Amended in Senate May 7, 2014

Amended in Senate April 21, 2014

Senate Bill No. 1250

Introduced by Senator Hueso

February 20, 2014

An act to repeal and add Division 26.7 (commencing with Section 79700) of the Water Code, and to repeal Section 2 of Chapter 3 of the Seventh Extraordinary Session of the Statutes of 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.

LEGISLATIVE COUNSEL’S DIGEST

SB 1250, as amended, Hueso. Safe, Clean, and Reliable Drinking Water Supply Act of 2014.

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

This bill would repeal these provisions.

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

This bill would enact the Safe, 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 begin delete $9,450,000,000 end delete begin insert $10,150,000,000 end insert pursuant to the State General Obligation Bond Law to finance a safe drinking water and water supply program.

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

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

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

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

SECTION 1.  

Division 26.7 (commencing with Section 79700)
of the Water Code, as added by Section 1 of Chapter 3 of the
Seventh Extraordinary Session of the Statutes of 2009, is repealed.

SEC. 2.  

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

 

Division 26.7.  THE SAFE, CLEAN, AND RELIABLE
DRINKING WATER SUPPLY ACT OF 2014

 

Chapter  1. Short Title

 

79700.  

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

 

Chapter  2. Findings and Declarations

 

79701.  

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.

begin insert

(f) 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.

end insert

 

Chapter  3. Definitions

 

79702.  

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

begin delete

(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.

end delete begin delete

(b)

end delete

begin insert (a) end insert  “Bay-Delta Estuary” means the Delta, Suisun Bay, and
Suisun Marsh.

begin delete

(c)

end delete

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

begin delete

(d)

end delete

begin insert (c) end insert  “Commission” means the California Water Commission.

begin delete

(e)

end delete

begin insert (d) end insert  “Committee” means the Safe, Clean, and Reliable Drinking
Water begin delete Supply end delete Finance Committee created by Section 79802.

begin delete

(f)

end delete

begin insert (e) end insert  “Delta” begin delete means the Sacramento-San Joaquin Delta, end delete begin insert has the
same meaning end insert as defined in Section begin delete 12220 end delete begin insert 85058 end insert .

begin insert

(f) “Delta Conservancy” means the Sacramento-San Joaquin
Delta Conservancy established in Section 32320 of the Public
Resources Code.

end insert

(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.

begin insert

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

end insert begin delete

(s)

end delete

begin insert (t) end insert  “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  4. General Provisions

 

79705.  

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

79706.  

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 begin delete State Water Resources Control Board end delete begin insert state
board end insert .

79707.  

Chapter 3.5 (commencing with Section 11340) of Part
1 of Division 3 of Title 2 of the Government Code does not apply
to the development or implementation of programs or projects
authorized or funded under this division other than Chapter 8
(commencing with Section 79750).

79708.  

(a)  begin delete Prior to end delete begin insert Before end insert 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. begin insert 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. end insert

(b)  begin delete Prior to end delete begin insert Before end insert disbursing grants, the state agency shall
conduct three public meetings to consider public comments begin delete prior
to end delete begin insert before end insert 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.

79709.  

It is the intent of the people that the investment of public
funds pursuant to this division will result in public benefits.

79710.  

begin insert (a) end insert begin insert   end insert The California State Auditor shall annually conduct
a programmatic review and an audit of expenditures from the fund.
begin delete The end delete begin insert Notwithstanding Section 10231.5 of the Government Code,
the end insert 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

(b) A report submitted pursuant to subdivision (a) shall be
submitted in compliance with Section 9795 of the Government
Code

end insert

79711.  

begin insert (a) end insert begin insert   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 cleanup 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

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

end insert begin insert

(1) The acquisition involves a long-term water transfer, as
described in Section 1735, a purchase of water, or other agreement
that results in enhanced stream flow such as reservoir reoperation.

end insert begin insert

(2) The Department of Fish and Wildlife determines that the
acquisition will provide fisheries or ecosystem benefits or
improvements.

end insert

79712.  

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.

79713.  

(a) This division does not diminish, impair, or
otherwise affect in any manner whatsoever any area of origin,
watershed of origin, county of origin, or any other water rights
protections, including, but not limited to, rights to water
appropriated begin delete prior to end delete begin insert before end insert 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 begin delete the end delete 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

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

end insert

79714.  

begin insert (a) end insert begin insert   end insert Eligible applicants under this division are public
agencies, nonprofit organizations, public utilities, begin insert federally
recognized Indian tribes, state Indian tribes listed on the Native
American Heritage Commission’s California Tribal Consultation
List, end insert 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

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

end insert

79715.  

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

79716.  

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.

begin insert

begin insert 79717. end insert   

All references in this division to other provisions of law
shall incorporate those provisions as they may be amended.

end insert

 

Chapter  5. Clean, Safe, and Reliable Drinking Water

 

79720.  

The sum of nine hundred million dollars ($900,000,000)
shall be available, upon appropriation by the Legislature from the
fund, begin insert to the state board end insert for expenditures, grants, and loans for
projects that improve water quality or help provide clean and safe
drinking water to all Californians.

79721.  

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

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

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

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

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

(e)  begin delete Improve water quality of surface water streams, end delete begin insert Implement
stormwater quality projects, end insert 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.

79722.  

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

(b)  begin delete An agency administering grants or loans for the purposes
of this chapter end delete begin insert The state board end insert 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.

79724.  

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

79725.  

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.

79726.  

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

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

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

(3) Establishing connections to an adjacent water system.

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

(b) The begin delete administering entity end delete begin insert state board end insert 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.

79727.  

(a) Of the funds authorized in Section 79720, four
hundred million dollars ($400,000,000) shall be available for grants
and loans for public water system infrastructure improvements
and related actions to meet safe drinking water standards, ensure
affordable drinking water, or both. Priority shall be given to
projects that provide treatment for contamination or access to an
alternate drinking water source or sources for small community
water systems or state small water systems in disadvantaged
communities whose drinking water source is impaired by chemical
and nitrate contaminants and other health hazards identified by
the implementing agency. Eligible recipients serve disadvantaged
communities and are public agencies or incorporated mutual water
companies. The implementing agency may make grants for the
purpose of financing feasibility studies and to meet the eligibility
requirements for a construction grant. Eligible expenses may
include initial 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 begin delete administering entity end delete begin insert state board end insert may expend up to
twenty-five million dollars ($25,000,000) of the funds allocated
in subdivision (a) for technical assistance to eligible communities.

79729.  

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

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

(c) Funding authorized pursuant to this chapter shall include
funding for technical assistance to disadvantaged communities.
The begin delete agency administering this funding end delete begin insert state board end insert 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 begin delete agency
administering the funding end delete begin insert board end insert .

 

Chapter  6. Water Supply Reliability and Drought
Preparedness

 

79730.  

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

begin insert

(b) Funds made available pursuant to this section shall be
available for appropriation to, and shall be administered by, the
department in collaboration with the state board.

end insert

79731.  

(a) The department begin insert and state board end insert 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.

begin insert

(c) An agricultural water supplier that does not prepare, adopt,
and submit its agricultural water management plan in accordance
with the Agricultural Water Management Planning Act (Part 2.8
(commencing with Section 10800) of Division 6) is ineligible to
apply for funds made available pursuant to this chapter until the
agricultural water management plan is prepared and submitted
in accordance with the requirements of that act.

end insert begin insert

(d) 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
groundwater management plan is prepared and submitted in
accordance with the requirements of that part.

end insert begin delete

(c)

end delete

begin insert (e) end insert  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.

begin delete

(d)

end delete

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

begin delete

(e)

end delete

begin insert (g) end insert  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: begin delete $45,000,000 end delete begin insert forty-five million dollars
($45,000,000) end insert .

(2) San Francisco Bay: begin delete $132,000,000 end delete begin insert one hundred thirty-two
million dollars ($132,000,000) end insert .

(3) Central Coast: begin delete $58,000,000 end delete begin insert fifty-eight million dollars
($58,000,000) end insert .

(4) Los Angeles subregion: begin delete $198,000,000 end delete begin insert one hundred
ninety-eight million dollars ($198,000,000) end insert .

(5) Santa Ana subregion: begin delete $128,000,000 end delete begin insert one hundred
twenty-eight million dollars ($128,000,000) end insert .

(6) San Diego subregion: begin delete $87,000,000 end delete begin insert eighty-seven million
dollars ($87,000,000) end insert .

(7) Sacramento River: begin delete $76,000,000 end delete begin insert seventy-six million dollars
($76,000,000) end insert .

(8) San Joaquin River: begin delete $64,000,000 end delete begin insert sixty-four million dollars
($64,000,000) end insert .

(9) Tulare/Kern: begin delete $70,000,000 end delete begin insert seventy million dollars
($70,000,000) end insert .

(10) North/South Lahontan: begin delete $51,000,000 end delete begin insert fifty-one million dollars
($51,000,000) end insert .

(11) Colorado River Basin: begin delete $47,000,000 end delete begin insert forty-seven million
dollars ($47,000,000) end insert .

(12) Mountain Counties Overlay: begin delete $44,000,000 end delete begin insert forty-four million
dollars ($44,000,000) end insert .

79732.  

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

begin insert

begin insert 79733. end insert   

(a) The sum of three hundred fifty million dollars
($350,000,000) shall be available, upon appropriation by the
Legislature, from the fund 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.

end insert

 

Chapter  7. Delta Sustainability

 

79740.  

(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.

79741.  

begin insert (a) end insert begin insert   end insert begin insert (1) end insert begin insert   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 begin delete expenditures, as
follows: end delete begin insert expenditures. end insert

begin insert

(2) Except as provided in paragraph (3), funds provided
pursuant to this chapter shall be appropriated to the Delta
Conservancy.

end insert begin insert

(3) Funds to maintain and improve Delta levees or other flood
management facilities shall be appropriated to the department.

end insert begin delete

(a)

end delete

begin insert (b) end insert  (1)  begin delete Seven end delete begin insert Of the funds provided in subdivision (a), seven end insert
hundred fifty million dollars ($750,000,000) begin insert shall be available end insert 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.

begin delete

(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.

end delete begin delete

(3)

end delete

begin insert (2) end insert  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.

begin delete

(b)

end delete

begin insert (c) end insert   begin delete One end delete begin insert Of the funds provided in subdivision (a), one end insert 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 begin delete 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 end delete begin insert that protect, restore,
and enhance the Delta ecosystem end insert .

(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.

begin delete

(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.

end delete

79742.  

(a) A project that receives funding pursuant to
subdivision begin delete (a) end delete begin insert (b) end insert 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)  begin delete The department end delete begin insert Except as provided in paragraph (3) of
subdivision (a) of Section 79741, the Delta Conservancy end insert shall
determine what constitutes a project for the purposes of subdivision
(a). begin insert The department shall determine what constitutes a project for
purposes of subdivision (a) with respect to maintaining and
improving Delta levees and other flood management facilities. end insert

 

Chapter  8. Statewide Water System Operational
Improvement for Drought Preparedness

 

79750.  

(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.

79751.  

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 delete

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

end delete

79752.  

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.

79753.  

(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.

79754.  

In consultation with the Department of Fish and
Wildlife, the begin delete State Water Resources Control Board end delete begin insert state board end insert ,
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 begin delete State Water Resources
Control Board end delete begin insert state board end insert .

79755.  

(a) Except as provided in subdivision (c), begin delete no end delete funds
allocated pursuant to this chapter begin delete may end delete begin insert shall not end insert 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.

79756.  

(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)  begin delete No end delete begin insert A end insert project begin delete may end delete begin insert shall not end insert 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.

79757.  

(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.

79758.  

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

begin insert 79758.5. end insert   

From the funds provided in subdivision (b) of Section
75750, the commission shall make twenty-five million dollars
($25,000,000) available to the department for studying the
feasibility of additional surface storage projects. Funds provided
by this section are not available to study the feasibility of any
storage project identified in the CALFED Bay-Delta Programmatic
Record of Decision, dated August 28, 2000.

end insert

79759.  

(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.

79759.5.  

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

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

 

Chapter  9. Protecting Rivers, Lakes, Streams, Coastal
Waters, and Watersheds

 

79760.  

begin delete (a) end delete begin delete   end delete 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 begin delete in accordance
with statewide priorities end delete begin insert that protect and improve California
watersheds, wetlands, forests, and floodplains end insert .

begin delete

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

end delete begin delete

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

end delete begin delete

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

end delete begin delete

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

end delete begin delete

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

end delete begin delete

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

end delete begin delete

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

end delete

begin delete

79761.  

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).

end delete begin insert

begin insert 79761. end insert   

(a) Of the funds provided in Section 79760, five
hundred fifty million dollars ($550,000,000) shall be available for
appropriation as follows:

(1) Baldwin Hills Conservancy: six million three hundred
thousand dollars ($6,300,000).

(2) California Tahoe Conservancy: eighteen million eight
hundred thousand dollars ($18,800,000).

(3) Coachella Valley Mountains Conservancy: twelve million
six hundred thousand dollars ($12,600,000).

(4) San Diego River Conservancy: six million three hundred
thousand dollars ($6,300,000).

(5) San Gabriel and Lower Los Angeles Rivers and Mountains
Conservancy: twenty-five million one hundred thousand dollars
($25,100,000).

(6) San Joaquin River Conservancy: twelve million six hundred
thousand dollars ($12,600,000).

(7) Santa Monica Mountains Conservancy: forty million nine
hundred thousand dollars ($40,900,000).

(8) Sierra Nevada Conservancy: forty million nine hundred
thousand dollars ($40,900,000).

(9) State Coastal Conservancy: two hundred twenty million
dollars ($220,000,000).

(10) Wildlife Conservation Board: one hundred thirty-five
million one hundred thousand dollars ($135,100,000).

(11) California Ocean Protection Council: thirty-one million
four hundred thousand dollars ($31,400,000).

(b) Of the funds allocated to the State Coastal Conservancy
pursuant to paragraph (9) of subdivision (a), seventy-eight million
six hundred thousand dollars ($78,600,000) are available as
follows:

(1) Thirty-one million four hundred thousand dollars
($31,400,000) shall be available for projects that help restore
coastal salmonid populations.

(2) Forty-seven million two hundred thousand dollars
($47,200,000) shall be available for flood control projects on
public lands that provide critical flood, water quality, and wetland
ecosystem benefits to the San Francisco Bay region.

end insert

79762.  

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.

79763.  

(a)  begin insert (1) end insert begin insert   end insert 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:

begin delete

(1)

end delete

begin insert (A) end insert  The February 18, 2010, Klamath Basin Restoration
Agreement or Klamath Hydroelectric Settlement Agreement.

begin delete

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

end delete begin insert

(B) Chapters 611, 612, and 613 of the Statutes of 2003, which
were enacted to facilitate the execution and implementation of the
Quantification Settlement Agreement, including the restoration of
the Salton Sea.

end insert begin delete

(3)

end delete

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

begin delete

(4)

end delete

begin insert (D) end insert  Section 3406(d) of Title 34 of Public Law 102-575.

begin delete

(5)

end delete

begin insert (E) end insert   begin delete Other multiparty settlement agreements in effect as of
January 1, 2014, including the end delete begin insert The end insert Tahoe Regional Planning
Compact set forth in Section 66801 of the Government Code.

begin insert

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

end insert

(b) Of the funds authorized in Section 79760, two hundred fifty
million dollars ($250,000,000) shall be available to the begin delete Natural
Resources Agency to support projects of a state conservancy as
provided in the conservancy’s strategic plan end delete begin insert state board for
projects that develop, implement, or improve a stormwater capture
and use plan consistent with Part 2.3 (commencing with Section
10560) of Division 6 that captures and puts to beneficial use
stormwater or dry weather runoff end insert .

begin delete

(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.

end delete begin insert

(c) Stormwater capture and use projects developed pursuant to
an adopted integrated regional water management plan in
compliance with Part 2.2 (commencing with Section 10530) of
Division 6 are also eligible for funding under this section if those
projects were identified and developed in substantive compliance
with Part 2.3 (commencing with Section 10560) of Division 6.

end insert begin insert

(d) Projects eligible for funding under this section shall assist
in the capture and reuse of stormwater or dry weather runoff.
Eligible projects include any of the following:

end insert begin insert

(1) Projects that capture, convey, treat, or put to beneficial use
stormwater or dry weather runoff.

end insert begin insert

(2) The development of stormwater capture and reuse plans
pursuant to Part 2.3 (commencing with Section 10560) of Division
6.

end insert begin insert

(3) Decision support tools, data acquisition, and data analysis
to identify and evaluate the benefits and costs of potential
stormwater capture and reuse projects.

end insert begin insert

(4) Projects that, in addition to capturing and reusing
stormwater or dry weather runoff, improve water quality and
provide public benefits, such as augmentation of water supply,
flood control, open space, and recreation, and projects designed
to mimic or restore natural watershed functions.

end insert begin insert

(e) The state board shall grant special consideration to plans
or projects that provide multiple benefits such as water quality,
water supply, flood control, natural lands, or recreation.

end insert begin insert

(f) The state board shall require a 50 percent local cost share
for grant funds, but may suspend or reduce the matching
requirements for projects that capture or reuse stormwater or dry
weather runoff in disadvantaged communities.

end insert begin insert

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

end insert

79764.  

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  10. Groundwater Sustainability

 

79770.  

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.

79771.  

(a) The sum of five hundred million dollars
($500,000,000) shall be available, upon appropriation by the
Legislature from the fund, begin insert to the state board end insert 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) 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.

79772.  

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, begin delete nitrosodimethylamine end delete
begin insert N-nitrosodimethylamine end insert , bromide, iron, manganese, and uranium.

79773.  

(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)  begin delete An agency administering grants or loans for the purposes of
this chapter end delete begin insert The state board end insert 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 begin delete agency administering this funding end delete begin insert state board end insert shall operate
a multidisciplinary technical assistance program for small and
disadvantaged communities.

 

Chapter  11. Water Recycling Program

 

79780.  

The sum of five hundred million dollars ($500,000,000)
shall be available, upon appropriation by the Legislature from the
fund, begin insert to the state board end insert 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.

79782.  

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.

79783.  

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.

79784.  

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.

 

begin insert

Chapter   begin insert 12. end insert begin insert Water Conservation end insert

end insert

 

begin insert

begin insert 79790. end insert   

The sum of two hundred fifty million dollars
($250,000,000) shall be available, upon appropriation by the
Legislature from the fund, to the department for direct expenditures
and grants for water conservation and water use efficiency plans,
projects, and programs, including any of the following:

(a) Urban water conservation plans, projects, and programs,
including regional projects and programs, implemented to achieve
urban water use targets developed pursuant to Chapter 3
(commencing with Section 10608.16) of Part 2.55 of Division 6.
Priority for funding shall be given to 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) Agricultural water use efficiency projects and programs
developed pursuant to Part 2.8 (commencing with Section 10800)
of Division 6.

(c) Agricultural water management plans developed pursuant
to Part 2.8 (commencing with Section 10800) of Division 6.

end insert begin insert

begin insert 79791. end insert   

The department shall award grants under this chapter
in a competitive process that considers, as primary factors, the
local and statewide conservation and water use efficiency benefits
of the measures proposed for grants.

end insert begin insert

begin insert 79792. end insert   

Section 1011 applies to all conservation measures that
an agricultural water supplier or an urban water supplier
implements with funding under this chapter. This section does not
limit the application of Section 1011 to any other measures or
projects implemented by a water supplier.

end insert

 

begin insert

Chapter   begin insert 13. end insert begin insert Local and Regional Storage Projects end insert

end insert

 

begin insert

begin insert 79795. end insert   

(a) Notwithstanding Section 13340 of the Government
Code, the sum of one hundred million dollars ($100,000,000) is
hereby continuously appropriated from the fund, without regard
to fiscal years, to the department for public benefits associated
with all of the following:

(1) Local and regional surface and groundwater storage projects
that improve the operation of water systems in the state.

(2) Local and regional conjunctive use and reservoir reoperation
projects.

(3) Local and regional projects that improve dam stability in
seismic events.

(b) Projects shall be selected by the department through a
competitive public process that ranks potential projects based
upon the expected return for public investment as measured by the
magnitude of the public benefits provided.

(c) Project solicitation and evaluation guidelines shall be
developed by the department pursuant to Section 79708.

(d) 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 chapter.

end insert

 

Chapter   begin delete 12. end delete begin insert 14. end insert Fiscal Provisions

 

79800.  

(a) Bonds in the total amount of begin delete nine end delete begin insert ten end insert billion begin delete four end delete
begin insert one end insert hundred fifty million dollars begin delete ($9,450,000,000) end delete
begin insert ($10,150,000,000) end insert , or so much thereof as is necessary, not
including the amount of any refunding bonds issued in accordance
with Section 79812 may be issued and sold to provide a fund to
be used for carrying out the purposes expressed in this division
and to reimburse the General Obligation Bond Expense Revolving
Fund pursuant to Section 16724.5 of the Government Code. The
bonds, when sold, shall be and constitute a valid and binding
obligation of the State of California, and the full faith and credit
of the State of California is hereby pledged for the punctual
payment of both principal of, and interest on, the bonds as the
principal and interest become due and payable.

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

79801.  

The bonds authorized by this division shall be prepared,
executed, issued, sold, paid, and redeemed as provided in the State
General Obligation Bond Law (Chapter 4 (commencing with
Section 16720) of Part 3 of Division 4 of Title 2 of the Government
Code), and all of the provisions of that law apply to the bonds and
to this division and are hereby incorporated in this division as
though set forth in full in this division, except subdivisions (a) and
(b) of Section 16727 of the Government Code.

79802.  

(a) Solely for the purpose of authorizing the issuance
and sale pursuant to the State General Obligation Bond Law
(Chapter 4 (commencing with Section 16720) of Part 3 of Division
4 of Title 2 of the Government Code) of the bonds authorized by
this division, the 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.

79803.  

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

79804.  

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

79805.  

There shall be collected each year and in the same
manner and at the same time as other state revenue is collected,
in addition to the ordinary revenues of the state, a sum in an amount
required to pay the principal of, and interest on, the bonds each
year. It is the duty of all officers charged by law with any duty in
regard to the collection of the revenue to do and perform each and
every act that is necessary to collect that additional sum.

79806.  

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

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

(b) The sum that is necessary to carry out the provisions of
Section 79809, appropriated without regard to fiscal years.

79807.  

The board may request the Pooled Money Investment
Board to make a loan from the Pooled Money Investment Account
in accordance with Section 16312 of the Government Code for the
purpose of carrying out this division less any amount withdrawn
pursuant to Section 79809. The amount of the request shall not
exceed the amount of the unsold bonds that the committee has, by
resolution, authorized to be sold for the purpose of carrying out
this division. The board shall execute those documents required
by the Pooled Money Investment Board to obtain and repay the
loan. Any amounts loaned shall be deposited in the fund to be
allocated in accordance with this division.

79808.  

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

79809.  

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

79810.  

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

79811.  

Pursuant to Chapter 4 (commencing with Section
16720) of Part 3 of Division 4 of Title 2 of the Government Code,
the cost of bond issuance shall be paid out of the bond proceeds,
including premium, if any. To the extent the cost of bond issuance
is not paid from premiums received from the sale of bonds, these
costs shall be shared proportionately by each program funded
through this division by the applicable bond sale.

79812.  

The bonds issued and sold pursuant to this division
may be refunded in accordance with Article 6 (commencing with
Section 16780) of Chapter 4 of Part 3 of Division 4 of Title 2 of
the Government Code, which is a part of the State General
Obligation Bond Law. Approval by the voters of the state for the
issuance of the bonds under this division shall include approval
of the issuance of any bonds issued to refund any bonds originally
issued under this division or any previously issued refunding bonds.

79813.  

The proceeds from the sale of bonds authorized by this
division are not “proceeds of taxes” as that term is used in Article
XIII B of the California Constitution, and the disbursement of
these proceeds is not subject to the limitations imposed by that
article.

begin delete

79814.  

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 delete

SEC. 3.  

Section 2 of Chapter 3 of the Seventh Extraordinary
Session of the Statutes of 2009, as amended by Section 1 of
Chapter 74 of the Statutes of 2012, is repealed.

SEC. 4.  

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

SEC. 5.  

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

SEC. 6.  

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

In order to 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.