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SB-6 Safe Drinking Water Act of 2008.(2007-2008)

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SB6:v98#DOCUMENT

Amended  IN  Senate  August 04, 2008

CALIFORNIA LEGISLATURE— 2007–2008 2nd Ext.

Senate Bill
No. 6

Introduced  by  Senator Machado

March 06, 2008

An act to add Division 26.7 (commencing with Section 79700) to the Water Code, relating to financing a water supply reliability and environmental restoration 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 6, as amended, Machado. Safe Drinking Water Act of 2008.
Under existing law, various measures have been approved by the voters to provide funds for water protection, facilities, and programs.
This bill would enact the Safe Drinking Water Act of 2008 which, if approved by the voters, would authorize, for the purposes of financing a specified water supply reliability and environmental restoration program, the issuance of bonds in the amount of ____ pursuant to the State General Obligation Bond Law.
The bill would provide for submission of the bond act to the voters at the ____ election.
This bill would declare that it is to take effect immediately as an urgency statute.
Vote: 2/3   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

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

DIVISION 26.7. THE SAFE DRINKING WATER ACT OF 2008

CHAPTER  1. Short Title

79700.
 This division shall be known and may be cited as the Safe Drinking Water Act of 2008.

CHAPTER  2. Findings and Declarations

79701.
 The people of California find and declare all of the following:
(a) Safeguarding supplies of clean, safe drinking water to California’s homes, businesses, and farms is an essential responsibility of government, and critical to protecting the quality of life for Californians.
(b) Providing adequate supplies of clean, safe drinking water is vital to keeping California’s economy growing and strong.
(c) Encouraging water conservation, upgrading water systems to reduce waste, and improving sewage treatment to create recycled water for businesses and large water users are commonsense measures to treat water as the precious resource that it is.
(d) Protecting lakes, rivers, and streams from pollution, cleaning up polluted groundwater supplies, and protecting water sources that supply the California State Water Project are crucial to providing a reliable supply of drinking water.

CHAPTER  3. Definitions

79702.
 Unless the context otherwise requires, the definitions set forth in this section govern the construction of this division, as follows:
(a) “Bay Delta Conservation Plan” means the plan prepared pursuant to the Planning Agreement regarding the Bay Delta Conservation Plan, dated October 6, 2006.
(b) “Bay-Delta Estuary” means the delta, Suisun Bay, and Suisun Marsh.
(c) “Committee” means the Safe Drinking Water Finance Committee created by Section 79782.
(d) “Delta” means the Sacramento-San Joaquin Delta as defined in Section 12220.
(e) “Department” means the Department of Water Resources.
(f) “Director” means the Director of Water Resources.
(g) “Disadvantaged community” has the meaning set forth in subdivision (a) of Section 79505.5.
(h) “Fund” means the Safe Drinking Water Fund of 2008 created by Section 79720.
(i) “Integrated regional water management plan” means a comprehensive plan for a defined geographic area, the specific development and content of which shall be defined by guidelines adopted by the department. At a minimum, an integrated regional water management plan describes the major water-related objectives and conflicts within a region, considers a broad variety of water management strategies, and identifies the appropriate combination of water demand and supply management alternatives, water quality protections, and environmental stewardship actions to provide long-term, reliable, and high-quality water supplies and to protect the environment at the lowest reasonable cost and with the highest possible benefits to the environment and to water users.
(j) “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 Internal Revenue Code.
(k) “Public agency” means a state agency or department, district, joint powers authority, city, county, city and county, or other political subdivision of the state.
(l) “Secretary” means the Secretary of the Resources Agency.
(m) “State General Obligation Bond Law” means the State General Obligation Bond Law (Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2 of the Government Code).

CHAPTER  4. General Provisions

79710.
 An amount that equals not more than 5 percent of the funds allocated for a grant program pursuant to this division may be used to pay the costs to administer that program.

79711.
 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.

79712.
 (a) Prior to disbursing grants pursuant to this division, each state agency that is required to administer a grant 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.
(b) Prior to disbursing grants, the state agency shall conduct two public meetings to consider public comments prior to finalizing the guidelines. The state agency shall publish the draft solicitation and evaluation guidelines on its Internet Web site at least 30 days before the public meetings. One meeting shall be conducted at a location in northern California, and one meeting shall be conducted at a location in southern California. Upon adoption, the state agency shall transmit copies of the guidelines to the fiscal committees and the appropriate policy committees of the Legislature.

79713.
 It is the intent of the people that the investment of public funds pursuant to this division should result in public benefits.

79714.
 The State Auditor shall annually conduct an audit of expenditures from the fund. The State Auditor shall report its findings to the Governor and the Legislature, and shall make the findings available to the public.

79715.
 Funds provided by this division shall not be used to support or pay for the mitigation obligations of private parties or local agencies under state or federal law.

CHAPTER  5. Safe Drinking Water Fund of 2008

79720.
 The proceeds of bonds issued and sold pursuant to this division shall be deposited in the Safe Drinking Water Fund of 2008, which is hereby created.

CHAPTER  6. Water Supply Reliability

79721.
 The sum of two billion dollars ($2,000,000,000) shall be available for appropriation by the Legislature from the fund to the department for competitive grants for water supply reliability in accordance with this chapter.

79722.
 (a) Except as provided in subdivision (g), the department shall award grants to eligible projects that are consistent with an adopted integrated regional water management plan.
(b) An urban water supplier that does not prepare, adopt, and submit its urban water management plan in accordance with the Urban Water Management Planning Act (Part 2.6 (commencing with Section 10610) of Division 6) is ineligible to receive funds made available pursuant to this chapter until the urban water management plan is prepared and submitted in accordance with the requirements of that act.
(c) For the purposes of awarding a grant under this chapter, the department shall require a local cost share of not less than 50 percent of project costs. The department may waive or reduce the cost-sharing requirement for projects that directly benefit a disadvantaged community.
(d) Eligible projects include all of the following:
(1) Agricultural and urban water use efficiency implementation projects, as well as feasibility studies, technical assistance, education, and public outreach, and projects that result in water savings, increased instream flow, improved water quality, or increased energy efficiency.
(2) Recycling, reclamation, desalination, and associated facilities, including distributions systems.
(3) Groundwater and surface storage projects, and conjunctive use and reservoir reoperations projects.
(4) Groundwater contamination prevention, cleanup, and treatment, and other water quality projects necessary to protect existing or potential water supplies. The implementation of a project financed pursuant to this paragraph does not relieve a responsible party or liable person from that person’s obligation under existing state or federal law to clean up or remediate, or otherwise treat, contaminated water.
(5) Other projects that improve water supply reliability or improve the supply and delivery of safe drinking water.
(e) Eligible applicants are public agencies, public utilities, and mutual water companies. To be eligible for funding under this chapter, projects proposed by public utilities that are regulated by the Public Utilities Commission and mutual water companies shall have a clear and definite public purpose and shall benefit the customers of those respective water systems.
(f) The funding provided in Section 79721 shall be allocated to each hydrologic region as identified in the California Water Plan in accordance with this subdivision. For the South Coast hydrologic region, the department shall establish three funding areas that reflect the watersheds of San Diego County and southern Orange County (designated as the San Diego subregion), the Santa Ana River watershed (designated as the Santa Ana subregion), and the Los Angeles and Ventura County watersheds (designated as the Los Angeles subregion), and shall allocate funds to those areas in accordance with this subdivision. The North and South Lahontan hydrologic regions shall be treated as one area for the purpose of allocating funds. The department may recognize multiple integrated regional water management plans in each of the areas allocated funding. Funds made available by this chapter shall be allocated as follows:
(1) North Coast
 $70,000,000
(2) San Francisco Bay
$240,000,000
(3) Central Coast
 $95,000,000
(4) Los Angeles subregion
$369,000,000
(5) Santa Ana subregion
$200,000,000
(6) San Diego subregion
$161,000,000
(7) Sacramento River
$131,000,000
(8) San Joaquin River
$103,000,000
(9) Tulare/Kern
$109,000,000
(10) North/South Lahontan
 $53,000,000
(11) Colorado River Basin
 $69,000,000
(12) Interregional
$400,000,000
(g) Interregional funds may be expended directly or granted by the department to address multiregional needs or statewide priorities, including, but not limited to, any of the following:
(1) Investing in new water technology development and deployment.
(2) Meeting state water recycling goals.
(3) Adapting to climate change impacts.
(4) Reducing contributions to climate change.
(5) Other projects to improve statewide water management systems.

CHAPTER  7. Delta Sustainability

79730.
 (a) The Bay-Delta Estuary is a unique and irreplaceable combination of environmental and economic resources. Current management and use of the delta is are not sustainable, and results result in a high level of conflict among various interests. Future delta sustainability is threatened by changing hydrology, climate change, flood risk, seismic events, nonnative species, toxics, and other environmental problems. Future management of the delta must improve delta ecosystem health and improve the means of delta water conveyance in order to protect drinking water quality, improve water supply reliability, restore ecosystem health, and preserve sustainable agricultural and recreational values in the delta. Many sources of funding will be needed to implement improved delta management.
(b) This chapter provides state funding for public benefits associated with projects needed to assist in the delta’s sustainability as a vital resource for fish, wildlife, water quality, water supply, agriculture, and recreation.
(c) In implementing this chapter, the department, taking into consideration the recommendations of the Bay Delta Conservation Plan and the Blue Ribbon Task Force established by Executive Order S-17-06, shall develop, in cooperation with the Department of Fish and Game and the State Water Resources Control Board, a comprehensive delta sustainability program that includes both water conveyance and ecosystem improvements, and that meets the following criteria:
(1) Reduces impacts to native fish caused by the operation of the export pumps and improves the operational flexibility and ability of the State Water Project and the Central Valley Project to provide the benefits described by this subdivision.
(2) Provides conditions that will allow for habitat improvements for fish and wildlife in the delta.
(3) Provides improved water supply reliability and conveyance for the State Water Project and the Central Valley Project and for water transfers.
(4) Reduces the quantity of bromide, total organic carbon, and total dissolved solids in the water pumped at state and federal water pumping facilities to protect the public health and improves the ability of the State Water Project and the Central Valley Project to manage salinity.
(5) Reduces vulnerability to seismic events in or near the delta and provides flexibility to manage uncertainties associated with climate change and future fishery needs.
(d) Funds provided by this chapter may not be expended for the design or construction of delta water transfer facilities. All costs related to any water conveyance improvements shall be the responsibility of the agencies that benefit from those improvements.
(e) The Legislature may only amend or repeal this section by a statute that is passed in each house by rollcall vote entered into the journal, two-thirds of the membership concurring.

79731.
 The sum of two billion four hundred million dollars ($2,400,000,000) shall be available for appropriation by the Legislature from the fund for grants and direct expenditure, as follows:
(a) One billion dollars ($1,000,000,000) for projects that provide public benefits and support delta sustainability options, including projects that do any of the following:
(1) Ensure that urban and agricultural water supplies derived from the delta, including water supplies used within the delta to support beneficial uses, are not disrupted because of catastrophic failures of delta levees resulting from earthquakes, floods, land sinking, rising ocean levels, or other forces.
(2) Improve the quality of drinking water derived from the delta.
(3)  Provide physical improvements or other actions to create waterflow conditions within the delta to provide adequate habitat for native fish and wildlife.
(4) Create sustainable land use patterns and flood structures in the delta.
(5) Protect transportation and other vital infrastructure in and around the delta.
(6) Facilitate other projects that provide public benefits and support delta sustainability options approved by the Legislature, including costs associated with planning, monitoring, and design of alternatives, and project modifications and adaptations necessary to achieve the goals of this chapter. Not more than 5 percent of the funds allocated under this chapter may be expended for planning, monitoring, and design.
(b) One billion four hundred million dollars ($1,400,000,000) for projects to protect and enhance the sustainability of the delta ecosystem, including any of the following:
(1) Projects for the development and implementation of the Bay Delta Conservation Plan and projects that are consistent with the findings of the Blue Ribbon Task Force established by Executive Order S-17-06. The Bay Delta Conservation Plan shall identify projects for the enhancement and sustainability of selected fish species, and shall be developed to meet the requirements of Chapter 10 (commencing with Section 2800) of Division 3 of the Fish and Game Code. The projects shall be implemented through a cooperative effort among regulatory agencies, regulated and potentially regulated entities, and affected parties, including state and federal water contractors. These funds may be expended for the preparation of environmental documentation and environmental compliance, and for implementing projects identified in the Bay Delta Conservation Plan.
(2) Other projects to protect and restore native fish and wildlife dependent on the delta ecosystem, including the removal or reduction of undesirable invasive species.
(3) Projects to reduce greenhouse gas emissions from exposed delta soils.
(c) (1) Expenditure of any portion of the funds provided pursuant to this chapter is contingent on the adoption of a comprehensive plan for delta sustainability.
(2) The water agency members and nongovernment organization members of the Bay Delta Conservation Steering Committee shall recommend to the secretary a cost-share formula for the nonstate funded share of projects proposed for funding pursuant to paragraph (1) of subdivision (b).

8.Water Storage
79740.

The sum of ____ shall be available for appropriation by the Legislature from the fund for competitive grants for water storage projects in accordance with this chapter.

CHAPTER  8. Surface Water Storage Projects

79740.
 (a) The sum of three billion dollars ($3,000,000,000) shall be available for appropriation by the Legislature from the fund for surface water storage projects in accordance with this chapter.
(b) The following projects are eligible for funding made available pursuant to this chapter.
(1) One hundred percent of the costs to design and construct an off-stream storage project near the town of Maxwell, including constructing any new, or modifying any existing, conveyance facilities necessary to convey water to the reservoir or from the reservoir to the Sacramento River, provided that the project is designed, constructed, and operated solely to provide public benefits.
(2) The state’s share of the costs associated with providing public benefits resulting from the construction and operation of a reservoir on the San Joaquin River upstream of Friant Dam, provided that the reservoir is designed, constructed, and operated by the United States Bureau of Reclamation.

79741.
 For purposes of this chapter, the following terms have the following meanings:
(a) “Commission” means the California Water Commission established pursuant to Section 150.
(b) “Public benefits” means the benefits described in Section 79742.

79742.
 (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, reducing diversions from the delta, improvement in flow conditions, temperature, or other benefits that contribute to the 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.
(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, provided that Congress authorizes the United States Army Corps of Engineers to participate in the project and the United States Army Corps of Engineers agrees to participate in the project.
(4) Reduction in greenhouse gas emissions related to water system operation.
(5) Surplus water supply, provided that the requirements of all other public purposes identified in this subdivision are met first.
(b) For the purposes of this chapter, “public benefits” does not include the costs of environmental mitigation measures or compliance obligations established under state or federal law prior to the enactment of this division.

79743.
 (a) The commission, by December 31, 2010, shall adopt regulations to implement this chapter.
(b) 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 undertaken 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).

79744.
 (a) Funds shall not be expended for the design of any facility eligible for funding by this chapter beyond that necessary for compliance with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), until the commission finds that the project’s engineering is feasible, the project is economically justified and financially sound, and provides measurable improvements to the delta ecosystem.
(b) Funds shall not be expended for the construction of any facility eligible for funding pursuant to this chapter until the commission finds the project meets all of the following conditions:
(1) All regulatory and operational permits are secured.
(2) All necessary water rights are secured.
(3) The United States Army Corps of Engineers has approved all flood operations.
(4) The department has finalized any necessary joint operations agreements with the United States Bureau of Reclamation or any other joint operations partners.

79745.
 To assist the commission in making its finding pursuant to Section 79744, the department shall provide the commission with all of the following for each project:
(a) A general description of the project plan, purpose, and proposed accomplishments, with a map showing the project features and service area.
(b) Studies of water resources and water requirements, including project operational studies demonstrating the proposed accomplishments of the project.
(c) The status of water rights necessary for operation of the project.
(d) Preliminary designs and cost estimates of the project features in sufficient detail to establish the probable cost of the project, including both capital and annual operations and maintenance costs.
(e) Economic studies to establish the benefits and economic justification of the project, including a discussion of the least costly alternative to the proposed project that will produce similar results, is financially and environmentally feasible, and whose engineering is feasible.
(f) Financial studies indicating the proposed method of financing, sources of revenue for construction and annual operations and maintenance costs, and repayment schedule.
(g) A construction schedule and an estimate of the amount of state funds required each year.
(h) Other information that the commission may require.

79746.
 (a) (1) A project is not eligible for funding under this chapter unless, by January 1, 2014, all of the conditions established by this chapter are met.
(2) If, as of January 1, 2014, after reserving sufficient funds to meet state funding obligations for eligible projects, there are any remaining funds authorized by this chapter, those funds are available for appropriation pursuant to Chapter 6 (commencing with Section 79721), in proportion to the schedule set forth in subdivision (f) of Section 74722.
(b) If compliance with subdivision (a) is delayed by litigation or failure to adopt regulations, the date in subdivision (a) shall be extended by the commission for a time period that does not exceed the time period of the delay.

CHAPTER  9. Water Conservation

79750.
 The sum of ____ shall be available for appropriation by the Legislature from the fund to develop and implement a plan to do both of the following:
(a) Achieve a 20 percent reduction in per capita water use statewide by 2020.
(b) Achieve a ____ percent reduction in agricultural water use statewide by 2020.

CHAPTER  10. Protecting Delta Floodplain

79755.
 The sum of ____ shall be available for appropriation by the Legislature from the fund to protect the delta floodplain in accordance with this chapter.

CHAPTER  11. Delta Disaster Planning and Interim Actions

79760.
 The sum of ____ shall be available for appropriation by the Legislature from the fund for delta disaster planning and interim actions in accordance with this chapter.

CHAPTER  12. Delta Water Quality

79765.
 The sum of ____ shall be available for appropriation by the Legislature from the fund to improve delta water quality in accordance with this chapter.

CHAPTER  13. Conservation and Pollution Cleanup

79770.
 The sum of one billion dollars ($1,000,000,000) shall be available for appropriation by the Legislature from the fund for expenditures and grants for resource stewardship, ecosystem restoration, and urban watershed, and stormwater management projects, including, but not limited to, all of the following watersheds:
(a) The San Joaquin River watershed.
(b) The Sacramento River watershed.
(c) The Salton Sea and Colorado River watersheds.
(d) The Los Angeles River watershed.
(e) The San Gabriel River watershed.
(f) The Santa Ana River watershed.
(g) The Klamath River , River, including the Trinity, Scott, and Shasta Rivers and watersheds.
(h) North coast watersheds.
(i) San Francisco Bay watersheds.
(j) Central coast watersheds.
(k) South coast watersheds.
(l) Lake Tahoe Basin watershed.
(m) Kern River and Tulare Basin.
(n) San Diego County coastal watersheds.
(o) The Ventura River watershed.
(p) The Sierra Nevada Mountain Mountains watersheds.

79771.
 (a) Funds provided for the Sacramento River and San Joaquin River watersheds under Section 79770 shall be available for projects consistent with the ecosystem restoration program element of the California Bay-Delta Program, or its successor.
(b) Funds provided for Salton Sea watershed projects under Section 79770 shall be available for Salton Sea restoration activities identified for “Period I” in the Resources Agency report entitled “Salton Sea Ecosystem Restoration Program Preferred Alternative Report and Funding Plan,” dated May 2007.
(c) Funds provided for the Lake Tahoe Basin watershed under Section 79770 shall be available for projects consistent with the Lake Tahoe Environmental Improvement Program.
(d) Funds provided for the Los Angeles River and San Gabriel River watersheds under Section 79770 shall be available pursuant to Section 79508, and for projects within the City of Los Angeles, consistent with the Los Angeles River Revitalization Master Plan.

79772.
 (a) The sum of eighty-five million dollars ($85,000,000) shall be available for appropriation by the Legislature from the fund to the Department of Fish and Game for expenditures and grants to protect the delta ecosystem and the state’s water supply from invasive species, including, but not limited to, asiatic clams, zebra mussels, quagga mussels, and New Zealand mud snails.
(b) At least fifty million dollars ($50,000,000) of the funds provided pursuant to subdivision (a) shall be available for grants to public agencies, including water agencies, to pay for capital expenditures associated with the control of invasive species, including, but not limited to, chlorination facilities, habitat modifications, and monitoring equipment. The Department of Fish and Game shall administer the grant program.

For restoration and ecosystem protection projects under this chapter, the services of the California Conservation Corps or community conservation corps shall be used whenever feasible.

79774.
 Funds provided under this chapter may be appropriated to the Resources Agency, the Department of Fish and Game, the Department of Parks and Recreation, or state conservancies for expenditures and grants consistent with this chapter.

79774.1.
 Of the funds made available pursuant to this chapter, not less than two hundred million dollars ($200,000,000) shall be available to the State Coastal Conservancy for coastal watershed projects.

79774.2.
 Of the funds provided in Section 79770, not less than one hundred million dollars ($100,000,000) shall be available to the Wildlife Conservation Board for direct expenditure or grants for the acquisition of water rights from willing sellers and the conveyance of water for the benefit of migratory birds on wildlife refuges and wildlife habitat areas subject to Section 3406(d) of the federal Central Valley Project Improvement Act (Public Law 102-575).

79774.5.
 For the purposes of this chapter, the terms “restoration” and “protection” have the meanings set forth in Section 75005 of the Public Resources Code.

CHAPTER  14. Groundwater Protection and Water Quality

79775.
 The sum of four hundred million dollars ($400,000,000) shall be available for appropriation by the Legislature from the fund for expenditures, grants, and loans for projects to prevent or reduce the contamination of groundwater that serves as a source of drinking water. Funds appropriated by this chapter shall be available for projects necessary to protect public health by preventing or reducing the contamination of groundwater that serves as a major source of drinking water for a community.
(a) Projects shall be prioritized based upon the following criteria:
(1) The threat posed by groundwater contamination to the affected community’s overall drinking water supplies, including the need for treatment of alternative supplies if groundwater is not available due to contamination.
(2) The potential for groundwater contamination to spread and reduce drinking water supply and water storage for nearby population areas.
(3) The potential of the project, if fully implemented, to enhance local water supply reliability.
(4) The potential of the project to increase opportunities for groundwater recharge and optimization of groundwater supplies.
(b) The board shall give additional consideration to projects that meet any of the following criteria:
(1) The project is implemented pursuant to a comprehensive basinwide groundwater quality management and remediation plan or is necessary to develop a comprehensive groundwater plan.
(2) Affected groundwater provides a local supply that, if contaminated and not remediated, will require import of additional water from outside the region.
(3) The project will serve an economically disadvantaged community.
(4) The project is part of a basinwide management and remediation plan for which federal funds have been allocated.
(5) The project addresses 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 a site listed on the National Priorities List pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. Sec. 9601 et seq.).
(c) The Legislature, by statute, shall establish both of the following:
(1) Requirements for repayment of grant funds in the event of cost recovery from parties responsible for the groundwater contamination.
(2) Requirements for recipients of grants to make reasonable efforts to recover costs from parties responsible for groundwater contamination.

79776.
 The sum of one hundred million dollars ($100,000,000) shall be available for appropriation by the Legislature from the fund to the State Water Resources Control Board for grants for small community wastewater treatment projects to protect water quality that meet the following criteria:
(a) The project is for the planning, design, permitting, construction, or improvement of a wastewater treatment facility, sewer system, or related infrastructure necessary to meet water quality standards or prevent contamination of surface water or groundwater resources.
(b) The project will serve a community with a population of 20,000 or less.
(c) The project meets other standards that may be established by the State Water Resources Control Board with respect to the design, construction, financing, and operation of the project.

79777.
 (a) The sum of five hundred million dollars ($500,000,000) shall be available for appropriation by the Legislature from the fund to the State Water Resources Control Board for competitive grants and loans for stormwater management and water quality projects pursuant to this section.
(b) Eligible projects shall assist in compliance with total maximum daily load (TMDL) implementation plans and be consistent with all applicable water quality permits.
(c) Eligible projects include facilities and infrastructure to reduce, manage, and treat stormwater runoff, including, but not limited to:
(1) Detention and retention basins.
(2) Dry weather diversion facilities, trash filters, and screens.
(3) Treatment wetlands creation and enhancement.
(4) Stormwater runoff reduction projects, including permeable surface installation, cisterns, and collection and treatment facilities for groundwater recharge.
(d) The board shall require not less than a 50 percent local cost share for grant funds, but may suspend or reduce the matching requirements for disadvantaged communities.
(e) The board shall award grants on a competitive basis, considering the following criteria:
(1) Water quality benefits of the project, including the project’s ability to reduce impairment of the receiving water body.
(2) Cost effectiveness.
(3) Public health benefits of the project.
(f) Eligible recipients shall include local public agencies and joint powers authorities.

79778.
 The sum of one hundred million dollars ($100,000,000) shall be transferred from the fund to the California Ocean Protection Trust Fund established pursuant to Section 35650 of the Public Resources Code for expenditure, upon appropriation by the Legislature, by the Ocean Protection Council for grants to public agencies for projects to protect and improve water quality in areas of special biological significance, as defined in subdivision (f) of Section 36700 of the Public Resources Code.

CHAPTER  15. Water Recycling Program

79779.
 The sum of two hundred fifty million dollars ($250,000,000) shall be available for appropriation by the Legislature from the fund to the State Water Resources Control Board for grants and loans for water recycling projects consistent with Article 4 (commencing with Section 79135) of Chapter 7 of Division 26. Not less than one hundred million dollars ($100,000,000) of this amount shall be available for projects to restore water supply lost as a result of groundwater contamination.

CHAPTER  16. Fiscal Provisions

79780.
 (a) Bonds in the total amount of ____, not including the amount of any refunding bonds issued in accordance with Section 79792, or so much thereof as is necessary, 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 valid and binding obligations 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 the principal of, and interest on, the bonds as the principal and interest become due and payable.
(b) The Treasurer shall sell the bonds authorized by the committee pursuant to this section. The bonds shall be sold upon the terms and conditions specified in a resolution to be adopted by the committee pursuant to Section 16731 of the Government Code.

79781.
 The bonds authorized by this division shall be prepared, executed, issued, sold, paid, and redeemed as provided in the State General Obligation Bond Law, 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 Section 16727 of the Government Code shall not apply to the extent that it is inconsistent with any other provision of this division.

79782.
 (a) Solely for the purpose of authorizing the issuance and sale, pursuant to the State General Obligation Bond Law, of the bonds authorized by this division, the Safe Drinking Water Finance Committee is hereby created. For purposes of this division, the Safe Drinking Water Finance Committee is “the committee” as that term is used in the State General Obligation Bond Law.
(b) The committee consists of the Director of Finance, the Treasurer, the Controller, the Director of Water Resources, and the Secretary for of the Resources Agency. Notwithstanding any other provision of law, any member may designate a deputy to act as that member in his or her place for all purposes, as though the member were personally present.
(c) The Treasurer shall serve as chairperson of the committee.
(d) A majority of the members of the committee shall constitute a quorum of the committee, and may act for the committee.

79783.
 The committee shall determine whether or not it is necessary or desirable to issue bonds authorized pursuant to this division 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.

79784.
 “Board,” as defined in Section 16722 of the Government Code for the purposes of compliance with the State General Obligation Bond Law, means the department.

79785.
 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, and 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 which is necessary to collect that additional sum.

79786.
 Notwithstanding Section 13340 of the Government Code, there is hereby appropriated from the General Fund in the State Treasury, for the purposes of this division, an amount that will equal the total of the following:
(a) The sum annually necessary to pay the principal of, and interest on, bonds issued and sold pursuant to this division, as the principal and interest become due and payable.
(b) The sum that is necessary to carry out the provisions of Section 79789, appropriated without regard to fiscal years.

79787.
 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. The amount of the request shall not exceed the amount of the unsold bonds that the committee has, by resolution, authorized to be sold for the purpose of carrying out this division. The board shall execute those documents required by the Pooled Money Investment Board to obtain and repay the loan. Any amounts loaned shall be deposited in the fund to be allocated in accordance with this division.

79788.
 Notwithstanding any other provision of this division, or of the State General Obligation Bond Law, if the Treasurer sells bonds that include a bond counsel opinion to the effect that the interest on the bonds is excluded from gross income for federal tax purposes under designated conditions, the Treasurer may maintain separate accounts for the bond proceeds invested and for the investment earnings on those proceeds, and may use or direct the use of those proceeds or earnings to pay any rebate, penalty, or other payment required under federal law or take any other action with respect to the investment and use of those bond proceeds, as may be required or desirable under federal law in order to maintain the tax-exempt status of those bonds and to obtain any other advantage under federal law on behalf of the funds of this state.

79789.
 For the purposes of carrying out this division, the Director of Finance may authorize the withdrawal from the General Fund of an amount or amounts not to exceed the amount of the unsold bonds that have been authorized by the committee to be sold for the purpose of carrying out this division. Any amounts withdrawn shall be deposited in the fund. Any money made available under this section shall be returned to the General Fund, with interest at the rate earned by the money in the Pooled Money Investment Account, from proceeds received from the sale of bonds for the purpose of carrying out this division.

79790.
 All money deposited in the fund that is derived from premiums and accrued interest on bonds sold pursuant to this division shall be reserved in the fund and shall be available for transfer to the General Fund as a credit to expenditures for bond interest.

79791.
 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. These costs shall be shared proportionately by each program funded through this division.

79792.
 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 electors of the state for the issuance of the bonds under this division shall include approval of the issuance of any bonds issued to refund any bonds originally issued under this division or any previously issued refunding bonds.

79793.
 The Legislature hereby finds and declares that, inasmuch as 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, the disbursement of these proceeds is not subject to the limitations imposed by that article.

SEC. 2.

 (a) Notwithstanding the requirements of Sections 9040, 9043, 9044, 9061, and 9082 of the Elections Code or any other provision of law, the Secretary of State shall submit Section 1 of this act to the voters at the ____ election.
(b) Notwithstanding Section 13115 of the Elections Code, Section 1 of this act and any other measure placed on the ballot by the Legislature for the ____ election after the 131-day deadline set forth in Section 9040 of the Elections Code shall be placed on the ballot, following all other ballot measures, in the order in which they qualified as determined by chapter number.
(c) The Secretary of State shall include, in the ballot pamphlets mailed pursuant to Section 9094 of the Elections Code, the information specified in Section 9084 of the Elections Code regarding the bond act contained in Section 1 of this act. If that inclusion is not possible, the Secretary of State shall publish a supplemental ballot pamphlet regarding this act to be mailed with the ballot pamphlet. If the supplemental ballot pamphlet cannot be mailed with the ballot pamphlet, the supplemental ballot pamphlet shall be mailed separately.

SEC. 3.

 (a) (1)  Notwithstanding Section 9051 of the Elections Code or any other provision of law, the Attorney General shall provide and return to the Secretary of State a ballot title and summary in 10-point type for all state ballot pamphlets of the ____ election that contains the following title and summary for Senate Bill ____, adopted by the Legislature at the 2007–08 Second Extraordinary Session:
“SAFE DRINKING WATER ACT OF 2008” and in the same square under those words:
“Safeguards supplies of safe, clean drinking water to California homes, farms, and businesses. Expands conservation, cleans up polluted wells, expands flood prevention and environmental protection of water sources supplying the State Water Project. Authorizes ____ billion in general obligation bonds.”
(2) The language in paragraph (1) shall be the only language included in the title and summary for Senate Bill ____, adopted by the Legislature at the 2007–08 Second Extraordinary Session, and the Attorney General shall not supplement, subtract from, or revise that language.
(3) Notwithstanding any other provision of law, including Sections 9050, 9051, 13247, 13262, and 13281 of the Elections Code, the language in paragraph (1) for the title and summary shall also be the language included in the ballot label for the condensed statement of the ballot title, and the Attorney General shall not supplement, subtract from, or revise that language, except that the Attorney General may include the fiscal impact summary prepared pursuant to Section 9087 of the Elections Code and Section 88003 of the Government Code. The ballot label is the condensed statement of the ballot title and the financial impact summary.
(b) Opposite the square, there shall be left spaces in which the voters may place a cross in the manner required by law to indicate whether they vote for or against the act.
(c) Where the voting in the election is done by means of voting machines used pursuant to law in the manner that carries out the intent of this section, the use of the voting machines and the expression of the voters’ choices by means thereof are in compliance with this section.

SEC. 4.

 Section 1 of this act shall take effect only upon the approval by the voters of the Safe Drinking Water Act of 2008, as set forth in that section.

SEC. 5.

 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 finance a critical water supply reliability and environmental restoration program as soon as possible, it is necessary that this act take effect immediately.