Amended in Senate June 23, 2014

Amended in Senate June 10, 2014

Amended in Senate February 20, 2014

Amended in Senate February 12, 2014

Senate Bill No. 848

Introduced by Senator Wolk

begin insert

(Principal coauthor: Assembly Member Frazier)

end insert

(Coauthors: Senators De León, DeSaulnier, Hancock, Hueso, Pavley, 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 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

SB 848, as amended, Wolk. Safe Drinking Water, Water Quality, and Water Supply 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 Water Supply Act of 2014, which, if adopted by the voters, would authorize the issuance of bonds in the amount of $10,500,000,000 pursuant to the State General Obligation Bond Law to finance a safe drinking water, water quality, and water supply program.

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

(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.

This bill would authorize the Legislature to appropriate any unencumbered proceeds of bonds from the above-described bond acts in their respective bond funds as of November 5, 2014, for prescribed purposes 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.

(4) 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.  The Safe Drinking Water, Water
Quality, and Water Supply Act of 2014

 

Chapter  1. Short Title

 

79700.  

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

 

Chapter  2. Findings and Declarations

 

79705.  

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 and improving local and
regional water self-reliance.

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

79706.  

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 clean up 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.

(6) Sustainable groundwater management.

(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 begin delete , both surface end delete begin delete and
groundwater storage, through the following: end delete begin insert and capacity. end insert

begin delete

(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.

end delete

 

Chapter  3. Purpose

 

79708.  

An agency allocating funds provided by this division
shall prioritize investment in projects that provide drought relief,
safe drinking water, and water use efficiency improvements
necessary to increase the sustainability of California’s water
systems.

 

Chapter  4. Definitions

 

79710.  

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

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

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

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

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

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

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

(i) “Initial operation and maintenance costs” mean those initial,
eligible, reimbursable costs under a construction funding agreement
that are incurred up to, and including, initial startup testing of the
constructed project in order to deem the project complete.

(j) “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.

(k) “Interim” means the limited period of time needed to address
the identified urgent need for safe drinking water, not to exceed
three years.

(l) “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.

(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, public
water system, special district, joint powers authority, city, county,
city and county, or other political subdivision of the state.

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

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

(q) “Small water system” means a public water system that
serves 15 or more service connections but not more than 3,000
persons and regularly serves drinking water to more than an
average of 25 individuals daily for more than 60 days out of the
year.

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

(s) “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).

(t) “State small water system” means a system for the provision
of piped water to the public for human consumption that serves at
least 5, but no more than 14, service connections and does not
regularly serve drinking water to more than an average of 25
individuals daily for more than 60 days out of the year.

 

Chapter  5. Safe Drinking WaterProjects

 

79720.  

(a) It is the intent of the people that this chapter provide
funds to ensure the provision of safe drinking water to all
Californians and to increase the reliability of water supply for safe
drinking water and other purposes.

(b) The sum of three billion twenty million dollars
($3,020,000,000) shall be available for the purposes of this chapter.

79721.  

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 actions needed
to provide drinking water in communities that lack access to safe
drinking water to ensure that safe drinking water supplies are
available to all Californians. Grants and direct expenditures shall
be exempt from contracting and procurement requirements to the
extent necessary to take immediate action to protect public health
and safety. Grants awarded pursuant to this section shall not exceed
two hundred fifty thousand dollars ($250,000). Eligible actions
include, but are not limited to, the following:

(a) Providing interim water supplies, for a period not to exceed
three years, where necessary to protect public health, including
the design, purchase, installation, and operation and maintenance
of interim water treatment equipment and systems.

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

(c) Establishing connections to an adjacent water system.

(d) Urgent wastewater treatment projects in order to prevent the
contamination of a drinking water source.

79722.  

(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 primary
or secondary safe drinking water standards or contaminants
identified by the state or federal government for development of
a primary or secondary drinking water standard and ensure
affordable drinking water. Priority shall be given to projects that
provide treatment for contamination or access to alternative
drinking water sources in areas where drinking water sources have
been 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 or are public agencies that are
authorized to act on behalf of those systems. 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 (a) 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.

(e) (1) Up to two million five hundred thousand dollars
($2,500,000) of the funds available pursuant to this section may
be available as temporary initial funding for a pooled capital
reserve among small water systems and state small water systems.
This pooled capital reserve would be administered by the state
board. The purpose of the pooled capital reserve would be to allow
participating systems to collect sufficient financial capacity from
the system’s ratepayers over an affordable schedule. The funds
available pursuant to this subdivision shall be utilized only if the
state board determines that there are insufficient deposits from any
participating small water systems and state small water systems
in the pooled capital reserve. If bond funds will be used pursuant
to this subdivision, the state board shall develop criteria to
implement this subdivision that includes full repayment provisions
for any withdrawals from the pooled capital reserve.

(2) This subdivision shall become inoperative on January 1,
2024.

79723.  

The state board may administer together the funds
allocated pursuant to subdivision (b) of Section 79722 and
subdivision (b) of Section 79721.

79724.  

(a) From the funds described in Section 79720, one
billion four hundred million dollars ($1,400,000,000) shall be
available to the department for competitive grants for projects that
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.

(b) Eligible projects are those that improve the quality or supply
of safe drinking water, increase regional water self-reliance, or
address any of the following other critical water begin delete supply reliability end delete
begin insert management end insert 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 reuse and recycling for nonpotable reuse and direct
and indirect potable reuse.

(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.

(7) Brackish groundwater and ocean water desalination projects.

(8) Groundwater storage.

(9) Recycled water storage.

(10) Sediment removal to improve storage.

(11) Dam seismic retrofit.

(12) Local and regional conveyance projects that will improve
regional connectivity and maximize the benefits of existing water
storage.

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(13) Other projects eligible under Section 79561 of the Water
Code.

end insert

(c) Funds made available pursuant to this section shall be
available upon appropriation to, and shall be administered by, the
department, in begin delete close collaboration end delete begin insert coordination end insert with the state
board. begin delete Specific project and planning grant awards shall be selected
jointly by the director and chair of the state board. end delete

(d) 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 reduce reliance
on the Delta, consistent with Section 85021.

(e) 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). begin delete 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. end delete

(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 groundwater management
planning requirements established under Division 6 (commencing
with Section 10000). begin delete Groundwater management plans shall be
certified by the administering state agency as meeting the
groundwater management planning requirements. end delete

begin delete

(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 the measures taken to comply
with Section 85021.

(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.

end delete

begin delete

79725.  

The California Water Commission shall review the
implementation of Section 79724 and shall certify that requirements
for grant eligibility pursuant to that section are met prior to the
department making final grant awards.

end delete

begin delete 79726. end delete
begin insert 79725. end insert   

Funding described in Section 79724 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) Sixty-five million dollars ($65,000,000) for the North Coast
hydrologic region.

(b) One hundred ninety-five million dollars ($195,000,000) for
the San Francisco Bay hydrologic region.

(c) Eighty-five million dollars ($85,000,000) for the Central
Coast hydrologic region.

(d) Two hundred eighty-four million dollars ($284,000,000) for
the Los Angeles subregion.

(e) One hundred seventy-four million dollars ($174,000,000)
for the Santa Ana subregion.

(f) One hundred thirty-eight million dollars ($138,000,000) for
the San Diego hydrologic region.

(g) One hundred eighteen million dollars ($118,000,000) for
the Sacramento River hydrologic region.

(h) Ninety-eight million dollars ($98,000,000) for the San
Joaquin River hydrologic region.

(i) One hundred two million dollars ($102,000,000) for the
Tulare/Kern hydrologic region.

(j) Seventy-four million dollars ($74,000,000) for the
North/South Lahontan hydrologic region.

(k) Sixty-seven million dollars ($67,000,000) for the Colorado
River Basin hydrologic region.

begin delete 79727. end delete
begin insert 79726. end insert   

(a) Prevention and clean up of groundwater
contamination are critical components of successful groundwater
management. Groundwater quality becomes especially important
as water providers do the following:

(1) 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.

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

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

(4) Evaluate investments in groundwater recovery projects.

(b) From the funds described in Section 79720, one billion
dollars ($1,000,000,000) shall be available to the state board for
construction grants and loans for treatment and remediation projects
that prevent or reduce the contamination of groundwater that serves
as a source of drinking water.

(c) For the purposes of awarding funding pursuant to this
section, 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.

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

(e) Funding authorized pursuant to this section shall include
funding for technical assistance to disadvantaged communities.
The state board shall operate a multidisciplinary technical
assistance program for small and disadvantaged communities.

(f) Priority shall be given to projects that do any of the
following:

(1) Have commenced a characterization study, consistent with
the State Department of Public Health’s Procedure Memorandum
97-005, and issued a notice of preparation for an environmental
impact report.

(2) Will address contamination at a site on the list maintained
by the Department of Toxic Substances Control pursuant to Section
25356 of the Health and Safety Code or listed on the National
Priorities List established pursuant to Section 105 of the
Comprehensive Environmental Response, Compensation, and
Liability Act of 1980 (42 U.S.C. Sec. 9605(a)(8)(B)).

(3) Prevents or minimizes saltwater intrusion.

(g) The state board shall require grantees to do the following:

(1) Make reasonable efforts to attempt to recover the costs of
cleanup from the parties responsible for the contamination. 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.

(2) Repay grant funds that are subsequently recovered from
parties responsible for the groundwater contamination.

begin delete 79728. end delete
begin insert 79727. end insert   

From the funds described in Section 79720, 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 delete 79729. end delete
begin insert 79728. end insert   

From the funds described in Section 79720, one hundred
million dollars ($100,000,000) shall be made available for
competitive grants for projects that develop groundwater
management plans, consistent with existing groundwater
management planning requirements in Division 6 (commencing
with Section 10000), that further sustainable groundwater
management.

 

Chapter  6. Water Quality Projects

 

79730.  

(a) It is the intent of the people that this chapter provide
funds to protect water quality in the rivers, lakes, streams, and
coastal waters of the state, to assist in meeting the Federal Water
Pollution Control Act (33 U.S.C. Sec. 1251 et seq.) and other state
and federal requirements for the protection of water quality, public
health, and endangered species, and to protect or restore natural
systems that contribute to water supply, water quality, or flood
management.

(b) The sum of three billion one hundred eighty million dollars
($3,180,000,000) shall be available for the purposes of this chapter.

79731.  

(a) From the funds described in Section 79730, four
hundred million dollars ($400,000,000) shall be available to the
state board for deposit in the State Water Pollution Control
Revolving Fund Small Community Grant Fund established by
Section 13477.6 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) The state board may expend up to ten million dollars
($10,000,000) of the funds allocated in subdivision (a) for technical
assistance to eligible communities.

(c) 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 Domestic 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 domestic well and
septic owners to protect drinking water sources and ensure safe
and affordable drinking water for all Californians. The state board
shall develop criteria for the allocation of these grants and loans
that specifies these are for the benefit of small communities to
treat drinking water or protect drinking water from contamination
and includes an income threshold equivalent to the definition of a
disadvantaged community.

79732.  

(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.

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

(g) No more than seventy-five million dollars ($75,000,000)
shall be awarded for the development of stormwater capture and
reuse plans.

79733.  

From the funds described in Section 79730, five
hundred million dollars ($500,000,000) shall be available to the
state board for grants 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 the use of recycled water.

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

(e) Groundwater recharge infrastructure related to recycled
water.

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

79734.  

For the purpose of awarding funding under Section
79733, 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.

79735.  

Projects funded pursuant to Section 79733 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.

79736.  

For purposes of Section 79733, 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.

79737.  

(a) From the funds described in Section 79730, the
sum of begin delete five hundred million dollars ($500,000,000) end delete begin insert two hundred
fifty million dollars ($250,000,000) end insert 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:

begin delete

(1) 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 paragraph 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 paragraph
are not needed for dam removal projects.

end delete begin delete

(2)

end delete

begin insert (1) end insert  One hundred million dollars ($100,000,000) for projects
that help fulfill state obligations under Chapters 611, 612, and 613
of the Statutes of 2003, which were enacted to facilitate the
execution and implementation of the Quantification Settlement
Agreement, including restoration of the Salton Sea.

begin delete

(3)

end delete

begin insert (2) end insert  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.

begin delete

(4)

end delete

begin insert (3) end insert  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 paragraph shall be approved pursuant to
Title 7.42 (commencing with Section 66905) of the Government
Code, as those provisions may be amended.

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

79738.  

(a) From the funds described in Section 79730, the
sum of begin delete nine hundred twenty-five million dollars ($925,000,000) end delete
begin insert one billion one hundred seventy-five million dollars
($1,175,000,000) end insert shall be available for projects that protect and
improve California’s watersheds, wetlands, forests, and flood
plains.

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

(1) Baldwin Hills Conservancy: fifteen million dollars
($15,000,000).

(2) California Tahoe Conservancy: forty-five million dollars
($45,000,000).

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

(4) San Diego River Conservancy: twenty million dollars
($20,000,000).

(5) San Gabriel and Lower Los Angeles Rivers and Mountains
Conservancy: sixty-five million dollars ($65,000,000).

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

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

(8) Sierra Nevada Conservancy: one hundred fifteen million
dollars ($115,000,000).

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

(10) Wildlife Conservation Board: begin delete two hundred ten million
dollars ($210,000,000). end delete begin insert four hundred sixty million dollars
($460,000,000). end insert

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

(c) Of the funds allocated to the State Coastal Conservancy
pursuant to paragraph (9) of subdivision (b), one hundred sixty-five
million dollars ($165,000,000) is 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.

(3) Forty million dollars ($40,000,000) shall be available for
projects that benefit the Santa Ana River watershed.

(d) Of the funds allocated to the San Gabriel and Lower Los
Angeles Rivers and Mountains Conservancy pursuant to paragraph
(5) of subdivision (b), up to fifteen million dollars ($15,000,000)
shall be available for multibenefit coastal wetlands restoration
undertaken in coordination with the State Coastal Conservancy.

(e) Eligible projects include those that do any of the following:

(1) Reduce pollution or contamination of rivers, lakes, streams,
or coastal waters.

(2) Protect or restore rural or urban watershed functions that
contribute to water supply, water quality, or flood management.

(3) Protect and restore aquatic, coastal, wetland, and migratory
bird ecosystems, including fish and wildlife corridors.

(4) Implement adaptation and conservation projects that improve
the ability of California’s watersheds, wetlands, forests, and
floodplains to reduce the impacts of climate change on California’s
communities and ecosystems including through the implementation
of natural community conservation plans and habitat conservation
plans.

(f) Priority shall be given to projects with multiple benefits such
as increased water supply, improved water quality, and improved
local or regional water quality and water supply reliability that
builds the resilience of human communities and natural habitats
against the risks of prolonged drought or the exhaustion of water
supplies.

(g) An appropriation of funds available pursuant to this section
may include funds for planning, monitoring, and assessment of
the effectiveness of the programs and projects authorized for
funding.

79739.  

(a) From the funds described in Section 79730, two
hundred million dollars ($200,000,000) shall be available to the
secretary for a competitive program to fund multibenefit watershed
and river enhancement projects in urban watersheds. Eligible
applicants are public agencies and nonprofit organizations. Eligible
projects shall improve watershed health, water quality, or water
supply reliability. All projects shall increase regional and local
water self-sufficiency and 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 or designed processes to treat
and capture runoff.

(4) Create or restore native habitat.

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

(6) Further the purposes of the California Urban Forestry Act
of 1978 (Chapter 2 (commencing with Section 4799.06) of Part
2.4 of Division 4 of the Public Resources Code) with urban forestry
projects in the immediate proximity of the river.

(b) At least 75 percent of the funds available pursuant to this
section shall be allocated for projects that are located in or in close
proximity to, major metropolitan cities for a river that has adopted
a revitalization plan as of January 1, 2014. Funds made available
by this subdivision are available for grants along the entire river
and its tributaries, not solely for those river reaches covered by
the revitalization plan.

79740.  

(a) From the funds described in Section 79730, thirty
million dollars ($30,000,000) shall be available begin delete to the state board end delete
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.

79741.  

From the funds described in Section 79730, twenty-five
million dollars ($25,000,000) shall be available begin delete to the state board end delete
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.

79742.  

From the funds described in Section 79730, the sum of
one hundred million dollars ($100,000,000) shall be available to
the Wildlife Conservation Board for wildlife refuges and wildlife
habitat areas under Section 3406(d) of Title 34 of Public Law
102-575.

 

Chapter  7. Delta

 

79750.  

(a) It is the intent of the people that this chapter provide
funds to protect, restore, and enhance the Delta ecosystem, improve
the water quality, protect the unique cultural, recreational, natural
resource, and agricultural values of the Delta, and protect the
integrity of Delta levees for water conveyance and flood control
purposes.

(b) The sum of one billion three hundred million dollars
($1,300,000,000) shall be available for the purposes of this chapter.

79751.  

(a) From the funds described in Section 79750, nine
hundred million dollars ($900,000,000) shall be available to the
Sacramento-San Joaquin 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).

(c) Of the funds available pursuant to subdivision (a), not less
than three hundred million dollars ($300,000,000) shall be made
available for purposes of paragraph (3) of subdivision (a).

(d) Of the funds available pursuant to subdivision (a), not less
than one hundred million dollars ($100,000,000) shall be made
available for purposes of paragraphs (4) and (5) of subdivision (a).

79752.  

From the funds described in Section 79750, 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  8. Statewide Water System Operational
Improvement for 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 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 board.

79765.  

(a) Except as provided in subdivision (c), funds
allocated pursuant to this chapter shall not 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) A project shall not 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 project applicant 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 authorities 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.

79769.5.  

(a) In approving the Safe, Clean, 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
Safe, Clean, 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  9. General Provisions

 

79770.  

The proceeds of bonds issued and sold pursuant to this
division shall be deposited into 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.

79772.  

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.

79774.  

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 data shall
be collected and reported to the state board in a manner that is
compatible and consistent with surface water monitoring data
systems or groundwater monitoring data systems administered by
the state board.

79776.  

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 8
(commencing with Section 79760).

79778.  

(a) Prior to disbursing grants or loans pursuant to this
division, each state agency that is required to administer a financial
assistance 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. If the
state agency has previously developed and adopted project
solicitation and evaluation guidelines that meet the requirements
of this division, it may use those guidelines.

(b) Prior to disbursing funds pursuant to this division, the state
agency shall conduct public meetings to consider public comments
prior to finalizing the guidelines, as determined to be necessary
by the implementing state agency. The state agency shall publish
the draft solicitation and evaluation guidelines on its Internet Web
site at least 30 days before any public meetings. 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 79751, the
Sacramento-San Joaquin 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 79751 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 Sacramento-San
Joaquin Delta Conservancy may develop and implement a
competitive program for habitat enhancements that maximizes
voluntary landowner participation in projects that provide
measurable and long-lasting 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 79751, the Sacramento-San Joaquin
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
79751 shall be from willing sellers only.

(f) In implementing Section 79751, the Sacramento-San Joaquin
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.

(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 people that California’s working
agricultural and forested 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.

(j) It is the intent of the people that any funds allocated pursuant
to this division to an investor-owned utility regulated by the Public
Utilities Commission or a mutual water company should be for
the benefit of the ratepayers or the public and not the investors.

(k) In allocating funds pursuant to Section 79721, 79722, or
79731, the state board shall consider a written statement prepared
by a local agency formation commission regarding the
consolidation or extension of, or other shared solutions for, water
or sewer services.

79780.  

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.

79782.  

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.

79783.  

Funds provided by this division shall be expended in
a manner consistent with the applicable regional water quality
control plan adopted pursuant to Chapter 4 (commencing with
Section 13200) of Division 7 in effect at the time the project is
approved.

79784.  

(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.

79786.  

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.

79788.  

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

79790.  

(a) 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.

(b) (1) To be eligible for funding under this division, an urban
water supplier shall adopt and submit an urban water management
plan in accordance with the Urban Water Management Planning
Act (Part 2.6 (commencing with Section 10610) of Division 6).

(2) To be eligible for funding under this division, an agricultural
water supplier shall adopt and submit an agricultural water
management plan in accordance with the Agricultural Water
Management Planning Act (Part 2.8 (commencing with Section
10800) of Division 6).

(3) In accordance with Section 10608.56, an agricultural water
supplier or an urban water supplier is ineligible for funding under
this division unless it complies with the requirements of Part 2.55
(commencing with Section 10608) of Division 6.

79792.  

(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 rights 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)
or the federal Wild and Scenic Rivers Act (16 U.S.C. Sec. 1271
et seq.), 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 or the federal Wild and Scenic Rivers Act (16 U.S.C.
Sec. 1271 et seq.).

(g) Nothing in this division shall be construed to affect any
contract entered into before January 1, 2013, between the State of
California and one or more of the delta water agencies pursuant
to the authority granted under Chapter 283 of the Statutes of 1973,
Chapter 1089 of the Statutes of 1973, or Chapter 1133 of the
Statutes of 1973, as those chapters may have been amended.

79794.  

All funds provided by this division shall be administered
and expended pursuant to existing law, as those provisions may
be amended, including, but not limited to, the Sacramento-San
Joaquin Delta Reform Act of 2009 (Division 35 (commencing
with Section 85000), unless explicitly exempted by this division).

 

Chapter  10. Fiscal Provisions

 

79820.  

(a) Bonds in the total amount of ten billion five hundred
million dollars ($10,500,000,000), 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 finance
committee pursuant to this section. The bonds shall be sold upon
the terms and conditions specified in a resolution to be adopted
by the finance committee pursuant to Section 16731 of the
Government Code.

79822.  

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.

79824.  

(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 finance 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 finance committee. A
majority of the finance committee may act for the finance
committee.

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

79826.  

The finance 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.

79828.  

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.

79830.  

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.

79832.  

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 finance 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 moneys 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.

79834.  

All moneys deposited in the fund that are 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.

79836.  

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.

79838.  

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 finance 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.

79840.  

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.

79842.  

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.

79844.  

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.  

(a) The Legislature finds and declares that
voter-approved bonds enacted in the past include funding for
projects that are either no longer necessary or not as vital as other
projects to the continued supply of safe, clean, and affordable water
California needs today. Today’s electorate should have the choice
to redirect proceeds from bonds approved decades ago to superior
uses given California’s changing water supply needs.

(b) Notwithstanding any other provision of law and without
limiting any other authorized use, any unencumbered proceeds of
bonds in the following bond funds as of November 5, 2014, may
be appropriated by the Legislature for one or more of the purposes
of Sections 79724, begin delete 79729, end delete begin insert 79728, end insert and 79732 of the Water Code,
including, but not limited to, making grants as provided in those
provisions rather than for the purposes described in the bond acts
pursuant to which the bonds were issued:

(1) The 1986 Water Conservation and Water Quality Bond Fund
created pursuant to Section 13453 of the Water Code.

(2) The 1988 Water Conservation Fund created pursuant to
Section 12879.3 of the Water Code.

(3) The Safe, Clean, Reliable Water Supply Fund created
pursuant to Section 78505 of the Water Code and any accounts
therein.

(4) 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.

(c) Prior to a grant or any other application of any unencumbered
proceeds of bonds for the purposes of Sections 79724, begin delete 79729, end delete
begin insert 79728, end insert and 79732 of the Water Code, either the finance committee
as created by Section 79824 of the Water Code or the State Water
Resources Control Board, whomever is approving the applicable
grant or otherwise applying the bond proceeds, shall consult with
the office of the Treasurer to determine whether the application
of the bond proceeds to the particular purpose and the related
operation and administration of any related project complies with
any federal income tax restrictions and any contractual agreements
then in effect relating to the applicable bonds.

SEC. 4.  

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.

SEC. 5.  

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.

SEC. 6.  

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.

SEC. 7.  

It is the intent of the Legislature to enact legislation
during the 2013-14 Regular Session that would develop statewide
groundwater management plan requirements.

SEC. 8.  

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.