Amended in Assembly May 1, 2014

Amended in Assembly April 22, 2014

Amended in Assembly March 25, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2686

Introduced by Assembly Members Perea, Bigelow, Gray, and Salas

(Coauthor: Assembly Member Logue)

(Coauthor: Senator Cannella)

February 21, 2014

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 supply 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, and declaring the urgency thereof, to take effect immediately.

LEGISLATIVE COUNSEL’S DIGEST

AB 2686, as amended, Perea. Clean, Safe, and Reliable Drinking Water Supply 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 Supply Act of 2014, which, if adopted by the voters, would authorize the issuance of bonds in an unspecified amount pursuant to the State General Obligation Bond Law to finance a clean, safe, and reliable drinking water supply program.

This bill would provide for the submission of the bond act to the voters at the November 4, 2014, statewide general election.

This bill would declare that it is to take effect immediately as an urgency statute.

Vote: ²⁄₃. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

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Seventh Extraordinary Session of the Statutes of 2009, is repealed.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 Supply 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 Supply 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.

(h) This division is intended to promote the coequal goals, as
defined in Section 85054, of providing a more reliable water supply
for California and protecting, restoring, and enhancing the Delta
ecosystem.

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.

 

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 Supply 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.

(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.

(k) “Fund” means the Clean, Safe, and Reliable Drinking Water
Supply 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) “Severely disadvantaged community” has the meaning set
forth in subdivision (n) of Section 116760.20 of the Health and
Safety Code.

(q) “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.

(r) “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).

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

(t) “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 grant 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 shall be integrated into the surface water ambient
monitoring program administered by the State Water Resources
Control Board. Watershed monitoring shall be integrated into the
statewide watershed program 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) Prior to 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.

(b) Prior to disbursing grants or loans, the state agency shall
conduct three public meetings to consider public comments prior
to finalizing the guidelines. The state agency shall publish the draft
solicitation and evaluation guidelines on its Internet Web site at
least 30 days before the public meetings. One meeting shall be
conducted at a location in northern California, one meeting shall
be conducted at a location in the central valley of California, and
one meeting shall be conducted at a location in southern California.
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) 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.

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

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

(e) 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.

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

(g) 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 Supply Act of 2014.

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 any entity 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 that entity.

(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 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) Any acquisitions of water supported by funds provided by
this division shall be long-term transfers or purchases of water
rights.

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 prior to 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, nonprofit organizations, public utilities, and mutual water
companies. To be eligible for funding under this division, a project
proposed by a public utility that is regulated by the Public Utilities
Commission or a mutual water company shall have a clear and
definite public purpose and shall benefit the customers of the water
system.

79715.  

The Legislature may enact legislation necessary to
implement programs funded by this division, except as otherwise
provided in Section 79770.

79716.  

(a) Unless otherwise specified, any state agency that
has the statutory authority to implement one or more of the
purposes specified in this bond may be eligible for appropriations
from the funding made available by this division.

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

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

79717.  

The proceeds of bonds issued and sold pursuant to this
division shall be deposited in the Clean, Safe, and Reliable
Drinking Water Supply 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.

 

Chapter  5. Clean, Safe, and Reliable Drinking Water

 

79720.  

The sum of one billion dollars ($1,000,000,000) shall
be available, upon appropriation by the Legislature from the fund,
for expenditures, grants, and loans for projects that improve water
quality or help provide clean, safe, and reliable 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, safe, and reliable drinking
water supplies that the community can sustain over the long term.

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

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) An agency administering grants or loans for the purposes
of this chapter 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. 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 requirement of this section. 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.  

Of the funds authorized in Section 79720, not less than
two hundred million dollars ($200,000,000) 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.

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 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, including, but not limited
to, bottled water, where necessary to protect public health.

(2) Identifying, planning, 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.

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

(c) Funds made available pursuant to this section may be used
to fund the costs of stewardship, operation, and maintenance of
funded projects.

79727.  

(a) 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 implementing agency 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 and ongoing operation and maintenance costs for
systems serving disadvantaged communities. 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
small disadvantaged community. Not more than 25 percent of a
grant may be awarded in advance of actual expenditures.

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

(c) Funds made available pursuant to this section may be used
to fund the costs of stewardship, operation, and maintenance of
funded projects.

79728.  

Of the funds authorized in Section 79720, fifty million
dollars ($50,000,000) shall be provided to California public
university systems for competitive grants to offices within the
systems for the purpose of funding applied research and education
related to improvement of water quality, increasing access to clean
water, improved water use efficiency, and training in the selection,
operation, and maintenance of water infrastructure facilities for
disadvantaged communities.

79729.  

(a) For the purposes of awarding funding under this
chapter, a local cost share of not less than 50 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 or an economically distressed area.

(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.  

(a) 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
competitive grants for multibenefit ecosystem and watershed
protection and restoration projects in accordance with statewide
priorities.

begin delete

(b) Of the funds made available by this section, the following
specified amounts shall be made available to the specified regions
:

(1) _____ million dollars ($_____) for the North Coast region.

(2) _____ million dollars ($_____) for the San Francisco Bay
Area.

(3) _____ million dollars ($_____) for the Sierra Nevada and
Cascade Range region.

(4) _____ million dollars ($ ____) for the Central Coast region.

(5) _____ million dollars ($_____) for the Central Valley region.

(6) _____ million dollars ($_____) for the Southern California
region.

end delete begin insert

(b) Of the funds made available by this section, the sum of seven
hundred fifty million dollars ($750,000,000) shall be allocated as
follows for projects that protect and improve California’s
watersheds:

end insert begin insert

(1) For the watersheds of the Los Angeles and San Gabriel
Rivers, one hundred fifteen million dollars ($115,000,000) for
multibenefit water quality, water supply, public access, and
watershed protection projects, according to the following schedule:

end insert begin insert

(A) Santa Monica Mountains Conservancy, sixty-five million
dollars ($65,000,000).

end insert begin insert

(B) San Gabriel and Lower Los Angeles Rivers and Mountains
Conservancy, forty million dollars ($40,000,000).

end insert begin insert

(C) Baldwin Hills Conservancy, ten million dollars
($10,000,000).

end insert begin insert

(2) California Tahoe Conservancy, twenty million dollars
($20,000,000).

end insert begin insert

(3) Coachella Valley Mountains Conservancy, twenty million
dollars ($20,000,000).

end insert begin insert

(4) San Diego River Conservancy, ten million dollars
($10,000,000).

end insert begin insert

(5) San Joaquin River Conservancy, twenty million dollars
($20,000,000).

end insert begin insert

(6) Sierra Nevada Conservancy, fifty million dollars
($50,000,000).

end insert begin insert

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

end insert begin insert

(8) Wildlife Conservation Board, one hundred seventy-five
million dollars ($175,000,000).

end insert begin insert

(9) Ocean Protection Council, forty million dollars
($40,000,000).

end insert

79731.  

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 begin insert , interpretation, end insert and recreational opportunities
begin insert with respect end insert 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 Division
4 of the Public Resources Code).

79732.  

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.

begin delete

79733.  

(a) Of the funds authorized in Section 79730, two
hundred fifty million dollars ($250,000,000) shall be available to
the Natural Resources Agency to support projects of a state
conservancy as provided in the conservancy’s strategic plan.

(b) In order to guide the expenditure of funds described in this
chapter, the Natural Resources Agency shall develop a statewide
natural resource protection plan to identify priorities consistent
with the purposes of this section. All expenditures by state
conservancies and state agencies of funds described in this section
shall advance the priorities set forth in the statewide natural
resource protection plan.

(c) In coordination with the Natural Resources Agency, all state
conservancies expending funds provided pursuant to subdivision
(a) shall provide biannual written reports to the Natural Resources
Agency on expenditures made and how those expenditures advance
the statewide priorities set forth in the statewide natural resource
protection plan developed pursuant to subdivision (b). The Natural
Resources Agency shall produce and make available to the public
biannual written reports on total expenditures made and progress
toward meeting statewide priorities.

(d)

end delete

begin insert

begin insert 79733. end insert   

end insert begin insert

(a) Of the funds authorized in Section 79730, one
hundred fifty million dollars ($150,000,000) shall be made
available for projects to protect and enhance an urban creek, as
defined in subdivision (e) of Section 7048, and its tributaries,
pursuant to Division 22.8 (commencing with Section 32600) of,
and Division 23 (commencing with Section 33000) of, the Public
Resources Code and Section 79508.

end insert begin insert

(b) (1)   Of the funds authorized in Section 79730, one hundred
million dollars ($100,000,000) shall be made available to the
Secretary of the Natural Resources Agency for a competitive
program to fund multibenefit watershed and urban rivers
enhancement projects in urban watersheds that increase regional
and local water self-sufficiency and that meet at least two of the
following objectives:

end insert begin insert

(A) Promote groundwater recharge and water reuse.

end insert begin insert

(B) Reduce energy consumption.

end insert begin insert

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

end insert begin insert

(D) Create or restore native habitat.

end insert begin insert

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

end insert begin insert

(2) The program under this subdivision shall be implemented
by state conservancies, the Wildlife Conservation Board, or other
entities whose jurisdiction includes urban watersheds, as
designated by the secretary. Projects funded under the program
shall be a part of a plan developed jointly by the conservancies,
the Wildlife Conservation Board, or other designated entities in
consultation with the secretary.

end insert begin insert

(c) At least 25 percent of the funds available pursuant to
subdivisions (a) and (b) shall be allocated for projects that benefit
disadvantaged communities.

end insert begin insert

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

end insert

begin insert (e) end insert  Notwithstanding Section 79711, of the funds authorized in
Section 79730, five hundred million dollars ($500,000,000) shall
be available to the Natural Resources Agency to support projects
that fulfill the obligations of the State of California in complying
with the terms of any interstate or multiparty settlement agreement.
Priority shall be given to projects that meet one or more of the
following criteria:

(1) The project is of statewide significance.

(2) The project restores natural aquatic or riparian functions, or
wetlands habitat for birds and aquatic species.

(3) The project protects or promotes the restoration of
endangered or threatened species.

(4) The project enhances the reliability of water supplies on a
regional or interregional basis.

(5) The project provides significant regional or statewide
economic benefits.

79734.  

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

 

Chapter  7. Climate Change Preparedness for Regional
Water Security and Drought Preparedness

 

79740.  

The sum of one billion five hundred million dollars
($1,500,000,000) shall be available, upon appropriation by the
Legislature from the fund, for expenditures begin insert on, end insert and competitive
grants begin delete to end delete begin insert and loans to, end insert projects that are included begin delete in, end delete begin insert in end insert and
implement an adopted integrated regional water management plan
consistent with Part 2.2 (commencing with Section 10530) of
Division 6 and respond to climate change and contribute to regional
water security as provided in this chapter.

79741.  

In order to improve regional water self-reliance security
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) Incentivize 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 consistent with Section
85021.

79742.  

(a) 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.

(b) 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 groundwater management plan requirement shall
not apply to a water replenishment district formed pursuant to
Division 18 (commencing with Section 60000) or to a local agency
that serves or has authority to manage an adjudicated groundwater
basin.

(c) For the purposes of awarding funding under this chapter, a
cost share from nonstate sources of not less than 50 percent of the
total costs of the project shall be required. The begin delete cost sharing end delete
begin insert cost-sharing end insert requirement may be waived or reduced for projects
that directly benefit a disadvantaged community or an economically
distressed area.

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

(e) For the purposes of awarding begin delete a grant end delete begin insert funding end insert under this
chapter, 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.

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

79743.  

Subject to the determination of regional priorities in
the regional water management group, eligible projects may
include, but are not limited to, projects that promote any of the
following:

(a) Water reuse and recycling.

(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.

(f) Stormwater resource management, including, but not limited
to, the following:

(1) Projects to reduce, manage, treat, or capture rainwater or
stormwater.

(2) Projects that provide multiple benefits such as water quality,
water supply, flood control, or open space.

(3) Decision support tools that evaluate the benefits and costs
of multibenefit stormwater projects.

(4) Projects to implement a stormwater resource plan developed
in accordance with Part 2.3 (commencing with Section 10560) of
Division 6.

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

(h) Water desalination projects.

(i) Decision support tools to model regional water management
strategies to account for climate change and other changes in
regional demand and supply projections.

79744.  

(a) Of the funds authorized in Section 79740, one
billion dollars ($1,000,000,000) 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 (designated as the San Diego
subregion), the Santa Ana River watershed and southern Orange
County (designated as the Santa Ana subregion), and the Los
Angeles and Ventura County watersheds (designated as the Los
Angeles subregion), and shall allocate funds to those areas in
accordance with this subdivision. The North and South Lahontan
hydrologic regions shall be treated as one area for the purpose of
allocating funds. For purposes of this subdivision, the Sacramento
River hydrologic region does not include the Delta. For purposes
of this subdivision, the Mountain Counties Overlay is not eligible
for funds from the Sacramento River hydrologic region or the San
Joaquin River hydrologic region. Multiple integrated regional
water management plans may be recognized in each of the areas
allocated funding.

(b) Funds made available by this chapter 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 twenty-eight million dollars ($128,000,000)
for the Santa Ana subregion.

(6) Eighty-seven million dollars ($87,000,000) 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.

79745.  

(a) Of the funds authorized by Section 79740, up to
two hundred fifty million dollars ($250,000,000) may be used for
direct begin delete expenditures end delete begin insert expenditures, end insert and begin insert for end insert grants begin insert and loans, end insert for
water conservation and begin delete expenditures and grants for water use end delete
begin insert water-use end insert 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 begin delete water use end delete begin insert water-use end insert 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.

(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. Notwithstanding Section 79740
and subdivision (e) of Section 79742, the projects funded pursuant
to this section are not required to be in an adopted integrated
regional water management plan or to comply with that program.

79746.  

(a) Of the funds authorized by Section 79740, the sum
of three hundred fifty million dollars ($350,000,000) shall be
available to the department for grants and expenditures for the
planning, design, and construction of local and regional conveyance
projects that support regional and interregional connectivity and
water management. Projects shall be consistent with an adopted
integrated regional water management plan and shall provide one
or more of the following benefits:

(1) Improved regional or interregional water supply and water
supply reliability.

(2) Mitigation of conditions of groundwater overdraft, saline
water intrusion, water quality degradation, or subsidence.

(3) Adaptation to the impacts of hydrologic changes.

(4) Improved water security from drought, natural disasters, or
other events that could interrupt imported water supplies.

(5) Provision of safe drinking water for disadvantaged
communities and economically distressed areas.

(b) The department shall require a cost share of not less than
50 percent of total project costs from nonstate sources. The
department may waive or reduce the cost share requirement for
projects that directly benefit a disadvantaged community or an
economically distressed area.

79747.  

(a) Of the funds authorized by Section 79740, up to
two hundred fifty million dollars ($250,000,000) may be available
for grants for multibenefit stormwater management projects.

(b) Eligible projects may include, but shall not be limited to,
green infrastructure, rainwater and stormwater capture projects,
and stormwater treatment facilities.

(c) Development of plans for stormwater projects shall address
the entire watershed and incorporate the perspectives of
communities adjacent to the affected waterways, especially
disadvantaged communities.

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 two billion two hundred fifty million
dollars ($2,250,000,000) shall be available, upon appropriation by
the Legislature from the fund, for grants and direct expenditures
to improve the sustainability of the Delta.

(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, consistent
with Section 85054.

(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 the acquisition of
water rights, 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 be administered by the
department to 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, as that part may be amended.

(2) Special flood protection projects under Chapter 2
(commencing with Section 12310) of Part 4.8 of Division 6, as
that chapter may be amended.

(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.

 

Chapter  9. Statewide Water System Operational
Improvement and Drought Preparedness

 

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) Notwithstanding Section 13340 of the Government Code,
the sum of three billion dollars ($3,000,000,000) is hereby
continuously appropriated from the fund, without regard to fiscal
years, to the commission for public benefits associated with water
storage projects that improve the operation of the state water
system, are cost effective, and provide a net improvement in
ecosystem and water quality conditions, in accordance with this
chapter. Funds authorized for, or made available to, the commission
pursuant to this chapter shall be available and expended only for
the purposes provided in this chapter, and shall not be subject to
appropriation or transfer by the Legislature or the Governor for
any other purpose.

(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) Any project constructed with funds provided by this chapter
shall be subject to Section 11590.

79761.  

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 and provide public benefits.

79762.  

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

79763.  

(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.

(2) Water quality improvements in the Delta, or in other river
systems, that provide significant public trust 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.

(4) Emergency response, including, but not limited to, securing
emergency water supplies and flows for dilution and salinity
repulsion following a natural disaster or act of terrorism.

(5) Recreational purposes, including, but not limited to, those
recreational pursuits generally associated with the outdoors.

(b) Funds shall not be expended pursuant to this chapter for the
costs of environmental mitigation measures or compliance
obligations except for those associated with providing the public
benefits as described in this section.

79764.  

In consultation with the Department of Fish and
Wildlife, the State Water Resources Control Board, and the
department, the commission shall develop and adopt, by regulation,
methods for quantification and management of public benefits
described in Section 79763 by December 15, 2016. 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 Water Resources
Control Board.

79765.  

(a) Except as provided in subdivision (c), no funds
allocated pursuant to this chapter may be allocated for a project
before December 15, 2016, and until the commission approves the
project based on the commission’s determination that all of the
following have occurred:

(1) The commission has adopted the regulations specified in
Section 79764 and specifically quantified and made public the cost
of the public benefits associated with the project.

(2) The project applicant has entered into a contract with each
party that will derive benefits, other than public benefits, as defined
in Section 79763, 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 project applicant has entered into a contract with each
public agency identified in Section 79764 that administers the
public benefits, after that agency makes a finding that the public
benefits of the project for which that agency is responsible meet
all the requirements of this chapter, to ensure that the public
contribution of funds pursuant to this chapter achieves the public
benefits identified for the project.

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

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

(A) Feasibility studies have been completed.

(B) The commission has found and determined that the project
is feasible, is consistent with all applicable laws and regulations,
and will advance the long-term objectives of restoring ecological
health and improving water management for beneficial uses of the
Delta.

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

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

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

79766.  

(a) The public benefit cost share of a project funded
pursuant to this chapter, other than a project described in
subdivision (c) of Section 79761, shall not exceed 50 percent of
the total costs of any project funded under this chapter.

(b) No project may be funded unless it provides ecosystem
improvements as described in paragraph (1) of subdivision (a) of
Section 79763 that are at least 50 percent of total public benefits
of the project funded under this chapter.

79767.  

(a) A project is not eligible for funding under this
chapter unless, by January 1, 2022, all of the following conditions
are met:

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

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

(3) The director receives commitments for not less than 75
percent of the nonpublic benefit cost share of the project.

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

79768.  

Surface storage projects funded pursuant to this chapter
and described in subdivision (a) of Section 79761 may be made a
unit of the Central Valley Project as provided in Section 11290
and may be financed, acquired, constructed, operated, and
maintained pursuant to Part 3 (commencing with Section 11100)
of Division 6.

79769.  

(a) The funds allocated for the design, acquisition, and
construction of surface storage projects identified in the CALFED
Bay-Delta Record of Decision, dated August 28, 2000, pursuant
to this chapter may be provided for those purposes to local joint
powers authorities formed by irrigation districts and other local
water districts and local governments within the applicable
hydrologic region to design, acquire, and construct those projects.

(b) The joint powers authorities described in subdivision (a)
may include in their membership governmental partners that are
not located within their respective hydrologic regions in financing
the surface storage projects, including, as appropriate, cost share
participation or equity participation. Notwithstanding Section 6525
of the Government Code, the joint powers agencies described in
subdivision (a) shall not include in their membership any for-profit
corporation or any mutual water company whose shareholders and
members include a for-profit corporation or any other private
entity. The department shall be an ex officio member of each joint
powers authority subject to this section, but the department shall
not control the governance, management, or operation of the
surface water storage projects.

(c) A joint powers authority subject to this section shall own,
govern, manage, and operate a surface water storage project,
subject to the requirement that the ownership, governance,
management, and operation of the surface water storage project
shall advance the purposes set forth in this chapter.

79770.  

(a) In approving the Clean, Safe, and Reliable Drinking
Water Supply Act of 2014, the people were informed and hereby
declare that the provisions of this chapter are necessary, integral,
and essential to meeting the single object or work of the Clean,
Safe, and Reliable Drinking Water Supply Act of 2014. As such,
any amendment of the provisions of this chapter by the Legislature
without voter approval would frustrate the scheme and design that
induced voter approval of this act. The people therefore find and
declare that any amendment of the provisions of this chapter by
the Legislature shall require an affirmative vote of two-thirds of
the membership in each house of the Legislature and voter
approval.

(b) This section shall not govern or be used as authority for
determining whether the amendment of any other provision of this
act not contained in this chapter would constitute a substantial
change in the scheme and design of this act requiring voter
approval.

 

Chapter  10. Water Recycling

 

79780.  

The sum of ____ dollars ($____) shall be available,
upon appropriation by the Legislature from the fund, for grants begin insert or
loans end insert 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,
commercial, agricultural, and industrial end-user retrofit projects
to allow use of recycled water.

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

(e) Groundwater recharge infrastructure related to recycled
water.

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

79781.  

At least a 50 percent local cost share shall be required
for projects funded pursuant to this chapter. That cost share may
be suspended or reduced for disadvantaged communities and
economically distressed areas.

79782.  

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

(a) Water supply reliability improvement.

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

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

(d) Cost-effectiveness.

(e) Energy efficiency and greenhouse gas emission impacts.

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

79783.  

For purposes of this chapter, 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.

 

Chapter  11. Groundwater Sustainability

 

79790.  

Prevention and cleanup of groundwater contamination
are critical components of successful groundwater management.
Groundwater quality becomes especially important as water
providers do the following:

(a) Evaluate investments in groundwater recharge with surface
water, stormwater, recycled water, and other conjunctive use
projects that augment local groundwater supplies to improve
regional water self-reliance.

(b) Adapt to changing hydrologic conditions brought on by
climate change.

(c) Consider developing groundwater basins to provide much
needed local storage options to accommodate hydrologic and
regulatory variability in the state’s water delivery system.

(d) Evaluate investments in groundwater recovery projects.

79791.  

(a) The sum of begin delete ____ dollars ($____) end delete begin insert one billion dollars
($1,000,000,000) end insert shall be available, upon appropriation by the
Legislature from the fund, for expenditures, grants, and loans for
projects to prevent or begin delete cleanup end delete begin insert clean up end insert the contamination of
groundwater that serves or has served as a source of drinking water.
Funds appropriated pursuant to this section shall be available to
the implementing agency for projects necessary to protect public
health by preventing or reducing the contamination of groundwater
that serves or has served as a major source of drinking water for
a community.

(b) Projects shall be prioritized based upon the following criteria:

(1) The threat posed by groundwater contamination to the
affected community’s overall drinking water supplies, including
an urgent need for treatment of alternative supplies or increased
water imports if groundwater is not available due to contamination.

(2) The potential for groundwater contamination to spread and
impair drinking water supply and water storage for nearby
population areas.

(3) The potential of the project, if fully implemented, to enhance
local water supply reliability.

(4) The potential of the project to maximize opportunities to
recharge vulnerable, high-use groundwater basins and optimize
groundwater supplies.

(5) The project addresses contamination at a site for which the
courts or the appropriate regulatory authority has not yet identified
responsible parties, or where the identified responsible parties are
unwilling or unable to pay for the total cost of cleanup.

(c) The Legislature, by statute, shall establish both of the
following:

(1) A requirement that the grantee repay grant funds in the event
of cost recovery from the parties responsible for the groundwater
contamination.

(2) A requirement that the grantee make reasonable efforts to
attempt to recover the costs of cleanup from the parties responsible
for the contamination, except that a grantee shall not be required
to seek cost recovery related to the costs of response actions
apportioned to responsible parties who are insolvent or cannot be
identified or located or when a requirement to seek cost recovery
would impose a financial hardship on the grantee.

79792.  

Of the funds authorized by Section 79791, up to ____
million dollars ($____) shall be available for grants for treatment
and remediation activities that prevent or reduce the contamination
of groundwater that serves as a source of drinking water.

79793.  

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.

79794.  

(a) A project that receives funding pursuant to 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.

(b) For the purposes of awarding funding under this chapter, a
local cost share of not less than 50 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 or an economically distressed area.

(c) An agency administering grants or loans for the purposes of
this chapter shall assess the capacity of a community to pay for
the operation and maintenance of the facility to be funded.

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

(e) 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.

 

Chapter  12. Fiscal Provisions

 

79800.  

(a) Bonds in the total amount of ____ dollars ($____),
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 Supply
Finance Committee is hereby created. For purposes of this division,
the Clean, Safe, and Reliable Drinking Water Supply 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
Supply Act of 2014, as set forth in that section at the November
4, 2014, statewide general election.

SEC. 6.  

This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:

In order to fund begin insert a end insert clean, safe, and reliable drinking water supply
begin insert program end insert at the earliest possible date, it is necessary that this act
take effect immediately.