Amended in Senate April 21, 2014

Senate Bill No. 1250

Introduced by Senator Hueso

February 20, 2014

begin delete An act relating to water, and declaring the urgency thereof, to take effect immediately. end delete begin insert 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 2012, relating to a safe drinking water and water supply reliability 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 1250, as amended, Hueso. begin delete Safe, Clean, and Reliable Drinking Water Supply Act of 2012. end delete begin insert Safe, Clean, and Reliable Drinking Water Supply Act of 2014. end insert

begin insert

(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.

end insert begin insert

This bill would repeal these provisions.

end insert begin insert

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

end insert begin insert

This bill would enact the Safe, Clean, and Reliable Drinking Water Supply Act of 2014, which, if adopted by the voters, would authorize the issuance of bonds in the amount of $9,450,000,000 pursuant to the State General Obligation Bond Law to finance a safe drinking water and water supply program.

end insert begin insert

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

end insert begin insert

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

end insert begin delete

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.

end delete begin delete

This bill would declare the intent of the Legislature to enact legislation that would amend the act for the purpose of reducing the bond.

end delete begin delete

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

end delete

Vote: ²⁄₃. 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:

begin insert

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 SAFE, CLEAN, 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
Safe, Clean, 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.

(c) Providing adequate supplies of clean, safe, and reliable
drinking water is vital to keeping California’s economy growing
and strong.

(d) Encouraging water conservation and recycling are
commonsense methods to make more efficient use of existing water
supplies.

(e) Protecting lakes, rivers, and streams from pollution, cleaning
up polluted groundwater supplies, and protecting water sources
that supply the entire state are crucial to providing a reliable
supply of drinking water and protecting the state’s natural
resources.

 

Chapter   begin insert 3. end insert Definitions

 

begin insert 79702. end insert   

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

(a) “Bay Delta Conservation Plan” means the final plan
prepared pursuant to the planning agreement regarding the Bay
Delta Conservation Plan, dated October 6, 2006.

(b) “Bay-Delta Estuary” means the Delta, Suisun Bay, and
Suisun Marsh.

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

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

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

(f) “Delta” means the Sacramento-San Joaquin Delta, as
defined in Section 12220.

(g) “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.

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

(i) “Delta Plan” has the meaning set forth in Section 85059.

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

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

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

(m) “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.

(n) “Fund” means the Safe, Clean, and Reliable Drinking Water
Supply Fund of 2014 created by Section 79716.

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

(p) “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.

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

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

(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).

 

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   

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

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 8
(commencing with Section 79750).

begin insert 79708. end insert   

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

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

begin insert 79710. end insert   

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

begin insert 79711. end insert   

Funds provided by this division shall not be expended
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 or for costs for groundwater clean up pursuant to the
requirements of Chapter 10 (commencing with Section 79770).
Funds provided by this division may be used for environmental
enhancements or other public benefits.

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.

begin insert 79714. end insert   

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

begin insert 79715. end insert   

The Legislature may enact legislation necessary to
implement programs funded by this division, except as otherwise
provided in Section 79759.5.

begin insert 79716. end insert   

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

 

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

 

begin insert 79720. end insert   

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 that improve
water quality or help provide clean and safe 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 and safe drinking water
supplies that the community can sustain over the long term.

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

begin insert 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 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   

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

begin insert 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.

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

(3) Establishing connections to an adjacent water system.

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

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

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

begin insert 79727. end insert   

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

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

begin insert 79729. 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 Water Supply Reliability and Drought
Preparedness

 

begin insert 79730. end insert   

The sum of one billion dollars ($1,000,000,000) shall
be available, upon appropriation by the Legislature, from the fund
to the department for competitive grants and expenditures in
accordance with Section 79731.

begin insert 79731. end insert   

(a) The department shall award grants to eligible
projects that implement an adopted integrated regional water
management plan.

(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 receive funds
made available pursuant to Section 79730 until the urban water
management plan is prepared and submitted in accordance with
the requirements of that act.

(c) For the purposes of awarding a grant under this chapter,
the department shall require a local cost share of not less than 50
percent of the total costs of the project. The department may waive
or reduce the cost-sharing requirement for projects that directly
benefit a disadvantaged community or an economically distressed
area.

(d) Eligible projects are those included in adopted integrated
regional water management plans consistent with Part 2.2
(commencing with Section 10530) of Division 6, including, but not
limited to, local and regional surface water storage projects.

(e) The funding provided in Section 79730 shall be allocated
to each hydrologic region as identified in the California Water
Plan in accordance with this subdivision. 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. The department
may recognize multiple integrated regional water management
plans in each of the areas allocated funding. Funds made available
by this chapter shall be allocated as follows:

(1) North Coast: $45,000,000.

(2) San Francisco Bay: $132,000,000.

(3) Central Coast: $58,000,000.

(4) Los Angeles subregion: $198,000,000.

(5) Santa Ana subregion: $128,000,000.

(6) San Diego subregion: $87,000,000.

(7) Sacramento River: $76,000,000.

(8) San Joaquin River: $64,000,000.

(9) Tulare/Kern: $70,000,000.

(10) North/South Lahontan: $51,000,000.

(11) Colorado River Basin: $47,000,000.

(12) Mountain Counties Overlay: $44,000,000.

begin insert 79732. end insert   

Of the funds provided in Section 79730, not less than
10 percent shall be allocated to disadvantaged communities.

 

Chapter   begin insert 7. end insert Delta Sustainability

 

begin insert 79740. end insert   

(a) The Bay-Delta Estuary is a unique and
irreplaceable combination of environmental and economic
resources. Current management and use of the Delta is not
sustainable, and results in a high level of conflict among various
interests. Future Delta sustainability is threatened by changing
hydrology due to climate change, water diversions, flood risk,
seismic events, nonnative species, toxics, and other environmental
problems. Future management of the Delta must improve Delta
ecosystem health and improve the means of Delta water
conveyance in order to protect drinking water quality, improve
water supply reliability, restore ecosystem health, and preserve
agricultural and recreational values in the Delta. Future
management of the Delta must provide to counties and watersheds
of origin assurances that their priority to water resources will be
protected and that programs or facilities implemented or
constructed in the Delta will not result in redirection of
unmitigated, significant adverse impacts to the counties and
watershed of origin. Many sources of funding will be needed to
implement improved Delta management.

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

begin insert 79741. end insert   

The sum of two billion two hundred fifty million dollars
($2,250,000,000) shall be available, upon appropriation from the
fund, for grants and direct expenditures, as follows:

(a) (1) Seven hundred fifty million dollars ($750,000,000) for
projects, including grants to Delta counties and cities within the
Delta, that provide public benefits and support Delta sustainability
options, including projects and supporting scientific studies and
assessments that do any of the following:

(A) Ensure that urban and agricultural water supplies derived
from the Delta, including water supplies used within the Delta,
are not disrupted because of catastrophic failures of Delta levees
resulting from earthquakes, floods, land sinking, rising ocean
levels, or other forces.

(B) Assist in preserving economically viable and sustainable
agriculture and other economic activities in the Delta.

(C) Improve the quality of drinking water derived from the
Delta.

(D) Improve levee and flood control facilities and other vital
infrastructure necessary to protect Delta communities affected by
the implementation of this chapter.

(E) Provide physical improvements or other actions to create
waterflow and water quality conditions within the Delta to provide
adequate habitat for native fish and wildlife.

(F) Facilitate other projects that provide public benefits and
support Delta sustainability options approved by the Legislature,
including costs associated with planning, monitoring, and design
of alternatives, and project modifications and adaptations
necessary to achieve the goals of this chapter.

(G) Mitigate other impacts of water conveyance and ecosystem
restoration.

(H) Provide or improve water quality facilities and other
infrastructure.

(2) Of the funds provided in this subdivision, not less than fifty
million dollars ($50,000,000) shall be available for matching
grants for improvements to wastewater treatment facilities
upstream of the Delta to improve Delta water quality.

(3) Of the funds provided in this subdivision, up to two hundred
fifty million dollars ($250,000,000) may be expended in the Delta
to provide assistance to local governments and the local
agricultural economy due to loss of productive agricultural lands
for habitat and ecosystem restoration within the Delta.

(b) One billion five hundred million dollars ($1,500,000,000)
shall be available, upon appropriation from the fund, for grants
and direct expenditures, for projects to protect and enhance the
sustainability of the Delta ecosystem, including any of the
following:

(1) Projects for the development and implementation of the Bay
Delta Conservation Plan, consistent with Chapter 10 (commencing
with Section 2800) of Division 3 of the Fish and Game Code. The
projects shall be implemented through a cooperative effort among
regulatory agencies, regulated and potentially regulated entities,
and affected parties, including state and federal water contractors.
These funds may be expended for the preparation of environmental
documentation and environmental compliance.

(2) Other projects to protect and restore native fish and wildlife
dependent on the Delta ecosystem, including the acquisition of
water rights and the removal or reduction of undesirable invasive
species.

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

(4) Projects that reduce impacts of mercury contamination of
the Delta and its watersheds, and remediation and elimination of
continuing sources of mercury contamination.

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

(c) Funds provided by this chapter shall be available for
appropriation to, among other entities, the Sacramento-San
Joaquin Delta Conservancy for implementation consistent with
the Delta Plan.

begin insert 79742. end insert   

(a) A project that receives funding pursuant to
subdivision (a) of Section 79741 shall be eligible for funding
pursuant to other provisions of this division to the extent that the
combined state funding pursuant to this division does not exceed
50 percent of the total project costs.

(b) The department shall determine what constitutes a project
for the purposes of subdivision (a).

 

Chapter   begin insert 8. end insert Statewide Water System Operational
Improvement for Drought Preparedness

 

begin insert 79750. 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 79751. 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.

(e) Projects that improve dam stability in seismic events.

begin insert 79752. 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 79753. 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 79754. end insert   

In consultation with the Department of Fish and
Wildlife, the State Water Resources Control Board, and the
department, the commission shall develop and adopt, by regulation,
methods for quantification and management of public benefits
described in Section 79753 by December 15, 2016. The regulations
shall include the priorities and relative environmental value of
ecosystem benefits as provided by the Department of Fish and
Wildlife and the priorities and relative environmental value of
water quality benefits as provided by the State Water Resources
Control Board.

begin insert 79755. 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 79754 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 79753, 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 79754 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 79756. 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 79751, shall not exceed 50 percent of
the total costs of any project funded under this chapter.

(b) No project may be funded unless it provides ecosystem
improvements as described in paragraph (1) of subdivision (a) of
Section 79753 that are at least 50 percent of total public benefits
of the project funded under this chapter.

begin insert 79757. 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 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.

begin insert 79758. end insert   

Surface storage projects funded pursuant to this chapter
and described in subdivision (a) of Section 79751 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 79759. 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 79759.5. end insert   

(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   begin insert 9. end insert Protecting Rivers, Lakes, Streams, Coastal
Waters, and Watersheds

 

begin insert 79760. end insert   

(a) The sum of one billion three hundred million dollars
($1,300,000,000) shall be available, upon appropriation by the
Legislature from the fund, in accordance with this chapter, for
expenditures and 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 following
specified amounts shall be made available to the specified regions:

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

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

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

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

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

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

begin insert 79761. 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 and recreational opportunities to watersheds
and waterways that are compatible with habitat values and water
quality objectives.

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

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

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

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

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

begin insert 79762. 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 79763. end insert   

(a) Notwithstanding Section 79711, of the funds
authorized in Section 79760, the sum of five hundred million
dollars ($500,000,000) shall be available to fulfill the obligations
of the State of California in complying with the terms of any of the
following:

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

(2) The Quantification Settlement Agreement, as defined in
subdivision (a) of Section 1 of Chapter 617 of the Statutes of 2002.

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

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

(5) Other multiparty settlement agreements in effect as of
January 1, 2014, including the Tahoe Regional Planning Compact
set forth in Section 66801 of the Government Code.

(b) Of the funds authorized in Section 79760, two hundred fifty
million dollars ($250,000,000) shall be available to the Natural
Resources Agency to support projects of a state conservancy as
provided in the conservancy’s strategic plan.

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

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

begin insert 79764. end insert   

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

 

Chapter   begin insert 10. end insert Groundwater Sustainability

 

begin insert 79770. 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 79771. end insert   

(a) The sum of five hundred million dollars
($500,000,000) shall be available, upon appropriation by the
Legislature from the fund, for expenditures, grants, and loans for
projects to prevent or cleanup the contamination of groundwater
that serves or has served as a source of drinking water. Funds
appropriated pursuant to this section shall be available to the
implementing agency for projects necessary to protect public health
by preventing or reducing the contamination of groundwater that
serves or has served as a major source of drinking water for a
community.

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

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

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

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

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

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

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

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

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

begin insert 79772. 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 79773. 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 11. end insert Water Recycling Program

 

begin insert 79780. end insert   

The sum of five hundred million dollars ($500,000,000)
shall be available, upon appropriation by the Legislature from the
fund, 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
groundwater and seawater desalination and associated treatment,
storage, conveyance, and distribution facilities.

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

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

(e) Groundwater recharge infrastructure related to recycled
water.

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

begin insert 79782. end insert   

For projects funded pursuant to the funds made
available pursuant to Section 79780, at least a 50-percent local
cost share shall be required. That cost share may be suspended
or reduced for disadvantaged communities and economically
distressed areas.

begin insert 79783. end insert   

Projects funded pursuant to the funds made available
pursuant to Section 79780 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 79784. 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 12. end insert Fiscal Provisions

 

begin insert 79800. end insert   

(a) Bonds in the total amount of nine billion four
hundred fifty million dollars ($9,450,000,000), or so much thereof
as is necessary, not including the amount of any refunding bonds
issued in accordance with Section 79812 may be issued and sold
to provide a fund to be used for carrying out the purposes
expressed in this division and to reimburse the General Obligation
Bond Expense Revolving Fund pursuant to Section 16724.5 of the
Government Code. The bonds, when sold, shall be and constitute
a valid and binding obligation of the State of California, and the
full faith and credit of the State of California is hereby pledged
for the punctual payment of both principal of, and interest on, the
bonds as the principal and interest become due and payable.

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

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 (Chapter 4 (commencing with
Section 16720) of Part 3 of Division 4 of Title 2 of the Government
Code), and all of the provisions of that law apply to the bonds and
to this division and are hereby incorporated in this division as
though set forth in full in this division, except subdivisions (a) and
(b) of Section 16727 of the Government Code.

begin insert 79802. end insert   

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

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

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

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

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 in order to carry out the actions specified in this division
and, if so, the amount of bonds to be issued and sold. Successive
issues of bonds may be authorized and sold to carry out those
actions progressively, and it is not necessary that all of the bonds
authorized to be issued be sold at any one time.

begin insert 79804. end insert   

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

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

begin insert 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 moneys made
available under this section shall be returned to the General Fund,
with interest at the rate earned by the moneys in the Pooled Money
Investment Account, from proceeds received from the sale of bonds
for the purpose of carrying out this division.

begin insert 79810. end insert   

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

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, these
costs 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 voters of the state for the
issuance of the bonds under this division shall include approval
of the issuance of any bonds issued to refund any bonds originally
issued under this division or any previously issued refunding bonds.

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.

begin insert 79814. end insert   

Of the nine billion four hundred fifty million dollars
($9,450,000,000) in bonds authorized in this division, no more
than four billion seven hundred twenty-five million dollars
($4,725,000,000) shall be sold by the Treasurer before July 1,
2019.

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

Section 2 of this act shall take effect upon the approval
by the voters of the Safe, Clean, 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. 6. 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 ensure that California residents are provided with
safe, clean, and reliable drinking water at the earliest possible
date, it is necessary that this act take effect immediately.

end insert

begin delete

SECTION 1.  

It is the intent of the Legislature to enact
legislation that would amend the Safe, Clean, and Reliable
Drinking Water Supply Act of 2012 for the purpose of reducing
the $11,140,000,000 bond.

end delete

begin delete

SEC. 2.  

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 ensure that California residents are provided with
safe, clean, and reliable drinking water, it is necessary that this act
take effect immediately.

end delete