Amended in Senate August 7, 2014

Senate Bill No. 1013

Introduced by begin delete Senator Berryhill end delete begin insert Senators Vidak and Nielsen end insert

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(Principal coauthors: Senators Berryhill, Cannella, Fuller, Huff, Knight, Walters, and Wyland)

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February 13, 2014

An act to begin delete amend Section 22202 of the Financial Code, relating to finance lenders end delete begin insert 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 end insert .

LEGISLATIVE COUNSEL’S DIGEST

SB 1013, as amended, begin delete Berryhill end delete   begin insert Vidak end insert . begin delete Finance lenders. end delete begin insert Clean, Safe, and Reliable Drinking Water Supply Act of 2014 end insert begin insert . end insert

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

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This bill would repeal these provisions.

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

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This bill would enact the Clean, Safe, and Reliable Drinking Water Supply Act of 2014, which, if adopted by the voters, would authorize the issuance of bonds in the amount of $8,700,000,000 pursuant to the State General Obligation Bond Law to finance a clean, safe, and reliable drinking water supply program.

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

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

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Existing law, the California Finance Lenders Law, provides for the licensure and regulation of finance lenders and brokers by the Commissioner of Business Oversight who is the chief officer of the Department of Business Oversight. Under existing law, on any loan made that is secured by real property, an appraisal fee not to exceed the actual cost of the appraisal is authorized to be charged by the licensee if a written appraisal is provided to the licensee by a qualified appraiser. Under existing law, only one fee for appraising the same real property is authorized to be collected unless the borrower has obtained a new or additional loan and more than one year has elapsed since the prior appraisal. Existing law specifies that this fee is not included in, among other things, charges, as defined for purposes of this law.

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This bill would make nonsubstantive changes to that definition.

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Vote:  begin delete majority end delete begin insert ²⁄₃ end insert . Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

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

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begin insert SECTION 1. end insert   

end insert

begin insert Division 26.7 (commencing with Section 79700)
of the end insert begin insert Water Code end insert begin insert , 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   

end insert

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

begin insert

 

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

 

Chapter   begin insert 2. end insert Findings and Declarations

 

begin insert 79701. end insert   

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

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

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

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

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

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

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

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

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

begin insert 79702. end insert   

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

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

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

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

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

(e) Enhancing regional water self-reliance consistent with
Section 85021 offers a key strategy for addressing climate change
and improving water supply reliability. It helps the Delta and it
helps local communities to address their own water challenges.

 

Chapter   begin insert 3. end insert Definitions

 

begin insert 79703. end insert   

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

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

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

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

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

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

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

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

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

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

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

(1) Financial hardship.

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

(3) Low population density.

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

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

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

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

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

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

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

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

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

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

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

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

 

Chapter   begin insert 4. end insert General Provisions

 

begin insert 79705. end insert   

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

begin insert 79706. end insert   

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

begin insert 79707. 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 9
(commencing with Section 79760).

begin insert 79708. end insert   

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

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

begin insert 79709. end insert   

It is the intent of the people that:

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

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

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

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

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

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

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

begin insert 79710. end insert   

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

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

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

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

begin insert 79711. end insert   

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

(b) Funds provided by this division may be used to acquire
water if both of the following conditions are met:

(1) The acquisition involves a long-term water transfer of not
less than 20 years, a purchase of water, or other agreement, that
results in enhanced stream flow such as reservoir reoperation or
conjunctive use programs.

(2) The Department of Fish and Wildlife determines that the
acquisition, purchase, or agreement and the use of the funds will
provide benefits or improvements to fisheries or the ecosystem.

begin insert 79712. end insert   

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

begin insert 79713. 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 shall be construed to affect the
California Wild and Scenic Rivers Act (Chapter 1.4 (commencing
with Section 5093.50) of Division 5 of the Public Resources Code)
and funds authorized pursuant to this division shall not be available
for any project that could have an adverse effect on the values
upon which a wild and scenic river or any other river is afforded
protections pursuant to the California Wild and Scenic Rivers Act.

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

begin insert 79714. end insert   

Eligible applicants under this division are public
agencies, nonprofit organizations, public utilities, federally
recognized Indian tribes, State Indian tribes listed on the Native
American Heritage Commission’s California Tribal list, and mutual
water companies. To be eligible for funding under this division, a
project proposed by a public utility that is regulated by the Public
Utilities Commission or a mutual water company shall have a
clear and definite public purpose and shall benefit the customers
of the water system.

begin insert 79715. end insert   

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

begin insert 79716. end insert   

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

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

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

begin insert 79717. end insert   

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

begin insert 79718. end insert   

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

 

Chapter   begin insert 5. end insert Clean, Safe, and Reliable Drinking Water

 

begin insert 79720. end insert   

The sum of six hundred fifty million dollars
($650,000,000) shall be available, upon appropriation by the
Legislature from the fund, for expenditures, grants, and loans for
projects that improve water quality or help provide clean, safe,
and reliable drinking water to all Californians.

begin insert 79721. end insert   

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

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

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

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

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

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

(f) Prevent further contamination of drinking water supplies.

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

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

begin insert 79722. end insert   

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

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

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

begin insert 79723. end insert   

An applicant for a project to clean up a groundwater
aquifer shall demonstrate that a public agency has authority to
manage the water resources in that aquifer to be eligible for
funding pursuant to this chapter. A groundwater management plan
adopted and approved pursuant to Part 2.75 (commencing with
Section 10750) of Division 6 shall be deemed sufficient to satisfy
the requirement of this section. This section does not apply to
projects that install treatment facilities at the wellhead, customer
connection, or the tap.

begin insert 79724. end insert   

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

begin insert 79725. end insert   

(a) Of the funds authorized in Section 79720, not less
than two hundred fifty million dollars ($250,000,000) shall be
available for deposit in the State Water Pollution Control
Revolving Fund Small Community Grant Fund created pursuant
to Section 13477.6 for grants for wastewater treatment projects.
Priority shall be given to projects that serve disadvantaged
communities and severely disadvantaged communities, and to
projects that address public health hazards. Projects may include,
but not be limited to, projects that identify, plan, design, and
implement regional mechanisms to consolidate wastewater systems
or provide affordable treatment technologies.

(b) The state board may expend up to nine million dollars
($9,000,000) of the funds allocated pursuant to subdivision (a) for
technical assistance to eligible communities.

begin insert 79726. end insert   

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

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

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

(3) Establishing connections to an adjacent water system.

(4) The design, purchase, installation, and initial operating
costs for interim water treatment equipment and systems.

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

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

begin insert 79727. end insert   

(a) (1) Of the funds authorized in Section 79720, three
hundred million dollars ($300,000,000) shall be available for
grants and loans for public water system infrastructure
improvements and related actions to meet safe drinking water
standards, ensure affordable drinking water, or both. Priority
shall be given to projects that provide treatment for contamination
or access to an alternate drinking water source or sources for
small community water systems or state small water systems in
disadvantaged communities whose drinking water source is
impaired by chemical and nitrate contaminants and other health
hazards identified by the implementing agency. Eligible recipients
serve disadvantaged communities and are public agencies or
incorporated mutual water companies. The state board may make
grants for the purpose of financing feasibility studies and to meet
the eligibility requirements for a construction grant. Eligible
expenses may include initial and ongoing operation and
maintenance costs for systems serving disadvantaged communities.
Special consideration shall be given to projects that provide shared
solutions for multiple communities, at least one of which is a
disadvantaged community that lacks safe, affordable drinking
water and is served by a small community water system, state small
water system, or private well. 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 benefits or are
shared among multiple entities, at least one of which shall be a
disadvantaged community. Not more than 25 percent of a grant
may be awarded in advance of actual expenditures.

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

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

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

begin insert 79728. end insert   

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

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

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

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

 

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

 

begin insert 79730. end insert   

(a) The sum of one billion five hundred million dollars
($1,500,000,000) shall be available, upon appropriation by the
Legislature from the fund, in accordance with this chapter, for
competitive grants for multibenefit ecosystem and watershed
protection and restoration projects in accordance with statewide
priorities.

(b) Of the funds made available by this section, the sum of three
hundred twenty-five million dollars ($325,000,000) shall be
allocated as follows for projects that protect and improve
California’s watersheds:

(1) For the watersheds of the Los Angeles and San Gabriel
Rivers, fifty-one million dollars ($51,000,000) for multibenefit
water quality, water supply, public access, and watershed
protection projects, according to the following schedule:

(A) Santa Monica Mountains Conservancy, twenty-three million
dollars ($23,000,000).

(B) San Gabriel and Lower Los Angeles Rivers and Mountains
Conservancy, twenty-three million dollars ($23,000,000).

(C) Baldwin Hills Conservancy, five million dollars
($5,000,000).

(2) California Tahoe Conservancy, nine million dollars
($9,000,000).

(3) Coachella Valley Mountains Conservancy, nine million
dollars ($9,000,000).

(4) San Diego River Conservancy, five million dollars
($5,000,000).

(5) San Joaquin River Conservancy, nine million dollars
($9,000,000).

(6) Sierra Nevada Conservancy, twenty-two million dollars
($22,000,000).

(7) State Coastal Conservancy, one hundred fifteen million
dollars ($115,000,000).

(8) Wildlife Conservation Board, eighty million dollars
($80,000,000).

(9) Ocean Protection Council, twenty-five million dollars
($25,000,000).

begin insert 79731. end insert   

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

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

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

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

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

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

(f) Remove barriers to fish passage.

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

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

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

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

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

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

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

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

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

begin insert 79732. end insert   

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

begin insert 79733. end insert   

(a) Of the funds authorized in Section 79730, one
hundred million dollars ($100,000,000) shall be made available
for projects to protect and enhance an urban creek, as defined in
subdivision (e) of Section 7048, and its tributaries, pursuant to
Division 22.8 (commencing with Section 32600) of, and Division
23 (commencing with Section 33000) of, the Public Resources
Code and Section 79508.

(b) (1) Of the funds authorized in Section 79730, fifty million
dollars ($50,000,000) shall be made available to the secretary for
a competitive program to fund multibenefit watershed and urban
rivers enhancement projects in urban watersheds that increase
regional and local water self-sufficiency and that meet at least two
of the following objectives:

(A) Promote groundwater recharge and water reuse.

(B) Reduce energy consumption.

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

(D) Create or restore native habitat.

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

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

(c) At least 25 percent of the funds available pursuant to
subdivisions (a) and (b) 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.

(e) Notwithstanding Section 79711, of the funds authorized in
Section 79730, four hundred seventy-five million dollars
($475,000,000) shall be available to the Natural Resources Agency
to support projects that fulfill the obligations of the State of
California in complying with the terms of one of the following:

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

(2) Interstate compacts set forth in Section 66801 of the
Government Code pursuant to Title 7.42 (commencing with Section
66905) of the Government Code.

(3) Any interstate or multiparty settlement agreement related
to water acted upon on or before December 31, 2013. Priority
shall be given to projects that meet one or more of the following
criteria:

(A) The project is of statewide significance.

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

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

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

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

begin insert 79734. end insert   

(a) Of the funds provided in Section 79730, at least
two hundred million ($200,000,000) shall be made available for
the enhancement of water flows in stream systems statewide,
consistent with Section 79711.

(b) Of the funds provided in Section 79730, at least two hundred
million ($200,000,000) shall be made available for statewide
ecosystem restoration projects. These funds may be used to fund
coastal wetland habitat, watershed restoration, including activities
to improve forest health, restore mountain meadows, modernize
stream crossings, reconnect historical flood plains, install or
improve fish screens, provide fish passages, restore river channels,
restore or enhance riparian habitats, and remove sediment and
trash. In allocating funds for a project pursuant to this subdivision,
the state board and the Department of Fish and Wildlife shall
consider the location of the project so that funded projects are
geographically distributed throughout the state.

begin insert 79735. end insert   

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

 

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

 

begin insert 79740. end insert   

The sum of one billion two hundred fifty million dollars
($1,250,000,000) shall be available, upon appropriation by the
Legislature from the fund, for expenditures on, and competitive
grants and loans to, projects that are included in and implement
an adopted integrated regional water management plan consistent
with Part 2.2 (commencing with Section 10530) of Division 6 and
respond to climate change and contribute to regional water
security as provided in this chapter.

begin insert 79741. end insert   

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

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

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

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

begin insert 79742. end insert   

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

(b) An urban water supplier that does not prepare, adopt, and
submit its urban water management plan in accordance with the
Urban Water Management Planning Act (Part 2.6 (commencing
with Section 10610) of Division 6) is ineligible to apply for funds
made available pursuant to this chapter until the urban water
management plan is prepared and submitted in accordance with
the requirements of that act.

(c) A local agency that does not prepare, adopt, and submit its
groundwater management plan in accordance with Part 2.75
(commencing with Section 10750) of Division 6 is ineligible to
apply for funds made available pursuant to this chapter until the
plan is prepared and submitted in accordance with the
requirements of that part. The groundwater management plan
requirement shall not apply to a water replenishment district
formed pursuant to Division 18 (commencing with Section 60000)
or to a local agency that serves or has authority to manage an
adjudicated groundwater basin.

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

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

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

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

begin insert 79743. end insert   

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

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

(b) Water-use efficiency and water conservation.

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

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

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

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

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

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

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

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

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

(h) Water desalination projects.

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

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

begin insert 79744. end insert   

(a) Of the funds authorized in Section 79740, five
hundred million dollars ($500,000,000) shall be allocated to the
hydrologic regions as identified in the California Water Plan in
accordance with this section. For the South Coast hydrologic
region, the department shall establish three funding areas that
reflect the watersheds of San Diego County (designated as the San
Diego subregion), the Santa Ana River watershed and southern
Orange County (designated as the Santa Ana subregion), and the
Los Angeles and Ventura County watersheds (designated as the
Los Angeles subregion), and shall allocate funds to those areas
in accordance with this subdivision. The North and South Lahontan
hydrologic regions shall be treated as one area for the purpose of
allocating funds. For purposes of this subdivision, the Sacramento
River hydrologic region does not include the Delta. For purposes
of this subdivision, the Mountain Counties Overlay is not eligible
for funds from the Sacramento River hydrologic region or the San
Joaquin River hydrologic region. Multiple integrated regional
water management plans may be recognized in each of the areas
allocated funding.

(b) Funds made available by this section shall be allocated as
follows:

(1) Twenty-two million five hundred thousand dollars
($22,500,000) for the North Coast hydrologic region.

(2) Sixty-six million dollars ($66,000,000) for the San Francisco
Bay hydrologic region.

(3) Twenty-nine million dollars ($29,000,000) for the Central
Coast hydrologic region.

(4) Ninety-nine million dollars ($99,000,000) for the Los Angeles
subregion.

(5) Sixty-four million dollars ($64,000,000) for the Santa Ana
subregion.

(6) Forty-three million five hundred thousand dollars
($43,500,000) for the San Diego subregion.

(7) Thirty-eight million dollars ($38,000,000) for the
Sacramento River hydrologic region.

(8) Thirty-two million dollars ($32,000,000) for the San Joaquin
River hydrologic region.

(9) Thirty-five million dollars ($35,000,000) for the Tulare/Kern
hydrologic region.

(10) Twenty-five million five hundred thousand dollars
($25,500,000) for the North/South Lahontan hydrologic region.

(11) Twenty-three million five hundred thousand dollars
($23,500,000) for the Colorado River Basin hydrologic region.

(12) Twenty-two million dollars ($22,000,000) for the Mountain
Counties Overlay.

begin insert 79745. end insert   

(a) Of the funds authorized by Section 79740, one
hundred million dollars ($100,000,000) may be used for direct
expenditures, and for grants and loans, for water conservation
and water-use efficiency plans, projects, and programs, including
urban and regional water conservation plans, projects, and
programs, implemented to achieve urban water use targets
developed pursuant to Section 10608.20. Priority for funding shall
be given to plans, projects, and programs that do any of the
following:

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

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

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

(b) Of the funds authorized by Section 79740, one hundred
million dollars ($100,000,000) shall be available to the department
for direct expenditures, and grants and loans, for agricultural
water conservation and water-use efficiency plans, projects, and
programs, including agricultural water management plans or
agricultural water-use efficiency projects and programs developed
pursuant to Part 2.8 (commencing with Section 10800) of Division
6.

(c) Section 1011 applies to all conservation measures that an
agricultural water supplier or an urban water supplier implements
with funding under this chapter. This subdivision does not limit
the application of Section 1011 to any other measures or projects
implemented by a water supplier. Notwithstanding Section 79740
and subdivision (f) of Section 79742, the projects funded pursuant
to this section are not required to be in an adopted integrated
regional water management plan or to comply with that program.

begin insert 79746. end insert   

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

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

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

(3) Adaptation to the impacts of hydrologic changes.

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

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

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

begin insert 79747. end insert   

(a) Of the funds authorized by Section 79740, two
hundred million dollars ($200,000,000) shall be available for
grants for multibenefit stormwater management projects.

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

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

begin insert 79748. end insert   

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

 

Chapter   begin insert 8. end insert Sacramento-San Joaquin Delta
Sustainability

 

begin insert 79750. end insert   

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

(b) The sum of six hundred million ($600,000,000) shall be
available for the purposes of this chapter.

begin insert 79751. end insert   

(a) From the funds described in Section 79750, three
hundred fifty million dollars ($350,000,000) shall be available to
the Department of Fish and Wildlife for water quality, ecosystem
restoration, and fish protection facilities that benefit the Delta,
including, but not limited to, the following:

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

(b) In implementing this section, the Department of Fish and
Wildlife shall coordinate and consult with the Delta city or Delta
county in which a grant is proposed to be expended or an interest
in real property is proposed to be acquired. An acquisition of real
property pursuant to this section shall only be from willing sellers.

(c) Funds provided by this chapter shall not be used to acquire
land by eminent domain.

(d) To the extent feasible, in implementing this section, the
Department of Fish and Wildlife shall seek to achieve wildlife
conservation objectives through projects on public lands or
voluntary projects on private lands.

begin insert 79752. end insert   

From the funds described in Section 79750, two hundred
fifty million dollars ($250,000,000) 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 earthquakes, flooding, or sea
level rise.

(d) Emergency response and repairs.

 

Chapter   begin insert 9. end insert Statewide Water System Operational
Improvement and Drought Preparedness

 

begin insert 79760. end insert   

(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.

begin insert 79761. end insert   

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.

begin insert 79762. end insert   

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.

begin insert 79763. end insert   

(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.

begin insert 79764. end insert   

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.

begin insert 79765. end insert   

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

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

(2) The project applicant has entered into a contract with each
party that will derive benefits, other than public benefits, as defined
in Section 79763, from the project that ensures the party will pay
its share of the total costs of the project. The benefits available to
a party shall be consistent with that party’s share of total project
costs.

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

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

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

(A) Feasibility studies have been completed.

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

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

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

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

begin insert 79766. end insert   

(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.

begin insert 79767. end insert   

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

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

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

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

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

begin insert 79768. end insert   

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.

begin insert 79769. end insert   

(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.

begin insert 79770. end insert   

(a) In approving the Clean, Safe, and Reliable Drinking
Water Supply Act of 2014, the people were informed and hereby
declare that the provisions of this chapter are necessary, integral,
and essential to meeting the single object or work of the Clean,
Safe, and Reliable Drinking Water Supply Act of 2014. As such,
any amendment of the provisions of this chapter by the Legislature
without voter approval would frustrate the scheme and design that
induced voter approval of this act. The people therefore find and
declare that any amendment of the provisions of this chapter by
the Legislature shall require approval by 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   begin insert 10. end insert Water Recycling

 

begin insert 79780. end insert   

The sum of seven hundred million dollars
($700,000,000) shall be available, upon appropriation by the
Legislature from the fund, for grants or loans for water recycling
and advanced treatment technology projects, including all of the
following:

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

(b) Contaminant and salt removal projects, including, but not
limited to, groundwater and seawater desalination.

(c) Dedicated distribution infrastructure for recycled water,
including residential, commercial, agricultural, and industrial
end-user retrofit projects to allow use of recycled water.

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

(e) Groundwater recharge infrastructure related to recycled
water.

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

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

begin insert 79781. end insert   

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

begin insert 79782. end insert   

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

(a) Water supply reliability improvement.

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

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

(d) Cost-effectiveness.

(e) Energy efficiency and greenhouse gas emission impacts.

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

begin insert 79783. end insert   

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

 

Chapter   begin insert 11. end insert Groundwater Sustainability

 

begin insert 79790. end insert   

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

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

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

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

(d) Evaluate investments in groundwater recovery projects.

begin insert 79791. end insert   

(a) The sum of nine hundred million dollars
($900,000,000) shall be available, upon appropriation by the
Legislature from the fund, for expenditures, grants, and loans for
projects to prevent or clean up the contamination of groundwater
that serves or has served as a source of drinking water. Funds
appropriated pursuant to this section shall be available to the
implementing agency for projects necessary to protect public health
by preventing or reducing the contamination of groundwater that
serves or has served as a major source of drinking water for a
community.

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

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

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

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

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

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

(c) Funding authorized by this chapter shall not be used to pay
any share of the costs of remediation recovered from a party
responsible for the contamination of a groundwater storage
aquifer, but may be used to pay costs that cannot be recovered
from a responsible party. A party that receives funding for
remediating a groundwater storage aquifer shall exercise
reasonable efforts to recover the costs of groundwater cleanup
from the party or parties responsible for the contamination.

(d) To the maximum extent possible, a project or activity that
leverages funding from local agencies and responsible parties
shall receive priority consideration.

begin insert 79792. end insert   

Of the funds authorized by Section 79791, 10 percent
shall be available for grants for treatment and remediation
activities that prevent or reduce the contamination of groundwater
that serves as a source of drinking water. Nothing in this section
precludes the funding of projects pursuant to Section 79791.

begin insert 79793. end insert   

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

begin insert 79794. end insert   

(a) A project that receives funding pursuant to this
chapter shall be selected by a competitive grant or loan process
with added consideration for those projects that leverage private,
federal, or local funding.

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

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

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

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

 

Chapter   begin insert 12. end insert Statewide Flood Management

 

begin insert 79795. end insert   

The sum of one hundred million dollars ($100,000,000)
shall be available for the following purposes:

(a) Construction, repair, or rehabilitation of facilities of the
State Plan of Flood Control, pursuant to the Central Valley Flood
Protection Plan.

(b) Statewide flood control subventions pursuant to any of the
following:

(1) The State Water Resources Law of 1945 (Chapter 1
(commencing with Section 12570) and Chapter 2 (commencing
with Section 12639) of Part 6 of Division 6).

(2) The Flood Control Law of 1946 (Chapter 3 (commencing
with Section 12800) of Part 6 of Division 6).

(3) The California Watershed Protection and Flood Protection
Law (Chapter 4 (commencing with Section 12850) of Part 6 of
Division 6).

(c) The purposes described in subdivision (a) include costs
incurred in connection with either of the following:

(1) The granting of credits or loans to local agencies, as
applicable, pursuant to Sections 12585.3 and 12585.4, subdivision
(d) of Section 12585.5, and Sections 12866.3 and 12866.4.

(2) The implementation of Chapter 3.5 (commencing with
Section 12840) of Part 6 of Division 6.

 

Chapter   begin insert 13. end insert Fiscal Provisions

 

begin insert 79800. end insert   

(a) Bonds in the total amount of eight billion seven
hundred million dollars ($8,700,000,000), or so much thereof as
is necessary, not including the amount of any refunding bonds
issued in accordance with Section 79812, may be issued and sold
to provide a fund to be used for carrying out the purposes
expressed in this division and to reimburse the General Obligation
Bond Expense Revolving Fund pursuant to Section 16724.5 of the
Government Code. The bonds, when sold, shall be and constitute
valid and binding obligations 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 the 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 79801. 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, 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 79802. end insert   

(a) Solely for the purpose of authorizing the issuance
and sale, pursuant to the State General Obligation Bond Law, of
the bonds authorized by this division, the Clean, Safe, and Reliable
Drinking Water Supply Finance Committee is hereby created. For
purposes of this division, the Clean, Safe, and Reliable Drinking
Water Supply Finance Committee is “the committee” as that term
is used in the State General Obligation Bond Law.

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

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

(d) A majority of the members of the committee shall constitute
a quorum of the committee, and may act for the committee.

begin insert 79803. end insert   

The committee shall determine whether or not it is
necessary or desirable to issue bonds authorized pursuant to this
division 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 79804. end insert   

“Board,” as defined in Section 16722 of the
Government Code for the purposes of compliance with the State
General Obligation Bond Law, means the department.

begin insert 79805. 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, and it is the duty of all officers charged by law with
any duty in regard to the collection of the revenue to do and
perform each and every act which is necessary to collect that
additional sum.

begin insert 79806. 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 that is necessary to carry out the provisions of
Section 79809, appropriated without regard to fiscal years.

begin insert 79807. 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 79809. The amount of the request shall not
exceed the amount of the unsold bonds that the committee has, by
resolution, authorized to be sold for the purpose of carrying out
this division. The board shall execute those documents required
by the Pooled Money Investment Board to obtain and repay the
loan. Any amounts loaned shall be deposited in the fund to be
allocated in accordance with this division.

begin insert 79808. end insert   

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

begin insert 79809. 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 or amounts not to exceed the amount
of the unsold bonds that have been authorized by the committee
to be sold for the purpose of carrying out this division less any
amount borrowed pursuant to Section 79807. Any amounts
withdrawn shall be deposited in the fund. Any money made
available under this section shall be returned to the General Fund,
with interest at the rate earned by the money in the Pooled Money
Investment Account, from proceeds received from the sale of bonds
for the purpose of carrying out this division.

begin insert 79810. end insert   

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

begin insert 79811. 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 proportionately by each program funded
through this division by the applicable bond sale.

begin insert 79812. 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 electors of the state for the
issuance of the bonds under this division shall include approval
of the issuance of any bonds issued to refund any bonds originally
issued under this division or any previously issued refunding bonds.

begin insert 79813. 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   

end insert

begin 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 Statutes of 2012, is repealed. end insert

begin insert

begin insert SEC. 4. end insert   

end insert begin insert

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

end insert

begin insert

begin insert SEC. 5. end insert   

end insert begin insert

Notwithstanding Sections 13115 and 13117 of the
Elections Code, Section 2 of this act shall be placed as the first
ballot measure on the November 4, 2014, general election ballot
and shall be designated as Proposition 1.

end insert

begin insert

begin insert SEC. 6. end insert   

end insert begin insert

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

end insert

begin insert

begin insert SEC. 7. end insert   

end insert begin 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:

end insert begin insert

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

end insert

begin delete

SECTION 1.  

Section 22202 of the Financial Code is amended
to read:

22202.  

“Charges” do not include any of the following:

(a) Commissions received as a licensed insurance agent or
broker in connection with insurance written as provided in Section
22313.

(b) Amounts not in excess of the amounts set forth in subdivision
(c) of Section 3068 of the Civil Code paid to holders of possessory
liens, imposed pursuant to Chapter 6.5 (commencing with Section
3067) of Title 14 of Part 4 of Division 3 of the Civil Code, to
release motor vehicles that secure loans subject to this division.

(c) Court costs, excluding attorney’s fees, incurred in a suit and
recovered against a debtor who defaults on his or her loan.

(d) Fees paid to a licensee for the privilege of participating in
an open-end credit program, which fees are to cover administrative
costs and are imposed upon executing the open-end loan agreement,
and on annual renewal dates or anniversary dates thereafter.

(e) Amounts received by a licensee from a seller, from whom
the borrower obtains money, goods, labor, or services on credit,
in connection with a transaction under an open-end credit program
that are paid or deducted from the loan proceeds paid to the seller
at the direction of the borrower and that are an obligation of the
seller to the licensee for the privilege of allowing the seller to
participate in the licensee’s open-end credit program. Amounts
received by a licensee from a seller pursuant to this subdivision
may not exceed 6 percent of the loan proceeds paid to the seller
at the direction of the borrower.

(f) Actual and necessary fees not exceeding five hundred dollars
($500) paid in connection with the repossession of a motor vehicle
to repossession agencies licensed pursuant to Chapter 11
(commencing with Section 7500) of Division 3 of the Business
and Professions Code, provided that the licensee complies with
Sections 22328 and 22329, and actual fees paid to a licensee in
conformity with Sections 26751 and 41612 of the Government
Code in an amount not exceeding the amount specified in those
provisions of the Government Code.

(g) Moneys paid to, and commissions and benefits received by,
a licensee for the sale of goods, services, or insurance, whether or
not the sale is in connection with a loan, that the buyer by a
separately signed authorization acknowledges is optional, if sale
of the goods, services, or insurance has been authorized pursuant
to Section 22154.

end delete