California Senate Bill SB927 Latest Draft

 BILL NUMBER: SB 927INTRODUCED BILL TEXT INTRODUCED BY Senators Cannella and Vidak JANUARY 29, 2014 An act to amend Sections 79700, 79702, 79716, 79720, 79720.1, 79720.4, 79721, 79722, 79732, 79744, 79745, 79747, 79749.5, 79770, and 79810 of, to amend the heading of Division 26.7 (commencing with Section 79700) of, to repeal Sections 79720.6 and 79824 of, and to repeal Chapter 9 (commencing with 79750) of Division 26.7 of, the Water Code, relating to the Safe, Clean, and Reliable Drinking Water Supply Act of 2014, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST SB 927, as introduced, Cannella. Safe, Clean, and Reliable Drinking Water Supply Act of 2014. 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. The bond act, among other things, makes specified amounts available for projects relating to drought relief, water supply reliability, ecosystem and watershed protection and restoration, and emergency and urgent actions that ensure safe drinking water supplies are available in disadvantaged communities and economically distressed areas. Existing law provides for the submission of the bond act to the voters at the November 4, 2014, statewide general election. This bill would rename the bond act as the Safe, Clean, and Reliable Drinking Water Supply Act of 2014 and make conforming changes. The bill would instead authorize the issuance of bonds in the amount of $9,217,000,000 by reducing the amount available for projects related to drought relief and water supply reliability, as specified. The bill would remove the authorization for funds to be available for ecosystem and watershed protection and restoration projects, and would increase the amount of funds available for emergency and urgent actions to ensure safe drinking water supplies in disadvantaged communities and economically distressed areas. 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. The heading of Division 26.7 (commencing with Section 79700) of the Water Code, as amended by Section 1 of Chapter 126 of the Statutes of 2010, is amended to read: DIVISION 26.7. THE SAFE, CLEAN, AND RELIABLE DRINKING WATER SUPPLY ACT OF  2012   2014  SEC. 2. Section 79700 of the Water Code, as amended by Section 2 of Chapter 126 of the Statutes of 2010, is amended to read: 79700. This division shall be known, and may be cited, as the Safe, Clean, and Reliable Drinking Water Supply Act of  2012   2014  . SEC. 3. Section 79702 of the Water Code, as amended by Section 3 of Chapter 126 of the Statutes of 2010, is amended to read: 79702. Unless the context otherwise requires, the definitions set forth in this section govern the construction of this division, as follows: (a) "Bay Delta Conservation Plan" means the final plan prepared pursuant to the planning agreement regarding the Bay Delta Conservation Plan, dated October 6, 2006. (b) "Bay-Delta Estuary" means the Delta, Suisun Bay, and Suisun Marsh. (c) "CALFED Bay-Delta Program" means the program described in the Record of Decision dated August 28, 2000. (d) "Commission" means the California Water Commission. (e) "Committee" means the Safe, Clean, and Reliable Drinking Water Supply Finance Committee created by Section 79812. (f) "Delta" means the Sacramento-San Joaquin Delta, as defined in Section 12220. (g) "Delta conveyance facilities" means facilities that convey water directly from the Sacramento River to the State Water Project or the federal Central Valley Project pumping facilities in the south Delta. (h) "Delta counties" means the Counties of Solano, Yolo, Sacramento, Contra Costa, and San Joaquin. (i) "Delta Plan" has the meaning set forth in Section 85059. (j) "Department" means the Department of Water Resources. (k) "Director" means the Director of Water Resources. (l) "Disadvantaged community" has the meaning set forth in subdivision (a) of Section 79505.5. (m) "Economically distressed area" means a municipality with a population of 20,000 persons or less, a rural county, or a reasonably isolated and divisible segment of a larger municipality where the segment of the population is 20,000 persons or less, with an annual median household income that is less than 85 percent of the statewide median household income, and with one or more of the following conditions as determined by the department: (1) Financial hardship. (2) Unemployment rate at least 2 percent higher than the statewide average. (3) Low population density. (n) "Fund" means the Safe, Clean, and Reliable Drinking Water Supply Fund of  2012   2014  created by Section 79716. (o) "Integrated regional water management plan" has the meaning set forth in Section 10534. (p) "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. (q) "Public agency" means a state agency or department, district, joint powers authority, city, county, city and county, or other political subdivision of the state. (r) "Secretary" means the Secretary of the Natural Resources Agency. (s) "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). SEC. 4. Section 79716 of the Water Code, as amended by Section 4 of Chapter 126 of the Statutes of 2010, is amended to read: 79716. The proceeds of bonds issued and sold pursuant to this division shall be deposited in the Safe, Clean, and Reliable Drinking Water Supply Fund of  2012   2014  , which is hereby created in the State Treasury. SEC. 5. Section 79720 of the Water Code, as added by Section 1 of Chapter 3 of the Seventh Extraordinary Session of the Statutes of 2009, is amended to read: 79720. The sum of  four hundred fifty-five million dollars ($455,000,000)   three hundred twenty-seven million dollars ($327,000,000)  shall be available, upon appropriation by the Legislature from the fund, for the purposes of this chapter. SEC. 6. Section 79720.1 of the Water Code, as added by Section 1 of Chapter 3 of the Seventh Extraordinary Session of the Statutes of 2009, is amended to read: 79720.1. (a) From the funds described in Section 79720,  one hundred ninety million dollars ($190,000,000)   ninety million dollars ($90,000,000)  shall be available, upon appropriation by the Legislature from the fund, for the planning, design, and construction of local and regional drought relief projects that reduce the impacts of drought conditions, including, but not limited to, the impacts of reductions in Delta diversions. Eligible projects include all of the following: (1) Water conservation and efficiency projects, including installation of the most water efficient fixtures commercially available. (2) Water recycling and related infrastructure. (3) Groundwater cleanup. (4) Local and regional conveyance projects that improve water supplies and public benefits associated with conveyance facilities. (5) Other local and regional water supply reliability projects. (6) Local and regional surface water storage projects that provide emergency water supplies and water supply reliability in drought conditions. (b) Projects funded pursuant to this section shall meet both of the following requirements: (1) The project will provide a sustainable water supply that does not contribute to groundwater overdraft or increase surface water diversions. (2) The project is capable of being operational within two years of receiving the grant. (c) Preference shall be given to applicants that can demonstrate substantial past and current investments in conservation and local water projects. (d) Not more than 10 percent of the funds provided pursuant to this section shall be available for planning, investigations, studies, and monitoring. (e) The department shall require a cost share of not less than 50 percent of total project costs from nonstate sources. The department may waive or reduce the cost-sharing requirement for projects that directly benefit disadvantaged communities or economically distressed areas.  (f) From the funds described in this section, the sum of one hundred million dollars ($100,000,000) shall be made available for local and regional water projects, including surface storage projects, that provide emergency water supplies and water supply reliability in drought conditions in San Diego County.  SEC. 7. Section 79720.4 of the Water Code, as added by Section 1 of Chapter 3 of the Seventh Extraordinary Session of the Statutes of 2009, is amended to read: 79720.4.  (a)    From the funds described in Section 79720,  eighty million dollars ($80,000,000)   seventy-two million dollars ($72,000,000)  shall be available for deposit into the Safe Drinking Water State Revolving Fund created pursuant to Section 116760.30 of the Health and Safety Code.  (b) From the funds described in this section, up to eight million dollars ($8,000,000) shall be made available for grants for projects within the City of Maywood that design and implement water supply infrastructure upgrades that provide for safe drinking water.  SEC. 8. Section 79720.6 of the Water Code, as added by Section 1 of Chapter 3 of the Seventh Extraordinary Session of the Statutes of 2009, is repealed.  79720.6. From the funds described in Section 79720, the sum of twenty million dollars ($20,000,000) shall be available for water quality and public health projects on the New River.  SEC. 9. Section 79721 of the Water Code, as added by Section 1 of Chapter 3 of the Seventh Extraordinary Session of the Statutes of 2009, is amended to read: 79721. The sum of  one billion fifty million dollars ($1,050,000,000)   one billion forty million dollars ($1,040,000,000)  shall be available, upon appropriation by the Legislature, from the fund to the department for competitive grants and expenditures in accordance with Section 79722. SEC. 10. Section 79722 of the Water Code, as added by Section 1 of Chapter 3 of the Seventh Extraordinary Session of the Statutes of 2009, is amended to read: 79722. (a) Except as provided in subdivision (f), the department shall award grants to eligible projects that implement an adopted integrated regional water management plan. (b) An urban water supplier that does not prepare, adopt, and submit its urban water management plan in accordance with the Urban Water Management Planning Act (Part 2.6 (commencing with Section 10610) of Division 6) is ineligible to receive funds made available pursuant to Section 79721 until the urban water management plan is prepared and submitted in accordance with the requirements of that act. (c) For the purposes of awarding a grant under this chapter, the department shall require a local cost share of not less than 50 percent of the total costs of the project. The department may waive or reduce the cost-sharing requirement for projects that directly benefit a disadvantaged community or an economically distressed area. (d) Eligible projects are those included in adopted integrated regional water management plans consistent with Part 2.2 (commencing with Section 10530) of Division 6, including, but not limited to, local and regional surface water storage projects. (e) The funding provided in Section 79721 shall be allocated to each hydrologic region as identified in the California Water Plan in accordance with this subdivision. For the South Coast hydrologic region, the department shall establish three funding areas that reflect the watersheds of San Diego County (designated as the San Diego subregion), the Santa Ana River watershed and southern Orange County (designated as the Santa Ana subregion), and the Los Angeles and Ventura County watersheds (designated as the Los Angeles subregion), and shall allocate funds to those areas in accordance with this subdivision. The North and South Lahontan hydrologic regions shall be treated as one area for the purpose of allocating funds. For purposes of this subdivision, the Sacramento River hydrologic region does not include the Delta. For purposes of this subdivision, the Mountain Counties Overlay is not eligible for funds from the Sacramento River hydrologic region or the San Joaquin River hydrologic region. The department may recognize multiple integrated regional water management plans in each of the areas allocated funding. Funds made available by this chapter shall be allocated as follows: (1) North Coast: $45,000,000. (2) San Francisco Bay: $132,000,000. (3) Central Coast: $58,000,000. (4) Los Angeles subregion: $198,000,000. (5) Santa Ana subregion: $128,000,000. (6) San Diego subregion: $87,000,000. (7) Sacramento River: $76,000,000. (8) San Joaquin River: $64,000,000. (9) Tulare/Kern: $70,000,000. (10) North/South Lahontan: $51,000,000. (11) Colorado River Basin: $47,000,000. (12) Mountain Counties Overlay: $44,000,000. (13) Interregional:  $50,000,000  $40,000,000  . (f) Interregional funds may be expended directly or granted by the department to address multiregional needs or state priorities, including, but not limited to, any of the following: (1) Investing in new water technology development and deployment. (2) Meeting state water recycling and water conservation goals. (3) Adapting to climate change impacts. (4) Reducing contributions to climate change. (5) Other projects to improve statewide water management systems. (6) Other projects and activities designed to meet the needs of disadvantaged communities or economically distressed areas including technical and grant writing assistance.  (g) Ten million dollars of the interregional funds shall be available for a grant to the University of California, Sierra Nevada Research Institute of the University of California, for the development and deployment of measurement infrastructure and related information technology to identify and analyze water supply impacts of climate change on the Sierra Nevada snow pack and runoff.  SEC. 11. Section 79732 of the Water Code, as added by Section 1 of Chapter 3 of the Seventh Extraordinary Session of the Statutes of 2009, is amended to read: 79732. (a) A project that receives funding pursuant to subdivision (a) of Section 79731 shall only be eligible for funding pursuant to other provisions of this division to the extent that the combined state funding pursuant to this division does not exceed 50 percent of the total project costs. (b) The department shall determine what  consitututes   constitutes  a project for the purposes of subdivision (a). SEC. 12. Section 79744 of the Water Code, as added by Section 1 of Chapter 3 of the Seventh Extraordinary Session of the Statutes of 2009, is amended to read: 79744. In consultation with the Department of Fish and  Game   Wildlife  , the State Water Resources Control Board, and the department, the commission shall develop and adopt, by regulation, methods for quantification and management of public benefits described in Section 79743 by December 15,  2012   2014  . The regulations shall include the priorities and relative environmental value of ecosystem benefits as provided by the Department of Fish and  Game   Wildlife  and the priorities and relative environmental value of water quality benefits as provided by the State Water Resources Control Board. SEC. 13. Section 79745 of the Water Code, as added by Section 1 of Chapter 3 of the Seventh Extraordinary Session of the Statutes of 2009, is amended to read: 79745. (a) Except as provided in subdivision (c)  , no  funds allocated pursuant to this chapter  may   shall not  be allocated for a project before December 15,  2012,   2015,  and until the commission approves the project based on the commission's determination that all of the following have occurred: (1) The commission has adopted the regulations specified in Section 79744 and specifically quantified and made public the cost of the public benefits associated with the project. (2) The department has entered into a contract with each party that will derive benefits, other than public benefits, as defined in Section 79743, from the project that ensures the party will pay its share of the total costs of the project. The benefits available to a party shall be consistent with that party's share of total project costs. (3) The department has entered into a contract with each public agency identified in Section 79744 that administers the public benefits, after that agency makes a finding that the public benefits of the project for which that agency is responsible meet all the requirements of this chapter, to ensure that the public contribution of funds pursuant to this chapter achieves the public benefits identified for the project. (4) The commission has held a public hearing for the purposes of providing an opportunity for the public to review and comment on the information required to be prepared pursuant to this subdivision. (5) All of the following additional conditions are met: (A) Feasibility studies have been completed. (B) The commission has found and determined that the project is feasible, is consistent with all applicable laws and regulations, and will advance the long-term objectives of restoring ecological health and improving water management for beneficial uses of the Delta. (C) All environmental documentation associated with the project has been completed, and all other federal, state, and local approvals, certifications, and agreements required to be completed have been obtained. (b) The commission shall submit to the Legislature its findings for each of the criteria identified in subdivision (a) for a project funded pursuant to this chapter. (c) Notwithstanding subdivision (a), funds may be made available under this chapter for the completion of environmental documentation and permitting of a project. SEC. 14. Section 79747 of the Water Code, as added by Section 1 of Chapter 3 of the Seventh Extraordinary Session of the Statutes of 2009, is amended to read: 79747. (a) A project is not eligible for funding under this chapter unless, by January 1,  2018,   2020,  all of the following conditions are met: (1) All feasibility studies are complete and draft environmental documentation is available for public review. (2) The commission makes a finding that the project is feasible, and will advance the long-term objectives of restoring ecological health and improving water management for beneficial uses of the Delta. (3) The director receives commitments for not less than 75 percent of the nonpublic benefit cost share of the project. (b) If compliance with subdivision (a) is delayed by litigation or failure to promulgate regulations, the date in subdivision (a) shall be extended by the commission for a time period that is equal to the time period of the delay, and funding under this chapter that has been dedicated to the project shall be encumbered until the time at which the litigation is completed or the regulations have been promulgated. SEC. 15. Section 79749.5 of the Water Code, as amended by Section 6 of Chapter 126 of the Statutes of 2010, is amended to read: 79749.5. (a) In approving the Safe, Clean, and Reliable Drinking Water Supply Act of  2012  2014  , the people were informed and hereby declare that the provisions of this chapter are necessary, integral, and essential to meeting the single object or work of the Safe, Clean, and Reliable Drinking Water Supply Act of  2012   2014  . As such, any amendment of the provisions of this chapter by the Legislature without voter approval would frustrate the scheme and design that induced voter approval of this act. The people therefore find and declare that any amendment of the provisions of this chapter by the Legislature shall require a vote of two-thirds of the membership in each house of the Legislature and voter approval. (b) This section shall not govern or be used as authority for determining whether the amendment of any other provision of this act not contained in this chapter would constitute a substantial change in the scheme and design of this act requiring voter approval. SEC. 16. Chapter 9 (commencing with Section 79750) of Division 26.7 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. 17. Section 79770 of the Water Code, as amended by Section 1 of Chapter 226 of the Statutes of 2010, is amended to read: 79770. (a) The sum of one billion dollars ($1,000,000,000) shall be available, upon appropriation by the Legislature from the fund, for expenditures, grants, and loans for projects to prevent or reduce the contamination of groundwater that serves as a source of drinking water. Projects shall be consistent with an adopted integrated regional water management plan. Funds appropriated pursuant to this section shall be available to the State Department of Public Health for projects necessary to protect public health by preventing or reducing the contamination of groundwater that serves as a major source of drinking water for a community. (b) Projects shall be prioritized based upon the following criteria: (1) The threat posed by groundwater contamination to the affected community's overall drinking water supplies, including the need for treatment of alternative supplies if groundwater is not available due to contamination. (2) The potential for groundwater contamination to spread and reduce drinking water supply and water storage for nearby population areas. (3) The potential of the project, if fully implemented, to enhance local water supply reliability. (4) The potential of the project to increase opportunities for groundwater recharge and optimization of groundwater supplies. (c) The State Department of Public Health shall give additional consideration to projects that meet any of the following criteria: (1) The project is implemented pursuant to a comprehensive basinwide groundwater quality management and remediation plan or is necessary to develop a comprehensive groundwater plan. (2) Affected groundwater provides a local supply that, if contaminated and not remediated, will require import of additional water from outside the region. (3) The project will serve an economically disadvantaged community or an economically distressed area. (4) The project addresses contamination at a site where the responsible parties have not been identified or where the responsible parties are unwilling or unable to pay for cleanup. (d) Of the amount made available by this section, not less than one hundred million dollars ($100,000,000) shall be available for costs associated with projects, programs, or activities that meet the requirements of this section and both of the following criteria: (1) The costs are part of a basinwide management and remediation plan for which federal funds have been allocated. (2) The costs address contamination at a site on the list maintained by the Department of Toxic Substances Control pursuant to Section 25356 of the Health and Safety Code or a site listed on the National Priorities List pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. Sec. 9601 et seq.). (e) Of the amount made available by this section,  one hundred million dollars ($100,000,000)   four hundred million dollars ($400,000,000)  shall be available to the State Department of Public  Health   Health, or a successor agency,  for grants and direct expenditures to finance emergency and urgent actions in accordance with this section on behalf of disadvantaged communities and economically distressed areas to ensure that safe drinking water supplies are available to all Californians. (f) The Legislature, by statute, shall establish both of the following: (1) Requirements for repayment of grant funds in the event of cost recovery from parties responsible for the groundwater contamination. (2) Requirements for recipients of grants to make reasonable efforts to recover costs from parties responsible for groundwater contamination. SEC. 18. Section 79810 of the Water Code, as added by Section 1 of Chapter 3 of the Seventh Extraordinary Session of the Statutes of 2009, is amended to read: 79810. (a) Bonds in the total amount of  eleven billion one hundred forty million dollars ($11,140,000,000)   nine billion two hundred seventeen million dollars ($9,217,000,000)  , not including the amount of any refunding bonds issued in accordance with Section 79822, or so much thereof as is necessary, may be issued and sold to provide a fund to be used for carrying out the purposes expressed in this division and to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of the Government Code. The bonds, when sold, shall be and constitute valid and binding obligations of the State of California, and the full faith and credit of the State of California is hereby pledged for the punctual payment of both the principal of, and interest on, the bonds as the principal and interest become due and payable. (b) The Treasurer shall sell the bonds authorized by the committee pursuant to this section. The bonds shall be sold upon the terms and conditions specified in a resolution to be adopted by the committee pursuant to Section 16731 of the Government Code. SEC. 19. Section 79824 of the Water Code, as added by Section 1 of Chapter 3 of the Seventh Extraordinary Session of the Statutes of 2009, is repealed.  79824. Of the eleven billion one hundred forty million dollars ($11,140,000,000) in bonds authorized in this division, no more than five billion five hundred seventy million dollars ($5,570,000,000) shall be sold by the Treasurer before July 1, 2015.  SEC. 20. The Secretary of State shall submit Sections 79700, 79702, 79716, 79720, 79720.1, 79720.4, 79721, 79722, 79732, 79744, 79745, 79747, 79749.5, 79770, and 79810 of, and the heading of Division 26.7 (commencing with Section 79700) of, the Water Code, as amended by this act, in place of those sections and that heading, as added or amended by previous statutes, in order they are voted upon as a part of the Safe, Clean, and Reliable Drinking Water Act of 2014, at the November 4, 2014, statewide general election. The Secretary of State shall not submit Sections 79720.6 and 79824 of, and Chapter 9 (Commencing with Section 79750) of Division 26.7 of, the Water Code, which are repealed by this act. SEC. 21. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: In order to fund a safe, clean, and reliable water supply at the earliest possible date, it is necessary that this act take effect immediately.