BILL NUMBER: AB 1239 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Leonard
FEBRUARY 26, 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, flood protection, water
quality program, and water supply 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.
LEGISLATIVE COUNSEL'S DIGEST
AB 1239, as introduced, Leonard. Safe Drinking Water, Clean
Water, Flood Prevention, and Water Supply 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 the Safe Drinking Water, Clean Water, Flood
Prevention, and Water Supply Act which, if adopted, would authorize,
for purposes of financing a safe drinking water, flood protection,
and water quality, and water supply program, the issuance, pursuant
to the State General Obligation Bond Law, of bonds in the amount of
$2,050,000,000. The bill would also provide 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 the bond
act to the voters at the March 7, 2000, statewide direct primary
election.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Division 26 (commencing with Section 79000) is added to
the Water Code, to read:
DIVISION 26. SAFE DRINKING WATER, CLEAN WATER, FLOOD
PROTECTION, AND WATER SUPPLY ACT
CHAPTER 1. SHORT TITLE AND FINDINGS AND DECLARATIONS
79000. This division shall be known and may be cited as the Safe
Drinking Water, Clean Water, Flood Protection, and Water Supply Act.
79001. The Legislature finds and declares that it is the purpose
of this measure to provide critically needed funds to meet safe
drinking water and clean water standards, to protect rivers and
streams from pollution, for flood protection projects needed to
protect life and property from future disastrous floods, for water
supply and reliability improvements, and to provide increased water
supply to ensure that our state can meet future water needs.
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 a consortium of five state agencies,
including the Resources Agency, the department, the Department of
Fish and Game, the California Environmental Protection Agency, and
the board, and five federal agencies, including the United States
Department of the Interior, the United States Bureau of Reclamation,
the United States Fish and Wildlife Service, the Environmental
Protection Agency, and the National Marine Fisheries Service, with
management and regulatory responsibilities in the bay-delta.
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,
and Flood Protection Finance Committee created by Section 79282.
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, and
Flood Protection Bond Fund created by Section 79015.
CHAPTER 2.5. GENERAL PROVISIONS
79014. (a) Nothing in this division prohibits a project from
receiving funds from more than one account or subaccount created by
this division.
(b) State grant or loan funds from one account or subaccount may
not be used by a local agency as local matching funds.
CHAPTER 3. SAFE DRINKING WATER, CLEAN WATER, AND FLOOD
PROTECTION BOND FUND
79015. The proceeds of bonds issued and sold pursuant to this
division shall be deposited in the Safe Drinking Water, Clean Water,
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.A. 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 thirty-three million dollars ($33,000,000) 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 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 if a supplier has previously
received a grant for public water system expenditures for the same
project under Section 300j-12(i) of the federal act (42 U.S.C.A. Sec.
1452 (i)). 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.
79026. Not more than 5 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. LEVEE AND WATERWORKS PROGRAM
Article 1. Levee and Waterworks Account
79030. For the purposes of this chapter, "account" means the
Levee and Waterworks Account created pursuant to Section 79031.
79031. The Levee and Waterworks Account is hereby created in the
fund. The sum of one hundred million dollars ($100,000,000) is hereby
transferred from the fund to the account.
Article 2. Levee and Waterworks Improvement Program
79035. (a) There is hereby created in the account the Levee and
Waterworks Improvement Subaccount.
(b) For the purposes of this article, "subaccount" means the Levee
and Waterworks Improvement Subaccount created by subdivision (a).
79036. 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.
79037. (a) Except as provided in Section 79039.5, the money in
the subaccount, upon appropriation by the Legislature to the
department, may be used by the department to carry out one or more of
the following flood protection projects, and may be used for grants
awarded by the department to local agencies for any of those
projects:
(1) The construction or improvement of weirs and bypasses.
(2) The construction of levees or upgrading existing publicly
maintained levees to provide greater flood protection.
(3) The modification of existing dams and waterworks, including
spillways, to provide increased efficiency in preventing floods.
(4) The installation of tailwater suppression systems, detention
basins, relief wells, test wells, flood warning systems, and
telemetry devices, and the acquisition and development of well fields
from willing sellers.
(5) The relocation or flood proofing of structures within
floodplains pursuant to the National Flood Insurance Program.
(6) Implementation of watershed multiobjective pilot projects.
(7) Other structural or nonstructural improvements to increase
flood protection.
(8) The construction of, or improvements to, a state or interstate
highway, a county road, or a levee road, that is designated a flood
emergency evacuation route, or that provides access to a levee for
emergency vehicles, flood fights, or levee repair and maintenance, or
a project that protects that road or highway.
(b) All of the following criteria shall be considered for
prioritizing projects:
(1) Increased protection or damage reduction for metropolitan
areas.
(2) The protection or enhancement of the water supply yield of an
existing project.
(3) The provision of a local match by the local agency sponsor,
which may include in-kind services.
(4) The local community is a small community with a financial
hardship.
(5) The local community experiences repetitive flood loss.
(6) The provision of multiple benefits.
(7) The availability of other funding sources, including in-kind
matches.
79038. No expenditure of funds may be made under this article for
projects within the delta unless the Department of Fish and Game
makes a written determination as part of its review and approval of a
project or plan in accordance with 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.
79039. No expenditure of funds for levee projects outside the
delta may be made pursuant to this article unless the Department of
Fish and Game determines that the expenditure will not result in a
net long-term loss of fish or wildlife habitat. 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 the cost of mitigation that the department determines to be
necessary to ensure that the requirements of this section are carried
out.
79039.5. (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) 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.
79040. 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.
79040.5. The department may adopt regulations to carry out this
article.
Article 3. Delta Levee Rehabilitation Program
79041. (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).
79042. The sum of fifty million dollars ($50,000,000) is hereby
transferred from the account to the subaccount for the purpose of
implementing this article pursuant to Section 12986.
79043. Notwithstanding Section 13340 of the Government Code, the
money in the subaccount is hereby continuously appropriated, without
regard to fiscal years, to the department for projects and
administrative costs authorized under subdivisions (a) and (b), as
follows:
(a) Twenty-five million dollars ($25,000,000) 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) Twenty-five million dollars ($25,000,000) 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.
79044. The expenditure of funds under this article is subject to
Chapter 1.5 (commencing with Section 12306) of Part 4.8 of Division
6.
79045. 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.
79046. 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.
79047. Following the date on which a program for the bay-delta is
adopted by the CALFED Bay-Delta Program, the remaining funds in the
subaccount shall be used for levee rehabilitation improvement
projects that, to the greatest extent possible, are consistent with
the CALFED Bay-Delta Program.
CHAPTER 6. RIVER CORRIDOR PROGRAM
Article 1. River Corridor Account
79070. For the purposes of this chapter, "account" means the
River Corridor Account created by Section 79071.
79071. The River Corridor Account is hereby created in the fund.
The sum of twenty million dollars ($20,000,000) is hereby
transferred from the fund to the account.
Article 2. Watershed Program
79095. The purpose of this article is to provide funds statewide
to assist in implementing comprehensive watershed plans to reduce
flooding, control erosion, improve water quality, and to protect or
restore the beneficial uses of waters of the state in designated
watersheds.
79096. Unless the context otherwise requires, the following
definitions govern the construction of this article:
(a) "Local watershed organization" means a broad-based group of
persons that shall, to the extent feasible, include private land
owners and land managers in the watershed, local, state, and federal
public agencies, environmental groups, dischargers, water suppliers,
and other interested parties.
(b) "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 assistance
under Sections 1329 and 1330 of Title 33 of the United States Code.
79097. There is hereby created in the account the Watershed
Subaccount.
79098. For the purposes of this article, "subaccount" means the
Watershed Subaccount created by subdivision (a).
79099. The sum of twenty million dollars ($20,000,000) is hereby
transferred from the account to the subaccount for the purposes of
implementing this article.
79100. (a) The money in the subaccount, upon appropriation by the
Legislature to the board, may be used for grants awarded by the
board to local public agencies or local watershed organizations in
accordance with this article.
(b) The board shall ensure that activities funded by these grants
will be coordinated with activities conducted by state and federal
agencies, and with other appropriate watershed efforts.
79101. (a) The board may award grants to eligible entities for
the purposes described in this section. At least 80 percent of the
total amount in the subaccount shall be used for projects described
in subdivision (b).
(b) Grants may be awarded to local public agencies that are
participants in local watershed organizations for implementation
activities in an amount not to exceed ____ dollars (____) per
project. Eligible implementation activities shall be consistent
with, or proposed to be included in, local watershed management plans
and, to the extent feasible, consistent with local watershed
management plans covering the entire watershed. Eligible activities
under this article may include projects that do any of the following:
(1) Reduce chronic flooding problems.
(2) Control water velocity and volume.
(3) Create watering ponds and groundwater recharge spreading
grounds.
(4) Acquire from willing sellers or develop well fields and
groundwater recharge basins.
(5) Assess the environmental health of the watershed.
(6) Purchase geographic information systems to display and manage
the environmental data related to the watershed.
(7) Establish pollutant trading where improvements in water
quality will result.
(8) Prevent watershed soil erosion and the sedimentation of
surface waters.
(9) Establish beneficial groundwater recharge capabilities.
(10) Prevent impacts from point source or nonpoint sources of
pollution.
(c) Grants may be awarded to local watershed organizations for the
development of watershed management plans in an amount not to exceed
two hundred fifty thousand dollars ($250,000) per watershed
management plan.
(d) Grants may be awarded to resource conservation districts for
technical assistance to develop locally lead watershed planning and
implementation projects, such as coordinated resource management
planning, in an amount not to exceed fifty thousand dollars ($50,000)
per district.
(e) Up to 25 percent of the grant money may be awarded in advance
of actual expenditures.
(f) Grant recipients shall submit to the board a report upon
completion of the project or activity funded under this article. The
report shall summarize the completed activities and indicate whether
the purposes of the project have been met. The board shall make the
report available to interested federal, state, and local agencies.
(g) Grants awarded pursuant to this article may be used to meet
the grant program requirements of Sections 205(j) and 319(h) of the
Clean Water Act (33 U.S.C.A. Secs. 1285(j) and 1329(h)) for
nonfederal matching funds.
(h) The board may adopt regulations to implement this article.
CHAPTER 7. FLOOD CONTROL SUBVENTIONS PROGRAM
79125. For the purposes of this chapter, "account" means the
Flood Control Subventions Account created pursuant to Section 79126.
79126. The Flood Control Subventions Account is hereby created in
the fund. The sum of one hundred thirty-two million dollars
($132,000,000) is hereby transferred from the fund to the account.
79127. Notwithstanding Section 13340 of the Government Code, the
money in the account is hereby continuously appropriated, without
regard to fiscal years, to the department to pay for the state's
share of the nonfederal costs of flood control and flood prevention
adopted and authorized 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 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.
CHAPTER 8. CLEAN WATER, WATER CONSERVATION, AND WATER
RECYCLING PROGRAM
Article 1. Clean Water, Water Conservation, and Water
Recycling Account
79130. For the purposes of this chapter, "account" means the
Clean Water, Water Conservation, and Water Recycling Account created
by Section 79131.
79131. The Clean Water, Water Conservation, and Water Recycling
Account is hereby created in the fund. The sum of two hundred
fifty-five million dollars ($255,000,000) is hereby transferred from
the fund to the account.
Article 2. Nonpoint Source Control Program
79135. 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.
79136. 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.
79137. (a) There is hereby created in the account the Nonpoint
Source Pollution Control Subaccount.
(b) For the purposes of this article, "subaccount" means the
Nonpoint Source Pollution Control Subaccount created by subdivision
(a).
79139. The sum of sixty million dollars ($60,000,000) is hereby
transferred from the account to the subaccount for the purposes of
implementing this article.
79140. (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. 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 (c) of Section 79101.
(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 California's Nonpoint Pollution Control Program
Submittal Document, dated September 28, 1995.
(4) A project that is developed in accordance with Section 6217(g)
of the federal Coastal Zone Act Reauthorization Amendments of 1990.
(b) The projects funded from the subaccount shall demonstrate a
capability of sustaining water quality benefits after grant funding
ceases. 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, and wildfire management. 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 Expenditure Capital Expenditure
Project 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) Up to 25 percent of the grant money may be awarded in advance
of actual expenditure.
(f) Proponents of projects 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 controls are
implemented.
(4) Determines the effectiveness of the proposed controls in
preventing or reducing pollution.
(g) Notwithstanding subdivision (b), the board may award up to 10
percent of the total amount deposited in the subaccount for
demonstration projects that are intended to prevent, reduce, or treat
nonpoint source pollution.
(h) Grant recipients 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
board shall make the report available to watershed groups, federal,
state, and local agencies.
79141. The board may adopt regulations to implement this article.
79142. Not more than 5 percent of the total amount deposited in
the subaccount to pay the costs incurred in connection with the
administration of this article.
79143. Notwithstanding Section 13340 of the Government Code or
any other provision of this article, the sum of four million dollars
($4,000,000) is hereby continuously appropriated from the subaccount,
without regard to fiscal years, to the Department of Pesticide
Regulation, and shall be allocated as follows:
(a) The sum of one million dollars ($1,000,000) to provide funding
for local, regional, and statewide coordination, outreach, and
communication to protect water quality from potential adverse effects
of pesticides.
(b) The sum of three million dollars ($3,000,000) to provide funding
for grants for research, source identification, and mitigation
measures to protect water quality from potential adverse effects of
pesticides.
79144. Notwithstanding Section 13340 of the Government Code or
any other provision of this article, the sum of ____ million dollars
($____) is hereby continuously appropriated from the subaccount,
without regard to fiscal years, to the board to be used by the board,
in conjunction with the Department of Food and Agriculture, to
promulgate regulations to develop a grant program not to exceed two
million dollars ($2,000,000), per grant to local public agencies for
implementation of a revolving fund used to provide zero interest
loans to finance the construction of projects designed to handle and
control animal nutrients from confined animal operations.
Article 3. Clean Water Program
79145. 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 or to reclaim water.
(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 assistance
under Sections 1329 and 1330 of Title 33 of the United States Code.
(d) "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 segment of the population
is 10,000 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.
79146. There is hereby created in the account the State Revolving
Fund Loan Subaccount.
79148. (a) Sixty-five million dollars ($65,000,000) is hereby
transferred from the account to the State Revolving Fund Loan
Subaccount and, notwithstanding Section 13340 of the Government Code,
is hereby continuously appropriated, without regard to fiscal years,
to the board 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 79150.
(b) 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.
79149. The board may adopt regulations to carry out this article.
79150. 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 under a comprehensive
cooperative plan. For the purposes of this section, "research" may
include the design, acquisition, installation, or construction of
monitoring and testing equipment and related facilities.
79151. Not more than 5 percent of the total amount deposited in
the State Revolving Fund Loan Subaccount may be used for both of the
following purposes:
(a) To pay the costs incurred in connection with the
administration of this article.
(b) For the purposes of Section 79150.
79153. (a) For purposes of implementing subdivision (a) of
Section 79148, the board may make loans to municipalities, pursuant
to contract, to aid in the construction or implementation of eligible
projects.
(b) The board shall reserve at least 25 percent of the amount in
the State Revolving Fund Loan Subaccount for loans to construct water
recycling projects.
79154. Any contract entered into pursuant to this article for a
loan 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
and regulations.
(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 it's share of the costs of the project.
79155. All contracts entered into pursuant to this article for
loans 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.
79156. (a) Any loan made pursuant to Section 79153 shall be fully
amortized not later than 20 years after project completion.
(b) 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. 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. 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. Any loan from the fund 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.A. Sec. 1383(e)).
(c) 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.A. Sec. 1329), and the applicant provides matching funds, the
interest rate on the loan shall be 0 percent. A loan recipient 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.
79157. 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 implementing this article, and shall not be transferred
to the General Fund.
79159. Notwithstanding any other provision of law, any financial
assistance provided pursuant to Section 79154.5 shall include
financial assistance for the construction of necessary house
laterals.
Article 4. Water Recycling Program
79161. Unless the context otherwise requires, the following
definitions govern the construction of this article:
(a) "Eligible 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.
(b) "Local public agency" means any city, county, city and county,
district, or other political subdivision of the state.
(c) "Nonprofit organization" means any California corporation
organized under Section 501(c)(3) of the Internal Revenue Code for
purposes related to expanding the use of recycled water.
(d) "Subaccount" means the Water Recycling Subaccount created by
Section 79162.
(e) "University" means a campus of the University of California or
California State University.
79162. There is hereby created in the account the Water Recycling
Subaccount.
79163. (a) The sum of fifty million dollars ($50,000,000) is
hereby transferred from the account to the subaccount for the
purposes of this article.
(b) 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 November 4, 1998, 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 purpose
of entering into additional loans under this article.
79164. Notwithstanding Section 13340 of the Government Code, the
money in the subaccount is hereby continuously appropriated, without
regard to fiscal years, to the board for loans to local public
agencies to aid in the design and construction of eligible recycling
projects, for grants in accordance with Sections 79172, 79173, and
79175, and for the purposes described in Section 79174.
79165. The board may adopt regulations to carry out this article.
79166. The board may enter into contracts to make loans and
grants to local public agencies for the purposes of this article.
Factors 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 cost-effective or necessary to protect
water quality.
79167. Any contract for a grant or loan entered into pursuant to
Section 79166 may include those provisions determined by the board to
be necessary for purposes of this article and shall include both of
the following provisions:
(a) An estimate of the reasonable cost of the eligible recycling
project.
(b) An agreement by the public agency to proceed expeditiously
with, and complete, the eligible recycling project, commence
operation of the project in accordance with applicable provisions of
law, and provide for the payment of the public agency's share of the
cost of the project, including the principal of, and interest on, any
loan.
79168. (a) A contract for a loan may not provide for a moratorium
on, or the deferment of, the payment of the principal of, or
interest on, the loan.
(b) Any loan made pursuant to Section 79166 shall be for a period
not to exceed 20 years.
(c) The board may enter into a contract for a loan of up to 100
percent of the total eligible cost of design and construction of an
eligible recycling project.
79169. (a) The board shall establish the interest rate for a loan
made pursuant to this article 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
one-tenth of 1 percent, the interest rate shall be set at the next
higher multiple of one-tenth of 1 percent.
(c) 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.
79170. All principal and interest payments received pursuant to
loan contracts entered into pursuant to this article shall be
deposited in the subaccount for the purposes of entering into
additional loans under this article, and shall not be transferred to
the General Fund.
79171. All interest earned by assets in the subaccount shall be
deposited in the subaccount.
79172. (a) At least 50 percent of the money in the subaccount
shall be used by the board to make grants to local public agencies to
aid in the design and construction of eligible recycling projects.
(b) No single grant under this section shall exceed five million
dollars ($5,000,000) or 25 percent of the cost of the project,
whichever is less.
79173. 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.
79174. The board may, by contract or otherwise, undertake plans,
surveys, research, development, and studies necessary, convenient, or
desirable to carry out the purposes of this article, and may prepare
recommendations with regard thereto, including the preparation of
comprehensive statewide or areawide studies and reports on water
recycling and the collection, treatment, disposal, and distribution
of wastewater under a comprehensive cooperative plan.
79175. (a) The board may, for the purposes of carrying out this
article, award grants and enter into contracts to conduct or assist
in the financing of water recycling studies, investigations, and
research and development related to any of the following:
(1) Matters related to public health, including, but not limited
to, health effects monitoring, operational protocols, suitability of
treatment technology for removal of pathogens and pollutants, and
risk assessment.
(2) New technologies and techniques, including, but not limited
to, the development, testing, and certification of new treatment
technologies, and water quality monitoring and management techniques.
(3) The use of recycled water.
(b) For the purposes of this section, grants may be made to local
public agencies, universities, and nonprofit organizations to pay up
to 100 percent of the costs of the water recycling studies,
investigations, or research and development. Added consideration
shall be given to grant applications with matching funds from sources
other than the state.
79176. Not more than one million dollars ($1,000,000) of the
money in the subaccount shall be used by the board to make grants in
accordance with Section 79175.
79177. Not more than 5 percent of the total amount deposited in
the subaccount may be used to pay for both of the following purposes:
(a) To pay the costs incurred in connection with the
administration of this article.
(b) For the purposes of Section 79174.
79178. Notwithstanding any other provision of this article, none
of the money provided by this article may 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 to a treatment facility for a water
supply system that serves domestic uses.
Article 5. Water Conservation Program
79180. The Legislature finds and declares that:
(a) Voluntary, cost-effective capital outlay water conservation
programs can help meet 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.
79181. Unless the context otherwise requires, the following
definitions govern the construction of this article:
(a) "Economically disadvantaged area" means any area of the state
for which either of the following statements applies:
(1) A median household income that is less than forty thousand
dollars ($40,000) based on the 1990 federal census.
(2) An annual average unemployment rate that is greater than 9
percent based on the 1990 federal census.
(b) "Eligible grant agencies" means those local public agencies
that own, operate, or lease water systems that provide direct retail
water service to customers in economically disadvantaged areas and
severely economically disadvantaged areas.
(c) "Eligible loan agencies" means those local public and private
entities that own, operate, or lease water systems that provide
direct retail water service to customers in economically
disadvantaged areas and severely economically disadvantaged areas.
(d) "Eligible water conservation project" means a project
consisting of voluntary cost-effective capital outlay water
conservation programs.
(e) "Eligible water infrastructure project" means a project for
the repair, restoration, or rehabilitation of existing water system
pipelines, pump stations, valves, reservoirs, and all other
appurtenant water delivery facilities that, as demonstrated through
engineering feasibility and needs assessment studies, may be either
one or both of the following:
(1) In a condition that results in significant system water losses
contrary to statewide water conservation objectives.
(2) Subject to impending failure that could jeopardize the health,
safety, welfare, and economy of communities relying on those
systems.
(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.
(g) "Severely economically disadvantaged area" means any area for
which either of the following statements applies:
(1) A median household income that is less than thirty thousand
dollars ($30,000) based on the 1990 federal census.
(2) An annual average unemployment rate that is greater than 12
percent based on the 1990 federal census.
(h) "Subaccount" means the Water Conservation Subaccount created
by Section 79182.
(i) (1) "Voluntary, cost-effective capital outlay water
conservation programs" mean those feasible capital outlay measures
undertaken to improve the efficiency of water use through projects,
the benefits of which exceed their 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 changes in on-farm irrigation facilities which improve
irrigation efficiency such as sprinkler or subsurface drip systems.
(F) Periodic review of potentially efficient agricultural water
management practices for feasibility and cooperative studies of the
effectiveness and efficiency of potential agricultural water
management practices.
(G) 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.
(H) Capital outlay features of urban water conservation programs
identified in the "Memorandum of Understanding Regarding Urban Water
Conservation in California," as amended on March 9, 1994.
79182. There is hereby created in the account the Water
Conservation Subaccount.
79183. (a) The sum of eighty million dollars ($80,000,000) is
hereby transferred from the account to the subaccount for the
purposes of this article.
(b) Unallocated funds remaining in the Water Conservation and
Groundwater Recharge Subaccount in the Water Supply Reliability
Account in the Safe, Clean, Reliable Water Supply Fund on November 4,
1998, shall be transferred to, and all money repaid to the state
pursuant to any loan contract executed under Article 3 (commencing
with Section 78670) of Chapter 6 of Division 24 shall be deposited
in, the subaccount for the purposes of entering into additional loans
under this article.
79184. Notwithstanding Section 13340 of the Government Code, the
sum of ____ dollars ($____) is hereby continuously appropriated from
the subaccount, without regard to fiscal years, to the department for
loans to local agencies to aid in the acquisition and construction
of voluntary, cost-effective water conservation projects, and for
grants in accordance with Section 79190.
79185. For the purposes of approving a loan under this article,
the department shall determine if there is a net savings of water as
a result of each proposed project and if the project is cost
effective.
79188. Any loan contract entered into pursuant to this article
may include provisions determined to be necessary by the department.
79189. (a) Any loan contract entered into pursuant to this
article shall be supported by, or shall include, all of the
following:
(1) A finding by the department that the agency has the ability to
repay the requested loan, that the project is economically
justified, and that the project is feasible from an engineering and
hydrologic viewpoint.
(2) An estimate of the reasonable cost and benefit of the project.
(3) 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.
(4) A provision that there shall be no moratorium on, or deferment
of, payments of principal or interest.
(5) (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
one-tenth of 1 percent, the interest rate shall be set at the next
higher multiple of one-tenth of 1 percent.
(C) 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.
(6) A provision that the project shall not receive any more than
five million dollars ($5,000,000) in loan proceeds from the
department.
(b) The department shall give preference to agencies that propose
the most cost-effective projects as determined by the department.
79190. 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 79184. No
single feasibility study shall be eligible to receive more than
seventy-five thousand dollars ($75,000), and not more than 5 percent
of the total amount deposited in the subaccount may be expended for
the purposes of financing feasibility studies. A grant for a
feasibility study shall not affect the maximum amount of any loan
which may be made under this article.
79191. All principal and interest payments received pursuant to
loan contracts entered into pursuant to this article shall be
deposited in the subaccount, and shall be available for additional
loans under this article, and shall not be transferred to the General
Fund.
79192. The department may adopt regulations to carry out this
article.
79193. (a) Notwithstanding Section 13340 of the Government Code,
the sum of ____ dollars ($___) is hereby continuously appropriated
from the subaccount, without regard to fiscal years, to the
department for loans to eligible loan agencies and grants to eligible
grant agencies for the purposes set forth in this section. The
factors to be considered by the department in determining whether to
enter into a contract shall include, but are not limited to, the need
to implement infrastructure repair projects that address one or more
of the following goals:
(1) To protect service reliability.
(2) To provide measurable conservation through the reduction of
system water losses.
(3) To ensure water quality.
(b) The department shall administer contracts to ensure that funds
are used as prescribed in those contracts.
(c) Any loan awarded under this section shall be available for
water systems in economically disadvantaged areas with service
connections that are not less than 200 nor greater than 16,000 in
number. The department shall give highest priority in awarding loans
to those eligible agencies with the highest retail water rates and
service charges as of January 1, 1998.
(d) Of the funds made available pursuant to subdivision (a), ____
dollars ($____) shall be used by the department to make loans to
eligible loan agencies for the design and construction of water
infrastructure projects in economically disadvantaged areas in
accordance with this section.
(e) (1) Of the funds made available pursuant to subdivision (a),
____ dollars ($____) shall be used by the department to make grants
to eligible grant agencies for the design and construction of water
infrastructure projects in economically disadvantaged areas in
accordance with this section.
(2) No single grant under this subdivision shall exceed two
million dollars ($2,000,000) or 50 percent of the cost of the
project, whichever is less.
(3) Grants shall be available for water systems in economically
disadvantaged areas with service connections that are not less than
200 nor greater than 16,000 in number. The department shall give
highest priority in awarding grants to those eligible agencies with
the highest retail water rates and service charges as of January 1,
1998.
(f) (1) Of the funds made available pursuant to subdivision (a),
____ dollars ($____) shall be used by the department to make grants
to eligible grant agencies for the design and construction of water
infrastructure projects in severely economically disadvantaged areas
in accordance with this section.
(2) No single grant under this subdivision shall exceed one
million dollars ($1,000,000).
(3) Grants shall be available for water systems in severely
economically disadvantaged areas with service connections that are
not less than 200 nor greater than 16,000 in number. The department
shall give highest priority in awarding grants to those eligible
agencies with the highest retail water rates and service charges as
of January 1, 1998.
(4) Severely economically disadvantaged areas shall not be
required to provide matching funds to receive grants.
(g) The department may make grants to an eligible grant agency to
pay for the costs incurred in connection with engineering
feasibility studies and needs assessment. The amount of a grant
under this subdivision may not exceed fifty thousand dollars
($50,000).
(h) The department may, by contract, undertake plans, surveys,
research, development, and studies that the department determines to
be necessary, convenient, or desirable to carry out the purposes of
this section, and may prepare recommendations with regard thereto,
including the preparation of comprehensive statewide or areawide
studies and reports on water infrastructure restoration under a
comprehensive cooperative plan.
79194. Not more than 5 percent of the total amount deposited in
the subaccount may be used for both of the following purposes:
(a) To pay the costs incurred in connection with the
administration of this article.
(b) For the purposes of subdivision (h) of Section 79193.
CHAPTER 9. WATER SUPPLY, RELIABILITY, AND INFRASTRUCTURE
PROGRAM
Article 1. Legislative Findings
79200. The Legislature finds and declares all of the following:
(a) The population of California is projected to grow to 50
million by the year 2020, underscoring the need for continued
investment in infrastructure to ensure the provision of quality
public services and a healthy environment.
(b) California has the largest agricultural economy in the nation,
which is dependent on a reliable and high quality water supply.
(c) Reliable, high quality water is essential for the long-term
health of the people, environment, and economy and for the protection
of watersheds and coastal areas of California.
(d) Actions taken to protect and recover wildlife species under
state and federal endangered species laws have resulted in the
diversion of substantial water supplies for the protection of listed
species.
(e) The Central Valley Project Improvement Act requires the
dedication of 800,000 acre-feet of water annually for environmental
purposes, with additional water to be supplied to the Trinity River,
wildlife refuges, and other environmental projects.
(f) The December 15, 1994, "Bay-Delta Accord" endorsed the
dedication of 1,100,000 acre-feet of water annually for environmental
purposes, and there is a continuing need for additional water
supplies for environmental purposes as part of the long-term
solutions for restoring the health of the bay-delta being determined
through the CALFED process.
(g) As a result of these events, California's water supply and
existing water supply systems are under enormous stress, with little
flexibility to meet economic or environmental needs.
(h) The development of additional water storage capacity is
essential to provide new flexibility to California's water supply
system, to enhance flood protection and to ensure the continued
health of the state's economy and environment.
(i) Additional storage is also needed to enhance the quality of
water supply and public drinking water, wildlife estuaries, and our
coastal areas.
(j) Not later than November 1998, the participants in the CALFED
process will identify the most environmentally sound approach to meet
the environmental and economic needs for water in the future, and
significant additional water storage capability is included in all of
the alternatives being considered.
(k) To date, a $1.5 billion revenue stream has been provided from
federal, state, and water user funds for near-term ecosystem
improvements, and there is an equally pressing need for new
investment in water quality and water supply, and flood protection to
prepare the state for the 21st century.
Article 2. Water Supply, Reliability, and Infrastructure
Account
79205. For the purposes of this part, "account" means the Water
Supply, Reliability, and Infrastructure Account created by Section
79206.
79206. The Water Supply, Reliability, and Infrastructure Account
is hereby created in the fund. The sum of one billion five hundred
ten million dollars ($1,510,000,000) is hereby transferred from the
fund to the account.
Article 3. Local Conjunctive Use Program
79210. The Legislature finds and declares that the conjunctive
management of surface water and groundwater is an effective way to
optimize the water supply needs of local public agencies throughout
the state.
79211. Unless the context otherwise requires, the following
definitions govern the construction of this article:
(a) "Conjunctive use" means the operation of a groundwater basin,
or a portion thereof, with a surface water supply and conveyance
system to optimize water supply pursuant to which water is stored in
the groundwater basin for later use by intentionally recharging a
basin. Common forms of conjunctive use are either of the following:
(1) "Direct recharge" means a conjunctive use program
incorporating artificial recharge methods that require a source of
surface water pursuant to which the surface water is placed directly
into the ground by various means, including spreading ponds and
injection wells, and the water stored in the aquifer is, thus,
available for use in dry years when less surface water is available.
(2) "In-lieu recharge" means accomplishing increased storage of
groundwater by providing surface water to a user who relies on
groundwater as a primary supply, to accomplish groundwater storage
through the direct use of that surface water in lieu of pumping
groundwater.
(b) "Conjunctive use facilities" include land and appurtenant
facilities for any phase of a conjunctive use operation. Appurtenant
facilities may include surface and subsurface storage, treatment,
conveyance, recharge, monitoring, measurements, subsidence detection,
flow regulation, and extraction facilities. Any part or all of the
project facilities, including the land under the facilities, may
consist of the separable features, or an appropriate share of
multipurpose features of a larger system, or both.
(c) "Conjunctive use project" means either of the following:
(1) The construction of conjunctive use facilities.
(2) Local pilot projects.
(d) "Local public agency" means any city, county, city and county,
district, joint powers authority, or other political subdivision of
the state.
79212. (a) There is hereby created in the account the Local
Conjunctive Use Subaccount.
(b) For the purposes of this article, "subaccount" means the Local
Conjunctive Use Subaccount created by subdivision (a).
79213. 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.
79214. The money in the subaccount, upon appropriation by the
Legislature to the department, may be used by the department for
loans and grants to local public agencies for the purpose of
undertaking feasibility studies and conjunctive use studies and for
the construction of conjunctive use facilities, local pilot projects,
and other facilities that are integral to the implementation of a
conjunctive use plan or project.
79215. Any loan contract entered into pursuant to this article
may include provisions determined to be necessary by the department.
79216. Any loan contract concerning an eligible project for
conjunctive use shall be supported by, or shall include, all of the
following:
(a) A determination by the department that the agency has the
ability to repay the requested loan, that the project is economically
justified, and that the project is feasible from an engineering and
hydrogeologic viewpoint.
(b) An estimate of the reasonable cost and benefit of the project,
including a feasibility report which shall set forth the economic
justification and the engineering, hydrogeologic, and financial
feasibility of the project, and shall include explanations of the
proposed facilities and their relation to other water-related
facilities in the basin or region.
(c) An agreement by the agency to proceed expeditiously with, and
complete, the project in conformance with approved plans and
specifications and the feasibility report and to operate and maintain
the project properly upon completion throughout the repayment
period.
(d) A provision that there shall be no moratorium on, or deferment
of, the payment of principal or interest.
(e) 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. 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. 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.
79217.Prior to approving a loan or grant, the department shall
determine that the agency has established an ongoing groundwater
monitoring program to protect surrounding property owners from
foreseeable impacts related to the project. Prior to approving a
loan or grant for construction, the department shall require the
agency to make a determination, after public review, that the project
will not adversely affect the property rights of any property owner.
79218. The department may make grants to agencies, under terms
and conditions determined by the department, for the purpose of
financing feasibility or conjunctive use studies, pilot projects, the
construction of conjunctive use facilities, or the acquisition of
land for conjunctive use projects.
79219. A grant for a feasibility or conjunctive use study shall
not exceed five hundred thousand dollars ($500,000).
79220. A grant for a feasibility or conjunctive use study shall
not affect the maximum amount received pursuant to Section 79222 to
finance the construction of a conjunctive use facility under this
article.
79221. Not more than 50 percent of the total amount of money in
the subaccount shall be expended for grants.
79222. No project may receive more than ____ dollars ($____) from
the subaccount.
79223. All principal and interest payments received pursuant to
loan contracts entered into pursuant to this article, and all
interest earned on, or accruing to, any money in the subaccount,
shall be deposited in the subaccount and shall be available for the
purposes of this article, and shall not be transferred to the General
Fund.
79224. The department may adopt regulations to carry out this
article.
79225. All projects shall be sponsored by a local public agency.
However, at the request of a local public agency sponsor, the
department may provide technical assistance, coordination, or any
other assistance in implementing a project or study.
79226. To the greatest extent feasible, funds allocated pursuant
to this article shall be allocated equitably among the regions of the
state that are capable of, and interested in, implementing a
conjunctive use program.
79227. The department shall consider the following types of
projects in prioritizing projects pursuant to this article: a
project that is located in an area that has implemented, or will
assist in implementing, a groundwater basin management plan, a
project that is located in an area that is subject to a groundwater
management program, a project that is located in an area with an
overdrafted groundwater basin, a project of critical need, a project
for which feasibility studies demonstrate the greatest economic
justification and the greatest engineering and hydrogeologic
feasibility, as determined by the department, or a project located in
an area designated for urban renewal or economic incentives.
79228. Not more than 5 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 4. Multipurpose Conjunctive Use Program
79230. Unless the context otherwise requires, the following
definitions govern the construction of this article:
(a) "Conjunctive use" means the operation of a groundwater basin,
or a portion thereof, with a surface water supply and conveyance
system to optimize water supply pursuant to which water is stored in
the groundwater basin for later use by intentionally recharging a
basin. Common forms of conjunctive use are either of the following:
(1) "Direct recharge" means a conjunctive use program
incorporating artificial recharge methods that require a source of
surface water pursuant to which the surface water is placed directly
into the ground by various means, including spreading ponds and
injection wells, and the water stored in the aquifer is, thus,
available for use in dry years when less surface water is available.
(2) "In-lieu recharge" means accomplishing increased storage of
groundwater by providing surface water to a user who relies on
groundwater as a primary supply, to accomplish groundwater storage
through the direct use of that surface water in lieu of pumping
groundwater.
(b) "Conjunctive use facilities" include land and appurtenant
facilities for any phase of a conjunctive use operation. Appurtenant
facilities may include surface and subsurface storage, treatment,
conveyance, recharge, monitoring, measurements, subsidence detection,
flow regulation, and extraction facilities. Any part or all of the
project facilities, including the land under the facilities, may
consist of the separable features, or an appropriate share of
multipurpose features of a larger system, or both.
(c) "Conjunctive use project" means either of the following:
(1) The construction of conjunctive use facilities.
(2) Local pilot projects.
(d) "Local public agency" means any city, county, city and county,
district, joint powers authority, or other political subdivision of
the state.
79231. (a) There is hereby created in the account the
Multipurpose Conjunctive Use Subaccount.
(b) For the purposes of this article, "subaccount" means the
Multipurpose Conjunctive Use Subaccount created by subdivision (a).
79232. The sum of one hundred fifty million dollars
($150,000,000) is hereby transferred from the account to the
subaccount for the purpose of implementing this article.
79233. The money in the subaccount, upon appropriation by the
Legislature to the department, may be used by the department to
provide grants to a local public agency for the agency's share of the
construction of conjunctive use facilities, or any portion thereof,
that provide broad multipurpose benefits of significant statewide
interest.
79234. (a) For the purposes of providing funding under this
article, the department shall determine that a conjunctive use
facility will provide multipurpose benefits of significant statewide
interest.
(b) The department shall consider the following types of projects
in prioritizing projects: a project's consistency with the bay-delta
solutions, a project that provides a broad spectrum of benefits to
water supply and to the environment, a project that is located in an
area that has implemented, or will assist in implementing, a
groundwater management plan, a project that is located in an area
that is, or will be, subject to a groundwater management program or
plan, a project that provides water storage and dry year water
supplies, a project that provides water storage and dry year water
supplies for one or more regions of the state, a project that is
located in a groundwater basin that is technically and
environmentally suited for conjunctive use, a project that is located
in an area with an overdrafted groundwater basin, a project of
critical need, a project that will alleviate salt water intrusion
into groundwater basins or other groundwater quality degradation, and
a project for which feasibility studies demonstrate the greatest
economic justification and the greatest engineering and hydrogeologic
feasibility, and a project for which third party or local matching
funds are provided.
79235. All projects shall be sponsored by a local public agency.
However, at the request of a local public agency sponsor, the
department may provide technical assistance, coordination, or any
other assistance in implementing a project or study.
79236. (a) A project or program undertaken pursuant to this
article shall protect and preserve the groundwater rights of
overlying landowners. As part of any project or program carried out
with funds from the subaccount, the local agency sponsor shall
establish an ongoing groundwater monitoring and mitigation program to
protect surrounding property owners from significant adverse impacts
related to the project or program. Prior to expending funds from
the subaccount for any project or program, the local agency sponsor
shall make a determination, after public review, that the project
will not significantly adversely affect the rights of overlying
landowners to groundwater.
(b) It is the intent of the Legislature that nothing in this
article jeopardize or interfere with the lawful use of groundwater
rights by any overlying landowner.
79237. The department may adopt procedural regulations to carry
out this article.
79238. Not more than 5 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 5. Upstream Reservoir Reoperation Analysis
79244. The Legislature finds and declares all of the following:
(a) The reoperation of existing onstream and upstream storage
facilities may improve local and systemwide water supplies and water
efficiency and facilitate the restoration of riparian and terrestrial
habitats.
(b) The management of onstream and upstream storage facilities for
the ecological health of the aquatic and riparian systems may
improve the ecosystems of the most altered and impaired riparian
habitats of the Sierra Nevada and improve riparian habitats in other
areas of the state.
(c) The management of water resources to achieve the greatest
number of benefits across the broadest spectrum is desirable.
(d) In the past, existing small storage facilities were developed
for single or limited purposes and may not currently achieve the
broadest possible spectrum of ecosystem protection and water supply.
(e) Where economically, environmentally, and operationally
feasible, there may be opportunities to achieve additional benefits,
including improvement in water supply, ecosystem health, recreation,
water quality, and efficiency through the reoperation of existing
facilities.
79246. There is hereby created in the account the Upstream
Reservoir Reoperation Analysis Subaccount.
79246.5. 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, joint powers authority, or other political subdivision of
the state.
(b) "Subaccount" means the Upstream Reservoir Reoperation Analysis
Subaccount created by Section 79246.
79247. The sum of ten million dollars ($10,000,000) is hereby
transferred from the account to the subaccount for the purposes of
implementing this article.
79248. (a) The money in the subaccount, upon appropriation by the
Legislature to the Secretary of the Resources Agency, may be used by
the secretary to provide grants to local public agencies and
nonprofit organizations for the purposes described in Section 79249.
(b) The studies described in Section 79249 shall be for
feasibility, advance planning, watershed assessments, and ecosystem
analysis related to existing water storage facilities. The purpose
of the studies shall be to evaluate the potential for reoperation of
existing storage facilities, to provide ecosystem, local water
supply, water quality, water conservation, water efficiency, and
flood control benefits.
(c) The studies shall also evaluate the adverse impacts of
proposed reoperations, including the impacts on riparian habitat,
natural flow regimes, recreation, anadromous fish passage, local
aquatic biota, aquatic refuges, natural sediment regimes, power
generation, economic impacts, and other impacts on the ecosystem and
the community.
(d) Eligible applicants include local public agencies and
nonprofit organizations that demonstrate the ability to manage the
study through a watershed-based group that is based in the community,
includes the participation of stakeholder interests in the
community, fosters collaboration among multiple interests, and
maintains an active and open public process.
79249. (a) A grant shall be awarded under this article in an
amount not to exceed five hundred thousand dollars ($500,000) for
studies for reoperation of existing facilities. The funds shall be
made available for each grant for a period not to exceed six years.
(b) Not later than September 1, 1999, the Resources Agency shall
solicit grant applications from eligible applicants in a manner that
is provided by the Resources Agency.
(c) Not later than June 1, 2000, the Resources Agency shall select
the initial successful group of applicants.
79250. No grant application may be filed for the evaluation of a
facility without the written consent of the owner of the facility.
79251. A proposed study, to receive planning and assessment
funds, shall be selected based on adherence to the following
criteria:
(a) The study will be overseen by the watershed group based in the
community that includes stakeholder interests.
(b) The watershed group that oversees the study has the capability
to manage a plan and assessment of the benefits and impacts of the
reoperation, including public accountability for decisionmaking,
contracts, and grant management.
(c) The watershed group that oversees the study has the capability
to coordinate the study with local, state, and federal agencies with
respect to federal or state lands affected by the reoperation.
79252. A study shall include an analysis of the cost of
reoperation.
79253. This article does not apply to any facility owned or
operated as part of the State Water Resources Development System or
as part of the federal Central Valley Project or other federally
owned projects.
79254. Not more than 5 percent of the total amount deposited in
the subaccount may be used to pay the costs incurred for
administration of this article.
Article 6. Bay-Delta Multipurpose Water Management Program
79255. Unless the context otherwise requires, the following
definitions govern the construction of this article:
(a) "Bay-delta ecosystem" means the bay-delta and its tributary
watersheds.
(b) "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.
(c) "CALFED EIS/EIR" means the final programmatic environmental
impact statement/environmental impact report being prepared by the
CALFED Bay-Delta Program.
(d) "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.
(e) (1) "Eligible project" means a multipurpose program or project
that meets all of the following requirements:
(A) The project provides multiple benefits, including at least two
of any of the following benefits:
(i) Improved water supply.
(ii) Improved water supply reliability.
(iii) Improved water quality.
(iv) Improved fish habitat.
(v) Fish protection.
(vi) Flood protection.
(B) The project is identified in the CALFED EIS/EIR as a CALFED
stage 1 action.
(C) The project does any of the following:
(i) Constructs fish screen facilities, such as intake structures,
fish handling facilities, or fish passage facilities or demonstration
projects.
(ii) Improves the south delta, by undertaking measures such as the
development of levee setbacks or waterway control structures or
dredging designed to provide water supply reliability, water quality,
water level, or ecosystem benefits.
(iii) Improves the central or north delta channels by undertaking
measures such as the development of levee setbacks, dredging, or the
creation of additional floodplain storage capacity designed to
improve water supply reliability or water quality, or to provide
flood control or ecosystem benefits.
(iv) Significantly reduces pollution in the delta by undertaking
projects in the delta or the watersheds of the delta, such as the
North Bay Aqueduct water quality improvement program, that do any of
the following:
(I) Control drainage from abandoned mines.
(II) Undertake salinity and selenium source control measures.
(III) Monitor aquatic toxicity.
(IV) Control storm water runoff.
(V) Control agricultural chemical runoff.
(VI) Undertake measures to improve the management of residential
pesticide use.
(v) Constructs State Water Project and Central Valley Project
connections such as a connection between Clifton Court Forebay and
the Tracy Pumping Plant intake or a connection between the California
Aqueduct and the Delta Mendota Canal to provide increased water
quality, water supply reliability, and fishery benefits.
(vi) Undertakes long term studies and investigations in the delta
and the watersheds of the delta as required by CALFED and identified
in the CALFED EIS/EIR.
(f) "Subaccount" means the Bay-Delta Water Supply and Water
Quality Improvement Subaccount created by Section 79258.
79256. 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, water
quality, water supply, and water management for the protection of
beneficial uses of the bay-delta ecosystem, and system integrity.
(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.
79257. (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.
79258. There is hereby created in the account the Bay-Delta Water
Supply and Water Quality Improvement Subaccount.
79258.5. The sum of one billion three hundred million dollars
($1,300,000,000) is hereby transferred from the account to the
subaccount for the purposes of this article.
79259. (a) Of the money transferred pursuant to Section 79258.5,
up to three hundred million dollars ($300,000,000) 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 in accordance with procedures established by CALFED for the
purposes of water supply and water quality improvement until the
Legislature, by statute, authorizes another entity, as recommended by
CALFED, to carry out this article.
(b) Of the money transferred pursuant to Section 79258.5, up to
one billion dollars ($1,000,000,000) in the subaccount, up on
appropriation by the Legislature to the Secretary of the Resources
Agency, may be used by the secretary to benefit eligible projects
that improve water supply, as described in clause (i) of subparagraph
(A) of paragraph (1) of subdivision (e) of Section 79255, in
accordance with procedures established by CALFED for the purposes of
water supply and water quality improvement until the Legislature, by
statute, authorizes another entity, as recommended by CALFED, to
carry out this article.
79259.5. Only programs, projects, or actions that constitute
eligible projects as defined in subdivision (e) of Section 79255 may
receive funding under this article.
79260. Except as provided in Section 79265, 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 identical 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.
79261. The state shall, to the greatest extent possible, secure
federal and nonfederal matching funds to implement this article.
79262. 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 79260 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) Specific project and program decisions involving the
expenditure of funds in the subaccount shall be made in accordance
with the procedures established by CALFED.
(f) 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.
79263. 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 79262 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.
79264. 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.
79265. Notwithstanding Sections 79260 and 79262, subject to
appropriation by the Legislature, funds shall be made available
annually from the subaccount for the purpose of funding the state's
share of CALFED's annual planning and administrative budget for the
water supply, water quality, and system integrity elements of the
CALFED Bay-Delta Program.
CHAPTER 10. FISCAL PROVISIONS
79280. Bonds in the total amount of ____ dollars ($____), not
including the amount of any refunding bonds issued in accordance with
Section 79289, 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.
79281. (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."
79282. 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,
and Flood Protection Finance Committee is hereby created. For
purposes of this division, the Safe Drinking Water, Clean Water, 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.
79283. 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.
79284. 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.
79285. 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 79286, appropriated
without regard to fiscal years.
79286. 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.
79287. 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.
79288. 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.
79289. 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.
79290. 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.
79291. 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 that article.
SEC. 2. Section 78626 of the Water Code is repealed.
78626. (a) All principal and interest payments received pursuant
to loan contracts entered into pursuant to this article shall be
deposited in the subaccount for additional loans under subdivision
(b) of Section 78621, and shall not be transferred to the General
Fund.
(b) The board may transfer any unallocated funds in the subaccount
to the Water Reclamation Account in the 1984 State Clean Water Bond
Fund for the purposes set forth in Section 13999.10.
SEC. 3. Section 78626 is added to the Water Code, to read:
78626. Unallocated funds remaining in the subaccount on November
4, 1998, 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,
Water Conservation, and Water Recycling Account in the Safe Drinking
Water, Clean Water, and Flood Protection Bond Fund for the purpose of
entering into additional loans under Article 4 (commencing with
Section 79161) of Chapter 8 of Division 26.
SEC. 4. Section 78675 of the Water Code is repealed.
78675. Any repayments of loans made pursuant to this article,
including interest payments, and all interest earned on, or accruing
to, any money in the subaccount, shall be deposited in the subaccount
and shall be available for the uses described in this article.
SEC. 5. Section 78675 is added to the Water Code, to read:
78675. Unallocated funds remaining in the subaccount on November
4, 1998, 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,
Water Conservation, and Water Recycling Account in the Safe Drinking
Water, Clean Water, and Flood Protection Bond Fund for the purposes
of entering into additional loans under Article 5 (commencing with
Section 79180) 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, Flood Protection, and Water Supply 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, Flood
Protection, and Water Supply Bond Act" and in the same square under
those words, the following in 8-point type: "This act provides for a
bond issue of two billion fifty million dollars ($2,050,000,000) to
provide funds for safe drinking water, flood protection, water
quality, and water supply programs." 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.