete electors end delete begin insert voters end insert of the state
for the issuance of the bonds under this division shall include
approval of the issuance of any bonds issued to refund any bonds
originally issued under this division or any previously issued
refunding bonds.

79813.  

The proceeds from the sale of bonds authorized by this
division are not “proceeds of taxes” as that term is used in Article
XIII B of the California Constitution, and the disbursement of
these proceeds is not subject to the limitations imposed by that
article.

SEC. 3.  

Section 2 of Chapter 3 of the Seventh Extraordinary
Session of the Statutes of 2009, as amended by Section 1 of
Chapter 74 of the Statutes of 2012, is repealed.

SEC. 4.  

Section 2 of this act shall be submitted to the voters
at the November 4, 2014, statewide general election in accordance
with provisions of the Government Code and the Elections Code
governing the submission of a statewide measure to the voters.

SEC. 5.  

Section 2 of this act shall take effect upon the approval
by the voters of the Climate Change Response for Clean and Safe
Drinking Water Act of 2014, as set forth in that section at the
November 4, 2014, statewide general election.