Bill Text: CA AB1331 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Clean, Safe, and Reliable Drinking Water Act of 2014.

Spectrum: Partisan Bill (Democrat 19-0)

Status: (Engrossed - Dead) 2014-06-18 - Withdrawn from committee. Re-referred to Com. on RLS. [AB1331 Detail]

Download: California-2013-AB1331-Amended.html
BILL NUMBER: AB 1331	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 18, 2014
	AMENDED IN SENATE  MARCH 5, 2014
	AMENDED IN SENATE  JANUARY 7, 2014
	AMENDED IN SENATE  SEPTEMBER 11, 2013
	AMENDED IN SENATE  AUGUST 26, 2013
	AMENDED IN ASSEMBLY  MAY 21, 2013
	AMENDED IN ASSEMBLY  APRIL 23, 2013
	AMENDED IN ASSEMBLY  APRIL 1, 2013

INTRODUCED BY   Assembly Member Rendon
    (   Coauthors:   Assembly Members 
 Ian Calderon   and Yamada   ) 

                        FEBRUARY 22, 2013

   An act to repeal and add Division 26.7 (commencing with Section
79700) of the Water Code, and to repeal Section 2 of Chapter 3 of the
Seventh Extraordinary Session of the Statutes of 2009, relating to a
 clean and safe   clean, safe, and reliable
 drinking water 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.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1331, as amended, Rendon.  Clean and Safe 
 Clean,   Safe, and Reliable  Drinking Water Act of
2014.
   (1) Existing law, the Safe, Clean, and Reliable Drinking Water
Supply Act of 2012, if approved by the voters, would authorize the
issuance of bonds in the amount of $11,140,000,000 pursuant to the
State General Obligation Bond Law to finance a safe drinking water
and water supply reliability program. Existing law provides for the
submission of the bond act to the voters at the November 4, 2014,
statewide general election.
   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  Clean and Safe  
Clean, Safe, and Reliable  Drinking Water Act of 2014, which, if
adopted by the voters, would authorize the issuance of bonds in the
amount of $8,000,000,000 pursuant to the State General Obligation
Bond Law to finance a  clean and safe   clean,
safe, and reliable  drinking water program.
   This bill would provide for the submission of the bond act to the
voters at the November 4, 2014, statewide general election.
   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.   Clean and Safe   Clean,
Safe, and Reliable  Drinking Water Act of 2014.


      CHAPTER 1.  SHORT TITLE


   79700.  This division shall be known, and may be cited, as the
 Clean and Safe   Clean, Safe, and Reliable
 Drinking Water Act of 2014.
      CHAPTER 2.  FINDINGS


   79701.  The people of California find and declare all of the
following:
   (a) Safeguarding supplies of clean and safe drinking water to
California's homes, businesses, and farms is an essential
responsibility of government, and critical to protecting the quality
of life for Californians.
   (b) Every Californian should have access to clean, safe, and
reliable drinking water, consistent with the human right to water and
Section 106.3. Providing adequate supplies of clean, safe, and
reliable drinking water is vital to keeping California's economy
growing and strong.
   (c) Climate change has impaired California's capacity to ensure
clean, safe, and reliable drinking water, as droughts have become
more frequent and more severe, and ecosystems have become stressed.
Higher temperatures mean less snow pack, which is the state's largest
water reservoir. Scientists project a loss of at least 25 percent of
the snow pack in the Sierra Nevada Mountains by 2050. The Colorado
River basin, which provides drinking water to southern California,
has experienced prolonged drought .
   (d) California's water infrastructure continues to age and
deteriorate. More than 50 years ago, Californians approved the
construction of the State Water Project. In the decades that
followed, California's water leaders developed the most sophisticated
system of state, federal, regional, and local water infrastructure
anywhere in the world. In recent decades, however, that water
infrastructure and the water environment on which it depends have
deteriorated.
   (e) In the years since the voters approved the State Water
Project, California's population has continued to grow, from less
than 16 million in 1960 to more than 37 million in 2010. A growing
population and a growing economy have put greater stress on
California's natural resources, including water. The Department of
Finance projects that California's population will reach 50 million
by 2049.
   (f) A growing population and a growing economy have put greater
stress on California's natural resources, including water.
Contamination of groundwater aquifers from economic activity in the
agricultural and industrial sectors has threatened vital drinking
water supplies.
   (g) As California and its water infrastructure have grown,
increasing demands on California's limited water supplies and
deteriorating aquatic ecosystems have led to intense conflict,
further threatening the reliability of clean and safe drinking water.

   79702.  The people of California find and declare all of the
following:
   (a) A sustainable water future can provide the means for
California to maintain vibrant communities, globally competitive
agriculture, and healthy ecosystems, which are all a part of the
quality of life that attracts so many to live in California.
   (b) Responding to climate change, ensuring clean and safe drinking
water, and preparing for California's continued growth will require
a diversified portfolio of strategies and investments to address the
many water challenges facing California.
   (c) Improving water quality offers one of the most immediate steps
to ensuring a clean and safe drinking water supply. California needs
water quality improvements at all parts of the hydrologic cycle,
from source water in the watersheds where the state's drinking water
supplies originate to wastewater treatment  and potential reuse
 to improve surface water quality for those who live downstream.

   (d) Addressing the challenges to the sustainability of the Delta,
the heart of the California water system, will help resolve some of
the conflicts that impede progress in improving the statewide water
system.
   (e) Enhancing regional water self-reliance  consistent with
Section 85021  offers a key strategy for addressing climate
change and improving water supply reliability. It helps the Delta and
it helps local communities to address their own water challenges.
Water conservation and water recycling form one part of the regional
water self-reliance strategy and are commonsense methods to make more
efficient use of existing water supplies.
      CHAPTER 3.  DEFINITIONS


   79703.  Unless the context otherwise requires, the definitions set
forth in this section govern the construction of this division, as
follows:
   (a) "CALFED Bay-Delta Program" means the program described in the
Record of Decision dated August 28, 2000.
   (b) "Commission" means the California Water Commission.
   (c) "Committee" means the  Clean and Safe  
Clean, Safe, and Reliable  Drinking Water Finance Committee
created by Section 79802.
   (d) "Delta" means the Sacramento-San Joaquin Delta, as defined in
Section 85058.
   (e) "Delta conveyance facilities" means facilities that convey
water directly from the Sacramento River to the State Water Project
or the federal Central Valley Project pumping facilities in the south
Delta.
   (f) "Delta counties" means the Counties of Contra Costa,
Sacramento, San Joaquin, Solano, and Yolo.
   (g) "Department" means the Department of Water Resources.
   (h) "Director" means the Director of Water Resources.
   (i) "Disadvantaged community" has the meaning set forth in
subdivision (a) of Section 79505.5.
   (j) "Economically distressed area" means a municipality with a
population of 20,000 persons or less, a rural county, or a reasonably
isolated and divisible segment of a larger municipality where the
segment of the population is 20,000 persons or less, with an annual
median household income that is less than 85 percent of the statewide
median household income, and with one or more of the following
conditions as determined by the department:
   (1) Financial hardship.
   (2) Unemployment rate at least 2 percent higher than the statewide
average.
   (3) Low population density.
   (k) "Fund" means the  Clean and Safe   Clean,
Safe, and Reliable  Drinking Water Fund of 2014 created by
Section 79717.
   (l) "Integrated regional water management plan" has the meaning
set forth in Section 10534.
   (m) "Nonprofit organization" means an organization qualified to do
business in California and qualified under Section 501(c)(3) of
Title 26 of the United States Code.
   (n) "Public agency" means a state agency or department, district,
joint powers authority, city, county, city and county, or other
political subdivision of the state.
   (o) "Rainwater" has the meaning set forth in subdivision (c) of
Section 10573.
   (p) "Severely disadvantaged community" has the meaning set forth
in subdivision (n) of Section 116760.20 of the Health and Safety
Code.
   (q) "Small community water system" means a community water system
that serves no more than 3,300 service connections or a yearlong
population of no more than 10,000 persons.
   (r) "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).
   (s) "State small water system" has the meaning set forth in
subdivision (n) of Section 116275 of the Health and Safety Code.
   (t) "Stormwater" has the meaning set forth in subdivision (e) of
Section 10573.
      CHAPTER 4.  GENERAL PROVISIONS


   79705.  An amount that equals not more than 5 percent of the funds
allocated for a financial assistance program pursuant to this
division may be used to pay the administrative costs of that program.

   79706.  Unless otherwise specified, up to 10 percent of funds
allocated for each program funded by this division may be expended
for planning and monitoring necessary for the successful design,
selection, and implementation of the projects authorized under that
program. This section shall not otherwise restrict funds ordinarily
used by an agency for "preliminary plans," "working drawings," and
"construction" as defined in the annual Budget Act for a capital
outlay project or grant project. Water quality monitoring data shall
be collected and reported to the State Water Resources Control Board
in a manner that is compatible and consistent with surface water
monitoring data systems or groundwater monitoring data systems
administered by the State Water Resources Control Board. Watershed
monitoring data shall be collected and reported to the Department of
Conservation in a manner that is compatible and consistent with the
statewide watershed program data system administered by the
Department of Conservation.
   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 9 (commencing with
Section 79760).
   79708.  (a) Prior to disbursing grants or loans pursuant to this
division, each state agency that receives an appropriation from the
funding made available by this division to administer a competitive
grant or loan program under this division shall develop and adopt
project solicitation and evaluation guidelines. The guidelines shall
include monitoring and reporting requirements and may include a
limitation on the dollar amount of grants or loans to be awarded. If
the state agency previously has developed and adopted project
solicitation and evaluation guidelines that comply with the
requirements of this subdivision, it may use those guidelines.
   (b) Prior to disbursing grants or loans, the state agency shall
conduct three public meetings to consider public comments prior to
finalizing the guidelines, as the implementing state agency
determines to be necessary. The state agency shall publish the draft
solicitation and evaluation guidelines on its Internet Web site at
least 30 days before any public meetings held pursuant to this
subdivision. 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:
   (a) The investment of public funds pursuant to this division will
result in public benefits that address the most  urgent
  critical  statewide needs and priorities for
public funding.
   (b) Beneficiaries pay for the benefits they receive from projects
funded pursuant to this division. 
   (c) Any relevant statute enacted before voters approve this bond
will be considered in the appropriation and expenditure of the
funding authorized by this division. 
   (d) 
    (c)  In the appropriation and expenditure of funding
authorized by this division, priority will be given to projects that
leverage private, federal, or local funding or produce the greatest
public benefit. 
   (e) 
   (d)  A funded project advances the purposes of the
chapter from which the project received funding. 
   (f) 
    (e)  In making decisions regarding water resources,
state and local water agencies use the best available science to
inform those decisions. 
   (g) 
    (f)  Special consideration will be given to projects
that employ new or innovative technology or practices, including
decision support tools that  demonstrate  
support  the  multiple benefits of integrating 
 integration of  multiple jurisdictions, including, but not
limited to, water supply, flood control, land use, and sanitation.

   (h) Projects funded with proceeds from this division will
contribute to improving the sustainability of local communities.
 
   (i) 
    (g)  Except as provided in Sections 79726 and 79727, the
costs of stewardship, operation, and maintenance of the projects
funded by this division will be paid from other sources of revenue
that are sustainable over the long term. 
   (j) 
    (h)  Evaluation of projects considered for funding
pursuant to this division will include review by professionals in the
fields relevant to the proposed project. 
   (k) 
    (i)  To the extent practicable, a project supported by
funds made available by this division will include signage informing
the public that the project received funds from the  Clean
and Safe   Clean, Safe, and Reliable  Drinking
Water Act of 2014. 
   (l) 
    (j)  Projects funded with proceeds from this division
will be consistent with Division 7 (commencing with Section 13000) of
this code and Section 13100 of the Government Code.
   79710.  (a) The California State Auditor shall annually conduct a
programmatic review and an audit of expenditures from the fund.
   (b) Notwithstanding Section 10231.5 of the Government Code, the
California State Auditor shall report its findings annually on or
before March 1 to the Governor and the Legislature, and shall make
the findings available to the public.
   (c) If an audit, required by statute, of a public agency that
receives funding authorized by this division is conducted pursuant to
state law and reveals any impropriety, the California State Auditor
or the Controller may conduct a full audit of any or all of the
activities of the public agency.
   (d) The state agency issuing any grant or loan with funding
authorized by this division shall require adequate reporting of the
expenditures of the funding from the grant or loan.
   79711.  (a) Funds provided by this division shall not be expended
to support or pay for the costs of environmental mitigation measures
 or environmental compliance obligations of any party
 except as part of the environmental mitigation costs of
projects financed by this division. Funds provided by this division
may be used for environmental enhancements or other public benefits.
   (b) Funds provided by this division shall not be expended for the
acquisition or transfer of water rights except for a 
permanent  dedication of water approved in accordance with
Section  1707   where the state board
specifies that the water is in addition to water that is required for
regulatory requirements as provided in subdivision (c) of Section
1707. The requirement that a dedication of water be permanent shall
not preclude the expenditure of funds provided by this division for
the initiation of the dedication as a short-term or temporary urgency
change, that is approved in accordance with Section 1707 and either
Chapter 6.6 (commencing with Section 1435) of, or Chapter 10.5
(commencing with Section 1725) of, Part 2 of Division 2, during the
period required to prepare any environmental documentation and for
approval of permanent dedication.   1707. 
   79712.  Funds provided by this division shall not be expended to
pay the costs of the design, construction, operation, mitigation, 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 prior to
December 19, 1914, provided under the law. This division does not
limit or affect the application of Article 1.7 (commencing with
Section 1215) of Chapter 1 of Part 2 of Division 2, Sections 10505,
10505.5, 11128, 11460, 11461, 11462, and 11463, and Sections 12200 to
12220, inclusive.
   (b) For the purposes of this division, an area that utilizes water
that has been diverted and conveyed from the Sacramento River
hydrologic region, for use outside the Sacramento River hydrologic
region or the Delta, shall not be deemed to be immediately adjacent
thereto or capable of being conveniently supplied with water
therefrom by virtue or on account of the diversion and conveyance of
that water through facilities that may be constructed for that
purpose after January 1, 2014.
   (c) Nothing in this division supersedes, limits, or otherwise
modifies the applicability of Chapter 10 (commencing with Section
1700) of Part 2 of Division 2, including petitions related to any new
conveyance constructed or operated in accordance with Chapter 2
(commencing with Section 85320) of Part 4 of Division 35.
   (d) Unless otherwise expressly provided, nothing in this division
supersedes, reduces, or otherwise affects existing legal protections,
both procedural and substantive, relating to the state board's
regulation of diversion and use of water, including, but not limited
to, water right priorities, the protection provided to municipal
interests by Sections 106 and 106.5, and changes in water rights.
Nothing in this division expands or otherwise alters the state board'
s existing authority to regulate the diversion and use of water or
the courts' existing concurrent jurisdiction over California water
rights.
   (e) Nothing in this division shall be construed to affect the
California Wild and Scenic Rivers Act (Chapter 1.4 (commencing with
Section 5093.50) of Division 5 of the Public Resources Code) and
funds authorized pursuant to this division shall not be available for
any project that could have an adverse effect on the  free
flowing condition of   values upon which  a wild
and scenic river or any other river  is  afforded
protections pursuant to the California Wild and Scenic Rivers Act.
   (f) Nothing in this division supersedes, limits, or otherwise
modifies the Sacramento-San Joaquin Delta Reform Act of 2009
(Division 35 (commencing with Section 85000)).
   79714.  Eligible applicants under this division are public
agencies, public utilities, federally recognized Indian tribes, state
Indian tribes listed on the Native American Heritage Commission's
California Tribal Consultation List, and nonprofit organizations. A
public agency may use funding authorized by this division to benefit
recipients of water from mutual water companies that operate a public
water system if the funding provides public benefits. To be eligible
for funding under this division, a project proposed by a public
utility shall have a clear and definite public purpose, benefit its
customers, and comply with Public Utilities Commission rules on
government funding for public utilities.
   79715.  The Legislature may enact legislation necessary to
implement programs funded by this division.
   79716.  (a) Unless otherwise specified, any state agency that has
the statutory authority to implement one or more of the purposes
specified in this bond may be eligible for appropriations from the
funding made available by this division.
   (b) Funding made available by this division shall not be
appropriated to a specific project.
   (c) Projects funded pursuant to this division  shall
  may  use the services of the California
Conservation Corps or certified community conservation corps, as
defined in Section 14507.5 of the Public Resources Code  ,
whenever feasible  . 
   (d) The Legislature may approve multiyear budget change proposals
for appropriation of the funds authorized by this division. 
   79717.  The proceeds of bonds issued and sold pursuant to this
division shall be deposited into the  Clean and Safe
  Clean, Safe, and Reliable  Drinking Water Fund of
2014, which is hereby created in the State Treasury. 
   79718.  (a) The funding authorized by this division shall be
subject to the oversight of a state agency established by statute for
that purpose.


   (b) 
    79718.   Each state agency that receives an
appropriation of funding made available by this division shall be
responsible for establishing metrics of success and reporting the
status of projects and all uses of the funding on the state's bond
accountability Internet Web site, as provided by statute.
      CHAPTER 5.  CLEAN AND SAFE DRINKING WATER


   79720.  The sum of one billion dollars ($1,000,000,000) 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.
   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) 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.
   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) 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.
   79723.  An applicant for a project to clean up a groundwater
aquifer shall demonstrate that a public agency has authority to
manage the water resources in that aquifer in order to be eligible
for funding pursuant to this chapter. This section does not apply to
projects that install treatment facilities at the wellhead, customer
connection, or the tap.
   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, nitrosodimethylamine, 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  shall   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 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.
   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 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.
   79728.  Of the funds authorized in Section 79720, up to one
hundred million dollars ($100,000,000) shall be available for
improving groundwater quality, including, but not limited to, the
costs of planning, design, and construction of improvements necessary
to resume delivery of safe drinking water.
   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
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 6.  PROTECTING RIVERS, LAKES, STREAMS, COASTAL WATERS,
AND WATERSHEDS


   79730.   (a)    The sum of one
billion five hundred million dollars ($1,500,000,000) shall be
available, upon appropriation by the Legislature from the fund, in
accordance with this chapter, for expenditures and 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,
with consideration of the population of each region: 

   (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.  
   79731.  (a) Of the funds made available by this chapter, the
following specified amounts shall be made available to the specified
regions for any purpose described in Section 79732 or for a
region-specific purpose or priority identified below:
   (1) Seventy-six million dollars ($76,000,000) for the North Coast
region with a priority for protection and restoration of anadromous
fish populations and coastal watersheds.
   (2) One hundred nine million dollars ($109,000,000) for the San
Francisco Bay Area, not including the Delta, with a priority for
protection and restoration of regional watersheds or watersheds that
provide water supply to the region.
   (3) One hundred nine million dollars ($109,000,000) for the Sierra
Nevada and Cascade Range region, with a priority for protection and
restoration of watersheds that produce water for the statewide water
system.
   (4) Seventy-six million dollars ($76,000,000) for the Central
Coast region, with a priority for protection of coastal resources.
   (5) Seventy-six million dollars ($76,000,000) for the Central
Valley region, not including the Delta.
   (6) One hundred forty-two million dollars ($142,000,000) for the
region in the jurisdiction of the California Regional Water Quality
Control Board, Los Angeles, with a priority for protection,
restoration, and connectivity of the Los Angeles or San Gabriel
Rivers and the tributaries of those rivers. Additional
region-specific purposes shall include the following:
   (A) Programs to support the State of California's exercise of its
sovereign right to manage the Los Angeles River in collaboration with
the communities through which it passes.
   (B) Multibenefit programs to protect and restore the Santa Monica
Mountains and San Gabriel Mountains watersheds.
   (C) Multibenefit programs that address water quality and water
supply issues related to the region's urban watersheds and
communities.
   (D) Multibenefit programs to improve connectivity and create
greenways along rivers, including projects that build connections
between the river and the neighborhoods through which it passes and
provide for river-based recreation.
   (E) Multibenefit programs that build partnerships between the
State of California and local governments near rivers and promote
education and engagement of the local communities, especially
disadvantaged communities, in decisions as to the management of
rivers.
   (7) Seventy-six million dollars ($76,000,000) for the region in
the jurisdiction of the California Regional Water Quality Control
Board, Santa Ana, with a priority for protection and restoration of
the Santa Ana River watershed or groundwater resources.
   (8) Seventy-six million dollars ($76,000,000) for the region in
the jurisdiction of the California Regional Water Quality Control
Board, San Diego, for protection and restoration of the region's
watersheds.
   (9) Ten million dollars ($10,000,000) for the region in the
jurisdiction of the California Regional Water Quality Control Board,
Lahontan or Colorado River Basin, for protection and restoration of
the region's watersheds and wetland resources.
   (b) In selecting projects for funding, a state agency that
receives an appropriation of funds available pursuant to this section
shall seek, consider, and incorporate comments from communities that
are adjacent or near the proposed project.
   (c) In order to promote community participation in watershed
protection efforts, a state agency that receives an appropriation of
funds available pursuant to this section may disburse funding to a
nonprofit organization before the organization has incurred expenses
for the project, subject to the state agency's careful supervision
and oversight of the organization's expenditure of funding authorized
by this chapter. 
    79731.   79732.   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).
    79732.   79733.   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.
    79733.   79734.   (a) Notwithstanding
Section 79711, of the funds authorized in Section 79730, 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
  provided in subdivision (a) of Section 1 of
Chapter 617 of the Statutes of 2002  and in Chapters 611, 612,
and 613 of the Statutes of 2003  .
   (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   The  Tahoe
Regional Planning Compact set forth in Section 66801 of the
Government Code  pursuant to Title 7.42 (commencing with Section
66905) of   the Government Code  .
   (b) Of the funds authorized in Section 79730, two hundred fifty
million dollars ($250,000,000) shall be available to the Natural
Resources  Agency   Agency, subject to
appropriation and direction by the Legislature,  to support
projects of a state  conservancy   conservancy,
not including the Delta 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.  The plan shall aggregate and
coordinate existing state planning efforts and shall be completed
within one year of voter approval of this division. 
   (d) In coordination with the Natural Resources Agency, all state
conservancies expending funds provided pursuant to subdivision (b)
shall provide  biannual   biennial  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   biennial
 written reports on total expenditures made and progress toward
meeting statewide priorities.
    79734.   79735.   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 7.  CLIMATE CHANGE  AND DROUGHT  PREPAREDNESS
FOR REGIONAL WATER SECURITY


   79740.  The sum of two billion dollars ($2,000,000,000) shall be
available, upon appropriation by the Legislature from the fund, for
expenditures and competitive grants and loans to projects that
respond to climate change and contribute to regional water security
as provided in this chapter.
   79741.  In order to improve regional water self-reliance 
security  and adapt to the effects on water supply arising
out of climate change, the purposes of this chapter are to:
   (a) Help water infrastructure systems adapt to climate change,
including, but not limited to, sea level rise.
   (b) Provide incentives for water agencies throughout each
watershed to collaborate in managing the region's water resources and
setting regional priorities for water infrastructure.
   (c) Improve regional water self-reliance, including projects that
reduce future reliance on the Delta watershed in meeting California's
future water supply needs, consistent with Section 85021.
   (d) Fund the increment of project  costs  
costs, up to 50 percent of the total cost of a project,  related
to the project's public  benefits.   benefits,
defined as follows:  
   (1) Any regional self-reliance improvement to meet water supply
needs.  
   (2) Any net improvement to public trust resources, including the
conservation of species listed as endangered or threatened under the
federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.)
or the California Endangered Species Act (Chapter 1.5 (commencing
with Section 2050) of Division 3) of the Fish and Game Code. 
   79742.  (a) In selecting among proposed projects in a watershed,
the scope of the adopted integrated regional water management plan
may be considered by the administering state agency, with priority
going to projects in plans that cover a greater portion of the
watershed. If a plan covers substantially all of the watershed, then
the plan's project priorities shall be given deference.
   (b) An urban water supplier that does not prepare, adopt, and
submit its urban water management plan in accordance with the Urban
Water Management Planning Act (Part 2.6 (commencing with Section
10610) of Division 6) is ineligible to apply for funds made available
pursuant to this chapter until the urban water management plan is
prepared and submitted in accordance with the requirements of that
act.
   (c) 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.
   (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 plan is prepared
and submitted in accordance with the requirements of that part. The
groundwater management plan requirement shall not apply to a water
replenishment district formed pursuant to Division 18 (commencing
with Section 60000) or to a local agency that serves or has authority
to manage an adjudicated groundwater basin.
   (e) For the purposes of awarding funding under this chapter, a
cost share from nonstate sources of not less than 50 percent of the
total costs of the project shall be required. The cost sharing
requirement may be waived or reduced for projects that directly
benefit a disadvantaged community or an economically distressed area.

   (f) Not less than 10 percent of the funds authorized by this
chapter shall be allocated to projects that directly benefit
disadvantaged communities.
   (g) For the purposes of awarding funding under  this
chapter   Section 79744  , the applicant shall
demonstrate that the integrated regional water management plan the
applicant's project implements  addresses  
contributes to addressing  the risks in the region to water
supply and water infrastructure arising from climate change.
   (h) Projects that achieve multiple benefits shall receive special
consideration.
   79743.  Subject to the determination of regional priorities by the
regional water management group  and the purposes described in
Section 79741  ,  eligible  projects 
eligible for funding allocated regionally by Section 79744  may
include, but are not limited to, projects that promote any of the
following:
   (a) Water reuse and recycling for non   potable 
 reuse and direct and indirect potable reuse  .
   (b) Water-use efficiency and water conservation.
   (c) Local and regional surface and underground water storage,
including groundwater aquifer cleanup or recharge projects.
   (d) Regional water conveyance facilities that improve integration
of separate water systems.
   (e) Watershed protection, restoration, and management projects
 , including projects that reduce the risk of wildfire or improve
water supply reliability  .
   (f) Stormwater resource management, including, but not limited to,
the following:
   (1) Projects to reduce, manage, treat, or capture rainwater or
stormwater.
   (2) Projects that provide multiple benefits such as water quality,
water supply, flood control, or open space.
   (3) Decision support tools that evaluate the benefits and costs of
multibenefit stormwater projects.
   (4) Projects to implement a stormwater resource plan developed in
accordance with Part 2.3 (commencing with Section 10560) of Division
6.
   (g) Conjunctive use of surface and groundwater storage facilities.

   (h) Water desalination  projects, including projects that
incorporate renewable energy generation and reduce regional reliance
on water from the Delta watershed to meet California's future water
supply needs pursuant to Section 85021.   projects.

   (i) Decision support tools to model regional water management
strategies to account for climate change and other changes in
regional demand and supply projections.
   79744.  (a) Of the funds authorized in Section 79740, the sum of
one billion dollars ($1,000,000,000) shall be allocated to the
hydrologic regions as identified in the California Water Plan in
accordance with this section. For the South Coast hydrologic region,
the department shall establish three funding areas that reflect the
watersheds of San Diego County  and southern Orange County 
(designated as the San Diego subregion), the Santa Ana River
watershed  and southern Orange County  (designated
as the Santa Ana subregion), and the Los Angeles and Ventura County
watersheds (designated as the Los Angeles subregion), and shall
allocate funds to those areas in accordance with this subdivision.
The North and South Lahontan hydrologic regions shall be treated as
one area for the purpose of allocating funds. For purposes of this
subdivision, the Sacramento River hydrologic region does not include
the Delta. For purposes of this subdivision, the Mountain Counties
Overlay is not eligible for funds from the Sacramento River
hydrologic region or the San Joaquin River hydrologic region.
Multiple integrated regional water management plans may be recognized
in each of the areas allocated funding.
   (b) Funds described in this section shall be allocated as follows:

   (1) Forty-five million dollars ($45,000,000) for the North Coast
hydrologic region.
   (2) One hundred thirty-two million dollars ($132,000,000) for the
San Francisco Bay hydrologic region.
   (3) Fifty-eight million dollars ($58,000,000) for the Central
Coast hydrologic region.
   (4) One hundred ninety-eight million dollars ($198,000,000) for
the Los Angeles subregion.
   (5) One hundred twenty-eight million dollars ($128,000,000) for
the Santa Ana subregion.
   (6) Eighty-seven million dollars ($87,000,000) for the San Diego
subregion.
   (7) Seventy-six million dollars ($76,000,000) for the Sacramento
River hydrologic region.
   (8) Sixty-four million dollars ($64,000,000) for the San Joaquin
River hydrologic region.
   (9) Seventy million dollars ($70,000,000) for the Tulare/Kern
hydrologic region.
   (10) Fifty-one million dollars ($51,000,000) for the North/South
Lahontan hydrologic region.
   (11) Forty-seven million dollars ($47,000,000) for the Colorado
River Basin hydrologic region.
   (12) Forty-four million dollars ($44,000,000) for the Mountain
Counties Overlay.
   (c) Funds allocated pursuant to this section may be used for the
purposes described in Sections 79745 and 79747.
   79745.  (a) Of the funds authorized by Section 79740, two hundred
fifty million dollars ($250,000,000) shall be  used 
 available  for direct expenditures, grants, and loans for
water conservation and water use efficiency plans, projects, and
programs, including either of the following:
   (1) Urban water conservation plans, projects, and programs,
including regional projects and programs, implemented to achieve
urban water use targets developed pursuant to Section 10608.20.
Priority for funding shall be given to programs that do any of the
following:
   (A) Assist water suppliers and regions to implement conservation
programs and measures that are not locally cost effective.
   (B) Support water supplier and regional efforts to implement
programs targeted to enhance water use efficiency for commercial,
industrial, and institutional water users.
   (C) 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.
   (2) Agricultural water management plans or agricultural water use
efficiency projects and programs developed pursuant to Part 2.8
(commencing with Section 10800) of Division 6. Of the funds provided
by this section, one hundred million dollars ($100,000,000) shall be
available for improving on-farm water use efficiency, including, but
not limited to, drip irrigation.
   (b) Section 1011 applies to all conservation measures that an
agricultural water supplier or an urban water supplier implements
with funding under this chapter. This subdivision does not limit the
application of Section 1011 to any other measures or projects
implemented by a water supplier. 
   (c) For purposes of this section, funded projects shall not be
required to comply with the requirements of the Integrated Regional
Water Management Planning Act of 2002 (Part 2.2 (commencing with
Section 10530) of Division 6). The funding available pursuant to this
section may be appropriated to an integrated regional water
management program or plan. 
   79746.  Of the funds authorized by Section 79740, five hundred
million dollars ($500,000,000) shall be available, upon appropriation
by the Legislature from the fund, for grants and low-interest loans
for water recycling and advanced treatment technology projects,
including all of the following:
   (a) Water recycling projects, including, but not limited to,
treatment, storage, conveyance, and distribution facilities for
potable and nonpotable recycling projects.
   (b) Contaminant and salt removal projects, including, but not
limited to, groundwater and seawater desalination  and associated
treatment, storage, conveyance, and distribution facilities  .
   (c) Dedicated distribution infrastructure to serve residential,
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.
   (g) For projects funded pursuant to this section, 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. 
   (h) Water supply reliability improvement for critical urban water
supplies in designated superfund areas with groundwater contamination
listed on the National Priorities List established pursuant to
Section 105 of the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended (42 U.S.C. Sec.
9605(a)(8)(B)).  
   (h) 
    (i)  Projects funded pursuant to this section shall be
selected on a competitive basis, considering all of the following
criteria:
   (1)  Water   Regional water  supply
reliability improvement.
   (2) Water quality and ecosystem benefits related to decreased
reliance on diversions from the Delta or instream flows.
   (3) Public health benefits from improved drinking water quality.
   (4) Cost effectiveness.
   (5) Energy efficiency and greenhouse gas emission impacts.
   (6) Reasonable geographic allocation to eligible projects
throughout the state  that contribute to attainment of the
statewide recycled water goal as established in Section 13577
  including both northern and southern California and
coastal and                                           inland regions
 . 
   (i) 
    (   j)  For the purposes of this section,
eligible projects shall implement a plan or strategy by one or more
regional water agencies or integrated regional water management
groups to incorporate water recycling  or ad   vanced
treatment technology  into the region's water  supplies
.   supplies.  
   (j) 
    (k)  For purposes of this section, 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  . 
   (k) Fifty percent of the moneys available pursuant to this section
shall be allocated for grants and 50 percent shall be allocated for
a low-interest loan program.  
   (l) For purposes of this section, funded projects shall not be
required to comply with the requirements of the Integrated Regional
Water Management Planning Act of 2002 (Part 2.2 (commencing with
Section 10530) of Division 6). 
   79747.  (a) It is the policy of the State of California that
stormwater shall be managed for water supply benefits to the maximum
extent possible, in conjunction with other benefits that effective
stormwater management may provide. Funding for stormwater management
shall be drawn from federal, state, regional, and local agency
resources, to the extent available.
   (b) Of the funds authorized by Section 79740, two hundred fifty
million dollars ($250,000,000) shall be available for grants and
loans for multibenefit stormwater management projects.
   (c) Eligible projects may include, but shall not be limited to,
green infrastructure, rainwater and stormwater capture projects, and
stormwater treatment facilities.
   (d) Development of plans for stormwater projects shall address the
entire watershed and incorporate the perspectives of communities
adjacent to the affected waterways, especially disadvantaged
communities. 
   (e) For purposes of this section, funded projects shall not be
required to comply with the requirements of the Integrated Regional
Water Management Planning Act of 2002 (Part 2.2 (commencing with
Section 10530) of Division 6). The funding available pursuant to this
section may be appropriated to an integrated regional water
management program or plan. 
   79748.  In order to receive funding authorized by this chapter to
address groundwater quality or supply in an aquifer, the applicant
shall demonstrate that a public agency has authority to manage the
water resources in that aquifer. A groundwater management plan
adopted and approved pursuant to Part 2.75 (commencing with Section
10750) of Division 6 shall be deemed sufficient to satisfy the
requirements of this section.
      CHAPTER 8.  SACRAMENTO-SAN JOAQUIN DELTA SUSTAINABILITY


   79750.  (a) The sum of one billion dollars ($1,000,000,000) shall
be available, upon appropriation by the Legislature from the fund,
for grants and direct expenditures to improve the sustainability of
the  Delta.   Delta   as follows: 

   (1) Four hundred million dollars ($400,000,000) of the funding
available pursuant to this chapter shall be available for the purpose
identified in subdivision (b) of Section 79751.  
   (2) Six hundred million dollars ($600,000,000) of the funding
available pursuant to this chapter shall be available for the
purposes identified in subdivisions (a) and (c) of Section 79751.
 
   (3) Funding available pursuant to paragraphs (1) and (2) may be
combined to provide funding to projects that accomplish more than one
of the purposes identified in Section 79751. 
   (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.
   79751.  In order to promote the sustainability and resiliency of
the Delta, the purposes of this chapter are to:
   (a) Protect, restore, and enhance the Delta ecosystem.
   (b) Maintain and improve existing Delta levees.
   (c) Promote the sustainability of the Delta.
   79752.  The funds authorized in Section 79750 shall not be used to
pay the costs of a public agency exercising eminent domain to
acquire or use property. All property acquired with moneys available
pursuant to this chapter shall be acquired from willing sellers.
   79754.  Funding authorized by this chapter for the purpose of
subdivision (a) of Section 79751 may include, but is not limited to,
the following:
   (a) Projects to protect and restore native fish and wildlife
dependent on the Delta ecosystem, including improvement of aquatic or
terrestrial habitat or the removal or reduction of undesirable
invasive species.
   (b) Projects to reduce greenhouse gas emissions from exposed Delta
soils.
   (c) Scientific studies and assessments that support the projects
authorized under this section.
   79755.  (a) Funding authorized by this chapter for the purpose of
subdivision (b) of Section 79751 shall reduce the risk of levee
failure and flood in the Delta and may be expended, consistent with
the Delta levee investment priorities recommended pursuant to Section
85306, for any of the following:
   (1) Local assistance under the Delta levee maintenance subventions
program under Part 9 (commencing with Section 12980) of Division 6,
as that part may be amended.
   (2) Special flood protection projects under Chapter 2 (commencing
with Section 12310) of Part 4.8 of Division 6, as that chapter may be
amended.
   (3) Levee improvement projects that increase the resiliency of
levees within the Delta to withstand earthquake, flooding, or sea
level rise.
   (4) Emergency response and repair projects.
   (b) All projects funded pursuant to this section shall be subject
to Section 79050.
      CHAPTER 9.  WATER STORAGE FOR CLIMATE CHANGE


   79760.  (a) Notwithstanding Section 162, the commission may make
the determinations, findings, and recommendations required of it by
this chapter independent of the views of the director. All final
actions by the commission in implementing this chapter shall be taken
by a majority of the members of the commission at a public meeting
noticed and held pursuant to the Bagley-Keene Open Meeting Act
(Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of
Division 3 of Title 2 of the Government Code). 
   (b) (1) The commission shall submit its project selections to any
state agency created by statute for the purpose of oversight of bond
acts for confirmation of compliance with applicable legal
requirements.  
   (2) 
    (b)  The commission shall submit project status reports
as requested to the Department of  Finance or the state
agency created by statute described in paragraph (1).  
Finance. 
   (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) Only projects selected by the commission shall be eligible for
funding authorized by this chapter. Funding authorized by this
chapter shall be appropriated to the commission.
   (e) The commission shall, to the extent feasible, maximize the
following:
   (1) Leveraging of the funding made available in this chapter with
funds from federal, local, and private sources.
   (2) Statewide storage benefits or regional storage benefits that
promote regional self-reliance.
   79761.  (a) The sum of two billion five hundred million dollars
($2,500,000,000) shall be available from the fund to the commission,
for expenditures, competitive grants, and loans for public benefits
associated with projects that expand the state's water storage
capacity.
   (b) (1)  Five hundred million dollars ($500,000,000) is hereby
appropriated to the commission from the moneys available pursuant to
subdivision (a) for the purposes of this chapter during each of the
fiscal years from the 2015-16 fiscal year to the 2019-20 fiscal year,
inclusive, unless the moneys in the fund available for this chapter
pursuant to subdivision (a) are exhausted.
   (2) Funds appropriated pursuant to this subdivision shall be
available for encumbrance for three years in accordance with Section
16304 of the Government Code. Any unencumbered balance after three
years shall revert to the fund for the purpose of this chapter.
   (3) The Legislature may augment the appropriations made pursuant
to this subdivision until the funds are exhausted.
   (c) The Legislature shall retain authority and responsibility for
oversight of the commission and expenditure of the funding authorized
by this chapter.
   79762.  In order to expand the state's water storage capacity to
address the impacts of climate change on the snow pack in the Sierra
Nevada Mountains and water storage resources, the purposes of this
chapter are to:
   (a) Construct new surface water storage projects.
   (b) Restore and expand groundwater aquifer storage capacity.
   (c) Restore water storage capacity of existing surface water
storage reservoirs.
   (d) Remediate or prevent contamination of groundwater aquifers.
   (e) Construct and expand stormwater retention facilities.
   79763.  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, including, but not limited
to, reservoirs for storing recycled water.
   (e) Projects that remove sediment, improve dam stability in
seismic events, or otherwise restore water storage capacity in
existing water storage reservoirs. 
   (f) Projects that the United States Bureau of Reclamation develops
through its Water SMART storage program. 
   79764.  A project in the Delta watershed or an area that receives
water from the Delta watershed shall  not be funded 
 be eligible for funding  pursuant to this chapter 
unless it provides measurable improvements to the Delta ecosystem or
to the Delta watershed   to further the policy set
forth in Section 85021  .
   79765.  (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 or the Delta tributaries.
   (2) Water quality improvements in the Delta, or in other river
systems, that provide significant public trust fish and wildlife
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) Regional water storage benefits for more than one drinking
water supplier or more than 3,000,000 people. 
   (5) 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. 
   (b) Funds shall not be expended pursuant to this chapter for the
costs of environmental mitigation measures or compliance obligations
.
   79766.  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
79765 by December 15,  2014   2015  . 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.
   79767.  (a) Except as provided in subdivision (c), no funds
allocated pursuant to this chapter may be allocated for a project
 before December 15, 2014, 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 79766 and specifically quantified and made public the cost of
the public benefits associated with the project.
   (2) The department has entered into a contract with each party
that will derive benefits, other than public benefits, as defined in
Section 79765, 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 department has entered into a contract with each public
agency identified in Section 79766 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, if the project is in the Delta watershed or an area that
receives water from the Delta watershed, will advance  one or
more of  the policy objectives specified in Section 85020.
   (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.
   79768.  (a) The public benefit cost share of a project funded
pursuant to this chapter shall not exceed 50 percent of the total
costs of any project funded under this chapter.
   (b) In order to receive funding authorized by this chapter to
improve groundwater storage in an aquifer, the applicant shall
demonstrate that a public agency has authority to manage the water
resources in that aquifer.
   79769.  (a) A project is not eligible for funding under this
chapter unless, by January 1, 2018, 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 .
  uses. 
   (3) The director receives commitments for not less than 75 percent
of the nonpublic benefit cost share of the project.
   (b) If compliance with subdivision (a) is delayed by litigation or
failure to promulgate regulations, the date in subdivision (a) shall
be extended by the commission for a time period that is equal to the
time period of the delay, and funding under this chapter that has
been dedicated to the project shall be encumbered until the time at
which the litigation is completed or the regulations have been
promulgated.
   79770.  (a) Funding authorized by this chapter shall not be used
to pay any share of the costs of remediation attributed to parties
responsible for the contamination of a groundwater storage aquifer,
but may be used to pay costs that cannot be recovered from
responsible parties. Parties that receive funding for remediating
groundwater storage aquifers shall exercise their best efforts to
recover the costs of groundwater cleanup from the parties responsible
for the contamination.
   (b) Projects that leverage funding from local agencies and
responsible parties to the maximum extent possible shall receive
priority consideration in groundwater storage project selection.
      CHAPTER 10.  FISCAL PROVISIONS


   79800.  (a) Bonds in the total amount of eight billion dollars
($8,000,000,000), 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.
   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
 Clean and Safe   Clean, Safe, and Reliable
 Drinking Water Finance Committee is hereby created. For
purposes of this division, the  Clean and Safe  
Clean, Safe, 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.
  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  Clean and Safe   Clean,
Safe, and Reliable  Drinking Water Act of 2014, as set forth in
that section at the November 4, 2014, statewide general election.
      
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