Amended in Senate May 8, 2014

Amended in Senate April 21, 2014

Amended in Senate April 8, 2014

Amended in Senate March 18, 2014

Amended in Senate March 5, 2014

Amended in Senate January 7, 2014

Amended in Senate September 11, 2013

Amended in Senate August 26, 2013

Amended in Assembly May 21, 2013

Amended in Assembly April 23, 2013

Amended in Assembly April 1, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 1331

Introduced by Assembly Member Rendon

(Principal coauthors: Assembly Members Alejo and Quirk-Silva)

(Coauthors: Assembly Members Ian Calderon, Chau, begin delete Stone, end delete begin insert  V. Manuel Pérez, Stone, Williams, end insert and Yamada)

(Coauthor: Senator Lara)

February 22, 2013

An act to repeal and add Division 26.7 (commencing with Section 79700) of the Water Code, and to repeal Section 2 of Chapter 3 of the Seventh Extraordinary Session of the Statutes of 2009, relating to a clean, safe, and reliable drinking water program, by providing the funds necessary therefor through an election for the issuance and sale of bonds of the State of California and for the handling and disposition of those funds.

LEGISLATIVE COUNSEL’S DIGEST

AB 1331, as amended, Rendon. Clean, Safe, and Reliable Drinking Water Act of 2014.

(1) Existing law, the Safe, Clean, and Reliable Drinking Water Supply Act of 2012, if approved by the voters, would authorize the issuance of bonds in the amount of $11,140,000,000 pursuant to the State General Obligation Bond Law to finance a safe drinking water and water supply reliability program. Existing law provides for the submission of the bond act to the voters at the November 4, 2014, statewide general election.

This bill would repeal these provisions.

(2) Under existing law, various measures have been approved by the voters to provide funds for water supply and protection facilities and programs.

This bill would enact the Clean, Safe, and Reliable Drinking Water Act of 2014, which, if adopted by the voters, would authorize the issuance of bonds in the amount of $8,000,000,000 pursuant to the State General Obligation Bond Law to finance a clean, safe, and reliable drinking water program.

This bill would provide for the submission of the bond act to the voters at the November 4, 2014, statewide general 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 26.7 (commencing with Section 79700)
of the Water Code, as added by Section 1 of Chapter 3 of the
Seventh Extraordinary Session of the Statutes of 2009, is repealed.

SEC. 2.  

Division 26.7 (commencing with Section 79700) is
added to the Water Code, to read:

 

Division 26.7.  Clean, Safe, and Reliable
Drinking Water Act of 2014.

 

Chapter  1. Short Title

 

79700.  

This division shall be known, and may be cited, as the
Clean, Safe, and Reliable Drinking Water Act of 2014.

 

Chapter  2. Findings

 

79701.  

The people of California find and declare all of the
following:

(a) Safeguarding supplies of clean and safe drinking water to
California’s homes, businesses, and farms is an essential
responsibility of government, and critical to protecting the quality
of life for Californians.

(b) Every Californian should have access to clean, safe, and
reliable drinking water, consistent with the human right to water
and Section 106.3. Providing adequate supplies of clean, safe, and
reliable drinking water is vital to keeping California’s economy
growing and strong.

(c) Climate change has impaired California’s capacity to ensure
clean, safe, and reliable drinking water, as droughts have become
more frequent and more severe, and ecosystems have become
stressed. Higher temperatures mean less snow pack, which is the
state’s largest water reservoir. Scientists project a loss of at least
25 percent of the snow pack in the Sierra Nevada Mountains by
2050. The Colorado River basin, which provides drinking water
to southern California, has experienced prolonged drought .

(d) California’s water infrastructure continues to age and
deteriorate. More than 50 years ago, Californians approved the
construction of the State Water Project. In the decades that
followed, California’s water leaders developed the most
sophisticated system of state, federal, regional, and local water
infrastructure anywhere in the world. In recent decades, however,
that water infrastructure and the water environment on which it
depends have deteriorated.

(e) In the years since the voters approved the State Water
Project, California’s population has continued to grow, from less
than 16 million in 1960 to more than 37 million in 2010. A growing
population and a growing economy have put greater stress on
California’s natural resources, including water. The Department
of Finance projects that California’s population will reach 50
million by 2049.

(f) A growing population and a growing economy have put
greater stress on California’s natural resources, including water.
Contamination of groundwater aquifers from economic activity
in the agricultural and industrial sectors has threatened vital
drinking water supplies.

(g) As California and its water infrastructure have grown,
increasing demands on California’s limited water supplies and
deteriorating aquatic ecosystems have led to intense conflict,
further threatening the reliability of clean and safe drinking water.

79702.  

The people of California find and declare all of the
following:

(a) A sustainable water future can provide the means for
California to maintain vibrant communities, globally competitive
agriculture, and healthy ecosystems, which are all a part of the
quality of life that attracts so many to live in California.

(b) Responding to climate change, ensuring clean and safe
drinking water, and preparing for California’s continued growth
will require a diversified portfolio of strategies and investments
to address the many water challenges facing California.

(c) Improving water quality offers one of the most immediate
steps to ensuring a clean and safe drinking water supply. California
needs water quality improvements at all parts of the hydrologic
cycle, from source water in the watersheds where the state’s
drinking water supplies originate to wastewater treatment and
potential reuse to improve surface water quality for those who live
downstream.

(d) Addressing the challenges to the sustainability of the Delta,
the heart of the California water system, will help resolve some
of the conflicts that impede progress in improving the statewide
water system.

(e) Enhancing regional water self-reliance consistent with
Section 85021 offers a key strategy for addressing climate change
and improving water supply reliability. It helps the Delta and it
helps local communities to address their own water challenges.
Water conservation and water recycling form one part of the
regional water self-reliance strategy and are commonsense methods
to make more efficient use of existing water supplies.

 

Chapter  3. Definitions

 

79703.  

Unless the context otherwise requires, the definitions
set forth in this section govern the construction of this division, as
follows:

(a) “CALFED Bay-Delta Program” means the program
described in the Record of Decision dated August 28, 2000.

(b) “Commission” means the California Water Commission.

(c) “Committee” means the Clean, Safe, and Reliable Drinking
Water Finance Committee created by Section 79802.

(d) “Delta” means the Sacramento-San Joaquin Delta, as defined
in Section 85058.

(e) “Delta conveyance facilities” means facilities that convey
water directly from the Sacramento River to the State Water Project
or the federal Central Valley Project pumping facilities in the south
Delta.

(f) “Delta counties” means the Counties of Contra Costa,
Sacramento, San Joaquin, Solano, and Yolo.

(g) “Department” means the Department of Water Resources.

(h) “Director” means the Director of Water Resources.

(i) “Disadvantaged community” has the meaning set forth in
subdivision (a) of Section 79505.5.

begin delete

(j) “Economically distressed area” means a municipality with
a population of 20,000 persons or less, a rural county, or a
reasonably isolated and divisible segment of a larger municipality
where the segment of the population is 20,000 persons or less,
with an annual median household income that is less than 85
percent of the statewide median household income, and with one
or more of the following conditions as determined by the
department:

(1) Financial hardship.

(2) Unemployment rate at least 2 percent higher than the
statewide average.

(3) Low population density.

end delete begin insert

(j) “Dry weather runoff” means surface waterflow produced
by nonstormwater resulting from residential, commercial, and
industrial activities involving the use of potable and nonpotable
water.

end insert

(k) “Fund” means the Clean, Safe, and Reliable Drinking Water
Fund of 2014 created by Section 79717.

(l) “Integrated regional water management plan” has the
meaning set forth in Section 10534.

(m) “Nonprofit organization” means an organization qualified
to do business in California and qualified under Section 501(c)(3)
of Title 26 of the United States Code.

(n) “Public agency” means a state agency or department, district,
joint powers authority, city, county, city and county, or other
political subdivision of the state.

(o) “Rainwater” has the meaning set forth in subdivision (c) of
Section 10573.

(p) “Secretary” means the Secretary of the Natural Resources
Agency.

(q) “Severely disadvantaged community” has the meaning set
forth in subdivision (n) of Section 116760.20 of the Health and
Safety Code.

(r) “Small community water system” means a community water
system that serves no more than 3,300 service connections or a
yearlong population of no more than 10,000 persons.

(s) “State board” means the State Water Resources Control
Board.

(t) “State General Obligation Bond Law” means the State
General Obligation Bond Law (Chapter 4 (commencing with
Section 16720) of Part 3 of Division 4 of Title 2 of the Government
Code).

(u) “State small water system” has the meaning set forth in
subdivision (n) of Section 116275 of the Health and Safety Code.

(v) “Stormwater” has the meaning set forth in subdivision (e)
of Section 10573.

 

Chapter  4. General Provisions

 

79705.  

An amount that equals not more than 5 percent of the
funds allocated for a financial assistance program pursuant to this
division may be used to pay the administrative costs of that
program.

79706.  

Unless otherwise specified, up to 10 percent of funds
allocated for each program funded by this division may be
expended for planning and monitoring necessary for the successful
design, selection, and implementation of the projects authorized
under that program. This section shall not otherwise restrict funds
ordinarily used by an agency for “preliminary plans,” “working
drawings,” and “construction” as defined in the annual Budget Act
for a capital outlay project or grant project. Water quality
monitoring data shall be collected and reported to the state board
in a manner that is compatible and consistent with surface water
monitoring data systems or groundwater monitoring data systems
administered by the state board. Watershed monitoring data shall
be collected and reported to the Department of Conservation in a
manner that is compatible and consistent with the statewide
watershed program data system administered by the Department
of Conservation.

79707.  

Chapter 3.5 (commencing with Section 11340) of Part
1 of Division 3 of Title 2 of the Government Code does not apply
to the development or implementation of programs or projects
authorized or funded under this division other than Chapter 9
(commencing with Section 79760).

79708.  

(a) Before disbursing grants or loans pursuant to this
division, each state agency that receives an appropriation from the
funding made available by this division to administer a competitive
grant or loan program under this division shall develop and adopt
project solicitation and evaluation guidelines. The guidelines shall
include monitoring and reporting requirements and may include
a limitation on the dollar amount of grants or loans to be awarded.
If the state agency previously has developed and adopted project
solicitation and evaluation guidelines that comply with the
requirements of this subdivision, it may use those guidelines.

(b) Before disbursing grants or loans, the state agency shall
conduct three public meetings to consider public comments prior
to finalizing the guidelines, as the implementing state agency
determines to be necessary. The state agency shall publish the draft
solicitation and evaluation guidelines on its Internet Web site at
least 30 days before any public meetings held pursuant to this
subdivision. Upon adoption, the state agency shall transmit copies
of the guidelines to the fiscal committees and the appropriate policy
committees of the Legislature.

79709.  

It is the intent of the people that:

(a) The investment of public funds pursuant to this division will
result in public benefits that address the most critical statewide
needs and priorities for public funding.

(b) Beneficiaries pay for the benefits they receive from projects
funded pursuant to this division.

(c) In the appropriation and expenditure of funding authorized
by this division, priority will be given to projects that leverage
private, federal, or local funding or produce the greatest public
benefit.

(d) A funded project advances the purposes of the chapter from
which the project received funding.

(e) In making decisions regarding water resources, state and
local water agencies use the best available science to inform those
decisions.

(f) Special consideration will be given to projects that employ
new or innovative technology or practices, including decision
support tools that support the integration of multiple jurisdictions,
including, but not limited to, water supply, flood control, land use,
and sanitation.

(g) Except as provided in Sections 79726 and 79727, the costs
of stewardship, operation, and maintenance of the projects funded
by this division will be paid from other sources of revenue that are
sustainable over the long term.

(h) Evaluation of projects considered for funding pursuant to
this division will include review by professionals in the fields
relevant to the proposed project.

(i) To the extent practicable, a project supported by funds made
available by this division will include signage informing the public
that the project received funds from the Clean, Safe, and Reliable
Drinking Water Act of 2014.

(j) Projects funded with proceeds from this division will be
consistent with Division 7 (commencing with Section 13000) of
this code and Section 13100 of the Government Code.

79710.  

(a) The California State Auditor shall annually conduct
a programmatic review and an audit of expenditures from the fund.

(b) Notwithstanding Section 10231.5 of the Government Code,
the California State Auditor shall report its findings annually on
or before March 1 to the Governor and the Legislature, and shall
make the findings available to the public.

(c) If an audit, required by statute, of a public agency that
receives funding authorized by this division is conducted pursuant
to state law and reveals any impropriety, the California State
Auditor or the Controller may conduct a full audit of any or all of
the activities of the public agency.

(d) The state agency issuing any grant or loan with funding
authorized by this division shall require adequate reporting of the
expenditures of the funding from the grant or loan.

79711.  

(a) Funds provided by this division shall not be
expended to support or pay for the costs of project or permit
specific environmental mitigation measures except as part of the
environmental mitigation costs of projects financed by this division.
Funds provided by this division may be used for environmental
enhancements or other public benefits.

(b) Funds provided by this division shall not be expended for
the acquisition or transfer of water rights except for a dedication
of water approved in accordance with Section 1707.

begin insert

(c) Funds provided by this division shall not be expended to
support or pay for penalties or correcting violations.

end insert

79712.  

Funds provided by this division shall not be expended
to pay the costs of the design, construction, operation, mitigation,
or maintenance of Delta conveyance facilities. Those costs shall
be the responsibility of the water agencies that benefit from the
design, construction, operation, or maintenance of those facilities.

79713.  

(a) This division does not diminish, impair, or
otherwise affect in any manner whatsoever any area of origin,
watershed of origin, county of origin, or any other water rights
protections, including, but not limited to, rights to water
appropriated before December 19, 1914, provided under the law.
This division does not limit or affect the application of Article 1.7
(commencing with Section 1215) of Chapter 1 of Part 2 of Division
2, Sections 10505, 10505.5, 11128, 11460, 11461, 11462, and
11463, and Sections 12200 to 12220, inclusive.

(b) For the purposes of this division, an area that utilizes water
that has been diverted and conveyed from the Sacramento River
hydrologic region, for use outside the Sacramento River hydrologic
region or the Delta, shall not be deemed to be immediately adjacent
thereto or capable of being conveniently supplied with water
therefrom by virtue or on account of the diversion and conveyance
of that water through facilities that may be constructed for that
purpose after January 1, 2014.

(c) Nothing in this division supersedes, limits, or otherwise
modifies the applicability of Chapter 10 (commencing with Section
1700) of Part 2 of Division 2, including petitions related to any
new conveyance constructed or operated in accordance with
Chapter 2 (commencing with Section 85320) of Part 4 of Division
35.

(d) Unless otherwise expressly provided, nothing in this division
supersedes, reduces, or otherwise affects existing legal protections,
both procedural and substantive, relating to the state board’s
regulation of diversion and use of water, including, but not limited
to, water right priorities, the protection provided to municipal
interests by Sections 106 and 106.5, and changes in water rights.
Nothing in this division expands or otherwise alters the state
board’s existing authority to regulate the diversion and use of water
or the courts’ existing concurrent jurisdiction over California water
rights.

(e) Nothing in this division shall be construed to affect the
California Wild and Scenic Rivers Act (Chapter 1.4 (commencing
with Section 5093.50) of Division 5 of the Public Resources Code)
and funds authorized pursuant to this division shall not be available
for any project that could have an adverse effect on the values
upon which a wild and scenic river or any other river is afforded
protections pursuant to the California Wild and Scenic Rivers Act.

(f) Nothing in this division supersedes, limits, or otherwise
modifies the Sacramento-San Joaquin Delta Reform Act of 2009
(Division 35 (commencing with Section 85000)).

79714.  

Eligible applicants under this division are public
agencies, public utilities, federally recognized Indian tribes, state
Indian tribes listed on the Native American Heritage Commission’s
California Tribal Consultation List, and nonprofit organizations.
A public agency may use funding authorized by this division to
benefit recipients of water from mutual water companies that
operate a public water system if the funding provides public
benefits. To be eligible for funding under this division, a project
proposed by a public utility shall have a clear and definite public
purpose, benefit its customers, and comply with Public Utilities
Commission rules on government funding for public utilities.

79715.  

The Legislature may enact legislation necessary to
implement programs funded by this division.

79716.  

(a) Funding made available by this division shall not
be appropriated to a specific project.

(b) Projects funded pursuant to this division shall use the
services of the California Conservation Corps or certified
community conservation corps, as defined in Section 14507.5 of
the Public Resources Code, whenever feasible.

(c) The Legislature may approve multiyear budget change
proposals for appropriation of the funds authorized by this division.

79717.  

The proceeds of bonds issued and sold pursuant to this
division shall be deposited into the Clean, Safe, and Reliable
Drinking Water Fund of 2014, which is hereby created in the State
Treasury.

79718.  

Each state agency that receives an appropriation of
funding made available by this division shall be responsible for
establishing metrics of success and reporting the status of projects
and all uses of the funding on the state’s bond accountability
Internet Web site, as provided by statute.

79719.  

All references in this division to other provisions of
law shall incorporate those provisions as they may be amended.

 

Chapter  5. Clean and Safe Drinking Water

 

79720.  

The sum of one billion dollars ($1,000,000,000) shall
be available, upon appropriation by the Legislature from the fund,
to the state board for expenditures, grants, and loans for projects
that improve water quality or help provide clean and safe drinking
water to all Californians.

79721.  

The projects eligible for funding pursuant to this chapter
shall help improve water quality for a beneficial use. The purposes
of this chapter are to:

(a) Reduce contaminants in drinking water supplies regardless
of the source of the water or the contamination, including the
assessment and prioritization of the risk to the safety of drinking
water supplies.

(b) Address the critical and immediate needs of disadvantaged,
rural, or small communities that suffer from contaminated drinking
water supplies, including, but not limited to, projects that address
a public health emergency.

(c) Leverage other private, federal, state, and local drinking
water quality and wastewater treatment funds.

(d) Reduce contaminants in discharges to, and improve the
quality of, surface water streams.

(e) Improve water quality of surface water streams, including
multibenefit stormwater quality projects.

(f) Prevent further contamination of drinking water supplies.

(g) Provide disadvantaged communities with public drinking
water infrastructure that provides clean and safe drinking water
supplies that the community can sustain over the long term.

(h) Ensure access to clean, safe, and affordable drinking water
for California’s communities.

begin insert

(i) Meet primary or secondary safe drinking water standards
or remove contaminants identified by the state or federal
government for development of a primary or secondary drinking
water standard.

end insert

79722.  

(a) A project that receives funding under this chapter
shall be selected by a competitive grant or loan process with added
consideration for those projects that leverage private, federal, or
local funding. This subdivision shall not apply to projects for the
purposes of Section 79727 that address a public health priority for
which no other source of funding can be identified.

(b) The state board shall assess the capacity of a community to
pay for the operation and maintenance of the facility to be funded.

(c) A project that receives funding authorized by this chapter
may be implemented by any public water system or other public
water agency.

79723.  

An applicant for a project to clean up a groundwater
aquifer shall demonstrate that a public agency has authority to
manage the water resources in that aquifer in order to be eligible
for funding pursuant to this chapter. This section does not apply
to projects that install treatment facilities at the wellhead, customer
connection, or the tap.

79724.  

The contaminants that may be addressed with funding
pursuant to this chapter may include, but shall not be limited to,
nitrates, perchlorate, MTBE (methyl tertiary butyl ether), arsenic,
selenium, hexavalent chromium, mercury, PCE
(perchloroethylene), TCE (trichloroethylene), DCE
(dichloroethene), DCA (dichloroethane), 1, 2, 3 TCP
(trichloropropane), carbon tetrachloride, 1,4-dioxane,
1,4-dioxacyclohexane, nitrosodimethylamine, bromide, iron,
manganese, and uranium.

79725.  

begin insert (a) end insert begin insert   end insert Of the funds authorized in Section 79720, not less
than four hundred million dollars ($400,000,000) shall be available
for deposit in the State Water Pollution Control Revolving Fund
Small Community Grant Fund created pursuant to Section 13477.6
for grants for wastewater treatment projects. Priority shall be given
to projects that serve disadvantaged communities and severely
disadvantaged communities, and to projects that address public
health hazards. Projects may include, but not be limited to, projects
that identify, plan, design, and implement regional mechanisms
to consolidate wastewater systems or provide affordable treatment
technologies.

begin insert

(b) The state board may expend up to ten million dollars
($10,000,000) of the funds allocated in subdivision (a) for technical
assistance to eligible communities.

end insert

79726.  

(a) Of the funds authorized in Section 79720, one
hundred million dollars ($100,000,000) shall be available for
deposit in the Emergency Clean Water Grant Fund, established
pursuant to Section 116475 of the Health and Safety Code, for
grants begin insert , loans, end insert and direct expenditures to finance public health
emergencies and urgent actions, as may be determined by the
Legislature, to ensure that safe drinking water supplies are available
to all Californians. Eligible projects include, but are not limited
to, the following:

(1) Providing interim water supplies begin delete , including, but not limited
to, bottled water, end delete where necessary to protect public health. begin insert For the
purposes of this subdivision, “interim” means the limited period
of time needed to address the identified urgent need for safe
drinking water, not to exceed three years. end insert

(2)  begin delete Identifying, planning, end delete begin insert Planning, end insert designing, and constructing
projects that improve or replace existing water systems to provide
safe, reliable, accessible, and affordable drinking water, provide
other sources of safe drinking water, including, but not limited to,
replacement wells, and prevent contamination.

(3) Establishing connections to an adjacent water system.

(4) The design, purchase, installation, and initial operating costs
for interim water treatment equipment and systems. begin insert For the
purposes of this subdivision, “initial operating costs” means those
initial, eligible, and reimbursable costs under an agreement for
interim water treatment equipment and systems that are incurred
up to, and including, initial startup testing of the equipment and
systems. Initial operating costs are eligible to receive funding
pursuant to this section for a period not to exceed one year. end insert

(b) The state board may expend up to ten million dollars
($10,000,000) for grants and loans to address the water quality
needs of begin delete private end delete begin insert domestic end insert well owners that have no other source
of funding and serve members of a disadvantaged community.

begin insert

(c) Any funds allocated pursuant to this section to an
investor-owned utility regulated by the Public Utilities Commission
or for the benefit of a mutual water company shall be expended
for the benefit of the ratepayers or the public, not the investors,
and the utility or company shall not charge the water system’s
ratepayers for the same water infrastructure improvements funded
by this section.

end insert

79727.  

(a)  begin insert (1) end insert begin insert   end insert Of the funds authorized in Section 79720, four
hundred million dollars ($400,000,000) shall be available for grants
and loans for public water system infrastructure improvements
and related actions to meet safe drinking water standards, ensure
affordable drinking water, or both. Priority shall be given to
projects that provide treatment for contamination or access to an
alternate drinking water source or sources for small community
water systems or state small water systems in disadvantaged
communities whose drinking water source is impaired by chemical
and nitrate contaminants and other health hazards identified by
the implementing agency. Eligible recipients serve disadvantaged
communities and are public agencies or incorporated mutual water
companies. The state board may make grants for the purpose of
financing feasibility studies and to meet the eligibility requirements
for a construction grant. Eligible expenses may include initial
operation and maintenance costs for systems serving disadvantaged
communities, for a period not to exceed two years. Special
consideration shall be given to projects that provide shared
solutions for multiple communities, at least one of which is a
disadvantaged community that lacks safe, affordable drinking
water and is served by a small community water system, state
small water system, or a private well. Construction grants shall be
limited to five million dollars ($5,000,000) per project, except that
the implementing agency may set a limit of not more than twenty
million dollars ($20,000,000) for projects that provide regional
benefits or are shared among multiple entities, at least one of which
shall be a begin delete small end delete disadvantaged community. Not more than 25
percent of a grant may be awarded in advance of actual
expenditures.

begin insert

(2) For the purposes of this subdivision, “initial operation and
maintenance costs” means those initial, eligible, and reimbursable
costs under a construction funding agreement that are incurred
up to, and including, initial startup testing of the constructed
project in order to deem the project complete. Initial operation
and maintenance costs are eligible to receive funding pursuant to
this section for a period not to exceed two years.

end insert

(b) The state board may expend up to twenty-five million dollars
($25,000,000) of the funds allocated in subdivision (a) for technical
assistance to eligible communities.

begin insert

(c) The state board shall deposit two million five hundred
thousand dollars ($2,500,000) of the funds available pursuant to
this section into the Drinking Water Capital Reserve Fund, which
is hereby created in the State Treasury. Moneys in the fund shall
be available, upon appropriation by the Legislature, and shall be
administered by the state board for the purpose of serving as
matching funds for disadvantaged communities. The state board
shall develop criteria to implement this subdivision.

end insert

79728.  

Of the funds authorized in Section 79720, up to one
hundred million dollars ($100,000,000) shall be available for grants
begin insert and loans end insert for treatment and remediation activities that prevent or
reduce the contamination of groundwater that serves as a source
of drinking water.

79729.  

(a) For the purposes of awarding funding under this
chapter, a local cost share of not less than 25 percent of the total
costs of the project shall be required. The cost-sharing requirement
may be waived or reduced for projects that directly benefit a
disadvantaged community begin delete or an economically distressed area end delete .

(b) At least 10 percent of the funds available pursuant to this
chapter shall be allocated for projects serving severely
disadvantaged communities.

(c) Funding authorized pursuant to this chapter shall include
funding for technical assistance to disadvantaged communities.
The agency administering this funding shall operate a
multidisciplinary technical assistance program for small and
disadvantaged communities.

(d) Funding for planning activities, including technical
assistance, to benefit disadvantaged communities may exceed 10
percent of the funds allocated, subject to the determination of the
need for additional planning funding by the state agency
administering the funding.

 

Chapter  6. Protecting Rivers, Lakes, Streams, Coastal
Waters, and Watersheds

 

79730.  

The sum of one billion five hundred million dollars
($1,500,000,000) shall be available, upon appropriation by the
Legislature from the fund, in accordance with this chapter, for
expenditures and grants for multibenefit ecosystem and watershed
protection and restoration projects that protect and improve
California watersheds, wetlands, forests, and flood plains.

79731.  

(a) Of the funds made available by this chapter, seven
hundred fifty million dollars ($750,000,000) shall be available for
appropriation as follows:

(1) Baldwin Hills Conservancy: eight million six hundred
thousand dollars ($8,600,000).

(2) California Tahoe Conservancy: twenty-five million seven
hundred thousand dollars ($25,700,000).

(3) Coachella Valley Mountains Conservancy: seventeen million
one hundred thousand dollars ($17,100,000).

(4) San Diego River Conservancy: eight million six hundred
thousand dollars ($8,600,000).

(5) San Gabriel and Lower Los Angeles Rivers and Mountains
Conservancy: thirty-four million three hundred thousand dollars
($34,300,000).

(6) San Joaquin River Conservancy: seventeen million one
hundred thousand dollars ($17,100,000).

(7) Santa Monica Mountains Conservancy: fifty-five million
seven hundred thousand dollars ($55,700,000).

(8) Sierra Nevada Conservancy: fifty-five million seven hundred
thousand dollars ($55,700,000).

(9) State Coastal Conservancy: three hundred million dollars
($300,000,000).

(10) Wildlife Conservation Board: one hundred eighty-four
million three hundred thousand dollars ($184,300,000).

(11) California Ocean Protection Council: forty-two million
nine hundred thousand dollars ($42,900,000).

(b) Of the funds allocated to the State Coastal Conservancy
pursuant to paragraph (9) of subdivision (a), one hundred seven
million dollars one hundred thousand dollars ($107,100,000) are
available as follows:

(1) Forty-two million eight hundred thousand dollars
($42,800,000) shall be available for projects that help restore
coastal salmonid populations.

(2) Sixty-four million three hundred thousand dollars
($64,300,000) shall be available for flood control projects on public
lands that provide critical flood, water quality, and wetland
ecosystem benefits to the San Francisco Bay region.

79732.  

In protecting and restoring California rivers, lakes,
streams, and watersheds, the purposes of this chapter are to:

(a) Protect and increase the economic benefits arising from
healthy watersheds, fishery resources, and instream flow.

(b) Implement watershed adaptation projects in order to reduce
the impacts of climate change on California’s communities and
ecosystems.

(c) Restore river parkways throughout the state, including, but
not limited to, projects pursuant to the California River Parkways
Act of 2004 (Chapter 3.8 (commencing with Section 5750) of
Division 5 of the Public Resources Code), in the Urban Streams
Restoration Program established pursuant to Section 7048, and
urban river greenways.

(d) Protect and restore aquatic, wetland, and migratory bird
ecosystems, including fish and wildlife corridors and the
acquisition of water rights for instream flow pursuant to Section
1707.

(e) Fulfill the obligations of the State of California in complying
with the terms of multiparty settlement agreements related to water
resources.

(f) Remove barriers to fish passage.

(g) Collaborate with federal agencies in the protection of fish
native to California and wetlands in the central valley of California.

(h) Implement fuel treatment projects to reduce wildfire risks,
protect watersheds tributary to water storage facilities, and promote
watershed health.

(i) Protect and restore rural and urban watershed health to
improve watershed storage capacity, forest health, protection of
life and property, stormwater resource management, and
greenhouse gas reduction.

(j) Promote access and recreational opportunities to watersheds
and waterways that are compatible with habitat values and water
quality objectives.

(k) Promote educational opportunities to instruct and inform
Californians, including young people, about the value of
watersheds.

(l) Protect and restore coastal watersheds, including, but not
limited to, bays, marine estuaries, and nearshore ecosystems.

(m) Reduce pollution or contamination of rivers, lakes, streams,
or coastal waters, prevent and remediate mercury contamination
from legacy mines, and protect or restore natural system functions
that contribute to water supply, water quality, or flood management.

(n) Assist in the recovery of endangered, threatened, or
migratory species by improving watershed health, instream flows
pursuant to Section 1707, fish passage, coastal or inland wetland
restoration, or other means, such as natural community
conservation plan and habitat conservation plan implementation.

(o) Promote urban forestry pursuant to the Urban Forest Act of
1978 (Chapter 2 (commencing with Section 4799.06) of Part 2.5
of Division 4 of the Public Resources Code).

79733.  

For restoration and ecosystem protection projects under
this chapter, the services of the California Conservation Corps or
a local conservation corps certified by the California Conservation
Corps shall be used whenever feasible.

79734.  

(a) (1) Notwithstanding Section 79711, of the funds
authorized in Section 79730, five hundred million dollars
($500,000,000) shall be available for appropriation to the secretary
to fulfill the obligations of the State of California in complying
with the terms of any of the following:

(A) The February 18, 2010, Klamath Basin Restoration
Agreement or Klamath Hydroelectric Settlement Agreement.

(B) Chapters 611, 612, and 613 of the Statutes of 2003, which
were enacted to facilitate the execution and implementation of the
Quantification Settlement Agreement, including restoration of the
Salton Sea.

(C) The San Joaquin River Restoration Settlement, as described
in Part I of Subtitle A of Title X of Public Law 111-11.

(D) Section 3406(d) of Title 34 of Public Law 102-575.

(E)  The Tahoe Regional Planning Compact set forth in Section
66801 of the Government Code pursuant to Title 7.42 (commencing
with Section 66905) of the Government Code.

(2) Expenditures funded by this subdivision shall comply with
Section 16727 of the Government Code.

(b) Of the funds authorized in Section 79730, two hundred fifty
million dollars ($250,000,000) shall be available for appropriation
to the secretary for a competitive program to fund multibenefit
watershed and urban rivers enhancement projects in urban
watersheds, including watersheds that drain into the San Francisco
Bay, that increase regional and local water self-sufficiency, and
that meet at least two or more of the following objectives:

(1) Promote groundwater recharge and water reuse.

(2) Reduce energy consumption.

(3) Use soils, plants, and natural processes to treat runoff.

(4) Create or restore native habitat.

(5) Increase regional and local resiliency and adaptability to
climate change.

(c) The program described in subdivision (b) shall be
implemented by state conservancies, the Wildlife Conservation
Board, or other entities designated by the secretary whose
jurisdiction includes urban watersheds. The projects are subject
to a plan developed jointly by the conservancies, the Wildlife
Conservation Board, or other designated entities in consultation
with the secretary.

(d) At least 25 percent of the funds available pursuant to this
section shall be allocated for projects that benefit disadvantaged
communities.

(e) Up to 10 percent of the funds available pursuant to this
section may be allocated for project planning.

79735.  

For the purposes of this chapter, the terms “protection”
and “restoration” have the meanings set forth in Section 75005 of
the Public Resources Code.

 

Chapter  7. Climate Change and Drought Preparedness
for Regional Water begin delete Security end delete begin insert Reliability end insert

 

79740.  

The sum of two billion dollars ($2,000,000,000) shall
be available, upon appropriation by the Legislature from the fund,
for expenditures and competitive grants and loans to projects that
respond to climate change and contribute to regional water security
as provided in this chapter.

79741.  

In order to improve regional water self-reliance and
adapt to the effects on water supply arising out of climate change,
the purposes of this chapter are to:

(a) Help water infrastructure systems adapt to climate change,
including, but not limited to, sea level rise.

(b) Provide incentives for water agencies throughout each
watershed to collaborate in managing the region’s water resources
and setting regional priorities for water infrastructure.

(c) Improve regional water self-reliance, including projects
consistent with Section 85021.

79742.  

(a) In selecting among proposed projects in a
watershed, the scope of the adopted integrated regional water
management plan may be considered by the administering state
agency, with priority going to projects in plans that cover a greater
portion of the watershed. If a plan covers substantially all of the
watershed, then the plan’s project priorities shall be given deference
if the project and plan otherwise meet the requirements of this
division and the Integrated Regional Water Management Planning
Act of 2002 (Part 2.2 (commencing with Section 10530) of
Division 6).

(b) An urban water supplier that does not prepare, adopt, and
submit its urban water management plan in accordance with the
Urban Water Management Planning Act (Part 2.6 (commencing
with Section 10610) of Division 6) is ineligible to apply for funds
made available pursuant to this chapter until the urban water
management plan is prepared and submitted in accordance with
the requirements of that act. The department shall certify that an
urban water management plan meets the requirements of the Urban
Water Management Planning Act and Sections 10608.56 and
10631.5 before awarding any grants or loans pursuant to this
chapter.

(c) An agricultural water supplier that does not prepare, adopt,
and submit its agricultural water management plan in accordance
with the Agricultural Water Management Planning Act (Part 2.8
(commencing with Section 10800) of Division 6) is ineligible to
apply for funds made available pursuant to this chapter until the
agricultural water management plan is prepared and submitted in
accordance with the requirements of that act. The department shall
certify that an agricultural water management plan meets the
requirements of the Agricultural Water Management Planning Act
and Section 10608.56 before awarding any grants or loans pursuant
to this chapter.

(d) A local agency that does not prepare, adopt, and submit its
groundwater management plan in accordance with Part 2.75
(commencing with Section 10750) of Division 6 is ineligible to
apply for funds made available pursuant to this chapter until the
plan is prepared and submitted in accordance with the requirements
of that part. The department shall certify that a groundwater
management plan meets the requirements of that part and Section
10753.7 before awarding any grants or loans pursuant to this
chapter.

(e) For the purposes of awarding funding under this chapter, a
cost share from nonstate sources of not less than 25 percent of the
total costs of the project shall be required. The cost sharing
requirement may be waived or reduced for projects that directly
benefit a disadvantaged begin delete community or an economically distressed
area. end delete begin insert community. end insert

(f) Not less than 10 percent of the funds authorized by this
chapter shall be allocated to projects that directly benefit
disadvantaged communities.

(g) For the purposes of awarding funding under Section 79744,
the applicant shall demonstrate that the integrated regional water
management plan the applicant’s project implements contributes
to addressing the risks in the region to water supply and water
infrastructure arising from climate change.

(h) Projects that achieve multiple benefits shall receive special
consideration.

79743.  

Subject to the determination of regional priorities by
the regional water management group and the purposes described
in Section 79741, projects eligible for funding allocated regionally
by Section 79744 shall be regional projects or programs, as defined
in Section 10537, and may include, but are not limited to, projects
that promote any of the following:

(a) Water reuse and recycling for nonpotable reuse and direct
and indirect potable reuse.

(b) Water-use efficiency and water conservation.

(c) Local and regional surface and underground water storage,
including groundwater aquifer cleanup or recharge projects.

(d) Regional water conveyance facilities that improve integration
of separate water systems.

(e) Watershed protection, restoration, and management projects,
including projects that reduce the risk of wildfire or improve water
supply reliability or water quality.

(f) Stormwater resource management plans and projects pursuant
to the Stormwater Resource Planning Act (Part 2.3 (commencing
with Section 10560) of Division 6).

(g) Conjunctive use of surface and groundwater storage
facilities.

(h) Water desalination projects.

(i) Improvement of water quality, including drinking water
treatment and distribution, groundwater and aquifer remediation,
matching water quality to water use, wastewater treatment, water
pollution prevention, and management of urban and agricultural
runoff.

79744.  

(a) Of the funds authorized in Section 79740, the sum
of one billion dollars ($1,000,000,000) shall be administered
according to this section.

(b) Funds made available pursuant to this section shall be
available for appropriation to, and shall be administered by, the
department in close collaboration with the state board. Specific
project and planning grant awards shall be selected jointly by the
director and chair of the state board.

(c) Funds shall be allocated to the hydrologic regions as
identified in the California Water Plan in accordance with this
section. For the South Coast hydrologic region, the department
shall establish three funding areas that reflect the watersheds of
San Diego County and southern Orange County (designated as the
San Diego subregion), the Santa Ana River watershed (designated
as the Santa Ana subregion), and the Los Angeles and Ventura
County watersheds (designated as the Los Angeles subregion),
and shall allocate funds to those areas in accordance with this
subdivision. The North and South Lahontan hydrologic regions
shall be treated as one area for the purpose of allocating funds. For
purposes of this subdivision, the Sacramento River hydrologic
region does not include the Delta. For purposes of this subdivision,
the Mountain Counties Overlay is not eligible for funds from the
Sacramento River hydrologic region or the San Joaquin River
hydrologic region. Multiple integrated regional water management
plans may be recognized in each of the areas allocated funding.

(d) Funds described in this section shall be allocated as follows:

(1) Forty-five million dollars ($45,000,000) for the North Coast
hydrologic region.

(2) One hundred thirty-two million dollars ($132,000,000) for
the San Francisco Bay hydrologic region.

(3) Fifty-eight million dollars ($58,000,000) for the Central
Coast hydrologic region.

(4) One hundred ninety-eight million dollars ($198,000,000)
for the Los Angeles subregion.

(5) One hundred nineteen million dollars ($119,000,000) for
the Santa Ana subregion.

(6) Ninety-six million dollars ($96,000,000) for the San Diego
subregion.

(7) Seventy-six million dollars ($76,000,000) for the Sacramento
River hydrologic region.

(8) Sixty-four million dollars ($64,000,000) for the San Joaquin
River hydrologic region.

(9) Seventy million dollars ($70,000,000) for the Tulare/Kern
hydrologic region.

(10) Fifty-one million dollars ($51,000,000) for the North/South
Lahontan hydrologic region.

(11) Forty-seven million dollars ($47,000,000) for the Colorado
River Basin hydrologic region.

(12) Forty-four million dollars ($44,000,000) for the Mountain
Counties Overlay.

(e) Funds allocated pursuant to this section may be used for the
purposes described in Sections 79745 and 79747.

79745.  

(a) Of the funds authorized by Section 79740, two
hundred fifty million dollars ($250,000,000) shall be available for
appropriation to the department for direct expenditures, grants,
and loans for water conservation and water use efficiency plans,
projects, and programs, including either of the following:

(1) Urban water conservation plans, projects, and programs,
including regional projects and programs, implemented to achieve
urban water use targets developed pursuant to Section 10608.20.
Priority for funding shall be given to programs that do any of the
following:

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

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

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

(2) Agricultural water management plans or agricultural water
use efficiency projects and programs developed pursuant to Part
2.8 (commencing with Section 10800) of Division 6. Of the funds
provided by this section, one hundred million dollars
($100,000,000) shall be available for improving on-farm water
use efficiency, including, but not limited to, drip irrigation.

(b) Section 1011 applies to all conservation measures that an
agricultural water supplier or an urban water supplier implements
with funding under this chapter. This subdivision does not limit
the application of Section 1011 to any other measures or projects
implemented by a water supplier.

(c) For purposes of this section, funded projects shall not be
required to comply with the requirements of the Integrated
Regional Water Management Planning Act of 2002 (Part 2.2
(commencing with Section 10530) of Division 6). The funding
available pursuant to this section may be appropriated to an
integrated regional water management program or plan.

79746.  

Of the funds authorized by Section 79740, five hundred
million dollars ($500,000,000) shall be available to the state board,
upon appropriation by the Legislature from the fund, for grants
and low-interest loans for water recycling and advanced treatment
technology projects, including all of the following:

(a) Water recycling projects, including, but not limited to,
treatment, storage, conveyance, and distribution facilities for
potable and nonpotable recycling projects.

(b) Contaminant and salt removal projects, including, but not
limited to, groundwater and seawater desalination and associated
treatment, storage, conveyance, and distribution facilities.

(c) Dedicated distribution infrastructure to serve residential,
agricultural, commercial, and industrial end-users to allow the use
of recycled water.

(d) Pilot projects for new salt and contaminant removal
technology.

(e) Groundwater recharge infrastructure related to recycled
water.

(f) Technical assistance and grant writing assistance for
disadvantaged communities.

(g) For projects funded pursuant to this section, at least a 25
percent local cost share shall be required. That cost share may be
suspended or reduced for disadvantaged begin delete communities and
economically distressed areas. end delete begin insert communities. end insert

(h) Water supply reliability improvement for critical urban water
supplies in designated superfund areas with groundwater
contamination listed on the National Priorities List established
pursuant to Section 105 of the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980 (42 U.S.C.
Sec. 9605(a)(8)(B)).

(i) Projects funded pursuant to this section shall be selected on
a competitive basis, considering all of the following criteria:

(1) Regional water supply reliability improvement.

(2) Water quality and ecosystem benefits related to decreased
reliance on diversions from the Delta or instream flows.

(3) Public health benefits from improved drinking water quality.

(4) Cost effectiveness.

(5) Energy efficiency and greenhouse gas emission impacts.

(6) Reasonable geographic allocation to eligible projects
throughout the state, including both northern and southern
California and coastal and inland regions.

(j) For the purposes of this section, eligible projects shall
implement a plan or strategy by one or more regional water
agencies or integrated regional water management groups to
incorporate water recycling or advanced treatment technology into
the region’s water supplies.

(k) For purposes of this section, competitive programs shall be
implemented consistent with water recycling programs
administered pursuant to Sections 79140 and 79141 or consistent
with desalination programs administered pursuant to Sections
79545 and 79547.2.

(l) For purposes of this section, funded projects shall not be
required to comply with the requirements of the Integrated
Regional Water Management Planning Act of 2002 (Part 2.2
(commencing with Section 10530) of Division 6).

79747.  

(a) Of the funds authorized by Section 79740, two
hundred fifty million dollars ($250,000,000) shall be available for
appropriation to the state board for grants and loans for projects
that develop, implement, or improve a stormwater capture and
reuse plan consistent with Part 2.3 (commencing with Section
10560) of Division 6 and that capture and put to beneficial use
stormwater or dry weather runoff.

(b) Stormwater capture and reuse projects developed pursuant
to an adopted integrated regional water management plan in
compliance with Part 2.2 (commencing with Section 10530) of
Division 6 are also eligible for funding under this section if those
projects were identified and developed in substantive compliance
with Part 2.3 (commencing with Section 10560) of Division 6.

(c) Projects eligible for funding under this section shall assist
in the capture and reuse of stormwater or dry weather runoff.
Eligible projects include any of the following:

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

(2) The development of stormwater capture and reuse plans
pursuant to Part 2.3 (commencing with Section 10560) of Division
6.

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

(4) Projects that, in addition to capturing and reusing stormwater
or dry weather runoff, improve water quality, provide public
benefits, such as augmentation of water supply, flood control, open
space, and recreation, and projects designed to mimic or restore
natural watershed functions.

(d) The state board shall grant special consideration to plans or
projects that provide multiple benefits such as water quality, water
supply, flood control, natural lands, or recreation.

(e) The state board shall require a 25 percent local cost share
for grant funds, but may suspend or reduce the matching
requirements for projects that capture or reuse stormwater or dry
weather runoff in disadvantaged communities.

(f) The state board shall adopt a policy establishing criteria for
projects funded by this section to ensure that a project funded
pursuant to this section complies with water quality laws and does
not put at risk any groundwater or surface water supplies.

79748.  

In order to receive funding authorized by this chapter
to address groundwater quality or supply in an aquifer, the
applicant shall demonstrate that a public agency has authority to
manage the water resources in that aquifer. A groundwater
management plan adopted and approved pursuant to Part 2.75
(commencing with Section 10750) of Division 6 shall be deemed
sufficient to satisfy the requirements of this section.

 

Chapter  8. Sacramento-San Joaquin Delta
Sustainability

 

79750.  

(a) The sum of one billion dollars ($1,000,000,000)
shall be available, upon appropriation by the Legislature from the
fund, for grants and direct expenditures to improve the
sustainability of the Delta as follows:

(1) Four hundred million dollars ($400,000,000) of the funding
available pursuant to this chapter shall be available for
appropriation to the department for the purpose identified in
subdivision (b) of Section 79751.

(2) Six hundred million dollars ($600,000,000) of the funding
available pursuant to this chapter shall be available for
appropriation to the Sacramento-San Joaquin Delta Conservancy
for the purposes identified in subdivisions (a) and (c) of Section
79751.

(3) Funding available pursuant to paragraphs (1) and (2) may
be combined to provide funding to projects that accomplish more
than one of the purposes identified in Section 79751.

(b) This chapter provides state funding for public benefits
associated with projects needed to assist in the Delta’s
sustainability as a vital resource for fish, wildlife, water quality,
water supply, agriculture, and recreation.

79751.  

In order to promote the sustainability and resiliency of
the Delta, the purposes of this chapter are to:

(a) Protect, restore, and enhance the Delta ecosystem.

(b) Maintain and improve existing Delta levees.

(c) Promote the sustainability of the Delta.

79752.  

The funds authorized in Section 79750 shall not be
used to pay the costs of a public agency exercising eminent domain
to acquire or use property. All property acquired with moneys
available pursuant to this chapter shall be acquired from willing
sellers.

79754.  

Funding authorized by this chapter for the purpose of
subdivision (a) of Section 79751 may include, but is not limited
to, the following:

(a) Projects to protect and restore native fish and wildlife
dependent on the Delta ecosystem, including improvement of
aquatic or terrestrial habitat or the removal or reduction of
undesirable invasive species.

(b) Projects to reduce greenhouse gas emissions from exposed
Delta soils.

(c) Scientific studies and assessments that support the projects
authorized under this section.

79755.  

(a) Funding authorized by this chapter for the purpose
of subdivision (b) of Section 79751 shall reduce the risk of levee
failure and flood in the Delta and may be expended, consistent
with the Delta levee investment priorities recommended pursuant
to Section 85306, for any of the following:

(1) Local assistance under the Delta levee maintenance
subventions program under Part 9 (commencing with Section
12980) of Division 6.

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

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

(4) Emergency response and repair projects.

(b) All projects funded pursuant to this section shall be subject
to Section 79050.

(c) The department shall, as a part of the 2015-16 fiscal year
May budget revision, provide the Senate and Assembly Budget
Committees a proposal for implementing paragraphs (3) and (4)
of subdivision (a) including any changes to statutes necessary to
implement that proposal.

 

Chapter  9. Water Storage for Climate Change

 

79760.  

(a) Notwithstanding Section 162, the commission may
make the determinations, findings, and recommendations required
of it by this chapter independent of the views of the director. All
final actions by the commission in implementing this chapter shall
be taken by a majority of the members of the commission at a
public meeting noticed and held pursuant to the Bagley-Keene
Open Meeting Act (Article 9 (commencing with Section 11120)
of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government
Code).

(b) The commission shall submit project status reports as
requested to the Department of Finance.

(c) Projects shall be selected by the commission through a
competitive public process that ranks potential projects based on
the expected return for public investment as measured by the
magnitude of the public benefits provided, pursuant to criteria
established under this chapter.

(d) Only projects selected by the commission shall be eligible
for funding authorized by this chapter. Funding authorized by this
chapter shall be appropriated to the commission.

(e) The commission shall, to the extent feasible, maximize the
following:

(1) Leveraging of the funding made available in this chapter
with funds from federal, local, and private sources.

(2) Statewide storage benefits or regional storage benefits that
promote regional self-reliance.

79761.  

The sum of two billion five hundred million dollars
($2,500,000,000) shall be available, upon appropriation by the
Legislature, from the fund to the commission, for expenditures,
competitive grants, and loans for public benefits associated with
projects that expand the state’s water storage capacity.

79762.  

In order to expand the state’s water storage capacity to
address the impacts of climate change on the snow pack in the
Sierra Nevada Mountains and water storage resources, the purposes
of this chapter are to:

(a) Construct new surface water storage projects.

(b) Restore and expand groundwater aquifer storage capacity.

(c) Restore water storage capacity of existing surface water
storage reservoirs.

(d) Remediate or prevent contamination of groundwater aquifers.

(e) Construct and expand stormwater retention facilities.

79763.  

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

(a) Surface storage projects identified in the CALFED Bay-Delta
Program Record of Decision, dated August 28, 2000, except for
projects prohibited by Chapter 1.4 (commencing with Section
5093.50) of Division 5 of the Public Resources Code.

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

(c) Conjunctive use and reservoir reoperation projects.

(d) Local and regional surface storage projects that improve the
operation of water systems in the state, including, but not limited
to, reservoirs for storing recycled water.

(e) Projects that remove sediment, improve dam stability in
seismic events, or otherwise restore water storage capacity in
existing water storage reservoirs.

79764.  

A project in the Delta watershed shall not be funded
pursuant to this chapter unless it provides measurable
improvements to the Delta ecosystem.

79765.  

(a) Funds allocated pursuant to this chapter may be
expended solely for the following public benefits associated with
water storage projects:

(1) Ecosystem improvements, including changing the timing of
water diversions, improvement in flow conditions, temperature,
or other benefits that contribute to restoration of aquatic ecosystems
and native fish and wildlife, including those ecosystems and fish
and wildlife in the Delta or the Delta tributaries.

(2) Water quality improvements in the Delta, or in other river
systems, that provide significant public trust fish and wildlife
resources, or that clean up and restore groundwater resources.

(3) Flood control benefits, including, but not limited to, increases
in flood reservation space in existing reservoirs by exchange for
existing or increased water storage capacity in response to the
effects of changing hydrology and decreasing snow pack on
California’s water and flood management system.

(b) Notwithstanding subdivision (a), in response to an
emergency declared by the Governor, funds provided by this
chapter may be used to acquire or to reimburse the costs of
acquiring emergency water supplies and flows for dilution and
salinity repulsion following a natural disaster or act of terrorism.

79766.  

In consultation with the Department of Fish and
Wildlife, the state board, and the department, the commission shall
develop and adopt, by regulation, methods for quantification and
management of public benefits described in Section 79765 by
December 15, 2015. The regulations shall include the priorities
and relative environmental value of ecosystem benefits as provided
by the Department of Fish and Wildlife and the priorities and
relative environmental value of water quality benefits as provided
by the state board.

79767.  

(a) Except as provided in subdivision (c), funds
allocated pursuant to this chapter shall not be allocated for a project
until the commission approves the project based on the
commission’s determination that all of the following have occurred:

(1) The commission has adopted the regulations specified in
Section 79766 and specifically quantified and made public the cost
of the public benefits associated with the project.

(2) For projects to be constructed and operated by the
department, the department has entered into a contract with each
party that will derive benefits, other than public benefits, as defined
in Section 79765, from the project that ensures the party will pay
its share of the total costs of the project. The benefits available to
a party shall be consistent with that party’s share of total project
costs.

(3) The department has entered into a contract with each public
agency identified in Section 79766 that administers the public
benefits, after that agency makes a finding that the public benefits
of the project for which that agency is responsible meet all the
requirements of this chapter, to ensure that the public contribution
of funds pursuant to this chapter achieves the public benefits
identified for the project.

(4) The commission has held a public hearing for the purposes
of providing an opportunity for the public to review and comment
on the information required to be prepared pursuant to this
subdivision.

(5) All of the following additional conditions are met:

(A) Feasibility studies have been completed.

(B) The commission has found and determined that the project
is feasible, is consistent with all applicable laws and regulations,
and, if the project is in the Delta watershed, will advance one or
more of the policy objectives specified in Section 85020.

(C) All environmental documentation associated with the project
has been completed, and all other federal, state, and local approvals,
certifications, and agreements required to be completed have been
obtained.

(b) The commission shall submit to the Legislature its findings
for each of the criteria identified in subdivision (a) for a project
funded pursuant to this chapter.

(c) Notwithstanding subdivision (a), funds may be made
available under this chapter for the completion of environmental
documentation and permitting of a project.

79768.  

(a) The public benefit cost share of a project funded
pursuant to this chapter shall not exceed 50 percent of the total
costs of any project funded under this chapter.

(b) In order to receive funding authorized by this chapter to
improve groundwater storage in an aquifer, the applicant shall
demonstrate that a public agency has authority to manage the water
resources in that aquifer.

79769.  

(a) A project is not eligible for funding under this
chapter unless, by January 1, 2018, all of the following conditions
are met:

(1) All feasibility studies are complete and draft environmental
documentation is available for public review.

(2) The commission makes a finding that the project is feasible,
and will advance the long-term objectives of restoring ecological
health and improving water management for beneficial uses.

(3) For projects to be constructed and operated by the
department, the director receives commitments for not less than
75 percent of the nonpublic benefit cost share of the project.

(b) If compliance with subdivision (a) is delayed by litigation
or failure to promulgate regulations, the date in subdivision (a)
shall be extended by the commission for a time period that is equal
to the time period of the delay, and funding under this chapter that
has been dedicated to the project shall be encumbered until the
time at which the litigation is completed or the regulations have
been promulgated.

79770.  

(a) Funding authorized by this chapter shall not be
used to pay any share of the costs of remediation begin delete recovered end delete
begin insert recoverable end insert from parties responsible for the contamination of a
groundwater storage aquifer, but may be used to pay costs that
cannot be recovered from responsible parties. Parties that receive
funding for remediating groundwater storage aquifers shall exercise
reasonable efforts to recover the costs of groundwater cleanup
from the parties responsible for the contamination.

(b) Projects and activities that leverage funding from local
agencies and responsible parties to the maximum extent possible
shall receive priority consideration.

79771.  

From the funds described in Section 79761, upon
appropriation by the Legislature, the commission shall make
twenty-five million dollars ($25,000,000) available to the
department for studying the feasibility of additional surface storage
projects. Funds provided by this section are not available to study
the feasibility of any storage project identified in the CALFED
Bay-Delta Program Record of Decision, dated August 28, 2000.

 

Chapter  10. Fiscal Provisions

 

79800.  

(a) Bonds in the total amount of eight billion dollars
($8,000,000,000), or so much thereof as is necessary, not including
the amount of any refunding bonds issued in accordance with
Section 79812 may be issued and sold to provide a fund to be used
for carrying out the purposes expressed in this division and to
reimburse the General Obligation Bond Expense Revolving Fund
pursuant to Section 16724.5 of the Government Code. The bonds,
when sold, shall be and constitute a valid and binding obligation
of the State of California, and the full faith and credit of the State
of California is hereby pledged for the punctual payment of both
principal of, and interest on, the bonds as the principal and interest
become due and payable.

(b) The Treasurer shall sell the bonds authorized by the
committee pursuant to this section. The bonds shall be sold upon
the terms and conditions specified in a resolution to be adopted
by the committee pursuant to Section 16731 of the Government
Code.

79801.  

The bonds authorized by this division shall be prepared,
executed, issued, sold, paid, and redeemed as provided in the State
General Obligation Bond Law (Chapter 4 (commencing with
Section 16720) of Part 3 of Division 4 of Title 2 of the Government
Code), and all of the provisions of that law apply to the bonds and
to this division and are hereby incorporated in this division as
though set forth in full in this division, except subdivisions (a) and
(b) of Section 16727 of the Government Code.

79802.  

(a) Solely for the purpose of authorizing the issuance
and sale pursuant to the State General Obligation Bond Law
(Chapter 4 (commencing with Section 16720) of Part 3 of Division
4 of Title 2 of the Government Code) of the bonds authorized by
this division, the Clean, Safe, and Reliable Drinking Water Finance
Committee is hereby created. For purposes of this division, the
Clean, Safe, and Reliable Drinking Water Finance Committee is
the “committee” as that term is used in the State General Obligation
Bond Law.

(b) The committee consists of the Director of Finance, the
Treasurer, the Controller, the Director of Water Resources, and
the Secretary of the Natural Resources Agency. Notwithstanding
any other provision of law, any member may designate a
representative to act as that member in his or her place for all
purposes, as though the member were personally present.

(c) The Treasurer shall serve as chairperson of the committee.

(d) A majority of the committee may act for the committee.

79803.  

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.

79804.  

For purposes of the State General Obligation Bond
Law, “board,” as defined in Section 16722 of the Government
Code, means the Department of Water Resources.

79805.  

There shall be collected each year and in the same
manner and at the same time as other state revenue is collected,
in addition to the ordinary revenues of the state, a sum in an amount
required to pay the principal of, and interest on, the bonds each
year. It is the duty of all officers charged by law with any duty in
regard to the collection of the revenue to do and perform each and
every act that is necessary to collect that additional sum.

79806.  

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 that is necessary to carry out the provisions of
Section 79809, appropriated without regard to fiscal years.

79807.  

The board may request the Pooled Money Investment
Board to make a loan from the Pooled Money Investment Account
in accordance with Section 16312 of the Government Code for the
purpose of carrying out this division less any amount withdrawn
pursuant to Section 79809. The amount of the request shall not
exceed the amount of the unsold bonds that the committee has, by
resolution, authorized to be sold for the purpose of carrying out
this division. The board shall execute those documents required
by the Pooled Money Investment Board to obtain and repay the
loan. Any amounts loaned shall be deposited in the fund to be
allocated in accordance with this division.

79808.  

Notwithstanding any other provision of this division,
or of the State General Obligation Bond Law, if the Treasurer sells
bonds that include a bond counsel opinion to the effect that the
interest on the bonds is excluded from gross income for federal
tax purposes under designated conditions or is otherwise entitled
to any federal tax advantage, the Treasurer may maintain separate
accounts for the bond proceeds invested and for the investment
earnings on those proceeds, and may use or direct the use of those
proceeds or earnings to pay any rebate, penalty, or other payment
required under federal law or take any other action with respect
to the investment and use of those bond proceeds, as may be
required or desirable under federal law in order 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.

79809.  

For the purposes of carrying out this division, the
Director of Finance may authorize the withdrawal from the General
Fund of an amount or amounts 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 less any amount
borrowed pursuant to Section 79807. Any amounts withdrawn
shall be deposited in the fund. Any moneys made available under
this section shall be returned to the General Fund, with interest at
the rate earned by the moneys in the Pooled Money Investment
Account, from proceeds received from the sale of bonds for the
purpose of carrying out this division.

79810.  

All moneys deposited in the fund that are derived from
premium and accrued interest on bonds sold pursuant to this
division shall be reserved in the fund and shall be available for
transfer to the General Fund as a credit to expenditures for bond
interest, except that amounts derived from premium may be
reserved and used to pay the cost of bond issuance prior to any
transfer to the General Fund.

79811.  

Pursuant to Chapter 4 (commencing with Section
16720) of Part 3 of Division 4 of Title 2 of the Government Code,
the cost of bond issuance shall be paid out of the bond proceeds,
including premium, if any. To the extent the cost of bond issuance
is not paid from premiums received from the sale of bonds, these
costs shall be shared proportionately by each program funded
through this division by the applicable bond sale.

79812.  

The bonds issued and sold pursuant to this division
may be refunded in accordance with Article 6 (commencing with
Section 16780) of Chapter 4 of Part 3 of Division 4 of Title 2 of
the Government Code, which is a part of the State General
Obligation Bond Law. Approval by the voters of the state for the
issuance of the bonds under this division shall include approval
of the issuance of any bonds issued to refund any bonds originally
issued under this division or any previously issued refunding bonds.

79813.  

The proceeds from the sale of bonds authorized by this
division are not “proceeds of taxes” as that term is used in Article
XIII B of the California Constitution, and the disbursement of
these proceeds is not subject to the limitations imposed by that
article.

SEC. 3.  

Section 2 of Chapter 3 of the Seventh Extraordinary
Session of the Statutes of 2009, as amended by Section 1 of
Chapter 74 of the Statutes of 2012, is repealed.

SEC. 4.  

Section 2 of this act shall be submitted to the voters
at the November 4, 2014, statewide general election in accordance
with provisions of the Government Code and the Elections Code
governing the submission of a statewide measure to the voters.

SEC. 5.  

Section 2 of this act shall take effect upon the approval
by the voters of the Clean, Safe, and Reliable Drinking Water Act
of 2014, as set forth in that section at the November 4, 2014,
statewide general election.