Amended in Senate March 18, 2014

Amended in Senate March 5, 2014

Amended in Senate January 7, 2014

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 Assembly Member Rendon

begin insert

(Coauthors: Assembly Members Ian Calderon and Yamada)

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 begin delete clean and safe end delete begin insert clean, safe, and reliable end insert 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, Rendon. begin delete Clean and Safe end delete begin insert Clean, Safe, and Reliable end insert 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 begin delete Clean and Safe end delete begin insert Clean, Safe, and Reliable end insert Drinking Water Act of 2014, which, if adopted by the voters, would authorize the issuance of bonds in the amount of $8,000,000,000 pursuant to the State General Obligation Bond Law to finance a begin delete clean and safe end delete begin insert clean, safe, and reliable end insert 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.  begin delete Clean and Safe end delete begin insert Clean, Safe, and
Reliable end insert 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 end delete begin insert Clean, Safe, and Reliable end insert Drinking Water Act of
2014.

 

Chapter  2. Findings

 

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. The Colorado River basin, which provides drinking water
to southern California, has experienced prolonged drought .

(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. The Department
of Finance projects that California’s population will reach 50
million by 2049.

(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.

(g) 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 healthy 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 begin insert and
potential reuse end insert 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 begin insert consistent with
Section 85021 end insert 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 begin delete Clean and Safe end delete begin insert Clean, Safe, and
Reliable end insert 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 Contra Costa,
Sacramento, San Joaquin, Solano, and Yolo.

(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 begin delete Clean and Safe end delete begin insert Clean, Safe, and Reliable end insert
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.

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

(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.

(r) “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).

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

(t) “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 financial assistance program pursuant to this
division may be used to pay the administrative costs of that
program.

79706.  

Unless otherwise specified, 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 data shall be collected and reported to the State Water
Resources Control Board in a manner that is compatible and
consistent with surface water monitoring data systems or
groundwater monitoring data systems administered by the State
Water Resources Control Board. Watershed monitoring data shall
be collected and reported to the Department of Conservation in a
manner that is compatible and consistent with the statewide
watershed program data system 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.
If the state agency previously has developed and adopted project
solicitation and evaluation guidelines that comply with the
requirements of this subdivision, it may use those guidelines.

(b) Prior to disbursing grants or loans, the state agency shall
conduct three public meetings to consider public comments prior
to finalizing the guidelines, as the implementing state agency
determines to be necessary. The state agency shall publish the draft
solicitation and evaluation guidelines on its Internet Web site at
least 30 days before any public meetings held pursuant to this
subdivision. 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 that address the most begin delete urgent end delete begin insert critical end insert
statewide needs and priorities for public funding.

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

begin delete

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

(d)

end delete

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

begin delete

(e)

end delete

begin insert (d) end insert  A funded project advances the purposes of the chapter from
which the project received funding.

begin delete

(f)

end delete

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

begin delete

(g)

end delete

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

begin delete

(h) Projects funded with proceeds from this division will
contribute to improving the sustainability of local communities.

end delete begin delete

(i)

end delete

begin insert (g) end insert  Except as provided in Sections 79726 and 79727, the costs
of stewardship, operation, and maintenance of the projects funded
by this division will be paid from other sources of revenue that are
sustainable over the long term.

begin delete

(j)

end delete

begin insert (h) end insert  Evaluation of projects considered for funding pursuant to
this division will include review by professionals in the fields
relevant to the proposed project.

begin delete

(k)

end delete

begin insert (i) end insert  To the extent practicable, a project supported by funds made
available by this division will include signage informing the public
that the project received funds from the begin delete Clean and Safe end delete begin insert Clean,
Safe, and Reliable end insert Drinking Water Act of 2014.

begin delete

(l)

end delete

begin insert (j) end insert  Projects funded with proceeds from this division will be
consistent with Division 7 (commencing with Section 13000) of
this code and Section 13100 of the Government Code.

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.

(c) If an audit, required by statute, 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.

(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.

79711.  

(a) Funds provided by this division shall not be
expended to support or pay for the costs of environmental
mitigation measures begin delete or environmental compliance obligations of
any party end delete 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.

(b) Funds provided by this division shall not be expended for
the acquisition or transfer of water rights except for a begin delete permanent end delete
dedication of water approved in accordance with Section
begin delete 1707 end delete begin delete where the state board specifies that the water is in addition
to water that is required for regulatory requirements as provided
in subdivision (c) of Section 1707. The requirement that a
dedication of water be permanent shall not preclude the expenditure
of funds provided by this division for the initiation of the dedication
as a short-term or temporary urgency change, that is approved in
accordance with Section 1707 and either Chapter 6.6 (commencing
with Section 1435) of, or Chapter 10.5 (commencing with Section
1725) of, Part 2 of Division 2, during the period required to prepare
any environmental documentation and for approval of permanent
dedication. end delete begin insert 1707. end insert

79712.  

Funds provided by this division shall not be expended
to pay the costs of the design, construction, operation, mitigation,
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 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 begin delete free flowing
condition of end delete begin insert values upon which end insert a wild and scenic river or any other
river begin insert is end insert afforded protections pursuant to the California Wild and
Scenic Rivers Act.

(f) Nothing in this division supersedes, limits, or otherwise
modifies the Sacramento-San Joaquin Delta Reform Act of 2009
(Division 35 (commencing with Section 85000)).

79714.  

Eligible applicants under this division are public
agencies, public utilities, federally recognized Indian tribes, state
Indian tribes listed on the Native American Heritage Commission’s
California Tribal Consultation List, and nonprofit organizations.
A public agency may use funding authorized by this division to
benefit recipients of water from mutual water companies that
operate a public water system if the funding provides public
benefits. To be eligible for funding under this division, a project
proposed by a public utility shall have a clear and definite public
purpose, benefit its customers, and comply with Public Utilities
Commission rules on government funding for public utilities.

79715.  

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

79716.  

(a) Unless otherwise specified, any state agency that
has the statutory authority to implement one or more of the
purposes specified in this bond may be eligible for appropriations
from the funding made available by this division.

(b) Funding made available by this division shall not be
appropriated to a specific project.

(c) Projects funded pursuant to this division begin delete shall end delete begin insert may end insert use the
services of the California Conservation Corps or certified
community conservation corps, as defined in Section 14507.5 of
the Public Resources Code begin delete , whenever feasible end delete .

begin insert

(d) The Legislature may approve multiyear budget change
proposals for appropriation of the funds authorized by this division.

end insert

79717.  

The proceeds of bonds issued and sold pursuant to this
division shall be deposited into the begin delete Clean and Safe end delete begin insert Clean, Safe,
and Reliable end insert Drinking Water Fund of 2014, which is hereby created
in the State Treasury.

begin delete

79718.  

(a) The funding authorized by this division shall be
subject to the oversight of a state agency established by statute for
that purpose.

(b) 

end delete

begin insert

begin insert 79718. end insert   

end insert

Each state agency that receives an appropriation of
funding made available by this division shall be responsible for
establishing metrics of success and reporting the status of projects
and all uses of the funding on the state’s bond accountability
Internet Web site, as provided by statute.

 

Chapter  5. 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 a beneficial use. 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
multibenefit stormwater quality projects.

(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, safe, and affordable 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. 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.

(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.

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

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,
selenium, hexavalent chromium, mercury, PCE
(perchloroethylene), TCE (trichloroethylene), DCE
(dichloroethene), DCA (dichloroethane), 1, 2, 3 TCP
(trichloropropane), carbon tetrachloride, 1,4-dioxane,
1,4-dioxacyclohexane, nitrosodimethylamine, bromide, iron,
manganese, and uranium.

79725.  

Of the funds authorized in Section 79720, not less than
four hundred million dollars ($400,000,000) 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. Projects begin delete shall end delete begin insert may end insert include, but not be limited to,
projects that identify, plan, design, and implement regional
mechanisms to consolidate wastewater systems or provide
affordable treatment technologies.

79726.  

(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 begin insert or replace end insert 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.

79727.  

(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, for a period not to exceed two years.
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
benefits or are 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.

79728.  

Of the funds authorized in Section 79720, up to one
hundred million dollars ($100,000,000) shall be available for
improving groundwater quality, including, but not limited to, the
costs of planning, design, and construction of improvements
necessary to resume delivery of safe drinking water.

79729.  

(a) For 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.

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

(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.

(d) Funding for planning activities, including technical
assistance, to benefit disadvantaged communities may exceed 10
percent of the funds allocated, subject to the determination of the
need for additional planning funding by the state agency
administering the funding.

 

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

 

79730.  

begin delete (a) end delete begin delete   end delete 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 multibenefit ecosystem and watershed
protection and restoration projects in accordance with statewide
priorities.

begin delete

(b) Of the funds made available by this section, the following
specified amounts shall be made available to the specified regions,
with consideration of the population of each region:

(1) _____ million dollars ($_____) for the North Coast region.

(2) _____ million dollars ($_____) for the San Francisco Bay
Area.

(3) _____ million dollars ($_____) for the Sierra Nevada and
Cascade Range region.

(4) _____ million dollars ($ ____) for the Central Coast region.

(5) _____ million dollars ($_____) for the Central Valley region.

(6) _____ million dollars ($_____) for the Southern California
region.

end delete

begin insert

begin insert 79731. end insert   

(a) Of the funds made available by this chapter, the
following specified amounts shall be made available to the
specified regions for any purpose described in Section 79732 or
for a region-specific purpose or priority identified below:

(1) Seventy-six million dollars ($76,000,000) for the North Coast
region with a priority for protection and restoration of anadromous
fish populations and coastal watersheds.

(2) One hundred nine million dollars ($109,000,000) for the
San Francisco Bay Area, not including the Delta, with a priority
for protection and restoration of regional watersheds or watersheds
that provide water supply to the region.

(3) One hundred nine million dollars ($109,000,000) for the
Sierra Nevada and Cascade Range region, with a priority for
protection and restoration of watersheds that produce water for
the statewide water system.

(4) Seventy-six million dollars ($76,000,000) for the Central
Coast region, with a priority for protection of coastal resources.

(5) Seventy-six million dollars ($76,000,000) for the Central
Valley region, not including the Delta.

(6) One hundred forty-two million dollars ($142,000,000) for
the region in the jurisdiction of the California Regional Water
Quality Control Board, Los Angeles, with a priority for protection,
restoration, and connectivity of the Los Angeles or San Gabriel
Rivers and the tributaries of those rivers. Additional region-specific
purposes shall include the following:

(A) Programs to support the State of California’s exercise of
its sovereign right to manage the Los Angeles River in
collaboration with the communities through which it passes.

(B) Multibenefit programs to protect and restore the Santa
Monica Mountains and San Gabriel Mountains watersheds.

(C) Multibenefit programs that address water quality and water
supply issues related to the region’s urban watersheds and
communities.

(D) Multibenefit programs to improve connectivity and create
greenways along rivers, including projects that build connections
between the river and the neighborhoods through which it passes
and provide for river-based recreation.

(E) Multibenefit programs that build partnerships between the
State of California and local governments near rivers and promote
education and engagement of the local communities, especially
disadvantaged communities, in decisions as to the management
of rivers.

(7) Seventy-six million dollars ($76,000,000) for the region in
the jurisdiction of the California Regional Water Quality Control
Board, Santa Ana, with a priority for protection and restoration
of the Santa Ana River watershed or groundwater resources.

(8) Seventy-six million dollars ($76,000,000) for the region in
the jurisdiction of the California Regional Water Quality Control
Board, San Diego, for protection and restoration of the region’s
watersheds.

(9) Ten million dollars ($10,000,000) for the region in the
jurisdiction of the California Regional Water Quality Control
Board, Lahontan or Colorado River Basin, for protection and
restoration of the region’s watersheds and wetland resources.

(b) In selecting projects for funding, a state agency that receives
an appropriation of funds available pursuant to this section shall
seek, consider, and incorporate comments from communities that
are adjacent or near the proposed project.

(c) In order to promote community participation in watershed
protection efforts, a state agency that receives an appropriation
of funds available pursuant to this section may disburse funding
to a nonprofit organization before the organization has incurred
expenses for the project, subject to the state agency’s careful
supervision and oversight of the organization’s expenditure of
funding authorized by this chapter.

end insert

begin delete 79731. end delete
begin insert 79732. end insert   

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) Implement watershed adaptation projects in order to reduce
the impacts of climate change on California’s communities and
ecosystems.

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

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

(e) Fulfill the obligations of the State of California in complying
with the terms of multiparty 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 and wetlands in the central valley of California.

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

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

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

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

(l) Protect and restore coastal watersheds, including, but not
limited to, bays, marine estuaries, and nearshore ecosystems.

(m) Reduce pollution or contamination of rivers, lakes, streams,
or coastal waters, prevent and remediate mercury contamination
from legacy mines, and protect or restore natural system functions
that contribute to water supply, water quality, or flood management.

(n) Assist in the recovery of endangered, threatened, or
migratory species by improving watershed health, instream flows
pursuant to Section 1707, fish passage, coastal or inland wetland
restoration, or other means, such as natural community
conservation plan and habitat conservation plan implementation.

(o) Promote urban forestry pursuant to the Urban Forest Act of
1978 (Chapter 2 (commencing with Section 4799.06) of Division
4 of the Public Resources Code).

begin delete 79732. end delete
begin insert 79733. end insert   

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

begin delete 79733. end delete
begin insert 79734. end insert   

(a) Notwithstanding Section 79711, of 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 or Klamath Hydroelectric Settlement Agreement.

(2) The Quantification Settlement Agreement, as begin delete defined end delete
begin insert provided end insert in subdivision (a) of Section 1 of Chapter 617 of the
Statutes of 2002 begin insert and in Chapters 611, 612, and 613 of the Statutes
of 2003 end insert .

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

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

(5)  begin delete Other multiparty settlement agreements in effect as of
January 1, 2014, including the end delete begin insert The end insert Tahoe Regional Planning
Compact set forth in Section 66801 of the Government Code
begin insert pursuant to Title 7.42 (commencing with Section 66905) of the
Government Code 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 begin delete Agency end delete begin insert Agency, subject to appropriation and direction
by the Legislature, end insert to support projects of a state begin delete conservancy end delete
begin insert conservancy, not including the Delta Conservancy, end insert as provided in
the conservancy’s strategic plan.

(c) In order to guide the expenditure of funds described in this
chapter, the Natural Resources Agency shall develop a statewide
natural resource protection plan to identify priorities consistent
with the purposes of this section. All expenditures by state
conservancies and state agencies of funds described in this section
shall advance the priorities set forth in the statewide natural
resource protection plan. begin insert The plan shall aggregate and coordinate
existing state planning efforts and shall be completed within one
year of voter approval of this division. end insert

(d) In coordination with the Natural Resources Agency, all state
conservancies expending funds provided pursuant to subdivision
(b) shall provide begin delete biannual end delete begin insert biennial end insert written reports to the Natural
Resources Agency on expenditures made and how those
expenditures advance the statewide priorities set forth in the
statewide natural resource protection plan developed pursuant to
subdivision (c). The Natural Resources Agency shall produce and
make available to the public begin delete biannual end delete begin insert biennial end insert written reports on
total expenditures made and progress toward meeting statewide
priorities.

begin delete 79734. end delete
begin insert 79735. end insert   

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 begin insert and Drought end insert Preparedness
for Regional Water Security

 

79740.  

The sum of two billion dollars ($2,000,000,000) shall
be available, upon appropriation by the Legislature from the fund,
for expenditures and competitive grants and loans to projects that
respond to climate change and contribute to regional water security
as provided in this chapter.

79741.  

In order to improve regional water self-reliance begin delete security end delete
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,
including, but not limited to, sea level rise.

(b) Provide incentives for 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 future reliance on the Delta watershed in meeting
California’s future water supply needs, consistent with Section
85021.

(d) Fund the increment of project begin delete costs end delete begin insert costs, up to 50 percent
of the total cost of a project, end insert related to the project’s public begin delete benefits. end delete
begin insert benefits, defined as follows: end insert

begin insert

(1) Any regional self-reliance improvement to meet water supply
needs.

end insert begin insert

(2) Any net improvement to public trust resources, including
the conservation of species listed as endangered or threatened
under the federal Endangered Species Act of 1973 (16 U.S.C. Sec.
1531 et seq.) or the California Endangered Species Act (Chapter
1.5 (commencing with Section 2050) of Division 3) of the Fish and
Game Code.

end insert

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 apply for 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
apply for 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.

(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. The groundwater management plan requirement shall
not apply to a water replenishment district formed pursuant to
Division 18 (commencing with Section 60000) or to a local agency
that serves or has authority to manage an adjudicated groundwater
basin.

(e) For the purposes of awarding funding under this chapter, a
cost share from nonstate sources 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.

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

(g) For the purposes of awarding funding under begin delete this chapter end delete
begin insert Section 79744 end insert , the applicant shall demonstrate that the integrated
regional water management plan the applicant’s project implements
begin delete addresses end delete begin insert contributes to addressing end insert the risks in the region to water
supply and water infrastructure arising from climate change.

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

79743.  

Subject to the determination of regional priorities by
the regional water management group begin insert and the purposes described
in Section 79741 end insert , begin delete eligible end delete projects begin insert eligible for funding allocated
regionally by Section 79744 end insert may include, but are not limited to,
projects that promote any of the following:

(a) Water reuse and recycling begin insert for non end insert begin insert potable reuse and direct
and indirect potable reuse end insert .

(b) Water-use efficiency and water conservation.

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

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

(e) Watershed protection, restoration, and management projects begin insert ,
including projects that reduce the risk of wildfire or improve water
supply reliability end insert .

(f) Stormwater resource management, including, but not limited
to, 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 multibenefit 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 delete projects, including projects that
incorporate renewable energy generation and reduce regional
reliance on water from the Delta watershed to meet California’s
future water supply needs pursuant to Section 85021. end delete begin insert projects. end 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.

79744.  

(a) Of the funds authorized in Section 79740, the sum
of 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 begin insert and southern Orange
County end insert (designated as the San Diego subregion), the Santa Ana
River watershed begin delete and southern Orange County end delete (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 described in this section shall be allocated as follows:

(1) Forty-five million dollars ($45,000,000) for the North Coast
hydrologic region.

(2) One hundred thirty-two million dollars ($132,000,000) for
the San Francisco Bay hydrologic region.

(3) Fifty-eight million dollars ($58,000,000) for the Central
Coast hydrologic region.

(4) One hundred ninety-eight million dollars ($198,000,000)
for the Los Angeles subregion.

(5) One hundred twenty-eight million dollars ($128,000,000)
for the Santa Ana subregion.

(6) Eighty-seven million dollars ($87,000,000) for the San Diego
subregion.

(7) Seventy-six million dollars ($76,000,000) for the Sacramento
River hydrologic region.

(8) Sixty-four million dollars ($64,000,000) for the San Joaquin
River hydrologic region.

(9) Seventy million dollars ($70,000,000) for the Tulare/Kern
hydrologic region.

(10) Fifty-one million dollars ($51,000,000) for the North/South
Lahontan hydrologic region.

(11) Forty-seven million dollars ($47,000,000) for the Colorado
River Basin hydrologic region.

(12) Forty-four million dollars ($44,000,000) for the Mountain
Counties Overlay.

(c) Funds allocated pursuant to this section may be used for the
purposes described in Sections 79745 and 79747.

79745.  

(a) Of the funds authorized by Section 79740, two
hundred fifty million dollars ($250,000,000) shall be begin delete used end delete begin insert available end insert
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. Of the funds
provided by this section, one hundred million dollars
($100,000,000) shall be available for improving on-farm water
use efficiency, including, but not limited to, drip irrigation.

(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.

begin insert

(c) For purposes of this section, funded projects shall not be
required to comply with the requirements of the Integrated
Regional Water Management Planning Act of 2002 (Part 2.2
(commencing with Section 10530) of Division 6). The funding
available pursuant to this section may be appropriated to an
integrated regional water management program or plan.

end insert

79746.  

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

(a) Water recycling projects, including, but not limited to,
treatment, storage, conveyance, and distribution facilities for
potable and nonpotable recycling projects.

(b) Contaminant and salt removal projects, including, but not
limited to, groundwater and seawater desalination begin insert and associated
treatment, storage, conveyance, and distribution facilities end insert .

(c) Dedicated distribution infrastructure to serve residential,
agricultural, commercial, and industrial end-users to allow the 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.

begin insert

(h) Water supply reliability improvement for critical urban
water supplies in designated superfund areas with groundwater
contamination listed on the National Priorities List established
pursuant to Section 105 of the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, as amended
(42 U.S.C. Sec. 9605(a)(8)(B)).

end insert begin delete

(h)

end delete

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

(1)  begin delete Water end delete begin insert Regional water end insert 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.

(6) Reasonable geographic allocation to eligible projects
throughout the state begin delete that contribute to attainment of the statewide
recycled water goal as established in Section 13577 end delete begin insert including both
northern and southern California and coastal and inland regions end insert .

begin delete

(i)

end delete

begin insert ( end insert begin insert j) end insert  For the purposes of this section, eligible projects shall
implement a plan or strategy by one or more regional water
agencies or integrated regional water management groups to
incorporate water recycling begin insert or advanced treatment technology end insert into
the region’s water begin delete supplies . end delete begin insert supplies. end insert

begin delete

(j)

end delete

begin insert (k) end insert  For purposes of this section, competitive programs shall be
implemented consistent with water recycling programs
administered pursuant to Sections 79140 and 79141 begin insert or consistent
with desalination programs administered pursuant to Sections
79545 and 79547.2 end insert .

begin delete

(k) Fifty percent of the moneys available pursuant to this section
shall be allocated for grants and 50 percent shall be allocated for
a low-interest loan program.

end delete begin insert

(l) For purposes of this section, funded projects shall not be
required to comply with the requirements of the Integrated
Regional Water Management Planning Act of 2002 (Part 2.2
(commencing with Section 10530) of Division 6).

end insert

79747.  

(a) It is the policy of the State of California that
stormwater shall be managed for water supply benefits to the
maximum extent possible, in conjunction with other benefits that
effective stormwater management may provide. Funding for
stormwater management shall be drawn from federal, state,
regional, and local agency resources, to the extent available.

(b) Of the funds authorized by Section 79740, two hundred fifty
million dollars ($250,000,000) shall be available for grants and
loans for multibenefit stormwater management projects.

(c) Eligible projects may include, but shall not be limited to,
green infrastructure, rainwater and stormwater capture projects,
and stormwater treatment facilities.

(d) Development of plans for stormwater projects shall address
the entire watershed and incorporate the perspectives of
communities adjacent to the affected waterways, especially
disadvantaged communities.

begin insert

(e) For purposes of this section, funded projects shall not be
required to comply with the requirements of the Integrated
Regional Water Management Planning Act of 2002 (Part 2.2
(commencing with Section 10530) of Division 6). The funding
available pursuant to this section may be appropriated to an
integrated regional water management program or plan.

end insert

79748.  

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. 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.

 

Chapter  8. Sacramento-San Joaquin Delta
Sustainability

 

79750.  

(a) The sum of one billion dollars ($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 begin delete Delta. end delete begin insert Delta end insert begin insert as follows: end insert

begin insert

(1) Four hundred million dollars ($400,000,000) of the funding
available pursuant to this chapter shall be available for the purpose
identified in subdivision (b) of Section 79751.

end insert begin insert

(2) Six hundred million dollars ($600,000,000) of the funding
available pursuant to this chapter shall be available for the
purposes identified in subdivisions (a) and (c) of Section 79751.

end insert begin insert

(3) Funding available pursuant to paragraphs (1) and (2) may
be combined to provide funding to projects that accomplish more
than one of the purposes identified in Section 79751.

end insert

(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 a public agency exercising eminent domain
to acquire or use property. All property acquired with moneys
available pursuant to this chapter shall be acquired from willing
sellers.

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.  

(a) 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, consistent
with the Delta levee investment priorities recommended pursuant
to Section 85306, for any of the following:

(1) 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.

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

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

(4) Emergency response and repair projects.

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

 

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).

begin delete

(b) (1) The commission shall submit its project selections to
any state agency created by statute for the purpose of oversight of
bond acts for confirmation of compliance with applicable legal
requirements.

end delete begin delete

(2)

end delete

begin insert (b) end insert  The commission shall submit project status reports as
requested to the Department of begin delete Finance or the state agency created
by statute described in paragraph (1). end delete begin insert Finance. end insert

(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) Only projects selected by the commission shall be eligible
for funding authorized by this chapter. Funding authorized by this
chapter shall be appropriated to the commission.

(e) The commission shall, to the extent feasible, maximize the
following:

(1) Leveraging of the funding made available in this chapter
with funds from federal, local, and private sources.

(2) Statewide storage benefits or regional storage benefits that
promote regional self-reliance.

79761.  

(a) The sum of two billion five hundred million dollars
($2,500,000,000) shall be available from the fund to the
commission, for expenditures, competitive grants, and loans for
public benefits associated with projects that expand the state’s
water storage capacity.

(b) (1)  Five hundred million dollars ($500,000,000) is hereby
appropriated to the commission from the moneys available pursuant
to subdivision (a) for the purposes of this chapter during each of
the fiscal years from the 2015-16 fiscal year to the 2019-20 fiscal
year, inclusive, unless the moneys in the fund available for this
chapter pursuant to subdivision (a) are exhausted.

(2) Funds appropriated pursuant to this subdivision shall be
available for encumbrance for three years in accordance with
Section 16304 of the Government Code. Any unencumbered
balance after three years shall revert to the fund for the purpose
of this chapter.

(3) The Legislature may augment the appropriations made
pursuant to this subdivision until the funds are exhausted.

(c) The Legislature shall retain authority and responsibility for
oversight of the commission and expenditure of the funding
authorized by this chapter.

79762.  

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.

(d) Remediate or prevent contamination of groundwater aquifers.

(e) Construct and expand stormwater retention facilities.

79763.  

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 begin insert Record of Decision, dated August 28, 2000 end insert , 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, including, but not limited
to, reservoirs for storing recycled water.

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

begin delete

(f) Projects that the United States Bureau of Reclamation
develops through its Water SMART storage program.

end delete

79764.  

A project in the Delta watershed or an area that receives
water from the Delta watershed shall begin delete not be funded end delete begin insert be eligible for
funding end insert pursuant to this chapter begin delete unless it provides measurable
improvements to the Delta ecosystem or to the Delta watershed end delete begin insert to
further the policy set forth in Section 85021 end insert .

79765.  

(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 or the Delta tributaries.

(2) Water quality improvements in the Delta, or in other river
systems, that provide significant public trust fish and wildlife
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) Regional water storage benefits for more than one drinking
water supplier or more than 3,000,000 people.

begin insert

(5) 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.

end insert

(b) Funds shall not be expended pursuant to this chapter for the
costs of environmental mitigation measures or compliance
obligations .

79766.  

In consultation with the Department of Fish and
Wildlife, 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 79765 by December 15, begin delete 2014 end delete begin insert 2015 end insert . The
regulations shall include the priorities and relative environmental
value of ecosystem benefits as provided by the Department of Fish
and Wildlife and the priorities and relative environmental value
of water quality benefits as provided by the State Water Resources
Control Board.

79767.  

(a) Except as provided in subdivision (c), no funds
allocated pursuant to this chapter may be allocated for a project
begin delete before December 15, 2014, and end delete 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 79766 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 79765, 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 79766 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, if the project is in the Delta watershed or an area that receives
water from the Delta watershed, will advance begin insert one or more of end insert the
policy objectives specified in Section 85020.

(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.

79768.  

(a) The public benefit cost share of a project funded
pursuant to this chapter shall not exceed 50 percent of the total
costs of any project funded under this chapter.

(b) 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.

79769.  

(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 begin delete uses . end delete begin insert uses. end insert

(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.

79770.  

(a) Funding authorized by this chapter shall not be
used to pay any share of the costs of remediation attributed to
parties responsible for the contamination of a groundwater storage
aquifer, but may be used to pay costs that cannot be recovered
from responsible parties. Parties that receive funding for
remediating groundwater storage aquifers shall exercise their best
efforts to recover the costs of groundwater cleanup from the parties
responsible for the contamination.

(b) Projects that leverage funding from local agencies and
responsible parties to the maximum extent possible shall receive
priority consideration in groundwater storage project selection.

 

Chapter  10. Fiscal Provisions

 

79800.  

(a) Bonds in the total amount of eight billion dollars
($8,000,000,000), or so much thereof as is necessary, not including
the amount of any refunding bonds issued in accordance with
Section 79812 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 subdivisions (a) and
(b) of Section 16727 of the Government Code.

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 begin delete Clean and Safe end delete begin insert Clean, Safe, and Reliable end insert Drinking
Water Finance Committee is hereby created. For purposes of this
division, the begin delete Clean and Safe end delete begin insert Clean, Safe, and Reliable end insert 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
representative 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 less any amount withdrawn
pursuant to Section 79809. 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 or is otherwise entitled
to any federal tax advantage, 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 less any amount
borrowed pursuant to Section 79807. Any amounts withdrawn
shall be deposited in the fund. Any moneys made available under
this section shall be returned to the General Fund, with interest at
the rate earned by the moneys in the Pooled Money Investment
Account, from proceeds received from the sale of bonds for the
purpose of carrying out this division.

79810.  

All moneys deposited in the fund that are derived from
premium 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, except that amounts derived from premium may be
reserved and used to pay the cost of bond issuance prior to any
transfer to the General Fund.

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,
including premium, if any. To the extent the cost of bond issuance
is not paid from premiums received from the sale of bonds, these
costs shall be shared proportionately by each program funded
through this division by the applicable bond sale.

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 voters 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 begin delete Clean and Safe end delete begin insert Clean, Safe, and Reliable end insert
Drinking Water Act of 2014, as set forth in that section at the
November 4, 2014, statewide general election.