BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  SB 848
          Author:   Wolk (D). et al.
          Amended:  7/3/14
          Vote:     27 - Urgency

           
           SENATE NATURAL RESOURCES AND WATER COMM.  :  6-0, 2/11/14
          AYES:  Pavley, Evans, Jackson, Lara, Monning, Wolk
          NO VOTE RECORDED:  Cannella, Fuller, Hueso

           SENATE ENVIRONMENTAL QUALITY COMMITTEE  : 6-2, 2/19/14
          AYES:  Hill, Corbett, Hancock, Jackson, Leno, Pavley
          NOES:  Gaines, Fuller
          NO VOTE RECORDED:  Vacancy

           SENATE GOVERNANCE & FINANCE COMMITTEE  :  5-2, 2/26/14
          AYES:  Wolk, Beall, DeSaulnier, Hernandez, Liu
          NOES:  Knight, Vidak

           SENATE APPROPRIATIONS COMMITTEE  :  5-2, 5/23/14
          AYES:  De León, Hill, Lara, Padilla, Steinberg
          NOES:  Walters, Gaines

           SENATE FLOOR  :  22-9, 6/23/14 (FAIL)
          AYES:  Beall, Corbett, Correa, De León, DeSaulnier, Evans,  
            Galgiani, Hernandez, Hueso, Jackson, Lara, Leno, Lieu, Liu,  
            Mitchell, Monning, Padilla, Pavley, Roth, Steinberg, Torres,  
            Wolk
          NOES:  Anderson, Berryhill, Fuller, Huff, Knight, Morrell,  
            Vidak, Walters, Wyland
          NO VOTE RECORDED:  Block, Calderon, Cannella, Gaines, Hancock,  
            Hill, Nielsen, Wright, Yee

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           SUBJECT  :    Safe Drinking Water, Water Quality, and Water Supply  
          Act of 2014

           SOURCE  :     Author


           DIGEST  :    This bill replaces the $11.14 billion water bond that  
          is currently on the November 2014 ballot with a new $7.5 billion  
          general obligation bond titled "The Safe Drinking Water, Water  
          Quality, and Water Supply Act of 2014," (Act) and seeks voter  
          approval to make unappropriated bond funds from specific water  
          bonds, which were authorized in 2000 and earlier, eligible for  
          appropriation for water supply projects.

           Senate Floor Amendments  of 7/3/14 reduce the size of the bond  
          from $10.5 billion to $7.5 billion and make corresponding  
          changes to each chapter of the bond.

           ANALYSIS  :    

          Existing law:

          1. Approved by the voters, enacted the Water Quality, Supply and  
             Safe Drinking Water Projects Act (Proposition (Prop) 50),  
             which authorized $3.4 billion in general obligation bonds to  
             fund a variety of water projects. 

          2. Approved by voters, enacted the Safe Drinking Water, Water  
             Quality and Supply, Flood Control, River and Coastal  
             Protection Act of 2006 (Prop 84), which authorized $5.388  
             billion in general obligation bonds to fund safe drinking  
             water, water quality and supply, flood control, waterway and  
             natural resource protection, water pollution and  
             contamination control, state and local park improvements,  
             public access to natural resources, and water conservation  
             efforts.  

          4. Approved by the Legislature and currently On November 2014  
             Ballot, SB 2X7 (Cogdill, Chapter 3, Statutes of 2009)  
             provided for the submission of a bond act, the Safe, Clean,  
             and Reliable Drinking Water Supply Act of 2010, to the voters  
             at the November 2, 2010, statewide general election.   
             However, the bond act has been postponed twice and is  

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             currently expected to be on the ballot for the November 4,  
             2014 election.  SB 2X7 provides a total of $11.14 billion to  
             finance a safe drinking water and water supply reliability  
             programs.

          This bill:  

           1. Replaces the $11.14 billion water bond that is currently on  
             the November 2014 ballot with a new $7.5 billion general  
             obligation bond Act.  

           2. Seeks voter approval to make unappropriated bond funds from  
             specific water bonds, which were authorized in 2000 and  
             earlier, eligible for appropriation for water supply  
             projects.

           3. Requires an agency allocating funds provided by this Act to  
             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.

           4. Organizes the proposed bond measure as follows:

              ------------------------------------------------------------ 
             |Chapter 1. |Short Title                        |            |
             |           |                                   |            |
             |-----------+-----------------------------------+------------|
             |Chapter 2. |Findings and Declarations          |            |
             |-----------+-----------------------------------+------------|
             |Chapter 3. |Definitions                        |            |
             |           |                                   |            |
             |-----------+-----------------------------------+------------|
             |Chapter 4. |Safe Drinking Water Projects       |$ 2.350     |
             |-----------+-----------------------------------+------------|
             |Chapter 5. |Water Quality Projects             |  2.3       |
             |-----------+-----------------------------------+------------|
             |Chapter 6. |Sacramento San Joaquin Delta       |  0.850     |
             |-----------+-----------------------------------+------------|
             |Chapter 7. |Statewide Water System Operational |  2.0       |
             |           |Improvement for Drought            |            |
             |           |Preparedness                       |            |
             |-----------+-----------------------------------+------------|
             |Chapter 8. |General Provisions                 |            |

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             |-----------+-----------------------------------+------------|
             |Chapter 9. |Fiscal Provisions                  |            |
             |-----------+-----------------------------------+------------|
             |           |                                   |________    |
             |-----------+-----------------------------------+------------|
             |           |                                   | $7.5       |
             |           |                                   |billion     |
             |           |                                   |            |
              ------------------------------------------------------------ 


           5. Chapter 4.  Safe Drinking Water Projects  .  Authorizes $2.350  
             billion in funding for the following:

              A.    $285 million to the State Water Resources Control  
                Board (Board) for projects to address immediate safe  
                drinking water needs.  

                         Up to $25 million may be used for technical  
                   assistance to disadvantaged communities. 

                         At least 10% of the funds allocated for projects  
                   serving severely disadvantaged communities.

                         Up to $10 million may be used 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. 

              A.    Up to $2.5 million of the funds available to the  
                Drinking Water Capitol Reserve Fund may be available as  
                temporary intitial funding for a polled capital reserve  
                among small water systems and state small water systems.   
                Become inoperative on January 1, 2024.

              B.    $70 million shall be available to the 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.  

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                Grants awarded pursuant to this section shall not exceed  
                $250,000. 

              C.    $825 million to the Department of Water Resources  
                (DWR) for competitive grants for projects that implement  
                an adopted integrated regional water management plan.   
                Eligible projects are those that improve the quality or  
                supply of safe drinking water, increase regional water  
                self-reliance, or address critical water management  
                issues, as specified.  Requires the California Water  
                Commission (Commission) to review the implementation and  
                certify that requirements for grant eligibility are met  
                prior to the DWR making final grant awards.  These funds  
                must 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. 

                Provides that these funds shall be allocated in accordance  
                with the following schedule:

                  (1)       $38,000,000 for the North Coast hydrologic  
                    region.
                  (2)       $115,000,000 for the San Francisco Bay  
                    hydrologic region.
                  (3)       $50,000,000 for the Central Coast hydrologic  
                    region.
                  (4)       $167,000,000 for the Los Angeles subregion.
                  (5)       $103,000,000 for the Santa Ana subregion.
                  (6)       $81,000,000 for the San Diego hydrologic  
                    region.
                  (7)       $70,000,000 for the Sacramento River  
                    hydrologic region.
                  (8)       $56,000,000 for the San Joaquin River  
                    hydrologic region.
                  (9)       $60,000,000 for the Tulare/Kern hydrologic  
                    region.
                  (10)      $45,000,000 for the North/South Lahontan  

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                    hydrologic region.
                  (11)      $40,000,000 for the Colorado River Basin  
                    hydrologic region.

              A.    $1 billion to the 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.

              B.    $85,000,000 shall be available for grants for  
                treatment and remediation activities that prevent or  
                reduce the contamination of groundwater that serves as a  
                source of drinking water.

              C.    $70 million for competitive grants for projects that  
                develop and implement sustainable groundwater management  
                plans, consistent with requirements, as specified, that  
                further sustainable groundwater management.

              D.    $100,000,000 shall be available to the department for  
                direct expenditures and grants for water conservation and  
                water use efficiency plans, projects, and programs,  
                including any of the following:

                (1) Urban water conservation plans, projects, and  
                   programs, including regional projects and programs,  
                   implemented to achieve urban water use targets.  
                   Priority for funding shall be given to programs that do  
                   any of the following:

                   (A) Assist water suppliers and regions to implement  
                      conservation programs and measures that are not  
                      locally cost effective.

                   (B) Support water supplier and regional efforts to  
                      implement programs targeted to enhance water use  
                      efficiency for commercial, industrial, and  
                      institutional water users.

                   (C) Assist water suppliers and regions with programs  
                      and measures targeted toward realizing the  
                      conservation benefits of implementation of the  
                      provisions of the state landscape model ordinance.


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                (2) Agricultural water use efficiency projects and  
                   programs.

                (3) Agricultural water management plans.

            1. Chapter 5.  Water Quality Projects  .  Provides $2.3 billion  
             in funding for the following:

              A.    $290 million to the Board for deposit in the State  
                Water Pollution Control Revolving Fund Small Community  
                Grant Fund 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.  Of the $290  
                million, allocates $10 million to be expended by the Board  
                for technical assistance to eligible communities.   
                Authorizes an additional $20 million to be allocated to  
                the 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  
                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.

              B.    $330 million to the Board for competitive grants for  
                projects that develop, implement, or improve a stormwater  
                capture and reuse plan and that capture and put to  
                beneficial use stormwater or dry weather runoff.   

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                Stormwater capture and reuse projects developed pursuant  
                to an adopted integrated regional water management plan  
                are also eligible for funding provided the projects were  
                developed in substantive compliance with the Stormwater  
                Resources Planning Act.  Eligible projects include any of  
                the following:

                         Projects that capture, convey, treat, or put to  
                   beneficial use stormwater or dry weather runoff.

                         The development of stormwater capture and reuse  
                   plans.

                         Decision support tools, data acquisition, and  
                   data analysis to identify and evaluate the benefits and  
                   costs of potential stormwater capture and reuse  
                   projects.

                         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.

                Gives special consideration to plans or projects that  
                provide multiple benefits such as water quality, water  
                supply, flood control, natural lands, or recreation.   
                Requires a 25% local cost share for grant funds, which may  
                be suspended or reduced for disadvantaged communities.

                Requires the Board to adopt a policy establishing criteria  
                for projects funded by this section to ensure that a  
                funded project complies with water quality laws and does  
                not put at risk any groundwater or surface water supplies.

                Provides that no more than $75 million shall be awarded  
                for the development of stormwater capture and reuse.

              A.    $500 million to the Board for grants for water  
                recycling and advanced treatment technology projects, as  
                specified.  For the purpose of awarding these funds, a  
                local cost share of not less than 50% of the total costs  
                of the project shall be required. The cost-sharing  
                requirement may be waived or reduced for projects that  

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                directly benefit a disadvantaged community.

              B.    $165 million for water quality, river, and watershed  
                protection and restoration projects of statewide  
                importance outside of the Delta.

              C.    $780 million available for projects that protect and  
                improve California's watersheds, wetlands, forests, and  
                floodplains.  

              D.    $135 million to be available to the Secretary of the  
                Natural Resources Agency 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 specified objectives.

              E.    $20 million available to fund watershed activities by  
                resource conservation districts.  Requires that, to be  
                eligible for the funding available pursuant to this  
                chapter, the board of a resource conservation district  
                shall be appointed by the local county board of  
                supervisors.

              F.    $15 million 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.

              G.    $65 million to the Wildlife Conservation Board for  
                wildlife refuges and wildlife habitat areas, as specified.

            1. Chapter 6.  Sacramento-San Joaquin Delta  .  Provides $850  
             million in funding for the following:

              A.    $500 million to the Sacramento-San Joaquin Delta  
                Conservancy for water quality, ecosystem restoration, fish  
                protection facilities, and community sustainability  
                projects that benefit the Delta.  Eligible projects  
                include:


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                 (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.

                 (3)      Projects to assist in preserving economically  
                   viable and sustainable agriculture and other economic  
                   activities in the Delta.

                 (4)      Multibenefit recycled water projects that  
                   improve groundwater management and Delta tributary  
                   ecosystems.

                 (5)      Scientific studies and assessments that support  
                   the Delta Science Program.

                Requires a minimum of $280 million be made available for  
                items #(1) and #(2) above.

                Requires a minimum of $165 million be made available for  
                item #(3) above.  Requires a minimum of $55 million be  
                made available for items #(4) and #(5) above.

                Requires the Conservancy to:

                         Achieve wildlife conservation objectives through  
                   projects on public lands or voluntary projects on  
                   private lands to the extent possible. Funds could be  
                   used for payments to landowners for the creation of  
                   measurable habitat improvements or other improvements  
                   to the condition of endangered or threatened species.

                         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.  

                Requires grantees to demonstrate to the Sacramento-San  
                Joaquin Conservancy how local economic impacts, including  
                impacts related to the loss of agricultural lands, will be  

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                mitigated.

                Authorizes the Sacramento-San Joaquin Conservancy to  
                develop and implement a competitive program for habitat  
                                                                     enhancements that maximizes voluntary landowner  
                participation in projects that provide measurable habitat  
                or species improvements in the Delta.  These funds could  
                not be used to subsidize or decrease the mitigation  
                obligations of any party.

              A.    $350 million to reduce the risk of levee failure and  
                flood in the Delta for any of the following:

                         Local assistance under the Delta levee  
                   maintenance subventions program.

                         Special flood protection projects under Chapter  
                   2 (commencing with Section 12310) of Part 4.8 of  
                   Division 6.

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

                         Emergency response and repair projects.


            1. Chapter 7.  Statewide Water System Operational Improvement  
             for Drought Preparedness.   
          
             A.   $2 billion is 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.   
               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  

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               measured by the magnitude of the public benefits provided,  
               as specified.

               Projects for which the public benefits are eligible for  
               funding under this chapter consist of only the following:

               (1)    Surface storage projects identified in the CALFED  
                 Bay-Delta Program Record of Decision, dated August 28,  
                 2000, except for projects prohibited, as specified.

               (2)    Groundwater storage projects and groundwater  
                 contamination prevention or remediation projects that  
                 provide water storage benefits.

               (3)    Conjunctive use and reservoir reoperation projects.

               (4)    Local and regional surface storage projects that  
                 improve the operation of water systems in the state and  
                 provide public benefits.

               Specifies that 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.   
               Funds may be expended solely for public benefits associated  
               with water storage projects, as specified.

               Provides that funds shall not be expended for the costs of  
               environmental mitigation measures or compliance obligations  
               except for those associated with providing the public  
               benefits as described.

               Requires, in consultation with the Department of Fish and  
               Wildlife (DFW), the Board, and the DWR, the Commission to  
               develop and adopt, by regulation, methods for  
               quantification and management of public benefits by  
               December 15, 2016. The regulations shall include the  
               priorities and relative environmental value of ecosystem  
               benefits as provided by the DFW and the priorities and  
               relative environmental value of water quality benefits as  
               provided by the Board.

               Provides that, with the exception of funds for the  
               completion of environmental documentation and permitting of  
               a project, funds allocated pursuant to this chapter shall  

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               not be allocated for a project before December 15, 2016,  
               and until the Commission approves the project based on the  
               Commission's determination that specified conditions are  
               met.

               Provides that the public benefit cost share of a project  
               funded pursuant to this chapter, other than a project, as  
               described, shall not exceed 50 % of the total costs of any  
               project funded under this chapter.

               Specifies that a project shall not be funded unless it  
               provides ecosystem improvements as specified that are at  
               least 50 % of total public benefits of the project funded  
               under this chapter.

               Provides that a project is not eligible for funding under  
               this chapter unless, by January 1, 2022, specified  
               conditions are met.

               Provides that surface storage projects funded pursuant to  
               this chapter may be made a unit of the Central Valley  
               Project, as specified, and may be financed, acquired,  
               constructed, operated, and maintained.

               Specifies that he 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.

               Specifies that in approving this Act, 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 Act.

           1. Other Provisions of the Bond  .
            
                    All moneys provided by the bond are subject to  
                appropriation by the Legislature.


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                   Requires the bonds authorized by this measure to be  
                prepared, executed, issued, sold, paid, and redeemed as  
                provided in the State General Obligation Bond Law except  
                those provisions restricting the use of bonds to fund the  
                costs of construction or acquisition of capital assets.

                   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 PUC or a mutual water company shall have a clear and  
                definite public purpose and shall benefit the customers of  
                the water system.

                   Up to 10% of funds allocated for each program may be  
                used to finance planning and monitoring necessary for the  
                successful design, selection, and implementation of the  
                projects authorized under that program.  Water quality  
                monitoring data is required to 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  
                Board.

                   No more than 5% of the funds allocated for a program  
                may be used to pay the administrative costs of that  
                program.

                   Funds provided by this bond:

                 o        Shall not be used to acquire land via eminent  
                   domain. 

                 o        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.

                 o        Shall not be expended to pay costs associated  
                   with design, construction, operation, maintenance, or  

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                   mitigation of new Delta conveyance facilities.

                 o        Shall not be used to acquire or transfer water  
                   rights except for a permanent dedication of water for  
                   in stream purposes.

                   Projects funded with proceeds from this bond are  
                required to promote state planning priorities and  
                sustainable communities strategies.

                   Whenever feasible, restoration and ecosystem  
                protection projects must use the services of the  
                California Conservation Corps or certified community  
                conservation corps.

                   Special consideration is 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.

                   Each state agency administering financial assistance  
                program is required to 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.  Before disbursing funds, the state agency  
                must 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 must 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 must transmit copies of the guidelines to the  
                fiscal committees and the appropriate policy committees of  
                the Legislature.

                   The State Auditor is required to conduct an annual  
                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,  

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                and shall make the findings available to the public.

                   The Legislature is authorized to enact legislation  
                necessary to implement programs funded by this measure.

                   Requires the funds to be expended in a manner  
                consistent with the Regional Water Quality Control Plan.

            1. Other Provisions of the Bill  .  The specific bond measures  
             with unappropriated balances are:

                   The 1986 Water Conservation and Water Quality Bond  
                Fund

                   The 1998 Water Conservation Fund 

                   The Safe, Clean, Reliable Water Supply Fund

                   The Safe Drinking Water, Clean Water, Watershed  
                Protection, and  Flood Protection Bond Fund

           Background 

           In November 2009, the Legislature passed and the Governor signed  
          SB 2X7 (Cogdill).  Also known as the Safe, Clean, and Reliable  
          Drinking Water Supply Act of 2010, that law placed on the  
          November 2010 ballot an $11.14 billion general obligation bond  
          before the voters to fund various water resources programs and  
          projects.  

          The Legislature has amended the bond proposal three times,  
          including twice delaying the placement of the bond before the  
          voters.  After initially being delayed to the November 2012  
          ballot, the bond was subsequently delayed to the November 2014  
          ballot, where it remains now.

          Over the course of the last year or two, there has been much  
          discussion on whether the public would support the current  
          November 2014 bond proposal.  Moreover, if the voters would not  
          support that bond proposal, what, if anything, should take its  
          place on the ballot?

          To help answer those questions, the Senate Natural Resources and  
          Water Committee held a joint hearing in February with the Senate  

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          Governance and Finance Committee titled "Overview of  
          California's Debt Condition: Priming the Pump for a Water Bond."  
           That hearing explored California's overall debt condition, the  
          fund balances for various bond funded programs, and the  
          implications for the November 2014 water bond.  

          This was followed two weeks later by a second hearing which  
          asked the question "What's Changed Since the Legislature Passed  
          the Safe, Clean, and Reliable Drinking Water Supply Act of  
          2010?"  That hearing highlighted some of the unanticipated  
          developments that occurred since the drafting of the bond, and  
          posed the policy question "What changes, if any, should be made  
          to the bond in light of recent developments?" 

          Later, on September 24, 2013, the Senate Environmental Quality  
          and the Natural Resources and Water Committees held a joint  
          hearing titled "Setting the Stage for a 2014 Water Bond: Where  
          Are We and Where Do We Need To Go?"  That hearing focused on  
          where the various legislative bond discussions stood, identified  
          issues that may need additional attention, and, where  
          appropriate, suggested alternative approaches for consideration  
          by the members.  
           
          Related Legislation

           SB 927 (Cannella and Vidak) amends the water bond currently on  
          the November 2014 ballot, reducing the authorized amount from  
          $11.14 billion to $9.217 billion, and renames the measure the  
          Safe, Clean, and Reliable Drinking Water Supply Act of 2014. 

          AB 1331 (Rendon) repeals the water bond currently on the  
          November 2014 ballot and replaces it with the Clean and Safe  
          Drinking Water Act of 2014, a $8.2 billion general obligation  
          bond to finance a variety of water resources related programs  
          and projects.

          AB 1445 (Logue) repeals the water bond currently on the November  
          2014 ballot and replaces it with the California Water  
          Infrastructure Act of 2014, a $5.8 billion general obligation  
          bond to finance public benefits associated with water storage  
          and water quality improvements projects.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

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          According to the Senate Appropriations Committee:

           Annual debt service payments of $488 million (General Fund)  
            for 30 years for a total of $14.637 over 30 years.

           Unknown cost pressures of at least $1.1 million (General Fund)  
            for necessary administering agency activities that cannot be  
            paid for by its administrative portion of bond monies or  
            exceeds the 5% cap. 

           Unknown potential costs, likely in the low millions, to the  
            General Fund for the printing and mailing of a supplemental  
            budget. 

           SUPPORT  :   (Verified  7/7/14)

          American Planning Association
          American Rivers
          Amigos de los Rios
          Audubon California
          Bay Area Open Space Council
          Benicia Tree Foundation
          Big Sur Land Trust
          California Association of Local Conservation Corps
          California Association of Resource Conservation Districts
          California Climate and Agriculture Network 
          California ReLeaf
          California Trout 
          Canopy
          Castroville County Sanitation District
          Central Delta Water Agency
           Cities of Cloverdale, Cotati, Healdsburg, Rohnert Park,  
            Sacramento, Sonoma, Ukiah, Santa Rosa, and Watsonville
          City Trees
          Clean Water Action 
          Community Alliance of Family Farmers 
          Community Services Employment Training 
          Community Water Center 
          Contra Costa County Board of Supervisors
          Contra Costa Water District 
           Counties of Humboldt, Marin, Monterey, Placer, San Joaquin,  
            Santa Cruz, Sonoma, and Ventura
          Davenport Sanitation District

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          Environmental Defense Fund
          Freedom Sanitation District
          Friends of the Los Angeles River
          Friends of the River
          Friends of the Urban Forest
          Gold Ridge Resource Conservation District
          Goleta Valley Beautiful
          Hidden Valley Lake Water District
          Hollywood/Los Angeles Beautification Team
          Humboldt Bay Municipal Water District
          Huntington Beach Tree Society
          Incredible Edible Community Garden
          Keep Eureka Beautiful
          Koreatown Youth & Community Center
          LA Conservation Corps
          Land Trust of Santa Cruz County
          Leadership Counsel for Justice and Accountability 
          Local Agencies of the North Delta 
          Marin Municipal Water District
          Monterey County Water Resources Agency
          Napa County Resource Conservation District
          Natural Resources Defense Council
          Nature Conservancy
          North Bay Water Reuse Authority
          North Bay Watershed Association
          North East Trees
          North Marin Water District
          Novato Sanitary District
          Occidental County Sanitation District
          Our City Forest
          Pajaro Valley Water Management Agency
          Peninsula Open Space Trust
          Planning and Conservation League
          Point Blue Conservation Science
          PolicyLink 
          Riverside County Supervisor John J. Benoit
          Roseville Urban Forest Foundation
          Russian River County Sanitation District
          Russian River Watershed Association
          Sacramento County Board of Supervisors
          Sacramento Regional County Sanitation District
          Sacramento Tree Foundation
          Santa Cruz County Resource Conservation District
          Santa Rosa Board of Public Utilities 

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          Save Our Forest
          Solano County Board of Supervisors
          Solano County Water Agency
          Sonoma County Agricultural Preservation and Open Space District
          Sonoma County Water Agency
          Sonoma Resource Conservation District
          Sonoma Valley County Sanitation District
          Soquel Creek Water District
          South Park County Sanitation District
          Town of Windsor
          Tree Davis
          Tree Foundation of Kern
          Tree Musketeers
          Tree Partners Foundation
          TreePeople
          Trout Unlimited 
          Urban Corps San Diego County
          Urban ReLeaf
          Urban Tree Foundation
          Valley Industry & Commerce Association 
          Valley of the Moon Water District
          Water Bond Coalition
          Western Chapter, International Society of Arboriculture
          Woodland Tree Foundation
          Yolo County Board of Supervisors  

           OPPOSITION  :    (Verified  7/7/14)

          Association of California Water Agencies 
          California Building Industry Association 
          California Business Properties Association
          California Chamber of Commerce
          California Citrus Mutual
          California Cotton Ginners and Growers Association
          California Farm Bureau Federation 
          Calleguas Municipal Water District 
          Castaic Lake Water Agency
          Eastern Municipal Water District 
          Kern County Water Agency
          Mesa Water District 
          Metropolitan Water District of Southern California 
          Mojave Water Agency
          Monte Vista Water District 
          Nisei

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          Northern California Water Association 
          San Bernardino Valley Municipal Water District
          Santa Ana Watershed Project Authority
          Southern California Water Committee
          Upper San Gabriel Valley Municipal Water District
          Western Agricultural Processors Association
          Western Growers Association
          Western Municipal Water District
          Westlands Water District
          Wheeler Ridge-Maricopa Water Storage District


          RM:k  8/6/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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