Bill Text: CA SB848 | 2013-2014 | Regular Session | Amended

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

Spectrum: Partisan Bill (Democrat 9-0)

Status: (Introduced - Dead) 2014-08-18 - Ordered to inactive file on request of Senator Wolk. [SB848 Detail]

Download: California-2013-SB848-Amended.html
BILL NUMBER: SB 848	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 10, 2014
	AMENDED IN SENATE  FEBRUARY 20, 2014
	AMENDED IN SENATE  FEBRUARY 12, 2014

INTRODUCED BY   Senator Wolk
   (Coauthors: Senators  De León,  DeSaulnier, Hancock, 
Hueso,   Pavley,  and Steinberg)
   (Coauthor: Assembly Member Bonilla)

                        JANUARY 9, 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 2009, relating to a
safe drinking water, water quality, and water supply program, by
providing the funds necessary therefor through an election for the
issuance and sale of bonds of the State of California and for the
handling and disposition of those funds, and declaring the urgency
thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 848, as amended, Wolk. Safe Drinking Water, Water Quality, and
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 Drinking Water, Water Quality, and
Water Supply Act of 2014, which, if adopted by the voters, would
authorize the issuance of bonds in the amount of 
$6,825,000,000   $10,500,000,000  pursuant to the
State General Obligation Bond Law to finance a safe drinking water,
water quality, and water supply program.
   The bill would provide for the submission of the bond act to the
voters at the November 4, 2014, statewide general election.
   (3) Existing law, the Water Conservation and Water Quality Bond
Law of 1986, approved by the voters at the June 3, 1986, statewide
primary election, authorizes the issuance of general obligation bonds
in the amount of $150,000,000 for the Department of Water Resources
to make prescribed loans to local agencies for the purposes of
financing a water conservation and water quality program. Existing
law, the Water Conservation Bond Law of 1988, approved by the voters
at the November 8, 1988, statewide general election, authorizes the
issuance of general obligation bonds in the amount of $60,000,000 for
the Department of Water Resources to make prescribed loans to local
agencies for the purposes of financing a water conservation program.
Existing law, the Safe, Clean, Reliable Water Supply Act, a bond act
approved by the voters as Proposition 204 at the November 5, 1996,
statewide general election, authorizes the issuance of general
obligation bonds in the amount of $995,000,000 for grants, loans, and
direct expenditures for the purposes of financing a safe, clean,
reliable water supply program. Existing law, the Costa-Machado Water
Act of 2000, a bond act approved by the voters as Proposition 13 at
the March 7, 2000, statewide primary election, authorizes the
issuance of general obligation bonds in the amount of $1,970,000,000
for grants, loans, and direct expenditures for the purposes of
financing a safe drinking water, clean water, watershed protection,
and flood protection program.
   This bill would authorize the Legislature to appropriate 
funds   any unencumbered proceeds of bonds  from
the above-described bond acts  in their respective bond funds as
of November 5, 2014,  for  grants and direct
expenditures to accomplish  prescribed purposes 
relating to water supply enhancement  as described in the
Safe Drinking Water, Water Quality, and Water Supply Act of 2014.
This bill would provide for the submission of these provisions to the
voters at the November 4, 2014, statewide general election.
   (4) 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 Drinking Water, Water Quality, and
Water Supply Act of 2014


      CHAPTER 1.  SHORT TITLE


   79700.  This division shall be known and may be cited as the Safe
Drinking Water, Water Quality, and Water Supply Act of 2014.
      CHAPTER 2.  FINDINGS AND DECLARATIONS


   79705.  In placing this measure before the voters, the Legislature
finds and declares that all of the following are in the public's
interest:
   (a) Ensuring that safe drinking water is available to all
Californians.
   (b) Protecting water quality and cleaning up contaminated water
sources.
   (c) Increasing water supply and water supply reliability.
   (d) Assisting each region of the state in improving local water
supply reliability and water quality.
   (e) Resolving water-related  conflicts,  
conflicts and  improving local and regional water 
self-sufficiency, and reducing reliance on imported water 
 self-reliance  .
   (f) Protecting the rivers, lakes, and streams of the state from
pollution, loss of water quality, and destruction of fish and
wildlife habitat.
   79706.  The Legislature further finds and declares that to achieve
the public interest objectives under Section 79705, it is necessary
to invest state resources in the following:
   (a) Safe drinking water projects, especially projects addressing
the needs of disadvantaged communities, and financing urgent public
health emergency actions to ensure safe drinking water supplies.
   (b) Wastewater treatment projects to keep contaminants out of
rivers, lakes, streams, and coastal waters.
   (c) Projects to enhance water supplies and increase water supply
reliability through the following:
   (1) Urban and agricultural water conservation and water use
efficiency projects.
   (2) Groundwater  cleanup   clean up  or
pollution prevention in sources of drinking water.
   (3) Water recycling projects.
   (4) Projects to desalinate brackish and ocean water.
   (5) Stormwater capture and reuse. 
   (6) Sustainable groundwater management. 
   (d) Projects that improve Delta water quality, restore ecosystems,
protect fish populations, and increase community sustainability.
   (e) Projects that reduce the risk of levee failure and flood in
the Delta.
   (f) Projects to protect and restore watersheds and urban rivers,
and address water quality deficiencies at state parks.
   (g) Projects to develop additional water storage, both surface and
groundwater storage, through the following:
   (1) New surface storage projects.
   (2) Groundwater storage projects and groundwater contamination
prevention or remediation projects that create additional groundwater
storage capacity.
   (3) Projects that restore the capacity of reservoirs currently
impaired by sediment buildup, seismic vulnerability, or other
impairment. 
      CHAPTER 3.  PURPOSE


   79708.  An agency allocating funds provided by this division shall
prioritize investment in projects that provide drought relief, safe
drinking water, and water use efficiency improvements necessary to
increase the sustainability of California's water systems. 
      CHAPTER  3.   4.   DEFINITIONS


   79710.  Unless the context otherwise requires, the definitions set
forth in this section govern the construction of this division, as
follows:
   (a) "Commission" means the California Water Commission. 
   (b) "Committee" means the director and the chair of the state
board.  
   (c) 
    (b)  "Delta" means the Sacramento-San Joaquin Delta as
defined in Section 85058. 
   (d) 
    (c)  "Delta counties" means Contra Costa, Sacramento,
San Joaquin, Solano, and Yolo counties. 
   (e) 
    (d)  "Department" means the Department of Water
Resources. 
   (f) 
    (e)  "Director" means the Director of Water Resources.

   (g) 
    (f)  "Disadvantaged community" has the same meaning as
set forth in subdivision (a) of Section 79505.5. 
   (h) 
    (g)  "Finance committee" means the Safe Drinking Water,
Water Quality, and Water Supply Finance Committee created by Section
79824. 
   (i) 
    (h)  "Fund" means the Safe Drinking Water, Water
Quality, and Water Supply Fund of 2014 created by Section 79770.

   (j) 
    (i)  "Initial operation and maintenance costs" mean
those initial, eligible, reimbursable costs under a construction
funding agreement that are incurred up to, and including, initial
startup testing of the constructed project in order to deem the
project complete. 
   (k) 
    (j)  "Integrated regional water management plan" means a
comprehensive plan for a defined geographic area that meets the
requirements of Part 2.2 (commencing with Section 10530) of Division
6, as that part may be amended. 
   (l) 
    (k)  "Interim" means the limited period of time needed
to address the identified urgent need for safe drinking water, not to
exceed three years. 
   (m) 
    (l)  "Local match" and "matching funds" mean funds made
available by nonstate sources, which may include, but are not limited
to, donated services from nonstate sources. 
   (n) 
    (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. 
   (o) 
    (n)  "Public agency" means a state agency or department,
public water system, special district, joint powers authority, city,
county, city and county, or other political subdivision of the
state. 
   (p) 
    (o)  "Secretary" means the Secretary of the Natural
Resources Agency. 
   (q) 
    (p)  "Severely disadvantaged community" has the same
meaning as set forth in subdivision (n) of Section 116760.20 of the
Health and Safety Code. 
   (r) 
    (q)  "Small water system" means a public water system
that serves 15 or more service connections but not more than 3,000
persons and regularly serves drinking water to more than an average
of 25 individuals daily for more than 60 days out of the year.

   (s) 
    (r)  "State board" means the State Water Resources
Control Board. 
   (t) 
    (s)  "State General Obligation Bond Law" means the State
General Obligation Bond Law (Chapter 4 (commencing with Section
16720) of Part 3 of Division 4 of Title 2 of the Government Code).

   (u) 
   (t)  "State small water system" means a  public
water system   system for the provision of piped water
to the public for human consumption  that serves at least 5, but
no more than 14, service connections and does not regularly serve
drinking water to more than an average of 25 individuals daily for
more than 60 days out of the year.
      CHAPTER  4.   5.   SAFE DRINKING
WATER  AND WATER QUALITY  PROJECTS


   79720.  (a) It is the intent of the  Legislature 
 people  that this chapter provide funds to 
address the most critical water needs of the state, including the
provision of safe drinking water to all Californians by improving
safe drinking water supply reliability and financing urgent public
health emergency actions to ensure safe drinking water supplies, and
implementing wastewater treatment projects to keep contaminants out
of rivers, lakes, streams, groundwater, and coastal waters. 
 ensure the provision of safe drinking water to all Californians
and to increase the reliability of water su   pply for safe
drinking water and other purposes. 
   (b) The sum of  nine hundred million dollars
($900,000,000)   three billion twenty million dollars
($3,020,000,000)  shall be available for the purposes of this
chapter. 
   79721.  From the funds described in Section 79720, one hundred
million dollars ($100,000,000) shall be available to the state board
for grants and direct expenditures to finance urgent actions needed
to provide drinking water in communities that lack access to safe
drinking water to ensure that safe drinking water supplies are
available to all Californians. Grants and direct expenditures shall
be exempt from contracting and procurement requirements to the extent
necessary to take immediate action to protect public health and
safety. Grants awarded pursuant to this section shall not exceed two
hundred fifty thousand dollars ($250,000). Eligible actions include,
but are not limited to, the following:
   (a) Providing interim water supplies, for a period not to exceed
three years, where necessary to protect public health, including the
design, purchase, installation, and operation and maintenance of
interim water treatment equipment and systems.
   (b) Improvements in existing water systems, including, but not
limited to, design and construction of improvements necessary to
resume delivery of safe drinking water.
   (c) Establishing connections to an adjacent water system.
   (d) Urgent wastewater treatment projects in order to prevent the
contamination of a drinking water source. 
   79722.  (a) From the funds described in Section 79720, four
hundred million dollars ($400,000,000) shall be available to the
state board for grants and loans for public water system
infrastructure improvements and related actions to meet primary or
secondary safe drinking water standards or contaminants identified by
the state or federal government for development of a primary or
secondary drinking water standard and ensure affordable drinking
water. Priority shall be given to projects that provide treatment for
contamination or access to alternative drinking water sources
 for small water systems or state small water systems serving
disadvantaged communities whose drinking water source is 
 in areas where drinking water sources have been  impaired
by chemical and nitrate contaminants and other health hazards
identified by the state board. Eligible recipients either operate
small water systems or state small water systems in disadvantaged
 communities.   communities or are public
agencies that are authorized to act on behalf of those systems. 
The state board may make grants for the purpose of financing
feasibility studies and to meet the eligibility requirements for a
construction grant. Eligible expenses may include initial operation
and maintenance costs for systems serving disadvantaged communities.
Special consideration will be given to projects that provide shared
solutions for multiple communities, at least one of which is a
disadvantaged community served by a small or state small water system
or private well and that lacks safe, affordable drinking water.
Construction grants shall be limited to five million dollars
($5,000,000) per project, except that the state board may set a limit
of not more than twenty million dollars ($20,000,000) for projects
that provide regional or shared solutions among multiple entities, at
least one of which is a small disadvantaged community. Not more than
25 percent of a grant may be awarded in advance of actual
expenditures.
   (b) The state board may expend up to twenty-five million dollars
($25,000,000) of the funds allocated in subdivision (a) for technical
assistance to eligible communities.
   (c) At least 10 percent of the funds available pursuant to this
section shall be allocated for projects serving severely
disadvantaged communities.
   (d) Of the funds available pursuant to subdivision (c), the state
board may expend up to ten million dollars ($10,000,000) to finance
development and demonstration of new technologies and related
facilities for water contaminant removal and treatment appropriate
for use by small water systems and state small water systems.
   (e)  The state board shall deposit   (1)
    Up to  two million five hundred thousand
dollars ($2,500,000) of the funds available pursuant to this section
 into the Drinking Water Capitol Reserve Fund, which is
hereby created in the State Treasury. Moneys in the fund, shall be
available, upon appropriation by the Legislature and shall be
administered by the state board for the purpose of serving as
matching funds for small, disadvantaged communities. The state board
shall develop criteria to implement this subdivision.  
may be available as temporary initial funding for a pooled capital
reserve among small water systems and state small water systems. This
pooled capital reserve would be administered by the state board. The
purpose of the pooled capital reserve would be to allow
participating systems to collect sufficient financial capacity from
the system's ratepayers over an affordable schedule. The funds
available pursuant to this subdivision shall be utilized only if the
state board determines that there are insufficient deposits from any
participating small water systems and state small water systems in
the pooled capital reserve. If bond funds will be used pursuant to
this subdivision, the state board shall develop criteria to implement
this subdivision that includes full repayment   provisions
for any withdrawals from the pooled capital reserve.  
   (2) This subdivision shall become inoperative on January 1, 2024.
 
   79723.  (a) From the funds described in Section 79720, four
hundred million dollars ($400,000,000) shall be available to the
state board for deposit in the State Water Pollution Control
Revolving Fund Small Community Grant Fund established by Section
13477.6 for grants for wastewater treatment projects to keep
contaminants out of rivers, lakes, streams, groundwater, and coastal
waters, and for other projects to protect the public and fish and
wildlife from contaminated sources of water. Priority shall be given
to projects that serve disadvantaged communities and severely
disadvantaged communities, and to projects that address public health
hazards. Special consideration shall be given to small communities
with limited financial resources. Projects shall include, but not be
limited to, projects that identify, plan, design, and implement
regional mechanisms to consolidate wastewater systems or provide
affordable treatment technologies.
   (b) The state board may expend up to ten million dollars
($10,000,000) of the funds allocated in subdivision (a) for technical
assistance to eligible communities.
   (c) From the funds available pursuant to subdivision (a), twenty
million dollars ($20,000,000) shall be allocated to the state board
for deposit into the Domestic Well and Septic Systems Investment
Fund, which is hereby created in the State Treasury. Moneys in the
fund shall be available, upon appropriation by the Legislature, for
the purpose of providing grants and loans to domestic well and septic
owners to protect drinking water sources and ensure safe and
affordable drinking water for all Californians. The state board shall
develop criteria for the allocation of these grants and loans that
specifies these are for the benefit of small communities to treat
drinking water or protect drinking water from contamination and
includes an income threshold equivalent to the definition of a
disadvantaged community.  
   79724.  From the funds described in Section 79720, one hundred
million dollars ($100,000,000) shall be available to the state board
for grants and direct expenditures to finance urgent actions needed
to provide drinking water in disadvantaged and severely disadvantaged
communities that lack access to safe drinking water to ensure that
safe drinking water supplies are available to all Californians.
Grants awarded pursuant to this section shall not exceed two hundred
fifty thousand dollars ($250,000). Eligible actions include, but are
not limited to, the following:
   (a) Providing interim water supplies, for a period not to exceed
three years, where necessary to protect public health, including the
design, purchase, installation, and operation and maintenance of
interim water treatment equipment and systems.
   (b) Improvements in existing water systems, including, but not
limited to, design, and construction of improvements necessary to
resume delivery of safe drinking water.
   (c) Establishing connections to an adjacent water system.
   (d) Urgent wastewater treatment projects in order to prevent the
contamination of a drinking water source.  
   79725.  The state board may administer together the funds
allocated pursuant to subdivision (b) of Section 79722 and
subdivision (b) of Section 79724.  
   79726.  It is the intent of the Legislature that any funds
allocated pursuant to this chapter to an investor-owned utility
regulated by the Public Utilities Commission or a mutual water
company should be for the benefit of the ratepayers or the public and
not the investors.  
   79727.  In allocating funds pursuant to this chapter, the state
board shall consider a written statement prepared by a local agency
formation commission regarding the consolidation or extension of, or
other shared solutions for, water or sewer services.  
   79723.  The state board may administer together the funds
allocated pursuant to subdivision (b) of Section 79722 and
subdivision (b) of Section 79721.  
   79724.  (a) From the funds described in Section 79720, one billion
four hundred million dollars ($1,400,000,000) shall be available to
the department for competitive grants for projects that implement an
adopted integrated regional water management plan consistent with
Part 2.2 (commencing with Section 10530) of Division 6, as that part
may be amended.
    (b) Eligible projects are those that improve the quality or
supply of safe drinking water, increase regional water self-reliance,
or address any of the following other critical water supply
reliability issues:
   (1) Groundwater clean up or pollution prevention in sources of
drinking water.
   (2) Advanced water treatment technology projects to remove
contaminants from drinking water, water recycling, and related
projects, such as distribution or groundwater recharge
infrastructure.
   (3) Urban and agricultural water conservation and water use
efficiency projects.
   (4) Water reuse and recycling for nonpotable reuse and direct and
indirect potable reuse.
   (5) The repair or replacement of aging water management
infrastructure in disadvantaged communities.
   (6) Other integrated water infrastructure projects that address
one or more water management activities and improve the reliability
or quality of regional water supplies.
   (7) Brackish groundwater and ocean water desalination projects.
   (8) Groundwater storage.
   (9) Recycled water storage.
   (10) Sediment removal to improve storage.
   (11) Dam seismic retrofit.
   (12) Local and regional conveyance projects that will improve
regional connectivity and maximize the benefits of existing water
storage.
   (c) Funds made available pursuant to this section shall be
available upon appropriation to, and shall be administered by, the
department, in close collaboration with the state board. Specific
project and planning grant awards shall be selected jointly by the
director and chair of the state board.
   (d) Projects funded pursuant to this section shall require a local
match of not less than 25 percent of project costs, except the
department may suspend or reduce cost share requirements for projects
serving disadvantaged communities or that reduce reliance on the
Delta, consistent with Section 85021.
   (e) To be eligible for funding under this section, a region shall
comply with the following requirements:
   (1) Have an adopted integrated regional water management plan.
   (2) Each urban and agricultural water supplier that would benefit
from a project shall adopt and submit an urban or agricultural water
management plan in accordance with the Urban Water Management
Planning Act (Part 2.6 (commencing with Section 10610) of Division 6)
or the Agricultural Water Management Planning Act (Part 2.8
(commencing with Section 10800) of Division 6). Urban or agricultural
water management plans shall be certified by the department as
meeting the requirements of the Urban Water Management Planning Act
or the Agricultural Water Management Planning Act, and Sections
10608.56 and 10631.5, as those provisions may be amended.
   (3) Each local agency whose service area includes a groundwater
basin or subbasin that would benefit from a groundwater management
project shall adopt and submit a groundwater management plan in
accordance with groundwater management planning requirements
established under Division 6 (commencing with Section 10000).
Groundwater management plans shall be certified by the administering
state agency as meeting the groundwater management planning
requirements.
   (4) (A) Have a water budget that describes local and imported
water supplies and uses in sufficient detail to inform long-term
efforts towards sustainable water management and, where applicable,
include a description of the measures taken to comply with Section
85021.
   (B) The department shall develop guidelines for compliance with
this paragraph.
   (5) Where applicable, an integrated water management plan shall be
consistent with and implement Section 85021.  
   79725.  The California Water Commission shall review the
implementation of Section 79724 and shall certify that requirements
for grant eligibility pursuant to that section are met prior to the
department making final grant awards.  
   79726.  Funding described in Section 79724 shall be allocated to
hydrologic regions as identified in the California Water Plan and
listed below. For the South Coast Region, the department shall
establish three subregions that reflect the San Diego County
watersheds, the Santa Ana River watershed, and the Los
Angeles-Ventura County watersheds respectively, and allocate funds to
those subregions. The North and South Lahontan regions shall be
treated as one region for the purpose of allocating funds, but the
department may require separate regional plans. Funds available
pursuant to this section shall be allocated in accordance with the
following schedule:
   (a) Sixty-five million dollars ($65,000,000) for the North Coast
hydrologic region.
   (b) One hundred ninety-five million dollars ($195,000,000) for the
San Francisco Bay hydrologic region.
   (c) Eighty-five million dollars ($85,000,000) for the Central
Coast hydrologic region.
   (d) Two hundred eighty-four million dollars ($284,000,000) for the
Los Angeles subregion.
   (e) One hundred seventy-four million dollars ($174,000,000) for
the Santa Ana subregion.
   (f) One hundred thirty-eight million dollars ($138,000,000) for
the San Diego hydrologic region.
   (g) One hundred eighteen million dollars ($118,000,000) for the
Sacramento River hydrologic region.
   (h) Ninety-eight million dollars ($98,000,000) for the San Joaquin
River hydrologic region.
   (i) One hundred two million dollars ($102,000,000) for the
Tulare/Kern hydrologic region.
   (j) Seventy-four million dollars ($74,000,000) for the North/South
Lahontan hydrologic region.
   (k) Sixty-seven million dollars ($67,000,000) for the Colorado
River Basin hydrologic region.  
   79727.  (a) Prevention and cleanup of groundwater contamination
are critical components of successful groundwater management.
Groundwater quality becomes especially important as water providers
do the following:
   (1) 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.
   (2) Adapt to changing hydrologic conditions brought on by climate
change.
   (3) Consider developing groundwater basins to provide much needed
local storage options to accommodate hydrologic and regulatory
variability in the state's water delivery system.
   (4) Evaluate investments in groundwater recovery projects.
   (b) From the funds described in Section 79720, one billion dollars
($1,000,000,000) shall be available to the state board for
construction grants and loans for treatment and remediation projects
that prevent or reduce the contamination of groundwater that serves
as a source of drinking water.
   (c) For the purposes of awarding funding pursuant to this section,
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.
   (d) At least 10 percent of the funds available pursuant to this
section shall be allocated for projects serving severely
disadvantaged communities.
       (e) Funding authorized pursuant to this section shall include
funding for technical assistance to disadvantaged communities. The
state board shall operate a multidisciplinary technical assistance
program for small and disadvantaged communities.
   (f) Priority shall be given to projects that do any of the
following:
   (1) Have commenced a characterization study, consistent with the
State Department of Public Health's Procedure Memorandum 97-005, and
issued a notice of preparation for an environmental impact report.
   (2) Will address contamination at a site on the list maintained by
the Department of Toxic Substances Control pursuant to Section 25356
of the Health and Safety Code or listed on the National Priorities
List established pursuant to Section 105 of the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980 (42
U.S.C. Sec. 9605(a)(8)(B)).
   (3) Prevents or minimizes salt water intrusion.
   (g) The state board shall require grantees to do the following:
   (1) Make reasonable efforts to attempt to recover the costs of
cleanup from the parties responsible for the contamination. 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.
   (2) Repay grant funds that are subsequently recovered from parties
responsible for the groundwater contamination.  
   79728.  From the funds described in Section 79720, twenty million
dollars ($20,000,000) shall be available to the Department of Parks
and Recreation to address public health deficiencies in drinking
water and wastewater quality at state parks.  
   79729.  From the funds described in Section 79720, one hundred
million dollars ($100,000,000) shall be made available for
competitive grants for projects that develop groundwater management
plans, consistent with existing groundwater management planning
requirements in Division 6 (commencing with Section 10000), that
further sustainable groundwater management. 
      CHAPTER  5.  6.   WATER 
SUPPLY ENHANCEMENT   QUALITY  PROJECTS


   79730.  (a) It is the intent of the  Legislature 
 people  that this chapter provide funds to 
enhance water supplies and increase water supply reliability.
  protect water quality in the rivers, lakes, streams,
and coastal waters of the state, to assist in meeting the Federal
Water Pollution Control Act (33 U.S.C. Sec. 1251 et seq.) and other
state and federal requirements for the protection of water quality,
public health, and endangered species, and to protect or  
restore natural systems that contribute to water supply, water
quality, or flood management. 
   (b) The sum of  two billion dollars ($2,000,000,000)
  three billion one hundred eighty million dollars
($3,180,000,000)  shall be available for the purposes of this
chapter. 
   79731.  (a) From the funds described in Section 79730, one billion
five hundred million dollars ($1,500,000,000) shall be available to
the committee for competitive grants for projects that develop,
improve, or implement an adopted integrated regional water management
plan consistent with Part 2.2 (commencing with Section 10530) of
Division 6, as that part may be amended, and improve the quality or
supply of safe drinking water, reduce the amount of water imported to
the region, or address any of the following other critical water
supply reliability issues:
   (1) Groundwater clean up or pollution prevention in sources of
drinking water.
   (2) Advanced water treatment technology projects to remove
contaminants from drinking water, water recycling, and related
projects, such as distribution or groundwater recharge
infrastructure.
   (3) Urban and agricultural water conservation and water use
efficiency projects.
   (4) Water recycling projects.
   (5) The repair or replacement of aging water management
infrastructure in disadvantaged communities.
   (6) Other integrated water infrastructure projects that address
one or more water management activities and improve the reliability
or quality of regional water supplies.
   (b) Projects funded pursuant to this section shall require a local
match of not less than 25 percent of project costs, except the
committee may suspend or reduce cost share requirements for projects
serving disadvantaged communities or that result in a direct
reduction in water imported from the Delta.
   (c) To be eligible for funding under this section, a region shall
comply with the following requirements:
   (1) Have an adopted integrated regional water management plan.
   (2) Each urban and agricultural water supplier that would benefit
from a project shall adopt and submit an urban or agricultural water
management plan in accordance with the Urban Water Management
Planning Act (Part 2.6 (commencing with Section 10610) of Division 6)
or the Agricultural Water Management Planning Act (Part 2.8
(commencing with Section 10800) of Division 6). Urban or agricultural
water management plans shall be certified by the department as
meeting the requirements of the Urban Water Management Planning Act
or the Agricultural Water Management Planning Act, and Sections
10608.56 and 10631.5, as those provisions may be amended.
   (3) Each local agency whose service area includes a groundwater
basin or subbasin that would benefit from a groundwater management
project shall adopt and submit a groundwater management plan in
accordance with Part 2.75 (commencing with Section 10750) of Division
6. Groundwater management plans shall be certified by the department
as meeting the requirements of Part 2.75 (commencing with Section
10750) of Division 6, as that part may be amended.
   (4) (A) Have a water budget that describes local and imported
water supplies and uses in sufficient detail to inform long-term
efforts towards sustainable water management, and, where applicable,
include a description of any measures anticipated to reduce the
amount of water imported to the region in the future.
   (B) The department shall develop guidelines for compliance with
this paragraph.
   (5) Where applicable, an integrated water management plan shall be
consistent with and implement Section 85021.
   (d) Where applicable, funding pursuant to this section shall be
made available to water agencies to assist in directly reducing the
amount of water imported from the Delta.  
   79732.  The California Water Commission shall review the
implementation of Section 79731 and shall certify that requirements
for grant eligibility pursuant to that section are met prior to the
department making final grant awards.  
   79733.  Of the funds available pursuant to Section 79731, one
billion four hundred million dollars ($1,400,000,000) shall be
allocated to hydrologic regions as identified in the California Water
Plan and listed below. For the South Coast Region, the department
shall establish three subregions that reflect the San Diego County
watersheds, the Santa Ana River watershed, and the Los
Angeles-Ventura County watersheds respectively, and allocate funds to
those subregions. The North and South Lahontan regions shall be
treated as one region for the purpose of allocating funds, but the
committee may require separate regional plans. Funds available
pursuant to this section shall be allocated in accordance with the
following schedule:
   (a) North Coast: $65,000,000.
   (b) San Francisco Bay: $195,000,000.
   (c) Central Coast: $85,000,000.
   (d) Los Angeles subregion: $284,000,000.
   (e) Santa Ana subregion: $174,000,000.
   (f) San Diego subregion: $138,000,000.
   (g) Sacramento River: $118,000,000.
   (h) San Joaquin River: $98,000,000.
   (i) Tulare/Kern (Tulare Lake): $102,000,000.
   (j) North/South Lahontan: $74,000,000.
   (k) Colorado River Basin: $67,000,000.  
   79734.  (a) From the funds described in Section 79731, one hundred
million dollars ($100,000,000) shall be available for grants for
projects that significantly advance the application and effectiveness
of innovative integrated regional water management strategies,
including, but not limited to, the following:
   (1) Tools to model future regional climate change impacts.
   (2) Groundwater management plans and projects that further
sustainable groundwater management.
   (3) Other projects determined by the committee to advance
innovative strategies for the integration of water management.
   (b) The committee shall give priority to projects that address
groundwater overdraft and related impacts, including, but not limited
to, subsidence.  
   79731.  (a) From the funds described in Section 79730, four
hundred million dollars ($400,000,000) shall be available to the
state board for deposit in the State Water Pollution Control
Revolving Fund Small Community Grant Fund established by Section
13477.6 for grants for wastewater treatment projects to keep
contaminants out of rivers, lakes, streams, groundwater, and coastal
waters, and for other projects to protect the public and fish and
wildlife from contaminated sources of water. Priority shall be given
to projects that serve disadvantaged communities and severely
disadvantaged communities, and to projects that address public health
hazards. Special consideration shall be given to small communities
with limited financial resources. Projects shall include, but not be
limited to, projects that identify, plan, design, and implement
regional mechanisms to consolidate wastewater systems or provide
affordable treatment technologies.
   (b) The state board may expend up to ten million dollars
($10,000,000) of the funds allocated in subdivision (a) for technical
assistance to eligible communities.
   (c) From the funds available pursuant to subdivision (a), twenty
million dollars ($20,000,000) shall be allocated to the state board
for deposit into the Domestic Well and Septic Systems Investment
Fund, which is hereby created in the State Treasury. Moneys in the
fund shall be available, upon appropriation by the Legislature, for
the purpose of providing grants and loans to domestic well and septic
owners to protect drinking water sources and ensure safe and
affordable drinking water for all Californians. The state board shall
develop criteria for the allocation of these grants and loans that
specifies these are for the benefit of small communities to treat
drinking water or protect drinking water from contamination and
includes an income threshold equivalent to the definition of a
disadvantaged community. 
    79735.   79732.   (a) From the funds
described in Section 79730, five hundred million dollars
($500,000,000) shall be available to the state board for competitive
grants for projects that develop, implement, or improve a stormwater
capture and reuse plan consistent with Part 2.3 (commencing with
Section 10560) of Division 6, as that part may be amended, and that
capture and put to beneficial use stormwater or dry weather runoff.
   (b) Stormwater capture and reuse 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, as those parts may be
amended.
   (c) 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, as that
part may be amended.
   (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, 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.
   (d) 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.
   (e) The state board shall require a 25-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.
   (f) 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. 
   (g) No more than seventy-five million dollars ($75,000,000) shall
be awarded for the development of stormwater capture and reuse plans.
 
   79733.  From the funds described in Section 79730, five hundred
million dollars ($500,000,000) shall be available 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, but not
limited to, groundwater and seawater desalination and associated
treatment, storage, conveyance, and distribution facilities.
   (c) Dedicated distribution infrastructure to serve residential,
commercial, agricultural, and industrial end-user retrofit projects
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.  
   79734.  For the purpose of awarding funding under Section 79733, 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.  
   79735.  Projects funded pursuant to Section 79733 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.  
   79736.  For purposes of Section 79733, 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. 

   79737.  (a) From the funds described in Section 79730, the sum of
five hundred million dollars ($500,000,000) shall be available for
water quality, river, and watershed protection and restoration
projects of statewide importance outside of the Delta. Funds provided
by this section shall be allocated according to the following
schedule:
   (1) Two hundred fifty million dollars ($250,000,000) to implement
the Klamath Hydroelectric Settlement Agreement. Up to fifty million
dollars ($50,000,000) of the funds available pursuant to this
paragraph may be made available for restoration projects in
California pursuant to the Klamath Basin Restoration Agreement if all
of the funds available pursuant to this paragraph are not needed for
dam removal projects.
   (2) One hundred million dollars ($100,000,000) for projects that
help fulfill state obligations under 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 restoration of the Salton Sea.
   (3) One hundred million dollars ($100,000,000) for projects that
help fulfill state obligations under the San Joaquin River
Restoration Settlement, as described in Part I of Subtitle A of Title
X of Public Law 111-11.
   (4) Fifty million dollars ($50,000,000) for projects that help
fulfill state obligations under the Tahoe Regional Planning Compact
pursuant to Section 66800 of the Government Code. Funds provided by
this paragraph shall be approved pursuant to Title 7.42 (commencing
with Section 66905) of the Government Code, as those provisions may
be amended.
   (b) Expenditures funded by this section shall comply with Section
16727 of the Government Code.  
   79738.  (a) From the funds described in Section 79730, the sum of
nine hundred twenty-five million dollars ($925,000,000) shall be
available for projects that protect and improve California's
watersheds, wetlands, forests, and floodplains.
   (b) Funds available pursuant to this section shall be allocated as
follows:
   (1) Baldwin Hills Conservancy: fifteen million dollars
($15,000,000).
   (2) California Tahoe Conservancy: forty-five million dollars
($45,000,000).
   (3) Coachella Valley Mountains Conservancy: twenty million dollars
($20,000,000).
   (4) San Diego River Conservancy: twenty million dollars
($20,000,000).
   (5) San Gabriel and Lower Los Angeles Rivers and Mountains
Conservancy: sixty-five million dollars ($65,000,000).
   (6) San Joaquin River Conservancy: twenty million dollars
($20,000,000).
   (7) Santa Monica Mountains Conservancy: sixty-five million dollars
($65,000,000).
   (8) Sierra Nevada Conservancy: one hundred fifteen million dollars
($115,000,000).
   (9) State Coastal Conservancy: three hundred million dollars
($300,000,000).
   (10) Wildlife Conservation Board: two hundred ten million dollars
($210,000,000).
   (11) California Ocean Protection Council: fifty million dollars
($50,000,000).
   (c) Of the funds allocated to the State Coastal Conservancy
pursuant to paragraph (9) of subdivision (b), one hundred sixty-five
million dollars ($165,000,000) is available as follows:
   (1) Fifty million dollars ($50,000,000) shall be available for
projects that help restore coastal salmonid populations.
   (2) Seventy-five million dollars ($75,000,000) 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.
   (3) Forty million dollars ($40,000,000) shall be available for
projects that benefit the Santa Ana River watershed.
   (d) Of the funds allocated to the San Gabriel and Lower Los
Angeles Rivers and Mountains Conservancy pursuant to paragraph (5) of
subdivision (b), up to fifteen million dollars ($15,000,000) shall
be available for multibenefit coastal wetlands restoration undertaken
in coordination with the State Coastal Conservancy.
   (e) Eligible projects include those that do any of the following:
   (1) Reduce pollution or contamination of rivers, lakes, streams,
or coastal waters.
   (2) Protect or restore rural or urban watershed functions that
contribute to water supply, water quality, or flood management.
   (3) Protect and restore aquatic, coastal, wetland, and migratory
bird ecosystems, including fish and wildlife corridors.
   (4) Implement adaptation and conservation projects that improve
the ability of California's watersheds, wetlands, forests, and
floodplains to reduce the impacts of climate change on California's
communities and ecosystems including through the implementation of
natural community conservation plans and habitat conservation plans.
   (f) Priority shall be given to projects with multiple benefits
such as increased water supply, improved water quality, and improved
local or regional water quality and water supply reliability that
builds the resilience of human communities and natural habitats
against the risks of prolonged drought or the exhaustion of water
supplies.
   (g) An appropriation of funds available pursuant to this section
may include funds for planning, monitoring, and assessment of the
effectiveness of the programs and projects authorized for funding.
 
   79739.  (a) From the funds described in Section 79730, two hundred
million dollars ($200,000,000) shall be available to the secretary
for a competitive program to fund multibenefit watershed and river
enhancement projects in urban watersheds. Eligible applicants are
public agencies and nonprofit organizations. Eligible projects shall
improve watershed health, water quality, or water supply reliability.
All projects shall increase regional and local water
self-sufficiency and meet at least two or more of the following
objectives:
   (1) Promote groundwater recharge and water reuse.
   (2) Reduce energy consumption.
   (3) Use soils, plants, and natural or designed processes to treat
and capture runoff.
   (4) Create or restore native habitat.
   (5) Increase regional and local resiliency and adaptability to
climate change.
   (6) Further the purposes of the California Urban Forestry Act of
1978 (Chapter 2 (commencing with Section 4799.06) of Part 2.4 of
Division 4 of the Public Resources Code) with urban forestry projects
in the immediate proximity of the river.
   (b) At least 75 percent of the funds available pursuant to this
section shall be allocated for projects that are located in or in
close proximity to, major metropolitan cities for a river that has
adopted a revitalization plan as of January 1, 2014. Funds made
available by this subdivision are available for grants along the
entire river and its tributaries, not solely for those river reaches
covered by the revitalization plan.  
   79740.  (a) From the funds described in Section 79730, thirty
million dollars ($30,000,000) shall be available to the state board
to fund watershed activities by resource conservation districts.
   (b) To be eligible for the funding available pursuant to this
section, the board of a resource conservation district shall be
appointed by the local county board of supervisors.  
   79741.  From the funds described in Section 79730, twenty-five
million dollars ($25,000,000) shall be available to the state board
for competitive grants for special districts and nonprofit
organizations for projects that reduce or manage runoff from
agricultural lands for the benefit of surface and groundwater
quality.  
   79742.  From the funds described in Section 79730, the sum of one
hundred million dollars ($100,000,000) shall be available to the
Wildlife Conservation Board for wildlife refuges and wildlife habitat
areas under Section 3406(d) of Title 34 of Public Law 102-575. 

      CHAPTER  6.   7.   DELTA


    79740.   79750.   (a) It is the intent
of the  Legislature   people  that this
chapter provide funds to  help implement the following:

    (1)     Projects to
 protect, restore, and enhance the Delta  ecosystem
in a manner that protects and enhances   ecosystem,
improve the water quality, protect  the unique cultural,
recreational, natural resource, and agricultural values of the
 Delta as an evolving place.   Delta, and
protect the integrity of Delta levees for water conveyance and flood
control purposes.  
   (2) Projects to protect the integrity of Delta levees to safeguard
the ability to move water through the Delta while simultaneously
protecting and enhancing the unique cultural, recreational, natural
resource, and agricultural values of
         the Delta as an evolving place. 
   (b) The sum of one billion  two   three 
hundred million dollars  ($1,200,000,000)  
($1,300,000,000)  shall be available for the purposes of this
chapter.
    79742.   79751.   (a) From the funds
described in Section  79740, eight   79750, nine
 hundred million dollars  ($800,000,000)  
($900,000,000)  shall be available to the  Sacramento-San
Joaquin  Delta Conservancy for water quality, ecosystem
restoration, fish protection facilities, and community sustainability
projects that benefit the Delta, including, but not limited to, the
following:
   (1) Projects to improve water quality facilities or projects that
contribute to improvements in water quality in the Delta, including
projects in Delta counties that provide multiple public benefits and
improve drinking or agricultural water quality or water supplies.
   (2) Habitat restoration, conservation, and enhancement projects to
improve the condition of special status, at risk, endangered, or
threatened species in the Delta and the Delta counties, including
projects to eradicate invasive species, and projects that support the
beneficial reuse of dredged material for habitat restoration and
levee improvements.
   (3) Projects to assist in preserving economically viable and
sustainable agriculture and other economic activities in the Delta,
including local infrastructure projects and projects to mitigate the
economic and community impacts of any conversion of agricultural land
to habitat funded by this section.
   (4) Multibenefit recycled water projects that improve groundwater
management and Delta tributary ecosystems.
   (5) Scientific studies and assessments that support the Delta
Science Program as described in Section 85280 or projects authorized
under this section.
   (b) Of the funds available pursuant to subdivision (a), not less
than five hundred million dollars ($500,000,000) shall be made
available for purposes of paragraphs (1) and (2) of subdivision (a).

   (c) Of the funds available pursuant to subdivision (a), not less
than three hundred million dollars ($300,000,000) shall be made
available for purposes of paragraph (3) of subdivision (a). 

   (d) Of the funds available pursuant to subdivision (a), not less
than one hundred million dollars ($100,000,000) shall be made
available for purposes of paragraphs (4) and (5) of subdivision (a).

    79744.   79752.   From the funds
described in Section  79740,   79750,  four
hundred million dollars ($400,000,000) shall be available to reduce
the risk of levee failure and flood in the Delta for any of the
following:
   (a) Local assistance under the Delta levee maintenance subventions
program under Part 9 (commencing with Section 12980) of Division 6,
as that part may be amended.
   (b) Special flood protection projects under Chapter 2 (commencing
with Section 12310) of Part 4.8 of Division 6, as that chapter may be
amended.
   (c) Levee improvement projects that increase the resiliency of
levees within the Delta to withstand earthquake, flooding, or sea
level rise.
   (d) Emergency response and repair projects. 
      CHAPTER 7.  WATERSHED AND ECOSYSTEM IMPROVEMENT


   79750.  (a) It is the intent of the Legislature that this chapter
provide funds to protect and restore watersheds and urban rivers, and
address water quality deficiencies at state parks.
   (b) The sum of one billion seven hundred million dollars
($1,700,000,000) shall be available for the purposes of this chapter.

   79752.  From the funds described in Section 79750, the sum of five
hundred million dollars ($500,000,000) shall be available for water
quality, river, and watershed protection and restoration projects of
statewide importance outside of the Delta. Funds provided by this
section shall be allocated according to the following schedule:
   (a) Two hundred fifty million dollars ($250,000,000) to implement
the Klamath Hydroelectric Settlement Agreement. Up to fifty million
dollars ($50,000,000) of the funds available pursuant to this
subdivision may be made available for restoration projects in
California pursuant to the Klamath Basin Restoration Agreement if all
of the funds available pursuant to this subdivision are not needed
for dam removal projects.
   (b) One hundred million dollars ($100,000,000) for projects that
help fulfill state obligations under the Quantification Settlement
Agreement, as defined in subdivision (a) of Section 1 of Chapter 617
of the Statutes of 2002.
   (c) One hundred million dollars ($100,000,000) for projects that
help fulfill state obligations under the San Joaquin River
Restoration Settlement, as described in Part I of Subtitle A of Title
X of Public Law 111-11.
   (d) Fifty million dollars ($50,000,000) for projects that help
fulfill state obligations under the Tahoe Regional Planning Compact
pursuant to Section 66800 of the Government Code. Funds provided by
this subdivision shall be approved pursuant to Title 7.42 (commencing
with Section 66905) of the Government Code, as those provisions may
be amended.
   79754.  From the funds described in Section 79750, the sum of
eight hundred seventy-five million dollars ($875,000,000) shall be
available for projects that protect and improve California's
watersheds, wetlands, forests, and floodplains.
   (a) Funds available pursuant to this section shall be allocated as
follows:
   (1) Baldwin Hills Conservancy: $10,000,000.
   (2) California Tahoe Conservancy: $30,000,000.
   (3) Coachella Valley Mountains Conservancy: $20,000,000.
   (4) San Diego River Conservancy: $10,000,000.
   (5) San Gabriel and Lower Los Angeles Rivers and Mountains
Conservancy: $40,000,000.
   (6) San Joaquin River Conservancy: $20,000,000.
   (7) Santa Monica Mountains Conservancy: $65,000,000.
   (8) Sierra Nevada Conservancy: $65,000,000.
   (9) State Coastal Conservancy: $350,000,000.
   (10) Wildlife Conservation Board: $215,000,000.
   (11) California Ocean Protection Council: $50,000,000.
   (b) Of the funds allocated to the State Coastal Conservancy
pursuant to paragraph (9) of subdivision (a), one hundred twenty-five
million dollars ($125,000,000) are available as follows:
   (1) Fifty million dollars ($50,000,000) shall be available for
projects that help restore coastal salmonid populations.
   (2) Seventy-five million dollars ($75,000,000) 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.
   79755.  (a) From the funds described in Section 79750, two hundred
fifty million dollars ($250,000,000) shall be available to the
secretary for a competitive program to fund multibenefit watershed
and urban rivers enhancement projects in urban watersheds, including
watersheds that drain to the San Francisco Bay, that increase
regional and local water self-sufficiency and that meet at least two
or more of the following objectives:
   (1) Promote groundwater recharge and water reuse.
   (2) Reduce energy consumption.
   (3) Use soils, plants, and natural processes to treat runoff.
   (4) Create or restore native habitat.
   (5) Increase regional and local resiliency and adaptability to
climate change.
   (b) The program described in subdivision (a) shall be implemented
by state conservancies, the Wildlife Conservation Board, or other
entities designated by the secretary whose jurisdiction includes
urban watersheds. The projects are subject to a plan developed
jointly by the conservancies, the Wildlife Conservation Board, or
other designated entities in consultation with the secretary.
   (c) At least 25 percent of the funds available pursuant to this
section shall be allocated for projects that benefit disadvantaged
communities.
   (d) Up to 10 percent of the funds available pursuant to this
section may be allocated for project planning.
   79756.  From the funds described in Section 79750, twenty million
dollars ($20,000,000) shall be available to the Department of Parks
and Recreation to address public health deficiencies in drinking
water and wastewater quality at state parks.
   79757.  (a) From the funds described in Section 79750, thirty
million dollars ($30,000,000) shall be available to the state board
to fund watershed activities by resource conservation districts.
   (b) To be eligible for the funding available pursuant to this
section, the board of a resource conservation district shall be
appointed by the local county board of supervisors.
   79758.  From the funds described in Section 79750, twenty-five
million dollars ($25,000,000) shall be available to the state board
for competitive grants for special districts and nonprofit
organizations for projects that reduce or manage runoff from
agricultural lands for the benefit of surface and groundwater
quality.  
      CHAPTER 8.  WATER STORAGE PROJECTS


   79760.  (a) It is the intent of the Legislature that this chapter
provide funds to expand the existing capacity to store water in the
state.
   (b) The sum of one billion twenty-five million dollars
($1,025,000,000) shall be available for the purposes of this chapter.

   79761.  From the funds described in Section 79760, one billion
dollars ($1,000,000,000) shall be available to the commission for
water storage projects that meet the requirements of this section,
including all of the following:
   (a) Projects shall be selected by the commission through a
competitive public process that ranks projects based on the expected
public benefits received for public investment.
   (b) Eligible projects consist only of the following:
   (1) Surface storage projects identified in the CALFED Bay-Delta
Programmatic Record of Decision, dated August 28, 2000, except that
projects at Lake Shasta shall not be eligible.
   (2) Groundwater storage projects and groundwater contamination
prevention or remediation projects that create additional groundwater
storage capacity.
   (3) Conjunctive use and reservoir reoperation projects including
associated infrastructure.
   (4) Projects that restore the capacity of reservoirs currently
impaired by sediment buildup, seismic vulnerability, or other
impairment.
   (5) Projects that result in a permanent reduction of water
exported from the Delta and a transfer of the equivalent water right
to instream flow pursuant to Section 1707. Priority shall be given to
projects that also result in the permanent elimination of irrigation
runoff contributing to salinity in the San Joaquin Valley.
   (6) Recycled water storage facilities.
   (c) A project within the Delta watershed shall not be funded
unless it provides measurable improvements to the Delta ecosystem.
   (d) Funds allocated pursuant to this section may be expended
solely for the following public benefits:
   (1) Ecosystem improvements, including, but not limited to,
changing timing of diversions, improvement in flow conditions,
temperature, or other benefits that contribute to restoration of
aquatic ecosystems and native fish and wildlife.
   (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 benefits.
   (e) The commission, in consultation with the Department of Fish
and Wildlife, the state board, and the department, shall develop and
adopt, by regulation, methods for quantification and management of
public benefits. The regulations shall include priorities and
relative environmental value of ecosystem benefits provided by the
Department of Fish and Wildlife and the priorities and relative
environmental value of water quality benefits as provided by the
state board.
   (f) 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 subdivision (d).
   (g) Any project constructed with funds provided by this section
shall be subject to Section 11590.
   79762.  Funds available pursuant to Section 79761 shall not be
allocated to a project until the commission approves the project
based on the following determinations:
   (a) The commission has adopted the regulations specified in
Section 79761 and specifically quantified and made public the cost of
the public benefits associated with the project.
   (b) The department has entered into a contract with each party
that will derive benefits, other than public benefits, 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.
   (c) The department has entered into a contract with the Department
of Fish and Wildlife and the state board, after those agencies have
made 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 public contributions of funds pursuant to this chapter
achieve the public benefits identified for the project.
   (d) 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 section.
   (e) All of the following conditions are met:
   (1) Feasibility studies have been completed.
   (2) 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, including the beneficial uses of the
Delta.
   (3) All environmental documentation has been completed and all
other federal, state, and local approvals, certifications, and
agreements required to be completed have been obtained.
   (f) The commission shall submit to the fiscal committees and the
appropriate policy committees of the Legislature its findings for
each criteria identified in this section for any project funded
pursuant to this chapter.
   79764.  The public benefit cost share of a project funded pursuant
to this chapter shall not exceed 50 percent of the total cost of the
project.
   79766.  From the funds described in Section 79760, twenty-five
million dollars ($25,000,000) shall be 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. 
      CHAPTER  8.    STATEWIDE WATER SYSTEM OPERATIONAL
IMPROVEMENT FOR DROUGHT PREPAREDNESS 


   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) 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.  
   79761.  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.
 
   79762.  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.  
   79763.  (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.  
   79764.  In consultation with the Department of Fish and Wildlife,
the state board, and the department, the commission shall develop and
adopt, by regulation, methods for quantification and management of
public benefits described in Section 79763 by December 15, 2016. The
regulations shall include the priorities and relative environmental
value of ecosystem benefits as provided by the Department of Fish and
Wildlife and the priorities and relative environmental value of
water quality benefits as provided by the state board.  
   79765.  (a) Except as provided in subdivision (c), funds allocated
pursuant to this chapter 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 79764 and specifically quantified and made public the cost of
the public benefits associated with the project.
   (2) The project applicant has entered into a contract with each
party that will derive benefits, other than public benefits, as
defined in Section 79763, from the project that ensures the party
will pay its share of the total costs of the project. The benefits
available to a party shall be consistent with that party's share of
total project costs.
   (3) The project applicant has entered into a contract with each
public agency identified in Section 79764 that administers the public
benefits, after that agency makes a finding that the public benefits
of the project for which that agency is responsible meet all the
requirements of this chapter, to ensure that the public contribution
of funds pursuant to this chapter achieves the public benefits
identified for the project.
   (4) The commission has held a public hearing for the purposes of
providing an opportunity for the public to review and comment on the
information required to be prepared pursuant to this subdivision.
   (5) All of the following additional conditions are met:
   (A) Feasibility studies have been completed.
   (B) The commission has found and determined that the project is
feasible, is consistent with all applicable laws and regulations, and
will advance the long-term objectives of restoring ecological health
and improving water management for beneficial uses of the Delta.
   (C) All environmental documentation associated with the project
has been completed, and all other federal, state, and local
approvals, certifications, and agreements required to be completed
have been obtained.
   (b) The commission shall submit to the Legislature its findings
for each of the criteria identified in subdivision (a) for a project
funded pursuant to this chapter.
   (c) Notwithstanding subdivision (a), funds may be made available
under this chapter for the completion of environmental documentation
and permitting of a project.  
   79766.  (a) The public benefit cost share of a project funded
pursuant to this chapter, other than a project described in
subdivision (c) of Section 79761, shall not exceed 50 percent of the
total costs of any project funded under this chapter.
   (b) A project shall not be funded unless it provides ecosystem
improvements as described in paragraph (1) of subdivision (a) of
Section 79763 that are at least 50 percent of total public benefits
of the project funded under this chapter.  
   79767.  (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.  
   79768.  Surface storage projects funded pursuant to this chapter
and described in subdivision (a) of Section 79761 may be made a unit
of the Central Valley Project as provided in Section 11290 and may be
financed, acquired, constructed, operated, and maintained pursuant
to Part 3 (commencing with Section 11100) of Division 6.  
   79769.  (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.  
   79769.5.  (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.  GENERAL PROVISIONS


   79770.  The proceeds of bonds issued and sold pursuant to this
division shall be deposited  in   into  the
Safe Drinking Water, Water Quality, and Water Supply Fund of 2014,
which is hereby created in the State Treasury. Moneys in the fund
shall be available, upon appropriation by the Legislature, in the
manner and for the purposes set forth in this division.
   79772.  An amount that equals not more than 5 percent of the funds
allocated for a program pursuant to this division may be used to pay
the administrative costs of that program.
   79774.  Up to 10 percent of funds allocated for each program
funded by this division may be used to finance 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 board in a manner that is compatible and
consistent with surface water monitoring data systems or groundwater
monitoring data systems administered by the state board.
   79776.  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  6 
 8  (commencing with Section 79760).
   79778.  (a) Prior to disbursing grants or loans pursuant to this
division, each state agency that is required to administer a
financial assistance program under this division shall develop
project solicitation and evaluation guidelines. The guidelines may
include a limitation on the dollar amount of grants to be awarded. If
the state agency has previously developed and adopted project
solicitation and evaluation guidelines that meet the requirements of
this division, it may use those guidelines.
   (b) Prior to disbursing funds pursuant to this division, the state
agency shall conduct public meetings to consider public comments
prior to finalizing the guidelines, as determined to be necessary by
the implementing state agency. The state agency shall publish the
draft solicitation and evaluation guidelines on its Internet Web site
at least 30 days before any public meetings. Upon adoption, the
state agency shall transmit copies of the guidelines to the fiscal
committees and the appropriate policy committees of the Legislature.
   (c) Projects funded with proceeds from this division shall promote
state planning priorities consistent with the provisions of Section
65041.1 of the Government Code and sustainable communities strategies
consistent with the provisions of subparagraph (B) of paragraph (2)
of subdivision (b) of Section 65080 of the Government Code.
   (d) To the extent feasible, in implementing Section 
79742,   79751,  the  Sacramento-San Joaquin
 Delta Conservancy shall seek to achieve wildlife conservation
objectives through projects on public lands or voluntary projects on
private lands. Funds available pursuant to Section  79742
  797   51  may be used, in consultation
with the Department of Fish and Wildlife, for payments to landowners
for the creation of measurable habitat improvements or other
improvements to the condition of endangered or threatened species.
The  Sacramento-San Joaquin  Delta Conservancy may develop
and implement a competitive  program for  habitat 
credit exchange mechanism in order to maximize  
enhancements that maximizes  voluntary landowner participation
in projects that provide measurable  and long-lasting 
habitat or species improvements in the Delta. These funds shall not
be used to subsidize or decrease the mitigation obligations of any
party.
   (e) In implementing Section  79742,   79751,
 the  Sacramento-San Joaquin  Delta Conservancy shall
coordinate, cooperate, and consult with the city or county in which a
grant is proposed to be expended or an interest in real property is
proposed to be acquired and with the Delta Protection Commission.
Acquisitions pursuant to Section  79742   79751
 shall be from willing sellers only.
   (f) In implementing Section  79742,   79751,
 the  Sacramento-San Joaquin  Delta Conservancy shall
require grantees to demonstrate how local economic impacts, including
impacts related to the loss of agricultural lands, will be
mitigated.
   (g) Funds provided by this division shall not be used to acquire
land via eminent domain.  Funds from this division may be
used to acquire property from willing sellers. 
   (h) Restoration and ecosystem protection projects funded by this
division shall 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.
   (i) It is the intent of the  Legislature  
people  that California's working agricultural  and forested
 landscapes be preserved wherever possible. To the extent
feasible, watershed objectives included in this division should be
achieved through use of conservation easements and voluntary
landowner participation, including, but not limited to, the use of
easements pursuant to Division 10.4 (commencing with Section 10330)
and Division 10.2 (commencing with Section 10200) of the Public
Resources Code and voluntary habitat credit exchange mechanisms. 

   (j) It is the intent of the people that any funds allocated
pursuant to this division to an investor-owned utility regulated by
the Public Utilities Commission or a mutual water company should be
for the benefit of the ratepayers or the public and not the
investors.  
   (k) In allocating funds pursuant to Section 79721, 79722, or
79731, the state board shall consider a written statement prepared by
a local agency formation commission regarding the consolidation or
extension of, or other shared solutions for, water or sewer services.

   79780.  It is the intent of the people that:
   (a) The investment of public funds pursuant to this division
result in public benefits.
   (b) Special consideration be given to projects that employ new or
innovative technology or practices, including decision support tools
that demonstrate the multiple benefits of integration of multiple
jurisdictions, including, but not limited to, water supply, flood
control, land use, and sanitation.
   79782.  The State Auditor shall annually conduct a programmatic
review and an audit of expenditures from the fund. The 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.
   79783.  Funds provided by this division shall be expended in a
manner consistent with the applicable regional water quality control
plan adopted pursuant to Chapter 4 (commencing with Section 13200) of
Division 7 in effect at the time the project is approved.
   79784.  (a) Funds provided by this division shall not be used 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.
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.
   79786.  Funds provided by this division shall not be expended to
pay costs associated with design, construction, operation,
maintenance, or mitigation of new Delta conveyance facilities.
   79788.  The Legislature may enact legislation necessary to
implement programs funded by this division.
   79790.   (a)    Eligible applicants under this
division are public agencies, nonprofit organizations, public
utilities, mutual water companies, and Indian tribes having a
federally recognized governing body carrying out substantial
governmental duties in, and powers over, any area. 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) (1) To be eligible for funding under this division, an urban
water supplier shall adopt and submit an urban water management plan
in accordance with the Urban Water Management Planning Act (Part 2.6
(commencing with Section 10610) of Division 6).  
   (2) To be eligible for funding under this division, an
agricultural water supplier shall adopt and submit an agricultural
water management plan in accordance with the Agricultural Water
Management Planning Act (Part 2.8 (commencing with Section 10800) of
Division 6).  
   (3) In accordance with Section 10608.56, an agricultural water
supplier or an urban water supplier is ineligible for funding under
this division unless it complies with the requirements of Part 2.55
(commencing with Section 10608) of Division 6. 
   79792.  (a) This division does not diminish, impair, or otherwise
affect in any manner whatsoever any area of origin, watershed of
origin, county of origin, or any other water rights protections,
including, but not limited to, rights to water appropriated prior to
December 19, 1914, provided under the law. This division does not
limit or otherwise affect the application of Article 1.7 (commencing
with Section 1215) of Chapter 1 of Part 2 of Division 2, Sections
10505, 10505.5, 11128, 11460, 11461, 11462, and 11463, and Sections
12200 to 12220, inclusive.
   (b) For the purposes of this division, an area that utilizes water
that has been diverted and conveyed from the Sacramento River
hydrologic region, for use outside the Sacramento River hydrologic
region or the Delta, shall not be deemed to be immediately adjacent
thereto or capable of being conveniently supplied with water
therefrom by virtue or on account of the diversion and conveyance of
that water through facilities that may be constructed for that
purpose after January 1, 2014.
   (c) Nothing in this division supersedes, limits, or otherwise
modifies the applicability of Chapter 10 (commencing with Section
1700) of Part 2 of Division 2, including petitions related to any new
conveyance constructed or operated in accordance with Chapter 2
(commencing with Section 85320) of Part 4 of Division 35.
   (d) Unless otherwise expressly provided, nothing in this division
supersedes, reduces, or otherwise affects existing legal protections,
both procedural and substantive, relating to the state board's
regulation of diversion and use of water, including, but not limited
to, water  right   rights  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 limits or otherwise affects the
application of Chapter 2 (commencing with Section 85320) of Part 4 of
Division 35.
   (f) 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)  or
the federal Wild and Scenic Rivers Act (16 U.S.C. Sec. 1271 et seq.),
 and funds available pursuant to this division shall not be
available for any project that could have an adverse effect on the
free flowing condition of a wild and scenic river or any other river
afforded protections pursuant to the California Wild and Scenic
Rivers Act  or the federal Wild and Scenic Rivers Act (16 U.S.C.
Sec. 1271 et seq.)  . 
   (g) Nothing in this division shall be construed to affect any
contract entered into before January 1, 2013, between the State of
California and one or more of the delta water agencies pursuant to
the authority granted under Chapter 283 of the Statutes of 1973,
Chapter 1089 of the Statutes of 1973, or Chapter 1133 of the Statutes
of 1973, as those chapters may have been amended.  
   79794.  All funds provided by this division shall be administered
and expended pursuant to existing law, as those provisions may be
amended, including, but not limited to, the Sacramento-San Joaquin
Delta Reform Act of 2009 (Division 35 (commencing with Section
85000), unless explicitly exempted by this division). 
      CHAPTER 10.  FISCAL PROVISIONS


   79820.  (a) Bonds in the total amount of  six billion
eight hundred twenty-five million dollars ($6,825,000,000), 
 ten billion five hundred million dollars ($10,500,000,000),
 or so much thereof as is necessary, not including the amount of
any refunding bonds issued in accordance with Section 79840 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 finance
committee pursuant to this section. The bonds shall be sold upon the
terms and conditions specified in a resolution to be adopted by the
finance committee pursuant to Section 16731 of the Government Code.
   79822.  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.
   79824.  (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 Drinking Water, Water Quality, and Water Supply Finance
Committee is hereby created. For purposes of this division, the Safe
Drinking Water, Water Quality, and Water Supply Finance Committee is
 "the committee"   the "committee"  as that
term is used in the State General Obligation Bond Law. The finance
committee consists of the Director of Finance, the Treasurer, the
Controller, the Director of Water Resources, and the Secretary of the
Natural Resources Agency, or their designated representatives. The
Treasurer shall serve as chairperson of the finance committee. A
majority of the finance committee may act for the finance committee.
   (b) For purposes of the State General Obligation Bond Law, the
Department of Water Resources is designated the "board."
   79826.  The finance 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.
   79828.  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.
   79830.  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 necessary to carry out Section 79832, appropriated
without regard to fiscal years.
   79832.  For the purposes of carrying out this division, the
Director of Finance may authorize the withdrawal from the General
Fund of an amount not to exceed the amount of the unsold bonds that
have been authorized by the finance committee to be sold for the
purpose of carrying out this division less any amount borrowed
pursuant to Section 79838. Any amounts withdrawn shall be deposited
in the fund. Any moneys made available under this section shall be
returned to the General Fund from proceeds received from the sale of
bonds for the purpose of carrying out this division.
   79834.  All moneys deposited in the fund that are derived from
premium and accrued interest on bonds sold 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.
   79836.  Pursuant to Chapter 4 (commencing with Section 16720) of
Part 3 of Division 4 of Title 2 of the Government Code, the cost of
bond issuance shall be paid out of the bond proceeds, including
premium, if any. To the extent the cost of bond issuance is not paid
from premiums received from the sale of bonds, the cost shall be
shared proportionally by each program funded through this division by
the applicable bond sale.
   79838.  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
79832. The amount of the request shall not exceed the amount of the
unsold bonds that the finance committee, by resolution, has
authorized to be sold for the purpose of carrying out this division.
The board shall execute any 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.
   79840.  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 the approval of the issuance
of any bonds issued to refund any bonds originally issued under this
division or any previously issued refunding bonds.
   79842.  Notwithstanding any other provision of this division, or
of the State General Obligation Bond Law, if the Treasurer sells
bonds pursuant to this division 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 investment of bond proceeds and
for the investment of earnings on those proceeds. The Treasurer 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 required or desirable under federal law 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.
   79844.  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.    The Legislature may appropriate funds
from any of the following sources for grants and direct expenditures
to accomplish the purposes of Chapter 5 (commencing with Section
79730) of Division 26.7 of the Water Code: 
   SEC. 3.    (a) The Legislature finds and declares
that voter-approved bonds enacted in the past include funding for
projects that are either no longer necessary or not as vital as other
projects to the continued supply of safe, clean, and affordable
water California needs today. Today's electorate should have the
choice to redirect proceeds from bonds approved decades ago to
superior uses given California's changing water supply needs. 

   (b) Notwithstanding any other provision of law and without
limiting any other authorized use, any unencumbered proceeds of bonds
in the following bond funds as of November 5, 2014, may be
appropriated by the Legislature for one or more of the purposes of
Sections 79724, 79729, and 79732 of the Water Code, including, but
not limited to, making grants as provided in those provisions rather
than for the purposes described in the bond acts pursuant to which
the bonds were issued:  
   (a) Notwithstanding the Water Conservation and Water Quality Bond
Law of 1986, the 1986 
    (1)     The 1986  Water Conservation
and Water Quality Bond Fund created pursuant to Section 13453 of the
Water Code. 
   (b) Notwithstanding the Water Conservation Bond Law of 1988, the
1988 
    (2)     The 1988  Water Conservation
Fund created pursuant to Section 12879.3 of the Water Code. 
   (c) Notwithstanding the Safe, Clean, Reliable Water Supply Act of
1996, the Safe, 
    (3)     The Safe,  Clean, Reliable
Water Supply Fund created pursuant to Section 78505 of the Water Code
and any accounts therein. 
   (d) Notwithstanding the Costa-Machado Water Act of 2000, the Safe

    (4)     The Safe  Drinking Water,
Clean Water, Watershed Protection, and Flood Protection Bond Fund
created pursuant to Section 79013 of the Water Code and any accounts
therein. 

(c) Prior to a grant or any other application of any unencumbered
proceeds of bonds for the purposes of Sections 79724, 79729, and
79732 of the Water Code, either the finance committee as created by
Section 79824 of the Water Code or the State Water Resources Control
Board, whomever is approving the applicable grant or otherwise
applying the bond proceeds, shall consult with the office of the
Treasurer to determine whether the application of the bond proceeds
to the particular purpose and the related operation and
administration of any related project complies with any federal
income tax restrictions and any contractual agreements then in effect
relating to the applicable bonds.
  SEC. 4.  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 Statues of 2012, is repealed.
  SEC. 5.  Sections 2 and 3 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. 6.  Sections 2 and 3 of this act shall take effect upon the
approval by the voters of the Safe Drinking Water, Water Quality, and
Water Supply Act of 2014, as set forth in that section at the
November 4, 2014, statewide general election.
   SEC. 7.    It is the intent of the Legislature to
enact legislation during the 2013-14 Regular Session that would
develop statewide groundwater management plan requirements. 
   SEC. 7.   SEC. 8.   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 fund safe drinking water, water quality, and water
supply at the earliest possible date, it is necessary that this act
take effect immediately.
  
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