SEC. 8.
(a) In addition to revenues set apart pursuant to Section 8 of Article XVI, there shall be set apart, for allocation pursuant to subdivision (b), not less than two 2 percent of the General Fund revenues that may be appropriated for the State pursuant to Article XIII B for a fiscal year.(b) Amounts set apart pursuant to subdivision (a) are hereby continuously appropriated to the Controller each fiscal year, without regard to fiscal years, for allocation as follows:
(1) Five percent shall be allocated for the payment of principal and interest on bonds authorized pursuant to the Water Quality, Supply, and Infrastructure Improvement Act of 2014 (Division 26.7 (commencing with Section 79700) of the Water Code).
(2) The amount remaining after the allocation in paragraph (1)shall be allocated as follows:
(A) Sixty percent shall be allocated to the Department of Water Resources, or its successor agency, for water supply, delivery, and quality projects, including, but not limited to, recycled water projects, water conveyance projects, groundwater recharge projects, subsidence abatement projects, and water infrastructure and storage projects. When expending these moneys, the Department of Water Resources is encouraged to grant priority to projects that address deferred maintenance.
(B) Forty percent shall be allocated to the State Water Resources Control Board, or its successor agency, for water quality projects, including, but not limited to, drinking water improvement projects, groundwater cleanup projects, and emergency drinking water projects.
The State Water Resources Control Board shall not use moneys allocated pursuant to this subparagraph for water quality enforcement actions.
(c) The following moneys shall not count toward the minimum percentage requirement in subdivision (a):
(1) Amounts available to the Department of Water Resources or the State Water Resources Control Board, or their successor agencies, by statute, through a continuous appropriation.
(2) Amounts derived from fines, fees, or penalties collected, or donations received, by the Department of Water Resources or the State Water Resources Control Board, or their successor agencies, and dedicated by law for use by either agency.
(3) Amounts derived from the issuance of general obligation bonds or revenue bonds and allocated to the Department of Water Resources or the State Water Resources Control Board, or their successor agencies.
(4) Amounts used for the payment of principal and interest on general obligation bonds or revenue bonds, the proceeds of
which are allocated to the Department of Water Resources or the State Water Resources Control Board, or their successor agencies, except as provided in paragraph (1) of subdivision (b).
(5) Amounts available to the Department of Water Resources or the State Water Resources Control Board, or their successor agencies, from a previous fiscal year.
(6) Amounts made available for functions performed before July 1, 2021, by a department, agency, board, or commission of the State other than the Department of Water Resources or the State Water Resources Control Board, or their successor agencies.
(d) (1) The requirements of this section shall apply to each fiscal year commencing with the 2021–22 fiscal year.
(2) The Director of Finance, by May 14, 2022, and by May 14 of each fiscal year thereafter, shall submit to the Legislature an estimate of the amount required to be allocated pursuant to subdivision (a) for the subsequent fiscal year.