BILL NUMBER: SB 927 INTRODUCED
BILL TEXT
INTRODUCED BY Senators Cannella and Vidak
JANUARY 29, 2014
An act to amend Sections 79700, 79702, 79716, 79720, 79720.1,
79720.4, 79721, 79722, 79732, 79744, 79745, 79747, 79749.5, 79770,
and 79810 of, to amend the heading of Division 26.7 (commencing with
Section 79700) of, to repeal Sections 79720.6 and 79824 of, and to
repeal Chapter 9 (commencing with 79750) of Division 26.7 of, the
Water Code, relating to the Safe, Clean, and Reliable Drinking Water
Supply Act of 2014, and declaring the urgency thereof, to take effect
immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 927, as introduced, Cannella. Safe, Clean, and Reliable
Drinking Water Supply Act of 2014.
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. The bond act, among other
things, makes specified amounts available for projects relating to
drought relief, water supply reliability, ecosystem and watershed
protection and restoration, and emergency and urgent actions that
ensure safe drinking water supplies are available in disadvantaged
communities and economically distressed areas. Existing law provides
for the submission of the bond act to the voters at the November 4,
2014, statewide general election.
This bill would rename the bond act as the Safe, Clean, and
Reliable Drinking Water Supply Act of 2014 and make conforming
changes. The bill would instead authorize the issuance of bonds in
the amount of $9,217,000,000 by reducing the amount available for
projects related to drought relief and water supply reliability, as
specified. The bill would remove the authorization for funds to be
available for ecosystem and watershed protection and restoration
projects, and would increase the amount of funds available for
emergency and urgent actions to ensure safe drinking water supplies
in disadvantaged communities and economically distressed areas.
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. The heading of Division 26.7 (commencing with Section
79700) of the Water Code, as amended by Section 1 of Chapter 126 of
the Statutes of 2010, is amended to read:
DIVISION 26.7. THE SAFE, CLEAN, AND RELIABLE DRINKING WATER
SUPPLY ACT OF 2012 2014
SEC. 2. Section 79700 of the Water Code, as amended by Section 2
of Chapter 126 of the Statutes of 2010, is amended to read:
79700. This division shall be known, and may be cited, as the
Safe, Clean, and Reliable Drinking Water Supply Act of 2012
2014 .
SEC. 3. Section 79702 of the Water Code, as amended by Section 3
of Chapter 126 of the Statutes of 2010, is amended to read:
79702. Unless the context otherwise requires, the definitions set
forth in this section govern the construction of this division, as
follows:
(a) "Bay Delta Conservation Plan" means the final plan prepared
pursuant to the planning agreement regarding the Bay Delta
Conservation Plan, dated October 6, 2006.
(b) "Bay-Delta Estuary" means the Delta, Suisun Bay, and Suisun
Marsh.
(c) "CALFED Bay-Delta Program" means the program described in the
Record of Decision dated August 28, 2000.
(d) "Commission" means the California Water Commission.
(e) "Committee" means the Safe, Clean, and Reliable Drinking Water
Supply Finance Committee created by Section 79812.
(f) "Delta" means the Sacramento-San Joaquin Delta, as defined in
Section 12220.
(g) "Delta conveyance facilities" means facilities that convey
water directly from the Sacramento River to the State Water Project
or the federal Central Valley Project pumping facilities in the south
Delta.
(h) "Delta counties" means the Counties of Solano, Yolo,
Sacramento, Contra Costa, and San Joaquin.
(i) "Delta Plan" has the meaning set forth in Section 85059.
(j) "Department" means the Department of Water Resources.
(k) "Director" means the Director of Water Resources.
(l) "Disadvantaged community" has the meaning set forth in
subdivision (a) of Section 79505.5.
(m) "Economically distressed area" means a municipality with a
population of 20,000 persons or less, a rural county, or a reasonably
isolated and divisible segment of a larger municipality where the
segment of the population is 20,000 persons or less, with an annual
median household income that is less than 85 percent of the statewide
median household income, and with one or more of the following
conditions as determined by the department:
(1) Financial hardship.
(2) Unemployment rate at least 2 percent higher than the statewide
average.
(3) Low population density.
(n) "Fund" means the Safe, Clean, and Reliable Drinking Water
Supply Fund of 2012 2014 created by
Section 79716.
(o) "Integrated regional water management plan" has the meaning
set forth in Section 10534.
(p) "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.
(q) "Public agency" means a state agency or department, district,
joint powers authority, city, county, city and county, or other
political subdivision of the state.
(r) "Secretary" means the Secretary of the Natural Resources
Agency.
(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).
SEC. 4. Section 79716 of the Water Code, as amended by Section 4
of Chapter 126 of the Statutes of 2010, is amended to read:
79716. The proceeds of bonds issued and sold pursuant to this
division shall be deposited in the Safe, Clean, and Reliable Drinking
Water Supply Fund of 2012 2014 , which
is hereby created in the State Treasury.
SEC. 5. Section 79720 of the Water Code, as added by Section 1 of
Chapter 3 of the Seventh Extraordinary Session of the Statutes of
2009, is amended to read:
79720. The sum of four hundred fifty-five million
dollars ($455,000,000) three hundred twenty-seven
million dollars ($327,000,000) shall be available, upon
appropriation by the Legislature from the fund, for the purposes of
this chapter.
SEC. 6. Section 79720.1 of the Water Code, as added by Section 1
of Chapter 3 of the Seventh Extraordinary Session of the Statutes of
2009, is amended to read:
79720.1. (a) From the funds described in Section 79720,
one hundred ninety million dollars ($190,000,000)
ninety million dollars ($90,000,000) shall be available, upon
appropriation by the Legislature from the fund, for the planning,
design, and construction of local and regional drought relief
projects that reduce the impacts of drought conditions, including,
but not limited to, the impacts of reductions in Delta diversions.
Eligible projects include all of the following:
(1) Water conservation and efficiency projects, including
installation of the most water efficient fixtures commercially
available.
(2) Water recycling and related infrastructure.
(3) Groundwater cleanup.
(4) Local and regional conveyance projects that improve water
supplies and public benefits associated with conveyance facilities.
(5) Other local and regional water supply reliability projects.
(6) Local and regional surface water storage projects that provide
emergency water supplies and water supply reliability in drought
conditions.
(b) Projects funded pursuant to this section shall meet both of
the following requirements:
(1) The project will provide a sustainable water supply that does
not contribute to groundwater overdraft or increase surface water
diversions.
(2) The project is capable of being operational within two years
of receiving the grant.
(c) Preference shall be given to applicants that can demonstrate
substantial past and current investments in conservation and local
water projects.
(d) Not more than 10 percent of the funds provided pursuant to
this section shall be available for planning, investigations,
studies, and monitoring.
(e) The department shall require a cost share of not less than 50
percent of total project costs from nonstate sources. The department
may waive or reduce the cost-sharing requirement for projects that
directly benefit disadvantaged communities or economically distressed
areas.
(f) From the funds described in this section, the sum of one
hundred million dollars ($100,000,000) shall be made available for
local and regional water projects, including surface storage
projects, that provide emergency water supplies and water supply
reliability in drought conditions in San Diego County.
SEC. 7. Section 79720.4 of the Water Code, as added by Section 1
of Chapter 3 of the Seventh Extraordinary Session of the Statutes of
2009, is amended to read:
79720.4. (a) From the funds
described in Section 79720, eighty million dollars
($80,000,000) seventy-two million dollars
($72,000,000) shall be available for deposit into the Safe
Drinking Water State Revolving Fund created pursuant to Section
116760.30 of the Health and Safety Code.
(b) From the funds described in this section, up to eight million
dollars ($8,000,000) shall be made available for grants for projects
within the City of Maywood that design and implement water supply
infrastructure upgrades that provide for safe drinking water.
SEC. 8. Section 79720.6 of the Water Code, as added by Section 1
of Chapter 3 of the Seventh Extraordinary Session of the Statutes of
2009, is repealed.
79720.6. From the funds described in Section 79720, the sum of
twenty million dollars ($20,000,000) shall be available for water
quality and public health projects on the New River.
SEC. 9. Section 79721 of the Water Code, as added by Section 1 of
Chapter 3 of the Seventh Extraordinary Session of the Statutes of
2009, is amended to read:
79721. The sum of one billion fifty million dollars
($1,050,000,000) one billion forty million dollars
($1,040,000,000) shall be available, upon appropriation by the
Legislature, from the fund to the department for competitive grants
and expenditures in accordance with Section 79722.
SEC. 10. Section 79722 of the Water Code, as added by Section 1 of
Chapter 3 of the Seventh Extraordinary Session of the Statutes of
2009, is amended to read:
79722. (a) Except as provided in subdivision (f), the department
shall award grants to eligible projects that implement an adopted
integrated regional water management plan.
(b) An urban water supplier that does not prepare, adopt, and
submit its urban water management plan in accordance with the Urban
Water Management Planning Act (Part 2.6 (commencing with Section
10610) of Division 6) is ineligible to receive funds made available
pursuant to Section 79721 until the urban water management plan is
prepared and submitted in accordance with the requirements of that
act.
(c) For the purposes of awarding a grant under this chapter, the
department shall require a local cost share of not less than 50
percent of the total costs of the project. The department may waive
or reduce the cost-sharing requirement for projects that directly
benefit a disadvantaged community or an economically distressed area.
(d) Eligible projects are those included in adopted integrated
regional water management plans consistent with Part 2.2 (commencing
with Section 10530) of Division 6, including, but not limited to,
local and regional surface water storage projects.
(e) The funding provided in Section 79721 shall be allocated to
each hydrologic region as identified in the California Water Plan in
accordance with this subdivision. For the South Coast hydrologic
region, the department shall establish three funding areas that
reflect the watersheds of San Diego County (designated as the San
Diego subregion), the Santa Ana River watershed and southern Orange
County (designated as the Santa Ana subregion), and the Los Angeles
and Ventura County watersheds (designated as the Los Angeles
subregion), and shall allocate funds to those areas in accordance
with this subdivision. The North and South Lahontan hydrologic
regions shall be treated as one area for the purpose of allocating
funds. For purposes of this subdivision, the Sacramento River
hydrologic region does not include the Delta. For purposes of this
subdivision, the Mountain Counties Overlay is not eligible for funds
from the Sacramento River hydrologic region or the San Joaquin River
hydrologic region. The department may recognize multiple integrated
regional water management plans in each of the areas allocated
funding. Funds made available by this chapter shall be allocated as
follows:
(1) North Coast: $45,000,000.
(2) San Francisco Bay: $132,000,000.
(3) Central Coast: $58,000,000.
(4) Los Angeles subregion: $198,000,000.
(5) Santa Ana subregion: $128,000,000.
(6) San Diego subregion: $87,000,000.
(7) Sacramento River: $76,000,000.
(8) San Joaquin River: $64,000,000.
(9) Tulare/Kern: $70,000,000.
(10) North/South Lahontan: $51,000,000.
(11) Colorado River Basin: $47,000,000.
(12) Mountain Counties Overlay: $44,000,000.
(13) Interregional: $50,000,000 $40,000,000
.
(f) Interregional funds may be expended directly or granted by the
department to address multiregional needs or state priorities,
including, but not limited to, any of the following:
(1) Investing in new water technology development and deployment.
(2) Meeting state water recycling and water conservation goals.
(3) Adapting to climate change impacts.
(4) Reducing contributions to climate change.
(5) Other projects to improve statewide water management systems.
(6) Other projects and activities designed to meet the needs of
disadvantaged communities or economically distressed areas including
technical and grant writing assistance.
(g) Ten million dollars of the interregional funds shall be
available for a grant to the University of California, Sierra Nevada
Research Institute of the University of California, for the
development and deployment of measurement infrastructure and related
information technology to identify and analyze water supply impacts
of climate change on the Sierra Nevada snow pack and runoff.
SEC. 11. Section 79732 of the Water Code, as added by Section 1 of
Chapter 3 of the Seventh Extraordinary Session of the Statutes of
2009, is amended to read:
79732. (a) A project that receives funding pursuant to
subdivision (a) of Section 79731 shall only be eligible for funding
pursuant to other provisions of this division to the extent that the
combined state funding pursuant to this division does not exceed 50
percent of the total project costs.
(b) The department shall determine what consitututes
constitutes a project for the purposes of
subdivision (a).
SEC. 12. Section 79744 of the Water Code, as added by Section 1 of
Chapter 3 of the Seventh Extraordinary Session of the Statutes of
2009, is amended to read:
79744. In consultation with the Department of Fish and
Game Wildlife , the State Water Resources
Control Board, and the department, the commission shall develop and
adopt, by regulation, methods for quantification and management of
public benefits described in Section 79743 by December 15,
2012 2014 . The regulations shall include the
priorities and relative environmental value of ecosystem benefits as
provided by the Department of Fish and Game
Wildlife and the priorities and relative environmental value of
water quality benefits as provided by the State Water Resources
Control Board.
SEC. 13. Section 79745 of the Water Code, as added by Section 1 of
Chapter 3 of the Seventh Extraordinary Session of the Statutes of
2009, is amended to read:
79745. (a) Except as provided in subdivision (c) , no
funds allocated pursuant to this chapter may
shall not be allocated for a project before
December 15, 2012, 2015, 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 79744 and specifically quantified and made public the cost of
the public benefits associated with the project.
(2) The department has entered into a contract with each party
that will derive benefits, other than public benefits, as defined in
Section 79743, 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 department has entered into a contract with each public
agency identified in Section 79744 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.
SEC. 14. Section 79747 of the Water Code, as added by Section 1 of
Chapter 3 of the Seventh Extraordinary Session of the Statutes of
2009, is amended to read:
79747. (a) A project is not eligible for funding under this
chapter unless, by January 1, 2018, 2020,
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 director 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.
SEC. 15. Section 79749.5 of the Water Code, as amended by Section
6 of Chapter 126 of the Statutes of 2010, is amended to read:
79749.5. (a) In approving the Safe, Clean, and Reliable Drinking
Water Supply Act of 2012 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 2012 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 a 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.
SEC. 16. Chapter 9 (commencing with Section 79750) of Division
26.7 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. 17. Section 79770 of the Water Code, as amended by Section 1
of Chapter 226 of the Statutes of 2010, is amended to read:
79770. (a) The sum of one billion dollars ($1,000,000,000) shall
be available, upon appropriation by the Legislature from the fund,
for expenditures, grants, and loans for projects to prevent or reduce
the contamination of groundwater that serves as a source of drinking
water. Projects shall be consistent with an adopted integrated
regional water management plan. Funds appropriated pursuant to this
section shall be available to the State Department of Public Health
for projects necessary to protect public health by preventing or
reducing the contamination of groundwater that serves as a major
source of drinking water for a community.
(b) Projects shall be prioritized based upon the following
criteria:
(1) The threat posed by groundwater contamination to the affected
community's overall drinking water supplies, including the need for
treatment of alternative supplies if groundwater is not available due
to contamination.
(2) The potential for groundwater contamination to spread and
reduce drinking water supply and water storage for nearby population
areas.
(3) The potential of the project, if fully implemented, to enhance
local water supply reliability.
(4) The potential of the project to increase opportunities for
groundwater recharge and optimization of groundwater supplies.
(c) The State Department of Public Health shall give additional
consideration to projects that meet any of the following criteria:
(1) The project is implemented pursuant to a comprehensive
basinwide groundwater quality management and remediation plan or is
necessary to develop a comprehensive groundwater plan.
(2) Affected groundwater provides a local supply that, if
contaminated and not remediated, will require import of additional
water from outside the region.
(3) The project will serve an economically disadvantaged community
or an economically distressed area.
(4) The project addresses contamination at a site where the
responsible parties have not been identified or where the responsible
parties are unwilling or unable to pay for cleanup.
(d) Of the amount made available by this section, not less than
one hundred million dollars ($100,000,000) shall be available for
costs associated with projects, programs, or activities that meet the
requirements of this section and both of the following criteria:
(1) The costs are part of a basinwide management and remediation
plan for which federal funds have been allocated.
(2) The costs 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 a site listed on the
National Priorities List pursuant to the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980 (42 U.S.C. Sec.
9601 et seq.).
(e) Of the amount made available by this section, one
hundred million dollars ($100,000,000) four hundred
million dollars ($400,000,000) shall be available to the State
Department of Public Health Health, or a
successor agency, for grants and direct expenditures to finance
emergency and urgent actions in accordance with this section on
behalf of disadvantaged communities and economically distressed areas
to ensure that safe drinking water supplies are available to all
Californians.
(f) The Legislature, by statute, shall establish both of the
following:
(1) Requirements for repayment of grant funds in the event of cost
recovery from parties responsible for the groundwater contamination.
(2) Requirements for recipients of grants to make reasonable
efforts to recover costs from parties responsible for groundwater
contamination.
SEC. 18. Section 79810 of the Water Code, as added by Section 1 of
Chapter 3 of the Seventh Extraordinary Session of the Statutes of
2009, is amended to read:
79810. (a) Bonds in the total amount of eleven billion
one hundred forty million dollars ($11,140,000,000)
nine billion two hundred seventeen million dollars ($9,217,000,000)
, not including the amount of any refunding bonds issued in
accordance with Section 79822, or so much thereof as is necessary,
may be issued and sold to provide a fund to be used for carrying out
the purposes expressed in this division and to reimburse the General
Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of
the Government Code. The bonds, when sold, shall be and constitute
valid and binding obligations 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 the principal of, and interest on,
the bonds as the principal and interest become due and payable.
(b) The Treasurer shall sell the bonds authorized by the committee
pursuant to this section. The bonds shall be sold upon the terms and
conditions specified in a resolution to be adopted by the committee
pursuant to Section 16731 of the Government Code.
SEC. 19. Section 79824 of the Water Code, as added by Section 1 of
Chapter 3 of the Seventh Extraordinary Session of the Statutes of
2009, is repealed.
79824. Of the eleven billion one hundred forty million dollars
($11,140,000,000) in bonds authorized in this division, no more than
five billion five hundred seventy million dollars ($5,570,000,000)
shall be sold by the Treasurer before July 1, 2015.
SEC. 20. The Secretary of State shall submit Sections 79700,
79702, 79716, 79720, 79720.1, 79720.4, 79721, 79722, 79732, 79744,
79745, 79747, 79749.5, 79770, and 79810 of, and the heading of
Division 26.7 (commencing with Section 79700) of, the Water Code, as
amended by this act, in place of those sections and that heading, as
added or amended by previous statutes, in order they are voted upon
as a part of the Safe, Clean, and Reliable Drinking Water Act of
2014, at the November 4, 2014, statewide general election. The
Secretary of State shall not submit Sections 79720.6 and 79824 of,
and Chapter 9 (Commencing with Section 79750) of Division 26.7 of,
the Water Code, which are repealed by this act.
SEC. 21. 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 a safe, clean, and reliable water supply at the
earliest possible date, it is necessary that this act take effect
immediately.