Amended in Senate February 12, 2014

Senate Bill No. 848

Introduced by Senator Wolk

(Coauthors: Senators DeSaulnier, Hancock, and Steinberg)

(Coauthor: Assembly Member Bonilla)

January 9, 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 safe drinking water, water quality, and begin delete flood protection end delete begin insert water supply end insert 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

SB 848, as amended, Wolk. Safe Drinking Water, Water Quality, and begin delete Flood Protection end delete begin insert Water Supply end insert Act of 2014.

(1) Existing law creates the Safe, Clean, and Reliable Drinking Water Supply Act of 2012, which, if approved by the voters, would authorize the issuance of bonds in the amount of $11,140,000,000 pursuant to the State General Obligation Bond Law to finance a safe drinking water and water supply reliability program. 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 Safe Drinking Water, Water Quality, and begin delete Flood Protection end delete begin insert Water Supply end insert Act of 2014, which, if adopted by the voters, would authorize the issuance of bonds in the amount of begin delete $6,475,000,000 end delete begin insert $6,825,000,000 end insert pursuant to the State General Obligation Bond Law to finance a safe drinking water, water quality, and begin delete flood protection end delete begin insert water supply end insert program.

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

begin insert

(3) Existing law, the Water Conservation and Water Quality Bond Law of 1986, approved by the voters at the June 3, 1986, statewide primary election, authorizes the issuance of general obligation bonds in the amount of $150,000,000 for the Department of Water Resources to make prescribed loans to local agencies for the purposes of financing a water conservation and water quality program. Existing law, the Water Conservation Bond Law of 1988, approved by the voters at the November 8, 1988, statewide general election, authorizes the issuance of general obligation bonds in the amount of $60,000,000 for the Department of Water Resources to make prescribed loans to local agencies for the purposes of financing a water conservation program. Existing law, the Safe, Clean, Reliable Water Supply Act, a bond act approved by the voters as Proposition 204 at the November 5, 1996, statewide general election, authorizes the issuance of general obligation bonds in the amount of $995,000,000 for grants, loans, and direct expenditures for the purposes of financing a safe, clean, reliable water supply program. Existing law, the Costa-Machado Water Act of 2000, a bond act approved by the voters as Proposition 13 at the March 7, 2000, statewide primary election, authorizes the issuance of general obligation bonds in the amount of $1,970,000,000 for grants, loans, and direct expenditures for the purposes of financing a safe drinking water, clean water, watershed protection, and flood protection program.

end insert begin insert

This bill would authorize the Legislature to appropriate funds from the above-described bond acts for grants and direct expenditures to accomplish prescribed purposes relating to water supply enhancement as described in the Safe Drinking Water, Water Quality, and Water Supply Act of 2014. This bill would provide for the submission of these provisions to the voters at the November 4, 2014, statewide general election.

end insert begin delete

(3)

end delete

begin insert (4) end insert   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:

begin insert

begin insert SECTION 1. end insert   

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.

end insert

begin insert

begin insert SEC. 2. end insert   

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

 

Division  begin insert 26.7. end insert   The Safe Drinking Water, Water
Quality, and Water Supply Act of 2014

 

Chapter   begin insert 1. end insert Short Title

 

begin insert 79700. end insert   

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

 

Chapter   begin insert 2. end insert Findings and Declarations

 

begin insert 79705. end insert   

In placing this measure before the voters, the
Legislature finds and declares that all of the following are in the
public’s interest:

(a) Ensuring that safe drinking water is available to all
Californians.

(b) Protecting water quality and cleaning up contaminated
water sources.

(c) Increasing water supply and water supply reliability.

(d) Assisting each region of the state in improving local water
supply reliability and water quality.

(e) Resolving water-related conflicts, improving local and
regional water self-sufficiency, and reducing reliance on imported
water.

(f) Protecting the rivers, lakes, and streams of the state from
pollution, loss of water quality, and destruction of fish and wildlife
habitat.

begin insert 79706. end insert   

The Legislature further finds and declares that to
achieve the public interest objectives under Section 79705, it is
necessary to invest state resources in the following:

(a) Safe drinking water projects, especially projects addressing
the needs of disadvantaged communities, and financing urgent
public health emergency actions to ensure safe drinking water
supplies.

(b) Wastewater treatment projects to keep contaminants out of
rivers, lakes, streams, and coastal waters.

(c) Projects to enhance water supplies and increase water supply
reliability through the following:

(1) Urban and agricultural water conservation and water use
efficiency projects.

(2) Groundwater cleanup or pollution prevention in sources of
drinking water.

(3) Water recycling projects.

(4) Projects to desalinate brackish and ocean water.

(5) Stormwater capture and reuse.

(d) Projects that improve Delta water quality, restore
ecosystems, protect fish populations, and increase community
sustainability.

(e) Projects that reduce the risk of levee failure and flood in the
Delta.

(f) Projects to protect and restore watersheds and urban rivers,
and address water quality deficiencies at state parks.

(g) Projects to develop additional water storage, both surface
and groundwater storage, through the following:

(1) New surface storage projects.

(2) Groundwater storage projects and groundwater
contamination prevention or remediation projects that create
additional groundwater storage capacity.

(3) Projects that restore the capacity of reservoirs currently
impaired by sediment buildup, seismic vulnerability, or other
impairment.

 

Chapter   begin insert 3. end insert Definitions

 

begin insert 79710. end insert   

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

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

(b) “Committee” means the Safe Drinking Water, Water Quality,
and Water Supply Finance Committee created by Section 79824.

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

(d) “Delta counties” means Contra Costa, Sacramento, San
Joaquin, Solano, and Yolo counties.

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

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

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

(h) “Fund” means the Safe Drinking Water, Water Quality, and
Water Supply Fund of 2014 created by Section 79770.

(i) “Integrated regional water management plan” means a
comprehensive plan for a defined geographic area that meets the
requirements of Part 2.2 (commencing with Section 10530) of
Division 6, as that part may be amended.

(j) “Local match” and “matching funds” mean funds made
available by nonstate sources, which may include, but are not
limited to, donated services from nonstate sources.

(k) “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.

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

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

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

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

(p) “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).

 

Chapter   begin insert 4. end insert Safe Drinking Water and Water Quality
Projects

 

begin insert 79720. end insert   

(a) It is the intent of the Legislature that this chapter
provide funds to address the most critical water needs of the state,
including the provision of safe drinking water to all Californians
by improving safe drinking water supply reliability and financing
urgent public health emergency actions to ensure safe drinking
water supplies, and implementing wastewater treatment projects
to keep contaminants out of rivers, lakes, streams, groundwater,
and coastal waters.

(b) The sum of nine hundred million dollars ($900,000,000)
shall be available for the purposes of this chapter.

begin insert 79722. end insert   

(a) From the funds described in Section 79720, four
hundred million dollars ($400,000,000) shall be available to the
state board for grants and loans for public water system
infrastructure improvements and related actions to meet safe
drinking water standards and ensure affordable drinking water.
Priority shall be given to projects that provide treatment for
contamination or access to alternative drinking water sources for
small water systems or state small water systems serving
disadvantaged communities whose drinking water source is
impaired by chemical and nitrate contaminants and other health
hazards identified by the state board. Eligible recipients either
operate small water systems or state small water systems in
disadvantaged communities. 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. Special consideration will be
given to projects that provide shared solutions for multiple
communities, at least one of which is a disadvantaged community
served by a small or state small water system or private well and
that lacks safe, affordable drinking water. Construction grants
shall be limited to five million dollars ($5,000,000) per project,
except that the state board may set a limit of not more than twenty
million dollars ($20,000,000) for projects that provide regional
or shared solutions among multiple entities, at least one of which
is a small disadvantaged community. Not more than 25 percent of
a grant may be awarded in advance of actual expenditures.

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

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

(d) Of the funds available pursuant to subdivision (c), the state
board may expend up to ten million dollars ($10,000,000) to
finance development and demonstration of new technologies and
related facilities for water contaminant removal and treatment
appropriate for use by small water systems and state small water
systems.

begin insert 79724. end insert   

From the funds described in Section 79720, one hundred
million dollars ($100,000,000) shall be available to the state board
for grants and direct expenditures to finance urgent public health
emergency actions to ensure that safe drinking water supplies are
available to all Californians. Eligible actions include, but are not
limited to, the following:

(a) Providing interim water supplies, including, but not limited
to, bottled water, where necessary to protect public health.

(b) Improvements in existing water systems, including, but not
limited to, planning, design, and construction of improvements
necessary to resume delivery of safe drinking water.

(c) Establishing connections to an adjacent water system.

(d) Design, purchase, installation, and operation and
maintenance of interim water treatment equipment and systems.

begin insert 79726. end insert   

(a) From the funds described in Section 79720, four
hundred million dollars ($400,000,000) shall be available to the
state board for deposit in the Small Communities Grant Subaccount
for grants for wastewater treatment projects to keep contaminants
out of rivers, lakes, streams, groundwater, and coastal waters,
and for other projects to protect the public and fish and wildlife
from contaminated sources of water. Priority shall be given to
projects that serve disadvantaged communities and severely
disadvantaged communities, and to projects that address public
health hazards. Special consideration shall be given to small
communities with limited financial resources. Projects shall
include, but not be limited to, projects that identify, plan, design,
and implement regional mechanisms to consolidate wastewater
systems or provide affordable treatment technologies.

(b) From the funds available pursuant to subdivision (a), twenty
million dollars ($20,000,000) shall be allocated to the state board
for deposit into the Private Well and Septic Systems Investment
Fund, which is hereby created in the State Treasury. Moneys in
the fund shall be available, upon appropriation by the Legislature,
for the purpose of providing grants and loans to private well and
septic owners to protect drinking water sources and ensure safe
and affordable drinking water for all Californians.

 

Chapter   begin insert 5. end insert Water Supply Enhancement Projects

 

begin insert 79730. end insert   

(a) It is the intent of the Legislature that this chapter
provide funds to enhance water supplies and increase water supply
reliability.

(b) The sum of two billion dollars ($2,000,000,000) shall be
available for the purposes of this chapter.

begin insert 79731. end insert   

(a) From the funds described in Section 79730, one
billion five hundred million dollars ($1,500,000,000) shall be
available to the department for competitive grants for projects
that develop, improve, or implement an adopted integrated regional
water management plan consistent with Part 2.2 (commencing
with Section 10530) of Division 6, as that part may be amended,
and improve the quality or supply of safe drinking water, reduce
the amount of water imported to the region, or address any of the
following other critical water supply reliability issues:

(1) Groundwater clean up or pollution prevention in sources
of drinking water.

(2) Advanced water treatment technology projects to remove
contaminants from drinking water, water recycling, and related
projects, such as distribution or groundwater recharge
infrastructure.

(3) Urban and agricultural water conservation and water use
efficiency projects.

(4) Water recycling projects.

(5) The repair or replacement of aging water management
infrastructure in disadvantaged communities.

(6) Other integrated water infrastructure projects that address
one or more water management activities and improve the
reliability or quality of regional water supplies.

(b) Projects funded pursuant to this section shall require a local
match of not less than 25 percent of project costs, except the
department may suspend or reduce cost share requirements for
projects serving disadvantaged communities or that result in a
direct reduction in water imported from the Delta.

(c) To be eligible for funding under this section, a region shall
comply with the following requirements:

(1) Have an adopted integrated regional water management
plan.

(2) Each urban and agricultural water supplier that would
benefit from a project shall adopt and submit an urban or
agricultural water management plan in accordance with the Urban
Water Management Planning Act (Part 2.6 (commencing with
Section 10610) of Division 6) or the Agricultural Water
Management Planning Act (Part 2.8 (commencing with Section
10800) of Division 6). Urban or agricultural water management
plans shall be certified by the department as meeting the
requirements of the Urban Water Management Planning Act or
the Agricultural Water Management Planning Act, and Sections
10608.56 and 10631.5, as those provisions may be amended.

(3) Each local agency whose service area includes a
groundwater basin or subbasin that would benefit from a
groundwater management project shall adopt and submit a
groundwater management plan in accordance with Part 2.75
(commencing with Section 10750) of Division 6. Groundwater
management plans shall be certified by the department as meeting
the requirements of Part 2.75 (commencing with Section 10750)
of Division 6, as that part may be amended.

(4) (A) Have a water budget that describes local and imported
water supplies and uses in sufficient detail to inform long-term
efforts towards sustainable water management, and, where
applicable, include a description of any measures anticipated to
reduce the amount of water imported to the region in the future.

(B) The department shall develop guidelines for compliance
with this paragraph.

(5) Where applicable, an integrated water management plan
shall be consistent with and implement Section 85021.

(d) Where applicable, funding pursuant to this section shall be
made available to water agencies to assist in directly reducing the
amount of water imported from the Delta.

begin insert 79732. end insert   

The California Water Commission shall review the
implementation of Section 79731 and shall certify that requirements
for grant eligibility pursuant to that section are met prior to the
department making final grant awards.

begin insert 79733. end insert   

Of the funds available pursuant to Section 79731, one
billion four hundred million dollars ($1,400,000,000) shall be
allocated to hydrologic regions as identified in the California
Water Plan and listed below. For the South Coast Region, the
department shall establish three subregions that reflect the San
Diego County watersheds, the Santa Ana River watershed, and
the Los Angeles-Ventura County watersheds respectively, and
allocate funds to those subregions. The North and South Lahontan
regions shall be treated as one region for the purpose of allocating
funds, but the department may require separate regional plans.
Funds available pursuant to this section shall be allocated in
accordance with the following schedule:

(a) North Coast: $65,000,000.

(b) San Francisco Bay: $195,000,000.

(c) Central Coast: $85,000,000.

(d) Los Angeles subregion: $284,000,000.

(e) Santa Ana subregion: $174,000,000.

(f) San Diego subregion: $138,000,000.

(g) Sacramento River: $118,000,000.

(h) San Joaquin River: $98,000,000.

(i) Tulare/Kern (Tulare Lake): $102,000,000.

(j) North/South Lahontan: $74,000,000.

(k) Colorado River Basin: $67,000,000.

begin insert 79734. end insert   

(a) From the funds described in Section 79731, one
hundred million dollars ($100,000,000) shall be available for
grants for projects that significantly advance the application and
effectiveness of innovative integrated regional water management
strategies, including, but not limited to, the following:

(1) Tools to model future regional climate change impacts.

(2) Groundwater management plans and projects that further
sustainable groundwater management.

(3) Other projects determined by the department to advance
innovative strategies for the integration of water management.

(b) The department shall give priority to projects that address
groundwater overdraft and related impacts, including, but not
limited to, subsidence.

begin insert 79735. end insert   

(a) From the funds described in Section 79730, five
hundred million dollars ($500,000,000) shall be available to the
state board for competitive grants 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, as that part may be amended, 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, as
those parts may be amended.

(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, as that part may be amended.

(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.

 

Chapter   begin insert 6. end insert Delta

 

begin insert 79740. end insert   

(a) It is the intent of the Legislature that this chapter
provide funds to help implement the following:

(1) Projects to protect, restore, and enhance the Delta ecosystem
in a manner that protects and enhances the unique cultural,
recreational, natural resource, and agricultural values of the Delta
as an evolving place.

(2) Projects to protect the integrity of Delta levees to safeguard
the ability to move water through the Delta while simultaneously
protecting and enhancing the unique cultural, recreational, natural
resource, and agricultural values of the Delta as an evolving place.

(b) The sum of one billion two hundred million dollars
($1,200,000,000) shall be available for the purposes of this
chapter.

begin insert 79742. end insert   

(a) From the funds described in Section 79740, eight
hundred million dollars ($800,000,000) shall be available to the
Delta Conservancy for water quality, ecosystem restoration, fish
protection facilities, and community sustainability projects that
benefit the Delta, including, but not limited to, the following:

(1) Projects to improve water quality facilities or projects that
contribute to improvements in water quality in the Delta, including
projects in Delta counties that provide multiple public benefits
and improve drinking or agricultural water quality or water
supplies.

(2) Habitat restoration, conservation, and enhancement projects
to improve the condition of special status, at risk, endangered, or
threatened species in the Delta and the Delta counties, including
projects to eradicate invasive species, and projects that support
the beneficial reuse of dredged material for habitat restoration
and levee improvements.

(3) Projects to assist in preserving economically viable and
sustainable agriculture and other economic activities in the Delta,
including local infrastructure projects and projects to mitigate the
economic and community impacts of any conversion of agricultural
land to habitat funded by this section.

(4) Multibenefit recycled water projects that improve
groundwater management and Delta tributary ecosystems.

(5) Scientific studies and assessments that support the Delta
Science Program as described in Section 85280 or projects
authorized under this section.

(b) Of the funds available pursuant to subdivision (a), not less
than five hundred million dollars ($500,000,000) shall be made
available for purposes of paragraphs (1) and (2) of subdivision
(a).

begin insert 79744. end insert   

From the funds described in Section 79740, four
hundred million dollars ($400,000,000) shall be available to reduce
the risk of levee failure and flood in the Delta for any of the
following:

(a) 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.

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

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

(d) Emergency response and repair projects.

 

Chapter   begin insert 7. end insert Watershed and Ecosystem Improvement

 

begin insert 79750. end insert   

(a) It is the intent of the Legislature that this chapter
provide funds to protect and restore watersheds and urban rivers,
and address water quality deficiencies at state parks.

(b) The sum of one billion seven hundred million dollars
($1,700,000,000) shall be available for the purposes of this
chapter.

begin insert 79752. end insert   

From the funds described in Section 79750, the sum of
five hundred million dollars ($500,000,000) shall be available for
water quality, river, and watershed protection and restoration
projects of statewide importance outside of the Delta. Funds
provided by this section shall be allocated according to the
following schedule:

(a) Two hundred fifty million dollars ($250,000,000) to
implement the Klamath Hydroelectric Settlement Agreement. Up
to fifty million dollars ($50,000,000) of the funds available
pursuant to this subdivision may be made available for restoration
projects in California pursuant to the Klamath Basin Restoration
Agreement if all of the funds available pursuant to this subdivision
are not needed for dam removal projects.

(b) One hundred million dollars ($100,000,000) for projects
that help fulfill state obligations under the Quantification
Settlement Agreement, as defined in subdivision (a) of Section 1
of Chapter 617 of the Statutes of 2002.

(c) One hundred million dollars ($100,000,000) for projects
that help fulfill state obligations under the San Joaquin River
Restoration Settlement, as described in Part I of Subtitle A of Title
X of Public Law 111-11.

(d) Fifty million dollars ($50,000,000) for projects that help
fulfill state obligations under the Tahoe Regional Planning
Compact pursuant to Section 66800 of the Government Code.
Funds provided by this subdivision shall be approved pursuant to
Title 7.42 (commencing with Section 66905) of the Government
Code, as those provisions may be amended.

begin insert 79754. end insert   

From the funds described in Section 79750, the sum of
eight hundred seventy-five million dollars ($875,000,000) shall
be available for projects that protect and improve California’s
watersheds, wetlands, forests, and floodplains.

(a) Funds available pursuant to this section shall be allocated
as follows:

(1) Baldwin Hills Conservancy: $10,000,000.

(2) California Tahoe Conservancy: $30,000,000.

(3) Coachella Valley Mountains Conservancy: $20,000,000.

(4) San Diego River Conservancy: $10,000,000.

(5) San Gabriel and Lower Los Angeles Rivers and Mountains
Conservancy: $40,000,000.

(6) San Joaquin River Conservancy: $20,000,000.

(7) Santa Monica Mountains Conservancy: $65,000,000.

(8) Sierra Nevada Conservancy: $65,000,000.

(9) State Coastal Conservancy: $350,000,000.

(10) Wildlife Conservation Board: $215,000,000.

(11) California Ocean Protection Council: $50,000,000.

(b) Of the funds allocated to the State Coastal Conservancy
pursuant to paragraph (9) of subdivision (a), one hundred
twenty-five million dollars ($125,000,000) are available as follows:

(1) Fifty million dollars ($50,000,000) shall be available for
projects that help restore coastal salmonid populations.

(2) Seventy-five million dollars ($75,000,000) 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.

begin insert 79755. end insert   

(a) From the funds described in Section 79750, two
hundred fifty million dollars ($250,000,000) shall be available to
the secretary for a competitive program to fund multibenefit
watershed and urban rivers enhancement projects in urban
watersheds, including watersheds that drain to 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.

(b) The program described in subdivision (a) 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.

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

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

begin insert 79756. end insert   

From the funds described in Section 79750, twenty
million dollars ($20,000,000) shall be available to the Department
of Parks and Recreation to address public health deficiencies in
drinking water and wastewater quality at state parks.

begin insert 79757. end insert   

(a) From the funds described in Section 79750, thirty
million dollars ($30,000,000) shall be available to the state board
to fund watershed activities by resource conservation districts.

(b) To be eligible for the funding available pursuant to this
section, the board of a resource conservation district shall be
appointed by the local county board of supervisors.

begin insert 79758. end insert   

From the funds described in Section 79750, twenty-five
million dollars ($25,000,000) shall be available to the state board
for competitive grants for special districts and nonprofit
organizations for projects that reduce or manage runoff from
agricultural lands for the benefit of surface and groundwater
quality.

 

Chapter   begin insert 8. end insert Water Storage Projects

 

begin insert 79760. end insert   

(a) It is the intent of the Legislature that this chapter
provide funds to expand the existing capacity to store water in the
state.

(b) The sum of one billion twenty-five million dollars
($1,025,000,000) shall be available for the purposes of this
chapter.

begin insert 79761. end insert   

From the funds described in Section 79760, one billion
dollars ($1,000,000,000) shall be available to the commission for
water storage projects that meet the requirements of this section,
including all of the following:

(a) Projects shall be selected by the commission through a
competitive public process that ranks projects based on the
expected public benefits received for public investment.

(b) Eligible projects consist only of the following:

(1) Surface storage projects identified in the CALFED Bay-Delta
Programmatic Record of Decision, dated August 28, 2000, except
that projects at Lake Shasta shall not be eligible.

(2) Groundwater storage projects and groundwater
contamination prevention or remediation projects that create
additional groundwater storage capacity.

(3) Conjunctive use and reservoir reoperation projects including
associated infrastructure.

(4) Projects that restore the capacity of reservoirs currently
impaired by sediment buildup, seismic vulnerability, or other
impairment.

(5) Projects that result in a permanent reduction of water
exported from the Delta and a transfer of the equivalent water
right to instream flow pursuant to Section 1707. Priority shall be
given to projects that also result in the permanent elimination of
irrigation runoff contributing to salinity in the San Joaquin Valley.

(6) Recycled water storage facilities.

(c) A project within the Delta watershed shall not be funded
unless it provides measurable improvements to the Delta
ecosystem.

(d) Funds allocated pursuant to this section may be expended
solely for the following public benefits:

(1) Ecosystem improvements, including, but not limited to,
changing timing of diversions, improvement in flow conditions,
temperature, or other benefits that contribute to restoration of
aquatic ecosystems and native fish and wildlife.

(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 benefits.

(e) The commission, in consultation with the Department of
Fish and Wildlife, the state board, and the department, shall
develop and adopt, by regulation, methods for quantification and
management of public benefits. The regulations shall include
priorities and relative environmental value of ecosystem benefits
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.

(f) 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 subdivision (d).

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

begin insert 79762. end insert   

Funds available pursuant to Section 79761 shall not
be allocated to a project until the commission approves the project
based on the following determinations:

(a) The commission has adopted the regulations specified in
Section 79761 and specifically quantified and made public the cost
of the public benefits associated with the project.

(b) The department has entered into a contract with each party
that will derive benefits, other than public benefits, 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.

(c) The department has entered into a contract with the
Department of Fish and Wildlife and the state board, after those
agencies have made 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 public contributions of funds pursuant
to this chapter achieve the public benefits identified for the project.

(d) 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 section.

(e) All of the following conditions are met:

(1) Feasibility studies have been completed.

(2) 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, including the beneficial
uses of the Delta.

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

(f) The commission shall submit to the fiscal committees and
the appropriate policy committees of the Legislature its findings
for each criteria identified in this section for any project funded
pursuant to this chapter.

begin insert 79764. end insert   

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

begin insert 79766. end insert   

From the funds described in Section 79760, twenty-five
million dollars ($25,000,000) shall be 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 Programmatic Record of Decision, dated August 28,
2000.

 

Chapter   begin insert 9. end insert General Provisions

 

begin insert 79770. end insert   

The proceeds of bonds issued and sold pursuant to this
division shall be deposited in the Safe Drinking Water, Water
Quality, and Water Supply Fund of 2014, which is hereby created
in the State Treasury. Moneys in the fund shall be available, upon
appropriation by the Legislature, in the manner and for the
purposes set forth in this division.

begin insert 79772. end insert   

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

begin insert 79774. end insert   

Up to 10 percent of funds allocated for each program
funded by this division may be used to finance 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 board.

begin insert 79776. end insert   

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 6
(commencing with Section 79760).

begin insert 79778. end insert   

(a) Prior to disbursing grants pursuant to this division,
each state agency that is required to administer a competitive
grant program under this division shall develop project solicitation
and evaluation guidelines. The guidelines may include a limitation
on the dollar amount of grants to be awarded.

(b) Prior to disbursing grants, 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.

(c) Projects funded with proceeds from this division shall
promote state planning priorities consistent with the provisions
of Section 65041.1 of the Government Code and sustainable
communities strategies consistent with the provisions of
subparagraph (B) of paragraph (2) of subdivision (b) of Section
65080 of the Government Code.

(d) To the extent feasible, in implementing Section 79742, the
Delta Conservancy shall seek to achieve wildlife conservation
objectives through projects on public lands or voluntary projects
on private lands. Funds available pursuant to Section 79742 may
be used, in consultation with the Department of Fish and Wildlife,
for payments to landowners for the creation of measurable habitat
improvements or other improvements to the condition of
endangered or threatened species. The Delta Conservancy may
develop and implement a competitive habitat credit exchange
mechanism in order to maximize voluntary landowner participation
in projects that provide measurable habitat or species
improvements in the Delta. These funds shall not be used to
subsidize or decrease the mitigation obligations of any party.

(e) In implementing Section 79742, the Delta Conservancy shall
coordinate, cooperate, and consult with the city or county in which
a grant is proposed to be expended or an interest in real property
is proposed to be acquired and with the Delta Protection
Commission. Acquisitions pursuant to Section 79742 shall be from
willing sellers only.

(f) In implementing Section 79742, the Delta Conservancy shall
require grantees to demonstrate how local economic impacts,
including impacts related to the loss of agricultural lands, will be
mitigated.

(g) Funds provided by this division shall not be used to acquire
land via eminent domain. Funds from this division may be used to
acquire property from willing sellers.

(h) Restoration and ecosystem protection projects funded by
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.

(i) It is the intent of the Legislature that California’s working
agricultural landscapes be preserved wherever possible. To the
extent feasible, watershed objectives included in this division
should be achieved through use of conservation easements and
voluntary landowner participation, including, but not limited to,
the use of easements pursuant to Division 10.4 (commencing with
Section 10330) and Division 10.2 (commencing with Section
10200) of the Public Resources Code and voluntary habitat credit
exchange mechanisms.

begin insert 79780. end insert   

It is the intent of the people that:

(a) The investment of public funds pursuant to this division
result in public benefits.

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

begin insert 79782. end insert   

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

begin insert 79784. end insert   

(a) Funds provided by this division shall not be used
to support or pay for the costs of environmental mitigation
measures or compliance obligations of any party 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 permanent
dedication of water approved in accordance with Section 1707
where the state board specifies that the water is in addition to
water that is required for regulatory requirements as provided in
subdivision (c) of Section 1707. The requirement that a dedication
of water be permanent shall not preclude the expenditure of funds
provided by this division for the initiation of the dedication as a
short-term or temporary urgency change, that is approved in
accordance with Section 1707 and either Chapter 6.6 (commencing
with Section 1435) of, or Chapter 10.5 (commencing with Section
1725) of, Part 2 of Division 2, during the period required to
prepare any environmental documentation and for approval of
permanent dedication.

begin insert 79786. end insert   

Funds provided by this division shall not be expended
to pay costs associated with design, construction, operation,
maintenance, or mitigation of new Delta conveyance facilities.

begin insert 79788. end insert   

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

begin insert 79790. end insert   

Eligible applicants under this division are public
agencies, nonprofit organizations, public utilities, mutual water
companies, and Indian tribes having a federally recognized
governing body carrying out substantial governmental duties in,
and powers over, any area. 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.

begin insert 79792. end insert   

(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 otherwise 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 limits or otherwise affects the
application of Chapter 2 (commencing with Section 85320) of Part
4 of Division 35.

(f) 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 available pursuant to this division shall not be available
for any project that could have an adverse effect on the free flowing
condition of a wild and scenic river or any other river afforded
protections pursuant to the California Wild and Scenic Rivers Act.

 

Chapter   begin insert 10. end insert Fiscal Provisions

 

begin insert 79820. end insert   

(a) Bonds in the total amount of six billion eight
hundred twenty-five million dollars ($6,825,000,000), or so much
thereof as is necessary, not including the amount of any refunding
bonds issued in accordance with Section 79840 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.

begin insert 79822. end insert   

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.

begin insert 79824. end insert   

(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 Safe Drinking Water, Water Quality, and Water
Supply Finance Committee is hereby created. For purposes of this
division, the Safe Drinking Water, Water Quality, and Water Supply
Finance Committee is “the committee” as that term is used in the
State General Obligation Bond Law. 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, or their designated representatives. The Treasurer shall
serve as chairperson of the committee. A majority of the committee
may act for the committee.

(b) For purposes of the State General Obligation Bond Law,
the Department of Water Resources is designated the “board.”

begin insert 79826. end insert   

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.

begin insert 79828. end insert   

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.

begin insert 79830. end insert   

Notwithstanding Section 13340 of the Government
Code, there is hereby appropriated from the General Fund in the
State Treasury, for the purposes of this division, an amount that
will equal the total of the following:

(a) The sum annually necessary to pay the principal of, and
interest on, bonds issued and sold pursuant to this division, as the
principal and interest become due and payable.

(b) The sum necessary to carry out Section 79832, appropriated
without regard to fiscal years.

begin insert 79832. end insert   

For the purposes of carrying out this division, the
Director of Finance may authorize the withdrawal from the
General Fund of an amount not to exceed the amount of the unsold
bonds that have been authorized by the committee to be sold for
the purpose of carrying out this division less any amount borrowed
pursuant to Section 79838. Any amounts withdrawn shall be
deposited in the fund. Any money made available under this section
shall be returned to the General Fund from proceeds received
from the sale of bonds for the purpose of carrying out this division.

begin insert 79834. end insert   

All money deposited in the fund that is derived from
premium and accrued interest on bonds sold shall be reserved in
the fund and shall be available for transfer to the General Fund
as a credit to expenditures for bond interest, 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.

begin insert 79836. end insert   

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, the
cost shall be shared proportionally by each program funded
through this division by the applicable bond sale.

begin insert 79838. end insert   

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 79832. The amount of the request shall not
exceed the amount of the unsold bonds that the committee, by
resolution, has authorized to be sold for the purpose of carrying
out this division. The board shall execute any documents required
by the Pooled Money Investment Board to obtain and repay the
loan. Any amounts loaned shall be deposited in the fund to be
allocated in accordance with this division.

begin insert 79840. end insert   

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 the approval
of the issuance of any bonds issued to refund any bonds originally
issued under this division or any previously issued refunding bonds.

begin insert 79842. end insert   

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

begin insert 79844. end insert   

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.

end insert

begin insert

begin insert SEC. 3. end insert   

The Legislature may appropriate funds from any of
the following sources for grants and direct expenditures to
accomplish the purposes of Chapter 5 (commencing with Section
79730) of Division 26.7 of the Water Code:

(a) Notwithstanding the Water Conservation and Water Quality
Bond Law of 1986, the 1986 Water Conservation and Water
Quality Bond Fund created pursuant to Section 13453 of the Water
Code.

(b) Notwithstanding the Water Conservation Bond Law of 1988,
the 1988 Water Conservation Fund created pursuant to Section
12879.3 of the Water Code.

(c) Notwithstanding the Safe, Clean, Reliable Water Supply Act
of 1996, the Safe, Clean, Reliable Water Supply Fund created
pursuant to Section 78505 of the Water Code and any accounts
therein.

(d) Notwithstanding the Costa-Machado Water Act of 2000, the
Safe Drinking Water, Clean Water, Watershed Protection, and
Flood Protection Bond Fund created pursuant to Section 79013
of the Water Code and any accounts therein.

end insert

begin insert

begin insert SEC. 4. end insert   

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 Statues of 2012, is repealed.

end insert

begin insert

begin insert SEC. 5. end insert   

Sections 2 and 3 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.

end insert

begin insert

begin insert SEC. 6. end insert   

Sections 2 and 3 of this act shall take effect upon the
approval by the voters of the Safe Drinking Water, Water Quality,
and Water Supply Act of 2014, as set forth in that section at the
November 4, 2014, statewide general election.

end insert

begin insert

begin insert SEC. 7. end insert   

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 safe drinking water, water quality, and water
supply at the earliest possible date, it is necessary that this act
take effect immediately.

end insert

All matter omitted in this version of the bill appears in the bill as introduced in the Senate, January 9, 2014. (JR11)