BILL NUMBER: SB 42 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 15, 2013
INTRODUCED BY Senator Wolk
DECEMBER 11, 2012
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 2012,
2009, relating to a clean, secure water
supply and Delta recovery safe drinking water, water
quality, and flood protection program, by providing the funds
necessary therefor through an election for the issuance and sale of
bonds of the State of California and for the handling and disposition
of those funds , and declaring the urgency thereof,
to take effect immediately .
LEGISLATIVE COUNSEL'S DIGEST
SB 42, as amended, Wolk. The California Clean, Secure
Water Supply and Delta Recovery Act of 2014. Safe
Drinking Water, Water Quality, and Flood Protection Act of 2014.
(1) Existing law creates the Safe, Clean, and Reliable Drinking
Water Supply Act of 2012, which, if approved by the voters, would
authorize the issuance of bonds in the amount of $11,140,000,000
pursuant to the State General Obligation Bond Law to finance a safe
drinking water and water supply reliability program. 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 California Clean, Secure Water
Supply and Delta Recovery Safe Drinking Water, Water
Quality, and Flood Protection Act of 2014, which, if adopted by
the voters, would authorize the issuance of bonds in an
unspecified the amount of $5,600,000,000
pursuant to the State General Obligation Bond Law to finance a
clean, secure water supply and Sacramento-San Joaquin Delta
recovery safe drinking water, water quality, and flood
protection program.
The bill would provide for the submission of the bond act to the
voters at the November 4, 2014, statewide general election.
(3) This bill would declare that it is to take effect immediately
as an urgency statute.
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Water Code is repealed.
SEC. 2. Division 26.7 (commencing with Section
79700) is added to the Water Code, to read:
DIVISION 26.7. The California Clean, Secure Water Supply and
Delta Recovery Act of 2014
CHAPTER 1. GENERAL PROVISIONS
79700. This division shall be known and may be cited as the
California Clean, Secure Water Supply and Delta Recovery Act of 2014.
79702. The Legislature finds and declares all of the following:
(a) Clean and secure water supplies are critical to sustaining
California's communities, strengthening businesses, and preserving
our state's strong agricultural heritage.
(b) The Delta's agricultural heritage, water supply
infrastructure, and ecological resources are vital to California's
economy.
(c) Immediate action is necessary to reverse the severe ecosystem
decline of the Delta and to safeguard the communities, economy, and
vital infrastructure of the Delta.
(d) The security of critical state resources within the Delta
relies upon the strength and integrity of the levee system.
(e) Adequate flood protection is essential to protecting
California's communities.
(f) Frequent drought, polluted groundwater aquifers, aging water
supply infrastructure, rising water treatment costs, inadequate flood
protection, a changing climate, and watershed degradation, among
other challenges, threaten California's ability to sustain and
protect its communities, its businesses, and its farms.
(g) Improved local, regional, and statewide water resource
management ensures California communities are able to efficiently
respond to drought and climate change.
(h) Funds provided by this division shall not be expended for the
design, construction, operation, or maintenance of Delta conveyance
projects. These costs are the responsibility of the water agencies
that benefit from those facilities.
(i) Ecosystem restoration funds provided by this division shall
not be expended for environmental mitigation measures except as part
of the environmental mitigation costs associated with projects funded
by this division.
79704. The proceeds of bonds issued and sold pursuant to this
division shall be deposited in the Clean, Secure Water Supply and
Delta Recovery Program Fund, which is hereby created.
79706. As used in this division, the following terms have the
following meanings:
(a) "Committee" means the Finance Committee created pursuant to
Section 79774.
(b) "Fund" means the Clean, Secure Water Supply and Delta Recovery
Program Fund created pursuant to Section 79704.
(c) "Delta" means the Sacramento-San Joaquin Delta.
CHAPTER 2. DELTA SECURITY AND RECOVERY
79710. (a) This chapter provides state funding for public benefit
projects that assist in recovering and safeguarding the Delta's
resources including agriculture, water quality, water supply,
recreation, fish, and wildlife.
(b) The sum of ____ dollars ($____) shall be available, upon
appropriation by the Legislature, to the Sacramento-San Joaquin Delta
Conservancy for grants and direct expenditures to help ensure
economic sustainability, Delta levee integrity, water quality
improvements, local water supply reliability, protection of critical
infrastructure, and terrestrial and aquatic ecosystem restoration
within the Delta and the Suisun Marsh.
(c) For purposes of implementing this chapter, the Sacramento-San
Joaquin Delta Conservancy shall take into consideration the economic
sustainability plan developed by the Delta Protection Commission
pursuant to Section 29759 of the Public Resources Code and the Delta
Plan developed by the Delta Stewardship Council pursuant to Section
85300.
CHAPTER 3. REGIONAL WATER SUPPLY SECURITY
79720. The sum of ____ dollars ($____) shall be available, upon
appropriation by the Legislature, for projects that help achieve
local and regional water management objectives, including, but not
limited to, improved drinking water supplies, water quality, water
treatment, municipal and agricultural water efficiency, reduced
reliance on the Delta, climate change resiliency, and watershed
ecosystem stewardship. Projects shall implement adopted integrated
regional water management plans in accordance with Part 2.2
(commencing with Section 10530) of Division 6.
79722. From the funds described in Section 79720, at least ____
dollars ($____) shall be available for water recycling and advanced
treatment technology projects that improve regional water quality or
regional water supply.
79724. From the funds described in Section 79720, at least ____
dollars ($____) shall be available for groundwater management
projects that prevent or reduce the contamination of groundwater that
serves as a source of drinking water.
CHAPTER 4. CLEAN DRINKING WATER
79730. The sum of ____ dollars ($____) shall be available, upon
appropriation by the Legislature, for projects that help ensure
access to clean, safe, and affordable drinking water for California's
communities. Eligible expenditures include, but are not limited to,
projects that address the critical and immediate needs of
disadvantaged, rural, or small communities and projects that leverage
state and federal drinking water quality and wastewater treatment
funds.
CHAPTER 5. PROTECTION OF RIVERS, LAKES, AND WATERSHEDS
79740. The sum of ____ dollars ($____) shall be available, upon
appropriation by the Legislature, to the Wildlife Conservation Board
for projects that protect and restore natural hydrologic and
ecological systems in watersheds that serve as sources of drinking
water.
79742. Prior to the expenditure of funds appropriated pursuant to
Section 79740, the Wildlife Conservation Board, in coordination with
state conservancies and the Natural Resources Agency, shall develop
an expenditure plan to guide the expenditure of funds. The
expenditure plan shall recognize and address regional and statewide
watershed protection and restoration priorities. Projects funded by
this chapter shall be selected through a competitive process.
CHAPTER 6. STATEWIDE WATER SUPPLY IMPROVEMENTS
79750. The sum of ____ dollars ($____) shall be available, upon
appropriation by the Legislature, for public benefits associated with
water storage and delivery projects that advance adopted state water
policies. Priority shall be given to the construction,
rehabilitation, or expansion of facilities that enable reduced
reliance on Delta exports during ecologically sensitive periods, as
well as projects that reoperate existing facilities to maximize water
supply or ecosystem benefits. Public benefits eligible for funding
under this section are limited to ecosystem restoration, water
quality improvements, and flood protection. Projects funded by this
chapter shall be selected through a competitive process.
CHAPTER 7. FLOOD PROTECTION
79760. The sum of ____ dollars ($____) shall be available, upon
appropriation by the Legislature, to the Department of Water
Resources for projects that support integrated flood management in
the Sacramento and San Joaquin Valleys, in accordance with the
Central Valley Flood Protection Plan described in Section 9612.
CHAPTER 8. FISCAL PROVISIONS
79770. Bonds in the total amount of ____ dollars ($____), or so
much thereof as is necessary, not including the amount of any
refunding bonds, or so much thereof as is necessary, may be issued
and sold to provide a fund to be used for carrying out the purposes
expressed in this division and to reimburse the General Obligation
Bond Expense Revolving Fund pursuant to Section 16724.5 of the
Government Code. The bonds, when sold, shall be and constitute 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.
79772. The bonds authorized by this chapter 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 Section 16727 of the
Government Code shall not apply to the extent that it is inconsistent
with any other provision of this division.
79774. (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
California Clean, Secure Water Supply and Delta Recovery Finance
Committee is hereby created. For purposes of this division, the
California Clean, Secure Water Supply and Delta Recovery Finance
Committee is "the committee" as that term is used in the State
General Obligation Bond Law. 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, or
their designated representatives. The Treasurer shall serve as
chairperson of the committee. A majority of the committee may act for
the committee.
(b) For purposes of the State General Obligation Bond Law, the
Department of Water Resources is designated the "board."
79776. 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.
79778. 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.
79780. 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 necessary to carry out Section 79782, appropriated
without regard to fiscal years.
79782. For the purposes of carrying out this division, the
Director of Finance may authorize the withdrawal from the General
Fund of an amount not to exceed the amount of the unsold bonds that
have been authorized by the committee to be sold for the purpose of
carrying out this division. Any amounts withdrawn shall be deposited
in the fund. Any money made available under this section shall be
returned to the General Fund from proceeds received from the sale of
bonds for the purpose of carrying out this division.
79784. All money deposited in the fund that is derived from
premium and accrued interest on bonds sold shall be reserved in the
fund and shall be available for transfer to the General Fund as a
credit to expenditures for bond interest.
79786. Pursuant to Chapter 4 (commencing with Section 16720) of
Part 3 of Division 4 of Title 2 of the Government Code, the cost of
bond issuance shall be paid out of the bond proceeds. These costs
shall be shared proportionally by each program funded through this
bond act.
79788. The Department of Water Resources may request the Pooled
Money Investment Board to make a loan from the Pooled Money
Investment Account, including other authorized forms of interim
financing that include, but are not limited to, commercial paper, in
accordance with Section 16312 of the Government Code, for purposes of
carrying out this division. The amount of the request shall not
exceed the amount of the unsold bonds that the committee, by
resolution, has authorized to be sold for the purpose of carrying out
this division. The Department of Water Resources shall execute any
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 by the board in accordance with this division.
79790. The bonds 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 described in this division includes the
approval of the issuance of any bonds issued to refund any bonds
originally issued under this division or any previously issued
refunding bonds.
79792. Notwithstanding any other provision of this division, or
of the State General Obligation Bond Law, if the Treasurer sells
bonds pursuant to this division that include a bond counsel opinion
to the effect that the interest on the bonds is excluded from gross
income for federal tax purposes, subject to designated conditions,
the Treasurer may maintain separate accounts for the investment of
bond proceeds and for the investment of earnings on those proceeds.
The Treasurer 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 required or desirable under federal law 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.
79794. The Legislature hereby finds and declares that, inasmuch
as 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, the disbursement of these proceeds is
not subject to the limitations imposed by that article.
SEC. 2. Division 26.7 (commencing with Section
79700) is added to the Water Code , to read:
DIVISION 26.7. The Safe Drinking Water, Water Quality, and
Flood Protection Act of 2014
CHAPTER 1. SHORT TITLE
79700. This division shall be known and may be cited as the Safe
Drinking Water, Water Quality, and Flood Protection Act of 2014.
CHAPTER 2. DEFINITIONS
79710. Unless the context otherwise requires, the definitions set
forth in this section govern the construction of this division, as
follows:
(a) "Commission" means the California Water Commission.
(b) "Committee" means the Safe Drinking Water, Water Quality, and
Flood Protection Finance Committee created by Section 79824.
(c) "Delta" means the Sacramento-San Joaquin Delta as defined in
Section 12220.
(d) "Department" means the Department of Water Resources.
(e) "Director" means the Director of Water Resources.
(f) "Disadvantaged community" has the same meaning as set forth in
subdivision (a) of Section 79505.5.
(g) "Fund" means the Safe Drinking Water, Water Quality, and Flood
Protection Fund of 2014 created by Section 79770.
(h) "Integrated regional water management plan" means a
comprehensive plan for a defined geographic area that meets the
requirements of Part 2.2 (commencing with Section 10530) of Division
6, as that part may be amended.
(i) "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.
(j) "Public agency" means a state agency or department, public
water system, special district, joint powers authority, city, county,
city and county, or other political subdivision of the state.
(k) "Secretary" means the Secretary of the Natural Resources
Agency.
(l) "State board" means the State Water Resources Control Board.
(m) "State General Obligation Bond Law" means the State General
Obligation Bond Law (Chapter 4 (commencing with Section 16720) of
Part 3 of Division 4 of Title 2 of the Government Code).
CHAPTER 3. SAFE DRINKING WATER PROJECTS
79720. (a) It is the intent of the Legislature that this chapter
provide funds to address the most critical water needs of the state,
including the provision of safe drinking water to all Californians
and the improvement of safe drinking water supply reliability.
(b) The sum of one billion five hundred million dollars
($1,500,000,000) shall be available for the purposes of this chapter.
79722. From the funds described in Section 79720, five hundred
million dollars ($500,000,000) shall be available to the state board
for projects to address immediate safe drinking water needs as
follows:
(a) The sum of one hundred million dollars ($100,000,000) shall be
available for grants and direct expenditures to finance public
health emergencies and urgent actions 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) Improvements in existing water systems necessary to identify,
plan, design, and construct projects that will 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) Design, purchase, installation, and initial operating costs
for water treatment equipment and systems.
(b) The sum of four hundred million dollars ($400,000,000) shall
be available for grants for public water system infrastructure
improvements and related actions to meet safe drinking water
standards and ensure affordable drinking water. Priority shall be
given to projects that serve small disadvantaged communities and to
projects that address chemical and nitrate contaminants and other
health hazards identified by the state board. Eligible recipients
serve disadvantaged communities and are public agencies or
incorporated mutual water companies. The state board may make grants
for the purpose of financing feasibility studies and to meet the
eligibility requirements for a construction grant. Priority will 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. Construction grants shall be
limited to five million dollars ($5,000,000) per project, except that
the state board may set a limit of not more than 20 million dollars
($20,000,000) for projects that provide regional or shared solutions
among multiple entities, at least one of which is a small
disadvantaged community. Not more than 25 percent of a grant may be
awarded in advance of actual expenditures.
(c) The state board may expend up to twenty-five million dollars
($25,000,000) of the funds allocated in subdivision (b) for technical
assistance to eligible communities.
(d) At least 10 percent of the funds available pursuant to this
section shall be allocated for projects serving severely
disadvantaged communities.
79724. (a) From the funds described in Section 79720, one billion
dollars ($1,000,000,000) shall be available to the department for
allocation to regions pursuant to Section 79726 for projects that
implement an adopted integrated regional water management plan
consistent with Part 2.2 (commencing with Section 10530) of Division
6, as that part may be amended, and improve the quality or supply of
safe drinking water, reduce the amount of water imported to the
region, or address any of the following other critical water supply
reliability issues:
(1) Groundwater clean up or pollution prevention in sources of
drinking water.
(2) Advanced water treatment technology projects to remove
contaminants from drinking water, water recycling, and related
projects, such as distribution or groundwater recharge
infrastructure.
(3) Urban and agricultural water conservation and water use
efficiency projects.
(4) Other integrated water infrastructure projects that address
one or more water management activities and improve the reliability
or quality of regional water supplies.
(b) Projects funded pursuant to this section shall require a local
match of not less than 50 percent of project costs, except the
department may suspend or reduce cost share requirements for projects
serving disadvantaged communities or that result in a direct
reduction in water imported from the Delta.
(c) To be eligible for funding under this section, a region shall
comply with the following requirements:
(1) Have an adopted integrated regional water management plan
approved by the department.
(2) Each urban and agricultural water supplier that would benefit
from a project shall adopt and submit an urban or agricultural water
management plan in accordance with the Urban Water Management
Planning Act or the Agricultural Water Management Planning Act. That
urban or agricultural water management plan shall be approved by the
department as meeting the requirements of Sections 10608.56 and
10631.5.
(3) Have a groundwater management plan for each major groundwater
basin that meets the requirements of Part 2.75 (commencing with
Section 10750) of Division 6.
(4) Have a water budget that describes local and imported water
supplies and uses in sufficient detail to inform long-term efforts
towards sustainable water management, and, where applicable, include
a description of any measures anticipated to reduce the amount of
water imported to the region in the future.
(5) Where applicable, an integrated water management plan shall be
consistent with and implement Section 85021.
(d) Where applicable, funding pursuant to this section shall be
made available to water agencies to assist in directly reducing the
amount of water imported from the Delta.
79726. Funds available pursuant to Section 79724 shall be
allocated to each hydrologic region identified for purposes of
integrated regional water management planning by the department based
75 percent on population and 25 percent on geographical size of the
region.
79728. From the funds described in Section 79724, one hundred
million dollars ($100,000,000) shall be available for grants by the
department for the development and implementation of innovative
projects to advance sustainable water management.
CHAPTER 4. WATER QUALITY AND WATERSHED PROTECTION PROJECTS
79730. (a) It is the intent of the Legislature that this chapter
provide funds to protect water quality in the rivers, lakes, streams,
and coastal waters of the state,
to assist in meeting the Federal Water Pollution Control Act
(33 U.S.C. Sec. 1251 et seq.) and other state and federal
requirements for the protection of water quality, public health, and
endangered species, and to protect or restore natural systems that
contribute to water supply, water quality, or flood management.
(b) The sum of one billion eight hundred million dollars
($1,800,000,000) shall be available for the purposes of this chapter.
79732. (a) From the funds described in Section 79730, four
hundred million dollars ($400,000,000) shall be available to the
state board for deposit in the Small Communities Grant Subaccount for
grants for wastewater treatment projects to keep contaminants out of
rivers, lakes, streams, groundwater, and coastal waters, and for
other projects to protect the public and fish and wildlife from
contaminated sources of water. Priority shall be given to projects
that serve disadvantaged communities and severely disadvantaged
communities, and to projects that address public health hazards.
Special consideration shall be given to small communities with
limited financial resources. 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) From the funds available pursuant to subdivision (a), ten
million dollars ($10,000,000) shall be allocated to the state board
for deposit into the Private Well and Septic Systems Investment Fund,
which is hereby created in the State Treasury. Moneys in the fund
shall be available, upon appropriation by the Legislature, for the
purpose of addressing the needs of private well and septic owners.
79734. From the funds described in Section 79730, nine hundred
million dollars ($900,000,000) shall be available for water quality
and watershed protection projects of statewide significance as
follows:
(a) The sum of six hundred million dollars ($600,000,000) shall be
available to the Delta Conservancy for water quality, ecosystem
restoration, and community sustainability projects that benefit the
Delta, including, but not limited to, the following:
(1) Projects to improve water quality facilities or projects that
contribute to improvements in water quality in the Delta.
(2) Habitat restoration projects to improve the condition of
special status, at risk, endangered, or threatened species in the
Delta and the Delta counties, including projects to eradicate
invasive species, and projects that support the beneficial reuse of
dredged material for habitat restoration and levee improvements.
(3) Projects to assist in preserving economically viable and
sustainable agriculture and other economic activities in the Delta,
including projects to mitigate the economic and community impacts of
any conversion of agricultural land to habitat funded by this
section.
(4) Multibenefit recycled water projects that improve groundwater
management and Delta tributary ecosystems.
(b) The sum of three hundred million dollars ($300,000,000) shall
be available to the Natural Resources Agency, the Wildlife
Conservation Board, or to state conservancies, for water quality,
river, and watershed protection and restoration projects of statewide
importance outside of the Delta. Eligible projects include those
that reduce pollution or contamination of major water bodies of the
state, assist in the protection or recovery of endangered or
threatened species, or protect or restore natural system functions
that contribute to water supply, water quality, or flood management.
79736. From the funds described in Section 79730, five hundred
million dollars ($500,000,000) shall be available for regional
watershed protection and water quality projects outside the Delta
pursuant to Section 79738. Eligible projects include those that
reduce pollution or contamination of rivers, lakes, streams, or
coastal waters, including prevention and remediation of mercury
contamination from legacy mines, assist in the protection or recovery
of endangered or threatened species, or protect or restore natural
system functions that contribute to water supply, water quality, or
flood management.
79738. Funds available pursuant to Section 79736 shall be
allocated to each hydrologic region identified for purposes of
integrated regional water management planning by the department based
on the geographic size and population of the region, giving equal
weight to each factor. These funds shall be available to state
conservancies operating within the region or, for areas in which no
state conservancy operates, to the Wildlife Conservation Board for
grants or for direct expenditures consistent with the purposes of
this chapter and consistent with the conservation plans developed
pursuant to Section 79740.
79740. The Natural Resources Agency shall develop and adopt a
statewide resource protection plan to identify priorities for
expending funds provided in subdivision (b) of Section 79734 that
includes priorities for the State Coastal Conservancy and the
Wildlife Conservation Board. Conservation plans developed and adopted
by state conservancies shall be consistent with statewide priorities
adopted by the Natural Resources Agency and shall govern the
expenditure of funds available pursuant to Section 79736.
CHAPTER 5. FLOOD CONTROL AND STORMWATER MANAGEMENT
79750. (a) It is the intent of the Legislature that this chapter
provide funds for disaster preparedness, flood control, and
stormwater management in a manner that leverages the maximum amount
of federal and local matching funds and that prioritizes project
selection and encourages multibenefit project design to achieve the
maximum public benefits.
(b) The sum of one billion three hundred million dollars
($1,300,000,000) shall be available for the purposes of this chapter.
79752. From the funds described in Section 79750, five hundred
million ($500,000,000) shall be available to the department to
implement the Central Valley Flood Protection Plan, including the
following:
(a) The evaluation, repair, rehabilitation, or replacement of
levees, weirs, bypasses, or other facilities. Projects of the Central
Valley Flood Protection Plan shall be designed for multiple
benefits, wherever feasible, in order to maximize water supply, water
quality, and ecosystem benefits. Investments necessary to achieve
multiple benefits shall be eligible expenditures. The department
shall develop and implement mitigation through regional advance
mitigation plans, wherever feasible, to lower the cost, decrease
delay, and improve the conservation benefits of mitigation.
(b) Increasing the level of flood protection of urban and
urbanizing areas including state participation in federal and state
authorized flood control projects, feasibility studies, design of
federal flood damage reduction, and related projects, and reservoir
reoperation and groundwater flood storage projects that improve flood
protection.
79754. From the funds described in Section 79750, four hundred
million dollars ($400,000,000) shall be available to the state board
for competitive grants and loans for stormwater management projects
pursuant to this section.
(a) Eligible projects shall assist in compliance with total
maximum daily load implementation plans and be consistent with all
applicable waste discharge requirements.
(b) Eligible projects are facilities and infrastructure to reduce,
manage, treat, and capture for water supply stormwater, and urban
runoff, including, but not limited to:
(1) Detention and retention basins.
(2) Dry weather diversion facilities, trash filters, and screens.
(3) Treatment wetlands creation and enhancement.
(4) Stormwater runoff reduction projects, including permeable
surface installation, cisterns, and collection and treatment
facilities for groundwater recharge.
(5) Other stormwater management infrastructure for low-impact
development.
(c) The state board shall require not less than a 50-percent local
cost share for grant funds, but may suspend or reduce the matching
requirements for disadvantaged communities.
(d) The state board shall award grants on a competitive basis
considering the following criteria:
(1) Water quality benefits of the project, such as the project's
ability to reduce impairment of the receiving water body.
(2) Cost-effectiveness.
(3) Public health benefits of the project.
(4) Flood management benefits.
(5) Water supply benefits.
(6) Demonstrated contribution to reducing reliance on imported
water.
(e) Eligible recipients shall be local public agencies.
(f) Eligible projects must be outside of the area of the Central
Valley Flood Protection Plan.
79756. Notwithstanding Section 79754, fifty million dollars
($50,000,000) shall be available to the Department of Conservation
from the funds described in Section 79754 for competitive grants for
resource conservation districts and other qualified nonprofit
organizations for projects that reduce or manage runoff from
irrigated agricultural lands for the benefit of surface and
groundwater quality.
79758. From the funds described in Section 79750, four hundred
million dollars ($400,000,000) shall be available to reduce the risk
of levee failure and flood in the Delta for any of the following:
(a) 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.
(b) Special flood protection projects under Chapter 2 (commencing
with Section 12310) of Part 4.8 of Division 6, as that chapter may be
amended.
(c) Levee improvement projects that increase the resiliency of
levees within the Delta to withstand earthquake, flooding, or sea
level rise.
(d) Emergency response and repair projects.
CHAPTER 6. WATER SYSTEM OPERATIONAL IMPROVEMENTS
79760. The sum of one billion dollars ($1,000,000,000) shall be
available to the commission for water system operational improvements
that meet the requirements of this section, including all of the
following:
(a) Projects shall be selected by the commission through a
competitive public process that ranks projects based on the expected
public benefits received for public investment.
(b) Eligible projects consist only of the following:
(1) Surface storage projects identified in the CALFED Bay-Delta
Programmatic Record of Decision, dated August 28, 2000, except that
projects at Lake Shasta shall not be eligible.
(2) Groundwater storage projects and groundwater contamination
prevention or remediation projects that augment groundwater supplies,
and improve the long term sustainability of groundwater resources,
including reducing overdraft.
(3) Conjunctive use and reservoir reoperation projects including
associated infrastructure.
(4) Projects that restore the capacity of reservoirs currently
impaired by sediment buildup or other impairment.
(5) Projects that result in a permanent reduction of water
exported from the Delta and a transfer of the equivalent water right
to in-stream flow pursuant to Section 1707. Priority shall be given
to projects that also result in the permanent elimination of
irrigation runoff contributing to salinity in the San Joaquin Valley.
(6) Recycled water storage facilities.
(c) A project shall not be funded unless it provides measurable
improvements to the Delta ecosystem.
(d) Funds allocated pursuant to this section may be expended
solely for the following public benefits:
(1) Ecosystem improvements, including, but not limited to,
changing timing of diversions, improvement in flow conditions,
temperature, or other benefits that contribute to restoration of
aquatic ecosystems and native fish and wildlife.
(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 benefits.
(e) The commission, in consultation with the Department of Fish
and Wildlife, the state board, and the department, shall develop and
adopt, by regulation, methods for quantification and management of
public benefits. The regulations shall include priorities and
relative environmental value of ecosystem benefits provided by the
Department of Fish and Wildlife and the priorities and relative
environmental value of water quality benefits as provided by the
state board.
(f) Funds shall not be expended pursuant to this chapter for the
costs of environmental mitigation measures or compliance obligations
except for those associated with providing the public benefits as
described in subdivision (d).
79762. No funds available pursuant to Section 79760 may be
allocated to a project until the commission approves the project
based on the following determinations:
(a) The commission has adopted the regulations specified in
Section 79760 and specifically quantified and made public the cost of
the public benefits associated with the project.
(b) The department has entered into a contract with each party
that will derive benefits, other than public benefits, 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.
(c) The department has entered into a contract with the Department
of Fish and Wildlife and the state board, after those agencies have
made 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 public contributions of funds pursuant to this chapter
achieve the public benefits identified for the project.
(d) 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 section.
(e) All of the following conditions are met:
(1) Feasibility studies have been completed.
(2) 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, including the beneficial uses of the
Delta.
(3) All environmental documentation has been completed and all
other federal, state, and local approvals, certifications, and
agreements required to be completed have been obtained.
(f) The commission shall submit to the fiscal committees and the
appropriate policy committees of the Legislature its findings for
each criteria identified in this section for any project funded
pursuant to this chapter.
79764. (a) The public benefit cost share of a project funded
pursuant to this chapter may not exceed 50 percent of the total cost
of the project.
(b) No project may be funded unless it provides ecosystem
improvements that are at least 50 percent of the public benefits of
the project funded under this chapter.
CHAPTER 7. GENERAL PROVISIONS
79770. The proceeds of bonds issued and sold pursuant to this
division shall be deposited in the Safe Drinking Water, Water
Quality, and Flood Protection Fund of 2014, which is hereby created
in the State Treasury. Moneys in the fund shall be available, upon
appropriation by the Legislature, in the manner and for the purposes
set forth in this division.
79772. An amount that equals not more than 5 percent of the funds
allocated for a program pursuant to this division may be used to pay
the administrative costs of that program.
79774. Up to 10 percent of funds allocated for each program
funded by this division may be used to finance planning and
monitoring necessary for the successful design, selection, and
implementation of the projects authorized under that program. This
section shall not otherwise restrict funds ordinarily used by an
agency for "preliminary plans," "working drawings," and "construction"
as defined in the annual Budget Act for a capital outlay project or
grant project. Water quality monitoring shall be integrated into the
surface water ambient monitoring program administered by the state
board.
79776. 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 6 (commencing with
Section 79760).
79778. (a) Prior to disbursing grants pursuant to this division,
each state agency that is required to administer a competitive grant
program under this division shall develop project solicitation and
evaluation guidelines. The guidelines may include a limitation on the
dollar amount of grants to be awarded.
(b) Prior to disbursing grants, the state agency shall conduct
three public meetings to consider public comments prior to finalizing
the guidelines. The state agency shall publish the draft
solicitation and evaluation guidelines on its Internet Web site at
least 30 days before the public meetings. One meeting shall be
conducted at a location in northern California, one meeting shall be
conducted 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.
(c) Projects funded with proceeds from this division shall promote
state planning priorities consistent with the provisions of Section
65041.1 of the Government Code and sustainable communities strategies
consistent with the provisions of subparagraph (B) of paragraph (2)
of subdivision (b) of Section 65080 of the Government Code.
(d) To the extent feasible, in implementing subdivision (a) of
Section 79734, the Delta Conservancy shall seek to achieve wildlife
conservation objectives through projects on public lands or voluntary
projects on private lands. Funds available pursuant to subdivision
(a) of Section 79734 may be used, in consultation with the Department
of Fish and Wildlife, for payments to landowners for the creation of
measurable habitat improvements or other improvements to the
condition of endangered or threatened species. The Delta Conservancy
may develop and implement a competitive habitat credit exchange
mechanism in order to maximize voluntary landowner participation in
projects that provide measurable habitat or species improvements in
the Delta. These funds shall not be used to subsidize or decrease the
mitigation obligations of any party.
(e) In implementing subdivision (a) of Section 79734, the Delta
Conservancy shall coordinate, cooperate, and consult with the city or
county in which a grant is proposed to be expended or an interest in
real property is proposed to be acquired and with the Delta
Protection Commission. Acquisitions pursuant to subdivision (a) of
Section 79734 shall be from willing sellers only.
(f) In implementing subdivision (a) of Section 79734, the Delta
Conservancy shall require grantees to demonstrate how local economic
impacts, including impacts related to the loss of agricultural lands,
will be mitigated.
(g) Funds provided by this division shall not be used to acquire
land via eminent domain. Funds from this division may be used to
acquire property from willing sellers.
(h) Restoration and ecosystem protection projects funded by
Section 79736 shall use the services of the California Conservation
Corps or community conservation corps whenever feasible.
(i) In implementing Section 79740, the Natural Resources Agency
shall prioritize existing obligations for state watershed restoration
investments, including, but not limited to, dam removal and related
activities on the Klamath River, San Joaquin River restoration and
restoration, of migratory bird habitat on the Salton Sea.
79780. It is the intent of the people that the investment of
public funds pursuant to this division result in public benefits.
79782. The State Auditor shall annually conduct a programmatic
review and an audit of expenditures from the fund. The State Auditor
shall report its findings annually on or before March 1 to the
Governor and the Legislature, and shall make the findings available
to the public.
79784. Funds provided by this division shall not be used to
support or pay for the costs of environmental mitigation measures or
compliance obligations of any party except as part of the
environmental mitigation costs of projects financed by this division.
Funds provided by this division may be used for environmental
enhancements or other public benefits.
79786. Funds provided by this division shall not be expended to
pay costs associated with design, construction, operation,
maintenance, or mitigation of new Delta conveyance facilities.
79788. The Legislature may enact legislation necessary to
implement programs funded by this division.
79790. Eligible applicants under this division are public
agencies, nonprofit organizations, public utilities, and mutual water
companies. To be eligible for funding under this division, a project
proposed by a public utility that is regulated by the Public
Utilities Commission or a mutual water company shall have a clear and
definite public purpose and shall benefit the customers of the water
system.
79792. (a) This division does not diminish, impair, or otherwise
affect in any manner whatsoever any area of origin, watershed of
origin, county of origin, or any other water rights protections,
including, but not limited to, rights to water appropriated prior to
December 19, 1914, provided under the law. This division does not
limit or otherwise affect the application of Article 1.7 (commencing
with Section 1215) of Chapter 1 of Part 2 of Division 2, Sections
10505, 10505.5, 11128, 11460, 11461, 11462, and 11463, and Sections
12200 to 12220, inclusive.
(b) For the purposes of this division, an area that utilizes water
that has been diverted and conveyed from the Sacramento River
hydrologic region, for use outside the Sacramento River hydrologic
region or the Delta, shall not be deemed to be immediately adjacent
thereto or capable of being conveniently supplied with water
therefrom by virtue or on account of the diversion and conveyance of
that water through facilities that may be constructed for that
purpose after January 1, 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 limits or otherwise affects the
application of Chapter 2 (commencing with Section 85320) of Part 4 of
Division 35.
CHAPTER 8. FISCAL PROVISIONS
79820. Bonds in the total amount of five billion six hundred
million dollars ($5,600,000,000), or so much thereof as is necessary,
not including the amount of any refunding bonds, or so much thereof
as is necessary, may be issued and sold to provide a fund to be used
for carrying out the purposes expressed in this division and to
reimburse the General Obligation Bond Expense Revolving Fund pursuant
to Section 16724.5 of the Government Code. The bonds, when sold,
shall be and constitute 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.
79822. The bonds authorized by this chapter 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 Section 16727 of the
Government Code shall not apply to the extent that it is inconsistent
with any other provision of this division.
79824. (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
Safe Drinking Water, Water Quality, and Flood Protection Finance
Committee is hereby created. For purposes of this division, the Safe
Drinking Water, Water Quality, and Flood Protection Finance Committee
is "the committee" as that term is used in the State General
Obligation Bond Law. 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, or
their designated representatives. The Treasurer shall serve as
chairperson of the committee. A majority of the committee may act for
the committee.
(b) For purposes of the State General Obligation Bond Law, the
Department of Water Resources is designated the "board."
79826. 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.
79828. 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.
79830. 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 necessary to carry out Section 79832, appropriated
without regard to fiscal years.
79832. For the purposes of carrying out this division, the
Director of Finance may authorize the withdrawal from the General
Fund of an amount not to exceed the amount of the unsold bonds that
have been authorized by the committee to be sold for the purpose of
carrying out this division. Any amounts withdrawn shall be deposited
in the fund. Any money made available under this section shall be
returned to the General Fund from proceeds received from the sale of
bonds for the purpose of carrying out this division.
79834. All money deposited in the fund that is derived from
premium and accrued interest on bonds sold shall be reserved in the
fund and shall be available for transfer to the General Fund as a
credit to expenditures for bond interest.
79836. Pursuant to Chapter 4 (commencing with Section 16720) of
Part 3 of Division 4 of Title 2 of the Government Code, the cost of
bond issuance shall be paid out of the bond proceeds. These costs
shall be shared proportionally by each program funded through this
bond act.
79838. The Department of Water Resources may request the Pooled
Money Investment Board to make a loan from the Pooled Money
Investment Account, including other authorized forms of interim
financing that include, but are not limited to, commercial paper, in
accordance with Section 16312 of the Government Code, for purposes of
carrying out this division. The amount of the request shall not
exceed the amount of the unsold bonds that the committee, by
resolution, has authorized to be sold for the purpose of carrying out
this division. The Department of Water Resources shall execute any
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 by the board in accordance with this division.
79840. The bonds 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 described in this division includes the
approval of the issuance of any bonds issued to refund any bonds
originally issued under this division or any previously issued
refunding bonds.
79842. Notwithstanding any other provision of this division, or
of the State General Obligation Bond Law, if the Treasurer sells
bonds pursuant to this division that include a bond counsel opinion
to the effect that the interest on the bonds is excluded from gross
income for federal tax purposes, subject to designated conditions,
the Treasurer may maintain separate accounts for the investment of
bond proceeds and for the investment of earnings on those proceeds.
The Treasurer 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 required or desirable under federal law 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.
79844. The Legislature hereby finds and declares that, inasmuch
as 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, 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 California Clean, Secure Water Supply
and Delta Recovery Safe Drinking Water, Water Quality,
and Flood Protection Act of 2014, as set forth in that section
at the November 4, 2014, statewide general election.
SEC. 6. This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
In order to fund safe drinking water, water quality, and flood
protection at the earliest possible date, it is necessary that this
act take effect immediately.