California Senate Bill SB848 Amended / Bill

 BILL NUMBER: SB 848AMENDED BILL TEXT AMENDED IN SENATE FEBRUARY 20, 2014 AMENDED IN SENATE FEBRUARY 12, 2014 INTRODUCED BY Senator Wolk (Coauthors: Senators DeSaulnier, Hancock, and Steinberg) (Coauthor: Assembly Member Bonilla) JANUARY 9, 2014 An act to repeal and add Division 26.7 (commencing with Section 79700) of the Water Code, and to repeal Section 2 of Chapter 3 of the Seventh Extraordinary Session of the Statutes of 2009, relating to a safe drinking water, water quality, and water supply program, by providing the funds necessary therefor through an election for the issuance and sale of bonds of the State of California and for the handling and disposition of those funds, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST SB 848, as amended, Wolk. Safe Drinking Water, Water Quality, and Water Supply Act of 2014. (1) Existing law creates the Safe, Clean, and Reliable Drinking Water Supply Act of 2012, which, if approved by the voters, would authorize the issuance of bonds in the amount of $11,140,000,000 pursuant to the State General Obligation Bond Law to finance a safe drinking water and water supply reliability program. Existing law provides for the submission of the bond act to the voters at the November 4, 2014, statewide general election. This bill would repeal these provisions. (2) Under existing law, various measures have been approved by the voters to provide funds for water supply and protection facilities and programs. This bill would enact the Safe Drinking Water, Water Quality, and Water Supply Act of 2014, which, if adopted by the voters, would authorize the issuance of bonds in the amount of $6,825,000,000 pursuant to the State General Obligation Bond Law to finance a safe drinking water, water quality, and water supply program. The bill would provide for the submission of the bond act to the voters at the November 4, 2014, statewide general election. (3) Existing law, the Water Conservation and Water Quality Bond Law of 1986, approved by the voters at the June 3, 1986, statewide primary election, authorizes the issuance of general obligation bonds in the amount of $150,000,000 for the Department of Water Resources to make prescribed loans to local agencies for the purposes of financing a water conservation and water quality program. Existing law, the Water Conservation Bond Law of 1988, approved by the voters at the November 8, 1988, statewide general election, authorizes the issuance of general obligation bonds in the amount of $60,000,000 for the Department of Water Resources to make prescribed loans to local agencies for the purposes of financing a water conservation program. Existing law, the Safe, Clean, Reliable Water Supply Act, a bond act approved by the voters as Proposition 204 at the November 5, 1996, statewide general election, authorizes the issuance of general obligation bonds in the amount of $995,000,000 for grants, loans, and direct expenditures for the purposes of financing a safe, clean, reliable water supply program. Existing law, the Costa-Machado Water Act of 2000, a bond act approved by the voters as Proposition 13 at the March 7, 2000, statewide primary election, authorizes the issuance of general obligation bonds in the amount of $1,970,000,000 for grants, loans, and direct expenditures for the purposes of financing a safe drinking water, clean water, watershed protection, and flood protection program. This bill would authorize the Legislature to appropriate funds from the above-described bond acts for grants and direct expenditures to accomplish prescribed purposes relating to water supply enhancement as described in the Safe Drinking Water, Water Quality, and Water Supply Act of 2014. This bill would provide for the submission of these provisions to the voters at the November 4, 2014, statewide general election. (4) This bill would declare that it is to take effect immediately as an urgency statute. Vote: 2/3. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Division 26.7 (commencing with Section 79700) of the Water Code, as added by Section 1 of Chapter 3 of the Seventh Extraordinary Session of the Statutes of 2009, is repealed. SEC. 2. Division 26.7 (commencing with Section 79700) is added to the Water Code, to read: DIVISION 26.7. The Safe Drinking Water, Water Quality, and Water Supply Act of 2014 CHAPTER 1. SHORT TITLE 79700. This division shall be known and may be cited as the Safe Drinking Water, Water Quality, and Water Supply Act of 2014. CHAPTER 2. FINDINGS AND DECLARATIONS 79705. In placing this measure before the voters, the Legislature finds and declares that all of the following are in the public's interest: (a) Ensuring that safe drinking water is available to all Californians. (b) Protecting water quality and cleaning up contaminated water sources. (c) Increasing water supply and water supply reliability. (d) Assisting each region of the state in improving local water supply reliability and water quality. (e) Resolving water-related conflicts, improving local and regional water self-sufficiency, and reducing reliance on imported water. (f) Protecting the rivers, lakes, and streams of the state from pollution, loss of water quality, and destruction of fish and wildlife habitat. 79706. The Legislature further finds and declares that to achieve the public interest objectives under Section 79705, it is necessary to invest state resources in the following: (a) Safe drinking water projects, especially projects addressing the needs of disadvantaged communities, and financing urgent public health emergency actions to ensure safe drinking water supplies. (b) Wastewater treatment projects to keep contaminants out of rivers, lakes, streams, and coastal waters. (c) Projects to enhance water supplies and increase water supply reliability through the following: (1) Urban and agricultural water conservation and water use efficiency projects. (2) Groundwater cleanup or pollution prevention in sources of drinking water. (3) Water recycling projects. (4) Projects to desalinate brackish and ocean water. (5) Stormwater capture and reuse. (d) Projects that improve Delta water quality, restore ecosystems, protect fish populations, and increase community sustainability. (e) Projects that reduce the risk of levee failure and flood in the Delta. (f) Projects to protect and restore watersheds and urban rivers, and address water quality deficiencies at state parks. (g) Projects to develop additional water storage, both surface and groundwater storage, through the following: (1) New surface storage projects. (2) Groundwater storage projects and groundwater contamination prevention or remediation projects that create additional groundwater storage capacity. (3) Projects that restore the capacity of reservoirs currently impaired by sediment buildup, seismic vulnerability, or other impairment. CHAPTER 3. DEFINITIONS 79710. Unless the context otherwise requires, the definitions set forth in this section govern the construction of this division, as follows: (a) "Commission" means the California Water Commission. (b) "Committee" means the  Safe Drinking Water, Water Quality, and Water Supply Finance Committee created by Section 79824   director and the chair of the state board  . (c) "Delta" means the Sacramento-San Joaquin Delta as defined in Section 85058. (d) "Delta counties" means Contra Costa, Sacramento, San Joaquin, Solano, and Yolo counties. (e) "Department" means the Department of Water Resources. (f) "Director" means the Director of Water Resources. (g) "Disadvantaged community" has the same meaning as set forth in subdivision (a) of Section 79505.5.  (h) "Finance committee" means the Safe Drinking Water, Water Quality, and Water Supply Finance Committee created by Section 79824.   (h)   (i)  "Fund" means the Safe Drinking Water, Water Quality, and Water Supply Fund of 2014 created by Section 79770.  (j) "Initial operation and maintenance costs" mean those initial, eligible, reimbursable costs under a construction funding agreement that are incurred up to, and including, initial startup testing of the constructed project in order to deem the project complete.   (i)   (k)  "Integrated regional water management plan" means a comprehensive plan for a defined geographic area that meets the requirements of Part 2.2 (commencing with Section 10530) of Division 6, as that part may be amended.  (l) "Interim" means the limited period of time needed to address the identified urgent need for safe drinking water, not to exceed three years.   (j)   (m)  "Local match" and "matching funds" mean funds made available by nonstate sources, which may include, but are not limited to, donated services from nonstate sources.  (k)   (n)  "Nonprofit organization" means an organization qualified to do business in California and qualified under Section 501(c)(3) of Title 26 of the United States Code.  (l)   (o)  "Public agency" means a state agency or department, public water system, special district, joint powers authority, city, county, city and county, or other political subdivision of the state.  (m)   (p)  "Secretary" means the Secretary of the Natural Resources Agency.  (n)   (q)  "Severely disadvantaged community" has the same meaning as set forth in subdivision (n) of Section 116760.20 of the Health and Safety Code.  (r) "Small water system" means a public water system that serves 15 or more service connections but not more than 3,000 persons and regularly serves drinking water to more than an average of 25 individuals daily for more than 60 days out of the year.   (o)   (s)  "State board" means the State Water Resources Control Board.  (p)   (t)  "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).  (u) "State small water system" means a public water system that serves at least five, but no more than 14, service connections and does not regularly serve drinking water to more than an average of 25 individuals daily for more than 60 days out of the year.  CHAPTER 4. SAFE DRINKING WATER AND WATER QUALITY PROJECTS 79720. (a) It is the intent of the Legislature that this chapter provide funds to address the most critical water needs of the state, including the provision of safe drinking water to all Californians by improving safe drinking water supply reliability and financing urgent public health emergency actions to ensure safe drinking water supplies, and implementing wastewater treatment projects to keep contaminants out of rivers, lakes, streams, groundwater, and coastal waters. (b) The sum of nine hundred million dollars ($900,000,000) shall be available for the purposes of this chapter. 79722. (a) From the funds described in Section 79720, four hundred million dollars ($400,000,000) shall be available to the state board for grants and loans for public water system infrastructure improvements and related actions to meet  primary or secondary  safe drinking water standards  or contaminants identified by the state or federal government for development of a primary or secondary drinking water standard  and ensure affordable drinking water. Priority shall be given to projects that provide treatment for contamination or access to alternative drinking water sources for small water systems or state small water systems serving disadvantaged communities whose drinking water source is impaired by chemical and nitrate contaminants and other health hazards identified by the state board. Eligible recipients either operate small water systems or state small water systems in disadvantaged communities. The state board may make grants for the purpose of financing feasibility studies and to meet the eligibility requirements for a construction grant. Eligible expenses may include initial operation and maintenance costs for systems serving disadvantaged communities. Special consideration will be given to projects that provide shared solutions for multiple communities, at least one of which is a disadvantaged community served by a small or state small water system or private well and that lacks safe, affordable drinking water. Construction grants shall be limited to five million dollars ($5,000,000) per project, except that the state board may set a limit of not more than twenty million dollars ($20,000,000) for projects that provide regional or shared solutions among multiple entities, at least one of which is a small disadvantaged community. Not more than 25 percent of a grant may be awarded in advance of actual expenditures. (b) The state board may expend up to twenty-five million dollars ($25,000,000) of the funds allocated in subdivision  (b)   (a)  for technical assistance to eligible communities. (c) At least 10 percent of the funds available pursuant to this section shall be allocated for projects serving severely disadvantaged communities. (d) Of the funds available pursuant to subdivision (c), the state board may expend up to ten million dollars ($10,000,000) to finance development and demonstration of new technologies and related facilities for water contaminant removal and treatment appropriate for use by small water systems and state small water systems.  (e) The state board shall deposit two million five hundred thousand dollars ($2,500,000) of the funds available pursuant to this section into the Drinking Water Capitol Reserve Fund, which is hereby created in the State Treasury. Moneys in the fund, shall be available, upon appropriation by the Legislature and shall be administered by the state board for the purpose of serving as matching funds for small, disadvantaged communities. The state board shall develop criteria to implement this subdivision.   79724. From the funds described in Section 79720, one hundred million dollars ($100,000,000) shall be available to the state board for grants and direct expenditures to finance urgent public health emergency actions to ensure that safe drinking water supplies are available to all Californians. Eligible actions include, but are not limited to, the following: (a) Providing interim water supplies, including, but not limited to, bottled water, where necessary to protect public health. (b) Improvements in existing water systems, including, but not limited to, planning, design, and construction of improvements necessary to resume delivery of safe drinking water. (c) Establishing connections to an adjacent water system. (d) Design, purchase, installation, and operation and maintenance of interim water treatment equipment and systems.   79726.   79723.  (a) From the funds described in Section 79720, four hundred million dollars ($400,000,000) shall be available to the state board for deposit in the  Small Communities Grant Subaccount   State Water Pollution Control Revolving Fund Small Community Grant Fund established by Section 13477.6  for grants for wastewater treatment projects to keep contaminants out of rivers, lakes, streams, groundwater, and coastal waters, and for other projects to protect the public and fish and wildlife from contaminated sources of water. Priority shall be given to projects that serve disadvantaged communities and severely disadvantaged communities, and to projects that address public health hazards. Special consideration shall be given to small communities with limited financial resources. Projects shall include, but not be limited to, projects that identify, plan, design, and implement regional mechanisms to consolidate wastewater systems or provide affordable treatment technologies.  (b) The state board may expend up to ten million dollars ($10,000,000) of the funds allocated in subdivision (a) for technical assistance to eligible communities.   (b)   (   c)  From the funds available pursuant to subdivision (a), twenty million dollars ($20,000,000) shall be allocated to the state board for deposit into the  Private   Domestic  Well and Septic Systems Investment Fund, which is hereby created in the State Treasury. Moneys in the fund shall be available, upon appropriation by the Legislature, for the purpose of providing grants and loans to  private   domestic  well and septic owners to protect drinking water sources and ensure safe and affordable drinking water for all Californians.  The state board shall develop criteria for the allocation of these grants and loans that specifies these are for the benefit of small communities to treat drinking water or protect drinking water from contamination and includes an income threshold equivalent to the definition of a disadvantaged   community.   79724. From the funds described in Section 79720, one hundred million dollars ($100,000,000) shall be available to the state board for grants and direct expenditures to finance urgent actions needed to provide drinking water in disadvantaged and severely disadvantaged communities that lack access to safe drinking water to ensure that safe drinking water supplies are available to all Californians. Grants awarded pursuant to this section shall not exceed two hundred fifty thousand dollars ($250,000). Eligible actions include, but are not limited to, the following: (a) Providing interim water supplies, for a period not to exceed three years, where necessary to protect public health, including the design, purchase, installation, and operation and maintenance of interim water treatment equipment and systems. (b) Improvements in existing water systems, including, but not limited to, design, and construction of improvements necessary to resume delivery of safe drinking water. (c) Establishing connections to an adjacent water system. (d) Urgent wastewater treatment projects in order to prevent the contamination of a drinking water source.   79725. The state board may administer together the funds allocated pursuant to subdivision (b) of Section 79722 and subdivision (b) of Section 79724.   79726. It is the intent of the Legislature that any funds allocated pursuant to this chapter to an investor-owned utility regulated by the Public Utilities Commission or a mutual water company should be for the benefit of the ratepayers or the public and not the investors.   79727. In allocating funds pursuant to this chapter, the state board shall consider a written statement prepared by a local agency formation commission regarding the consolidation or extension of, or other shared solutions for, water or sewer services.  CHAPTER 5. WATER SUPPLY ENHANCEMENT PROJECTS 79730. (a) It is the intent of the Legislature that this chapter provide funds to enhance water supplies and increase water supply reliability. (b) The sum of two billion dollars ($2,000,000,000) shall be available for the purposes of this chapter. 79731. (a) From the funds described in Section 79730, one billion five hundred million dollars ($1,500,000,000) shall be available to the  department   committee  for competitive grants for projects that develop, improve, or implement an adopted integrated regional water management plan consistent with Part 2.2 (commencing with Section 10530) of Division 6, as that part may be amended, and improve the quality or supply of safe drinking water, reduce the amount of water imported to the region, or address any of the following other critical water supply reliability issues: (1) Groundwater clean up or pollution prevention in sources of drinking water. (2) Advanced water treatment technology projects to remove contaminants from drinking water, water recycling, and related projects, such as distribution or groundwater recharge infrastructure. (3) Urban and agricultural water conservation and water use efficiency projects. (4) Water recycling projects. (5) The repair or replacement of aging water management infrastructure in disadvantaged communities. (6) Other integrated water infrastructure projects that address one or more water management activities and improve the reliability or quality of regional water supplies. (b) Projects funded pursuant to this section shall require a local match of not less than 25 percent of project costs, except the  department   committee  may suspend or reduce cost share requirements for projects serving disadvantaged communities or that result in a direct reduction in water imported from the Delta. (c) To be eligible for funding under this section, a region shall comply with the following requirements: (1) Have an adopted integrated regional water management plan. (2) Each urban and agricultural water supplier that would benefit from a project shall adopt and submit an urban or agricultural water management plan in accordance with the Urban Water Management Planning Act (Part 2.6 (commencing with Section 10610) of Division 6) or the Agricultural Water Management Planning Act (Part 2.8 (commencing with Section 10800) of Division 6). Urban or agricultural water management plans shall be certified by the department as meeting the requirements of the Urban Water Management Planning Act or the Agricultural Water Management Planning Act, and Sections 10608.56 and 10631.5, as those provisions may be amended. (3) Each local agency whose service area includes a groundwater basin or subbasin that would benefit from a groundwater management project shall adopt and submit a groundwater management plan in accordance with Part 2.75 (commencing with Section 10750) of Division 6. Groundwater management plans shall be certified by the department as meeting the requirements of Part 2.75 (commencing with Section 10750) of Division 6, as that part may be amended. (4) (A) Have a water budget that describes local and imported water supplies and uses in sufficient detail to inform long-term efforts towards sustainable water management, and, where applicable, include a description of any measures anticipated to reduce the amount of water imported to the region in the future. (B) The department shall develop guidelines for compliance with this paragraph. (5) Where applicable, an integrated water management plan shall be consistent with and implement Section 85021. (d) Where applicable, funding pursuant to this section shall be made available to water agencies to assist in directly reducing the amount of water imported from the Delta. 79732. The California Water Commission shall review the implementation of Section 79731 and shall certify that requirements for grant eligibility pursuant to that section are met prior to the department making final grant awards. 79733. Of the funds available pursuant to Section 79731, one billion four hundred million dollars ($1,400,000,000) shall be allocated to hydrologic regions as identified in the California Water Plan and listed below. For the South Coast Region, the department shall establish three subregions that reflect the San Diego County watersheds, the Santa Ana River watershed, and the Los Angeles-Ventura County watersheds respectively, and allocate funds to those subregions. The North and South Lahontan regions shall be treated as one region for the purpose of allocating funds, but the  department   committee  may require separate regional plans. Funds available pursuant to this section shall be allocated in accordance with the following schedule: (a) North Coast: $65,000,000. (b) San Francisco Bay: $195,000,000. (c) Central Coast: $85,000,000. (d) Los Angeles subregion: $284,000,000. (e) Santa Ana subregion: $174,000,000. (f) San Diego subregion: $138,000,000. (g) Sacramento River: $118,000,000. (h) San Joaquin River: $98,000,000. (i) Tulare/Kern (Tulare Lake): $102,000,000. (j) North/South Lahontan: $74,000,000. (k) Colorado River Basin: $67,000,000. 79734. (a) From the funds described in Section 79731, one hundred million dollars ($100,000,000) shall be available for grants for projects that significantly advance the application and effectiveness of innovative integrated regional water management strategies, including, but not limited to, the following: (1) Tools to model future regional climate change impacts. (2) Groundwater management plans and projects that further sustainable groundwater management. (3) Other projects determined by the department   committee  to advance innovative strategies for the integration of water management. (b) The  department   committee  shall give priority to projects that address groundwater overdraft and related impacts, including, but not limited to, subsidence. 79735. (a) From the funds described in Section 79730, five hundred million dollars ($500,000,000) shall be available to the state board for competitive grants for projects that develop, implement, or improve a stormwater capture and reuse plan consistent with Part 2.3 (commencing with Section 10560) of Division 6, as that part may be amended, and that capture and put to beneficial use stormwater or dry weather runoff. (b) Stormwater capture and reuse projects developed pursuant to an adopted integrated regional water management plan in compliance with Part 2.2 (commencing with Section 10530) of Division 6 are also eligible for funding under this section if those projects were identified and developed in substantive compliance with Part 2.3 (commencing with Section 10560) of Division 6, as those parts may be amended. (c) Projects eligible for funding under this section shall assist in the capture and reuse of stormwater or dry weather runoff. Eligible projects include any of the following: (1) Projects that capture, convey, treat, or put to beneficial use stormwater or dry weather runoff. (2) The development of stormwater capture and reuse plans pursuant to Part 2.3 (commencing with Section 10560) of Division 6, as that part may be amended. (3) Decision support tools, data acquisition, and data analysis to identify and evaluate the benefits and costs of potential stormwater capture and reuse projects. (4) Projects that, in addition to capturing and reusing stormwater or dry weather runoff, improve water quality, provide public benefits, such as augmentation of water supply, flood control, open space and recreation, and projects designed to mimic or restore natural watershed functions. (d) The state board shall grant special consideration to plans or projects that provide multiple benefits such as water quality, water supply, flood control, natural lands, or recreation. (e) The state board shall require a 25-percent local cost share for grant funds, but may suspend or reduce the matching requirements for projects that capture or reuse stormwater or dry weather runoff in disadvantaged communities.  (f) The state board shall adopt a policy establishing criteria for projects funded by this section to ensure that a project funded pursuant to this section complies with water quality laws and does not put at risk any groundwater or surface water supplies.  CHAPTER 6. DELTA 79740. (a) It is the intent of the Legislature that this chapter provide funds to help implement the following: (1) Projects to protect, restore, and enhance the Delta ecosystem in a manner that protects and enhances the unique cultural, recreational, natural resource, and agricultural values of the Delta as an evolving place. (2) Projects to protect the integrity of Delta levees to safeguard the ability to move water through the Delta while simultaneously protecting and enhancing the unique cultural, recreational, natural resource, and agricultural values of the Delta as an evolving place. (b) The sum of one billion two hundred million dollars ($1,200,000,000) shall be available for the purposes of this chapter. 79742. (a) From the funds described in Section 79740, eight hundred million dollars ($800,000,000) shall be available to the Delta Conservancy for water quality, ecosystem restoration, fish protection facilities, and community sustainability projects that benefit the Delta, including, but not limited to, the following: (1) Projects to improve water quality facilities or projects that contribute to improvements in water quality in the Delta, including projects in Delta counties that provide multiple public benefits and improve drinking or agricultural water quality or water supplies. (2) Habitat restoration, conservation, and enhancement projects to improve the condition of special status, at risk, endangered, or threatened species in the Delta and the Delta counties, including projects to eradicate invasive species, and projects that support the beneficial reuse of dredged material for habitat restoration and levee improvements. (3) Projects to assist in preserving economically viable and sustainable agriculture and other economic activities in the Delta, including local infrastructure projects and projects to mitigate the economic and community impacts of any conversion of agricultural land to habitat funded by this section. (4) Multibenefit recycled water projects that improve groundwater management and Delta tributary ecosystems. (5) Scientific studies and assessments that support the Delta Science Program as described in Section 85280 or projects authorized under this section. (b) Of the funds available pursuant to subdivision (a), not less than five hundred million dollars ($500,000,000) shall be made available for purposes of paragraphs (1) and (2) of subdivision (a). 79744. From the funds described in Section 79740, four hundred million dollars ($400,000,000) shall be available to reduce the risk of levee failure and flood in the Delta for any of the following: (a) Local assistance under the Delta levee maintenance subventions program under Part 9 (commencing with Section 12980) of Division 6, as that part may be amended. (b) Special flood protection projects under Chapter 2 (commencing with Section 12310) of Part 4.8 of Division 6, as that chapter may be amended. (c) Levee improvement projects that increase the resiliency of levees within the Delta to withstand earthquake, flooding, or sea level rise. (d) Emergency response and repair projects. CHAPTER 7. WATERSHED AND ECOSYSTEM IMPROVEMENT 79750. (a) It is the intent of the Legislature that this chapter provide funds to protect and restore watersheds and urban rivers, and address water quality deficiencies at state parks. (b) The sum of one billion seven hundred million dollars ($1,700,000,000) shall be available for the purposes of this chapter. 79752. From the funds described in Section 79750, the sum of five hundred million dollars ($500,000,000) shall be available for water quality, river, and watershed protection and restoration projects of statewide importance outside of the Delta. Funds provided by this section shall be allocated according to the following schedule: (a) Two hundred fifty million dollars ($250,000,000) to implement the Klamath Hydroelectric Settlement Agreement. Up to fifty million dollars ($50,000,000) of the funds available pursuant to this subdivision may be made available for restoration projects in California pursuant to the Klamath Basin Restoration Agreement if all of the funds available pursuant to this subdivision are not needed for dam removal projects. (b) One hundred million dollars ($100,000,000) for projects that help fulfill state obligations under the Quantification Settlement Agreement, as defined in subdivision (a) of Section 1 of Chapter 617 of the Statutes of 2002. (c) One hundred million dollars ($100,000,000) for projects that help fulfill state obligations under the San Joaquin River Restoration Settlement, as described in Part I of Subtitle A of Title X of Public Law 111-11. (d) Fifty million dollars ($50,000,000) for projects that help fulfill state obligations under the Tahoe Regional Planning Compact pursuant to Section 66800 of the Government Code. Funds provided by this subdivision shall be approved pursuant to Title 7.42 (commencing with Section 66905) of the Government Code, as those provisions may be amended. 79754. From the funds described in Section 79750, the sum of eight hundred seventy-five million dollars ($875,000,000) shall be available for projects that protect and improve California's watersheds, wetlands, forests, and floodplains. (a) Funds available pursuant to this section shall be allocated as follows: (1) Baldwin Hills Conservancy: $10,000,000. (2) California Tahoe Conservancy: $30,000,000. (3) Coachella Valley Mountains Conservancy: $20,000,000. (4) San Diego River Conservancy: $10,000,000. (5) San Gabriel and Lower Los Angeles Rivers and Mountains Conservancy: $40,000,000. (6) San Joaquin River Conservancy: $20,000,000. (7) Santa Monica Mountains Conservancy: $65,000,000. (8) Sierra Nevada Conservancy: $65,000,000. (9) State Coastal Conservancy: $350,000,000. (10) Wildlife Conservation Board: $215,000,000. (11) California Ocean Protection Council: $50,000,000. (b) Of the funds allocated to the State Coastal Conservancy pursuant to paragraph (9) of subdivision (a), one hundred twenty-five million dollars ($125,000,000) are available as follows: (1) Fifty million dollars ($50,000,000) shall be available for projects that help restore coastal salmonid populations. (2) Seventy-five million dollars ($75,000,000) shall be available for flood control projects on public lands that provide critical flood, water quality, and wetland ecosystem benefits to the San Francisco Bay region. 79755. (a) From the funds described in Section 79750, two hundred fifty million dollars ($250,000,000) shall be available to the secretary for a competitive program to fund multibenefit watershed and urban rivers enhancement projects in urban watersheds, including watersheds that drain to the San Francisco Bay, that increase regional and local water self-sufficiency and that meet at least two or more of the following objectives: (1) Promote groundwater recharge and water reuse. (2) Reduce energy consumption. (3) Use soils, plants, and natural processes to treat runoff. (4) Create or restore native habitat. (5) Increase regional and local resiliency and adaptability to climate change. (b) The program described in subdivision (a) shall be implemented by state conservancies, the Wildlife Conservation Board, or other entities designated by the secretary whose jurisdiction includes urban watersheds. The projects are subject to a plan developed jointly by the conservancies, the Wildlife Conservation Board, or other designated entities in consultation with the secretary. (c) At least 25 percent of the funds available pursuant to this section shall be allocated for projects that benefit disadvantaged communities. (d) Up to 10 percent of the funds available pursuant to this section may be allocated for project planning. 79756. From the funds described in Section 79750, twenty million dollars ($20,000,000) shall be available to the Department of Parks and Recreation to address public health deficiencies in drinking water and wastewater quality at state parks. 79757. (a) From the funds described in Section 79750, thirty million dollars ($30,000,000) shall be available to the state board to fund watershed activities by resource conservation districts. (b) To be eligible for the funding available pursuant to this section, the board of a resource conservation district shall be appointed by the local county board of supervisors. 79758. From the funds described in Section 79750, twenty-five million dollars ($25,000,000) shall be available to the state board for competitive grants for special districts and nonprofit organizations for projects that reduce or manage runoff from agricultural lands for the benefit of surface and groundwater quality. CHAPTER 8. WATER STORAGE PROJECTS 79760. (a) It is the intent of the Legislature that this chapter provide funds to expand the existing capacity to store water in the state. (b) The sum of one billion twenty-five million dollars ($1,025,000,000) shall be available for the purposes of this chapter. 79761. From the funds described in Section 79760, one billion dollars ($1,000,000,000) shall be available to the commission for water storage projects that meet the requirements of this section, including all of the following: (a) Projects shall be selected by the commission through a competitive public process that ranks projects based on the expected public benefits received for public investment. (b) Eligible projects consist only of the following: (1) Surface storage projects identified in the CALFED Bay-Delta Programmatic Record of Decision, dated August 28, 2000, except that projects at Lake Shasta shall not be eligible. (2) Groundwater storage projects and groundwater contamination prevention or remediation projects that create additional groundwater storage capacity. (3) Conjunctive use and reservoir reoperation projects including associated infrastructure. (4) Projects that restore the capacity of reservoirs currently impaired by sediment buildup, seismic vulnerability, or other impairment. (5) Projects that result in a permanent reduction of water exported from the Delta and a transfer of the equivalent water right to instream flow pursuant to Section 1707. Priority shall be given to projects that also result in the permanent elimination of irrigation runoff contributing to salinity in the San Joaquin Valley. (6) Recycled water storage facilities. (c) A project within the Delta watershed shall not be funded unless it provides measurable improvements to the Delta ecosystem. (d) Funds allocated pursuant to this section may be expended solely for the following public benefits: (1) Ecosystem improvements, including, but not limited to, changing timing of diversions, improvement in flow conditions, temperature, or other benefits that contribute to restoration of aquatic ecosystems and native fish and wildlife. (2) Water quality improvements in the Delta or in other river systems that provide significant public trust resources or that clean up and restore groundwater resources. (3) Flood control benefits, including, but not limited to, increases in flood reservation space in existing reservoirs by exchange for existing or increased water storage benefits. (e) The commission, in consultation with the Department of Fish and Wildlife, the state board, and the department, shall develop and adopt, by regulation, methods for quantification and management of public benefits. The regulations shall include priorities and relative environmental value of ecosystem benefits provided by the Department of Fish and Wildlife and the priorities and relative environmental value of water quality benefits as provided by the state board. (f) Funds shall not be expended pursuant to this chapter for the costs of environmental mitigation measures or compliance obligations except for those associated with providing the public benefits as described in subdivision (d). (g) Any project constructed with funds provided by this section shall be subject to Section 11590. 79762. Funds available pursuant to Section 79761 shall not be allocated to a project until the commission approves the project based on the following determinations: (a) The commission has adopted the regulations specified in Section 79761 and specifically quantified and made public the cost of the public benefits associated with the project. (b) The department has entered into a contract with each party that will derive benefits, other than public benefits, from the project that ensures the party will pay its share of the total costs of the project. The benefits available to a party shall be consistent with that party's share of total project costs. (c) The department has entered into a contract with the Department of Fish and Wildlife and the state board, after those agencies have made a finding that the public benefits of the project for which that agency is responsible meet all the requirements of this chapter, to ensure that public contributions of funds pursuant to this chapter achieve the public benefits identified for the project. (d) The commission has held a public hearing for the purposes of providing an opportunity for the public to review and comment on the information required to be prepared pursuant to this section. (e) All of the following conditions are met: (1) Feasibility studies have been completed. (2) The commission has found and determined that the project is feasible, is consistent with all applicable laws and regulations, and will advance the long-term objectives of restoring ecological health and improving water management, including the beneficial uses of the Delta. (3) All environmental documentation has been completed and all other federal, state, and local approvals, certifications, and agreements required to be completed have been obtained. (f) The commission shall submit to the fiscal committees and the appropriate policy committees of the Legislature its findings for each criteria identified in this section for any project funded pursuant to this chapter. 79764. The public benefit cost share of a project funded pursuant to this chapter shall not exceed 50 percent of the total cost of the project. 79766. From the funds described in Section 79760, twenty-five million dollars ($25,000,000) shall be available to the department for studying the feasibility of additional surface storage projects. Funds provided by this section are not available to study the feasibility of any storage project identified in the CALFED Bay-Delta Programmatic Record of Decision, dated August 28, 2000. CHAPTER 9. GENERAL PROVISIONS 79770. The proceeds of bonds issued and sold pursuant to this division shall be deposited in the Safe Drinking Water, Water Quality, and Water Supply Fund of 2014, which is hereby created in the State Treasury. Moneys in the fund shall be available, upon appropriation by the Legislature, in the manner and for the purposes set forth in this division. 79772. An amount that equals not more than 5 percent of the funds allocated for a program pursuant to this division may be used to pay the administrative costs of that program. 79774. Up to 10 percent of funds allocated for each program funded by this division may be used to finance planning and monitoring necessary for the successful design, selection, and implementation of the projects authorized under that program. This section shall not otherwise restrict funds ordinarily used by an agency for "preliminary plans," "working drawings," and "construction" as defined in the annual Budget Act for a capital outlay project or grant project. Water quality monitoring  data  shall be  integrated into the surface water ambient monitoring program   collected and reported to the state board in a manner that is compatible and consistent with surface water monitoring data systems or g   roundwater monitoring data systems  administered by the state board. 79776. Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to the development or implementation of programs or projects authorized or funded under this division other than Chapter 6 (commencing with Section 79760). 79778. (a) Prior to disbursing grants  or loans  pursuant to this division, each state agency that is required to administer a  competitive grant   financial assistance  program under this division shall develop project solicitation and evaluation guidelines. The guidelines may include a limitation on the dollar amount of grants to be awarded.  If the state agency has previously developed and adopted project   solicitation and evaluation guidelines that meet the requirements of this division, it may use those guidelines.  (b) Prior to disbursing  grants   funds pursuant to this division  , the state agency shall conduct  three  public meetings to consider public comments prior to finalizing the guidelines  , as determined to be necessary by the implementing state agency  . The state agency shall publish the draft solicitation and evaluation guidelines on its Internet Web site at least 30 days before  the   any  public meetings.  One meeting shall be conducted at a location in northern California, one meeting shall be conducted at a location in the central valley of California, and one meeting shall be conducted at a location in southern California.  Upon adoption, the state agency shall transmit copies of the guidelines to the fiscal committees and the appropriate policy committees of the Legislature. (c) Projects funded with proceeds from this division shall promote state planning priorities consistent with the provisions of Section 65041.1 of the Government Code and sustainable communities strategies consistent with the provisions of subparagraph (B) of paragraph (2) of subdivision (b) of Section 65080 of the Government Code. (d) To the extent feasible, in implementing Section 79742, the Delta Conservancy shall seek to achieve wildlife conservation objectives through projects on public lands or voluntary projects on private lands. Funds available pursuant to Section 79742 may be used, in consultation with the Department of Fish and Wildlife, for payments to landowners for the creation of measurable habitat improvements or other improvements to the condition of endangered or threatened species. The Delta Conservancy may develop and implement a competitive habitat credit exchange mechanism in order to maximize voluntary landowner participation in projects that provide measurable habitat or species improvements in the Delta. These funds shall not be used to subsidize or decrease the mitigation obligations of any party. (e) In implementing Section 79742, the Delta Conservancy shall coordinate, cooperate, and consult with the city or county in which a grant is proposed to be expended or an interest in real property is proposed to be acquired and with the Delta Protection Commission. Acquisitions pursuant to Section 79742 shall be from willing sellers only. (f) In implementing Section 79742, the Delta Conservancy shall require grantees to demonstrate how local economic impacts, including impacts related to the loss of agricultural lands, will be mitigated. (g) Funds provided by this division shall not be used to acquire land via eminent domain. Funds from this division may be used to acquire property from willing sellers. (h) Restoration and ecosystem protection projects funded by this division shall use the services of the California Conservation Corps or certified community conservation corps, as defined in Section 14507.5 of the Public Resources Code, whenever feasible. (i) It is the intent of the Legislature that California's working agricultural landscapes be preserved wherever possible. To the extent feasible, watershed objectives included in this division should be achieved through use of conservation easements and voluntary landowner participation, including, but not limited to, the use of easements pursuant to Division 10.4 (commencing with Section 10330) and Division 10.2 (commencing with Section 10200) of the Public Resources Code and voluntary habitat credit exchange mechanisms. 79780. It is the intent of the people that: (a) The investment of public funds pursuant to this division result in public benefits. (b) Special consideration be given to projects that employ new or innovative technology or practices, including decision support tools that demonstrate the multiple benefits of integration of multiple jurisdictions, including, but not limited to, water supply, flood control, land use, and sanitation. 79782. The State Auditor shall annually conduct a programmatic review and an audit of expenditures from the fund. The State Auditor shall report its findings annually on or before March 1 to the Governor and the Legislature, and shall make the findings available to the public.  79783. Funds provided by this division shall be expended in a manner consistent with the applicable regional water quality control plan adopted pursuant to Chapter 4 (commencing with Section 13200) of Division 7 in effect at the time the project is approved.  79784. (a) Funds provided by this division shall not be used to support or pay for the costs of environmental mitigation measures or compliance obligations of any party except as part of the environmental mitigation costs of projects financed by this division. Funds provided by this division may be used for environmental enhancements or other public benefits. (b) Funds provided by this division shall not be expended for the acquisition or transfer of water rights except for a permanent dedication of water approved in accordance with Section 1707 where the state board specifies that the water is in addition to water that is required for regulatory requirements as provided in subdivision (c) of Section 1707. The requirement that a dedication of water be permanent shall not preclude the expenditure of funds provided by this division for the initiation of the dedication as a short-term or temporary urgency change, that is approved in accordance with Section 1707 and either Chapter 6.6 (commencing with Section 1435) of, or Chapter 10.5 (commencing with Section 1725) of, Part 2 of Division 2, during the period required to prepare any environmental documentation and for approval of permanent dedication. 79786. Funds provided by this division shall not be expended to pay costs associated with design, construction, operation, maintenance, or mitigation of new Delta conveyance facilities. 79788. The Legislature may enact legislation necessary to implement programs funded by this division. 79790. Eligible applicants under this division are public agencies, nonprofit organizations, public utilities, mutual water companies, and Indian tribes having a federally recognized governing body carrying out substantial governmental duties in, and powers over, any area. To be eligible for funding under this division, a project proposed by a public utility that is regulated by the Public Utilities Commission or a mutual water company shall have a clear and definite public purpose and shall benefit the customers of the water system. 79792. (a) This division does not diminish, impair, or otherwise affect in any manner whatsoever any area of origin, watershed of origin, county of origin, or any other water rights protections, including, but not limited to, rights to water appropriated prior to December 19, 1914, provided under the law. This division does not limit or otherwise affect the application of Article 1.7 (commencing with Section 1215) of Chapter 1 of Part 2 of Division 2, Sections 10505, 10505.5, 11128, 11460, 11461, 11462, and 11463, and Sections 12200 to 12220, inclusive. (b) For the purposes of this division, an area that utilizes water that has been diverted and conveyed from the Sacramento River hydrologic region, for use outside the Sacramento River hydrologic region or the Delta, shall not be deemed to be immediately adjacent thereto or capable of being conveniently supplied with water therefrom by virtue or on account of the diversion and conveyance of that water through facilities that may be constructed for that purpose after January 1, 2014. (c) Nothing in this division supersedes, limits, or otherwise modifies the applicability of Chapter 10 (commencing with Section 1700) of Part 2 of Division 2, including petitions related to any new conveyance constructed or operated in accordance with Chapter 2 (commencing with Section 85320) of Part 4 of Division 35. (d) Unless otherwise expressly provided, nothing in this division supersedes, reduces, or otherwise affects existing legal protections, both procedural and substantive, relating to the state board's regulation of diversion and use of water, including, but not limited to, water right priorities, the protection provided to municipal interests by Sections 106 and 106.5, and changes in water rights. Nothing in this division expands or otherwise alters the state board' s existing authority to regulate the diversion and use of water or the courts' existing concurrent jurisdiction over California water rights. (e) Nothing in this division limits or otherwise affects the application of Chapter 2 (commencing with Section 85320) of Part 4 of Division 35. (f) Nothing in this division shall be construed to affect the California Wild and Scenic Rivers Act (Chapter 1.4 (commencing with Section 5093.50) of Division 5 of the Public Resources Code) and funds available pursuant to this division shall not be available for any project that could have an adverse effect on the free flowing condition of a wild and scenic river or any other river afforded protections pursuant to the California Wild and Scenic Rivers Act. CHAPTER 10. FISCAL PROVISIONS 79820. (a) Bonds in the total amount of six billion eight hundred twenty-five million dollars ($6,825,000,000), or so much thereof as is necessary, not including the amount of any refunding bonds issued in accordance with Section 79840 may be issued and sold to provide a fund to be used for carrying out the purposes expressed in this division and to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of the Government Code. The bonds, when sold, shall be and constitute a valid and binding obligation of the State of California, and the full faith and credit of the State of California is hereby pledged for the punctual payment of both principal of, and interest on, the bonds as the principal and interest become due and payable. (b) The Treasurer shall sell the bonds authorized by the  finance  committee pursuant to this section. The bonds shall be sold upon the terms and conditions specified in a resolution to be adopted by the  finance  committee pursuant to Section 16731 of the Government Code. 79822. The bonds authorized by this division shall be prepared, executed, issued, sold, paid, and redeemed as provided in the State General Obligation Bond Law (Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2 of the Government Code), and all of the provisions of that law apply to the bonds and to this division and are hereby incorporated in this division as though set forth in full in this division, except subdivisions (a) and (b) of Section 16727 of the Government Code. 79824. (a) Solely for the purpose of authorizing the issuance and sale pursuant to the State General Obligation Bond Law (Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2 of the Government Code) of the bonds authorized by this division, the Safe Drinking Water, Water Quality, and Water Supply Finance Committee is hereby created. For purposes of this division, the Safe Drinking Water, Water Quality, and Water Supply Finance Committee is "the committee" as that term is used in the State General Obligation Bond Law. The  finance  committee consists of the Director of Finance, the Treasurer, the Controller, the Director of Water Resources, and the Secretary of the Natural Resources Agency, or their designated representatives. The Treasurer shall serve as chairperson of the  finance  committee. A majority of the  finance  committee may act for the  finance  committee. (b) For purposes of the State General Obligation Bond Law, the Department of Water Resources is designated the "board." 79826. The  finance  committee shall determine whether or not it is necessary or desirable to issue bonds authorized pursuant to this division in order to carry out the actions specified in this division and, if so, the amount of bonds to be issued and sold. Successive issues of bonds may be authorized and sold to carry out those actions progressively, and it is not necessary that all of the bonds authorized to be issued be sold at any one time. 79828. There shall be collected each year and in the same manner and at the same time as other state revenue is collected, in addition to the ordinary revenues of the state, a sum in an amount required to pay the principal of, and interest on, the bonds each year. It is the duty of all officers charged by law with any duty in regard to the collection of the revenue to do and perform each and every act that is necessary to collect that additional sum. 79830. 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 necessary to carry out Section 79832, appropriated without regard to fiscal years. 79832. For the purposes of carrying out this division, the Director of Finance may authorize the withdrawal from the General Fund of an amount not to exceed the amount of the unsold bonds that have been authorized by the  finance  committee to be sold for the purpose of carrying out this division less any amount borrowed pursuant to Section 79838. Any amounts withdrawn shall be deposited in the fund. Any  money   moneys  made available under this section shall be returned to the General Fund from proceeds received from the sale of bonds for the purpose of carrying out this division. 79834. All  money   moneys  deposited in the fund that  is   are  derived from premium and accrued interest on bonds sold shall be reserved in the fund and shall be available for transfer to the General Fund as a credit to expenditures for bond interest, except that amounts derived from premium may be reserved and used to pay the cost of bond issuance prior to any transfer to the General Fund. 79836. Pursuant to Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2 of the Government Code, the cost of bond issuance shall be paid out of the bond proceeds, including premium, if any. To the extent the cost of bond issuance is not paid from premiums received from the sale of bonds, the cost shall be shared proportionally by each program funded through this division by the applicable bond sale. 79838. The board may request the Pooled Money Investment Board to make a loan from the Pooled Money Investment Account, in accordance with Section 16312 of the Government Code for the purpose of carrying out this division less any amount withdrawn pursuant to Section 79832. The amount of the request shall not exceed the amount of the unsold bonds that the  finance  committee, by resolution, has authorized to be sold for the purpose of carrying out this division. The board shall execute any documents required by the Pooled Money Investment Board to obtain and repay the loan. Any amounts loaned shall be deposited in the fund to be allocated in accordance with this division. 79840. The bonds issued and sold pursuant to this division may be refunded in accordance with Article 6 (commencing with Section 16780) of Chapter 4 of Part 3 of Division 4 of Title 2 of the Government Code, which is a part of the State General Obligation Bond Law. Approval by the voters of the state for the issuance of the bonds under this division shall include the approval of the issuance of any bonds issued to refund any bonds originally issued under this division or any previously issued refunding bonds. 79842. Notwithstanding any other provision of this division, or of the State General Obligation Bond Law, if the Treasurer sells bonds pursuant to this division that include a bond counsel opinion to the effect that the interest on the bonds is excluded from gross income for federal tax purposes, under designated conditions or is otherwise entitled to any federal tax advantage, the Treasurer may maintain separate accounts for the investment of bond proceeds and for the investment of earnings on those proceeds. The Treasurer 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 required or desirable under federal law 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. 79844. The proceeds from the sale of bonds authorized by this division are not "proceeds of taxes" as that term is used in Article XIII B of the California Constitution, and the disbursement of these proceeds is not subject to the limitations imposed by that article. SEC. 3. The Legislature may appropriate funds from any of the following sources for grants and direct expenditures to accomplish the purposes of Chapter 5 (commencing with Section 79730) of Division 26.7 of the Water Code: (a) Notwithstanding the Water Conservation and Water Quality Bond Law of 1986, the 1986 Water Conservation and Water Quality Bond Fund created pursuant to Section 13453 of the Water Code. (b) Notwithstanding the Water Conservation Bond Law of 1988, the 1988 Water Conservation Fund created pursuant to Section 12879.3 of the Water Code. (c) Notwithstanding the Safe, Clean, Reliable Water Supply Act of 1996, the Safe, Clean, Reliable Water Supply Fund created pursuant to Section 78505 of the Water Code and any accounts therein. (d) Notwithstanding the Costa-Machado Water Act of 2000, the Safe Drinking Water, Clean Water, Watershed Protection, and Flood Protection Bond Fund created pursuant to Section 79013 of the Water Code and any accounts therein. SEC. 4. Section 2 of Chapter 3 of the Seventh Extraordinary Session of the Statutes of 2009, as amended by Section 1 of Chapter 74 of the Statues of 2012, is repealed. SEC. 5. Sections 2 and 3 of this act shall be submitted to the voters at the November 4, 2014, statewide general election in accordance with provisions of the Government Code and the Elections Code governing the submission of a statewide measure to the voters. SEC. 6. Sections 2 and 3 of this act shall take effect upon the approval by the voters of the Safe Drinking Water, Water Quality, and Water Supply Act of 2014, as set forth in that section at the November 4, 2014, statewide general election. SEC. 7. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: In order to fund safe drinking water, water quality, and water supply at the earliest possible date, it is necessary that this act take effect immediately.