Bill Text

Bill Information

PDF |Add To My Favorites |Track Bill | print page

AB-2686 Clean, Safe, and Reliable Drinking Water Supply Act of 2014.(2013-2014)

SHARE THIS:share this bill in Facebookshare this bill in Twitter
AB2686:v96#DOCUMENT

Amended  IN  Assembly  May 01, 2014
Amended  IN  Assembly  April 22, 2014
Amended  IN  Assembly  March 25, 2014

CALIFORNIA LEGISLATURE— 2013–2014 REGULAR SESSION

Assembly Bill No. 2686


Introduced by Assembly Members Perea, Bigelow, Gray, and Salas
(Coauthor: Assembly Member Logue)
(Coauthor: Senator Cannella)

February 21, 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 clean, safe, and reliable drinking 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


AB 2686, as amended, Perea. Clean, Safe, and Reliable Drinking Water Supply Act of 2014.
(1) Existing law, the Safe, Clean, and Reliable Drinking Water Supply Act of 2012, if approved by the voters, would authorize the issuance of bonds in the amount of $11,140,000,000 pursuant to the State General Obligation Bond Law to finance a safe drinking water and water supply reliability program. Existing law provides for the submission of the bond act to the voters at the November 4, 2014, statewide general election.
This bill would repeal these provisions.
(2) Under existing law, various measures have been approved by the voters to provide funds for water supply and protection facilities and programs.
This bill would enact the Clean, Safe, and Reliable Drinking Water Supply Act of 2014, which, if adopted by the voters, would authorize the issuance of bonds in an unspecified amount pursuant to the State General Obligation Bond Law to finance a clean, safe, and reliable drinking water supply program.
This bill would provide for the submission of the bond act to the voters at the November 4, 2014, statewide general 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) of the Water Code, as added by Section 1 of Chapter 3 of the Seventh Extraordinary Session of the Statutes of 2009, is repealed.

SEC. 2.

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

DIVISION 26.7. Clean, Safe, and Reliable Drinking Water Supply Act of 2014

CHAPTER  1. Short Title

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

CHAPTER  2. Findings

79701.
 The people of California find and declare all of the following:
(a) Safeguarding supplies of clean and safe drinking water to California’s homes, businesses, and farms is an essential responsibility of government, and critical to protecting the quality of life for Californians.
(b) Every Californian should have access to clean, safe, and reliable drinking water, consistent with the human right to water and Section 106.3. Providing adequate supplies of clean, safe, and reliable drinking water is vital to keeping California’s economy growing and strong.
(c) Climate change has impaired California’s capacity to ensure clean, safe, and reliable drinking water, as droughts have become more frequent and more severe, and ecosystems have become stressed. Higher temperatures mean less snow pack, which is the state’s largest water reservoir. Scientists project a loss of at least 25 percent of the snow pack in the Sierra Nevada Mountains by 2050. The Colorado River basin, which provides drinking water to southern California, has experienced prolonged drought.
(d) California’s water infrastructure continues to age and deteriorate. More than 50 years ago, Californians approved the construction of the State Water Project. In the decades that followed, California’s water leaders developed the most sophisticated system of state, federal, regional, and local water infrastructure anywhere in the world. In recent decades, however, that water infrastructure and the water environment on which it depends have deteriorated.
(e) In the years since the voters approved the State Water Project, California’s population has continued to grow, from less than 16 million in 1960 to more than 37 million in 2010. A growing population and a growing economy have put greater stress on California’s natural resources, including water. The Department of Finance projects that California’s population will reach 50 million by 2049.
(f) A growing population and a growing economy have put greater stress on California’s natural resources, including water. Contamination of groundwater aquifers from economic activity in the agricultural and industrial sectors has threatened vital drinking water supplies.
(g) As California and its water infrastructure have grown, increasing demands on California’s limited water supplies and deteriorating aquatic ecosystems have led to intense conflict, further threatening the reliability of clean and safe drinking water.
(h) This division is intended to promote the coequal goals, as defined in Section 85054, of providing a more reliable water supply for California and protecting, restoring, and enhancing the Delta ecosystem.

79702.
 The people of California find and declare all of the following:
(a) A sustainable water future can provide the means for California to maintain vibrant communities, globally competitive agriculture, and healthy ecosystems, which are all a part of the quality of life that attracts so many to live in California.
(b) Responding to climate change, ensuring clean and safe drinking water, and preparing for California’s continued growth will require a diversified portfolio of strategies and investments to address the many water challenges facing California.
(c) Improving water quality offers one of the most immediate steps to ensuring a clean and safe drinking water supply. California needs water quality improvements at all parts of the hydrologic cycle, from source water in the watersheds where the state’s drinking water supplies originate to wastewater treatment and potential reuse to improve surface water quality for those who live downstream.
(d) Addressing the challenges to the sustainability of the Delta, the heart of the California water system, will help resolve some of the conflicts that impede progress in improving the statewide water system.
(e) Enhancing regional water self-reliance consistent with Section 85021 offers a key strategy for addressing climate change and improving water supply reliability. It helps the Delta and it helps local communities to address their own water challenges.

CHAPTER  3. Definitions

79703.
 Unless the context otherwise requires, the definitions set forth in this section govern the construction of this division, as follows:
(a) “CALFED Bay-Delta Program” means the program described in the Record of Decision dated August 28, 2000.
(b) “Commission” means the California Water Commission.
(c) “Committee” means the Clean, Safe, and Reliable Drinking Water Supply Finance Committee created by Section 79802.
(d) “Delta” means the Sacramento-San Joaquin Delta, as defined in Section 85058.
(e) “Delta conveyance facilities” means facilities that convey water directly from the Sacramento River to the State Water Project or the federal Central Valley Project pumping facilities in the south Delta.
(f) “Delta counties” means the Counties of Contra Costa, Sacramento, San Joaquin, Solano, and Yolo.
(g) “Department” means the Department of Water Resources.
(h) “Director” means the Director of Water Resources.
(i) “Disadvantaged community” has the meaning set forth in subdivision (a) of Section 79505.5.
(j) “Economically distressed area” means a municipality with a population of 20,000 persons or less, a rural county, or a reasonably isolated and divisible segment of a larger municipality where the segment of the population is 20,000 persons or less, with an annual median household income that is less than 85 percent of the statewide median household income, and with one or more of the following conditions as determined by the department:
(1) Financial hardship.
(2) Unemployment rate at least 2 percent higher than the statewide average.
(3) Low population density.
(k) “Fund” means the Clean, Safe, and Reliable Drinking Water Supply Fund of 2014 created by Section 79717.
(l) “Integrated regional water management plan” has the meaning set forth in Section 10534.
(m) “Nonprofit organization” means an organization qualified to do business in California and qualified under Section 501(c)(3) of Title 26 of the United States Code.
(n) “Public agency” means a state agency or department, district, joint powers authority, city, county, city and county, or other political subdivision of the state.
(o) “Rainwater” has the meaning set forth in subdivision (c) of Section 10573.
(p) “Severely disadvantaged community” has the meaning set forth in subdivision (n) of Section 116760.20 of the Health and Safety Code.
(q) “Small community water system” means a community water system that serves no more than 3,300 service connections or a yearlong population of no more than 10,000 persons.
(r) “State General Obligation Bond Law” means the State General Obligation Bond Law (Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2 of the Government Code).
(s) “State small water system” has the meaning set forth in subdivision (n) of Section 116275 of the Health and Safety Code.
(t) “Stormwater” has the meaning set forth in subdivision (e) of Section 10573.

CHAPTER  4. General Provisions

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

79706.
 Unless otherwise specified, up to 10 percent of funds allocated for each program funded by this division may be expended for planning and monitoring necessary for the successful design, selection, and implementation of the projects authorized under that program. This section shall not otherwise restrict funds ordinarily used by an agency for “preliminary plans,” “working drawings,” and “construction” as defined in the annual Budget Act for a capital outlay project or grant project. Water quality monitoring shall be integrated into the surface water ambient monitoring program administered by the State Water Resources Control Board. Watershed monitoring shall be integrated into the statewide watershed program administered by the Department of Conservation.

79707.
 Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to the development or implementation of programs or projects authorized or funded under this division other than Chapter 9 (commencing with Section 79760).

79708.
 (a) Prior to disbursing grants or loans pursuant to this division, each state agency that receives an appropriation from the funding made available by this division to administer a competitive grant or loan program under this division shall develop and adopt project solicitation and evaluation guidelines. The guidelines shall include monitoring and reporting requirements and may include a limitation on the dollar amount of grants or loans to be awarded.
(b) Prior to disbursing grants or loans, the state agency shall conduct three 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, one meeting shall be conducted at a location in the central valley of 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.

79709.
 It is the intent of the people that:
(a) The investment of public funds pursuant to this division will result in public benefits that address the most critical statewide needs and priorities for public funding.
(b) In the appropriation and expenditure of funding authorized by this division, priority will be given to projects that leverage private, federal, or local funding or produce the greatest public benefit.
(c) A funded project advances the purposes of the chapter from which the project received funding.
(d) In making decisions regarding water resources, state and local water agencies use the best available science to inform those decisions.
(e) Special consideration will be given to projects that employ new or innovative technology or practices, including decision support tools that support the integration of multiple jurisdictions, including, but not limited to, water supply, flood control, land use, and sanitation.
(f) Evaluation of projects considered for funding pursuant to this division will include review by professionals in the fields relevant to the proposed project.
(g) To the extent practicable, a project supported by funds made available by this division will include signage informing the public that the project received funds from the Clean, Safe, and Reliable Drinking Water Supply Act of 2014.

79710.
 (a) The California State Auditor shall annually conduct a programmatic review and an audit of expenditures from the fund.
(b) Notwithstanding Section 10231.5 of the Government Code, the California State Auditor shall report its findings annually on or before March 1 to the Governor and the Legislature, and shall make the findings available to the public.
(c) If an audit, required by statute, of any entity that receives funding authorized by this division is conducted pursuant to state law and reveals any impropriety, the California State Auditor or the Controller may conduct a full audit of any or all of the activities of that entity.
(d) The state agency issuing any grant or loan with funding authorized by this division shall require adequate reporting of the expenditures of the funding from the grant or loan.

79711.
 (a) Funds provided by this division shall not be expended to support or pay for the costs of environmental mitigation measures 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) Any acquisitions of water supported by funds provided by this division shall be long-term transfers or purchases of water rights.

79712.
 Funds provided by this division shall not be expended to pay the costs of the design, construction, operation, mitigation, or maintenance of Delta conveyance facilities. Those costs shall be the responsibility of the water agencies that benefit from the design, construction, operation, or maintenance of those facilities.

79713.
 (a) This division does not diminish, impair, or otherwise affect in any manner whatsoever any area of origin, watershed of origin, county of origin, or any other water rights protections, including, but not limited to, rights to water appropriated prior to December 19, 1914, provided under the law. This division does not limit or affect the application of Article 1.7 (commencing with Section 1215) of Chapter 1 of Part 2 of Division 2, Sections 10505, 10505.5, 11128, 11460, 11461, 11462, and 11463, and Sections 12200 to 12220, inclusive.
(b) For the purposes of this division, an area that utilizes water that has been diverted and conveyed from the Sacramento River hydrologic region, for use outside the Sacramento River hydrologic region or the Delta, shall not be deemed to be immediately adjacent thereto or capable of being conveniently supplied with water therefrom by virtue or on account of the diversion and conveyance of that water through facilities that may be constructed for that purpose after January 1, 2014.
(c) Nothing in this division supersedes, limits, or otherwise modifies the applicability of Chapter 10 (commencing with Section 1700) of Part 2 of Division 2, including petitions related to any new conveyance constructed or operated in accordance with Chapter 2 (commencing with Section 85320) of Part 4 of Division 35.
(d) Unless otherwise expressly provided, nothing in this division supersedes, reduces, or otherwise affects existing legal protections, both procedural and substantive, relating to the state board’s regulation of diversion and use of water, including, but not limited to, water right priorities, the protection provided to municipal interests by Sections 106 and 106.5, and changes in water rights. Nothing in this division expands or otherwise alters the state board’s existing authority to regulate the diversion and use of water or the courts’ existing concurrent jurisdiction over California water rights.
(e) Nothing in this division shall be construed to affect the California Wild and Scenic Rivers Act (Chapter 1.4 (commencing with Section 5093.50) of Division 5 of the Public Resources Code) and funds authorized pursuant to this division shall not be available for any project that could have an adverse effect on the values upon which a wild and scenic river or any other river is afforded protections pursuant to the California Wild and Scenic Rivers Act.
(f) Nothing in this division supersedes, limits, or otherwise modifies the Sacramento-San Joaquin Delta Reform Act of 2009 (Division 35 (commencing with Section 85000)).

79714.
 Eligible applicants under this division are public agencies, nonprofit organizations, public utilities, and mutual water companies. To be eligible for funding under this division, a project proposed by a public utility that is regulated by the Public Utilities Commission or a mutual water company shall have a clear and definite public purpose and shall benefit the customers of the water system.

79715.
 The Legislature may enact legislation necessary to implement programs funded by this division, except as otherwise provided in Section 79770.

79716.
 (a) Unless otherwise specified, any state agency that has the statutory authority to implement one or more of the purposes specified in this bond may be eligible for appropriations from the funding made available by this division.
(b) Funding made available by this division shall not be appropriated by the Legislature to a specific project.
(c) Projects funded pursuant to this division may use the services of the California Conservation Corps or certified community conservation corps, as defined in Section 14507.5 of the Public Resources Code.

79717.
 The proceeds of bonds issued and sold pursuant to this division shall be deposited in the Clean, Safe, and Reliable Drinking Water Supply Fund of 2014, which is hereby created in the State Treasury.

79718.
 Each state agency that receives an appropriation of funding made available by this division shall be responsible for establishing metrics of success and reporting the status of projects and all uses of the funding on the state’s bond accountability Internet Web site, as provided by statute.

CHAPTER  5. Clean, Safe, and Reliable Drinking Water

79720.
 The sum of one billion dollars ($1,000,000,000) shall be available, upon appropriation by the Legislature from the fund, for expenditures, grants, and loans for projects that improve water quality or help provide clean, safe, and reliable drinking water to all Californians.

79721.
 The projects eligible for funding pursuant to this chapter shall help improve water quality for a beneficial use. The purposes of this chapter are to:
(a) Reduce contaminants in drinking water supplies regardless of the source of the water or the contamination, including the assessment and prioritization of the risk to the safety of drinking water supplies.
(b) Address the critical and immediate needs of disadvantaged, rural, or small communities that suffer from contaminated drinking water supplies, including, but not limited to, projects that address a public health emergency.
(c) Leverage other private, federal, state, and local drinking water quality and wastewater treatment funds.
(d) Reduce contaminants in discharges to, and improve the quality of, surface water streams.
(e) Improve water quality of surface water streams, including multibenefit stormwater quality projects.
(f) Prevent further contamination of drinking water supplies.
(g) Provide disadvantaged communities with public drinking water infrastructure that provides clean, safe, and reliable drinking water supplies that the community can sustain over the long term.
(h) Ensure access to clean, safe, reliable, and affordable drinking water for California’s communities.

79722.
 (a) A project that receives funding under this chapter shall be selected by a competitive grant or loan process with added consideration for those projects that leverage private, federal, or local funding. This subdivision shall not apply to projects for the purposes of Section 79727 that address a public health priority for which no other source of funding can be identified.
(b) An agency administering grants or loans for the purposes of this chapter shall assess the capacity of a community to pay for the operation and maintenance of the facility to be funded.
(c) A project that receives funding authorized by this chapter may be implemented by any public water system or other public water agency.

79723.
 An applicant for a project to clean up a groundwater aquifer shall demonstrate that a public agency has authority to manage the water resources in that aquifer in order to be eligible for funding pursuant to this chapter. A groundwater management plan adopted and approved pursuant to Part 2.75 (commencing with Section 10750) of Division 6 shall be deemed sufficient to satisfy the requirement of this section. This section does not apply to projects that install treatment facilities at the wellhead, customer connection, or the tap.

79724.
 The contaminants that may be addressed with funding pursuant to this chapter may include, but shall not be limited to, nitrates, perchlorate, MTBE (methyl tertiary butyl ether), arsenic, selenium, hexavalent chromium, mercury, PCE (perchloroethylene), TCE (trichloroethylene), DCE (dichloroethene), DCA (dichloroethane), 1,2,3-TCP (trichloropropane), carbon tetrachloride, 1,4-dioxane, 1,4-dioxacyclohexane, nitrosodimethylamine, bromide, iron, manganese, and uranium.

79725.
 Of the funds authorized in Section 79720, not less than two hundred million dollars ($200,000,000) shall be available for deposit in the State Water Pollution Control Revolving Fund Small Community Grant Fund created pursuant to Section 13477.6 for grants for wastewater treatment projects. Priority shall be given to projects that serve disadvantaged communities and severely disadvantaged communities, and to projects that address public health hazards. Projects may include, but not be limited to, projects that identify, plan, design, and implement regional mechanisms to consolidate wastewater systems or provide affordable treatment technologies.

79726.
 (a) Of the funds authorized in Section 79720, one hundred million dollars ($100,000,000) shall be available for deposit in the Emergency Clean Water Grant Fund, established pursuant to Section 116475 of the Health and Safety Code, for grants and direct expenditures to finance public health emergencies and urgent actions, as may be determined by the Legislature, to ensure that safe drinking water supplies are available to all Californians. Eligible projects include, but are not limited to, the following:
(1) Providing interim water supplies, including, but not limited to, bottled water, where necessary to protect public health.
(2) Identifying, planning, designing, and constructing projects that improve or replace existing water systems to provide safe, reliable, accessible, and affordable drinking water, provide other sources of safe drinking water, including, but not limited to, replacement wells, and prevent contamination.
(3) Establishing connections to an adjacent water system.
(4) The design, purchase, installation, and initial operating costs for interim water treatment equipment and systems.
(b) The administering entity may expend up to ten million dollars ($10,000,000) for grants and loans to address the water quality needs of private well owners that have no other source of funding and serve members of a disadvantaged community.
(c) Funds made available pursuant to this section may be used to fund the costs of stewardship, operation, and maintenance of funded projects.

79727.
 (a) Of the funds authorized in Section 79720, four hundred million dollars ($400,000,000) shall be available for grants and loans for public water system infrastructure improvements and related actions to meet safe drinking water standards, ensure affordable drinking water, or both. Priority shall be given to projects that provide treatment for contamination or access to an alternate drinking water source or sources for small community water systems or state small water systems in disadvantaged communities whose drinking water source is impaired by chemical and nitrate contaminants and other health hazards identified by the implementing agency. Eligible recipients serve disadvantaged communities and are public agencies or incorporated mutual water companies. The implementing agency may make grants for the purpose of financing feasibility studies and to meet the eligibility requirements for a construction grant. Eligible expenses may include initial and ongoing operation and maintenance costs for systems serving disadvantaged communities. Special consideration shall be given to projects that provide shared solutions for multiple communities, at least one of which is a disadvantaged community that lacks safe, affordable drinking water and is served by a small community water system, state small water system, or a private well. Construction grants shall be limited to five million dollars ($5,000,000) per project, except that the implementing agency may set a limit of not more than twenty million dollars ($20,000,000) for projects that provide regional benefits or are shared among multiple entities, at least one of which shall be a small disadvantaged community. Not more than 25 percent of a grant may be awarded in advance of actual expenditures.
(b) The administering entity may expend up to twenty-five million dollars ($25,000,000) of the funds allocated in subdivision (a) for technical assistance to eligible communities.
(c) Funds made available pursuant to this section may be used to fund the costs of stewardship, operation, and maintenance of funded projects.

79728.
 Of the funds authorized in Section 79720, fifty million dollars ($50,000,000) shall be provided to California public university systems for competitive grants to offices within the systems for the purpose of funding applied research and education related to improvement of water quality, increasing access to clean water, improved water use efficiency, and training in the selection, operation, and maintenance of water infrastructure facilities for disadvantaged communities.

79729.
 (a) For the purposes of awarding funding under this chapter, a local cost share of not less than 50 percent of the total costs of the project shall be required. The cost-sharing requirement may be waived or reduced for projects that directly benefit a disadvantaged community or an economically distressed area.
(b) At least 10 percent of the funds available pursuant to this chapter shall be allocated for projects serving severely disadvantaged communities.
(c) Funding authorized pursuant to this chapter shall include funding for technical assistance to disadvantaged communities. The agency administering this funding shall operate a multidisciplinary technical assistance program for small and disadvantaged communities.
(d) Funding for planning activities, including technical assistance, to benefit disadvantaged communities may exceed 10 percent of the funds allocated, subject to the determination of the need for additional planning funding by the state agency administering the funding.

CHAPTER  6. Protecting Rivers, Lakes, Streams, Coastal Waters, and Watersheds

79730.
 (a) The sum of one billion five hundred million dollars ($1,500,000,000) shall be available, upon appropriation by the Legislature from the fund, in accordance with this chapter, for competitive grants for multibenefit ecosystem and watershed protection and restoration projects in accordance with statewide priorities.

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

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

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

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

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

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

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

(b) Of the funds made available by this section, the sum of seven hundred fifty million dollars ($750,000,000) shall be allocated as follows for projects that protect and improve California’s watersheds:
(1) For the watersheds of the Los Angeles and San Gabriel Rivers, one hundred fifteen million dollars ($115,000,000) for multibenefit water quality, water supply, public access, and watershed protection projects, according to the following schedule:
(A) Santa Monica Mountains Conservancy, sixty-five million dollars ($65,000,000).
(B) San Gabriel and Lower Los Angeles Rivers and Mountains Conservancy, forty million dollars ($40,000,000).
(C) Baldwin Hills Conservancy, ten million dollars ($10,000,000).
(2) California Tahoe Conservancy, twenty million dollars ($20,000,000).
(3) Coachella Valley Mountains Conservancy, twenty million dollars ($20,000,000).
(4) San Diego River Conservancy, ten million dollars ($10,000,000).
(5) San Joaquin River Conservancy, twenty million dollars ($20,000,000).
(6) Sierra Nevada Conservancy, fifty million dollars ($50,000,000).
(7) State Coastal Conservancy, three hundred million dollars ($300,000,000).
(8) Wildlife Conservation Board, one hundred seventy-five million dollars ($175,000,000).
(9) Ocean Protection Council, forty million dollars ($40,000,000).

79731.
 In protecting and restoring California rivers, lakes, streams, and watersheds, the purposes of this chapter are to:
(a) Protect and increase the economic benefits arising from healthy watersheds, fishery resources, and instream flow.
(b) Implement watershed adaptation projects in order to reduce the impacts of climate change on California’s communities and ecosystems.
(c) Restore river parkways throughout the state, including, but not limited to, projects pursuant to the California River Parkways Act of 2004 (Chapter 3.8 (commencing with Section 5750) of Division 5 of the Public Resources Code), in the Urban Streams Restoration Program established pursuant to Section 7048, and urban river greenways.
(d) Protect and restore aquatic, wetland, and migratory bird ecosystems, including fish and wildlife corridors and the acquisition of water rights for instream flow pursuant to Section 1707.
(e) Fulfill the obligations of the State of California in complying with the terms of multiparty settlement agreements related to water resources.
(f) Remove barriers to fish passage.
(g) Collaborate with federal agencies in the protection of fish native to California and wetlands in the central valley of California.
(h) Implement fuel treatment projects to reduce wildfire risks, protect watersheds tributary to water storage facilities, and promote watershed health.
(i) Protect and restore rural and urban watershed health to improve watershed storage capacity, forest health, protection of life and property, stormwater resource management, and greenhouse gas reduction.
(j) Promote access, interpretation, and recreational opportunities with respect to watersheds and waterways that are compatible with habitat values and water quality objectives.
(k) Promote educational opportunities to instruct and inform Californians, including young people, about the value of watersheds.
(l) Protect and restore coastal watersheds, including, but not limited to, bays, marine estuaries, and nearshore ecosystems.
(m) Reduce pollution or contamination of rivers, lakes, streams, or coastal waters, prevent and remediate mercury contamination from legacy mines, and protect or restore natural system functions that contribute to water supply, water quality, or flood management.
(n) Assist in the recovery of endangered, threatened, or migratory species by improving watershed health, instream flows pursuant to Section 1707, fish passage, coastal or inland wetland restoration, or other means, such as natural community conservation plan and habitat conservation plan implementation.
(o) Promote urban forestry pursuant to the Urban Forest Act of 1978 (Chapter 2 (commencing with Section 4799.06) of Division 4 of the Public Resources Code).

79732.
 For restoration and ecosystem protection projects under this chapter, the services of the California Conservation Corps or a local conservation corps certified by the California Conservation Corps shall be used whenever feasible.

79733.

(a)Of the funds authorized in Section 79730, two hundred fifty million dollars ($250,000,000) shall be available to the Natural Resources Agency to support projects of a state conservancy as provided in the conservancy’s strategic plan.

(b)In order to guide the expenditure of funds described in this chapter, the Natural Resources Agency shall develop a statewide natural resource protection plan to identify priorities consistent with the purposes of this section. All expenditures by state conservancies and state agencies of funds described in this section shall advance the priorities set forth in the statewide natural resource protection plan.

(c)In coordination with the Natural Resources Agency, all state conservancies expending funds provided pursuant to subdivision (a) shall provide biannual written reports to the Natural Resources Agency on expenditures made and how those expenditures advance the statewide priorities set forth in the statewide natural resource protection plan developed pursuant to subdivision (b). The Natural Resources Agency shall produce and make available to the public biannual written reports on total expenditures made and progress toward meeting statewide priorities.

(d)

79733.
 (a) Of the funds authorized in Section 79730, one hundred fifty million dollars ($150,000,000) shall be made available for projects to protect and enhance an urban creek, as defined in subdivision (e) of Section 7048, and its tributaries, pursuant to Division 22.8 (commencing with Section 32600) of, and Division 23 (commencing with Section 33000) of, the Public Resources Code and Section 79508.
(b) (1)   Of the funds authorized in Section 79730, one hundred million dollars ($100,000,000) shall be made available to the Secretary of the Natural Resources Agency for a competitive program to fund multibenefit watershed and urban rivers enhancement projects in urban watersheds that increase regional and local water self-sufficiency and that meet at least two of the following objectives:
(A) Promote groundwater recharge and water reuse.
(B) Reduce energy consumption.
(C) Use soils, plants, and natural processes to treat runoff.
(D) Create or restore native habitat.
(E) Increase regional and local resiliency and adaptability to climate change.
(2) The program under this subdivision shall be implemented by state conservancies, the Wildlife Conservation Board, or other entities whose jurisdiction includes urban watersheds, as designated by the secretary. Projects funded under the program shall be a part of 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 subdivisions (a) and (b) 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.
(e) Notwithstanding Section 79711, of the funds authorized in Section 79730, five hundred million dollars ($500,000,000) shall be available to the Natural Resources Agency to support projects that fulfill the obligations of the State of California in complying with the terms of any interstate or multiparty settlement agreement. Priority shall be given to projects that meet one or more of the following criteria:
(1) The project is of statewide significance.
(2) The project restores natural aquatic or riparian functions, or wetlands habitat for birds and aquatic species.
(3) The project protects or promotes the restoration of endangered or threatened species.
(4) The project enhances the reliability of water supplies on a regional or interregional basis.
(5) The project provides significant regional or statewide economic benefits.

79734.
 For the purposes of this chapter, the terms “protection” “interpretation,” “protection,” and “restoration” have the meanings set forth in Section 75005 of the Public Resources Code.

CHAPTER  7. Climate Change Preparedness for Regional Water Security and Drought Preparedness

79740.
 The sum of one billion five hundred million dollars ($1,500,000,000) shall be available, upon appropriation by the Legislature from the fund, for expenditures on, and competitive grants to and loans to, projects that are included in, in and implement an adopted integrated regional water management plan consistent with Part 2.2 (commencing with Section 10530) of Division 6 and respond to climate change and contribute to regional water security as provided in this chapter.

79741.
 In order to improve regional water self-reliance security and adapt to the effects on water supply arising out of climate change, the purposes of this chapter are to:
(a) Help water infrastructure systems adapt to climate change, including, but not limited to, sea level rise.
(b) Incentivize water agencies throughout each watershed to collaborate in managing the region’s water resources and setting regional priorities for water infrastructure.
(c) Improve regional water self-reliance consistent with Section 85021.

79742.
 (a) An urban water supplier that does not prepare, adopt, and submit its urban water management plan in accordance with the Urban Water Management Planning Act (Part 2.6 (commencing with Section 10610) of Division 6) is ineligible to apply for funds made available pursuant to this chapter until the urban water management plan is prepared and submitted in accordance with the requirements of that act.
(b) A local agency that does not prepare, adopt, and submit its groundwater management plan in accordance with Part 2.75 (commencing with Section 10750) of Division 6 is ineligible to apply for funds made available pursuant to this chapter until the plan is prepared and submitted in accordance with the requirements of that part. The groundwater management plan requirement shall not apply to a water replenishment district formed pursuant to Division 18 (commencing with Section 60000) or to a local agency that serves or has authority to manage an adjudicated groundwater basin.
(c) For the purposes of awarding funding under this chapter, a cost share from nonstate sources of not less than 50 percent of the total costs of the project shall be required. The cost sharing cost-sharing requirement may be waived or reduced for projects that directly benefit a disadvantaged community or an economically distressed area.
(d) Not less than 10 percent of the funds authorized by this chapter shall be allocated to projects that directly benefit disadvantaged communities.
(e) For the purposes of awarding a grant funding under this chapter, the applicant shall demonstrate that the integrated regional water management plan the applicant’s project implements contributes to addressing the risks in the region to water supply and water infrastructure arising from climate change.
(f) Projects that achieve multiple benefits shall receive special consideration.

79743.
 Subject to the determination of regional priorities in the regional water management group, eligible projects may include, but are not limited to, projects that promote any of the following:
(a) Water reuse and recycling.
(b) Water-use efficiency and water conservation.
(c) Local and regional surface and underground water storage, including groundwater aquifer cleanup or recharge projects.
(d) Regional water conveyance facilities that improve integration of separate water systems.
(e) Watershed protection, restoration, and management projects, including projects that reduce the risk of wildfire or improve water supply reliability.
(f) Stormwater resource management, including, but not limited to, the following:
(1) Projects to reduce, manage, treat, or capture rainwater or stormwater.
(2) Projects that provide multiple benefits such as water quality, water supply, flood control, or open space.
(3) Decision support tools that evaluate the benefits and costs of multibenefit stormwater projects.
(4) Projects to implement a stormwater resource plan developed in accordance with Part 2.3 (commencing with Section 10560) of Division 6.
(g) Conjunctive use of surface and groundwater storage facilities.
(h) Water desalination projects.
(i) Decision support tools to model regional water management strategies to account for climate change and other changes in regional demand and supply projections.

79744.
 (a) Of the funds authorized in Section 79740, one billion dollars ($1,000,000,000) shall be allocated to the hydrologic regions as identified in the California Water Plan in accordance with this section. For the South Coast hydrologic region, the department shall establish three funding areas that reflect the watersheds of San Diego County (designated as the San Diego subregion), the Santa Ana River watershed and southern Orange County (designated as the Santa Ana subregion), and the Los Angeles and Ventura County watersheds (designated as the Los Angeles subregion), and shall allocate funds to those areas in accordance with this subdivision. The North and South Lahontan hydrologic regions shall be treated as one area for the purpose of allocating funds. For purposes of this subdivision, the Sacramento River hydrologic region does not include the Delta. For purposes of this subdivision, the Mountain Counties Overlay is not eligible for funds from the Sacramento River hydrologic region or the San Joaquin River hydrologic region. Multiple integrated regional water management plans may be recognized in each of the areas allocated funding.
(b) Funds made available by this chapter shall be allocated as follows:
(1) Forty-five million dollars ($45,000,000) for the North Coast hydrologic region.
(2) One hundred thirty-two million dollars ($132,000,000) for the San Francisco Bay hydrologic region.
(3) Fifty-eight million dollars ($58,000,000) for the Central Coast hydrologic region.
(4) One hundred ninety-eight million dollars ($198,000,000) for the Los Angeles subregion.
(5) One hundred twenty-eight million dollars ($128,000,000) for the Santa Ana subregion.
(6) Eighty-seven million dollars ($87,000,000) for the San Diego subregion.
(7) Seventy-six million dollars ($76,000,000) for the Sacramento River hydrologic region.
(8) Sixty-four million dollars ($64,000,000) for the San Joaquin River hydrologic region.
(9) Seventy million dollars ($70,000,000) for the Tulare/Kern hydrologic region.
(10) Fifty-one million dollars ($51,000,000) for the North/South Lahontan hydrologic region.
(11) Forty-seven million dollars ($47,000,000) for the Colorado River Basin hydrologic region.
(12) Forty-four million dollars ($44,000,000) for the Mountain Counties Overlay.

79745.
 (a) Of the funds authorized by Section 79740, up to two hundred fifty million dollars ($250,000,000) may be used for direct expenditures expenditures, and for grants and loans, for water conservation and expenditures and grants for water use water-use efficiency plans, projects, and programs, including either of the following:
(1) Urban water conservation plans, projects, and programs, including regional projects and programs, implemented to achieve urban water use targets developed pursuant to Section 10608.20. Priority for funding shall be given to programs that do any of the following:
(A) Assist water suppliers and regions to implement conservation programs and measures that are not locally cost effective.
(B) Support water supplier and regional efforts to implement programs targeted to enhance water use water-use efficiency for commercial, industrial, and institutional water users.
(C) Assist water suppliers and regions with programs and measures targeted toward realizing the conservation benefits of implementation of the provisions of the state landscape model ordinance.
(2) Agricultural water management plans or agricultural water use efficiency projects and programs developed pursuant to Part 2.8 (commencing with Section 10800) of Division 6.
(b) Section 1011 applies to all conservation measures that an agricultural water supplier or an urban water supplier implements with funding under this chapter. This subdivision does not limit the application of Section 1011 to any other measures or projects implemented by a water supplier. Notwithstanding Section 79740 and subdivision (e) of Section 79742, the projects funded pursuant to this section are not required to be in an adopted integrated regional water management plan or to comply with that program.

79746.
 (a) Of the funds authorized by Section 79740, the sum of three hundred fifty million dollars ($350,000,000) shall be available to the department for grants and expenditures for the planning, design, and construction of local and regional conveyance projects that support regional and interregional connectivity and water management. Projects shall be consistent with an adopted integrated regional water management plan and shall provide one or more of the following benefits:
(1) Improved regional or interregional water supply and water supply reliability.
(2) Mitigation of conditions of groundwater overdraft, saline water intrusion, water quality degradation, or subsidence.
(3) Adaptation to the impacts of hydrologic changes.
(4) Improved water security from drought, natural disasters, or other events that could interrupt imported water supplies.
(5) Provision of safe drinking water for disadvantaged communities and economically distressed areas.
(b) The department shall require a cost share of not less than 50 percent of total project costs from nonstate sources. The department may waive or reduce the cost share requirement for projects that directly benefit a disadvantaged community or an economically distressed area.

79747.
 (a) Of the funds authorized by Section 79740, up to two hundred fifty million dollars ($250,000,000) may be available for grants for multibenefit stormwater management projects.
(b) Eligible projects may include, but shall not be limited to, green infrastructure, rainwater and stormwater capture projects, and stormwater treatment facilities.
(c) Development of plans for stormwater projects shall address the entire watershed and incorporate the perspectives of communities adjacent to the affected waterways, especially disadvantaged communities.

79748.
 In order to receive funding authorized by this chapter to address groundwater quality or supply in an aquifer, the applicant shall demonstrate that a public agency has authority to manage the water resources in that aquifer. A groundwater management plan adopted and approved pursuant to Part 2.75 (commencing with Section 10750) of Division 6 shall be deemed sufficient to satisfy the requirements of this section.

CHAPTER  8. Sacramento-San Joaquin Delta Sustainability

79750.
 (a) The sum of two billion two hundred fifty million dollars ($2,250,000,000) shall be available, upon appropriation by the Legislature from the fund, for grants and direct expenditures to improve the sustainability of the Delta.
(b) This chapter provides state funding for public benefits associated with projects needed to assist in the Delta’s sustainability as a vital resource for fish, wildlife, water quality, water supply, agriculture, and recreation.

79751.
 In order to promote the sustainability and resiliency of the Delta, the purposes of this chapter are to:
(a) Protect, restore, and enhance the Delta ecosystem, consistent with Section 85054.
(b) Maintain and improve existing Delta levees.
(c) Promote the sustainability of the Delta.

79752.
 The funds authorized in Section 79750 shall not be used to pay the costs of a public agency exercising eminent domain to acquire or use property. All property acquired with moneys available pursuant to this chapter shall be acquired from willing sellers.

79754.
 Funding authorized by this chapter for the purpose of subdivision (a) of Section 79751 may include, but is not limited to, the following:
(a) Projects to protect and restore native fish and wildlife dependent on the Delta ecosystem, including the acquisition of water rights, improvement of aquatic or terrestrial habitat, or the removal or reduction of undesirable invasive species.
(b) Projects to reduce greenhouse gas emissions from exposed Delta soils.
(c) Scientific studies and assessments that support the projects authorized under this section.

79755.
 (a) Funding authorized by this chapter for the purpose of subdivision (b) of Section 79751 shall be administered by the department to reduce the risk of levee failure and flood in the Delta and may be expended, consistent with the Delta levee investment priorities recommended pursuant to Section 85306, for any of the following:
(1) Local assistance under the Delta levee maintenance subventions program under Part 9 (commencing with Section 12980) of Division 6, as that part may be amended.
(2) Special flood protection projects under Chapter 2 (commencing with Section 12310) of Part 4.8 of Division 6, as that chapter may be amended.
(3) Levee improvement projects that increase the resiliency of levees within the Delta to withstand earthquake, flooding, or sea level rise.
(4) Emergency response and repair projects.
(b) All projects funded pursuant to this section shall be subject to Section 79050.

CHAPTER  9. Statewide Water System Operational Improvement and 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 Water Resources Control Board, and the department, the commission shall develop and adopt, by regulation, methods for quantification and management of public benefits described in Section 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 Water Resources Control Board.

79765.
 (a) Except as provided in subdivision (c), no funds allocated pursuant to this chapter may 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) No project may 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 director receives commitments for not less than 75 percent of the nonpublic benefit cost share of the project.
(b) If compliance with subdivision (a) is delayed by litigation or failure to promulgate regulations, the date in subdivision (a) shall be extended by the commission for a time period that is equal to the time period of the delay, and funding under this chapter that has been dedicated to the project shall be encumbered until the time at which the litigation is completed or the regulations have been promulgated.

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 agencies 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.

79770.
 (a) In approving the Clean, Safe, 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 Clean, Safe, 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  10. Water Recycling

79780.
 The sum of ____ dollars ($____) shall be available, upon appropriation by the Legislature from the fund, for grants or loans for water recycling and advanced treatment technology projects, including all of the following:
(a) Water recycling projects, including, but not limited to, treatment, storage, conveyance, and distribution facilities for potable and nonpotable recycling projects.
(b) Contaminant and salt removal projects, including, but not limited to, groundwater and seawater desalination and associated treatment, storage, conveyance, and distribution facilities.
(c) Dedicated distribution infrastructure to serve residential, commercial, agricultural, and industrial end-user retrofit projects to allow use of recycled water.
(d) Pilot projects for new potable reuse and other salt and contaminant removal technology.
(e) Groundwater recharge infrastructure related to recycled water.
(f) Technical assistance and grant writing assistance for disadvantaged communities.

79781.
 At least a 50 percent local cost share shall be required for projects funded pursuant to this chapter. That cost share may be suspended or reduced for disadvantaged communities and economically distressed areas.

79782.
 Projects funded pursuant to this chapter 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.

79783.
 For purposes of this chapter, competitive programs shall be implemented consistent with water recycling programs administered pursuant to Sections 79140 and 79141 or consistent with desalination programs administered pursuant to Sections 79545 and 79547.2.

CHAPTER  11. Groundwater Sustainability

79790.
 Prevention and cleanup of groundwater contamination are critical components of successful groundwater management. Groundwater quality becomes especially important as water providers do the following:
(a) Evaluate investments in groundwater recharge with surface water, stormwater, recycled water, and other conjunctive use projects that augment local groundwater supplies to improve regional water self-reliance.
(b) Adapt to changing hydrologic conditions brought on by climate change.
(c) Consider developing groundwater basins to provide much needed local storage options to accommodate hydrologic and regulatory variability in the state’s water delivery system.
(d) Evaluate investments in groundwater recovery projects.

79791.
 (a) The sum of ____ dollars ($____) one billion dollars ($1,000,000,000) shall be available, upon appropriation by the Legislature from the fund, for expenditures, grants, and loans for projects to prevent or cleanup clean up the contamination of groundwater that serves or has served as a source of drinking water. Funds appropriated pursuant to this section shall be available to the implementing agency for projects necessary to protect public health by preventing or reducing the contamination of groundwater that serves or has served as a major source of drinking water for a community.
(b) Projects shall be prioritized based upon the following criteria:
(1) The threat posed by groundwater contamination to the affected community’s overall drinking water supplies, including an urgent need for treatment of alternative supplies or increased water imports if groundwater is not available due to contamination.
(2) The potential for groundwater contamination to spread and impair drinking water supply and water storage for nearby population areas.
(3) The potential of the project, if fully implemented, to enhance local water supply reliability.
(4) The potential of the project to maximize opportunities to recharge vulnerable, high-use groundwater basins and optimize groundwater supplies.
(5) The project addresses contamination at a site for which the courts or the appropriate regulatory authority has not yet identified responsible parties, or where the identified responsible parties are unwilling or unable to pay for the total cost of cleanup.
(c) The Legislature, by statute, shall establish both of the following:
(1) A requirement that the grantee repay grant funds in the event of cost recovery from the parties responsible for the groundwater contamination.
(2) A requirement that the grantee make reasonable efforts to attempt to recover the costs of cleanup from the parties responsible for the contamination, except that a grantee shall not be required to seek cost recovery related to the costs of response actions apportioned to responsible parties who are insolvent or cannot be identified or located or when a requirement to seek cost recovery would impose a financial hardship on the grantee.

79792.
 Of the funds authorized by Section 79791, up to ____ million dollars ($____) shall be available for grants for treatment and remediation activities that prevent or reduce the contamination of groundwater that serves as a source of drinking water.

79793.
 The contaminants that may be addressed with funding pursuant to this chapter may include, but shall not be limited to, nitrates, perchlorate, MTBE (methyl tertiary butyl ether), arsenic, selenium, hexavalent chromium, mercury, PCE (perchloroethylene), TCE (trichloroethylene), DCE (dichloroethene), DCA (dichloroethane), 1,2,3-TCP (trichloropropane), carbon tetrachloride, 1,4-dioxane, 1,4-dioxacyclohexane, nitrosodimethylamine, bromide, iron, manganese, and uranium.

79794.
 (a) A project that receives funding pursuant to this chapter shall be selected by a competitive grant or loan process with added consideration for those projects that leverage private, federal, or local funding.
(b) For the purposes of awarding funding under this chapter, a local cost share of not less than 50 percent of the total costs of the project shall be required. The cost-sharing requirement may be waived or reduced for projects that directly benefit a disadvantaged community or an economically distressed area.
(c) An agency administering grants or loans for the purposes of this chapter shall assess the capacity of a community to pay for the operation and maintenance of the facility to be funded.
(d) At least 10 percent of the funds available pursuant to this chapter shall be allocated for projects serving severely disadvantaged communities.
(e) Funding authorized pursuant to this chapter shall include funding for technical assistance to disadvantaged communities. The agency administering this funding shall operate a multidisciplinary technical assistance program for small and disadvantaged communities.

CHAPTER  12. Fiscal Provisions

79800.
 (a) Bonds in the total amount of ____ dollars ($____), or so much thereof as is necessary, not including the amount of any refunding bonds issued in accordance with Section 79812 may be issued and sold to provide a fund to be used for carrying out the purposes expressed in this division and to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of the Government Code. The bonds, when sold, shall be and constitute a valid and binding obligation of the State of California, and the full faith and credit of the State of California is hereby pledged for the punctual payment of both principal of, and interest on, the bonds as the principal and interest become due and payable.
(b) The Treasurer shall sell the bonds authorized by the committee pursuant to this section. The bonds shall be sold upon the terms and conditions specified in a resolution to be adopted by the committee pursuant to Section 16731 of the Government Code.

79801.
 The bonds authorized by this division shall be prepared, executed, issued, sold, paid, and redeemed as provided in the State General Obligation Bond Law (Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2 of the Government Code), and all of the provisions of that law apply to the bonds and to this division and are hereby incorporated in this division as though set forth in full in this division, except subdivisions (a) and (b) of Section 16727 of the Government Code.

79802.
 (a) Solely for the purpose of authorizing the issuance and sale pursuant to the State General Obligation Bond Law (Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2 of the Government Code) of the bonds authorized by this division, the Clean, Safe, and Reliable Drinking Water Supply Finance Committee is hereby created. For purposes of this division, the Clean, Safe, and Reliable Drinking Water Supply Finance Committee is the “committee” as that term is used in the State General Obligation Bond Law.
(b) The committee consists of the Director of Finance, the Treasurer, the Controller, the Director of Water Resources, and the Secretary of the Natural Resources Agency. Notwithstanding any other provision of law, any member may designate a representative to act as that member in his or her place for all purposes, as though the member were personally present.
(c) The Treasurer shall serve as chairperson of the committee.
(d) A majority of the committee may act for the committee.

79803.
 The committee shall determine whether or not it is necessary or desirable to issue bonds authorized pursuant to this division in order to carry out the actions specified in this division and, if so, the amount of bonds to be issued and sold. Successive issues of bonds may be authorized and sold to carry out those actions progressively, and it is not necessary that all of the bonds authorized to be issued be sold at any one time.

79804.
 For purposes of the State General Obligation Bond Law, “board,” as defined in Section 16722 of the Government Code, means the Department of Water Resources.

79805.
 There shall be collected each year and in the same manner and at the same time as other state revenue is collected, in addition to the ordinary revenues of the state, a sum in an amount required to pay the principal of, and interest on, the bonds each year. It is the duty of all officers charged by law with any duty in regard to the collection of the revenue to do and perform each and every act that is necessary to collect that additional sum.

79806.
 Notwithstanding Section 13340 of the Government Code, there is hereby appropriated from the General Fund in the State Treasury, for the purposes of this division, an amount that will equal the total of the following:
(a) The sum annually necessary to pay the principal of, and interest on, bonds issued and sold pursuant to this division, as the principal and interest become due and payable.
(b) The sum that is necessary to carry out the provisions of Section 79809, appropriated without regard to fiscal years.

79807.
 The board may request the Pooled Money Investment Board to make a loan from the Pooled Money Investment Account in accordance with Section 16312 of the Government Code for the purpose of carrying out this division less any amount withdrawn pursuant to Section 79809. The amount of the request shall not exceed the amount of the unsold bonds that the committee has, by resolution, authorized to be sold for the purpose of carrying out this division. The board shall execute those documents required by the Pooled Money Investment Board to obtain and repay the loan. Any amounts loaned shall be deposited in the fund to be allocated in accordance with this division.

79808.
 Notwithstanding any other provision of this division, or of the State General Obligation Bond Law, if the Treasurer sells bonds that include a bond counsel opinion to the effect that the interest on the bonds is excluded from gross income for federal tax purposes under designated conditions or is otherwise entitled to any federal tax advantage, the Treasurer may maintain separate accounts for the bond proceeds invested and for the investment earnings on those proceeds, and may use or direct the use of those proceeds or earnings to pay any rebate, penalty, or other payment required under federal law or take any other action with respect to the investment and use of those bond proceeds, as may be required or desirable under federal law in order to maintain the tax-exempt status of those bonds and to obtain any other advantage under federal law on behalf of the funds of this state.

79809.
 For the purposes of carrying out this division, the Director of Finance may authorize the withdrawal from the General Fund of an amount or amounts not to exceed the amount of the unsold bonds that have been authorized by the committee to be sold for the purpose of carrying out this division less any amount borrowed pursuant to Section 79807. Any amounts withdrawn shall be deposited in the fund. Any moneys made available under this section shall be returned to the General Fund, with interest at the rate earned by the moneys in the Pooled Money Investment Account, from proceeds received from the sale of bonds for the purpose of carrying out this division.

79810.
 All moneys deposited in the fund that are derived from premium and accrued interest on bonds sold pursuant to this division shall be reserved in the fund and shall be available for transfer to the General Fund as a credit to expenditures for bond interest, except that amounts derived from premium may be reserved and used to pay the cost of bond issuance prior to any transfer to the General Fund.

79811.
 Pursuant to Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2 of the Government Code, the cost of bond issuance shall be paid out of the bond proceeds, including premium, if any. To the extent the cost of bond issuance is not paid from premiums received from the sale of bonds, these costs shall be shared proportionately by each program funded through this division by the applicable bond sale.

79812.
 The bonds issued and sold pursuant to this division may be refunded in accordance with Article 6 (commencing with Section 16780) of Chapter 4 of Part 3 of Division 4 of Title 2 of the Government Code, which is a part of the State General Obligation Bond Law. Approval by the voters of the state for the issuance of the bonds under this division shall include approval of the issuance of any bonds issued to refund any bonds originally issued under this division or any previously issued refunding bonds.

79813.
 The proceeds from the sale of bonds authorized by this division are not “proceeds of taxes” as that term is used in Article XIII B of the California Constitution, and the disbursement of these proceeds is not subject to the limitations imposed by that article.

SEC. 3.

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

SEC. 4.

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

SEC. 5.

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

SEC. 6.

 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to fund a clean, safe, and reliable drinking water supply program at the earliest possible date, it is necessary that this act take effect immediately.