Bill Text: CA SB1250 | 2013-2014 | Regular Session | Amended


Bill Title: Safe, Clean, and Reliable Drinking Water Supply Act of 2014.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2014-05-13 - Set, second hearing. Hearing canceled at the request of author. [SB1250 Detail]

Download: California-2013-SB1250-Amended.html
BILL NUMBER: SB 1250	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 7, 2014
	AMENDED IN SENATE  APRIL 21, 2014

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  $9,450,000,000
  $10,150,000,000  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. 
   (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. 
      CHAPTER 3.  DEFINITIONS


   79702.  Unless the context otherwise requires, the definitions set
forth in this section govern the construction of this division, as
follows: 
   (a) "Bay Delta Conservation Plan" means the final plan prepared
pursuant to the planning agreement regarding the Bay Delta
Conservation Plan, dated October 6, 2006.  
   (b) 
    (a)  "Bay-Delta Estuary" means the Delta, Suisun Bay,
and Suisun Marsh. 
   (c) 
    (b)  "CALFED Bay-Delta Program" means the program
described in the Record of Decision dated August 28, 2000. 
   (d) 
    (c)  "Commission" means the California Water Commission.

   (e) 
    (d)  "Committee" means the Safe, Clean, and Reliable
Drinking Water  Supply  Finance Committee created by
Section 79802. 
   (f) 
    (e)  "Delta"  means the Sacramento-San Joaquin
Delta,   has the same meaning  as defined in
Section  12220   85058  . 
   (f) "Delta Conservancy" means the Sacramento-San Joaquin Delta
Conservancy established in Section 32320 of the Public Resources
Code. 
   (g) "Delta conveyance facilities" means facilities that convey
water directly from the Sacramento River to the State Water Project
or the federal Central Valley Project pumping facilities in the south
Delta.
   (h) "Delta counties" means the Counties of Contra Costa,
Sacramento, San Joaquin, Solano, and Yolo.
   (i) "Delta Plan" has the meaning set forth in Section 85059.
   (j) "Department" means the Department of Water Resources.
   (k) "Director" means the Director of Water Resources.
   (l) "Disadvantaged community" has the meaning set forth in
subdivision (a) of Section 79505.5.
   (m) "Economically distressed area" means a municipality with a
population of 20,000 persons or less, a rural county, or a reasonably
isolated and divisible segment of a larger municipality where the
segment of the population is 20,000 persons or less, with an annual
median household income that is less than 85 percent of the statewide
median household income, and with one or more of the following
conditions as determined by the department:
   (1) Financial hardship.
   (2) Unemployment rate at least 2 percent higher than the statewide
average.
   (3) Low population density.
   (n) "Fund" means the Safe, Clean, and Reliable Drinking Water
Supply Fund of 2014 created by Section 79716.
   (o) "Integrated regional water management plan" has the meaning
set forth in Section 10534.
   (p) "Nonprofit organization" means an organization qualified to do
business in California and qualified under Section 501(c)(3) of
Title 26 of the United States Code.
   (q) "Public agency" means a state agency or department, district,
joint powers authority, city, county, city and county, or other
political subdivision of the state.
   (r) "Secretary" means the Secretary of the Natural Resources
Agency. 
   (s) "State board" means the State Water Resources Control Board.
 
   (s) 
    (t)  "State General Obligation Bond Law" means the State
General Obligation Bond Law (Chapter 4 (commencing with Section
16720) of Part 3 of Division 4 of Title 2 of the Government Code).
      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 
State Water Resources Control Board   state board 
.
   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)  Prior to   Before 
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.  If the state agency previously
developed and adopted project solicitation and evaluation guidelines
that comply with the requirements of this subdivision, the state
agency may use those guidelines. 
   (b)  Prior to   Before  disbursing
grants, the state agency shall conduct three public meetings to
consider public comments  prior to   before
 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.   (a)    The California State Auditor
shall annually conduct a programmatic review and an audit of
expenditures from the fund.  The  
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. 
   (b) A report submitted pursuant to subdivision (a) shall be
submitted in compliance with Section 9795 of the Government Code

   79711.   (a)    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. 
   (b) Funds provided by this division may be used to acquire water
if both of the following conditions are met:  
   (1) The acquisition involves a long-term water transfer, as
described in Section 1735, a purchase of water, or other agreement
that results in enhanced stream flow such as reservoir reoperation.
 
   (2) The Department of Fish and Wildlife determines that the
acquisition will provide fisheries or ecosystem benefits or
improvements. 
   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 
prior to   before  December 19, 1914, provided
under the law. This division does not limit or otherwise affect the
application of Article 1.7 (commencing with Section 1215) of Chapter
1 of Part 2 of Division 2, Sections 10505, 10505.5, 11128, 11460,
11461, 11462, and 11463, and Sections 12200 to 12220, inclusive.
   (b) For  the  purposes of this division, an area
that utilizes water that has been diverted and conveyed from the
Sacramento River hydrologic region, for use outside the Sacramento
River hydrologic region or the Delta, shall not be deemed to be
immediately adjacent thereto or capable of being conveniently
supplied with water therefrom by virtue or on account of the
diversion and conveyance of that water through facilities that may be
constructed for that purpose after January 1, 2014.
   (c) Nothing in this division supersedes, limits, or otherwise
modifies the applicability of Chapter 10 (commencing with Section
1700) of Part 2 of Division 2, including petitions related to any new
conveyance constructed or operated in accordance with Chapter 2
(commencing with Section 85320) of Part 4 of Division 35.
   (d) Unless otherwise expressly provided, nothing in this division
supersedes, reduces, or otherwise affects existing legal protections,
both procedural and substantive, relating to the state board's
regulation of diversion and use of water, including, but not limited
to, water right priorities, the protection provided to municipal
interests by Sections 106 and 106.5, and changes in water rights.
Nothing in this division expands or otherwise alters the state board'
s existing authority to regulate the diversion and use of water or
the courts' existing concurrent jurisdiction over California water
rights. 
   (e) Nothing in this division supersedes, limits, or otherwise
modifies the Sacramento-San Joaquin Delta Reform Act of 2009
(Division 35 (commencing with Section 85000). 
   79714.   (a)    Eligible applicants under this
division are public agencies, nonprofit organizations, public
utilities,  federally recognized Indian tribes, state Indian
tribes listed on the Native American Heritage Commission's California
Tribal Consultation List,  and mutual water companies. To be
eligible for funding under this division, a project proposed by a
public utility that is regulated by the Public Utilities Commission
or a mutual water company shall have a clear and definite public
purpose and shall benefit the customers of the water system. 
   (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. 
   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. 
   79717.  All references in this division to other provisions of law
shall incorporate those provisions as they may be amended. 
      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,  to the state board  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,
  Implement stormwater quality projects,  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   The state board  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,  nitrosodimethylamine  
N-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 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   state board
 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  administering entity   state board
 may expend up to twenty-five million dollars ($25,000,000) of
the funds allocated in subdivision (a) for technical assistance to
eligible communities.
   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   state board
 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   board  .
      CHAPTER 6.  WATER SUPPLY RELIABILITY AND DROUGHT PREPAREDNESS


   79730.   (a)    The sum of one billion dollars
($1,000,000,000) shall be available, upon appropriation by the
Legislature, from the fund  to the department  for
competitive grants and expenditures in accordance with Section 79731.

   (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. 
   79731.  (a) The department  and state board  shall award
grants to eligible projects that implement an adopted integrated
regional water management plan.
   (b) An urban water supplier that does not prepare, adopt, and
submit its urban water management plan in accordance with the Urban
Water Management Planning Act (Part 2.6 (commencing with Section
10610) of Division 6) is ineligible to receive funds made available
pursuant to Section 79730 until the urban water management plan is
prepared and submitted in accordance with the requirements of that
act. 
   (c) 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 groundwater
management plan is prepared and submitted in accordance with the
requirements of that part.  
   (c) 
    (e)  For the purposes of awarding a grant under this
chapter, the department shall require a local cost share of not less
than 50 percent of the total costs of the project. The department may
waive or reduce the cost-sharing requirement for projects that
directly benefit a disadvantaged community or an economically
distressed area. 
   (d) 
    (f)  Eligible projects are those included in adopted
integrated regional water management plans  consistent with
  pursuant to  Part 2.2 (commencing with Section
10530) of Division 6, including, but not limited to, local and
regional surface water storage projects. 
   (e) 
    (g)  The funding provided in Section 79730 shall be
allocated to each hydrologic region as identified in the California
Water Plan in accordance with this subdivision. For the South Coast
hydrologic region, the department shall establish three funding areas
that reflect the watersheds of San Diego County (designated as the
San Diego subregion), the Santa Ana River watershed and southern
Orange County (designated as the Santa Ana subregion), and the Los
Angeles and Ventura County watersheds (designated as the Los Angeles
subregion), and shall allocate funds to those areas in accordance
with this subdivision. The North and South Lahontan hydrologic
regions shall be treated as one area for the purpose of allocating
funds. For purposes of this subdivision, the Sacramento River
hydrologic region does not include the Delta. For purposes of this
subdivision, the Mountain Counties Overlay is not eligible for funds
from the Sacramento River hydrologic region or the San Joaquin River
hydrologic region. The department may recognize multiple integrated
regional water management plans in each of the areas allocated
funding. Funds made available by this chapter shall be allocated as
follows:
   (1) North Coast:  $45,000,000   forty-five
million dollars ($45,000,000)  .
   (2) San Francisco Bay:  $132,000,000   one
hundred thirty-two million dollars ($132,000,000)  .
   (3) Central Coast:  $58,000,000   fifty-eight
million dollars ($58,000,000)  .
   (4) Los Angeles subregion:  $198,000,000  
one hundred ninety-eight million dollars ($198,000,000)  .
   (5) Santa Ana subregion:  $128,000,000  one
hundred twenty-eight million dollars ($128,000,000)  .
   (6) San Diego subregion:  $87,000,000  
eighty-seven million dollars ($87,000,000)  .
   (7) Sacramento River:  $76,000,000  
seventy-six million dollars ($76,000,000)  .
   (8) San Joaquin River:  $64,000,000  
sixty-four million dollars ($64,000,000)  .
   (9) Tulare/Kern:  $70,000,000   seventy
million dollars ($70,000,000)  .
   (10) North/South Lahontan:  $51,000,000  
fifty-one million dollars ($51,000,000)  .
   (11) Colorado River Basin:  $47,000,000  
forty-seven million dollars ($47,000,000)  .
   (12) Mountain Counties Overlay:  $44,000,000 
 forty-four million dollars ($44,000,000)  .
   79732.  Of the funds provided in Section 79730, not less than 10
percent shall be allocated to disadvantaged communities. 
   79733.  (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. 
      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.  (a)     (1)    The sum
of two billion two hundred fifty million dollars ($2,250,000,000)
shall be available, upon appropriation from the fund, for grants and
direct  expenditures, as follows:  
expenditures.  
   (2) Except as provided in paragraph (3), funds provided pursuant
to this chapter shall be appropriated to the Delta Conservancy. 

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

   (a) 
    (b)  (1)  Seven   Of the funds
provided in subdivision (a), seven  hundred fifty million
dollars ($750,000,000)  shall be available  for projects,
including grants to Delta counties and cities within the Delta, that
provide public benefits and support Delta sustainability options,
including projects and supporting scientific studies and assessments
that do any of the following:
   (A) Ensure that urban and agricultural water supplies derived from
the Delta, including water supplies used within the Delta, are not
disrupted because of catastrophic failures of Delta levees resulting
from earthquakes, floods, land sinking, rising ocean levels, or other
forces.
   (B) Assist in preserving economically viable and sustainable
agriculture and other economic activities in the Delta.
   (C) Improve the quality of drinking water derived from the Delta.
   (D) Improve levee and flood control facilities and other vital
infrastructure necessary to protect Delta communities affected by the
implementation of this chapter.
   (E) Provide physical improvements or other actions to create
waterflow and water quality conditions within the Delta to provide
adequate habitat for native fish and wildlife.
   (F) Facilitate other projects that provide public benefits and
support Delta sustainability options approved by the Legislature,
including costs associated with planning, monitoring, and design of
alternatives, and project modifications and adaptations necessary to
achieve the goals of this chapter.
   (G) Mitigate other impacts of water conveyance and ecosystem
restoration.
   (H) Provide or improve water quality facilities and other
infrastructure. 
   (2) Of the funds provided in this subdivision, not less than fifty
million dollars ($50,000,000) shall be available for matching grants
for improvements to wastewater treatment facilities upstream of the
Delta to improve Delta water quality.  
   (3) 
    (2)  Of the funds provided in this subdivision, up to
two hundred fifty million dollars ($250,000,000) may be expended in
the Delta to provide assistance to local governments and the local
agricultural economy due to loss of productive agricultural lands for
habitat and ecosystem restoration within the Delta. 
   (b) 
    (c)   One   Of the funds provided
in   subdivision (a), one  billion five hundred million
dollars ($1,500,000,000) shall be available, upon appropriation from
the fund, for grants and direct expenditures, for projects to
protect and enhance the sustainability of the Delta ecosystem,
including any of the following:
   (1) Projects  for the development and implementation of
the Bay Delta Conservation Plan, consistent with Chapter 10
(commencing with Section 2800) of Division 3 of the Fish and Game
Code. The projects shall be implemented through a cooperative effort
among regulatory agencies, regulated and potentially regulated
entities, and affected parties, including state and federal water
contractors. These funds may be expended for the preparation of
environmental documentation and environmental compliance 
 that protect, restore, and enhance the Delta ecosystem  .
   (2) Other projects to protect and restore native fish and wildlife
dependent on the Delta ecosystem, including the acquisition of water
rights and the removal or reduction of undesirable invasive species.

   (3) Projects to reduce greenhouse gas emissions from exposed Delta
soils.
   (4) Projects that reduce impacts of mercury contamination of the
Delta and its watersheds, and remediation and elimination of
continuing sources of mercury contamination.
   (5) Scientific studies and assessments that support the projects
authorized under this section. 
   (c) Funds provided by this chapter shall be available for
appropriation to, among other entities, the Sacramento-San Joaquin
Delta Conservancy for implementation consistent with the Delta Plan.

   79742.  (a) A project that receives funding pursuant to
subdivision  (a)   (b)  of Section 79741
shall be eligible for funding pursuant to other provisions of this
division to the extent that the combined state funding pursuant to
this division does not exceed 50 percent of the total project costs.
   (b)  The department   Except as provided in
paragraph (3) of subdivision (a) of Section 79741, the Delta 
 Conservancy  shall determine what constitutes a project for
the purposes of subdivision (a).  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. 
      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.

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

   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  State Water Resources Control Board   state
board  , and the department, the commission shall develop and
adopt, by regulation, methods for quantification and management of
public benefits described in Section 79753 by December 15, 2016. The
regulations shall include the priorities and relative environmental
value of ecosystem benefits as provided by the Department of Fish and
Wildlife and the priorities and relative environmental value of
water quality benefits as provided by the  State Water
Resources Control Board   state board  .
   79755.  (a) Except as provided in subdivision (c),  no
 funds allocated pursuant to this chapter  may
  shall not  be allocated for a project before
December 15, 2016, and until the commission approves the project
based on the commission's determination that all of the following
have occurred:
   (1) The commission has adopted the regulations specified in
Section 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)  No   A  project  may
  shall not  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. 
   79758.5.  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. 
   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.   (a)    The sum of one
billion three hundred million dollars ($1,300,000,000) shall be
available, upon appropriation by the Legislature from the fund, in
accordance with this chapter, for expenditures and competitive grants
for multibenefit ecosystem and watershed protection and restoration
projects  in accordance with statewide priorities 
 that protect and improve California watersheds, wetlands,
forests, and floodplains  . 
   (b) Of the funds made available by this section, the following
specified amounts shall be made available to the specified regions:
 
   (1) _____ million dollars ($_____) for the North Coast region.
 
   (2) _____ million dollars ($_____) for the San Francisco Bay area.
 
   (3) _____ million dollars ($_____) for the Sierra Nevada and
Cascade Range region.  
   (4) _____ million dollars ($ ____) for the Central Coast region.
 
   (5) _____ million dollars ($_____) for the Central Valley region.
 
   (6) _____ million dollars ($_____) for the Southern California
region.  
   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).  
   79761.  (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. 
   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)  (1)    Notwithstanding Section
79711, of the funds authorized in Section 79760, the sum of five
hundred million dollars ($500,000,000) shall be available to fulfill
the obligations of the State of California in complying with the
terms of any of the following: 
   (1) 
    (A)  The February 18, 2010, Klamath Basin Restoration
Agreement or Klamath Hydroelectric Settlement Agreement. 
                               (2) The Quantification Settlement
Agreement, as defined in subdivision (a) of Section 1 of Chapter 617
of the Statutes of 2002.  
   (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. 
   (3) 
    (C)  The San Joaquin River Restoration Settlement, as
described in Part I of Subtitle A of Title X of Public Law 111-11.

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

   (5) 
    (E)   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. 
   (2) Expenditures funded by this subdivision shall comply with
Section 16727 of the Government Code. 
   (b) Of the funds authorized in Section 79760, two hundred fifty
million dollars ($250,000,000) shall be available to the 
Natural Resources Agency to support projects of a state conservancy
as provided in the conservancy's strategic plan  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  . 
   (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.  
   (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.  
   (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:  
   (1) Projects that capture, convey, treat, or put to beneficial use
stormwater or dry weather runoff.  
   (2) The development of stormwater capture and reuse plans pursuant
to Part 2.3 (commencing with Section 10560) of Division 6. 

   (3) Decision support tools, data acquisition, and data analysis to
identify and evaluate the benefits and costs of potential stormwater
capture and reuse projects.  
   (4) Projects that, in addition to capturing and reusing stormwater
or dry weather runoff, improve water quality 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.  
   (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.  
   (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.  
   (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. 
   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,  to the state board  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,  nitrosodimethylamine  
N-nitrosodimethylamine  , 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)  An agency administering grants or loans for the
purposes of this chapter   The   state board
 shall assess the capacity of a community to pay for the
operation and maintenance of the facility to be funded.
   (d) At least 10 percent of the funds available pursuant to this
chapter shall be allocated for projects serving severely
disadvantaged communities.
   (e) Funding authorized pursuant to this chapter shall include
funding for technical assistance to disadvantaged communities. The
 agency administering this funding   state board
 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,  to the state board  for grants for water recycling
and advanced treatment technology projects, including all of the
following:
   (a) Water recycling projects, including, but not limited to,
treatment, storage, conveyance, and distribution facilities for
potable and nonpotable recycling projects.
   (b) Contaminant and salt removal projects, including 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.
      CHAPTER  12.    WATER CONSERVATION 


   79790.  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.  
   79791.  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.  
   79792.  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. 
      CHAPTER  13.    LOCAL AND REGIONAL STORAGE
PROJECTS 


   79795.  (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. 
      CHAPTER  12.   14.   FISCAL
PROVISIONS


   79800.  (a) Bonds in the total amount of  nine 
 ten  billion  four   one  hundred
fifty million dollars  ($9,450,000,000)  
($10,150,000,000)  , 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
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.

   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.

  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.
                                                          
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