BILL NUMBER: AB 564 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 19, 1999
AMENDED IN ASSEMBLY MAY 25, 1999
AMENDED IN ASSEMBLY MAY 17, 1999
INTRODUCED BY Assembly Member Machado
(Coauthor: Senator Costa)
FEBRUARY 19, 1999
An act to add Division 26 (commencing with Section 79000) to, and
to repeal and add Sections 78626 and 78675 of, the Water Code,
relating to financing a safe drinking water, water quality, flood
protection, and water reliability program , by providing the
funds necessary therefor through the issuance and sale of bonds of
the State of California and by providing for the handling and
disposition of those funds, and declaring the urgency thereof, to
take effect immediately. .
LEGISLATIVE COUNSEL'S DIGEST
AB 564, as amended, Machado. Safe Drinking Water, Clean Water,
Watershed Protection, and Flood Protection Act.
Under existing law, various bond acts have been approved by the
voters to provide funds for water projects, facilities, and programs.
This bill would enact a framework for the Safe Drinking
Water, Clean Water, Watershed Protection, and Flood Protection Act
which, if adopted, would authorize, for purposes of financing a safe
drinking water, water quality, flood protection, and water
reliability program, the issuance, pursuant to the State General
Obligation Bond Law, of bonds in the amount of
$1,800,000,000 $1,890,000,000 . The bill would
also provide a framework for the use of prescribed bond
funds from, and funds repaid to the state pursuant to certain loan
contracts executed pursuant to, the Safe, Clean, Reliable Water
Supply Act, for additional loans under specified programs established
by this act.
The bill would require the Secretary of State to submit
provide a framework under which the bond act
may be submitted to the voters at the March 7, 2000,
statewide direct primary election.
The bill would declare that it is to take effect
immediately as an urgency statute the above provisions
shall not become operative and are for display purposes only, and
therefore no fund would be created and no bonds would be issued or
sold pursuant to its provision, no appropriation would be made in the
bill for any purpose, no portion of the bill would be submitted to
the voters of the State of California, and nothing in the bill would
create any debt or liability of the state .
Vote: 2/3 majority .
Appropriation: no. Fiscal committee: yes
no . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Division 26 (commencing with Section 79000) is added to
the Water Code, to read:
DIVISION 26. SAFE DRINKING WATER, CLEAN WATER, WATERSHED
PROTECTION, AND FLOOD PROTECTION ACT
CHAPTER 1. SHORT TITLE
79000. This division shall be known and may be cited as the Safe
Drinking Water, Clean Water, Watershed Protection, and Flood
Protection Act.
CHAPTER 2. DEFINITIONS
79005. Unless the context otherwise requires, the definitions set
forth in this chapter govern the construction of this division.
79006. "Bay-delta" means the San Francisco Bay/Sacramento-San
Joaquin Delta Estuary.
79007. "Board" means the State Water Resources Control Board.
79008. "CALFED" refers to the consortium of state and federal
agencies with management and regulatory responsibilities in the
bay-delta that are developing a long-term solution to water
management, environmental, and other problems in the bay-delta
watershed.
79009. "Clean Water Act" means the federal Clean Water Act (33
U.S.C.A. Sec. 1251 et seq.), and includes any amendments thereto.
79010. "Committee" means the Safe Drinking Water, Clean Water,
Watershed Protection, and Flood Protection Finance Committee created
by Section 79212.
79011. "Delta" means the Sacramento-San Joaquin Delta.
79012. "Department" means the Department of Water Resources.
79013. "Fund" means the Safe Drinking Water, Clean Water,
Watershed Protection, and Flood Protection Bond Fund created by
Section 79019.
CHAPTER 3. SAFE DRINKING WATER, CLEAN WATER, WATERSHED
PROTECTION, AND FLOOD PROTECTION BOND FUND
79019. The proceeds of bonds issued and sold pursuant to this
division shall be deposited in the Safe Drinking Water, Clean Water,
Watershed Protection, and Flood Protection Bond Fund, which is hereby
created.
CHAPTER 4. SAFE DRINKING WATER PROGRAM
Article 1. Definitions
79020. Unless the context otherwise requires, the following
definitions govern the construction of this chapter.
(a) "Federal act" means the federal Safe Drinking Water Act (42
U.S.C. Sec. 300f et seq.), and includes any amendments thereto.
(b) "State department" means the State Department of Health
Services.
(c) "Supplier" means any persons, partnership, corporation,
association, public agency, or other entity, including any Indian
tribe having a federally recognized governing body carrying out
substantial governmental duties and powers over any area, that owns
or operates a public water system.
Article 2. Safe Drinking Water State Revolving Fund
79021. The sum of one hundred million dollars ($100,000,000) is
hereby transferred from the fund to the Safe Drinking Water State
Revolving Fund created by Section 116760.30 of the Health and Safety
Code.
Article 3. Safe Drinking Water Program
79022. (a) The money transferred to the Safe Drinking Water State
Revolving Fund pursuant to Section 79021, except as otherwise
provided in Section 79025, shall be used by the state department for
loans and grants to suppliers for the purposes of undertaking
infrastructure improvements and related actions to meet safe drinking
water standards, in accordance with the Safe Drinking Water State
Revolving Fund Law of 1997 (Chapter 4.5 (commencing with Section
116760) of Part 12 of Division 104 of the Health and Safety Code).
(b) A supplier that is eligible for grants under Section 300j-12
(i) of the federal act (42 U.S.C.A. Sec. 1452(i)) may concurrently
make application for funds annually appropriated under the federal
act and for bond proceeds made available under this chapter. The
state department shall not place a public water system on the
priority list for project funding or enter into a contract and award
a grant or loan if a supplier has previously received a grant for
public water system expenditure for the same project under Section
300j-12(i) of the federal act (42 U.S.C.A. Sec. 1452(i)) or if the
supplier does not have a public water system permit pursuant to
Section 116525 of the Health and Safety Code. The state department
may place a public water system on the priority list for funding if a
supplier has not otherwise received a letter of commitment to make a
grant from the Administrator of the Environmental Protection Agency
after 180 days from the date of the original submission of an
application for a grant under Section 300j-12(i) of the federal act
(42 U.S.C.A. Sec. 1452(i)).
(c) The Legislature finds and declares that Indian tribes shall be
encouraged to cooperate with an adjacent public water system to
determine whether the delivery of water from the public water system
to the Indian tribe would be feasible and cost-effective in
comparison to the improvement of a public water system owned or
operated by the Indian tribe. The determination of feasibility shall
include an assessment of whether the tribal water supplier possesses
adequate financial, managerial, and technical capability to ensure
the delivery of pure, wholesome, potable water to consumers. The
Legislature further finds and declares that public water suppliers
shall be encouraged to investigate opportunities for Indian tribes to
deliver water beyond trust land boundaries to consumers that may not
be economically served by a public water system.
(d) The department shall encourage loan or grant applicants, where
feasible, to consider the consolidation of small public water
systems and community water systems with other public water systems
to reduce the cost of service and improve the level of protection for
consumers.
(e) To the extent that loans under this chapter which are made to
a public water system regulated by the Public Utilities Commission
bear a lower interest rate than that supplier could receive from
nongovernmental sources, the Public Utilities Commission shall ensure
that the entire benefit of the interest rate differential shall
benefit the ratepayers of that system by including the lower interest
rate when establishing the water system's weighted average cost of
capital.
79023. There is hereby created in the Safe Drinking Water State
Revolving Fund the Technical Assistance Account.
79024. Of the funds transferred pursuant to Section 79021, the
sum of two million dollars ($2,000,000) is hereby transferred from
the Safe Drinking Water State Revolving Fund to the Technical
Assistance Account.
79025. (a) Notwithstanding Section 13340 of the Government Code,
the money in the Technical Assistance Account is hereby continuously
appropriated, without regard to fiscal years, to the state
department, to provide technical assistance to public water systems
in the state in accordance with Section 300j-12(g)(2) of the federal
act (42 U.S.C.A. Sec. 1452(g)(2)). For the purposes of this
section, "technical assistance" includes assistance to disadvantaged
communities, including Indian tribes.
(b) In carrying out its responsibilities under subdivision (a),
the state department may do any of the following:
(1) Assess the technical, managerial, and financial capability of
a disadvantaged community.
(2) Assist an applicant in the preparation of an application for
funding under Chapter 4.5 (commencing with Section 116760) of Part 12
of Division 104 of the Health and Safety Code or Section 300j-12(i)
of the federal act (42 U.S.C.A. Sec. 1452(i)).
(3) Conduct workshops in locations in or near disadvantaged
communities to provide information regarding grants or loans for the
design and construction of projects for public water systems.
79026. Not more than 3 percent of the total amount deposited in
the account may be used to pay costs incurred in connection with the
administration of this chapter.
CHAPTER 5. FLOOD PROTECTION PROGRAM
Article 1. Flood Protection Account
79030. For the purposes of this chapter, "account" means the
Flood Protection Account created by Section 79031.
79031. The Flood Protection Account is hereby created in the
fund. The sum of four hundred forty-five million dollars
($445,000,000) is hereby transferred from the fund to the account.
Article 2. Flood Protection Corridor Program
79035. (a) There is hereby created in the account the Flood
Protection Corridor Subaccount.
(b) For the purposes of this article, "subaccount" means the Flood
Protection Corridor Subaccount created by subdivision (a).
79036. The sum of seventy-five million dollars ($75,000,000) is
hereby transferred from the account to the subaccount for the
purposes of implementing this article.
79037. (a) The money in the subaccount, upon appropriation by the
Legislature to the department, may be used by the department for
flood control projects through direct expenditure for the
acquisition, restoration, enhancement, and protection of real
property for the purposes of flood control protection, agricultural
land preservation, and wildlife habitat protection, and for grants to
local public agencies or nonprofit organizations for these purposes,
and for related administrative costs.
(b) The money in the subaccount shall be used for the protection,
creation, and enhancement of flood protection corridors through all
of the following actions:
(1) Acquiring easements and other interests in real property from
willing sellers to protect or enhance flood protection corridors and
floodplains while preserving or enhancing the agricultural use of the
real property.
(2) Setting back existing flood control levees and, in conjunction
with undertaking those setbacks, strengthening or modifying existing
levees.
(3) Acquiring interests in real property from willing sellers
located in a floodplain that cannot reasonably be made safe from
future flooding.
(4) Acquiring easements and other interests in real property from
willing sellers to protect or enhance flood protection corridors
while preserving or enhancing the wildlife value of the real
property.
79038. (a) For the purposes of this article, the department shall
give highest priority to projects that include either of the
following:
(1) Projects that have been assigned high priority for completion
by the department for flood protection purposes and by the Department
of Conservation for purposes of preserving agricultural land in
accordance with the Agricultural Land Stewardship Program Act of 1995
(Division 10.2 (commencing with Section 10200) of the Public
Resources Code).
(2) Projects that have been assigned high priority for completion
by the department for flood protection purposes and by the Department
of Fish and Game for wildlife habitat protection or restoration
purposes.
(b) For restoration, enhancement, and protection projects, the
services of the California Conservation Corps or Community
Conservation Corps shall be used whenever feasible.
79039. (a) In order to ensure that property acquired under
paragraph (1) of subdivision (b) of Section 79037 remains on the
county tax rolls and in agricultural use to the greatest extend
practicable, the acquisition of easements shall be the preferred
method of acquiring property interests under that paragraph unless
the acquisition of a fee interest is required for management purposes
or the landowner will only consider the sale of a fee interest in
the land. No acquisition of a fee interest shall be undertaken under
paragraph (1) of subdivision (b) of Section 79037 until all
practical alternatives have been considered by the department.
(b) Any proceeds received from the disposal of a fee interest
acquired under this article shall be deposited into the subaccount.
79040. Any acquisition pursuant to this article shall be from
willing sellers.
79041. Prior to acquiring an easement or other interest in land
pursuant to this article, the project shall include a plan to
minimize the impact on adjacent landowners. The plan shall include,
but not be limited to, an evaluation of the impact on floodwaters,
the structural integrity of affected levees, diversion facilities,
customary agricultural husbandry practices, and timber extraction
operations, and an evaluation with regard to the maintenance required
of any facilities that are proposed to be constructed or altered.
79042. Prior to acquiring an easement or other interest in land
pursuant to this article, a public hearing in the local community
shall be held. Notification shall be given to the county board of
supervisors of the affected county, adjacent landowners, affected
water districts, local municipalities, and other interested parties,
as determined by the department.
79043. Money in the subaccount may be used to repair breaches in
the flood control system developed pursuant to this section or caused
by the development of an easement program financed through this
section and to repair water diversion facilities or flood control
facilities damaged by a project developed pursuant to this section or
financed through this section.
79044. (a) (1) In expending grant money pursuant to this article
to acquire an interest in any particular parcel of land, a local
public agency or nonprofit organization may use the money to
establish a trust fund in the amount of not more than 20 percent of
the amount of money paid for the acquisition. Interest from the
trust fund shall be used only to maintain the lands that are acquired
pursuant to this chapter.
(2) For the purposes of this section, maintenance shall include
the preservation of the natural and recreational values of the land,
development of public access in a way that does not degrade the
purposes for which the land was acquired, and maintenance of that
access.
(3) A local public agency or nonprofit organization that acquires
land with money from the subaccount and transfers the land to another
public agency or nonprofit organization shall also transfer the
ownership of the trust fund that was established to maintain that
land.
(b) If the local public agency or nonprofit organization does not
establish a trust fund pursuant to subdivision (a), it shall certify
to the department that it can maintain the land to be acquired from
funds otherwise available to the agency or organization.
(c) This section does not apply to state agencies.
79044.5. (a) It is the intent of the Legislature to address the
problem of soaring federal flood insurance rates by assisting local
governments to meet technical requirements for participation in the
National Flood Insurance Program and the National Flood Insurance
Program's Community Rating System.
(b) Notwithstanding any other provision of this article, of the
funds transferred pursuant to Section 79036, the sum of one million
dollars ($1,000,000) is hereby continuously appropriated, without
regard to fiscal years, to the department, as follows:
(1) Five hundred thousand dollars ($500,000) to educate and
provide technical assistance to cities and counties regarding the
National Flood Insurance Program and the enrollment process.
(2) Five hundred thousand dollars ($500,000) to educate and
provide technical assistance to cities and counties currently
enrolled in the National Flood Insurance Program with regard to the
National Flood Insurance Program's Community Rating System and the
implementation of activities creditable under that system.
79044.7. Not more than 5 percent of the total amount deposited in
the subaccount may be used to pay costs incurred in connection with
the administration of this article.
79044.9. The department may adopt regulations to carry out this
article.
Article 3. Delta Levee Rehabilitation Program
79045. (a) There is hereby created in the account the Delta Levee
Rehabilitation Subaccount.
(b) For the purposes of this article, "subaccount" means the Delta
Levee Rehabilitation Subaccount created by subdivision (a).
79046. The sum of seventy-five million dollars ($75,000,000) is
hereby transferred from the account to the subaccount for the
purposes of implementing this article pursuant to Section 12986.
79047. Notwithstanding Section 13340 of the Government Code, the
money in the subaccount is hereby continuously appropriated, without
regard to fiscal years, to the department, as follows:
(a) Thirty-seven million five hundred thousand dollars
($37,500,000) for local assistance under the delta levee maintenance
subventions program under Part 9 (commencing with Section 12980) of
Division 6, and for the administration of that assistance.
(b) Thirty-seven million five hundred thousand dollars
($37,500,000) for special flood protection projects under Chapter 2
(commencing with Section 12310) of Part 4.8 of Division 6, subsidence
studies and monitoring, and for the administration of this
subdivision. Allocation of these funds shall be for flood protection
projects on Bethel, Bradford, Holland, Hotchkiss, Jersey, Sherman,
Twitchell, and Webb Islands, and at other locations in the delta.
(c) Any funds that are made available under subdivision (a) may be
used to reimburse local agencies for the state's share of costs for
eligible projects completed on or after July 1, 1998.
79048. The expenditure of funds under this article is subject to
Chapter 1.5 (commencing with Section 12306) of Part 4.8 of Division
6.
79049. Of the funds appropriated pursuant to subdivision (a) or
(b) of Section 79047, not more than 5 percent may be expended by the
department to repair levee roads if the damage is attributable to
flood control maintenance.
79050. No expenditure of funds may be made under this article
unless the Department of Fish and Game makes a written determination
as part of its review and approval of a plan or project pursuant to
Section 12314 or 12987. The Department of Fish and Game shall make
its determination in a reasonable and timely manner following the
submission of the project or plan to that department. For the
purposes of this article, an expenditure may include more than one
levee project or plan.
79051. For the purposes of this article, a levee project includes
levee improvements and related habitat improvements undertaken in
the delta at a location other than the location of that levee
improvement.
79052. Following the date on which a program for the bay-delta is
adopted by CALFED, the remaining funds in the subaccount shall be
used for levee rehabilitation improvement projects that, to the
greatest extent possible, are consistent with the program adopted by
CALFED.
Article 4. Flood Control Subventions Program
79055. (a) There is hereby created in the account the Flood
Control Subventions Subaccount.
(b) For the purposes of this article, "subaccount" means the Flood
Control Subventions Subaccount created by subdivision (a).
79056. The sum of one hundred ninety million dollars
($190,000,000) is hereby transferred from the fund to the subaccount.
79057. (a) Notwithstanding Section 13340 of the Government Code,
or any other provision of law, the money in the subaccount is hereby
continuously appropriated, without regard to fiscal year, to the
department to pay for the state's share of the nonfederal costs of
flood control and flood prevention adopted and authorized as of
January 1, 2000, under The State Water Resources Law of 1945 (Chapter
1 (commencing with Section 12570) and Chapter 2 (commencing with
Section 12639) of Part 6 of Division 6), The Flood Control Law of
1946 (Chapter 3 (commencing with Section 12800) of Part 6 of Division
6), and the California Watershed Protection and Flood Prevention Law
(Chapter 4 (commencing with Section 12850) of Part 6 of Division 6),
including the credits and loans to local agencies pursuant to
Sections 12585.3 and 12585.4, subdivision (d) of Section 12585.5, and
Sections 12866.3 and 12866.4, and to implement Chapter 3.5
(commencing with Section 12840) of Part 6 of Division 6.
(b) The money in the subaccount shall be allocated only to
projects in the Counties of Contra Costa, Fresno, Kern, Los Angeles,
Marin, Napa, Orange, Riverside, Sacramento, San Bernardino, San
Diego, Santa Clara, Santa Cruz, Sonoma, and Ventura.
Article 5. Urban Stream Restoration Program
79060. (a) There is hereby created in the account the Urban
Stream Restoration Subaccount.
(b) For the purposes of this article, "subaccount" means the Urban
Stream Restoration Subaccount created by subdivision (a).
79061. The sum of one hundred million dollars ($100,000,000) is
hereby transferred from the account to the subaccount for the
purposes of implementing this article.
79062. The money in the subaccount, upon appropriation by the
Legislature to the department, may be used by the department for both
of the following:
(a) Grants to local agencies and nonprofit organizations for
effective, low-cost flood control projects pursuant to Section 7048.
(b) Grants to local community conservation corps and other
nonprofit corporations for local stream clearance, flood mitigation,
and cleanup activities.
Article 6. Delta Enhancement Program
79065. The sum of five million dollars ($5,000,000) is hereby
transferred from the account to the Delta Recreation Subaccount in
the Delta Improvement Account in the Safe, Clean, Reliable Water
Supply Fund for the purposes of Article 6 (commencing with Section
78560) of Chapter 4 of Division 24.
CHAPTER 6. WATERSHED PROTECTION PROGRAM
Article 1. Watershed Protection Account
79070. For the purposes of this chapter, "account" means the
Watershed Protection Account created by Section 79071.
79071. The Watershed Protection Account is hereby created in the
fund. The sum of two hundred fifty million dollars ($250,000,000) is
hereby transferred from the fund to the account.
Article 2. Watershed Protection Program
79075. (a) There is hereby created in the account the Watershed
Protection Subaccount.
(b) For the purposes of this article, "subaccount" means the
Watershed Protection Subaccount created by subdivision (a).
79076. The sum of one hundred million dollars ($100,000,000) is
hereby transferred from the account to the subaccount for the
purposes of implementing this article.
79077. The purposes of this article are to provide funds to
assist in implementing watershed plans to reduce flooding, control
erosion, improve water quality, and improve aquatic and terrestrial
species habitats, to restore natural systems of groundwater recharge,
native vegetation, waterflows, and riparian zones, to restore the
beneficial uses of waters of the state in watersheds, and to provide
matching funds for federal grant programs.
79078. Unless the context otherwise requires, the following
definitions govern the construction of this article:
(a) "Local agency" means any city, county, city and county,
district, or other political subdivision of the state.
(b) "Local watershed group" means a group consisting of owners and
managers of land within the watershed of interest, and local, state,
and federal government representatives, and interested persons,
other than landowners, who reside or work within the watershed of
interest, and may include other persons, organizations, nonprofit
corporations, and businesses.
(c) "Local watershed management plan" means a document prepared by
a local watershed group that sets forth a strategy to achieve an
ecologically stable watershed, and which does all of the following:
(1) Defines the geographical boundaries of the watershed.
(2) Describes the natural resource conditions within the
watershed.
(3) Describes measurable characteristics for water quality
improvements.
(4) Describes methods for achieving and sustaining water quality
improvements.
(5) Identifies any person, organization, or public agency that is
responsible for implementing the methods described in paragraph (4).
(6) Provides milestones for implementing the methods described in
paragraph (4).
(7) Describes a monitoring program designed to measure the
effectiveness of the methods described in paragraph (4).
(d) "Municipality" has the same meaning as defined in the Clean
Water Act and also includes the state or any agency, department, or
political subdivision thereof, and applicants eligible for technical
assistance under Section 319 or grants under Section 320 of the Clean
Water Act (33 U.S.C. Sec. 1329 or 1330).
(e) "Nonprofit organization" means any California corporation
organized under Sections 501(c)(3) and 501(c)(5) of the Internal
Revenue Code.
(f) "Regional board" means a regional water quality control board.
79079. The money in the subaccount, upon appropriation by the
Legislature to the board, may be used by the board for grants to
municipalities, local public agencies, or nonprofit organizations in
accordance with this article. The grants shall be used to develop
local watershed management plans or to implement projects that are
consistent with local watershed management plans. The board shall
ensure that activities funded by these grants will be coordinated
with activities undertaken by state and federal agencies, and with
other appropriate watershed efforts.
79080. (a) A municipality, local agency, or nonprofit
organization may only receive a grant under this article if the
department determines that both of the following apply:
(1) The municipality, local agency, or nonprofit organization has
adequate legal authority to manage the grant money.
(2) The municipality, local agency, or nonprofit organization is a
member of a local watershed group.
(b) Grants may be awarded for projects that implement methods for
attaining watershed improvements or for a monitoring program
described in a local watershed management plan in an amount not to
exceed five million dollars ($5,000,000) per project. At least 85
percent of the total amount in the subaccount shall be used for
capital outlay projects described in this subdivision.
(c) Eligible projects under this article may do any of the
following:
(1) Reduce chronic flooding problems or control water velocity and
volume using vegetation management or other nonstructural methods.
(2) Protect and enhance greenbelts and riparian and wetlands
habitats.
(3) Restore or improve habitat for aquatic or terrestrial species.
(4) Monitor the water quality conditions and assess the
environmental health of the watershed.
(5) Use Geographic Information Systems to display and manage the
environmental data describing the watershed.
(6) Prevent watershed soil erosion and sedimentation of surface
waters.
(7) Support beneficial
groundwater recharge capabilities.
(8) Otherwise reduce the discharge of pollutants to state waters
from storm water or nonpoint sources.
(d) (1) Grants may be awarded to municipalities, local agencies,
or nonprofit organizations for the development of local watershed
management plans in amounts not to exceed two hundred thousand
dollars ($200,000) per local watershed management plan.
(2) Funding under this subdivision may be used to develop
components of local watershed management plans that contribute to the
development or implementation of species recovery plans.
(e) Grants may be awarded to meet requirements for nonfederal
matching funds set forth in Section 205(j) or 319(h) of the Clean
Water Act (33 U.S.C. Sec. 1285(j) or 33 U.S.C. Sec. 1329(h)).
(f) Projects funded under this article shall be designed to
withstand substantial flooding and shall include a minimum 10-year
maintenance program.
(g) A proponent of a project funded from the subaccount, except a
grant recipient pursuant to subdivision (d), shall be required to
submit to the board a monitoring and reporting plan that does all of
the following:
(1) Describes the baseline water quality of the water body
impacted.
(2) Describes the manner in which the proposed watershed
restoration activities are implemented.
(3) Determines the effectiveness of the watershed restoration
activities in preventing or reducing pollution.
(4) Determines, to the extent feasible, the changes in the pattern
of flow in affected streams, including reduction of floodflows and
increases in spring, summer, and fall flows that result from the
implementation of the project.
(5) Determines, to the extent feasible, the economic benefits
resulting from changes determined pursuant to paragraph (3) or (4).
(h) (1) A grant applicant shall inform the board with regard to
necessary public agency approvals, entitlements, and permits that may
be necessary to implement the project. The municipality, local
agency, or nonprofit organization shall certify to the board, at the
appropriate time, that those approvals, entitlements, and permits
have been granted.
(2) A grant applicant shall notify, in writing, adjoining
landowners of its request for funding under this article and the
scope of the project for which the funding is requested. Upon
completion of the notification required under this paragraph, the
municipality, local agency, or nonprofit organization shall inform
the board that the notification has occurred.
(i) The board may adopt regulations to carry out this article.
(j) In awarding grants under this article, the board shall
consider the extent to which projects do the following:
(1) Consider the entire ecosystem to be protected or restored.
(2) Include definable targets and desired future conditions.
(3) Support local community institutional capacity to restore the
watershed.
(4) Include community decisionmaking by affected stakeholders in
project design and fund allocation.
(5) Help protect intact or nearly intact ecosystems and
watersheds.
(6) Consider the economic benefits of the restoration project or
program.
(7) Address the root causes of degradation, rather than the
symptoms.
(8) Maximize the use of other restoration funds.
(9) Provide long lasting benefits and are capable of surviving
floods.
(10) Include an educational component, if appropriate.
(11) Improve the quality of drinking water and support other
beneficial uses of waters of the state, including coastal waters.
79081. A grant recipient shall obtain written permission from the
landowners of the parcel of land upon which the project is proposed
to be carried out. The written permission shall expressly consent to
the actions described in the grant application.
79082. Not more than 25 percent of a grant may be awarded in
advance of actual expenditures.
79083. (a) A grant recipient shall submit to the board a report
upon the completion of the project or activity funded under this
article. The report shall summarize the completed project and
identify additional steps necessary to achieve the purposes of the
local watershed management plan. The board shall make the report
available to interested federal, state, and local agencies and other
interested parties.
(b) The board shall prepare and submit to the Governor an annual
report regarding the implementation of this article. The annual
report shall include, at a minimum, a discussion relating to the
extent to which the purposes described in Section 79077 are being
furthered by the implementation of this article.
79084. (a) Of the funds transferred pursuant to Section 79076, at
least thirty-five million dollars ($35,000,000) shall be for grants
to small communities.
(b) For the purposes of this article, "small community" means a
municipality with a population of 10,000 persons or less, or a
reasonably isolated and divisible segment of a larger municipality
where the population of the segment is 10,000 persons or less, with a
financial hardship as determined by the board.
(c) If the board determines that any of the funds made available
for grants under this section will not be encumbered for that purpose
on or before January 1, 2007, the board may use these funds for
other purposes of this article.
79085. The board shall give added consideration to projects that
utilize the services of the California Conservation Corps, community
conservation corps, or other local nonprofit entities employing
underprivileged youths.
79086. Notwithstanding any other provision of law, the board
shall terminate any grant where it is determined that the project is
not providing the proposed watershed benefits.
79087. Not more than 3 percent of the total amount deposited in
the subaccount may be used to pay costs incurred in connection with
the administration of this article.
79088. Where recovery plans for coho salmon, steelhead trout, or
other threatened or endangered aquatic species exist, projects funded
under this article shall be consistent with those plans, and to the
extent feasible, shall seek to implement actions specified in those
plans.
Article 3. Water and Watershed Education Program
79090. (a) There is hereby created in the account the Water and
Watershed Education Subaccount.
(b) For the purposes of this article, "subaccount" means the Water
and Watershed Education Subaccount created by subdivision (a).
79091. The sum of fifty million dollars ($50,000,000) is hereby
transferred from the account to the subaccount for the purposes of
implementing this article.
79092. The money in the subaccount, upon appropriation by the
Legislature to the Secretary of the Resources Agency, may be used by
the secretary to carry out this article.
79093. The state shall, to the greatest extent possible, secure
private, local, and federal matching funds to implement this article.
79094. (a) The Secretary of the Resources Agency may make grants
to science education institutions for capital outlay projects to
educate the public about the benefits of watershed protection that
relate to drinking water quality, freshwater quality, coastal water
quality, and fish and wildlife protection. First priority shall be
given to science education institutions that can provide matching
funds.
(b) Science education institutions eligible to receive grants
pursuant to this article include, but are not limited to, local,
state, and nonprofit science centers, natural history museums, and
aquariums.
Article 4. River Protection Program
79100. (a) There is hereby created in the account the River
Protection Subaccount.
(b) For the purposes of this article, "subaccount" means the River
Protection Subaccount created by subdivision (a).
79101. The sum of one hundred million dollars ($100,000,000) is
hereby transferred from the account to the subaccount for the
purposes of implementing this article.
79102. The money in the subaccount, upon appropriation by the
Legislature, may be used to meet the requirements of Article 6
(commencing with Section 78682) of Chapter 6 of Division 24.
79103. At least 60 percent of the funds transferred pursuant to
Section 79101 shall be used for projects that are located in, or in
close proximity to, major metropolitan areas.
79104. Not more than 3 percent of the total amount deposited in
the subaccount may be used to pay the costs incurred in connection
with the administration of this article.
CHAPTER 7. CLEAN WATER AND WATER RECYCLING PROGRAM
Article 1. Clean Water and Water Recycling Account
79105. For the purposes of this chapter, "account" means the
Clean Water and Water Recycling Account created by Section 79106.
79106. The Clean Water and Water Recycling Account is hereby
created in the fund. The sum of three hundred five million
dollars ($305,000,000) is hereby hundred ninety-five
million dollars ($395,000,000) is hereby transferred from the
fund to the account.
Article 2. Nonpoint Source Control Program
79110. The purpose of this article is to provide grant funding
for projects that protect the beneficial uses of water throughout the
state through the control of nonpoint source pollution.
79111. Unless the context otherwise requires, the following
definitions govern the construction of this article:
(a) "Best management practices" means those practices or sets of
practices determined by the board, a regional board, or the water
quality planning agency for a designated area to be the most
effective feasible means of preventing or reducing the generation of
a specific type of nonpoint source of pollution, given technological,
institutional, environmental, and economic constraints.
(b) "Capital costs" have the same meaning as "cost," as defined in
Section 32025 of the Public Resources Code.
(c) "Management measures" means economically achievable measures
to prevent or control the addition of pollutants to state waters,
which reflect the greatest degree of pollutant prevention achievable
through the application of the best available nonpoint pollution
control practices, technologies, processes, siting criteria,
operating methods, or other alternatives.
(d) "Regional board" means a regional water quality control board.
(e) "Subaccount" means the Nonpoint Source Pollution Control
Subaccount created by Section 79112.
79112. There is hereby created in the account the Nonpoint Source
Pollution Control Subaccount.
79113. The sum of one hundred million dollars ($100,000,000) is
hereby transferred from the account to the subaccount for the
purposes of implementing this article.
79114. (a) The money in the subaccount, upon appropriation by the
Legislature to the board, may be used by the board to award grants,
not to exceed five million dollars ($5,000,000) per project, to local
public agencies or nonprofit organizations formed by landowners to
prepare and implement local nonpoint source plans. Grants shall only
be awarded for any of the following projects:
(1) A project that is consistent with local watershed management
plans that are developed under subdivision (d) of Section 79080.
(2) A broad-based nonpoint source project, including those
projects identified in the board's "Initiatives in NPS Management,"
dated September 1995, Nonpoint Source Technical Advisory Committee
Reports.
(3) A project that implements management measures and practices
identified in the 15-year implementation strategy and the five-year
implementation plan set forth in the state's nonpoint source
pollution control program, that meet the requirements of Section 6217
(g) of the federal Coastal Zone Act Reauthorization Amendments of
1990.
(4) A project that is consistent with the "Integrated Plan for
Implementation of the Watershed Management Initiative" prepared by
the board and the regional boards.
(b) The projects funded from the subaccount shall demonstrate a
capability of sustaining water quality benefits. Categories of
nonpoint source pollution addressed by projects may include, but are
not limited to: silviculture, agriculture, urban runoff, mining,
hydromodification, grazing, onsite disposal systems, boat yards and
marinas, confined animal operations, wildfire management,
installation of vegetative systems to filter or retard pollutant
loading, incentive programs or large scale demonstration programs to
reduce commercial reliance on polluting substances or to increase
acceptance of alternative methods and materials, and engineered
features to minimize impacts of nonpoint source pollution. Projects
shall have defined water quality or beneficial use goals.
(c) Projects funded from the subaccount shall utilize best
management practices, management measures, or both.
(d) If projects include capital expenditures for construction,
those expenditures shall be identified by the project applicant. The
grant recipient shall provide a matching contribution for the
portion of the project consisting of capital expenditures for
construction, according to the following formula:
Capital Cost Project Cost/Capital Cost Match by Recipient
$1 million to $5 million, inclusive ................ 40%
$125,000 to $999,999, inclusive .................... 30%
$1 to $124,999, inclusive .......................... 20%
(e) Not more than 25 percent of a grant may be awarded in advance
of actual expenditure.
(f) A proponent of a project funded from the subaccount shall be
required to submit to the board a monitoring and reporting plan that
does all of the following:
(1) Identifies one or more nonpoint sources of pollution.
(2) Describes the baseline water quality of the waterbody
impacted.
(3) Describes the manner in which the proposed practices or
measures are implemented.
(4) Determines the effectiveness of the proposed practices or
measures in preventing or reducing pollution.
(g) Notwithstanding subdivision (b), the board may award up to 5
percent of the total amount deposited in the subaccount for
demonstration projects that are intended to prevent, reduce, or treat
nonpoint source pollution.
(h) A grant recipient shall submit a report to the board, upon
completion of the project, that summarizes completed activities and
indicates whether the purposes of the project have been met. The
report shall include information collected by the grant recipient in
accordance with the project monitoring and reporting plan, including
a determination of the effectiveness of the best management practices
or management measures implemented as part of the project in
preventing or reducing nonpoint source pollution. The board shall
make the report available to watershed groups, and federal, state,
and local agencies.
79115. The board may adopt regulations to implement this article.
79116. Not more than 3 percent of the total amount deposited in
the subaccount may be used to pay the costs incurred in connection
with the administration of this article.
79117. Notwithstanding any other provision of this article, of
the funds transferred pursuant to Section 79113, the sum of ten
million dollars ($10,000,000), upon appropriation by the Legislature
to the board, may be used by the board, after consultation with the
Department of Pesticide Regulation and the Office of Environmental
Health Hazard Assessment, for grants for research, source
identification, and mitigation measures to protect water quality from
potential adverse effects of pesticides.
Article 2.5. Coastal Nonpoint Source Control Program
79118. The purpose of this article is to provide funding for
projects that restore and protect the water quality and environment
of coastal waters, estuaries, bays, and near ocean surface and
groundwaters.
79118.2. Unless the context otherwise requires, the following
definitions govern the construction of this article:
(a) "Educational institution" means community colleges, state
colleges, and the University of California.
(b) "Local public agency" means any city, county, city and county,
district, or other political subdivision of the state.
(c) "Municipality" has the same meaning as defined in the Clean
Water Act and also includes the state or any agency, department, or
political subdivision thereof, and applicants eligible for technical
assistance under Section 319 or grants under Section 320 of the Clean
Water Act (33 U.S.C. Sec. 1329 or 1330).
(d) "Nonprofit organization" means any California corporation
organized under Section 501(c)(3) or 501(c)(5) of the Internal
Revenue Code.
(e) "Regional board" means a regional water quality control board.
(f) "Subaccount" means the Coastal Nonpoint Source Control
Subaccount created by Section 79118.2.
79118.4. There is hereby created in the account the Coastal
Nonpoint Source Control Subaccount.
79118.6. The sum of ninety million dollars ($90,000,000) is
hereby transferred from the account to the subaccount for the
purposes of implementing this article.
79118.8. (a) The money in the subaccount, upon appropriation by
the Legislature to the board, may be used by the board in
consultation with the California Coastal Commission, to award loans
as provided in subdivision (b), and to award grants not to exceed
five million dollars ($5,000,000) per project, to municipalities,
local public agencies, educational institutions, or nonprofit
organizations for the purposes of this article. Grants may be
awarded for any of the following projects:
(1) Projects designed to improve water quality at public beaches
and to make improvements for the purpose of ensuring that coastal
waters adjacent to public beaches meet the bacteriological standards
set forth in Article 2 (commencing with Section 115880) of Chapter 5
of Part 10 of Division 104 of the Health and Safety Code.
(2) Projects to provide comprehensive capability for monitoring,
collecting, and analyzing ambient water quality, including monitoring
technology that can be entered into a statewide information base
with standardized protocols and sampling, collection, storage and
retrieval procedures.
(3) Projects to make improvements to existing sewer collection
systems and septic systems for the restoration and protection of
coastal water quality.
(4) Projects designed to implement storm water and runoff
pollution reduction and prevention programs for the restoration and
protection of coastal water quality.
(5) Projects that are consistent with the state's nonpoint source
control program, as revised to meet the requirements of Section 6217
of the federal Coastal Zone Act Reauthorization Amendments of 1990,
Section 319 of the federal Clean Water Act (33 U.S.C. Sec. 1329), and
the requirements of Division 7 (commencing with Section 13000).
(b) In addition to the grants authorized pursuant to subdivision
(a), the board may make loans not to exceed five million dollars
($5,000,000) per project to municipalities, local public agencies,
educational institutions, or nonprofit organizations for the purposes
set forth in paragraph (3) of subdivision (a).
(c) The projects funded from the subaccount shall demonstrate the
capability of contributing to sustained, long-term water quality or
environmental restoration or protection benefits for a period of 20
years, shall address the causes of degradation, rather than the
symptoms and shall be consistent with water quality and resource
protection plans prepared, implemented, or adopted by the board, the
applicable regional water quality control board, and the California
Coastal Commission.
(d) An applicant for funds from the subaccount shall be required
to submit to the board a monitoring and reporting plan that does all
of the following:
(1) Identifies the nonpoint source or sources of pollution to be
prevented or reduced by the project.
(2) Describes the baseline water quality or quality of the
environment to be addressed.
(3) Describes the manner in which the project is effective in
preventing or reducing pollution and in demonstrating the desired
environmental results.
(e) Upon completion of the project, a recipient of funds from the
subaccount shall submit a report to the board that summarizes the
completed activities and indicates whether the purposes of the
project have been met. The report shall include information collected
by the recipient in accordance with the project monitoring and
reporting plan, including a determination of the effectiveness of the
project in preventing or reducing pollution. The board shall make
the report available to the public, watershed groups, and federal,
state, and local agencies.
(f) If projects include capital costs for construction, those
costs shall be identified by the project applicant. The grant
recipient shall provide a matching contribution for the portion of
the project consisting of capital costs for construction, according
to the following formula:
Capital Cost Project Cost/Capital Cost Match by Recipient
$1 million to $5 million, inclusive ................ 20%
$125,000 to $999,999, inclusive .................... 15%
$1 to $124,999, inclusive .......................... 10%
For the purposes of this subdivision, "capital costs" has the same
meaning as "cost" as defined in Section 32025 of the Public
Resources Code.
(g) Not more than 25 percent of a grant may be awarded in advance
of actual expenditure.
(h) An application for funds from the subaccount shall inform the
board of any necessary public agency approvals, entitlements, and
permits that may be necessary to implement the project. The
application shall certify to the board, at the appropriate time, that
those approvals, entitlements, and permits have been granted.
(i) Where recovery plans for coho salmon, steelhead trout, or
other threatened or endangered aquatic species exist, projects funded
under this article shall be consistent with those plans, and to the
extent feasible, shall seek to implement actions specified in those
plans.
79118.10. The board shall provide opportunity for public review
and comment in awarding funds pursuant to this article, and may, in
consultation with the California Coastal Commission, adopt
regulations to implement this article.
79118.12. Not more than 3 percent of the total amount deposited
in the subaccount may be used to pay the costs incurred in connection
with the administration of this article.
Article 3. Clean Water Program
79120. Unless the context otherwise requires, the following
definitions govern the construction of this article:
(a) "Eligible project" means a project or activity described in
paragraph (1), (2), (3), or (4) of subdivision (a) of Section 13480
that is all of the following:
(1) Necessary to prevent water pollution, reclaim water, or
improve water quality.
(2) Eligible for funds from the State Revolving Fund Loan
Subaccount or federal assistance.
(3) Certified by the board as entitled to priority over other
eligible projects.
(4) Complies with applicable water quality standards, policies,
and plans.
(b) "Federal assistance" means money provided to a municipality,
either directly or through allocation by the state, from the federal
government to construct eligible projects pursuant to the Clean Water
Act.
(c) "Municipality" has the same meaning as defined in the Clean
Water Act and also includes the state or any agency, department, or
political subdivision thereof, and applicants eligible for technical
assistance under Section 319 or grants under Section 320 of the Clean
Water Act (33 U.S.C. Sec. 1329 or 1330).
(d) "Small community" means a municipality with a population of
5,000 persons or less, or a reasonably isolated and divisible segment
of a larger municipality where the segment of the population is
5,000 persons or less, with a financial hardship as determined by the
board.
(e) "Treatment works" has the same meaning as defined in the Clean
Water Act.
79121. There is hereby created in the account all of the
following subaccounts:
(a) The State Revolving Fund Loan Subaccount.
(b) The Small Communities Grant Subaccount.
(c) The Groundwater Remediation Subaccount.
79122. The following amounts are hereby transferred from the
account to the State Revolving Fund Loan Subaccount and the Small
Communities Grant Subaccount and, notwithstanding Section 13340 of
the Government Code, are hereby continuously appropriated, without
regard to fiscal years, to the board, as follows:
(a) Sixty-six million dollars ($66,000,000) to the State Revolving
Fund Loan Subaccount for the purposes of providing loans pursuant to
the Clean Water Act, to aid in the construction or implementation of
eligible projects, and for the purposes described in Section 79124.
(b) Thirty-four million dollars ($34,000,000) to the Small
Communities Grant Subaccount for grants by the board to small
communities for construction of eligible treatment works.
(c) The board may transfer unallocated funds from the State
Revolving Fund Loan Subaccount to the State Water Pollution Control
Revolving Fund created pursuant to Section 13477 for the purposes of
meeting federal requirements for state matching funds to provide
loans in accordance with the Clean Water Act.
79123. The board may adopt regulations to carry out this article.
79124. The board may, by contract or otherwise, undertake
plans, surveys, research, development, and studies necessary or
desirable to carry out this article, and may prepare recommendations
with regard thereto, including the preparation of comprehensive
statewide or areawide studies and reports on the collection,
treatment, and disposal of waste, and wastewater recycling. For the
purposes of this section, "research" may include the design,
acquisition, installation, or construction of monitoring and testing
equipment and related facilities.
79125. Not more than 3 percent of the total amount deposited in
the State Revolving Fund Loan Subaccount and the Small Communities
Grant Subaccount may be used to pay the costs incurred in connection
with the administration of this article.
79126. Not more than 2 percent of the Small Communities Grant
Subaccount may be used for the purposes of Section 79124.
79127. For the purposes of implementing subdivision (a) of
Section 79122, the board may make loans to municipalities, pursuant
to contract, to aid in the construction or implementation of eligible
projects.
79128. (a) For purposes of subdivision (b) of Section 79122, the
board may make grants to small communities so that any combined
federal and state grant does not exceed 971/2 percent of the eligible
cost of necessary studies, planning, design, and construction of the
eligible project determined in accordance with applicable state law
and regulations.
(b) The total amount of grants made pursuant to subdivision (b) of
Section 79122, for any single project, may not exceed three million
five hundred thousand dollars ($3,500,000).
79129. Any contract entered into pursuant to this article for a
loan or grant may include provisions determined by the board, and
shall include all of the following provisions:
(a) An estimate of the reasonable cost of the project.
(b) A description of the type of assistance being offered.
(c) An agreement by the board to pay to the municipality or small
community, during the progress of the project or following
completion, as agreed upon by the parties, the amount specified in
the contract determined pursuant to applicable federal and state
laws.
(d) An agreement by the municipality or small community to proceed
expeditiously with, and complete, the project, commence operation of
the project upon completion, properly operate and maintain the
project in accordance with applicable provisions of law, and provide
for payment of its share of the costs of the project.
79130. All contracts entered into pursuant to this article for
loans or grants are subject to both of the following requirements:
(a) Municipalities seeking assistance shall demonstrate, to the
satisfaction of the board, that an adequate opportunity for public
participation regarding the project has been provided.
(b) Any election held with respect to the project shall include
the voters of the entire municipality unless the municipality
proposes to accept the assistance on behalf of a specified portion or
portions of the municipality, in which case the election shall be
held in that portion or portions of the municipality only.
79131. (a) Any loan made pursuant to Section 79127 shall be fully
amortized not later than 20 years after project completion.
(b) (1) To the extent permitted by federal law, the interest rate
shall be set at a rate equal to 50 percent of the interest rate paid
by the state on the most recent sale of state general obligation
bonds, to be computed according to the true interest cost method.
(2) If the interest rate so determined is not a multiple of
one-tenth of 1 percent, the interest rate shall be set at the next
higher multiple of one-tenth of 1 percent.
(3) The interest rate set for each contract shall be applied
throughout the repayment period of the contract. There shall be a
level annual repayment of principal and interest on the loans.
(4) Any loan under this article used to finance costs of facility
planning, or the preparation of plans, specifications, or estimates
for construction of publicly owned treatment works shall comply with
Section 603(e) of the Clean Water Act (33 U.S.C. Sec. 1383(e)).
(c) (1) Notwithstanding subdivision (b), if the loan applicant is
a municipality or is an applicant for a loan for implementation of a
management program pursuant to Section 319 of the Clean Water Act (33
U.S.C. Sec. 1329), and the applicant provides matching funds, the
interest rate on the loan shall be 0 percent.
(2) A loan recipient described in paragraph (1) that returns to
the State Revolving Fund Loan Subaccount an amount of money equal to
20 percent of the remaining unpaid federal balance of an existing
loan shall have the remaining unpaid loan balance refinanced at a
rate of 0 percent over the time remaining in the original loan
contract.
(d) (1) Notwithstanding subdivision (b), if the loan applicant is
applying for a loan for implementation of a management program
pursuant to Section 319 (33 U.S.C. Sec. 1329), or for nonpoint source
or estuary enhancement pursuant to Section 320 of the Clean Water
Act (33 U.S.C. Sec. 1330), and the applicant does not provide
matching funds, the interest rate on the loan shall be 0.5 percent.
(2) A loan recipient described in paragraph (1) that returns to
the State Revolving Fund Loan Subaccount an amount of money equal to
20 percent of the remaining unpaid federal balance of an existing
loan shall have the remaining unpaid loan balance refinanced at a
rate of 0.5 percent over the time remaining in the original loan
contract.
79132. All principal and interest payments received pursuant to
loan contracts entered into pursuant to this article shall be
deposited in the State Revolving Fund Loan Subaccount for the
purposes of entering into additional loans under this article, and
shall not be transferred to the General Fund.
79133. The sum of thirty million dollars ($30,000,000) is hereby
transferred from the account to the Groundwater Remediation
Subaccount for use, upon appropriation by the Legislature, as
follows:
(a) Up to twenty million dollars ($20,000,000) may be used by the
Department of Toxic Substance Control, in consultation with the
board, to pay for the state's share of the orphan share, as defined
in subdivision (m) of Section 25396 of the Health and Safety Code,
for response actions to groundwater contamination.
(b) Up to ten million dollars ($10,000,000) may be used by the
board for allocation to local agencies for groundwater remediation
projects.
Article 5. Water Recycling Program
79135. Unless the contract otherwise requires, the following
definitions govern the construction of this article:
(a) "Local agency" means any city, county, city and county,
district, joint powers authority, or other political subdivision of
the state.
(b) "Subaccount" means the Water Recycling Subaccount created by
Section 79136.
(c) "Water recycling project" means a water recycling project that
meets applicable reclamation criteria and water reclamation
requirements and that complies with applicable water quality
standards, policies, and plans.
79136. There is hereby created in the account the Water Recycling
Subaccount.
79137. The sum of seventy-five million dollars ($75,000,000) is
hereby transferred from the account to the subaccount for the
purposes of this article.
79138. Unallocated funds remaining in the Water Recycling
Subaccount in the Clean Water and Water Recycling Account in the
Safe, Clean, Reliable Water Supply Fund on March 8, 2000, shall be
transferred to, and all money repaid to the state pursuant to any
loan contract executed under Article 3 (commencing with Section
78620) of Chapter 5 of Division 24 shall be deposited in, the
subaccount for the purposes of entering into additional loans under
this article.
79139. The board may enter into an agreement with the federal
government for federal contributions to the subaccount if all of the
following conditions have been met:
(a) The board has identified any required matching funds.
(b) The board is prepared to commit to the expenditure of any
minimum amount in the subaccount in the manner required by the Clean
Water Act.
(c) Any agreement between the board and the federal government is
consistent with the purposes of this article.
79140. The money in the subaccount, upon appropriation by the
Legislature to the board, may be used by the board, without regard to
fiscal years, for loans and grants to local public agencies for the
production and delivery of recycled water in accordance with Section
79141 and for the purposes described in Sections 79143, 79144, and
subdivision (a) of Section 79145.
79141. The board may enter into agreements with local agencies
for loans and grants for projects to recycle water in accordance with
this article. Criteria to be considered by the board in determining
whether to enter into a contract under this article may include, but
are not limited to, whether the project is a cost-effective means to
supply water or necessary to protect water quality, the readiness of
the local agency to proceed with production and delivery of the
recycled water, the degree to which the production and delivery of
the recycled water improves water supply reliability, water quality,
ecosystem restoration, and other environmental benefits, the net
water savings benefit, the degree to which the production and
delivery of the recycled water would reduce water supply demands on
the bay-delta system, the Colorado River, or other water systems
critical to regional or statewide water supply, the ability to
encourage development of new water recycling projects, and the amount
of funding that the local agency is requesting under this article.
79142. An agreement entered into pursuant to Section 79141 may
include those provisions determined by the board to be necessary for
purposes of this article.
79143. The board may make grants to local public agencies for
facility planning studies for water recycling projects. The amount
of the grants may not exceed seventy five thousand dollars ($75,000)
per study.
79144. The board may, by contract or otherwise, undertake plans,
surveys, research, development, and studies necessary or desirable to
carry out this article, and may prepare recommendations with regard
thereto, including the preparation of comprehensive statewide or
areawide studies and reports on the collection, treatment, and
disposal of waste and wastewater recycling. For the purposes of this
section, "research" may include the design, acquisition,
installation, or construction of monitoring and testing equipment and
related facilities.
79145. (a) Not more than 3 percent of the total amount deposited
in the subaccount may be used to pay the costs incurred in connection
with the administration of this article.
(b) Not more than 2 percent of the total amount deposited in the
subaccount may be used for the purposes of Section 79144.
79146. Notwithstanding any other provision of this article, the
money in the subaccount may not be used to provide financial
assistance to any water recycling project used to augment water
supplies by discharging recycled water into a surface water reservoir
that supplies water directly to a treatment facility for a water
supply system that serves domestic uses.
79147. The board may adopt regulations to carry out this article.
CHAPTER 8. WATER CONSERVATION PROGRAM
Article 1. Findings and Declarations
79150. The Legislature finds and declares that:
(a) Voluntary, cost-effective capital outlay water conservation
programs can help meet the growing demand for clean and abundant
water supplies throughout the state.
(b) The participation of the state in the construction of local
water conservation projects is desirable to further the effective
management of the water resources of the state.
Article 2. General Provisions
79151. Unless the context otherwise requires, the following
definitions govern the construction of this chapter:
(a) "Account" means the Water Conservation Account created by
Section 79152.
(b) (1) "Agricultural water conservation program or project" means
those feasible capital outlay measures undertaken to improve the
efficiency of water use through projects, the benefits of which
exceed the costs.
(2) The programs include, but are not limited to, all of the
following:
(A) The lining or piping of ditches.
(B) Improvements in water distribution system controls such as
automated canal control, construction of small reservoirs within
distribution systems that conserve water that has already been
captured for use, and related physical improvements.
(C) Tailwater pumpback recovery systems.
(D) Major improvements to, or replacement of, dilapidated
distribution systems to reduce leakage and maximize conservation.
(E) Capital outlay features of agricultural water conservation
programs identified in the "Memorandum of Understanding Regarding
Efficient Agricultural Water Management Practices," dated July 16,
1997, and endorsed by the Agricultural Water Management Council.
(c) "Economically disadvantaged area" means any area of the state
for which both of the following statements apply:
(1) A median household income that is less than forty thousand
dollars ($40,000) based on the most recent federal census.
(2) An annual average unemployment rate that is greater than 9
percent based on the most recent federal census.
(d) (1) "Groundwater recharge facilities" means lands and
facilities for artificial groundwater recharge through methods which
include, but are not limited to, percolation using basins, pits,
ditches, and furrows, modified streambeds, flooding, and well
injection. For the purposes of this chapter, expenditures for
"groundwater recharge facilities" include capital outlay expenditures
to expand, renovate, or restructure land and facilities used for the
purposes of groundwater recharge and to acquire additional land for
retention and detention basins.
(2) Groundwater recharge facilities may include any of the
following:
(A) Instream facilities for regulation of water levels, but not
regulation of streamflow to accomplish diversion from the waterway.
(B) Agency-owned facilities for extraction.
(C) Conveyance facilities to convey water to the recharge site,
including devices for flow regulation and measurement of recharge
waters.
(3) Any part or all of the project facilities, including the land
under the facilities, may consist of separable features, or an
appropriate share of multipurpose features, of a larger system, or
both.
(e) "Infrastructure rehabilitation project" means a project
located in an economically disadvantaged area for the repair,
replacement, restoration, or rehabilitation of an existing water
distribution system that delivers water for domestic, municipal, or
industrial uses, including pipelines, pump stations, valves, meters,
reservoirs, and all other appurtenant water delivery facilities that
results in the reduction or elimination of significant distribution
system water losses or replaces a failing system component that
threatens the health, safety, welfare, and economy of areas relying
on the water distribution system.
(f) "Local agency" or "agency" means any city, county, city and
county, district, joint powers authority, or other political
subdivision of the state involved with water management. "Local
agency" or "agency" also means a mutual water company. For purposes
of this chapter, mutual water company means a nonprofit corporation
organized for, or engaged in the business of, developing,
distributing, supplying, or delivering water for irrigation or
domestic use, or both, to its members or shareholders, at actual cost
plus necessary expenses.
(g) "Project" may include any of the following:
(1) Agricultural water conservation project.
(2) Groundwater recharge facilities.
(3) Urban water conservation project.
(4) Infrastructure rehabilitation project.
(h) "Urban water conservation project" means capital outlay
features of urban water conservation programs identified in the
"Memorandum of Understanding Regarding Urban Water Conservation in
California," as amended on April 8, 1998, by the California Urban
Water Conservation Council.
79152. The Water Conservation Account is hereby created in the
fund.
79153. (a) The sum of two hundred million dollars ($200,000,000)
is hereby transferred from the fund to the account for the purposes
of this chapter.
(b) Unallocated funds remaining in the Water Conservation and
Groundwater Recharge Subaccount in the Water Supply Reliability
Account in the Safe, Clean, Reliable Water Supply Fund on March 8,
2000, shall be transferred to, and all money repaid to the state
pursuant to any loan contract executed under Article 3 (commencing
with Section 78670) of Chapter 6 of Division 24 shall be deposited
in, the account for the purposes of entering into additional loans
under Article 3 (commencing with Section 79157) and Article 4
(commencing with Section 79161).
79154. (a) Any loan agreement entered into pursuant to this
chapter may include provisions determined to be necessary by the
department. Any loan agreement pursuant to this chapter shall
include all of the following:
(1) A finding by the department that the agency has the ability to
repay the loan, that the project is cost-effective, and that the
project is feasible from an engineering or hydrologic standpoint, or
both.
(2) An agreement by the agency to proceed expeditiously with, and
complete, the project in conformance with approved plans and
specifications and to operate and maintain the project properly upon
completion throughout the repayment period.
(3) A provision that there shall be no moratorium on, or deferment
of, payments of principal or interest.
(4) (A) A loan period of not more than 20 years with an interest
rate set at a rate equal to 50 percent of the interest rate paid by
the state on the most recent sale of state general obligation bonds,
to be computed according to the true interest cost method.
(B) If the interest rate so determined is not a multiple of 1
percent, the interest rate shall be set at the next multiple of
one-tenth of 1 percent.
(C) The interest rate for each loan agreement shall be applied
throughout the repayment period of the contract. There shall be a
level annual repayment of principal and interest on the loans.
79155. (a) Any grant agreement entered into pursuant to this
chapter may include provisions determined to be necessary by the
department. Any grant agreement pursuant to this chapter shall
include all of the following:
(1) A determination by the department that the project is
economically justified, and that the project is feasible.
(2) An estimate of the reasonable cost and benefit of the project,
including a feasibility report that sets forth the engineering and
financial feasibility of the project, and shall include a description
of the proposed facilities and their relation to other water-related
facilities in the system service area.
79156. Not more than 3 percent of the total amount deposited in
the subaccount may be used by the department to pay the costs
incurred in connection with the administration of this article.
Article 3. Agricultural Water Conservation Program
79157. (a) The sum of fifty million dollars ($50,000,000) in the
account, upon appropriation by the Legislature to the department,
shall be used by the department for loans to local agencies to aid in
the acquisition and construction of agricultural water conservation
projects, and for grants in accordance with Section 79158.
(b) For the purposes of approving a loan under this section, the
department shall determine if there will be a net saving of water as
a result of each proposed project and if the project is determined by
the department to be cost-effective. For the purposes of this
article, a project is cost-effective if the present value of the
benefits from implementing the project exceeds the present value of
the costs of implementing the project.
(c) A project under this article shall not receive any more than
five million dollars ($5,000,000) in loan proceeds from the
department.
(d) The department shall give preference to the agencies that
propose the most cost-effective projects, which result in the
greatest water savings as determined by the department.
79158. (a) The department may make grants to local agencies,
under any terms and conditions as may be determined necessary by the
department, for the purpose of financing feasibility studies of
projects potentially eligible for a loan under Section 79157.
(b) No single feasibility study shall be eligible to receive more
than seventy-five thousand dollars ($75,000), and not more than 5
percent of the total amount deposited in the account may be expended
for the purposes of financing feasibility studies.
(c) A grant for a feasibility study shall not affect the maximum
amount of any loan which may be made under this article.
79159. All principal and interest payments received pursuant to
loan agreements entered into pursuant to this article shall be
deposited in the account, and shall be available for additional loans
under this article, and shall not be transferred to the General
Fund.
79160. Notwithstanding any other provision of law, regulations
adopted by the department pursuant to Chapter 2.3 (commencing with
Section 450.1) of Division 2 of Title 23 of the California Code of
Regulations that are in effect on March 8, 2000, may be used to carry
out Section 79157.
Article 4. Groundwater Recharge Facilities Program
79161. (a) The sum of forty million dollars ($40,000,000) in the
account, upon appropriation by the Legislature to the department,
shall be used by the department for loans to local agencies for the
acquisition and construction of groundwater recharge facilities.
(b) A loan application pursuant under this article shall include
the reasonable cost and benefit of the proposed project, including a
feasibility report which shall set forth the economic justification
for the project, and shall include explanations of the proposed
facilities and their relation to other water supply related
facilities in the basin or region.
(c) A project under this article shall not receive any more than
five million dollars ($5,000,000) in the loan proceeds from the
department.
(d) The department shall give preference under this section to
projects that are located in overdrafted groundwater basins, projects
of critical need, projects whose feasibility studies demonstrate the
greatest engineering and hydrogeologic feasibility as determined by
the department, and projects located in areas that have groundwater
management plans.
Article 5. Infrastructure Rehabilitation Program
79162. (a) The sum of sixty-five million dollars ($65,000,000) in
the account, upon appropriation by the Legislature to the
department, shall be used by the department for grants awarded by the
department to local agencies for the purposes of funding
infrastructure rehabilitation projects.
(b) (1) For the purposes of making grants pursuant to subdivision
(a), the factors to be considered by the department in determining
whether to enter into an agreement shall include, but not be limited
to, the need to implement projects that address one or more of the
following goals:
(A) To protect service reliability.
(B) To provide measurable conservation through the reduction of
system water losses by rehabilitating water delivery systems.
(C) To preserve drinking water quality.
(2) Grants awarded pursuant to subdivision (a) shall be available
for public water systems owned and operated by local agencies in
economically disadvantaged areas with service connections that exceed
200 but are not greater than 16,000 in number. The department shall
give highest priority in awarding grants to those agencies with the
highest retail water rates and service charges as of January 1, 1999.
(c) No single grant under this article shall exceed two million
dollars ($2,000,000).
Article 6. Urban Water Conservation Program
79163. (a) The sum of forty-five million dollars ($45,000,000) in
the account, upon appropriation by the Legislature to the
department, shall be used by the department for grants and loans
awarded by the department to local agencies for the purposes of
funding urban water conservation projects.
(b) The department may make grants to an agency to pay for
feasibility studies. The amount of a grant under this subdivision
shall not exceed fifty thousand dollars ($50,000).
(c) No single grant or loan under this article shall exceed two
million dollars ($2,000,000).
CHAPTER 9. WATER SUPPLY, RELIABILITY, and INFRASTRUCTURE
PROGRAM
Article 1. Water Supply, Reliability, and Infrastructure
Account
79165. For the purposes of this chapter "account" means the Water
Supply, Reliability, and Infrastructure Account created by Section
79166.
79166. The Water Supply, Reliability, and Infrastructure Account
is hereby created in the fund. The sum of five hundred million
dollars ($500,000,000) is hereby transferred from the fund to the
account.
Article 2. Conjunctive Use Program
79170. The Legislature finds and declares that the conjunctive
management of surface water and groundwater is an effective way to
improve the reliability of water supply for all sectors in
California.
79171. Unless the context otherwise requires, the following
definitions govern the construction of this article:
(a) "Conjunctive use" means the temporary storage of water in a
groundwater aquifer through intentional recharge and subsequent
extraction for later use. Storage is accomplished by either of the
following methods:
(1) "Direct recharge" of an aquifer by conducting surface water
into the ground by various means, including spreading ponds and
injection wells for the purpose of making the water stored in the
aquifer available for extraction and use in drier years.
(2) "In-lieu recharge" means increasing the amount of groundwater
available in an aquifer by substituting surface water supplies to a
user who would otherwise pump groundwater.
(b) "Conjunctive use facilities" include land and appurtenant
facilities for any phase of a conjunctive use operation. Appurtenant
facilities may include subsurface
storage, treatment, conveyance, recharge ponds, injection
wells, spreading grounds, monitoring, measurements, subsidence
detection, flow regulation, detention basins to facilitate recharge,
diversion facilities, and extraction facilities.
(c) "Conjunctive use project" means a project that is intended to
produce water supply benefits for the local agency or a project that
is intended to produce water supply benefits for water users,
including the environment, in addition to the local agency.
(d) "Local agency" means any city, county, city and county,
district, joint powers authority, or other political subdivision of
the state.
(e) "Subaccount" means the Conjunctive Use Subaccount created by
Section 79172.
79172. There is hereby created in the account the Conjunctive Use
Subaccount.
79173. The sum of two hundred million dollars ($200,000,000) is
hereby transferred from the account to the subaccount for the
purposes of implementing this article.
79174. The money in the subaccount, upon appropriation by the
Legislature to the department, may be used by the department grants
to local agencies for and other state agencies, or universities, for
feasibility studies, project design, or the construction of
conjunctive use projects on a pilot or larger scale, and for the
acquisition of land for conjunctive use projects.
79175. No single feasibility study may receive more than two
hundred thousand dollars ($200,000), and not more than 2 percent of
the total amount deposited in the subaccount may be expended for
purposes of financing feasibility studies.
79176. For the purpose of approving projects pursuant to this
article, the department shall determine all of the following with
regard to each proposed project:
(a) The magnitude of the actual increase in water supply yield and
reliability compared to preexisting conditions.
(b) The consistency with the plans or recommendations proposed by
the CALFED.
(c) The distribution of the benefits to water supply and to the
environment.
(d) The availability of the storage for conserved water.
(e) The technical and environmental suitability of the groundwater
basin for conjunctive use.
(f) The potential to reduce critically overdrafted conditions in a
groundwater basin.
(g) The need for the project.
(h) The potential to alleviate saltwater intrusion into
groundwater basins or other groundwater quality degradation.
(i) The economic, engineering, and hydrogeologic justification for
the project.
(j) The availability of third party or local matching funds from
any source other than the Restoration Fund authorized by the Central
Valley Project Improvement Act.
(k) The involvement of one or more local agencies whose
jurisdiction or water service area overlies or is adjacent to the
aquifer utilized to store water.
(l) The potential to reduce dry year demand for surface water
under existing contracts.
(m) The existence of a system for the recovery of the stored water
or an agreement with the department or a local agency for the
installation of that system.
(n) Whether the project is located in an area that is subject to a
groundwater management program.
79177. To be eligible for funding for the construction of a
conjunctive use project under this article, an applicant that is
other than a local agency shall be required to carry out that project
with the participation of a local agency. The department or a local
agency may provide technical assistance, coordination, or any other
assistance in implementing a project or study if requested by the
participating local agency.
79178. No construction project may receive more than twenty-five
million dollars ($25,000,000) from the subaccount.
79179. Not more than 3 percent of the total amount deposited in
the subaccount may be used to pay the costs incurred in connection
with the administration of this article.
79180. Not less than 331/3 percent of the total amount deposited
in the subaccount shall be expended for studies, projects, and
facilities within watersheds that flow perennially into the delta.
79181. (a) A project undertaken pursuant to this article shall
fully protect and preserve the groundwater rights of the overlying
landowners and shall fully protect and preserve the stored water
property rights of the project participants. The department shall
not provide funding for a project unless it determines that the
project will be designed and operated in a manner that ensures that
other users of the same or a hydrologically related aquifer will not
suffer any unreasonable diminution of the quantity or quality of
their groundwater supplies or incur additional uncompensated expense
as a result of the implementation of the project.
(b) For the purposes of receiving funding a conjunctive use
project pursuant to this article, the applicant shall be required to
do both of the following:
(1) Provide for a continuing groundwater monitoring and mitigation
program.
(2) Limit the extraction of the groundwater to the amount of water
that is stored or recharged by the project participants.
(c) Persons and agencies participating in the project may not
assert a claim file or a cause of action against an overlying
landowner who is not exceeding either of the following:
(1) Its historic rate of groundwater pumping.
(2) The full amount of groundwater to which it would be entitled
to under state law regarding prior rights to groundwater and
reasonable beneficial use on its land that overlies the groundwater.
(d) The overlying landowners may not assert a claim or file a
cause of action against the persons or agencies participating in the
project if the project is implemented in compliance with this
section.
(e) Nothing in this article modifies state law with regard to
groundwater rights, regulation, or management.
79182. In carrying out this article and awarding grants, the
department shall convene and consult an advisory committee comprised
of technically qualified representatives of local water agencies,
environmental interests, and farmers who use groundwater. The
advisory committee shall be geographically balanced to reflect the
communities that use water in the Central Valley. If a member of the
advisory committee, or a member of his or her immediate family, is
employed by a grant applicant or the employer of a grant applicant,
the committee members shall make that disclosure to the other members
of the committee and shall not participate in the review of the
grant application of that applicant.
79183. The department may adopt regulations to carry out this
article.
Article 3. Bay-Delta Multipurpose Water Management Program
79190. Unless the context otherwise requires, the following
definitions govern the construction of this article:
(a) "CALFED Bay-Delta Program" or "program" means the undertaking
by CALFED pursuant to the Framework Agreement dated June 20, 1994, to
develop a long-term solution to water management, environmental, and
other problems in the bay-delta watershed by means of a programmatic
environmental impact statement/environmental impact report.
(b) "CALFED EIS/EIR" means the final programmatic environmental
impact statement/environmental impact report prepared by CALFED.
(c) "CALFED stage 1 action" means an action identified in the
preferred alternative of the CALFED EIS/EIR as an action intended for
implementation during stage 1 of Phase III of the CALFED Bay-Delta
Program.
(d) (1) "Eligible project" means a demonstration project, subject
to the CALFED adaptive management principle which requires an
assessment of the performance of the demonstration projects in order
to determine which projects are successful in achieving the goals of
the program.
(2) "Eligible project" means a project that meets both of the
following requirements.
(A) The project is identified in the CALFED EIS/EIR as a CALFED
stage 1 action.
(B) The project does one or more of the following:
(i) Constructs treatment facilities or relocates discharge
facilities for agricultural drainage generated within the delta to
improve water quality in the delta or the quality of water that is
transported from the delta.
(ii) Constructs facilities to control waste discharges that
contribute to low dissolved oxygen and other water quality problems
in the lower San Joaquin River and the south delta.
(iii) Constructs fish facilities for the State Water Project or
the Central Valley Project intakes in the south delta, such as
facilities for fish screens, fish handling, and fish passage, or
modifications to intake structures or other facilities, to reduce
losses of all life stages of fish to unscreened water diversions in
the San Joaquin River and the delta in accordance with paragraph (1)
of Section (C) of Chapter IV of the board's 1995 water quality
control plan.
(iv) Constructs a permanent barrier at the head of Old River to
improve fish migration and other permanent barriers in the south
delta channels to improve water quality and water level for local
diversions.
(v) Constructs facilities to control drainage from abandoned mines
that adversely affect water quality in the bay-delta.
(e) "Subaccount" means the Bay-Delta Multipurpose Water Management
Subaccount created by Section 79195.
79191. This article does not affect the authority of any agency
pursuant to any other provision of law to expend funds for the
purposes described in this article.
79192. The Legislature hereby finds and declares all of the
following:
(a) CALFED is in the process of preparing a programmatic EIS/EIR
for a long-term comprehensive plan that will resolve problems related
to ecosystem restoration, including the recovery of endangered
species such as Chinook salmon, water quality, water supply, water
management, and system integrity for the protection of beneficial
uses of the bay-delta ecosystem.
(b) The CALFED Bay-Delta Program is of statewide and national
importance. The state should participate in the funding of eligible
projects as a part of its ongoing program to improve conditions in
the bay-delta ecosystem.
(c) The programmatic EIS/EIR will include a schedule for funding
and implementing all elements of the long-term comprehensive plan.
(d) The elements of the CALFED Bay-Delta Program will achieve
balanced solutions in all identified problem areas, including the
ecosystem, water quality, water supply, and system integrity.
79193. (a) This article does not authorize the implementation of
the CALFED Bay-Delta Program or any element of that program. The
implementation of the CALFED Bay-Delta Program, or any element of
that program, shall only be undertaken pursuant to authority provided
by law other than this division.
(b) Nothing in this article affects the obligation to comply with
provisions of existing law in connection with the implementation of
this article.
79194. There is hereby created in the account the Bay-Delta
Multipurpose Water Management Subaccount.
79195. (a) The sum of three hundred million dollars
($300,000,000) is hereby transferred from the account to the
subaccount for the purposes of this article, as follows:
(1) Thirty million dollars ($30,000,000) for projects described in
clause (i) of subparagraph (B) of paragraph (2) of subdivision (d)
of Section 79190.
(2) Forty million dollars ($40,000,000) for projects described in
clause (ii) of subparagraph (B) of paragraph (2) of subdivision (d)
of Section 79190.
(3) One hundred fifty million dollars ($150,000,000) for projects
described in clause (iii) of subparagraph (B) of paragraph (2) of
subdivision (d) of Section 79190.
(4) Thirty million dollars ($30,000,000) for projects described in
clause (iv) of subparagraph (B) of paragraph (2) of subdivision (d)
of Section 79190.
(5) Fifty million dollars ($50,000,000) for projects described in
clause (v) of subparagraph (B) of paragraph (2) of subdivision (d) of
Section 79190.
(b) Notwithstanding subdivision (a), the department may use funds
described in paragraphs (1) to (5), inclusive, of subdivision (a) for
any of the purposes described in those paragraphs.
79196. (a) The money in the subaccount, upon appropriation by the
Legislature to the department, may be used by the department to
carry out this article.
(b) No funds in the subaccount shall be used by the department
unless and until the department has consulted, on an annual basis,
with the state and federal agencies that participate in CALFED, as
well as representatives of the public convened as a duly authorized
advisory committee, with regard to the specific projects proposed for
funding under this article. Decisions regarding specific
expenditures of funds provided under this article shall be jointly
determined, to the maximum extent possible, by the recommendations of
the state and federal CALFED agencies with the advice of the
advisory committee.
79197. No funds in the subaccount may be expended until all of
the following conditions have been met:
(a) The CALFED EIS/EIR has been certified by the state lead agency
and a notice of determination has been issued as required by
Division 13 (commencing with Section 21000) of the Public Resources
Code.
(b) The CALFED EIS/EIR has been filed by the federal lead agencies
with the federal Environmental Protection Agency, the required
notice has been published in the Federal Register, and there has been
federal approval of a program identical to the program approved by
the state.
79198. The state, to the greatest extent possible, shall secure
federal and nonfederal funds to implement this article.
79199. Due to the importance of issuing permits and otherwise
expediting all elements of the CALFED Bay-Delta Program in a timely
and balanced manner, the following procedures shall apply to the use
of funds authorized by this article:
(a) After the requirements set forth in Section 79197 are met,
funds in the subaccount shall become available for use in accordance
with the schedule for eligible projects set forth in the final
programmatic EIS/EIR, unless and until the Secretary of the Resources
Agency determines that the schedule established in the final
programmatic EIS/EIR has not been substantially adhered to.
(b) On or before November 15 of each year, the Secretary of the
Resources Agency, in consultation with state and federal CALFED
representatives and other interested persons and agencies, shall
review adherence to the schedule.
(c) The absence of funding from nonfederal or nonstate sources
shall not be a basis for a determination that the schedule has not
been adhered to.
(d) If, at the conclusion of each annual review, the Secretary of
the Resources Agency determines that the schedule established in the
final programmatic EIS/EIR, or a revised schedule prepared pursuant
to this subdivision, has not been substantially adhered to, the
secretary, after notice to, and consultation with, state and federal
CALFED representatives and other interested persons and agencies,
shall prepare a revised schedule that ensures that balanced solutions
in all identified problem areas, including ecosystem restoration,
water supply, water quality, and system integrity are achieved,
consistent with the intent of the final programmatic EIS/EIR. Funds
shall be available for expenditure unless a revised schedule has not
been developed within six months from the date on which the secretary
determines that the prior schedule has not been substantially
adhered to. Upon the preparation of any revised schedule under this
subdivision, funds shall be expended in accordance with that revised
schedule.
(e) Funds in the subaccount shall become available in accordance
with the cost-share agreement developed by the CALFED Bay-Delta
Program, which shall describe the federal, state, and local share of
funding for the programs, projects, and other CALFED stage 1 actions.
79200. On or before December 15 of each year, the Secretary of
the Resources Agency shall submit an annual report to the Legislature
that describes the status of the implementation of all elements of
the CALFED Bay-Delta Program, any determinations made by the
secretary pursuant to subdivisions (b) and (d) of Section 79199 and
other significant scheduling issues. The report also shall include a
detailed accounting of expenditures, descriptions of programs for
which expenditures have been made, and a schedule of anticipated
expenditures for the next year.
79201. The report prepared pursuant to Section 79200 shall
include both of the following:
(a) A summary of the results achieved by the projects funded under
this article.
(b) An identification of any necessary modifications that should
be made to eligible projects or other CALFED bay-delta projects, to
ensure that the goals and objectives of CALFED are met.
79202. (a) Any water that is incidentally developed for use by an
eligible project described in clause (i) or (ii) of subparagraph (B)
of paragraph (2) of subdivision (d) of Section 79190 that is funded
in whole or in part under this article shall be shared equitably
between consumptive uses and the environment.
(b) For purposes of this section, CALFED, with the advice of the
Bay Delta Advisory Committee, or its successor, shall prepare, and
submit to the Legislature, a recommendation with regard to the
sharing formula to be applied to any water that is incidentally
developed in a manner described in subdivision (a).
(c) Nothing in this section in any way affects the water rights of
any person or agency who holds the water rights including rights
under area of origin statutes.
(d) (1) Nothing in this section affects the authority of the board
or any other agency.
(2) This section shall not be used as precedent in any regulatory
proceeding.
(3) This section applies only to any water that is incidentally
developed for use by an eligible project described in clause (i) or
(ii) of subparagraph (B) of paragraph (2) of subdivision (d) of
Section 79190 that is funded in whole or in part under this article.
(4) This section is not intended to establish precedent.
79203. Not more than 3 percent of the total amount deposited in
the subaccount may be used to pay the costs incurred in connection
with the administration of this article.
CHAPTER 10. FISCAL PROVISIONS
79210. Bonds in the total amount of one billion eight
hundred million dollars ($1,800,000,000), not including
hundred ninety million dollars ($1,890,000,000), not including
the amount of any refunding bonds issued in accordance with
Section 79219, 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 be used 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 the principal of, and interest on, the
bonds as the principal and interest become due and payable.
79211. (a) 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), except Section 16727, 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.
(b) For purposes of the State General Obligation Bond Law, the
department is designated the "board."
79212. Solely for the purpose of authorizing the issuance and
sale, pursuant to the State General Obligation Bond Law, of the bonds
authorized by this division, the Safe Drinking Water, Clean Water,
Watershed Protection, and Flood Protection Finance Committee is
hereby created. For purposes of this division, the Safe Drinking
Water, Clean Water, Watershed Protection, and Flood Protection
Finance Committee is the "committee" as that term is used in the
State General Obligation Bond Law. The committee consists of the
Treasurer, the Controller, and the Director of Finance, or their
designated representatives. A majority of the committee may act for
the committee.
79213. The committee shall determine whether or not it is
necessary or desirable to issue bonds authorized pursuant to this
division in order to carry out the actions specified in this division
and, if so, the amount of bonds to be issued and sold. Successive
issues of bonds may be authorized and sold to carry out those actions
progressively, and it is not necessary that all of the bonds
authorized to be issued be sold at any one time.
79214. 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
which is necessary to collect that additional sum.
79215. 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 79216, appropriated
without regard to fiscal years.
79216. For the purposes of carrying out this division, the
Director of Finance may authorize the withdrawal from the General
Fund of an amount not to exceed the amount of the unsold bonds that
have been authorized by the committee to be sold for the purpose of
carrying out this division. Any amount withdrawn shall be deposited
in the fund. Any money made available under this section shall be
returned to the General Fund, plus an amount equal to the interest
that the money would have earned in the Pooled Money Investment
Account, from proceeds received from the sale of bonds for the
purpose of carrying out this division.
79217. All money deposited in the fund that is derived from
premium and accrued interest on bonds sold shall be reserved in the
fund and shall be available for transfer to the General Fund as a
credit to expenditures for bond interest.
79218. The department 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. The amount of the request shall not
exceed the amount of the unsold bonds that the committee, by
resolution, has authorized to be sold for the purpose of carrying out
this division. The department 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 by
the department in accordance with this division.
79219. The bonds 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 described in this division includes the
approval of the issuance of any other bonds issued to refund any
bonds originally issued under this division or any previously issued
refunding bonds.
79220. Notwithstanding any provision of this division or 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, subject to designated conditions, the
Treasurer may maintain separate accounts for the investment of bond
proceeds and for the investment 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 to 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.
79221. The Legislature hereby finds and declares that, inasmuch
as the proceeds from the sale of bonds authorized by this division
are not "proceeds of taxes" as that term is used in Article XIIIB of
the California Constitution, the disbursement of these proceeds is
not subject to the limitations imposed by this article.
SEC. 2. Section 78626 of the Water Code is repealed.
SEC. 3. Section 78626 is added to the Water Code, to read:
78626. Unallocated funds remaining in the subaccount on March 8,
2000, shall be transferred to, and all money repaid to the state
pursuant to any loan contract executed under this article shall be
deposited in, the Water Recycling Subaccount in the Clean Water and
Water Recycling Account in the Safe Drinking Water, Clean Water,
Watershed Protection, and Flood Protection Bond Fund for the purpose
of entering into additional loans under Article 5 (commencing with
Section 79135) of Chapter 7 of Division 26.
SEC. 4. Section 78675 of the Water Code is repealed.
SEC. 5. Section 78675 is added to the Water Code, to read:
78675. Unallocated funds remaining in the subaccount on March 8,
2000, shall be transferred to, and all money repaid to the state
pursuant to any loan contract executed under this article shall be
deposited in, the Water Conservation Subaccount in the Clean Water
and Water Recycling Account in the Safe Drinking Water, Clean Water,
Watershed Protection, and Flood Protection Bond Fund for the purposes
of entering into additional loans under Article 3 (commencing with
Section 79157) and Article 4 (commencing with Section 79161) of
Chapter 8 of Division 26.
SEC. 6. Sections 1, 2, 3, 4, and 5 of this act shall become
effective upon the approval by the voters of the Safe Drinking Water,
Clean Water, Watershed Protection, and Flood Protection Act, as set
forth in Section 1 of this act, including changes
to the Safe, Clean, Reliable Water Supply
Act, as set forth in Sections 2 to 5, inclusive.
SEC. 7. Sections 1, 2, 3, 4, and 5 of this act shall be submitted
to the voters at the March 7, 2000, statewide direct primary election
in accordance with provisions of the Government Code and the
Elections Code governing the submission of statewide measures to the
voters.
SEC. 8. (a) Notwithstanding any other provision of law, all
ballots at the election shall have printed thereon and in a square
thereof, the words: "Safe Drinking Water, Clean Water, Watershed
Protection, and Flood Protection Bond Act" and in the same square
under those words, the following in 8-point type: "This act provides
for a bond issue of one billion eight hundred million
dollars ($1,800,000,000) ninety million dollars
($1,890,000,000) to provide funds for a safe drinking water,
water quality, flood protection, and water reliability program."
Opposite the square, there shall be left spaces in which the voters
may place a cross in the manner required by law to indicate whether
they vote for or against the act.
(b) Notwithstanding Sections 13247 and 13281 of the Elections
Code, the language in subdivision (a) shall be the only language
included in the ballot label for the condensed statement of the
ballot title, and the Attorney General shall not supplement, subtract
from, or revise that language, except that the Attorney General may
include the financial impact summary prepared pursuant to Section
9087 of the Elections Code and Section 88003 of the Government Code.
The ballot label is the condensed statement of the ballot title and
the financial impact summary.
(c) Where voting in the election is done by means of voting
machines used pursuant to law in a manner that carries out the intent
of this section, the use of the voting machines and the expression
of the voters' choice by means thereof are in compliance with this
section.
SEC. 9. 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 remedy critical drinking water, water quality, flood
protection, and water supply problems, thereby protecting public
health and safety, it is necessary that this act take effect
immediately.
SEC. 9. Notwithstanding any other provision of this act, Sections
1 to 8, inclusive, of this act shall not be operative and are for
display purposes only and therefore, no fund shall be created and no
bonds shall be issued or sold pursuant to this act, no appropriation
shall be made in this act for any purpose, no portion of this act
shall be submitted to the voters of the State of California, and
nothing in this act shall create any debt or liability of the state.