BILL NUMBER: SB 848	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Wolk
   (Coauthors: Senators DeSaulnier, Hancock, and Steinberg)
   (Coauthor: Assembly Member Bonilla)

                        JANUARY 9, 2014

   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 848, as introduced, 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 $6,475,000,000
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, as added by Section 1 of Chapter 3 of the Seventh
Extraordinary Session of the Statutes of 2009, is repealed.
  SEC. 2.  Division 26.7 (commencing with Section 79700) is added to
the Water Code, to read:

      DIVISION 26.7.  The 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) "Severely disadvantaged community" has the same meaning as set
forth in subdivision (n) of Section 116760.20 of the Health and
Safety Code.
   (m) "State board" means the State Water Resources Control Board.
   (n) "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 two billion dollars ($2,000,000,000) 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 urgent
public health emergency actions to ensure that safe drinking water
supplies are available to all Californians. Eligible actions 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, including, but not
limited to, planning, design, and construction of improvements
necessary to resume delivery of safe drinking water.
   (3) Establishing connections to an adjacent water system.
   (4) Design, purchase, installation, and operation and maintenance
of interim water treatment equipment and systems.
   (b) The sum of four hundred million dollars ($400,000,000) shall
be available for grants and loans for public water system
infrastructure improvements and related actions to meet safe drinking
water standards and ensure affordable drinking water. Priority shall
be given to projects that 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 chemical and nitrate
contaminants and other health hazards identified by the state board.
Eligible recipients either operate small or state small water systems
in disadvantaged communities and are public agencies or incorporated
mutual water companies or are public agencies or nonprofit
organizations authorized to act on behalf of small or state small
water systems in disadvantaged communities. The state board may make
grants for the purpose of financing feasibility studies and to meet
the eligibility requirements for a construction grant. Eligible
expenses may include initial operation and maintenance costs for
systems serving disadvantaged communities. Special consideration will
be given to projects that provide shared solutions for multiple
communities, at least one of which is a disadvantaged community
served by a small or state small water system or private well and
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 twenty 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.
   (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.
   79724.  (a) From the funds described in Section 79720, one billion
five hundred million dollars ($1,500,000,000) shall be available to
the department for grants for projects that develop, improve, or
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, including the repair or
replacement of aging water management infrastructure.
   (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.
   (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 (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). Urban or agricultural
water management plans shall be certified by the department as
meeting the requirements of 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 Sections 10608.56 and 10631.5.
   (3) 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
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.
   79725.  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.
   79726.  Of the funds available pursuant to Section 79724, one
billion four hundred million dollars ($1,400,000,000) shall be
allocated to hydrologic regions identified for purposes of integrated
regional water management planning in accordance with the following
schedule:
   (a) North Coast: $66,000,000.
   (b) San Francisco Bay: $196,000,000.
   (c) Central Coast: $85,000,000.
   (d) Los Angeles subregion: $267,000,000.
   (e) Santa Ana subregion: $191,000,000.
   (f) San Diego subregion: $146,000,000.
   (g) Sacramento River: $117,000,000.
   (h) San Joaquin River: $96,000,000.
   (i) Tulare/Kern (Tulare Lake): $97,000,000.
   (j) North/South Lahontan: $72,000,000.
   (k) Colorado River Basin: $67,000,000.
   79728.  (a) From the funds described in Section 79724, one hundred
million dollars ($100,000,000) shall be available for grants for
projects that significantly advance the application and effectiveness
of innovative integrated regional water management strategies,
including, but not limited to, the following:
   (1) Innovative decision support tools to model future regional
climate change impacts.
   (2) Groundwater management plans and projects that further
sustainable groundwater management.
   (3) Other projects determined by the department to advance
innovative strategies for the integration of water management.
   (b) The department shall give priority to projects that address
groundwater overdraft and related impacts, including, but not limited
to, subsidence.
      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 two billion one hundred million dollars
($2,100,000,000) 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), twenty
million dollars ($20,000,000) 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 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.
   79734.  From the funds described in Section 79730, one billion one
hundred million dollars ($1,100,000,000) shall be available for
water quality and watershed protection projects 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, conservation, and enhancement 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 local infrastructure projects and 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.
   (5) Scientific studies and assessments that support the Delta
Science Program as described in Section 85280 or projects authorized
under this section.
   (b) The sum of five hundred million dollars ($500,000,000) shall
be available 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, threatened, wetland, or
migratory species, or protect or restore natural system functions
that contribute to water supply, water quality, or flood management.
   79736.  (a) From the funds described in Section 79730, six hundred
million dollars ($600,000,000) shall be available for watershed
protection and water quality projects outside the Delta that do any
of the following:
   (1) Reduce pollution or contamination of rivers, lakes, streams,
or coastal waters, including prevention and remediation of mercury
contamination from legacy mines.
   (2) Assist in the recovery of endangered, 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.
   (3) Protect or restore natural system functions that contribute to
water supply, water quality, or flood management.
   (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).
   (5) Protect and restore aquatic, coastal, wetland, and migratory
bird ecosystems, including fish and wildlife corridors.
   (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.
   (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.
   (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.
   (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.
   (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.
      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 seventy-five million
dollars ($1,375,000,000) shall be available for the purposes of this
chapter.
   79752.  From the funds described in Section 79750, five hundred
million dollars ($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, 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. Projects
of the Central Valley Flood Protection Plan shall be designed for
multiple benefits, wherever feasible, and, for the purposes of
implementing this subdivision, priority shall be given to multiple
benefit projects. 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.
   (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.
   79753.  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.
   79754.  From the funds described in Section 79750, three hundred
seventy-five million dollars ($375,000,000) 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 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:
   (1) Projects that reduce, manage, treat, or capture stormwater to
improve water quality and, wherever possible, improve water supply.
   (2) Stormwater resource management plans and related enhanced
watershed management plans.
   (3) Decision support tools to evaluate the benefits and costs of
multiple benefit stormwater projects.
   (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.
   (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.
   (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) Eligible recipients shall be local public agencies or
nonprofit organizations in partnership with local public agencies.
   (e) Eligible projects must be outside of the area of the Central
Valley Flood Protection Plan and must be consistent with an
applicable integrated regional water management plan.
   79756.  From the funds described in Section 79750, twenty-five
million dollars ($25,000,000) shall be available to the Department of
Conservation for competitive grants for qualified special districts
and nonprofit organizations for projects that reduce or manage runoff
from 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 this
division shall use the services of the California Conservation Corps
or certified community conservation corps, as defined in Section
14507.5 of the Public Resources Code, whenever feasible.
   (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:
   (1) The February 18, 2010, Klamath Basin Restoration Agreement.
   (2) Quantification Settlement Agreement, as defined in subdivision
(a) of Section 1 of Chapter 617 of the Statutes of 2002.
   (3) The San Joaquin River Restoration Settlement, as described in
Part I of Subtitle A of Title X of Public Law 111-11.
   (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.
   (5) Other state settlements and interstate compacts.
   (j) In implementing Section 79752, the department may authorize
the establishment of a trust fund, consistent with Section 79044, for
the purpose of maintaining any lands acquired for the purposes of
Section 79752.
   (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.
   (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.
   79780.  It is the intent of the people that:
   (a) The investment of public funds pursuant to this division
result in public benefits.
   (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.
   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.
   (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.
      CHAPTER 8.  FISCAL PROVISIONS


   79820.  (a) Bonds in the total amount of six billion four hundred
seventy-five million dollars ($6,475,000,000), or so much thereof as
is necessary, not including the amount of any refunding bonds issued
in accordance with Section 79840 may be issued and sold to provide a
fund to be used for carrying out the purposes expressed in this
division and to reimburse the General Obligation Bond Expense
Revolving Fund pursuant to Section 16724.5 of the Government Code.
The bonds, when sold, shall be and constitute a valid and binding
obligation of the State of California, and the full faith and credit
of the State of California is hereby pledged for the punctual payment
of both principal of, and interest on, the bonds as the principal
and interest become due and payable.
   (b) The Treasurer shall sell the bonds authorized by the committee
pursuant to this section. The bonds shall be sold upon the terms and
conditions specified in a resolution to be adopted by the committee
pursuant to Section 16731 of the Government Code.
   79822.  The bonds authorized by this division shall be prepared,
executed, issued, sold, paid, and redeemed as provided in the State
General Obligation Bond Law (Chapter 4 (commencing with Section
16720) of Part 3 of Division 4 of Title 2 of the Government Code),
and all of the provisions of that law apply to the bonds and to this
division and are hereby incorporated in this division as though set
forth in full in this division, except subdivisions (a) and (b) of
Section 16727 of the Government Code.
   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 less any amount borrowed pursuant to
Section 79807. 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, 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.
   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, 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 shall be
shared proportionally by each program funded through this division by
the applicable bond sale.
   79838.  The board may request the Pooled Money Investment Board to
make a loan from the Pooled Money Investment Account, in accordance
with Section 16312 of the Government Code for the purpose of carrying
out this division less any amount withdrawn pursuant to Section
79832. 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 board 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 in accordance with this division.
   79840.  The bonds issued and sold pursuant to this division may be
refunded in accordance with Article 6 (commencing with Section
16780) of Chapter 4 of Part 3 of Division 4 of Title 2 of the
Government Code, which is a part of the State General Obligation Bond
Law. Approval by the voters of the state for the issuance of the
bonds under this division shall include 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, under designated conditions or is
otherwise entitled to any federal tax advantage, 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 proceeds from the sale of bonds authorized by this
division are not "proceeds of taxes" as that term is used in Article
XIII B of the California Constitution, and the disbursement of these
proceeds is not subject to the limitations imposed by that article.
  SEC. 3.  Section 1 of Chapter 74 of the Statutes of 2012 is
repealed. 
  SECTION 1.    Section 2 of Chapter 3 of the
Statutes of 2009, Seventh Extraordinary Session, as amended by
Section 7 of Chapter 126 of the Statutes of 2010, is amended to read:

  Sec. 2.  Section 1 of this act shall be submitted to the voters at
the November 4, 2014, statewide general election, instead of the
November 6, 2012, 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. 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.