BILL NUMBER: SB 848	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 23, 2014
	AMENDED IN SENATE  JUNE 10, 2014
	AMENDED IN SENATE  FEBRUARY 20, 2014
	AMENDED IN SENATE  FEBRUARY 12, 2014

INTRODUCED BY   Senator Wolk
    (   Principal coauthor:   Assembly Member
  Frazier   ) 
   (Coauthors: Senators De León, DeSaulnier, Hancock, Hueso, Pavley,
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 water supply 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 amended, Wolk. Safe Drinking Water, Water Quality, and
Water Supply 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
Water Supply Act of 2014, which, if adopted by the voters, would
authorize the issuance of bonds in the amount of $10,500,000,000
pursuant to the State General Obligation Bond Law to finance a safe
drinking water, water quality, and water supply program.
   The bill would provide for the submission of the bond act to the
voters at the November 4, 2014, statewide general election.
   (3) Existing law, the Water Conservation and Water Quality Bond
Law of 1986, approved by the voters at the June 3, 1986, statewide
primary election, authorizes the issuance of general obligation bonds
in the amount of $150,000,000 for the Department of Water Resources
to make prescribed loans to local agencies for the purposes of
financing a water conservation and water quality program. Existing
law, the Water Conservation Bond Law of 1988, approved by the voters
at the November 8, 1988, statewide general election, authorizes the
issuance of general obligation bonds in the amount of $60,000,000 for
the Department of Water Resources to make prescribed loans to local
agencies for the purposes of financing a water conservation program.
Existing law, the Safe, Clean, Reliable Water Supply Act, a bond act
approved by the voters as Proposition 204 at the November 5, 1996,
statewide general election, authorizes the issuance of general
obligation bonds in the amount of $995,000,000 for grants, loans, and
direct expenditures for the purposes of financing a safe, clean,
reliable water supply program. Existing law, the Costa-Machado Water
Act of 2000, a bond act approved by the voters as Proposition 13 at
the March 7, 2000, statewide primary election, authorizes the
issuance of general obligation bonds in the amount of $1,970,000,000
for grants, loans, and direct expenditures for the purposes of
financing a safe drinking water, clean water, watershed protection,
and flood protection program.
   This bill would authorize the Legislature to appropriate any
unencumbered proceeds of bonds from the above-described bond acts in
their respective bond funds as of November 5, 2014, for prescribed
purposes as described in the Safe Drinking Water, Water Quality, and
Water Supply Act of 2014. This bill would provide for the submission
of these provisions to the voters at the November 4, 2014, statewide
general election.
   (4) 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
Water Supply 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 Water Supply Act of 2014.
      CHAPTER 2.  FINDINGS AND DECLARATIONS


   79705.  In placing this measure before the voters, the Legislature
finds and declares that all of the following are in the public's
interest:
   (a) Ensuring that safe drinking water is available to all
Californians.
   (b) Protecting water quality and cleaning up contaminated water
sources.
   (c) Increasing water supply and water supply reliability.
   (d) Assisting each region of the state in improving local water
supply reliability and water quality.
   (e) Resolving water-related conflicts and improving local and
regional water self-reliance.
   (f) Protecting the rivers, lakes, and streams of the state from
pollution, loss of water quality, and destruction of fish and
wildlife habitat.
   79706.  The Legislature further finds and declares that to achieve
the public interest objectives under Section 79705, it is necessary
to invest state resources in the following:
   (a) Safe drinking water projects, especially projects addressing
the needs of disadvantaged communities, and financing urgent public
health emergency actions to ensure safe drinking water supplies.
   (b) Wastewater treatment projects to keep contaminants out of
rivers, lakes, streams, and coastal waters.
   (c) Projects to enhance water supplies and increase water supply
reliability through the following:
   (1) Urban and agricultural water conservation and water use
efficiency projects.
   (2) Groundwater clean up or pollution prevention in sources of
drinking water.
   (3) Water recycling projects.
   (4) Projects to desalinate brackish and ocean water.
   (5) Stormwater capture and reuse.
   (6) Sustainable groundwater management.
   (d) Projects that improve Delta water quality, restore ecosystems,
protect fish populations, and increase community sustainability.
   (e) Projects that reduce the risk of levee failure and flood in
the Delta.
   (f) Projects to protect and restore watersheds and urban rivers,
and address water quality deficiencies at state parks.
   (g) Projects to develop additional water storage  , both
surface   and groundwater storage, through the
following:   and capacity.  
   (1) New surface storage projects.  
   (2) Groundwater storage projects and groundwater contamination
prevention or remediation projects that create additional groundwater
storage capacity.  
   (3) Projects that restore the capacity of reservoirs currently
impaired by sediment buildup, seismic vulnerability, or other
impairment. 
      CHAPTER 3.  PURPOSE


   79708.  An agency allocating funds provided by this division shall
prioritize investment in projects that provide drought relief, safe
drinking water, and water use efficiency improvements necessary to
increase the sustainability of California's water systems.
      CHAPTER 4.  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) "Delta" means the Sacramento-San Joaquin Delta as defined in
Section 85058.
   (c) "Delta counties" means Contra Costa, Sacramento, San Joaquin,
Solano, and Yolo counties.
   (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) "Finance committee" means the Safe Drinking Water, Water
Quality, and Water Supply Finance Committee created by Section 79824.

   (h) "Fund" means the Safe Drinking Water, Water Quality, and Water
Supply Fund of 2014 created by Section 79770.
   (i) "Initial operation and maintenance costs" mean those initial,
eligible, reimbursable costs under a construction funding agreement
that are incurred up to, and including, initial startup testing of
the constructed project in order to deem the project complete.
   (j) "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.
   (k) "Interim" means the limited period of time needed to address
the identified urgent need for safe drinking water, not to exceed
three years.
   (l) "Local match" and "matching funds" mean funds made available
by nonstate sources, which may include, but are not limited to,
donated services from nonstate sources.
   (m) "Nonprofit organization" means an organization qualified to do
business in California and qualified under Section 501(c)(3) of
Title 26 of the United States Code.
   (n) "Public agency" means a state agency or department, public
water system, special district, joint powers authority, city, county,
city and county, or other political subdivision of the state.
   (o) "Secretary" means the Secretary of the Natural Resources
Agency.
   (p) "Severely disadvantaged community" has the same meaning as set
forth in subdivision (n) of Section 116760.20 of the Health and
Safety Code.
   (q) "Small water system" means a public water system that serves
15 or more service connections but not more than 3,000 persons and
regularly serves drinking water to more than an average of 25
individuals daily for more than 60 days out of the year.
   (r) "State board" means the State Water Resources Control Board.
   (s) "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).
   (t) "State small water system" means a system for the provision of
piped water to the public for human consumption that serves at least
5, but no more than 14, service connections and does not regularly
serve drinking water to more than an average of 25 individuals daily
for more than 60 days out of the year.
      CHAPTER 5.  SAFE DRINKING WATERPROJECTS


   79720.  (a) It is the intent of the people that this chapter
provide funds to ensure the provision of safe drinking water to all
Californians and to increase the reliability of water supply for safe
drinking water and other purposes.
   (b) The sum of three billion twenty million dollars
($3,020,000,000) shall be available for the purposes of this chapter.

   79721.  From the funds described in Section 79720, one hundred
million dollars ($100,000,000) shall be available to the state board
for grants and direct expenditures to finance urgent actions needed
to provide drinking water in communities that lack access to safe
drinking water to ensure that safe drinking water supplies are
available to all Californians. Grants and direct expenditures shall
be exempt from contracting and procurement requirements to the extent
necessary to take immediate action to protect public health and
safety. Grants awarded pursuant to this section shall not exceed two
hundred fifty thousand dollars ($250,000). Eligible actions include,
but are not limited to, the following:
   (a) Providing interim water supplies, for a period not to exceed
three years, where necessary to protect public health, including the
design, purchase, installation, and operation and maintenance of
interim water treatment equipment and systems.
   (b) Improvements in existing water systems, including, but not
limited to, design and construction of improvements necessary to
resume delivery of safe drinking water.
   (c) Establishing connections to an adjacent water system.
   (d) Urgent wastewater treatment projects in order to prevent the
contamination of a drinking water source.
   79722.  (a) From the funds described in Section 79720, four
hundred million dollars ($400,000,000) shall be available to the
state board for grants and loans for public water system
infrastructure improvements and related actions to meet primary or
secondary safe drinking water standards or contaminants identified by
the state or federal government for development of a primary or
secondary drinking water standard and ensure affordable drinking
water. Priority shall be given to projects that provide treatment for
contamination or access to alternative drinking water sources in
areas where drinking water sources have been impaired by chemical and
nitrate contaminants and other health hazards identified by the
state board. Eligible recipients either operate small water systems
or state small water systems in disadvantaged communities or are
public agencies that are authorized to act on behalf of those
systems. 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.
   (b) The state board may expend up to twenty-five million dollars
($25,000,000) of the funds allocated in subdivision (a) for technical
assistance to eligible communities.
   (c) At least 10 percent of the funds available pursuant to this
section shall be allocated for projects serving severely
disadvantaged communities.
   (d) Of the funds available pursuant to subdivision (c), 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 water systems and state small water systems.
   (e) (1) Up to two million five hundred thousand dollars
($2,500,000) of the funds available pursuant to this section may be
available as temporary initial funding for a pooled capital reserve
among small water systems and state small water systems. This pooled
capital reserve would be administered by the state board. The purpose
of the pooled capital reserve would be to allow participating
systems to collect sufficient financial capacity from the system's
ratepayers over an affordable schedule. The funds available pursuant
to this subdivision shall be utilized only if the state board
determines that there are insufficient deposits from any
participating small water systems and state small water systems in
the pooled capital reserve. If bond funds will be used pursuant to
this subdivision, the state board shall develop criteria to implement
this subdivision that includes full repayment provisions for any
withdrawals from the pooled capital reserve.
   (2) This subdivision shall become inoperative on January 1, 2024.
   79723.  The state board may administer together the funds
allocated pursuant to subdivision (b) of Section 79722 and
subdivision (b) of Section 79721.
   79724.  (a) From the funds described in Section 79720, one billion
four hundred million dollars ($1,400,000,000) shall be available to
the department for competitive grants for projects that implement an
adopted integrated regional water management plan consistent with
Part 2.2 (commencing with Section 10530) of Division 6, as that part
may be amended.
    (b) Eligible projects are those that improve the quality or
supply of safe drinking water, increase regional water self-reliance,
or address any of the following other critical water  supply
reliability   management  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) Water reuse and recycling for nonpotable reuse and direct and
indirect potable reuse.
   (5) The repair or replacement of aging water management
infrastructure in disadvantaged communities.
   (6) Other integrated water infrastructure projects that address
one or more water management activities and improve the reliability
or quality of regional water supplies.
   (7) Brackish groundwater and ocean water desalination projects.
   (8) Groundwater storage.
   (9) Recycled water storage.
   (10) Sediment removal to improve storage.
   (11) Dam seismic retrofit.
   (12) Local and regional conveyance projects that will improve
regional connectivity and maximize the benefits of existing water
storage. 
   (13) Other projects eligible under Section 79561 of the Water
Code. 
   (c) Funds made available pursuant to this section shall be
available upon appropriation to, and shall be administered by, the
department, in  close collaboration  
coordination  with the state board.  Specific project
and planning grant awards shall be selected jointly by the director
and chair of the state board. 
   (d) Projects funded pursuant to this section shall require a local
match of not less than 25 percent of project costs, except the
department may suspend or reduce cost share requirements for projects
serving disadvantaged communities or that reduce reliance on the
Delta, consistent with Section 85021.
   (e) 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 or the Agricultural Water Management Planning Act, and
Sections 10608.56 and 10631.5, as those provisions may be amended.

   (3) Each local agency whose service area includes a groundwater
basin or subbasin that would benefit from a groundwater management
project shall adopt and submit a groundwater management plan in
accordance with groundwater management planning requirements
established under Division 6 (commencing with Section 10000).
 Groundwater management plans shall be certified by the
administering state agency as meeting the groundwater management
planning requirements.  
   (4) (A) 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 the measures taken to comply with Section
85021.  
   (B) The department shall develop guidelines for compliance with
this paragraph.  
   (5) Where applicable, an integrated water management plan shall be
consistent with and implement Section 85021.  
   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.   79725.   Funding described in
Section 79724 shall be allocated to hydrologic regions as identified
in the California Water Plan and listed below. For the South Coast
Region, the department shall establish three subregions that reflect
the San Diego County watersheds, the Santa Ana River watershed, and
the Los Angeles-Ventura County watersheds respectively, and allocate
funds to those subregions. The North and South Lahontan regions shall
be treated as one region for the purpose of allocating funds, but
the department may require separate regional plans. Funds available
pursuant to this section shall be allocated in accordance with the
following schedule:
   (a) Sixty-five million dollars ($65,000,000) for the North Coast
hydrologic region.
   (b) One hundred ninety-five million dollars ($195,000,000) for the
San Francisco Bay hydrologic region.
   (c) Eighty-five million dollars ($85,000,000) for the Central
Coast hydrologic region.
   (d) Two hundred eighty-four million dollars ($284,000,000) for the
Los Angeles subregion.
   (e) One hundred seventy-four million dollars ($174,000,000) for
the Santa Ana subregion.
   (f) One hundred thirty-eight million dollars ($138,000,000) for
the San Diego hydrologic region.
   (g) One hundred eighteen million dollars ($118,000,000) for the
Sacramento River hydrologic region.
   (h) Ninety-eight million dollars ($98,000,000) for the San Joaquin
River hydrologic region.
   (i) One hundred two million dollars ($102,000,000) for the
Tulare/Kern hydrologic region.
   (j) Seventy-four million dollars ($74,000,000) for the North/South
Lahontan hydrologic region.
   (k) Sixty-seven million dollars ($67,000,000) for the Colorado
River Basin hydrologic region.
    79727.   79726.   (a) Prevention and
clean up of groundwater contamination are critical components of
successful groundwater management. Groundwater quality becomes
especially important as water providers do the following:
   (1) Evaluate investments in groundwater recharge with surface
water, stormwater, recycled water, and other conjunctive use projects
that augment local groundwater supplies to improve regional water
self-reliance.
   (2) Adapt to changing hydrologic conditions brought on by climate
change.
   (3) Consider developing groundwater basins to provide much needed
local storage options to accommodate hydrologic and regulatory
variability in the state's water delivery system.
   (4) Evaluate investments in groundwater recovery projects.
   (b) From the funds described in Section 79720, one billion dollars
($1,000,000,000) shall be available to the state board for
construction grants and loans for treatment and remediation projects
that prevent or reduce the contamination of groundwater that serves
as a source of drinking water.
   (c) For the purposes of awarding funding pursuant to this section,
a local cost share of not less than 50 percent of the total costs of
the project shall be required. The cost-sharing requirement may be
waived or reduced for projects that directly benefit a disadvantaged
community.
   (d) At least 10 percent of the funds available pursuant to this
section shall be allocated for projects serving severely
disadvantaged communities.
   (e) Funding authorized pursuant to this section shall include
funding for technical assistance to disadvantaged communities. The
state board shall operate a multidisciplinary technical assistance
program for small and disadvantaged communities.
   (f) Priority shall be given to projects that do any of the
following:
   (1) Have commenced a characterization study, consistent with the
State Department of Public Health's Procedure Memorandum 97-005, and
issued a notice of preparation for an environmental impact report.
   (2) Will address contamination at a site on the list maintained by
the Department of Toxic Substances Control pursuant to Section 25356
of the Health and Safety Code or listed on the National Priorities
List established pursuant to Section 105 of the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980 (42
U.S.C. Sec. 9605(a)(8)(B)).
   (3) Prevents or minimizes saltwater intrusion.
   (g) The state board shall require grantees to do the following:
   (1) Make reasonable efforts to attempt to recover the costs of
cleanup from the parties responsible for the contamination. A grantee
shall not be required to seek cost recovery related to the costs of
response actions apportioned to responsible parties who are insolvent
or cannot be identified or located, or when a requirement to seek
cost recovery would impose a financial hardship on the grantee.
   (2) Repay grant funds that are subsequently recovered from parties
responsible for the groundwater contamination.
    79728.   79727.   From the funds
described in Section 79720, twenty million dollars ($20,000,000)
shall be available to the Department of Parks and Recreation to
address public health deficiencies in drinking water and wastewater
quality at state parks.
    79729.   79728.   From the funds
described in Section 79720, one hundred million dollars
($100,000,000) shall be made available for competitive grants for
projects that develop groundwater management plans, consistent with
existing groundwater management planning requirements in Division 6
(commencing with Section 10000), that further sustainable groundwater
management.
      CHAPTER 6.  WATER QUALITY PROJECTS


   79730.  (a) It is the intent of the people 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 three billion one hundred eighty million dollars
($3,180,000,000) shall be available for the purposes of this chapter.

   79731.  (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 State Water Pollution Control
Revolving Fund Small Community Grant Fund established by Section
13477.6 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) The state board may expend up to ten million dollars
($10,000,000) of the funds allocated in subdivision (a) for technical
assistance to eligible communities.
   (c) 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 Domestic 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 domestic well and septic
owners to protect drinking water sources and ensure safe and
affordable drinking water for all Californians. The state board shall
develop criteria for the allocation of these grants and loans that
specifies these are for the benefit of small communities to treat
drinking water or protect drinking water from contamination and
includes an income threshold equivalent to the definition of a
disadvantaged community.
   79732.  (a) From the funds described in Section 79730, five
hundred million dollars ($500,000,000) shall be available to the
state board for competitive grants for projects that develop,
implement, or improve a stormwater capture and reuse plan consistent
with Part 2.3 (commencing with Section 10560) of Division 6, as that
part may be amended, and that capture and put to beneficial use
stormwater or dry weather runoff.
   (b) Stormwater capture and reuse projects developed pursuant to an
adopted integrated regional water management plan in compliance with
Part 2.2 (commencing with Section 10530) of Division 6 are also
eligible for funding under this section if those projects were
identified and developed in substantive compliance with Part 2.3
(commencing with Section 10560) of Division 6, as those parts may be
amended.
   (c) Projects eligible for funding under this section shall assist
in the capture and reuse of stormwater or dry weather runoff.
Eligible projects include any of the following:
   (1) Projects that capture, convey, treat, or put to beneficial use
stormwater or dry weather runoff.
   (2) The development of stormwater capture and reuse plans pursuant
to Part 2.3 (commencing with Section 10560) of Division 6, as that
part may be amended.
   (3) Decision support tools, data acquisition, and data analysis to
identify and evaluate the benefits and costs of potential stormwater
capture and reuse projects.
   (4) Projects that, in addition to capturing and reusing stormwater
or dry weather runoff, improve 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.
   (d) 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.
   (e) The state board shall require a 25-percent local cost share
for grant funds, but may suspend or reduce the matching requirements
for projects that capture or reuse stormwater or dry weather runoff
in disadvantaged communities.
   (f) The state board shall adopt a policy establishing criteria for
projects funded by this section to ensure that a project funded
pursuant to this section complies with water quality laws and does
not put at risk any groundwater
             or surface water supplies.
   (g) No more than seventy-five million dollars ($75,000,000) shall
be awarded for the development of stormwater capture and reuse plans.

   79733.  From the funds described in Section 79730, five hundred
million dollars ($500,000,000) shall be available to the state board
for grants for water recycling and advanced treatment technology
projects, including all of the following:
   (a) Water recycling projects, including, but not limited to,
treatment, storage, conveyance, and distribution facilities for
potable and nonpotable recycling projects.
   (b) Contaminant and salt removal projects, including, but not
limited to, groundwater and seawater desalination and associated
treatment, storage, conveyance, and distribution facilities.
   (c) Dedicated distribution infrastructure to serve residential,
commercial, agricultural, and industrial end-user retrofit projects
to allow the use of recycled water.
   (d) Pilot projects for new salt and contaminant removal
technology.
   (e) Groundwater recharge infrastructure related to recycled water.

   (f) Technical assistance and grant writing assistance for
disadvantaged communities.
   79734.  For the purpose of awarding funding under Section 79733, a
local cost share of not less than 50 percent of the total costs of
the project shall be required. The cost-sharing requirement may be
waived or reduced for projects that directly benefit a disadvantaged
community.
   79735.  Projects funded pursuant to Section 79733 shall be
selected on a competitive basis, considering all of the following
criteria:
   (a) Water supply reliability improvement.
   (b) Water quality and ecosystem benefits related to decreased
reliance on diversions from the Delta or instream flows.
   (c) Public health benefits from improved drinking water quality.
   (d) Cost-effectiveness.
   (e) Energy efficiency and greenhouse gas emission impacts.
   (f) Reasonable geographic allocation to eligible projects
throughout the state, including both northern and southern California
and coastal and inland regions.
   79736.  For purposes of Section 79733, competitive programs shall
be implemented consistent with water recycling programs administered
pursuant to Sections 79140 and 79141 or consistent with desalination
programs administered pursuant to Sections 79545 and 79547.2.
   79737.  (a) From the funds described in Section 79730, the sum of
 five hundred million dollars ($500,000,000)  
two h   undred fifty million dollars ($250,000,000) 
shall be available for water quality, river, and watershed protection
and restoration projects of statewide importance outside of the
Delta. Funds provided by this section shall be allocated according to
the following schedule: 
   (1) Two hundred fifty million dollars ($250,000,000) to implement
the Klamath Hydroelectric Settlement Agreement. Up to fifty million
dollars ($50,000,000) of the funds available pursuant to this
paragraph may be made available for restoration projects in
California pursuant to the Klamath Basin Restoration Agreement if all
of the funds available pursuant to this paragraph are not needed for
dam removal projects.  
   (2) 
    (1)  One hundred million dollars ($100,000,000) for
projects that help fulfill state obligations under Chapters 611, 612,
and 613 of the Statutes of 2003, which were enacted to facilitate
the execution and implementation of the Quantification Settlement
Agreement, including restoration of the Salton Sea. 
   (3) 
    (2) One hundred million dollars ($100,000,000) for
projects that help fulfill state obligations under the San Joaquin
River Restoration Settlement, as described in Part I of Subtitle A of
Title X of Public Law 111-11. 
   (4) 
    (3)  Fifty million dollars ($50,000,000) for projects
that help fulfill state obligations under the Tahoe Regional Planning
Compact pursuant to Section 66800 of the Government Code. Funds
provided by this paragraph shall be approved pursuant to Title 7.42
(commencing with Section 66905) of the Government Code, as those
provisions may be amended.
   (b) Expenditures funded by this section shall comply with Section
16727 of the Government Code.
   79738.  (a) From the funds described in Section 79730, the sum of
 nine hundred twenty-five million dollars ($925,000,000)
  one billion one hundred seventy-five million dollars
($1,175,000,000)  shall be available for projects that protect
and improve California's watersheds, wetlands, forests, and flood
plains.
   (b) Funds available pursuant to this section shall be allocated as
follows:
   (1) Baldwin Hills Conservancy: fifteen million dollars
($15,000,000).
   (2) California Tahoe Conservancy: forty-five million dollars
($45,000,000).
   (3) Coachella Valley Mountains Conservancy: twenty million dollars
($20,000,000).
   (4) San Diego River Conservancy: twenty million dollars
($20,000,000).
   (5) San Gabriel and Lower Los Angeles Rivers and Mountains
Conservancy: sixty-five million dollars ($65,000,000).
   (6) San Joaquin River Conservancy: twenty million dollars
($20,000,000).
   (7) Santa Monica Mountains Conservancy: sixty-five million dollars
($65,000,000).
   (8) Sierra Nevada Conservancy: one hundred fifteen million dollars
($115,000,000).
   (9) State Coastal Conservancy: three hundred million dollars
($300,000,000).
   (10) Wildlife Conservation Board:  two hundred ten million
dollars ($210,000,000).   four hundred sixty million
dollars ($460,000,000). 
   (11) California Ocean Protection Council: fifty million dollars
($50,000,000).
   (c) Of the funds allocated to the State Coastal Conservancy
pursuant to paragraph (9) of subdivision (b), one hundred sixty-five
million dollars ($165,000,000) is available as follows:
   (1) Fifty million dollars ($50,000,000) shall be available for
projects that help restore coastal salmonid populations.
   (2) Seventy-five million dollars ($75,000,000) shall be available
for flood control projects on public lands that provide critical
flood, water quality, and wetland ecosystem benefits to the San
Francisco Bay region.
   (3) Forty million dollars ($40,000,000) shall be available for
projects that benefit the Santa Ana River watershed.
   (d) Of the funds allocated to the San Gabriel and Lower Los
Angeles Rivers and Mountains Conservancy pursuant to paragraph (5) of
subdivision (b), up to fifteen million dollars ($15,000,000) shall
be available for multibenefit coastal wetlands restoration undertaken
in coordination with the State Coastal Conservancy.
   (e) Eligible projects include those that do any of the following:
   (1) Reduce pollution or contamination of rivers, lakes, streams,
or coastal waters.
   (2) Protect or restore rural or urban watershed functions that
contribute to water supply, water quality, or flood management.
   (3) Protect and restore aquatic, coastal, wetland, and migratory
bird ecosystems, including fish and wildlife corridors.
   (4) Implement adaptation and conservation 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 including through the implementation of
natural community conservation plans and habitat conservation plans.
   (f) Priority shall be given to projects with multiple benefits
such as increased water supply, improved water quality, and improved
local or regional water quality and water supply reliability that
builds the resilience of human communities and natural habitats
against the risks of prolonged drought or the exhaustion of water
supplies.
   (g) An appropriation of funds available pursuant to this section
may include funds for planning, monitoring, and assessment of the
effectiveness of the programs and projects authorized for funding.
   79739.  (a) From the funds described in Section 79730, two hundred
million dollars ($200,000,000) shall be available to the secretary
for a competitive program to fund multibenefit watershed and river
enhancement projects in urban watersheds. Eligible applicants are
public agencies and nonprofit organizations. Eligible projects shall
improve watershed health, water quality, or water supply reliability.
All projects shall increase regional and local water
self-sufficiency and meet at least two or more of the following
objectives:
   (1) Promote groundwater recharge and water reuse.
   (2) Reduce energy consumption.
   (3) Use soils, plants, and natural or designed processes to treat
and capture runoff.
   (4) Create or restore native habitat.
   (5) Increase regional and local resiliency and adaptability to
climate change.
   (6) Further the purposes of the California Urban Forestry Act of
1978 (Chapter 2 (commencing with Section 4799.06) of Part 2.4 of
Division 4 of the Public Resources Code) with urban forestry projects
in the immediate proximity of the river.
   (b) At least 75 percent of the funds available pursuant to this
section shall be allocated for projects that are located in or in
close proximity to, major metropolitan cities for a river that has
adopted a revitalization plan as of January 1, 2014. Funds made
available by this subdivision are available for grants along the
entire river and its tributaries, not solely for those river reaches
covered by the revitalization plan.
   79740.  (a) From the funds described in Section 79730, thirty
million dollars ($30,000,000) shall be available  to the
state board  to fund watershed activities by resource
conservation districts.
   (b) To be eligible for the funding available pursuant to this
section, the board of a resource conservation district shall be
appointed by the local county board of supervisors.
   79741.  From the funds described in Section 79730, twenty-five
million dollars ($25,000,000) shall be available  to the
state board  for competitive grants for special districts
and nonprofit organizations for projects that reduce or manage runoff
from agricultural lands for the benefit of surface and groundwater
quality.
   79742.  From the funds described in Section 79730, the sum of one
hundred million dollars ($100,000,000) shall be available to the
Wildlife Conservation Board for wildlife refuges and wildlife habitat
areas under Section 3406(d) of Title 34 of Public Law 102-575.
      CHAPTER 7.  DELTA


   79750.  (a) It is the intent of the people that this chapter
provide funds to protect, restore, and enhance the Delta ecosystem,
improve the water quality, protect the unique cultural, recreational,
natural resource, and agricultural values of the Delta, and protect
the integrity of Delta levees for water conveyance and flood control
purposes.
   (b) The sum of one billion three hundred million dollars
($1,300,000,000) shall be available for the purposes of this chapter.

   79751.  (a) From the funds described in Section 79750, nine
hundred million dollars ($900,000,000) shall be available to the
Sacramento-San Joaquin Delta Conservancy for water quality, ecosystem
restoration, fish protection facilities, 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, including
projects in Delta counties that provide multiple public benefits and
improve drinking or agricultural water quality or water supplies.
   (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) Of the funds available pursuant to subdivision (a), not less
than five hundred million dollars ($500,000,000) shall be made
available for purposes of paragraphs (1) and (2) of subdivision (a).
   (c) Of the funds available pursuant to subdivision (a), not less
than three hundred million dollars ($300,000,000) shall be made
available for purposes of paragraph (3) of subdivision (a).
   (d) Of the funds available pursuant to subdivision (a), not less
than one hundred million dollars ($100,000,000) shall be made
available for purposes of paragraphs (4) and (5) of subdivision (a).
   79752.  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 8.  STATEWIDE WATER SYSTEM OPERATIONAL IMPROVEMENT FOR
DROUGHT PREPAREDNESS


   79760.  (a) Notwithstanding Section 162, the commission may make
the determinations, findings, and recommendations required of it by
this chapter independent of the views of the director. All final
actions by the commission in implementing this chapter shall be taken
by a majority of the members of the commission at a public meeting
noticed and held pursuant to the Bagley-Keene Open Meeting Act
(Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of
Division 3 of Title 2 of the Government Code).
   (b) Notwithstanding Section 13340 of the Government Code, the sum
of three billion dollars ($3,000,000,000) is hereby continuously
appropriated from the fund, without regard to fiscal years, to the
commission for public benefits associated with water storage projects
that improve the operation of the state water system, are cost
effective, and provide a net improvement in ecosystem and water
quality conditions, in accordance with this chapter. Funds authorized
for, or made available to, the commission pursuant to this chapter
shall be available and expended only for the purposes provided in
this chapter, and shall not be subject to appropriation or transfer
by the Legislature or the Governor for any other purpose.
   (c) Projects shall be selected by the commission through a
competitive public process that ranks potential projects based on the
expected return for public investment as measured by the magnitude
of the public benefits provided, pursuant to criteria established
under this chapter.
   (d) Any project constructed with funds provided by this chapter
shall be subject to Section 11590.
   79761.  Projects for which the public benefits are eligible for
funding under this chapter consist of only the following:
   (a) Surface storage projects identified in the CALFED Bay-Delta
Program Record of Decision, dated August 28, 2000, except for
projects prohibited by Chapter 1.4 (commencing with Section 5093.50)
of Division 5 of the Public Resources Code.
   (b) Groundwater storage projects and groundwater contamination
prevention or remediation projects that provide water storage
benefits.
   (c) Conjunctive use and reservoir reoperation projects.
   (d) Local and regional surface storage projects that improve the
operation of water systems in the state and provide public benefits.
   79762.  A project shall not be funded pursuant to this chapter
unless it provides measurable improvements to the Delta ecosystem or
to the tributaries to the Delta.
   79763.  (a) Funds allocated pursuant to this chapter may be
expended solely for the following public benefits associated with
water storage projects:
   (1) Ecosystem improvements, including changing the timing of water
diversions, improvement in flow conditions, temperature, or other
benefits that contribute to restoration of aquatic ecosystems and
native fish and wildlife, including those ecosystems and fish and
wildlife in the Delta.
   (2) Water quality improvements in the Delta, or in other river
systems, that provide significant public trust resources, or that
clean up and restore groundwater resources.
   (3) Flood control benefits, including, but not limited to,
increases in flood reservation space in existing reservoirs by
exchange for existing or increased water storage capacity in response
to the effects of changing hydrology and decreasing snow pack on
California's water and flood management system.
   (4) Emergency response, including, but not limited to, securing
emergency water supplies and flows for dilution and salinity
repulsion following a natural disaster or act of terrorism.
   (5) Recreational purposes, including, but not limited to, those
recreational pursuits generally associated with the outdoors.
   (b) Funds shall not be expended pursuant to this chapter for the
costs of environmental mitigation measures or compliance obligations
except for those associated with providing the public benefits as
described in this section.
   79764.  In consultation with the Department of Fish and Wildlife,
the state board, and the department, the commission shall develop and
adopt, by regulation, methods for quantification and management of
public benefits described in Section 79763 by December 15, 2016. The
regulations shall include the priorities and relative environmental
value of ecosystem benefits as provided by the Department of Fish and
Wildlife and the priorities and relative environmental value of
water quality benefits as provided by the state board.
   79765.  (a) Except as provided in subdivision (c), funds allocated
pursuant to this chapter shall not be allocated for a project before
December 15, 2016, and until the commission approves the project
based on the commission's determination that all of the following
have occurred:
   (1) The commission has adopted the regulations specified in
Section 79764 and specifically quantified and made public the cost of
the public benefits associated with the project.
   (2) The project applicant has entered into a contract with each
party that will derive benefits, other than public benefits, as
defined in Section 79763, from the project that ensures the party
will pay its share of the total costs of the project. The benefits
available to a party shall be consistent with that party's share of
total project costs.
   (3) The project applicant has entered into a contract with each
public agency identified in Section 79764 that administers the public
benefits, after that agency makes a finding that the public benefits
of the project for which that agency is responsible meet all the
requirements of this chapter, to ensure that the public contribution
of funds pursuant to this chapter achieves the public benefits
identified for the project.
   (4) The commission has held a public hearing for the purposes of
providing an opportunity for the public to review and comment on the
information required to be prepared pursuant to this subdivision.
   (5) All of the following additional conditions are met:
   (A) Feasibility studies have been completed.
   (B) The commission has found and determined that the project is
feasible, is consistent with all applicable laws and regulations, and
will advance the long-term objectives of restoring ecological health
and improving water management for beneficial uses of the Delta.
   (C) All environmental documentation associated with the project
has been completed, and all other federal, state, and local
approvals, certifications, and agreements required to be completed
have been obtained.
   (b) The commission shall submit to the Legislature its findings
for each of the criteria identified in subdivision (a) for a project
funded pursuant to this chapter.
   (c) Notwithstanding subdivision (a), funds may be made available
under this chapter for the completion of environmental documentation
and permitting of a project.
   79766.  (a) The public benefit cost share of a project funded
pursuant to this chapter, other than a project described in
subdivision (c) of Section 79761, shall not exceed 50 percent of the
total costs of any project funded under this chapter.
   (b) A project shall not be funded unless it provides ecosystem
improvements as described in paragraph (1) of subdivision (a) of
Section 79763 that are at least 50 percent of total public benefits
of the project funded under this chapter.
   79767.  (a) A project is not eligible for funding under this
chapter unless, by January 1, 2022, all of the following conditions
are met:
   (1) All feasibility studies are complete and draft environmental
documentation is available for public review.
   (2) The commission makes a finding that the project is feasible,
and will advance the long-term objectives of restoring ecological
health and improving water management for beneficial uses of the
Delta.
   (3) The project applicant receives commitments for not less than
75 percent of the nonpublic benefit cost share of the project.
   (b) If compliance with subdivision (a) is delayed by litigation or
failure to promulgate regulations, the date in subdivision (a) shall
be extended by the commission for a time period that is equal to the
time period of the delay, and funding under this chapter that has
been dedicated to the project shall be encumbered until the time at
which the litigation is completed or the regulations have been
promulgated.
   79768.  Surface storage projects funded pursuant to this chapter
and described in subdivision (a) of Section 79761 may be made a unit
of the Central Valley Project as provided in Section 11290 and may be
financed, acquired, constructed, operated, and maintained pursuant
to Part 3 (commencing with Section 11100) of Division 6.
   79769.  (a) The funds allocated for the design, acquisition, and
construction of surface storage projects identified in the CALFED
Bay-Delta Record of Decision, dated August 28, 2000, pursuant to this
chapter may be provided for those purposes to local joint powers
authorities formed by irrigation districts and other local water
districts and local governments within the applicable hydrologic
region to design, acquire, and construct those projects.
   (b) The joint powers authorities described in subdivision (a) may
include in their membership governmental partners that are not
located within their respective hydrologic regions in financing the
surface storage projects, including, as appropriate, cost-share
participation or equity participation. Notwithstanding Section 6525
of the Government Code, the joint powers authorities described in
subdivision (a) shall not include in their membership any for-profit
corporation, or any mutual water company whose shareholders and
members include a for-profit corporation or any other private entity.
The department shall be an ex officio member of each joint powers
authority subject to this section, but the department shall not
control the governance, management, or operation of the surface water
storage projects.
   (c) A joint powers authority subject to this section shall own,
govern, manage, and operate a surface water storage project, subject
to the requirement that the ownership, governance, management, and
operation of the surface water storage project shall advance the
purposes set forth in this chapter.
   79769.5.  (a) In approving the Safe, Clean, and Reliable Drinking
Water Supply Act of 2014, the people were informed and hereby declare
that the provisions of this chapter are necessary, integral, and
essential to meeting the single object or work of the Safe, Clean,
and Reliable Drinking Water Supply Act of 2014. As such, any
amendment of the provisions of this chapter by the Legislature
without voter approval would frustrate the scheme and design that
induced voter approval of this act. The people therefore find and
declare that any amendment of the provisions of this chapter by the
Legislature shall require an affirmative vote of two-thirds of the
membership in each house of the Legislature and voter approval.
   (b) This section shall not govern or be used as authority for
determining whether the amendment of any other provision of this act
not contained in this chapter would constitute a substantial change
in the scheme and design of this act requiring voter approval.
      CHAPTER 9.  GENERAL PROVISIONS


   79770.  The proceeds of bonds issued and sold pursuant to this
division shall be deposited into the Safe Drinking Water, Water
Quality, and Water Supply 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 data shall be collected and
reported to the state board in a manner that is compatible and
consistent with surface water monitoring data systems or groundwater
monitoring data systems 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 8 (commencing with
Section 79760).
   79778.  (a) Prior to disbursing grants or loans pursuant to this
division, each state agency that is required to administer a
financial assistance
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. If the state agency has
previously developed and adopted project solicitation and evaluation
guidelines that meet the requirements of this division, it may use
those guidelines.
   (b) Prior to disbursing funds pursuant to this division, the state
agency shall conduct public meetings to consider public comments
prior to finalizing the guidelines, as determined to be necessary by
the implementing state agency. The state agency shall publish the
draft solicitation and evaluation guidelines on its Internet Web site
at least 30 days before any public meetings. 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 Section 79751, the
Sacramento-San Joaquin Delta Conservancy shall seek to achieve
wildlife conservation objectives through projects on public lands or
voluntary projects on private lands. Funds available pursuant to
Section 79751 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 Sacramento-San
Joaquin Delta Conservancy may develop and implement a competitive
program for habitat enhancements that maximizes voluntary landowner
participation in projects that provide measurable and long-lasting
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 Section 79751, the Sacramento-San Joaquin
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 Section 79751
shall be from willing sellers only.
   (f) In implementing Section 79751, the Sacramento-San Joaquin
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.
   (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) It is the intent of the people that California's working
agricultural and forested 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.
   (j) It is the intent of the people that any funds allocated
pursuant to this division to an investor-owned utility regulated by
the Public Utilities Commission or a mutual water company should be
for the benefit of the ratepayers or the public and not the
investors.
   (k) In allocating funds pursuant to Section 79721, 79722, or
79731, the state board shall consider a written statement prepared by
a local agency formation commission regarding the consolidation or
extension of, or other shared solutions for, water or sewer services.

   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.
   79783.  Funds provided by this division shall be expended in a
manner consistent with the applicable regional water quality control
plan adopted pursuant to Chapter 4 (commencing with Section 13200) of
Division 7 in effect at the time the project is approved.
   79784.  (a) 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.
   (b) Funds provided by this division shall not be expended for the
acquisition or transfer of water rights except for a permanent
dedication of water approved in accordance with Section 1707 where
the state board specifies that the water is in addition to water that
is required for regulatory requirements as provided in subdivision
(c) of Section 1707. The requirement that a dedication of water be
permanent shall not preclude the expenditure of funds provided by
this division for the initiation of the dedication as a short term or
temporary urgency change, that is approved in accordance with
Section 1707 and either Chapter 6.6 (commencing with Section 1435)
of, or Chapter 10.5 (commencing with Section 1725) of, Part 2 of
Division 2, during the period required to prepare any environmental
documentation and for approval of permanent dedication.
   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.  (a) Eligible applicants under this division are public
agencies, nonprofit organizations, public utilities, mutual water
companies, and Indian tribes having a federally recognized governing
body carrying out substantial governmental duties in, and powers
over, any area. 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.
   (b) (1) To be eligible for funding under this division, an urban
water supplier shall adopt and submit an urban water management plan
in accordance with the Urban Water Management Planning Act (Part 2.6
(commencing with Section 10610) of Division 6).
   (2) To be eligible for funding under this division, an
agricultural water supplier shall adopt and submit an agricultural
water management plan in accordance with the Agricultural Water
Management Planning Act (Part 2.8 (commencing with Section 10800) of
Division 6).
   (3) In accordance with Section 10608.56, an agricultural water
supplier or an urban water supplier is ineligible for funding under
this division unless it complies with the requirements of Part 2.55
(commencing with Section 10608) of Division 6.
   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 rights 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) or the
federal Wild and Scenic Rivers Act (16 U.S.C. Sec. 1271 et seq.), 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 or
the federal Wild and Scenic Rivers Act (16 U.S.C. Sec. 1271 et seq.).

   (g) Nothing in this division shall be construed to affect any
contract entered into before January 1, 2013, between the State of
California and one or more of the delta water agencies pursuant to
the authority granted under Chapter 283 of the Statutes of 1973,
Chapter 1089 of the Statutes of 1973, or Chapter 1133 of the Statutes
of 1973, as those chapters may have been amended.
   79794.  All funds provided by this division shall be administered
and expended pursuant to existing law, as those provisions may be
amended, including, but not limited to, the Sacramento-San Joaquin
Delta Reform Act of 2009 (Division 35 (commencing with Section
85000), unless explicitly exempted by this division).
      CHAPTER 10.  FISCAL PROVISIONS


   79820.  (a) Bonds in the total amount of ten billion five hundred
million dollars ($10,500,000,000), 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 finance
committee pursuant to this section. The bonds shall be sold upon the
terms and conditions specified in a resolution to be adopted by the
finance 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 Water Supply Finance
Committee is hereby created. For purposes of this division, the Safe
Drinking Water, Water Quality, and Water Supply Finance Committee is
the "committee" as that term is used in the State General Obligation
Bond Law. The finance 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
finance committee. A majority of the finance committee may act for
the finance committee.
   (b) For purposes of the State General Obligation Bond Law, the
Department of Water Resources is designated the "board."
   79826.  The finance 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 finance committee to be sold for the
purpose of carrying out this division less any amount borrowed
pursuant to Section 79838. Any amounts withdrawn shall be deposited
in the fund. Any moneys 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 moneys deposited in the fund that are 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 finance 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.  (a) The Legislature finds and declares that voter-approved
bonds enacted in the past include funding for projects that are
either no longer necessary or not as vital as other projects to the
continued supply of safe, clean, and affordable water California
needs today. Today's electorate should have the choice to redirect
proceeds from bonds approved decades ago to superior uses given
California's changing water supply needs.
   (b) Notwithstanding any other provision of law and without
limiting any other authorized use, any unencumbered proceeds of bonds
in the following bond funds as of November 5, 2014, may be
appropriated by the Legislature for one or more of the purposes of
Sections 79724,  79729,   79728,  and 79732
of the Water Code, including, but not limited to, making grants as
provided in those provisions rather than for the purposes described
in the bond acts pursuant to which the bonds were issued:
   (1) The 1986 Water Conservation and Water Quality Bond Fund
created pursuant to Section 13453 of the Water Code.
   (2) The 1988 Water Conservation Fund created pursuant to Section
12879.3 of the Water Code.
   (3) The Safe, Clean, Reliable Water Supply Fund created pursuant
to Section 78505 of the Water Code and any accounts therein.
   (4) The Safe Drinking Water, Clean Water, Watershed Protection,
and Flood Protection Bond Fund created pursuant to Section 79013 of
the Water Code and any accounts therein.
   (c) Prior to a grant or any other application of any unencumbered
proceeds of bonds for the purposes of Sections 79724,  79729,
  79728,  and 79732 of the Water Code, either the
finance committee as created by Section 79824 of the Water Code or
the State Water Resources Control Board, whomever is approving the
applicable grant or otherwise applying the bond proceeds, shall
consult with the office of the Treasurer to determine whether the
application of the bond proceeds to the particular purpose and the
related operation and administration of any related project complies
with any federal income tax restrictions and any contractual
agreements then in effect relating to the applicable bonds.
  SEC. 4.  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 Statues of 2012, is repealed.
  SEC. 5.  Sections 2 and 3 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. 6.  Sections 2 and 3 of this act shall take effect upon the
approval by the voters of the Safe Drinking Water, Water Quality, and
Water Supply Act of 2014, as set forth in that section at the
November 4, 2014, statewide general election.
  SEC. 7.  It is the intent of the Legislature to enact legislation
during the 2013-14 Regular Session that would develop statewide
groundwater management plan requirements.
  SEC. 8.  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 water
supply at the earliest possible date, it is necessary that this act
take effect immediately.