Today's Law As Amended


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SB-59 Reliable Water Supply Bond Act of 2008.(2007-2008)



As Amends the Law Today


SECTION 1.

 Division 32 (commencing with Section 82000) is added to the Water Code, to read:

DIVISION 32. RELIABLE WATER SUPPLY BOND ACT OF 2008

CHAPTER  1. Short Title
82000.
 This division shall be known and may be cited as the Reliable Water Supply Bond and Financing Act of 2008.
CHAPTER  2. Findings
82001.
 The Legislature finds and declares all of the following:
(a) California must make substantial investments to provide reliable water for a growing population and meet future water management needs.
(b) It is in the interests of all Californians to provide a safe, clean, affordable, and sufficient water supply to meet the needs of residents, farms, businesses, and the environment.
(c) Recent studies indicate that California will experience decreasing snow pack, changing run-off patterns, rising sea levels, and changes in water use. The state has determined that no single approach to water management will adequately address these changes in a way that meets the state’s current and future needs. It will be necessary to invest in additional water infrastructure such as expanded water storage and improved water conveyance, as well as improving water use efficiency, in order to protect California’s environment and economy.
(d) The Sacramento-San Joaquin Delta Estuary, including Suisun Bay and Suisun Marsh, is a unique and irreplaceable combination of environmental and economic resources.
(e) Current management and use of the delta is not sustainable, and results in a high level of conflict among various interests.
(f) Future management of the delta must improve delta ecosystem health, improve the means of delta water conveyance in order to protect drinking water quality, improve water supply reliability, restore ecosystem health, and preserve agricultural and recreational values in the delta.
(g) Sustainable economic development requires that water resources planning be integrated with the management of other natural resources.
CHAPTER  3. Definitions
82002.
 Unless the context otherwise requires, the definitions set forth in this section govern the construction of this division, as follows:
(a) “CALFED” means the consortium of state and federal agencies with management and regulatory responsibilities in the San Francisco Bay/Sacramento-San Joaquin Delta Estuary.
(b) “CALFED Bay-Delta Program” means the undertaking by CALFED to develop and implement, by means of the final programmatic environmental impact statement/environmental impact report, the preferred programs, actions, projects, and related activities that will provide solutions to identified problem areas related to the San Francisco Bay/Sacramento-San Joaquin Delta Estuary ecosystem, including, but not limited to, the bay-delta and its tributary watersheds.
(c) “Committee” means the Reliable Water Supply Finance Committee created by Section 82082.
(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) “Fund” means the Reliable Water Supply Bond Fund of 2008 created by Section 82020.
(h) “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.
(i) “Nonprofit organization” means any nonprofit public benefit corporation formed pursuant to the Nonprofit Corporation Law (Division 2 (commencing with Section 5000) of Title 1 of the Corporations Code) and qualified under Section 501(c)(3) of Title 26 of the United States Internal Revenue Code.
(j) “Public agency” means a state agency or department, district, joint powers authority, city, county, city and county, or other political subdivision of the state.
(k) “Secretary” means the Secretary of the Resources Agency.
(l) “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
82010.
 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.
82011.
 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.
82012.
 (a) Prior to disbursing grants pursuant to this division, the department 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 department shall conduct two public meetings to consider public comments prior to finalizing the guidelines. The department 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 department shall transmit copies of the guidelines to the fiscal committees and the appropriate policy committees of the Legislature.
82013.
 It is the intent of the people that the investment of public funds pursuant to this division should result in public benefits.
CHAPTER  5. Reliable Water Supply Bond Fund Of 2008
82020.
 The proceeds of bonds issued and sold pursuant to this division shall be deposited in the Reliable Water Supply Bond Fund of 2008, which is hereby created.
CHAPTER  6. Water Storage Development Projects
82030.
 (a) For the purposes of this chapter, “account” means the Water Storage Development Account created by subdivision (b).
(b) The Water Storage Development Account is hereby created in the fund.
(c) The sum of two billion five hundred million dollars ($2, 500,000,000) is hereby transferred from the fund to the account. Notwithstanding Section 13340 of the Government Code, the funds in the account are hereby continuously appropriated to the department, without regard to fiscal years, as follows:
(1) Two billion dollars ($2,000,000,000) for the design, acquisition, and construction of surface water storage projects identified pursuant to subdivision (a) of Section 82031 to finance the state’s cost share in accordance with subdivision (b) of Section 82033.
(2) Five hundred million dollars ($500,000,000) for grants and expenditures for the planning, design, and construction of locally managed conjunctive use and groundwater storage projects described in subdivision (b) of Section 82031.
(d) This section shall not be amended or repealed unless approved by the Legislature with two-thirds of the members of each house voting in favor thereof.
82031.
 To assist in the development of facilities to increase water storage capacity in the state, funds provided pursuant to this chapter shall be for the design, acquisition, and construction of the following water storage projects:
(a) Surface water storage projects being investigated by the department under the CALFED Bay-Delta Program, as follows:
(1) Sites Reservoir located in the Counties of Colusa and Glenn, as identified in the North-of-the-Delta Offstream Storage Investigation Initial Alternatives Information Report, dated May 2006.
(2) Temperance Flat Reservoir located in the Counties of Fresno and Madera, as identified in the Upper San Joaquin River Basin Storage Investigation Initial Alternatives Information Report, dated June 2005.
(3) If the surface water storage projects identified in paragraphs (1) and (2) are deemed infeasible by the department, alternate surface water storage projects, as determined by the department, that are included in the CALFED Bay-Delta Program Programmatic Record Of Decision, dated August 28, 2000.
(b) Locally managed conjunctive use and groundwater storage projects that are consistent with an adopted integrated regional water management plan and provide any of the following benefits:
(1) Interregional water supply benefits, including, but not limited to, evaluation of the groundwater resources of the Sacramento Valley.
(2) Mitigation of conditions of groundwater overdraft, saline water intrusion, groundwater quality degradation, or subsidence.
(3) Replacement of water supplies that were previously committed or that will be committed for environmental benefits.
(4) Contribution to any of the objectives described in paragraphs (1) to (4), inclusive, of subdivision (b) of Section 82033.
82032.
 Any new surface water surface storage capacity funded pursuant to this chapter shall be operated in conjunction with existing storage and conveyance facilities to develop greater and more diverse benefits and to offset the impacts of changing hydrology and decreasing snow pack on California’s water and flood management systems.
82033.
 (a) Expenditure of any portion of the funds provided pursuant to this chapter for any surface water storage project is contingent upon all of the following actions:
(1) A finding by the director and the secretary that the project is feasible, consistent with all applicable laws and regulations, and will advance the objectives of the CALFED Bay-Delta Program.
(2) Development of a comprehensive financing plan for the project that includes the state’s cost share for the project benefits described in subdivision (b), any cost sharing by the federal government for federal interests identified in the project, and any other state or local public agency or private cost share for water supply, power generation, or other benefits generated by the project. The comprehensive financing plan shall allocate all project costs among all project beneficiaries in relation to the benefits received. The state’s cost share for the project benefits described in subdivision (b) shall not exceed 50 percent of the total project costs for projects funded under this chapter.
(3) Agreements with potential water users to contract and pay for not less than 75 percent of the agricultural and urban water supply benefits of the project.
(b) Funds described in paragraph (1) of subdivision (c) of Section 82030 shall only be available to finance any of the following:
(1) Major ecosystem restoration, including improvements to riverine ecosystems and fisheries habitat through flow, temperature, and diversion management.
(2) Water quality improvement of a major river or water body that serves as a water supply source for more than one region of the state and provides significant public trust resources.
(3) Flood control benefits, including, but not limited to, increases in flood reservation space in existing reservoirs by exchange for capacity in a new offstream reservoir.
(4) Emergency response, including securing emergency water supplies and flows for dilution and salinity repulsion following natural disasters or acts of terrorism.
(5) Response to the effects of changing hydrology and decreasing snow pack on California’s flood management systems.
(6) Recreational purposes, including, but not limited to, those recreational pursuits generally associated with the out-of-doors, such as camping, picnicking, fishing, hunting, wildlife viewing, water contact sports, boating, and sightseeing, and the associated facilities of campgrounds, picnic areas, water and sanitary facilities, parking areas, view points, boat launching ramps, and any others necessary to make project land and water areas available for use by the public.
(c) The expenditure of funds described in paragraph (1) of subdivision (c) of Section 82030 shall be prioritized based upon the expected return for public investment as measured by the magnitude and diversity of benefits pursuant to subdivision (b) that would be provided by the proposed expenditure. For the purposes of carrying out this subdivision, the department shall consult with the Department of Fish and Game, the State Water Resources Control Board, the California regional water quality control boards, the State Department of Public Health, the Department of Parks and Recreation, the California Bay-Delta Authority or its successor, and other relevant state agencies.
82034.
 Any surface water storage facility constructed with funds made available pursuant to this chapter shall be made a part of the State Water Resources Development System and shall be acquired, constructed, operated, and maintained pursuant to Part 3 (commencing with Section 11100) of Division 6.
82035.
 (a) To provide funding to pay the share of costs of surface water storage projects allocated to providing agricultural and urban water supply benefits, the department may issue revenue bonds pursuant to Chapter 8 (commencing with Section 11700) of Part 3 of Division 6.
(b) The total amount of revenue bonds issued pursuant to subdivision (a) shall not exceed two billion dollars ($2,000,000,000).
CHAPTER  7. Delta Sustainability
82050.
 (a) The Sacramento-San Joaquin Delta Estuary, including Suisun Bay and Suisun Marsh, is a unique and irreplaceable combination of environmental and economic resources. Current management and use of the delta is not sustainable, and results in a high level of conflict among various interests. Future delta sustainability is threatened by changing hydrology, decreasing snow pack, flood risk, seismic events, and 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 a water supply reliability, restore ecosystem health, and preserve 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, recreation, and enjoyment of the people of the State of California.
(c) The sum of one billion dollars ($1,000,000,000) shall be available for appropriation by the Legislature from the fund to the department for grants and direct expenditure, as follows:
(1) Five hundred million dollars ($500,000,000) shall be available for the development and implementation of a bay delta conservation plan. The plan shall identify projects for the enhancement and sustainability of selected fish species. 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 plan.
(2) Three hundred million dollars ($300,000,000) shall be available to implement the Strategic Plan required by Governor’s Executive Order S-17-06, and projects to implement the options identified by the department and the Department of Fish and Game pursuant to Sections 139.2 and 139.4.
(3) Two hundred million dollars ($200,000,000) shall be available to implement the water quality component of the CALFED Bay-Delta Program.
82051.
 Funds provided by this chapter may not be expended for any of the following:
(a) The design or construction of delta water transfer facilities.
(b) Any action identified in the plan as the responsibility of any party or project, including the State Water Project and the federal Central Valley Project, to provide for the mitigation of impacts or to provide for the conservation of a species identified in the plan described in paragraph (1) of subdivision (c) of Section 82050.
82052.
 For the purposes of preparing the plan described in paragraph (1) of subdivision (c) of Section 82050, the fishery enhancements and sustainability projects shall be identified in consultation with stakeholders and relevant state agencies. The projects financed under this chapter shall include comprehensive project assessments, and represent significant consensus in the scientific community, including the CALFED Independent Science Board, or its successor, and shall provide targeted benefits as a result of these expenditures.
CHAPTER  8. Water Use Efficiency Program
82060.
 The sum of two hundred million dollars ($200,000,000) shall be available for appropriation by the Legislature from the fund to the department for competitive grants for agricultural and urban water use efficiency projects in accordance with this chapter.
82061.
 (a) The department shall award grants to eligible projects 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 submitted.
(c) For the purposes of awarding a grant under this chapter, the department may require cost sharing or donated services from nonstate sources.
(d) Eligible projects include 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.
(e) Eligible applicants are public agencies, investor-owned utilities, and mutual water companies. To be eligible for funding under this chapter, projects proposed by investor-owned 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.
CHAPTER  9. Resource Stewardship and Environmental Restoration Program
82070.
 The sum of two hundred fifty million dollars ($250,000,000) shall be available for appropriation by the Legislature from the fund to the secretary for expenditures and grants for resource stewardship and ecosystem restoration, including any of the following:
(a) Restoration of the San Joaquin River system.
(b) Restoration of the Sacramento River corridor.
(c) Restoration of the Salton Sea.
(d) Other ecosystem restoration projects and programs.
CHAPTER  10. Fiscal Provisions
82080.
 (a) Bonds in the total amount of three billion nine hundred fifty million dollars ($3,950,000,000), not including the amount of any refunding bonds issued in accordance with Section 82092, 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 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.
82081.
 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 that Section 16727 of the Government Code shall not apply to the extent that it is inconsistent with any other provision of this division.
82082.
 (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 Reliable Water Supply Finance Committee is hereby created. For purposes of this division, the Reliable 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 for 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.
82083.
 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.
82084.
 “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.
82085.
 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.
82086.
 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 82089, appropriated without regard to fiscal years.
82087.
 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 by the department in accordance with this division.
82088.
 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.
82089.
 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.
82090.
 All money deposited in the fund that is 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.
82091.
 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.
82092.
 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.
82093.
 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.
 The Secretary of State shall submit Section 1 of this act to the voters at the November 4, 2008, statewide general election in accordance with the provisions of the Government Code and the Elections Code governing the submission of a statewide measure to the voters.
SEC. 3.
 (a) Notwithstanding any other provision of law, with respect to the Reliable Water Supply Bond Act of 2008, as set forth in Section 1 of this act, all ballots of the November 4, 2008, statewide general election shall have printed thereon and in a square thereof, exclusively, the words: “Reliable Water Supply Bond Act of 2008” and in the same square under those words, the following in 8-point type:
“This act will provide financing necessary for projects to improve statewide water supply reliability, respond to changing hydrology and decreasing snow pack, and provide adequate water supplies to meet the needs of California’s residents, farmers, businesses, and environment by authorizing a $3.95 billion dollar bond act.”
(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 Reliable Water Supply Bond Act of 2008, as set forth in that section.