Amended in Senate September 11, 2013

Amended in Senate August 15, 2013

Senate Bill No. 42

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 2009, relating to a 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. 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 Safe Drinking Water, Water Quality, and Flood Protection Act of 2014, which, if adopted by the voters, would authorize the issuance of bonds in the amount of begin delete $5,600,000,000 end delete begin insert $6,475 end insert begin insert ,000,000 end insert pursuant to the State General Obligation Bond Law to finance a 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 begin insert , as added by Section 1 of Chapter 3 of the
Seventh Extraordinary Session of the Statutes of 2009, end insert is repealed.

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.

begin insert

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

end insert begin delete

(l)

end delete

begin insert ( end insert begin insert m) end insert  “State board” means the State Water Resources Control
Board.

begin delete

(m)

end delete

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

 

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 begin delete one billion five hundred million dollars
($1,500,000,000) end delete begin insert two billion dollars ($2,000,000,000) end insert 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 begin delete public
health emergencies and urgent end delete begin insert urgent public health emergency end insert
actions to ensure that safe drinking water supplies are available to
all Californians. Eligible begin delete projects end delete begin insert actions end insert 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 begin delete 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 end delete begin insert , including, but not
limited to, planning, design, and construction of improvements
necessary to resume delivery of safe drinking water end insert .

(3) Establishing connections to an adjacent water system.

(4) Design, purchase, installation, and begin delete initial operating costs for end delete
begin insert operation and maintenance of interim end insert water treatment equipment
and systems.

(b) The sum of four hundred million dollars ($400,000,000)
shall be available for grants begin insert and loans end insert 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 begin delete serve small disadvantaged
communities and to projects that address end delete begin insert provide treatment for
contamination or access to alternative drinking water sources for
small water systems or state small water systems serving
disadvantaged communities whose drinking water source is
impaired by end insert chemical and nitrate contaminants and other health
hazards identified by the state board. Eligible recipients begin delete serve end delete
begin insert either operate small or state small water systems in end insert disadvantaged
communities and are public agencies or incorporated mutual water
companies begin insert or are public agencies or nonprofit organizations
authorized to act on behalf of small or state small water systems
in disadvantaged communities end insert . The state board may make grants
for the purpose of financing feasibility studies and to meet the
eligibility requirements for a construction grant. begin delete Priority end delete begin insert Eligible
expenses may include initial operation and maintenance costs for
systems serving disadvantaged communities. Special consideration end insert
will be given to projects that provide shared solutions for multiple
communities, at least one of which is a disadvantaged community
begin insert served by a small or state small water system or private well and end insert
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 begin delete 20 end delete begin insert twenty end insert
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.

begin insert

(e) Of the funds available pursuant to subdivision (b), the state
board may expend up to ten million dollars ($10,000,000) to
finance development and demonstration of new technologies and
related facilities for water contaminant removal and treatment
appropriate for use by small and state small water systems.

end insert

79724.  

(a) From the funds described in Section 79720, one
billion begin delete dollars ($1,000,000,000) end delete begin insert five hundred million dollars
($1,500,000,000) end insert shall be available to the department for begin delete allocation
to regions pursuant to Section 79726 end delete begin insert grants end insert for projects that
begin insert develop, improve, or end insert 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 begin insert , including the repair
or replacement of aging water management infrastructure end insert .

(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
begin delete approved by the department end delete .

(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 begin insert (Part 2.6 (commencing with Section 10610) of
Division 6) end insert or the Agricultural Water Management Planning Act
begin insert (Part 2.8 (commencing with Section 10800) of Division 6) end insert . begin delete That
urban end delete begin insert Urban end insert or agricultural water management begin delete plan shall be
approved end delete begin insert plans shall be certified end insert by the department as meeting the
requirements of begin insert the Urban Water Management Planning Act (Part
2.6 (commencing with Section 10610) of Division 6) or the
Agricultural Water Management Planning Act (Part 2.8
(commencing with Section 10800) of Division 6), and end insert Sections
10608.56 and 10631.5.

(3)  begin delete Have a groundwater management plan for each major
groundwater basin that meets the requirements of end delete begin insert Each local
agency whose service area includes a groundwater basin that
would benefit from a groundwater management project shall adopt
and submit a groundwater management plan in accordance with end insert begin insert end insert
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.

begin insert

begin insert 79725. end insert   

The California Water Commission shall review the
implementation of Section 79724 and shall certify that requirements
for grant eligibility pursuant to that section are met prior to the
department making final grant awards.

end insert

79726.  

begin delete Funds end delete begin insert Of the funds end insert begin insert end insert available pursuant to Section 79724 begin insert ,
one billion four hundred million ($1,400,000,000) end insert shall be allocated
to begin delete each end delete hydrologic begin delete region end delete begin insert regions end insert identified for purposes of
integrated regional water management planning begin delete by the department
based 75 percent on population and 25 percent on geographical
size of the region. end delete begin insert in accordance with the following schedule: end insert

begin insert

(1) North Coast: $66,000,000.

end insert begin insert

(2) San Francisco Bay: $196,000,000.

end insert begin insert

(3) Central Coast: $85,000,000.

end insert begin insert

(4) Los Angeles subregion: $267,000,000.

end insert begin insert

(5) Santa Ana subregion: $191,000,000.

end insert begin insert

(6) San Diego subregion: $146,000,000.

end insert begin insert

(7) Sacramento River: $117,000,000.

end insert begin insert

(8) San Joaquin River: $96,000,000.

end insert begin insert

(9) Tulare/Kern (Tulare Lake): $97,000,000.

end insert begin insert

(10) North/South Lahontan: $72,000,000.

end insert begin insert

(11) Colorado River Basin: $67,000,000.

end insert

79728.  

begin insert (a) end insert begin insert   end insert From the funds described in Section 79724, one
hundred million dollars ($100,000,000) shall be available for grants
begin delete by the department for the development and implementation of
innovative projects to advance sustainable water management. end delete begin insert for
projects that significantly advance the application and effectiveness
of innovative integrated regional water management strategies,
including, but not limited to, the following: end insert

begin insert

(1) Innovative decision support tools to model future regional
climate change impacts.

end insert begin insert

(2) Groundwater management plans and projects that further
sustainable groundwater management.

end insert begin insert

(3) Other projects determined by the department to advance
innovative strategies for the integration of water management.

end insert begin insert

(b) The department shall give priority to projects that address
groundwater overdraft and related impacts, including, but not
limited to, subsidence.

end insert

 

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 begin delete one billion eight hundred million dollars
($1,800,000,000) end delete begin insert two billion one hundred million dollars
($2,100,000,000) end insert 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), begin delete ten
million dollars ($10,000,000) end delete begin insert twenty million dollars ($20,000,000) end insert
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 begin delete addressing the
needs of private well and septic owners end delete begin insert providing grants and loans
to private well and septic owners to protect drinking water sources
and ensure safe and affordable drinking water for all Californians end insert .

79734.  

From the funds described in Section 79730, begin delete nine
hundred million dollars ($900,000,000) end delete begin insert one billion one hundred
million dollars ($1,100,000,000) end insert shall be available for water quality
and watershed protection projects begin delete of statewide significance end delete 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 begin insert , conservation, and enhancement end insert 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 begin insert local infrastructure projects and end insert 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.

begin insert

(5) Scientific studies and assessments that support the Delta
Science Program as described in Section 85280 or projects
authorized under this section.

end insert

(b) The sum of begin delete three hundred million dollars ($300,000,000) end delete
begin insert five hundred million dollars ($500,000,000) end insert shall be available begin delete to
the Natural Resources Agency, the Wildlife Conservation Board,
or to state conservancies, end delete 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 begin delete endangered or threatened end delete begin insert endangered,
threatened, wetland, or migratory end insert species, or protect or restore
natural system functions that contribute to water supply, water
quality, or flood management.

79736.  

begin insert (a) end insert begin insert   end insert From the funds described in Section 79730, begin delete five
hundred end delete begin insert six hundred end insert million dollars begin delete ($500,000,000) end delete begin insert ($600,000,000) end insert
shall be available for begin delete regional end delete watershed protection and water
quality projects outside the Delta begin delete pursuant to Section 79738.
Eligible projects include those that reduce end delete begin insert that do any of the
following: end insert

begin insert (1) end insert begin insert   end insert begin insert Reduce end insert pollution or contamination of rivers, lakes, streams,
or coastal waters, including prevention and remediation of mercury
contamination from legacy begin delete mines, assist end delete begin insert mines. end insert

begin insert (2) end insert begin insert   end insert begin insert Assist end insert in the begin delete protection or end delete recovery of endangered begin delete or
threatened species, or protect end delete begin insert , threatened, or migratory species by
improving watershed health, in-stream flows, fish passage, coastal
or inland wetland restoration, or other means, including natural
community conservation plan and habitat conservation plan
implementation. end insert

begin insert (3) end insert begin insert   end insert begin insert Protect end insert or restore natural system functions that contribute
to water supply, water quality, or flood management.

begin insert

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

end insert begin insert

(5) Protect and restore aquatic, coastal, wetland, and migratory
bird ecosystems, including fish and wildlife corridors.

end insert begin insert

(6) Implement fuel treatment projects to reduce wildfire risks
and associated risks to water supply facilities, and post-fire
restoration projects to improve watershed health, water quality,
and flood control capacity.

end insert begin insert

(7) Implement adaptation projects that improve the ability of
California’s watersheds, wetlands, forests, and floodplains to
reduce the impacts of climate change on California’s communities
and ecosystems.

end insert begin insert

(b) Of the funds described in subdivision (a), at least five
hundred million dollars ($500,000,000) shall be available for
water quality, flood control, watershed restoration, or other
watershed improvement projects implemented by state
conservancies.

end insert begin insert

(c) In order to guide the expenditure of funds described in this
section, 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.

end insert begin insert

(d) In coordination with the Natural Resources Agency, all state
conservancies expending funds provided pursuant to subdivision
(b) shall provide biannual 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
biannual written reports on total expenditures made and progress
towards meeting statewide priorities.

end insert

begin delete

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.

end delete begin delete

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.

end delete

 

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 begin delete three hundred million dollars
($1,300,000,000) end delete begin insert three hundred seventy- end insert begin insert five million dollars
($1,375,000,000) end insert 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 begin insert , and for multiple benefit
projects. Multiple benefit projects are flood control projects that
provide water supply, water quality, ecosystem, public access, and
recreation benefits, or any combination thereof end insert . Projects of the
Central Valley Flood Protection Plan shall be designed for multiple
benefits, wherever begin delete feasible, in order to maximize water supply,
water quality, and ecosystem benefits. Investments necessary to
achieve multiple benefits shall be eligible expenditures end delete begin insert feasible,
and, for the purposes of implementing this subdivision, priority
shall be given to multiple benefit projects end insert . 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.

begin insert

(c) The development of local maps and technical information
by Sacramento-San Joaquin Valley cities and counties necessary
to make a finding consistent with Section 65865.5 of the
Government Code.

end insert

begin insert

begin insert 79753. end insert   

From the funds described in Section 79750, seventy-five
million dollars ($75,000,000) shall be available to the Natural
Resources Agency for flood control projects on public lands that
provide critical flood, water quality, and wetland ecosystem
benefits to the San Francisco Bay region.

end insert

79754.  

From the funds described in Section 79750, begin delete four
hundred million dollars ($400,000,000) end delete begin insert three hundred seventy-five
million dollars ($375,000,000) end insert shall be available to the state board
for competitive grants and loans for stormwater management
projects pursuant to this section.

begin delete

(a) Eligible projects shall assist in compliance with total
maximum daily load implementation plans and be consistent with
all applicable waste discharge requirements.

end delete begin delete

(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:

end delete begin delete

(1) Detention and retention basins.

end delete begin delete

(2) Dry weather diversion facilities, trash filters, and screens.

end delete begin delete

(3) Treatment wetlands creation and enhancement.

end delete begin delete

(4) Stormwater runoff reduction projects, including permeable
surface installation, cisterns, and collection and treatment facilities
for groundwater recharge.

end delete begin delete

(5) Other stormwater management infrastructure for low-impact
development.

end delete begin insert

(a) Eligible projects shall assist in compliance with total
maximum daily load implementation plans or other regional
stormwater management plans, or in the development of enhanced
watershed management plans designed to achieve integrated,
multiple benefit stormwater management objectives. Eligible
projects include any of the following:

end insert begin insert

(1) Projects that reduce, manage, treat, or capture stormwater
to improve water quality and, wherever possible, improve water
supply.

end insert begin insert

(2) Stormwater resource management plans and related
enhanced watershed management plans.

end insert begin insert

(3) Decision support tools to evaluate the benefits and costs of
multiple benefit stormwater projects.

end insert begin insert

(4) Projects that, in addition to improving water quality, provide
public benefits, such as augmentation of water supply, flood
control, open space and recreation, and projects designed to mimic
or restore natural watershed functions.

end insert begin insert

(b) The state board shall grant special consideration to plans
or projects that provide multiple benefits such as water quality,
water supply, flood control, natural lands, or recreation.

end insert

(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.

begin delete

(d) The state board shall award grants on a competitive basis
considering the following criteria:

end delete begin delete

(1) Water quality benefits of the project, such as the project’s
ability to reduce impairment of the receiving water body.

end delete begin delete

(2) Cost-effectiveness.

end delete begin delete

(3) Public health benefits of the project.

end delete begin delete

(4) Flood management benefits.

end delete begin delete

(5) Water supply benefits.

end delete begin delete

(6) Demonstrated contribution to reducing reliance on imported
water.

end delete begin delete

(e)

end delete

begin insert (d) end insert  Eligible recipients shall be local public agencies begin insert or nonprofit
organizations in partnership with local public agencies end insert .

begin delete

(f)

end delete

begin insert (e) end insert  Eligible projects must be outside of the area of the Central
Valley Flood Protection Plan begin insert and must be consistent with an
applicable integrated regional water management plan end insert .

79756.  

begin delete Notwithstanding Section 79754, fifty million dollars
($50,000,000) end delete begin insert From the funds described in Section 79750,
twenty- end insert begin insert five million dollars ($25,000,000) end insert begin insert end insert shall be available to the
Department of Conservation begin delete from the funds described in Section
79754 end delete for competitive grants for begin delete resource conservation districts
and other end delete qualified begin insert special districts and end insert nonprofit organizations
for projects that reduce or manage runoff from begin delete irrigated end delete 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 instream 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
begin delete Section 79736 end delete begin insert this division end insert shall use the services of the California
Conservation Corps or begin insert certified end insert community conservation corps begin insert ,
as defined in Section 14507.5 of the Public Resources Code, end insert
whenever feasible.

begin delete

(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.

end delete begin insert

(i) In implementing subdivision (b) of Section 79734, priority
shall be given to projects that fulfill the obligations of the State of
California in complying with the terms of any of the following:

end insert begin insert

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

end insert begin insert

(2) Quantification Settlement Agreement, as defined in
subdivision (a) of Section 1 of Chapter 617 of the Statutes of 2002.

end insert begin insert

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

end insert begin insert

(4) Refuge water supply acquisition pursuant to the Central
Valley Project Improvement Act, as defined in Section 3404(d)(3)
of Title 34 of Public Law 102-575.

end insert begin insert

(5) Other state settlements and interstate compacts.

end insert begin insert

(j) In implementing Section 79752, the department may authorize
the establishment of a trust fund, consistent with Section 79044,
for the purposes of maintaining any lands acquired for the purposes
of Section 79752.

end insert begin insert

(k) It is the intent of the Legislature that California’s working
agricultural landscapes be preserved wherever possible. To the
extent feasible, watershed objectives included in this division
should be achieved through use of conservation easements and
voluntary landowner participation, including, but not limited to,
the use of easements pursuant to Division 10.4 (commencing with
Section 10330) and Division 10.2 (commencing with Section
10200) of the Public Resources Code and voluntary habitat credit
exchange mechanisms.

end insert begin insert

(l) Funds allocated pursuant to subdivision (b) of Section 79734
to meet California’s responsibilities under the bi-state compact
identified in Title 7.4 (commencing with Section 66800) of the
Government Code shall be appropriated pursuant to Title 7.42
(commencing with Section 66905) of the Government Code.

end insert

79780.  

It is the intent of the people begin delete that the end delete begin insert that: end insert

begin insert (a) end insert begin insert   end insert begin insert The end insert investment of public funds pursuant to this division
result in public benefits.

begin insert

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

end insert

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.

begin insert

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

end insert

 

Chapter  8. Fiscal Provisions

 

79820.  

begin insert (a) end insert begin insert   end insert Bonds in the total amount of begin delete five billion six
hundred million dollars ($5,600,000,000) end delete begin insert six billion four hundred
seventy- end insert begin insert five million dollars ($6,475,000,000) end insert , or so much thereof
as is necessary, not including the amount of any refunding begin delete bonds,
or so much thereof as is necessary, end delete begin insert bonds issued in accordance
with Section 79840 end insert may be issued and sold to provide a fund to
be used for carrying out the purposes expressed in this division
and to reimburse the General Obligation Bond Expense Revolving
Fund pursuant to Section 16724.5 of the Government Code. The
bonds, when sold, shall be and constitute a valid and binding
obligation of the State of California, and the full faith and credit
of the State of California is hereby pledged for the punctual
payment of both principal of, and interest on, the bonds as the
principal and interest become due and payable.

begin insert

(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.

end insert

79822.  

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

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 begin insert less any amount borrowed
pursuant to Section 79807 end insert . Any amounts withdrawn shall be
deposited in the fund. Any money made available under this section
shall be returned to the General Fund 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 begin insert , 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 end insert .

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 begin delete proceeds.
These costs end delete begin insert proceeds, including premium, if any. To the extent the
cost of bond issuance is not paid from premiums received from
the sale of bonds, the cost end insert shall be shared proportionally by each
program funded through this begin delete bond act end delete begin insert division by the applicable
bond sale end insert .

79838.  

The begin delete Department of Water Resources end delete begin insert board end insert may request
the Pooled Money Investment Board to make a loan from the
Pooled Money Investment Account, begin delete including other authorized
forms of interim financing that include, but are not limited to,
commercial paper, end delete in accordance with Section 16312 of the
Government begin delete Code, end delete begin insert Code end insert for begin delete purposes end delete begin insert the purpose end insert of carrying out
this division begin insert less any amount withdrawn pursuant to Section 79832 end insert .
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
begin delete Department of Water Resources end delete begin insert board end insert 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 begin delete by the board end delete in accordance with this
division.

79840.  

The bonds begin insert issued and sold pursuant to this division end insert
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 begin delete described in end delete begin insert under end insert this division begin delete includes end delete
begin insert shall include end insert 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, begin delete subject to end delete begin insert u end insert begin insert nder end insert designated
conditions begin insert or is otherwise entitled to any federal tax advantage end insert ,
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.  

begin delete The Legislature hereby finds and declares that,
inasmuch as the end delete begin insert The end insert 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, begin insert and end insert 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 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.