California Assembly Bill AB300 Amended / Bill

 BILL NUMBER: AB 300AMENDED BILL TEXT AMENDED IN SENATE JUNE 30, 2009 AMENDED IN SENATE JUNE 23, 2009 AMENDED IN SENATE JUNE 10, 2009 AMENDED IN ASSEMBLY APRIL 20, 2009 AMENDED IN ASSEMBLY APRIL 2, 2009 INTRODUCED BY Assembly Member Caballero FEBRUARY 17, 2009 An act to amend, repeal, and add Section 66473.7 of the Government Code, and to amend, repeal, and add Section 10910 of the Water Code, relating to subdivision map approvals. LEGISLATIVE COUNSEL'S DIGEST AB 300, as amended, Caballero. Subdivisions: water supply. (1) The Subdivision Map Act prohibits approval of a tentative map, or a parcel map for which a tentative map was not required, or a development agreement for a subdivision of property of more than 500 dwelling units, except as specified, including the design of the subdivision or the type of improvement, unless the legislative body of a city or county or the designated advisory agency provides written verification from the applicable public water system that a sufficient water supply is available or, in addition, a specified finding is made by the local agency that sufficient water supplies are, or will be, available prior to completion of the project. This bill would require, until January 1, 2017, the public water system, or the local agency if there is no public water system, to review, verify for accuracy, and approve, as specified, the subdivider's water savings projections attributable to voluntary demand management measures, as defined. The public water  agency   system  would be authorized to collect fees necessary to provide the additional analysis of the voluntary demand management measures. This bill would provide that a water supply assessment completed, as specified, satisfies the existing requirement of verifying sufficient water supply,  except as specified with regard to new information or water savings projections   unless the public water system receives specified new information  . The public water system would be required to determine the projected water savings  for   attributable to  the voluntary demand management measures that will be incorporated into the subdivision. The projected water savings would be  authorized   required  to be calculated using specified data compiled or maintained by the public water system or the water savings projections adopted by the California Urban Water Conservation Council. If a project applicant proposes to use a new voluntary water  reduction  demand management measure  that is not based on water savings projections adopted by   for which neither  the California Urban Water Conservation Council  or   nor  the public water system  , the public water system's determination of   has adopted   an estimate or method to calculate the projected water savings of the proposed voluntary demand management measure,  the projected water savings would be required to be made based on documented methodologies or calculations submitted in the record.  The   Five years after the project has been fully developed, the  public water system would be required to  include within its next urban water management plan a  report on the monitoring and compliance of voluntary water demand management measures and to determine  , if practicable based on readily available information,  whether they have resulted in the water savings necessary to achieve the agreed upon water demand offsets.  The bill would require copies of the first report prepared 5 years after the project has been fully developed to be provided to the project applicant, the city or county that approved the subdivision map, the California Urban Water Conservation Council, and the Department of Water Resources.  The bill would also require the public water system to document the measured annual water use of the subdivision in comparison to the projected demand associated with the subdivision, and to calculate the water savings attributable to the  demand management   voluntary mitigation  measures financed by the Voluntary Water Demand Mitigation Fund for the subdivision.  If the public water system bases its written verification of a sufficient water supply for the subdivision, in whole or in part, on the use of voluntary demand management measures within the subdivision, the written verification would be required to be conditioned on the maintenance and operation of the voluntary demand management measures, or measures that are at least as water efficient, as agreed to by the applicant and the public water system, and the recordation as a covenant running with the land for the lots within the subdivision. The bill would provide that by acceptance of a deed to a lot, each purchaser would acknowledge   the obligation to comply with the voluntary demand measures for the lot as described in the covenant. These covenants would be authorized to be enforced pursuant to the existing authority of a public water system.  The bill would further require a builder, prior to the close of escrow, to give a purchaser  a manual of documents   information  that would be required to be included in a maintenance manual that informs the purchaser of the existence of the home's unique water saving devices, including specified information. The bill would also encourage the public water system to commit to carrying out the water conservation measures funded by the Voluntary Water Demand Mitigation Fund within 24 months of the sale of the last unit of the proposed subdivision.  The bill would provide that the sole remedy for the failure of a public water system to implement the water conservation measures would be for an interested party to seek a writ of mandamus to compel the public water system to comply.  The bill would require the public water system to choose water conservation measures that are the least expensive and  most cost-effective means to yield water  savings  . The bill would authorize expenditures from the fund to be made within the subdivision or elsewhere within the service area of the public water supplier, at its discretion.  Not less than 40% of the proceeds from the voluntary water demand mitigation fund would be required to be directed to water conservation programs in any disadvantaged community, unless the public water system makes a specified finding.  By adding to the duties of the public water system, this bill would impose a state-mandated local program. (2) Existing law requires a city or county that determines a project, as defined, is subject to the California Environmental Quality Act to identify any public water system that may supply water for the project and to request those public water systems to prepare a specified water supply assessment. If no public water system is identified, the city or county is required to prepare the water supply assessment. This bill would require, until January 1, 2017, if the project applicant elects to include voluntary demand management measures, any city, county, or public water system preparing a water supply assessment to reduce the projected water demand for the project to an amount below  planned water demand reduction actions contained in an adopted urban water management plan and  the current statutory, regulatory, and local ordinance requirements  ,  based on the project applicant's voluntary water demand management measures, as defined. The bill would authorize the applicant to enter into a mutual agreement with the public water system to mitigate water demand associated with a proposed subdivision by depositing funds in a Voluntary Water Demand Mitigation Fund, as defined. The fees paid into the Voluntary Water Demand Mitigation Fund would be prohibited from exceeding the amount necessary to offset the actual or percentage of actual water demand impacts agreed upon in the agreement between the applicant and the public water system. The bill would authorize, at the discretion of the public water system, the amount required for the Voluntary Water Demand Mitigation Fund to be reduced by a portion of the normally required system capacity charges that finance future water supplies. The bill would also authorize any reduction in the capacity charge to be calculated using the amount of water projected to be conserved using the Voluntary Water Demand Mitigation Fund at the cost determined by the public water system for developing new water supplies  through   or for  water conservation. The bill would not require the total reduction in system capacity charges to be equal to the amount paid into the Voluntary Water Demand Mitigation Fund.  The bill would prohibit a project from being disapproved due to the applicant's refusal to use voluntary mitigation measures.  The bill would require the public water system to determine the projected water savings  for   attributable to  the voluntary demand management measures that will be incorporated into the  subdivision   project  . The public water system would be required to expend all funds from the Voluntary Water Demand Mitigation Fund on water conservation measures that will reduce the projected demand associated with the subdivision. The public water system would be prohibited from using any funds from the Voluntary Water Conservation Mitigation Fund to supplant funding for water conservation programs required by  planned water reduction actions contained in an adopted urban water management plan,  existing law  ,  or paid for by existing customers through water rates and surcharges. By adding to the duties of the public water system, this bill would impose a state-mandated local program. (3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares: (a) Current law requires an assessment of how new land use proposals will affect water supply without recognizing the potential benefits of evolving voluntary water conservation measures. (b) Water conservation measures beyond those already required by state law should be encouraged by accounting for their use when quantifying project water demand. (c) The amount of  water demand reductions   voluntary demand   management measures  should be confirmed by the water agencies responsible for providing water service to new development in a cooperative approach with project proponents and local governments  that ensures   in order to ensure that  projected water savings are achieved. (d) Water agencies and local government should provide flexibility and encourage the development and implementation of innovative new water conservation technology, water use efficiency, and water management techniques to meet customer needs throughout the differing hydrologic regions of the state. (e) Encouraging widespread use of voluntary water conservation measures will assist water agencies and the state in documenting the potential water savings from new water use efficiency projects and programs in a manner that will promote successful water conservation strategies and discourage ineffective ones. (f) There have been numerous water use efficiency technological and management developments related to landscape irrigation in recent years, and this act will promote the adoption of approaches that  go beyond   exceed those required by  the state's Model Landscape Ordinance. (g) More efficient use of water statewide also will reduce the energy necessary to pump, transport, and treat water with potentially significant corresponding reductions in greenhouse gas emissions. SEC. 2. Section 66473.7 of the Government Code is amended to read: 66473.7. (a) For  the  purposes of this section, the following definitions apply: (1) "Subdivision" means a proposed residential development of more than 500 dwelling units, except that for a public water system that has fewer than 5,000 service connections, "subdivision" means any proposed residential development that would account for an increase of 10 percent or more in the number of the public water system's existing service connections. (2) "Sufficient water supply" means the total water supplies available during normal, single dry, and multiple dry years within a 20-year projection that will meet the projected demand associated with the proposed subdivision, in addition to existing and planned future uses, including, but not limited to, agricultural and industrial uses. In determining "sufficient water supply," all of the following factors shall be considered: (A) The availability of water supplies over a historical record of at least 20 years. (B) The applicability of an urban water shortage contingency analysis prepared pursuant to Section 10632 of the Water Code that includes actions to be undertaken by the public water system in response to water supply shortages. (C) The reduction in water supply allocated to a specific water use sector pursuant to a resolution or ordinance adopted, or a contract entered into, by the public water system, as long as that resolution, ordinance, or contract does not conflict with Section 354 of the Water Code. (D) The amount of water that the water supplier can reasonably rely on receiving from other water supply projects, such as conjunctive use, reclaimed water, water conservation, and water transfer, including programs identified under federal, state, and local water initiatives such as CALFED and Colorado River tentative agreements, to the extent that these water supplies meet the criteria of subdivision (d). (3) "Public water system" means the water supplier that is, or may become as a result of servicing the subdivision included in a tentative map pursuant to subdivision (b), a public water system, as defined in Section 10912 of the Water Code, that may supply water for a subdivision. (4) "Projected demand associated with the proposed subdivision" means the anticipated water demand for the project, given  planned water demand reduction actions contained in an adopted urban water management plan and  current statutory, regulatory, and local ordinance requirements, reduced by the amount of voluntary demand management measures. (5) "Voluntary demand management measures" means water use efficiency measures  voluntarily chosen by the applicant  that are permanently fixed to residential, commercial, industrial, or other real property that will reduce the subdivision's water demand below the applicable statutory, regulatory, and local ordinance requirements for water conservation, and may include, but are not limited to, all of the following: (A) Smart irrigation controllers. (B) Waterless urinals. (C) Ultralow flow and dual flow toilets. (D) Recycled water facilities. (E) Rainwater capture and reuse facilities. (F) Any other measure that will prevent the waste of water or promote the reasonable and efficient use and reuse of available water supplies by the subdivision or the public. For the purposes of this chapter, water recycling shall be eligible as a water conservation measure. (G) Voluntary mitigation measures may include, at the applicant's sole discretion, water conservation offsets which minimize a percentage of a project's impact on the public water system, as determined by the applicant and agreed upon by the public water system. The applicant may enter into a mutual agreement with the public water system to mitigate water demand associated with a proposed subdivision by depositing funds into a Voluntary Water Demand Mitigation Fund. The fees paid into the Voluntary Water Demand Mitigation Fund shall not exceed an amount necessary to offset the actual or percentage of actual water demand impacts agreed upon in the agreement between the applicant and the public water system. The fees may not exceed the amount of all capacity charges and other water service fees applicable to the subdivision. At the discretion of the public water system, the amount required for the Voluntary Water Demand Mitigation Fund may be reduced by a portion of the normally required system capacity charges that finance future water supplies. Any reduction in the capacity charge may be calculated using the amount of water projected to be conserved using the Voluntary Water Demand Mitigation Fund at the cost determined by the public water system for developing new water supplies  through   or for  water conservation. Because the cost varies for developing different sources of future water supplies, including through water conservation, the total reduction in system capacity charges may or may not be equal to the amount paid into the Voluntary Water Demand Mitigation Fund.  A tentative map that includes a subdivision may not be disapproved due to the applicant's refusal to use voluntary mitigation measures.   An applicant's refusal to use voluntary demand management measures shall not result in any of the consequences set forth   in paragraph (3) of subdivision (p).  (6) "Voluntary Water Demand Mitigation Fund" means the fund used to finance verifiable and quantifiable water conservation or water supply augmentation measures by the public water system that mitigate or offset an agreed upon percentage of the projected water demand impacts from the subdivision. (b) (1) The legislative body of a city or county or the advisory agency, to the extent that it is authorized by local ordinance to approve, conditionally approve, or disapprove the tentative map, shall include as a condition in any tentative map that includes a subdivision a requirement that a sufficient water supply shall be available. Proof of the availability of a sufficient water supply shall be requested by the subdivision applicant or local agency, at the discretion of the local agency, and shall be based on written verification from the applicable public water system within 90 days of a request. The water savings projection attributable to voluntary demand management measures shall be contained in the written verification and shall be verified for accuracy and approved by the public water system, or, if there is no public water system, the local agency. The public water  agency   system  may collect fees necessary to provide additional analysis of voluntary demand management measures  required by this section, pursuant   , if required by this section pursuant  to Section 66014. A water supply assessment that is completed pursuant to Part 2.10 (commencing with Section 10910) of Division 6 of the Water Code satisfies the requirements of this section, unless the public water  agency receives new information or otherwise alters its water savings projections after the assessment is completed.   system receives significant new information that becomes available and that was not known and could not be known at the time when the assessment was prepared.  (2) If the public water system fails to deliver the written verification as required by this section, the local agency or any other interested party may seek a writ of mandamus to compel the public water system to comply. (3) If the written verification provided by the applicable public water system indicates that the public water system is unable to provide a sufficient water supply that will meet the projected demand associated with the proposed subdivision, then the local agency may make a finding, after consideration of the written verification by the applicable public water system, that additional water supplies not accounted for by the public water system are, or will be, available prior to completion of the subdivision that will satisfy the requirements of this section. This finding shall be made on the record and supported by substantial evidence. (4) If the written verification is not provided by the public water system, notwithstanding the local agency or other interested party securing a writ of mandamus to compel compliance with this section, then the local agency may make a finding that sufficient water supplies are, or will be, available prior to completion of the subdivision that will satisfy the requirements of this section. This finding shall be made on the record and supported by substantial evidence. (5) The public water system shall make the determination of the projected water savings  for the   attributable to the voluntary demand management  measures that will be incorporated into the subdivision.  The   (A)     The  projected water savings  may be calculated using water   shall be calculated using either of the following:   (i)     Water  efficiency program data compiled or maintained by the public water system  .   or the water   (ii)     Water  savings projections adopted by the California Urban Water Conservation  Council, including estimates of normal performance decline of specific water demand management measures. If   Council.   (B)     Notwithstanding subparagraph (A), if  a project applicant proposes to use a new voluntary water  reduction demand management measure that is not based on water savings projections adopted by   demand management measure for which neither  the California Urban Water Conservation  Council or the public water system, the public water system's determination of the projected water   Council nor the public water system has adopted an estimate or method to calculate the projected water savings of the proposed voluntary water demand management measure, the projected water  savings shall be made based on documented methodologies or calculations submitted in the  record. These methodologies   record.   (i)     These methodologies or calculations  may include, but are not limited to, water efficiency program implementation data and projections calculated by the public water  system or   system, the local agency,  the applicant, or by the California Water Conservation  Council, or data that demonstrates that water efficiencies are quantifiable and verifiable when the determination is made. Pursuant to   Council.   (ii) These methodologies or calculations shall demonstrate that the proposed voluntary water demand management measures result in projected water savings that are quantifiable and verifiable.   (C) The projected water savings may also include all of the following:   (i) Estimates of normal performance decline of specific water demand management measures.   (ii) Adjustment factors or other estimates to reflect the uncertain performance of new and emerging technologies.   (6)     Five   years after the project has been fully developed, the public water system shall include, in its next urban water management plan required by  Part 2.6 (commencing with Section 10610) of Division 6 of the Water Code,  the public water system shall   a  report on the monitoring and compliance of voluntary water demand management measures and determine  , if practicable based on readily available information,  whether they have resulted in the water savings necessary to achieve the agreed upon water demand offsets.  The   (7)    If practicable based on readily available information, the  public water system shall do both of the following: (A) Document the measured annual water use of the subdivision in comparison to the projected demand associated with the subdivision. (B) Calculate the water savings attributable to the  demand management   voluntary mitigation  measures financed by the Voluntary Water Demand Mitigation Fund for the subdivision.  (6) Copies of the first report, prepared five years after the project has been fully developed, shall be provided to the project applicant, the city or county that approved the subdivision map, the California Urban Water Conservation Council, and the Department of Water Resources.   (8) (A) If the public water system bases its written verification of a sufficient water supply for the subdivision, in whole or in part, on the use of voluntary demand management measures within the subdivision, the written verification shall be conditioned on the maintenance and operation of the voluntary demand management measures, or measures that are at least as water efficient, as agreed to by the applicant and the public water system, and the recordation as a covenant running with the land, pursuant to Section 1468 of the Civil Code, for the lots within the subdivision. The maintenance and operation obligations shall be contained in the maintenance manual referred to in paragraph (9). The recorded covenant shall include a notice of the existence of the maintenance manual and the obligation of the purchaser to obtain the maintenance manual from the seller. By acceptance of a deed to a lot, each purchaser acknowledges the obligation to comply with the voluntary demand management measures for the lot as described in the covenant. The covenant and its obligations shall be in effect for the time period used by the public water system for determining the water savings attributable to the demand management measures but not exceeding the period described in paragraph (2) of subdivision (a).   (B) The requirements of subparagraph (A) shall be included with the original sales documentation and shall be acknowledged by the purchaser. The seller shall instruct the original purchaser to provide the maintenance manual to any subsequent purchaser, pursuant to subdivision (h) of Section 912 of the Civil Code.   (C) The covenant referred to in subparagraph (A) may be enforced pursuant to the existing authority of a public water system.   (7)   (9)  Prior to the close of escrow, a builder shall give to a purchaser  a manual of documents   information  that shall be included in a maintenance manual  , as described in subdivision (c) of Section 945.5 of the Civil Code,  that informs the purchaser of the existence of the home's unique water saving devices, including information regarding their benefits, maintenance requirements, and proper use. (c) The applicable public water system's written verification of its ability or inability to provide a sufficient water supply that will meet the projected demand associated with the proposed subdivision as required by subdivision (b) shall be supported by substantial evidence. The substantial evidence may include, but is not limited to, any of the following: (1) The public water system's most recently adopted urban water management plan adopted pursuant to Part 2.6 (commencing with Section 10610) of Division 6 of the Water Code. (2) A water supply assessment that was completed pursuant to Part 2.10 (commencing with Section 10910) of Division 6 of the Water Code. (3) Other information relating to the sufficiency of the water supply that contains analytical information that is substantially similar to the assessment required by Section 10635 of the Water Code. (d) When the written verification pursuant to subdivision (b) relies on projected water supplies that are not currently available to the public water system, to provide a sufficient water supply to the subdivision, the written verification as to those projected water supplies shall be based on all of the following elements, to the extent each is applicable: (1) Written contracts or other proof of valid rights to the identified water supply that identify the terms and conditions under which the water will be available to serve the proposed subdivision. (2) Copies of a capital outlay program for financing the delivery of a sufficient water supply that has been adopted by the applicable governing body. (3) Securing of applicable federal, state, and local permits for construction of necessary infrastructure associated with supplying a sufficient water supply. (4) Any necessary regulatory approvals that are required in order to be able to convey or deliver a sufficient water supply to the subdivision. (e) If there is no public water system, the local agency shall make a written finding of sufficient water supply based on the evidentiary requirements of subdivisions (b), (c), and (d) and identify the mechanism for providing water to the subdivision. (f) In making any findings or determinations under this section, a local agency, or designated advisory agency, may work in conjunction with the project applicant and the public water system to secure water supplies sufficient to satisfy the demands of the proposed subdivision. If the local agency secures water supplies pursuant to this subdivision, which supplies are acceptable to and approved by the governing body of the public water system as suitable for delivery to customers, it shall work in conjunction with the public water system to implement a plan to deliver that water supply to satisfy the long-term demands of the proposed subdivision. (g) The written verification prepared under this section also shall include a description, to the extent that data is reasonably available based on published records maintained by federal and state agencies, and public records of local agencies, of the reasonably foreseeable impacts of the proposed subdivision on the availability of water resources for agricultural and industrial uses within the public water system's service area that are not currently receiving water from the public water system but are utilizing the same sources of water. To the extent that those reasonably foreseeable impacts have previously been evaluated in a document prepared pursuant to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) or the National Environmental Policy Act (P.L. 91-190) for the proposed subdivision, the public water system may utilize that information in preparing the written verification. (h) Where a water supply for a proposed subdivision includes groundwater, the public water system serving the proposed subdivision shall evaluate, based on substantial evidence, the extent to which it or the landowner has the right to extract the additional groundwater needed to supply the proposed subdivision. Nothing in this subdivision is intended to modify state law with regard to groundwater rights. (i) This section shall not apply to any residential project proposed for a site that is within an urbanized area and has been previously developed for urban uses, or where the immediate contiguous properties surrounding the residential project site are, or previously have been, developed for urban uses, or housing projects that are exclusively for very low and low-income households. (j) The determinations made pursuant to this section shall be consistent with the obligation of a public water system to grant a priority for the provision of available and future water resources or services to proposed housing developments that help meet the city's or county's share of the regional housing needs for lower income households, pursuant to Section 65589.7. (k) The County of San Diego shall be deemed to comply with this section if the Office of Planning and Research determines that all of the following conditions have been met: (1) A regional growth management strategy that provides for a comprehensive regional strategy and a coordinated economic development and growth management program has been developed pursuant to Proposition C as approved by the voters of the County of San Diego in November 1988, which required the development of a regional growth management plan and directed the establishment of a regional planning and growth management review board. (2) Each public water system, as defined in Section 10912 of the Water Code, within the County of San Diego has adopted an urban water management plan pursuant to Part 2.6 (commencing with Section 10610) of the Water Code. (3) The approval or conditional approval of tentative maps for subdivisions, as defined in this section, by the County of San Diego and the cities within the county requires written communications to be made by the public water system to the city or county, in a format and with content that is substantially similar to the requirements contained in this section, with regard to the availability of a sufficient water supply, or the reliance on projected water supplies to provide a sufficient water supply, for a proposed subdivision. () Nothing in this section shall preclude the legislative body of a city or county, or the designated advisory agency, at the request of the applicant, from making the determinations required in this section earlier than required pursuant to subdivision (b). (m) Nothing in this section shall be construed to create a right or entitlement to water service or any specific level of water service. (n) Nothing in this section is intended to change existing law concerning a public water system's obligation to provide water service to its existing customers or to any potential future customers. (o) Any action challenging the sufficiency of the public water system's written verification of a sufficient water supply shall be governed by Section 66499.37. (p) (1) For purposes of a Voluntary Water Demand Mitigation Fund held by a public water system, the public water system shall be required to expend all funds from the Voluntary Water Demand Mitigation Fund on water conservation measures that will reduce the projected demand associated with the subdivision. Water conservation measures shall be chosen that are the  least expensive,  most cost-effective means to yield water  savings  . The expenditure may be made within the subdivision or elsewhere within the service area of the public water supplier, at its discretion.  Funds deposited into the voluntary water demand mitigation fund shall be accounted for in the same manner as fees imposed for water connections or sewer connections pursuant to Section 66013.  (2) The public water system shall be prohibited from using funds from the Voluntary Water Conservation Mitigation Fund to supplant funding for water conservation programs required by  existing law   planned water demand reduction actions contained in an adopted urban water management plan, existing law,  or paid for by existing customers through water rates and surcharges. (3) The public water system should commit to carrying out the water conservation measures funded by the Voluntary Water Demand Mitigation Fund within 24 months of the sale of the last unit of the proposed subdivision. However, the public water system's failure to implement the water conservation measures shall not result in the revocation, denial, or delay of any legislative, adjudicatory, ministerial, or discretionary act, permit, or approval necessary for the planning, use, development, construction, occupancy, or operation of the proposed subdivision or any improvement thereon.  The sole remedy for the failure of a public water system to implement the water conservation measures shall be for an interested party to seek a writ of mandamus to compel the public water system to comply.  (q) (1) Not less than 40 percent of the proceeds from the Voluntary Water Demand Mitigation Fund shall be directed to water conservation programs in any disadvantaged community, as defined in Section 75005 of the Public Resources Code, within the service area of the public water system. (2) The governing body of the public water system may make a finding based on substantial evidence that no disadvantaged community exists within the service area or that the capacity for water conservation within all disadvantaged communities within the service area has been exhausted. Substantial evidence demonstrating that no disadvantaged community exists within the service area shall include federal census data. When the public water system makes this finding, the use of the water demand mitigation funds shall be exempt from the requirements of paragraph (1). (r) Notwithstanding subdivision (q), the amount of water savings attributable to the payment of fees into the Voluntary Water Demand Mitigation Fund shall be based upon the  least expensive,  most cost-effective means to yield water  savings  .  (s) Wherever "public water system" is used in paragraphs (5) and (6) of subdivision (a), paragraphs (1), (5), (6), (7), and (8) of subdivision (b), and subdivision (p), a local agency shall be substituted if there is no public water system that supplies water for the subdivision.   (s)   (t)  This section shall remain in effect only until January 1, 2017, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2017, deletes or extends that date. SEC. 3. Section 66473.7 is added to the Government Code, to read: 66473.7. (a) For the purposes of this section, the following definitions apply: (1) "Subdivision" means a proposed residential development of more than 500 dwelling units, except that for a public water system that has fewer than 5,000 service connections, "subdivision" means any proposed residential development that would account for an increase of 10 percent or more in the number of the public water system's existing service connections. (2) "Sufficient water supply" means the total water supplies available during normal, single dry, and multiple dry years within a 20-year projection that will meet the projected demand associated with the proposed subdivision, in addition to existing and planned future uses, including, but not limited to, agricultural and industrial uses. In determining "sufficient water supply," all of the following factors shall be considered: (A) The availability of water supplies over a historical record of at least 20 years. (B) The applicability of an urban water shortage contingency analysis prepared pursuant to Section 10632 of the Water Code that includes actions to be undertaken by the public water system in response to water supply shortages. (C) The reduction in water supply allocated to a specific water use sector pursuant to a resolution or ordinance adopted, or a contract entered into, by the public water system, as long as that resolution, ordinance, or contract does not conflict with Section 354 of the Water Code. (D) The amount of water that the water supplier can reasonably rely on receiving from other water supply projects, such as conjunctive use, reclaimed water, water conservation, and water transfer, including programs identified under federal, state, and local water initiatives such as CALFED and Colorado River tentative agreements, to the extent that these water supplies meet the criteria of subdivision (d). (3) "Public water system" means the water supplier that is, or may become as a result of servicing the subdivision included in a tentative map pursuant to subdivision (b), a public water system, as defined in Section 10912 of the Water Code, that may supply water for a subdivision. (b) (1) The legislative body of a city or county or the advisory agency, to the extent that it is authorized by local ordinance to approve, conditionally approve, or disapprove the tentative map, shall include as a condition in any tentative map that includes a subdivision a requirement that a sufficient water supply shall be available. Proof of the availability of a sufficient water supply shall be requested by the subdivision applicant or local agency, at the discretion of the local agency, and shall be based on written verification from the applicable public water system within 90 days of a request. (2) If the public water system fails to deliver the written verification as required by this section, the local agency or any other interested party may seek a writ of mandamus to compel the public water system to comply. (3) If the written verification provided by the applicable public water system indicates that the public water system is unable to provide a sufficient water supply that will meet the projected demand associated with the proposed subdivision, then the local agency may make a finding, after consideration of the written verification by the applicable public water system, that additional water supplies not accounted for by the public water system are, or will be, available prior to completion of the subdivision that will satisfy the requirements of this section. This finding shall be made on the record and supported by substantial evidence. (4) If the written verification is not provided by the public water system, notwithstanding the local agency or other interested party securing a writ of mandamus to compel compliance with this section, then the local agency may make a finding that sufficient water supplies are, or will be, available prior to completion of the subdivision that will satisfy the requirements of this section. This finding shall be made on the record and supported by substantial evidence. (c) The applicable public water system's written verification of its ability or inability to provide a sufficient water supply that will meet the projected demand associated with the proposed subdivision as required by subdivision (b) shall be supported by substantial evidence. The substantial evidence may include, but is not limited to, any of the following: (1) The public water system's most recently adopted urban water management plan adopted pursuant to Part 2.6 (commencing with Section 10610) of Division 6 of the Water Code. (2) A water supply assessment that was completed pursuant to Part 2.10 (commencing with Section 10910) of Division 6 of the Water Code. (3) Other information relating to the sufficiency of the water supply that contains analytical information that is substantially similar to the assessment required by Section 10635 of the Water Code. (d) When the written verification pursuant to subdivision (b) relies on projected water supplies that are not currently available to the public water system, to provide a sufficient water supply to the subdivision, the written verification as to those projected water supplies shall be based on all of the following elements, to the extent each is applicable: (1) Written contracts or other proof of valid rights to the identified water supply that identify the terms and conditions under which the water will be available to serve the proposed subdivision. (2) Copies of a capital outlay program for financing the delivery of a sufficient water supply that has been adopted by the applicable governing body. (3) Securing of applicable federal, state, and local permits for construction of necessary infrastructure associated with supplying a sufficient water supply. (4) Any necessary regulatory approvals that are required in order to be able to convey or deliver a sufficient water supply to the subdivision. (e) If there is no public water system, the local agency shall make a written finding of sufficient water supply based on the evidentiary requirements of subdivisions (c) and (d) and identify the mechanism for providing water to the subdivision. (f) In making any findings or determinations under this section, a local agency, or designated advisory agency, may work in conjunction with the project applicant and the public water system to secure water supplies sufficient to satisfy the demands of the proposed subdivision. If the local agency secures water supplies pursuant to this subdivision, which supplies are acceptable to and approved by the governing body of the public water system as suitable for delivery to customers, it shall work in conjunction with the public water system to implement a plan to deliver that water supply to satisfy the long-term demands of the proposed subdivision. (g) The written verification prepared under this section also shall include a description, to the extent that data is reasonably available based on published records maintained by federal and state agencies, and public records of local agencies, of the reasonably foreseeable impacts of the proposed subdivision on the availability of water resources for agricultural and industrial uses within the public water system's service area that are not currently receiving water from the public water system but are utilizing the same sources of water. To the extent that those reasonably foreseeable impacts have previously been evaluated in a document prepared pursuant to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) or the National Environmental Policy Act (P.L. 91-190) for the proposed subdivision, the public water system may utilize that information in preparing the written verification. (h) Where a water supply for a proposed subdivision includes groundwater, the public water system serving the proposed subdivision shall evaluate, based on substantial evidence, the extent to which it or the landowner has the right to extract the additional groundwater needed to supply the proposed subdivision. Nothing in this subdivision is intended to modify state law with regard to groundwater rights. (i) This section shall not apply to any residential project proposed for a site that is within an urbanized area and has been previously developed for urban uses, or where the immediate contiguous properties surrounding the residential project site are, or previously have been, developed for urban uses, or housing projects that are exclusively for very low and low-income households. (j) The determinations made pursuant to this section shall be consistent with the obligation of a public water system to grant a priority for the provision of available and future water resources or services to proposed housing developments that help meet the city's or county's share of the regional housing needs for lower income households, pursuant to Section 65589.7. (k) The County of San Diego shall be deemed to comply with this section if the Office of Planning and Research determines that all of the following conditions have been met: (1) A regional growth management strategy that provides for a comprehensive regional strategy and a coordinated economic development and growth management program has been developed pursuant to Proposition C as approved by the voters of the County of San Diego in November 1988, which required the development of a regional growth management plan and directed the establishment of a regional planning and growth management review board. (2) Each public water system, as defined in Section 10912 of the Water Code, within the County of San Diego has adopted an urban water management plan pursuant to Part 2.6 (commencing with Section 10610) of the Water Code. (3) The approval or conditional approval of tentative maps for subdivisions, as defined in this section, by the County of San Diego and the cities within the county requires written communications to be made by the public water system to the city or county, in a format and with content that is substantially similar to the requirements contained in this section, with regard to the availability of a sufficient water supply, or the reliance on projected water supplies to provide a sufficient water supply, for a proposed subdivision. () Nothing in this section shall preclude the legislative body of a city or county, or the designated advisory agency, at the request of the applicant, from making the determinations required in this section earlier than required pursuant to subdivision (b). (m) Nothing in this section shall be construed to create a right or entitlement to water service or any specific level of water service. (n) Nothing in this section is intended to change existing law concerning a public water system's obligation to provide water service to its existing customers or to any potential future customers. (o) Any action challenging the sufficiency of the public water system's written verification of a sufficient water supply shall be governed by Section 66499.37. (p) This section shall become operative on January 1, 2017. SEC. 4. Section 10910 of the Water Code is amended to read: 10910. (a) Any city or county that determines that a project, as defined in Section 10912, is subject to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) under Section 21080 of the Public Resources Code shall comply with this part. (b) The city or county, at the time that it determines whether an environmental impact report, a negative declaration, or a mitigated negative declaration is required for any project subject to the California Environmental Quality Act pursuant to Section 21080.1 of the Public Resources Code, shall identify any water system that is, or may become as a result of supplying water to the project identified pursuant to this subdivision, a public water system, as defined in Section 10912, that may supply water for the project. If the city or county is not able to identify any public water system that may supply water for the project, the city or county shall prepare the water assessment required by this part after consulting with any entity serving domestic water supplies whose service area includes the project site, the local agency formation commission, and any public water system adjacent to the project site. (c) (1) The city or county, at the time it makes the determination required under Section 21080.1 of the Public Resources Code, shall request each public water system identified pursuant to subdivision (b) to determine whether the projected water demand associated with a proposed project was included as part of the most recently adopted urban water management plan adopted pursuant to Part 2.6 (commencing with Section 10610). (2) If the projected water demand associated with the proposed project was accounted for in the most recently adopted urban water management plan, the public water system may incorporate the requested information from the urban water management plan in preparing the elements of the assessment required to comply with subdivisions (d), (e), (f), and (g). (3) If the projected water demand associated with the proposed project was not accounted for in the most recently adopted urban water management plan, or the public water system has no urban water management plan, the water supply assessment for the project shall include a discussion with regard to whether the public water system's total projected water supplies available during normal, single dry, and multiple dry water years during a 20-year projection will meet the projected water demand associated with the proposed project, in addition to the public water system's existing and planned future uses, including agricultural and manufacturing uses. (4) If the city or county is required to comply with this part pursuant to subdivision (b), the water supply assessment for the project shall include a discussion with regard to whether the total projected water supplies, determined to be available by the city or county for the project during normal, single dry, and multiple dry water years during a 20-year projection, will meet the projected water demand associated with the proposed project, in addition to existing and planned future uses, including agricultural and manufacturing uses  after taking into consideration voluntary water demand management measures proposed to be incorporated into the project or within the water provider's service area  . (5) If an applicant elects to include voluntary demand management measures, the projected water demand shall be reduced for the project to an amount below  planned water demand reduction actions contained in an adopted urban water management plan and  the current statutory, regulatory, and local ordinance requirements, based on the project applicant's voluntary water demand management measures. The public water system, or, if there is no public water system, the local agency, shall quantify the reduction of anticipated water demand attributable to the voluntary demand management measures. For purposes of this section, "voluntary water demand management measures  voluntarily chosen by the applicant  " means water use efficiency measures that exceed current statutory, regulatory, and local ordinance requirements, and that are permanently fixed to residential, commercial, industrial, or other real property that will reduce projected water demand, and may include, but are not limited to, all of the following: (A) Smart irrigation controllers. (B) Waterless urinals. (C) Ultralow flow and dual flow toilets. (D) Recycled water facilities. (E) Rainwater capture and reuse facilities. (F) Any other measure that will prevent the waste of water or promote the reasonable and efficient use and reuse of available water supplies by the subdivision or the public. For the purposes of this chapter, water recycling shall be eligible as a water conservation measure. (G) Voluntary mitigation measures may include, at the applicant's sole discretion conservation offsets that reduce a project's impact to the public water system, as determined by the applicant and agreed upon by the public water system. The applicant may enter into a mutual agreement with the public water system to mitigate water demand associated with a proposed subdivision by depositing funds into a Voluntary Water Demand Mitigation Fund. The fees paid into the Voluntary Water Demand Mitigation Fund shall not exceed an amount necessary to offset the actual or percentage of actual water demand impacts agreed upon in the agreement between the applicant and the public water system. At the discretion of the public water system, the amount required for the Voluntary Water Demand Mitigation Fund may be reduced by a portion of the normally required system capacity charges that finance future water supplies. Any reduction in the capacity charge may be calculated using the amount of water projected to be conserved using the Voluntary Water Demand Mitigation Fund at the cost determined by the public water system for developing new water supplies  through  or for  water conservation. Because the cost varies for developing different sources of future water supplies, including through water conservation, the total reduction in system capacity charges may or may not be equal to the amount paid into the Voluntary Water Demand Mitigation Fund.  A project may not be disapproved due to the applicant's refusal to use voluntary mitigation measures.   An applicant's refusal to use voluntary demand management measures shall not result in any of the consequences set forth in paragraph (3) of subdivision (i).  (6) "Voluntary Water Demand Mitigation Fund" means the fund used to finance verifiable and quantifiable water conservation or water supply augmentation measures by the public water system that mitigate or offset a percentage of the projected water demand impacts from the  subdivision.   (7) The public water system shall make the determination of the projected water savings for the measures that will be incorporated into the subdivision. The projected water savings may be calculated using water efficiency program data compiled or maintained by the public water system or the water savings projections adopted by the California Urban Water Conservation Council, including estimates of normal performance decline of specific water demand management measures. If a project applicant proposes to use a new voluntary water reduction demand management measure that is not based on water savings projections adopted by the California Urban Water Conservation Council or the public water system, the public water system's determination of the projected water savings shall be made based on documented methodologies or calculations submitted in the record. These methodologies may include, but are not limited to, water efficiency program implementation data and projections calculated by the public water system or the applicant, or by the California Water Conservation Council, or data that demonstrates that water efficiencies are quantifiable and verifiable when the determination is made. Pursuant to Part 2.6 (commencing with Section 10610) of Division 6 of the Water Code, the public water system shall report on the monitoring and compliance of voluntary demand management measures and determine whether they have resulted in the water savings necessary to achieve the agreed upon water demand offsets. The public water system shall do both of the following:   (A) Document the measured annual water use of the subdivision in comparison to the projected demand associated with the subdivision.   (B) Calculate the water savings attributable to the demand management measures financed by the Voluntary Water Demand Mitigation Fund for the subdivision.   (8) Copies of the first report, prepared five years after the project has been fully developed, shall be provided to the project applicant, the city or county that approved the subdivision map, the California Urban Water Conservation Council, and the Department of Water Resources.   (9)     Prior to the close of escrow, a builder shall give to a purchaser a manual of documents that shall be included in a maintenance manual that informs the purchaser of the existence of the home's unique water saving devices, including information regarding their benefits, maintenance requirements, and proper use.   project.   (7) The public water system shall make the determination of the projected water savings attributable to the voluntary demand management measures that will be incorporated into the project.   (A) The projected water savings shall be calculated using either of the following:   (i) Water efficiency program data compiled or maintained by the public water system.   (ii) Water savings projections adopted by the California Urban Water Conservation Council.   (B) Notwithstanding subparagraph (A), if a project applicant proposes to use a new voluntary water demand management measure for which neither the California Urban Water Conservation Council nor the public water system has adopted an estimate or method to calculate the projected water savings of the proposed voluntary water demand management measure, the projected water savings shall be made based on documented methodologies or calculations submitted in the record.   (i) These methodologies or calculations may include, but are not limited to, water efficiency program implementation data and projections calculated by the public water system, the local agency, the applicant, or the California Water Conservation Council.   (ii) These methodologies or calculations shall demonstrate that the proposed voluntary water demand management measures result in projected water savings that are quantifiable and verifiable.   (C) The projected water savings may also include all of the following:   (i) Estimates of normal performance decline of specific water demand management measures.   (ii) Adjustment factors or other estimates to reflect the uncertain performance of new and emerging technologies.   (8) Five years after the project has been fully developed, the public water system shall include in its next urban water management plan, required by Part 2.6 (commencing with Section 10610) of Division 6 of the Water Code, a report on the monitoring and compliance of voluntary water demand management measures and determine, if practicable based upon readily available information, whether they have resulted in the water savings necessary to achieve the agreed upon water demand offsets.   (9) If practicable based upon readily available information, the public water system shall do both of the following:   (A) Document the measured annual water use of the project in comparison to the projected demand associated with the project.   (B) Calculate the water savings attributable to the voluntary mitigation measures financed by the Voluntary Water Demand Mitigation Fund for the project.   (10) (A) If the public water system bases its water supply assessment for the project, in whole or in part, on the use of voluntary demand management measures within the project, the assessment shall be conditioned on the maintenance and operation of the voluntary demand management measures, or measures that are at least as water efficient, as agreed to by the applicant and the public water system, and the recordation as a covenant running with the land, pursuant to Section 1468 of the Civil Code, for the lots within the project. The maintenance and operation obligations shall be contained in the maintenance manual referred to in paragraph (11). The recorded covenant shall include a notice of the existence of the maintenance manual and the obligation for a purchaser to obtain it from the seller. By acceptance of a deed to a lot, each purchaser acknowledges the obligation to comply with the voluntary demand management measures for the lot as described in the covenant. The covenant and its obligations shall be in effect for the time period used by the public water system for determining the water savings attributable to the demand management measures but that time period shall not exceed the period described in subdivision (a) of Section 10631.   (B) The requirements of paragraph (A) shall be included with the original sales documentation and shall be acknowledged by the purchaser. The seller shall instruct the original purchaser to provide the maintenance manual to any subsequent purchaser, pursuant to subdivision (h) of Section 912 of the Civil Code.   (C) The covenant referred to in paragraph (A) may be enforced pursuant to the existing authority of a public water system.   (11) Prior to the close of escrow, a builder shall give to a purchaser information that shall be included in a maintenance manual as described in subdivision (c) of Section 945.5 of the Civil Code, that informs the purchaser of the existence of the home's unique water saving devices, including information regarding their benefits, maintenance requirements, and proper use.  (d) (1) The assessment required by this section shall include an identification of any existing water supply entitlements, water rights, or water service contracts relevant to the identified water supply for the proposed project, and a description of the quantities of water received in prior years by the public water system, or the city or county if either is required to comply with this part pursuant to subdivision (b), under the existing water supply entitlements, water rights, or water service contracts. (2) An identification of existing water supply entitlements, water rights, or water service contracts held by the public water system, or the city or county if either is required to comply with this part pursuant to subdivision (b), shall be demonstrated by providing information related to all of the following: (A) Written contracts or other proof of entitlement to an identified water supply. (B) Copies of a capital outlay program for financing the delivery of a water supply that has been adopted by the public water system. (C) Federal, state, and local permits for construction of necessary infrastructure associated with delivering the water supply. (D) Any necessary regulatory approvals that are required in order to be able to convey or deliver the water supply. (e) If no water has been received in prior years by the public water system, or the city or county if either is required to comply with this part pursuant to subdivision (b), under the existing water supply entitlements, water rights, or water service contracts, the public water system, or the city or county if either is required to comply with this part pursuant to subdivision (b), shall also include in its water supply assessment pursuant to subdivision (c), an identification of the other public water systems or water service contractholders that receive a water supply or have existing water supply entitlements, water rights, or water service contracts, to the same source of water as the public water system, or the city or county if either is required to comply with this part pursuant to subdivision (b), has identified as a source of water supply within its water supply assessments. (f) If a water supply for a proposed project includes groundwater, the following additional information shall be included in the water supply assessment: (1) A review of any information contained in the urban water management plan relevant to the identified water supply for the proposed project. (2) A description of any groundwater basin or basins from which the proposed project will be supplied. For those basins for which a court or the board has adjudicated the rights to pump groundwater, a copy of the order or decree adopted by the court or the board and a description of the amount of groundwater the public water system, or the city or county if either is required to comply with this part pursuant to subdivision (b), has the legal right to pump under the order or decree. For basins that have not been adjudicated, information as to whether the department has identified the basin or basins as overdrafted or has projected that the basin will become overdrafted if present management conditions continue, in the most current bulletin of the department that characterizes the condition of the groundwater basin, and a detailed description by the public water system, or the city or county if either is required to comply with this part pursuant to subdivision (b), of the efforts being undertaken in the basin or basins to eliminate the long-term overdraft condition. (3) A detailed description and analysis of the amount and location of groundwater pumped by the public water system, or the city or county if either is required to comply with this part pursuant to subdivision (b), for the past five years from any groundwater basin from which the proposed project will be supplied. The description and analysis shall be based on information that is reasonably available, including, but not limited to, historic use records. (4) A detailed description and analysis of the amount and location of groundwater that is projected to be pumped by the public water system, or the city or county if either is required to comply with this part pursuant to subdivision (b), from any basin from which the proposed project will be supplied. The description and analysis shall be based on information that is reasonably available, including, but not limited to, historic use records. (5) An analysis of the sufficiency of the groundwater from the basin or basins from which the proposed project will be supplied to meet the projected water demand associated with the proposed project. A water supply assessment shall not be required to include the information required by this paragraph if the public water system determines, as part of the review required by paragraph (1), that the sufficiency of groundwater necessary to meet the initial and projected water demand associated with the project was addressed in the description and analysis required by paragraph (4) of subdivision (b) of Section 10631. (g) (1) Subject to paragraph (2), the governing body of each public water system shall submit the assessment to the city or county not later than 90 days from the date on which the request was received. The governing body of each public water system, or the city or county if either is required to comply with this act pursuant to subdivision (b), shall approve the assessment prepared pursuant to this section at a regular or special meeting. (2) Prior to the expiration of the 90-day period, if the public water system intends to request an extension of time to prepare and adopt the assessment, the public water system shall meet with the city or county to request an extension of time, which shall not exceed 30 days, to prepare and adopt the assessment. (3) If the public water system fails to request an extension of time, or fails to submit the assessment notwithstanding the extension of time granted pursuant to paragraph (2), the city or county may seek a writ of mandamus to compel the governing body of the public water system to comply with the requirements of this part relating to the submission of the water supply assessment. (h) Notwithstanding any other provision of this part, if a project has been the subject of a water supply assessment that complies with the requirements of this part, no additional water supply assessment shall be required for subsequent projects that were part of a larger project for which a water supply assessment was completed and that has complied with the requirements of this part and for which the public water system, or the city or county if either is required to comply with this part pursuant to subdivision (b), has concluded that its water supplies are sufficient to meet the projected water demand associated with the proposed project, in addition to the existing and planned future uses, including, but not limited to, agricultural and industrial uses, unless one or more of the following changes occurs: (1) Changes in the project that result in a substantial increase in water demand for the project. (2) Changes in the circumstances or conditions substantially affecting the ability of the public water system, or the city or county if either is required to comply with this part pursuant to subdivision (b), to provide a sufficient supply of water for the project. (3) Significant new information becomes available which was not known and could not have been known at the time when the assessment was prepared. (i) (1) For purposes of a Voluntary Water Demand Mitigation Fund held by a public water system, the public water system shall be required to expend all funds from the Voluntary Water Demand Mitigation Fund on water conservation measures that will reduce the projected demand associated with the  subdivision   project  . Water conservation measures shall be chosen that are the  least expensive,  most cost-effective means to yield water  savings  . The expenditures may be made within the subdivision or elsewhere within the service area of the public water supplier at its discretion.  Funds deposited into the voluntary water demand mitigation fund shall be accounted for in the same manner as fees imposed for water connections or sewer connections pursuant to Section 66013.  (2) The public water system shall be prohibited from using funds from the Voluntary Water Conservation Mitigation Fund to supplant funding for water conservation programs required by  existing law   planned water reduction actions contained in an adopted urban water management plan, existing law,  or paid for by existing customers through water rates and surcharges. (3) The public water system should commit to carrying out the water conservation measures funded by the Voluntary Water Demand Mitigation Fund within 24 months of the sale of the last unit of the proposed subdivision. However, the public water system's failure to implement the water conservation measures shall not result in the revocation, denial, or delay of any legislative, adjudicatory, ministerial, or discretionary act, permit, or approval necessary for the planning, use, development, construction, occupancy, or operation of the proposed subdivision   project  or any improvement thereon.  The sole remedy for the failure of a public water system to implement the water conservation measures shall be for an interested party to seek a writ of mandamus to compel the public water system to comply.  (j) (1) Not less than 40 percent of the proceeds from the Voluntary Water Demand Mitigation Fund shall be directed to water conservation programs in any disadvantaged community, as defined in Section 75005 of the Public Resources Code, within the service area of the public water system. (2) The governing body of the public water system may make a finding based on substantial evidence that no disadvantaged community exists within the service area or that the capacity for water conservation within all disadvantaged communities within the service area has been exhausted. Substantial evidence demonstrating that no disadvantaged community exists within the service area shall include federal census data. When the public water system makes this finding, the use of the water demand mitigation funds shall be exempt from the requirements in paragraph (1). (k) Notwithstanding subdivision (j), the amount of water savings attributable to the payment of fees into the Voluntary Water Demand Mitigation Fund shall be based upon the  least expensive,  most cost-effective means to yield water  savings  .  (l) Wherever "public water system" is used in paragraphs (5), (6), (7), (8), (9), and (10) of subdivision (c), and subdivision (p), a local agency shall be substituted if there is no public water system that supplies water for the subdivision.   (l)   (m)  This section shall remain in effect only until January 1, 2017, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2017, deletes or extends that date. SEC. 5. Section 10910 is added to the Water Code, to read: 10910. (a) Any city or county that determines that a project, as defined in Section 10912, is subject to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) under Section 21080 of the Public Resources Code shall comply with this part. (b) The city or county, at the time that it determines whether an environmental impact report, a negative declaration, or a mitigated negative declaration is required for any project subject to the California Environmental Quality Act pursuant to Section 21080.1 of the Public Resources Code, shall identify any water system that is, or may become as a result of supplying water to the project identified pursuant to this subdivision, a public water system, as defined in Section 10912, that may supply water for the project. If the city or county is not able to identify any public water system that may supply water for the project, the city or county shall prepare the water assessment required by this part after consulting with any entity serving domestic water supplies whose service area includes the project site, the local agency formation commission, and any public water system adjacent to the project site. (c) (1) The city or county, at the time it makes the determination required under Section 21080.1 of the Public Resources Code, shall request each public water system identified pursuant to subdivision (b) to determine whether the projected water demand associated with a proposed project was included as part of the most recently adopted urban water management plan adopted pursuant to Part 2.6 (commencing with Section 10610). (2) If the projected water demand associated with the proposed project was accounted for in the most recently adopted urban water management plan, the public water system may incorporate the requested information from the urban water management plan in preparing the elements of the assessment required to comply with subdivisions (d), (e), (f), and (g). (3) If the projected water demand associated with the proposed project was not accounted for in the most recently adopted urban water management plan, or the public water system has no urban water management plan, the water supply assessment for the project shall include a discussion with regard to whether the public water system's total projected water supplies available during normal, single dry, and multiple dry water years during a 20-year projection will meet the projected water demand associated with the proposed project, in addition to the public water system's existing and planned future uses, including agricultural and manufacturing uses. (4) If the city or county is required to comply with this part pursuant to subdivision (b), the water supply assessment for the project shall include a discussion with regard to whether the total projected water supplies, determined to be available by the city or county for the project during normal, single dry, and multiple dry water years during a 20-year projection, will meet the projected water demand associated with the proposed project, in addition to existing and planned future uses, including agricultural and manufacturing uses. (d) (1) The assessment required by this section shall include an identification of any existing water supply entitlements, water rights, or water service contracts relevant to the identified water supply for the proposed project, and a description of the quantities of water received in prior years by the public water system, or the city or county if either is required to comply with this part pursuant to subdivision (b), under the existing water supply entitlements, water rights, or water service contracts. (2) An identification of existing water supply entitlements, water rights, or water service contracts held by the public water system, or the city or county if either is required to comply with this part pursuant to subdivision (b), shall be demonstrated by providing information related to all of the following: (A) Written contracts or other proof of entitlement to an identified water supply. (B) Copies of a capital outlay program for financing the delivery of a water supply that has been adopted by the public water system. (C) Federal, state, and local permits for construction of necessary infrastructure associated with delivering the water supply. (D) Any necessary regulatory approvals that are required in order to be able to convey or deliver the water supply. (e) If no water has been received in prior years by the public water system, or the city or county if either is required to comply with this part pursuant to subdivision (b), under the existing water supply entitlements, water rights, or water service contracts, the public water system, or the city or county if either is required to comply with this part pursuant to subdivision (b), shall also include in its water supply assessment pursuant to subdivision (c), an identification of the other public water systems or water service contractholders that receive a water supply or have existing water supply entitlements, water rights, or water service contracts, to the same source of water as the public water system, or the city or county if either is required to comply with this part pursuant to subdivision (b), has identified as a source of water supply within its water supply assessments. (f) If a water supply for a proposed project includes groundwater, the following additional information shall be included in the water supply assessment: (1) A review of any information contained in the urban water management plan relevant to the identified water supply for the proposed project. (2) A description of any groundwater basin or basins from which the proposed project will be supplied. For those basins for which a court or the board has adjudicated the rights to pump groundwater, a copy of the order or decree adopted by the court or the board and a description of the amount of groundwater the public water system, or the city or county if either is required to comply with this part pursuant to subdivision (b), has the legal right to pump under the order or decree. For basins that have not been adjudicated, information as to whether the department has identified the basin or basins as overdrafted or has projected that the basin will become overdrafted if present management conditions continue, in the most current bulletin of the department that characterizes the condition of the groundwater basin, and a detailed description by the public water system, or the city or county if either is required to comply with this part pursuant to subdivision (b), of the efforts being undertaken in the basin or basins to eliminate the long-term overdraft condition. (3) A detailed description and analysis of the amount and location of groundwater pumped by the public water system, or the city or county if either is required to comply with this part pursuant to subdivision (b), for the past five years from any groundwater basin from which the proposed project will be supplied. The description and analysis shall be based on information that is reasonably available, including, but not limited to, historic use records. (4) A detailed description and analysis of the amount and location of groundwater that is projected to be pumped by the public water system, or the city or county if either is required to comply with this part pursuant to subdivision (b), from any basin from which the proposed project will be supplied. The description and analysis shall be based on information that is reasonably available, including, but not limited to, historic use records. (5) An analysis of the sufficiency of the groundwater from the basin or basins from which the proposed project will be supplied to meet the projected water demand associated with the proposed project. A water supply assessment shall not be required to include the information required by this paragraph if the public water system determines, as part of the review required by paragraph (1), that the sufficiency of groundwater necessary to meet the initial and projected water demand associated with the project was addressed in the description and analysis required by paragraph (4) of subdivision (b) of Section 10631. (g) (1) Subject to paragraph (2), the governing body of each public water system shall submit the assessment to the city or county not later than 90 days from the date on which the request was received. The governing body of each public water system, or the city or county if either is required to comply with this act pursuant to subdivision (b), shall approve the assessment prepared pursuant to this section at a regular or special meeting. (2) Prior to the expiration of the 90-day period, if the public water system intends to request an extension of time to prepare and adopt the assessment, the public water system shall meet with the city or county to request an extension of time, which shall not exceed 30 days, to prepare and adopt the assessment. (3) If the public water system fails to request an extension of time, or fails to submit the assessment notwithstanding the extension of time granted pursuant to paragraph (2), the city or county may seek a writ of mandamus to compel the governing body of the public water system to comply with the requirements of this part relating to the submission of the water supply assessment. (h) Notwithstanding any other provision of this part, if a project has been the subject of a water supply assessment that complies with the requirements of this part, no additional water supply assessment shall be required for subsequent projects that were part of a larger project for which a water supply assessment was completed and that has complied with the requirements of this part and for which the public water system, or the city or county if either is required to comply with this part pursuant to subdivision (b), has concluded that its water supplies are sufficient to meet the projected water demand associated with the proposed project, in addition to the existing and planned future uses, including, but not limited to, agricultural and industrial uses, unless one or more of the following changes occurs: (1) Changes in the project that result in a substantial increase in water demand for the project. (2) Changes in the circumstances or conditions substantially affecting the ability of the public water system, or the city or county if either is required to comply with this part pursuant to subdivision (b), to provide a sufficient supply of water for the project. (3) Significant new information becomes available which was not known and could not have been known at the time when the assessment was prepared. (i) This section shall become operative on January 1, 2017. SEC. 6. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.