Bill Text: CA AB1331 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Clean, Safe, and Reliable Drinking Water Act of 2014.

Spectrum: Partisan Bill (Democrat 19-0)

Status: (Engrossed - Dead) 2014-06-18 - Withdrawn from committee. Re-referred to Com. on RLS. [AB1331 Detail]

Download: California-2013-AB1331-Amended.html

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BILL NUMBER: AB 1331	AMENDED
	BILL TEXT

	AMENDED IN SENATE  SEPTEMBER 11, 2013
	AMENDED IN SENATE  AUGUST 26, 2013
	AMENDED IN ASSEMBLY  MAY 21, 2013
	AMENDED IN ASSEMBLY  APRIL 23, 2013
	AMENDED IN ASSEMBLY  APRIL 1, 2013

INTRODUCED BY    Committee on Water, Parks and Wildlife
  (   Assembly Members Rendon
(Chair), Blumenfield, Bocanegra, Fong, Frazier, Gatto, Gomez, Gray,
and Yamada   )   Assembly Member 
 Rendon 

                        FEBRUARY 22, 2013

   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
climate change response for clean and safe drinking water 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.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1331, as amended,  Committee on Water, Parks and
Wildlife   Rendon  . Climate Change Response for
Clean and Safe Drinking Water Act of 2014.
   (1) Existing law, the Safe, Clean, and Reliable Drinking Water
Supply Act of 2012, 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 Climate Change Response for Clean and
Safe Drinking Water Act of 2014, which, if adopted by the voters,
would authorize the issuance of bonds in the amount of $6,500,000,000
pursuant to the State General Obligation Bond Law to finance a
climate change response for clean and safe drinking water program.
   This bill would provide for the submission of the bond act to the
voters at the November 4, 2014, statewide general election.
   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 Climate Change Response for Clean and Safe
Drinking Water Act of 2014.


      CHAPTER 1.  SHORT TITLE


   79700.  This division shall be known, and may be cited, as the
 Clean and Safe Drinking Water and Climate Change Response
  Climate Change Response for Clean and Safe Drinking
Water  Act of 2014.
      CHAPTER 2.  DEFINITIONS


   79701.  The people of California find and declare all of the
following:
   (a) Safeguarding supplies of clean and safe drinking water to
California's homes, businesses, and farms is an essential
responsibility of government, and critical to protecting the quality
of life for Californians.
   (b) Every Californian should have access to clean, safe, and
reliable drinking water, consistent with the human right to water and
Section 106.3. Providing adequate supplies of clean, safe, and
reliable drinking water is vital to keeping California's economy
growing and strong.
   (c) Climate change has impaired California's capacity to ensure
clean, safe, and reliable drinking water, as droughts have become
more frequent and more severe, and ecosystems have become stressed.
Higher temperatures mean less snow pack, which is the state's largest
water reservoir. Scientists project a loss of at least 25 percent of
the snow pack in the Sierra Nevada Mountains by 2050.  The
Colorado River basin, which provides drinking water to southern
California, has experienced prolonged drought and the federal
government projects a continuing decline in water availability. 

   (d) California's water infrastructure continues to age and
deteriorate. More than 50 years ago, Californians approved the
construction of the State Water Project. In the decades that
followed, California's water leaders developed the most sophisticated
system of state, federal, regional, and local water infrastructure
anywhere in the world. In recent decades, however, that water
infrastructure and the water environment on which it depends have
deteriorated.
   (e) In the years since the voters approved the state water
project, California's population has continued to grow, from less
than 16 million in 1960 to more than 37 million in 2010. A growing
population and a growing economy have put greater stress on
California's natural resources, including water. Contamination of
groundwater aquifers from a vibrant economy has threatened vital
drinking water supplies.  The Department of Finance projects that
California's population will reach 50 million by 2049.  
   (f) A growing population and a growing economy have put greater
stress on California's natural resources, including water.
Contamination of groundwater aquifers from economic activity in the
agricultural and industrial sectors has threatened vital drinking
water supplies.  
   (f) 
    (g)  As California and its water infrastructure have
grown, increasing demands on California's limited water supplies and
deteriorating aquatic ecosystems have led to intense conflict,
further threatening the reliability of clean and safe drinking water.

   79702.  The people of California find and declare all of the
following:
   (a) A sustainable water future can provide the means for
California to maintain vibrant communities, globally competitive
agriculture, and  heathy   healthy 
ecosystems, which are all a part of the quality of life that attracts
so many to live in California.
   (b) Responding to climate change, ensuring clean and safe drinking
water, and preparing for California's continued growth will require
a diversified portfolio of strategies and investments to address the
many water challenges facing California.
   (c) Improving water quality offers one of the most immediate steps
to ensuring a clean and safe drinking water supply. California needs
water quality improvements at all parts of the hydrologic cycle,
from source water in the watersheds where the state's drinking water
supplies originate to wastewater treatment to improve surface water
quality for those who live downstream.
   (d) Addressing the challenges to the sustainability of the Delta,
the heart of the California water system, will help resolve some of
the conflicts that impede progress in improving the statewide water
system.
   (e) Enhancing regional water self-reliance offers a key strategy
for addressing climate change and improving water supply reliability.
It helps the Delta and it helps local communities to address their
own water challenges. Water conservation and water recycling form one
part of the regional water self-reliance strategy and are
commonsense methods to make more efficient use of existing water
supplies.
      CHAPTER 3.  DEFINITIONS


   79703.  Unless the context otherwise requires, the definitions set
forth in this section govern the construction of this division, as
follows:
   (a) "CALFED Bay-Delta Program" means the program described in the
Record of Decision dated August 28, 2000.
   (b) "Commission" means the California Water Commission.
   (c) "Committee" means the Climate Change Response for Clean and
Safe Drinking Water Finance Committee created by Section 79802.
   (d) "Delta" means the Sacramento-San Joaquin Delta, as defined in
Section 85058.
   (e) "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.
   (f) "Delta counties" means the Counties of Solano, Yolo,
Sacramento, Contra Costa, and San Joaquin.
   (g) "Department" means the Department of Water Resources.
   (h) "Director" means the Director of Water Resources.
   (i) "Disadvantaged community" has the meaning set forth in
subdivision (a) of Section 79505.5.
   (j) "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.
   (k) "Fund" means the Climate Change Response for Clean and Safe
Drinking Water Fund of 2014 created by Section 79717.
   (l) "Integrated regional water management plan" has the meaning
set forth in Section 10534.
   (m) "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.
   (n) "Public agency" means a state agency or department, district,
joint powers authority, city, county, city and county, or other
political subdivision of the state.
   (o) "Rainwater" has the meaning set forth in subdivision (c) of
Section 10573. 
   (p) "Severely disadvantaged community" has the meaning set forth
in subdivision (n) of Section 116760.20 of the Health and Safety
Code.  
   (q) "Small community water system" means a community water system
that serves no more than 3,300 service connections or a yearlong
population of no more than 10,000 persons.  
   (p) 
    (  r)  "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). 
   (q)  
   (s) "State small water system" has the meaning set forth in
subdivision (n) of Section 116275 of the Health and Safety Code.

    (   t)  "Stormwater" has the meaning set forth
in subdivision (e) of Section 10573.
      CHAPTER 4.  GENERAL PROVISIONS


   79705.  An amount that equals not more than 5 percent of the funds
allocated for a grant program pursuant to this division may be used
to pay the administrative costs of that program.
   79706.  Up to 10 percent of funds allocated for each program
funded by this division may be expended for 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 shall be integrated into the
surface water ambient monitoring program administered by the State
Water Resources Control Board. Watershed monitoring shall be
integrated into the statewide watershed program administered by the
Department of Conservation.
   79707.  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 9 (commencing with
Section 79760).
   79708.  (a) Prior to disbursing grants or loans pursuant to this
division, each state agency that receives an appropriation from the
funding made available by this division to administer a competitive
grant or loan program under this division shall develop and adopt
project solicitation and evaluation guidelines. The guidelines shall
include monitoring and reporting requirements and may include a
limitation on the dollar amount of grants or loans to be awarded.
   (b) Prior to disbursing grants or loans, the state agency shall
conduct three public meetings to consider public comments prior to
finalizing the guidelines. The state agency shall publish the draft
solicitation and evaluation guidelines on its Internet Web site at
least 30 days before the public meetings. One meeting shall be
conducted at a location in northern California, 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.
   79709.  It is the intent of the people that:
   (a) The investment of public funds pursuant to this division will
result in public benefits  that address the most urgent needs for
public funding  .
   (b) Beneficiaries pay for the benefits they receive from projects
funded pursuant to this division.
   (c) Any relevant statute enacted before voters approve this bond
shall be considered in the appropriation and expenditure of the
funding authorized by this division.
   (d) In the appropriation and expenditure of funding authorized by
this division, priority shall be given to projects that leverage
private, federal, or local funding or produce the greatest public
benefit.
   (e) A funded project advances the purposes of the chapter from
which the project received funding.
   (f) In making decisions regarding water resources, state and local
water agencies use the best available science to inform those
decisions.
   (g) Special consideration will be given to projects that employ
new or innovative technology or practices, including decision support
tools that demonstrate the multiple benefits of integrating multiple
jurisdictions, including, but not limited to, water supply, flood
control, land use, and sanitation. 
   (h) Projects funded with proceeds from this division shall be
consistent with Section 65041.1 of the Government Code and any
adopted, approved sustainable communities strategy consistent with
subparagraph (B) of paragraph (2) of subdivision (b) of Section 65080
of the Government Code. 
   79710.  (a) The California State Auditor shall annually conduct a
programmatic review and an audit of expenditures from the fund.
   (b) Notwithstanding Section 10231.5 of the Government Code, the
California 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. 
   (c) If an audit of a public agency that receives funding
authorized by this division is conducted pursuant to state law and
reveals any impropriety, the California State Auditor or the
Controller may conduct a full audit of any or all of the activities
of the public agency.  
   (d) The state agency issuing any grant or loan with funding
authorized by this division shall require adequate reporting of the
expenditures of the funding from the grant or loan. 
   79711.  Funds provided by this division shall not be expended to
support or pay for the costs of environmental mitigation measures or
 environmental  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.
   79712.  Funds provided by this division shall not be expended to
pay the costs of the design, construction, operation, or maintenance
of Delta conveyance facilities. Those costs shall be the
responsibility of the water agencies that benefit from the design,
construction, operation, or maintenance of those facilities.
   79713.  (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 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 shall be construed to affect any
contract  related to water in any way connected to the Delta
  entered into before January 1, 2013, between the State
of California and one or more of the delta water agencies pursuant
to the authority granted under Chapter 283 of the Statutes of 1973,
Chapter 1089 of the Statutes of 1973, or Chapter 1133 of the Statutes
of 1973, as those chapters may have been amended  .
   (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 authorized 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.
   79714.  Eligible applicants under this division are public
 agencies,   agencies and  nonprofit
 organizations, public utilities, and mutual water companies.
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.
  organization   s. A public agency may use
funding authorized by this division to benefit recipients of water
from public utilities or mutual water companies that operate a public
water system if the funding provides public benefits. 
   79715.  The Legislature may enact legislation necessary to
implement programs funded by this division.
   79716.   (a)    Unless otherwise specified, any
state agency may be eligible for appropriations from the funding made
available by this division. 
   (b) Funds authorized in this division may be expended to pay for
the services of the California Conservation Corps in implementation
of funded projects. 
   79717.  The proceeds of bonds issued and sold pursuant to this
division shall be deposited in the Climate Change Response for Clean
and Safe Drinking Water Fund of 2014, which is hereby created in the
State Treasury.
      CHAPTER 5.  WATER QUALITY AND CLEAN AND SAFE DRINKING WATER


   79720.  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 that improve water
quality or help provide clean and safe drinking water to all
Californians.
   79721.  The projects eligible for funding pursuant to this chapter
shall help improve water quality for  all   a
 beneficial  uses   use  . The
purposes of this chapter are to:
   (a) Reduce contaminants in drinking water supplies regardless of
the source of the water or the contamination, including the
assessment and prioritization of the risk to the safety of drinking
water supplies.
   (b) Address the critical and immediate needs of disadvantaged,
rural, or small communities that suffer from contaminated drinking
water supplies, including, but not limited to, projects that address
a public health emergency.
   (c) Leverage other private, federal, state, and local drinking
water quality and wastewater treatment funds.
   (d) Reduce contaminants in discharges to, and improve the quality
of, surface water streams.
   (e) Improve water quality of surface water streams, including 
multibenefit  stormwater quality  projects  .
   (f) Prevent further contamination of drinking water supplies.
   (g) Provide disadvantaged communities with public drinking water
infrastructure that provides clean and safe drinking water supplies
that the community can sustain over the long term.
   (h) Ensure access to clean  and   , 
safe  , and affordable  drinking water for California's
communities.
   79722.  (a) A project that receives funding under this chapter
shall be selected by a competitive grant or loan process with added
consideration for those projects that leverage private, federal, or
local funding.  Special consideration shall also be given to
a project focused on groundwater clean up.   This
subdivision shall not apply to projects for the purposes of Section
79727 that address a public health priority for which no other source
of funding can be identified. 
   (b) An agency administering grants or loans for the purposes of
this chapter shall assess the capacity of a community to pay for the
operation and maintenance of the facility to be funded. 
   (c) A project that receives funding authorized by this chapter may
be implemented by any public water system or other public water
agency. 
   79723.  An applicant for a project to clean up a groundwater
aquifer shall demonstrate that a public agency has authority to
manage the water resources in that aquifer in order to be eligible
for funding pursuant to this chapter. This section does not apply to
projects that install treatment facilities at the wellhead, customer
connection, or the tap.
   79724.  The contaminants that may be addressed with funding
pursuant to this chapter may include, but shall not be limited to,
nitrates, perchlorate, MTBE (methyl tertiary butyl ether), arsenic,
 salinity   selenium  , hexavalent
chromium, mercury, PCE (perchloroethylene), TCE (trichloroethylene),
DCE (dichloroethene), DCA (dichloroethane),  1, 2, 3 TCP
(trichloropropane),  and carbon tetrachloride.
   79725.  (a) Of the funds authorized in Section 79720,  up
to   not less than  one hundred million dollars
($100,000,000) shall be available for deposit in the State Water
Pollution Control Revolving Fund Small Community Grant Fund created
pursuant to Section 13477.6 for grants for wastewater treatment
projects. 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) Of the funds authorized in Section 79720, up to two hundred
fifty million dollars ($250,000,000) shall be available to support
projects that address the management of stormwater quality  ,
including projects described in subdivision (f) of Section 7 
 9743  . 
   79726.  (a) Of the funds authorized in Section 79720, one hundred
million dollars ($100,000,000) shall be available for deposit in the
Emergency Clean Water Grant Fund, established pursuant to Section
116475 of the Health and Safety Code, for grants and direct
expenditures to finance public health emergencies and urgent actions,
as may be determined by the Legislature, to ensure that safe
drinking water supplies are available to all Californians. Eligible
projects include, but are not limited to, the following:
   (1) Providing interim water supplies, including, but not limited
to, bottled water, where necessary to protect public health.
   (2) Identifying, planning, designing, and constructing projects
that improve existing water systems to provide safe, reliable,
accessible, and affordable drinking water, provide other sources of
safe drinking water, including, but not limited to, replacement
wells, and prevent contamination.
   (3) Establishing connections to an adjacent water system.
   (4) The design, purchase, installation, and initial operating
costs for interim water treatment equipment and systems.
   (b) The administering entity may expend up to ten million dollars
($10,000,000) for grants and loans to address the water quality needs
of private well owners that have no other source of funding and
serve members of a disadvantaged community.  
   79727.  (a) Of the funds authorized in Section 79720, four hundred
million dollars ($400,000,000) shall be available for grants and
loans for public water system infrastructure improvements and related
actions to meet safe drinking water standards, ensure affordable
drinking water, or both. Priority shall be given to projects that
provide treatment for contamination or access to an alternate
drinking water source or sources for small community water systems or
state small water systems in disadvantaged communities whose
drinking water source is impaired by chemical and nitrate
contaminants and other health hazards identified by the implementing
agency. Eligible recipients serve disadvantaged communities and are
public agencies or incorporated mutual water companies. The
implementing agency 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 shall be given to projects that provide shared
solutions for multiple communities, at least one of which is a
disadvantaged community that lacks safe, affordable drinking water
and is served by a small community water system, state small water
system, or a private well. Construction grants shall be limited to
five million dollars ($5,000,000) per project, except that the
implementing agency may set a limit of not more than twenty million
dollars ($20,000,000) for projects that provide regional or shared
among multiple entities, at least one of which shall be a small
disadvantaged community. Not more than 25 percent of a grant may be
awarded in advance of actual expenditures.
   (b) The administering entity may expend up to twenty-five million
dollars ($25,000,000) of the funds allocated in subdivision (a) for
technical assistance to eligible communities.  
   79728.  Of the funds authorized in Section 79720, two hundred
fifty million dollars ($250,000,000) shall be available for improving
groundwater quality.  
   79726.  For 
    79729.    (a)     For  the
purposes of awarding funding under this chapter, a local cost share
of not less than 50 percent of the total costs of the project shall
be required. The cost-sharing requirement may be waived or reduced
for projects that directly benefit a disadvantaged community or an
economically distressed area. 
   (b) At least 10 percent of the funds available pursuant to this
chapter shall be allocated for projects serving severely
                                     disadvantaged communities. 

   (c) Funding authorized pursuant to this chapter shall include
funding for technical assistance to disadvantaged communities. The
agency administering this funding shall operate a multidisciplinary
technical assistance program for small and disadvantaged communities.

      CHAPTER 6.  PROTECTING RIVERS, LAKES, STREAMS, AND WATERSHEDS


   79730.  The sum of one billion five hundred million dollars
($1,500,000,000) shall be available, upon appropriation by the
Legislature from the fund, in accordance with this chapter, for
expenditures and grants for ecosystem and watershed protection and
restoration projects, including, but not limited to, for all of the
following watersheds:
   (a) The San Joaquin River watershed.
   (b) The Kern River and Tulare Basin watersheds.
   (c) The Salton Sea and Colorado River watersheds.
   (d) The Los Angeles River watershed.
   (e) The San Gabriel River watershed.
   (f) The Santa Ana River watershed.
   (g) The Klamath River watershed, including the Trinity, Scott, and
Shasta Rivers and watersheds.
   (h) The North Coast watersheds.
   (i) The San Francisco Bay watersheds.
   (j) The Central Coast watersheds.
   (k) The South Coast watersheds.
   (l) The Lake Tahoe Basin watershed.
   (m) The Sacramento River watershed, including the Yolo Bypass.
   (n) The San Diego County coastal watersheds.
   (o) The Ventura River watershed.
   (p) The Sierra Nevada Mountain watersheds.
   (q) The Mojave River watershed.
   (r) The Owens River watershed.
   (s) The Santa Monica Bay watershed.
   (t) The watersheds of Marin County.
   (u) The watersheds of Orange County.
   79731.  In protecting and restoring California rivers, lakes,
streams, and watersheds, the purposes of this chapter are to:
   (a) Protect and increase the economic benefits arising from
healthy watersheds, fishery resources, and instream flow.
   (b) Help watershed ecosystems adapt to climate change.
   (c) Restore river parkways throughout the state, including, but
not limited to, projects  pursuant to the California River
Parkways Act of 2004 (Chapter 3.8 (commencing with Section 575 
 0) of Division 5 of the Public Resources Code),  in the
Urban Streams Restoration Program established pursuant to Section
7048  , and urban river greenways  .
   (d) Protect and restore aquatic, wetland, and migratory bird
ecosystems, including fish and wildlife corridors  and the
acquisition of water rights for instream flow pursuant to Section
1707  .
   (e) Fulfill the obligations of the State of California in
complying with the terms of  multi-party  
multiparty  settlement agreements related to water resources.
   (f) Remove barriers to fish passage.
   (g) Collaborate with federal agencies in the protection of fish
native to California  and wetlands in the central valley of
California .
   (h) Implement fuel treatment projects to reduce wildfire risks,
protect watersheds tributary to water storage facilities, and promote
watershed health.
   (i) Protect and restore  rural and urban  watershed
health to improve watershed storage capacity, forest health,
protection of life and property,  stormwater resource management,
 and greenhouse gas reduction. 
   (j) Promote access and recreational opportunities to watersheds
and waterways that are compatible with habitat values and water
quality objectives.  
   (k) Promote educational opportunities to instruct and inform
Californians, including young people, about the value of watersheds.

   79732.  For restoration and ecosystem protection projects under
this chapter, the services of the California Conservation Corps or
 community   a local  conservation corps
 certified by the California Conservation Corps  shall be
used whenever feasible.
   79733.  (a)  Of   Notwithstanding Section
79711, of    the funds authorized in Section 79730,
five hundred million dollars ($500,000,000) shall be available to
fulfill the obligations of the State of California in complying with
the terms of any of the following:
   (1) The February 18, 2010, Klamath Basin Restoration Agreement.
   (2) The  Qualification   Quantification 
Settlement Agreement, as defined in subdivision (a) of Section 1 of
Chapter 617 of the  Statues   Statutes  of
2002.
   (3) The San Joaquin River Restoration Settlement, as described in
Part I of Subtitle A of Title X of Public Law 111-11. 
   (4) Section 3406(d) of Title 34 of Public Law 102-575. 
   (b) Of the funds authorized in Section 79730, two hundred fifty
million dollars ($250,000,000) shall be available to the Natural
Resources Agency to support projects of a state conservancy as
provided in the conservancy's strategic plan.
   79734.  For the purposes of this chapter, the terms "protection"
and "restoration" have the meanings set forth in Section 75005 of the
Public Resources Code.
      CHAPTER 7.  CLIMATE CHANGE PREPAREDNESS FOR REGIONAL WATER
SECURITY


   79740.  The sum of one billion five hundred million dollars
($1,500,000,000) shall be available, upon appropriation by the
Legislature from the fund, for expenditures and competitive grants
and loans to eligible projects that are included in, and implement an
adopted integrated regional water management plan consistent with
Part 2.2 (commencing with Section 10530) of Division 6.
   79741.  In order to improve regional water self-reliance security
and adapt to the effects on water supply arising out of climate
change, the purposes of this chapter are to:
   (a) Help water infrastructure systems adapt to climate change 
, including, but not limited to, sea-level rise  .
   (b) Incentivize water agencies throughout each watershed to
collaborate in managing the region's water resources and setting
regional priorities for water infrastructure.
   (c) Improve regional water self-reliance, including projects that
reduce reliance on the Delta in meeting California's future water
supply needs, consistent with Section 85021.
   (d) Fund the increment of project costs related to the project's
public benefits.
   79742.  (a) In selecting among proposed projects in a watershed,
the scope of the adopted integrated regional water management plan
may be considered by the administering state agency, with priority
going to projects in plans that cover a greater portion of the
watershed. If a plan covers substantially all of the watershed, then
the plan's project priorities shall be given deference.
   (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 
 apply for  funds made available pursuant to this chapter
until the urban water management plan is prepared and submitted in
accordance with the requirements of that act.
   (c) An agricultural water supplier that does not prepare, adopt,
and submit its agricultural water management plan in accordance with
the Agricultural Water Management Planning Act (Part 2.8 (commencing
with Section 10800) of Division 6) is ineligible to  receive
  apply for  funds made available pursuant to this
chapter until the agricultural water management plan is prepared and
submitted in accordance with the requirements of that act. 
   (d) A local agency that does not prepare, adopt, and submit its
groundwater management plan in accordance with Part 2.75 (commencing
with Section 10750) of Division 6 is ineligible to apply for funds
made available pursuant to this chapter until the plan is prepared
and submitted in accordance with the requirements of that part. 

   (d) 
    (  e)  For the purposes of awarding funding
under this chapter, a  local  cost share  from
nonstate sources  of not less than 50 percent of the total costs
of the project shall be required. The cost sharing requirement may
be waived or reduced for projects that directly benefit a
disadvantaged community or an economically distressed area. 
   (e) 
    (   f)  Not less than 10 percent of the funds
authorized by this chapter shall be allocated to projects that
directly benefit disadvantaged communities. 
   (f) 
    (   g)  For the purposes of awarding a grant
under this chapter, the applicant shall demonstrate that the
integrated regional water management plan the applicant's project
implements addresses the risks in the region to water supply and
water infrastructure arising from climate change. 
   (h) Projects that achieve multiple benefits shall receive special
consideration. 
   79743.  Subject to the determination of regional priorities by the
regional water management group, eligible projects may include, but
are not limited to, projects that promote any of the following:
   (a) Water  re-use   reuse  and
recycling.
   (b) Water-use efficiency and water conservation.
   (c) Local and regional surface and underground water storage 
,   including   groundwater aquifer cleanup or
recharge projects  .
   (d) Regional water conveyance facilities that improve integration
of separate water systems.
   (e) Watershed protection, restoration, and management projects.
   (f) Stormwater resource management, including  ,  but not
limited to  ,  the following:
   (1) Projects to reduce, manage, treat, or capture rainwater or
stormwater.
   (2) Projects that provide multiple benefits such as water quality,
water supply, flood control, or open space.
   (3) Decision support tools that evaluate the benefits and costs of
 multi-benefit   multibenefit  stormwater
projects.
   (4) Projects to implement a stormwater resource plan developed in
accordance with Part 2.3 (commencing with Section 10560) of Division
6.
   (g) Conjunctive use of surface and groundwater storage facilities.

   (h) Water desalination  projects, including  projects
that incorporate renewable energy generation and reduce Delta
exports. 
   (i) Decision support tools to model regional water management
strategies to account for climate change and other changes in
regional demand and supply projections. 
   79744.  (a) Of the funds authorized in Section 79740, one billion
dollars ($1,000,000,000) shall be allocated to the hydrologic regions
as identified in the California Water Plan in accordance with this
section. 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. Multiple integrated
regional water management plans may be recognized in each of the
areas allocated funding.
   (b) 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.
   79745.  (a) Of the funds authorized by 79740 up to two hundred
fifty million dollars ($250,000,000) may be used for direct
expenditures, grants, and loans for water conservation and water use
efficiency plans, projects, and programs, including either of the
following:
   (1) Urban water conservation plans, projects, and programs,
including regional projects and programs, implemented to achieve
urban water use targets developed pursuant to Section 10608.20.
Priority for funding shall be given to programs that do any of the
following:
   (A) Assist water suppliers and regions to implement conservation
programs and measures that are not locally cost-effective.
   (B) Support water supplier and regional efforts to implement
programs targeted to enhance water use efficiency for commercial,
industrial, and institutional water users.
   (C) Assist water suppliers and regions with programs and measures
targeted toward realizing the conservation benefits of implementation
of the provisions of the state landscape model ordinance.
   (2) Agricultural water management plans or agricultural water use
efficiency projects and programs developed pursuant to Part 2.8
(commencing with Section 10800) of Division 6.
   (b) Section 1011 applies to all conservation measures that an
agricultural water supplier or an urban water supplier implements
with funding under this chapter. This subdivision does not limit the
application of Section 1011 to any other measures or projects
implemented by a water supplier.
   79746.  Of the funds authorized by 79740, the sum of five hundred
million dollars ($500,000,000) shall be available, upon appropriation
by the Legislature from the fund, for grants and loans for water
recycling and advanced treatment technology projects, including all
of the following:
   (a) Water recycling projects.
   (b) Contaminant and salt removal projects, including, but not
limited to, groundwater and seawater desalination.
   (c) Dedicated distribution infrastructure for recycled water and
commercial and industrial end-user retrofit projects to allow use of
recycled water.
   (d) Pilot projects for new salt and contaminant removal
technology.
   (e) Groundwater recharge infrastructure related to recycled water.

   (f) Technical assistance and grant writing assistance for
disadvantaged communities.
   (g) For projects funded pursuant to this section, at least a 50
percent local cost share shall be required. That cost share may be
suspended or reduced for disadvantaged communities and economically
distressed areas.
   (h) Projects funded pursuant to this section shall be selected on
a competitive basis, considering all of the following criteria:
   (1) Water supply reliability improvement.
   (2) Water quality and ecosystem benefits related to decreased
reliance on diversions from the Delta or instream flows.
   (3) Public health benefits from improved drinking water quality.
   (4) Cost effectiveness.
   (5) Energy efficiency and greenhouse gas emission impacts. 
   (i) For the purposes of this section, a plan or strategy by one or
more regional water agencies to incorporate water recycling into the
region's water supplies shall satisfy the requirements for an
integrated regional water management plan, consistent with Part 2.2
(commencing with Section 10530) of Division 6. 
   79747.  In order to receive funding authorized by this chapter to
address groundwater quality or supply in an aquifer, the applicant
shall demonstrate that a public agency has authority to manage the
water resources in that aquifer.  A groundwater management plan
adopted and approved pursuant to Part 2.75 (commencing with Section
10750) of Division 6 shall be deemed sufficient to satisfy the
requirements of this section. 
      CHAPTER 8.  SACRAMENTO-SAN JOAQUIN  DELTA
SUSTAINABILITY


   79750.  (a) The sum of one billion ($1,000,000,000) shall be
available, upon appropriation by the Legislature from the fund, for
grants and direct expenditures to improve the sustainability of the
Delta.
   (b) This chapter provides state funding for public benefits
associated with projects needed to assist in the Delta's
sustainability as a vital resource for fish, wildlife, water quality,
water supply, agriculture, and recreation.
   79751.  In order to promote the sustainability and resiliency of
the Delta, the purposes of this chapter are to:
   (a) Protect, restore, and enhance the Delta ecosystem.
   (b) Maintain and improve existing Delta levees.
   (c) Promote the sustainability of the Delta.
   79752.  The funds authorized in Section 79750 shall not be used to
pay the costs of exercising eminent domain.
   79753.  Any project funded by this chapter shall include a partner
 that is a resident, landowner, public agency, or organization
 from one  or more  of the five Delta counties. 
For the purposes of this chapter, a partner from a Delta county shall
have a significant role in the development and implementation of the
funded project. 
   79754.  Funding authorized by this chapter for the purpose of
subdivision (a) of Section 79751 may include, but is not limited to,
the following:
   (a) Projects to protect and restore native fish and wildlife
dependent on the Delta ecosystem, including improvement of aquatic or
terrestrial habitat or the removal or reduction of undesirable
invasive species.
   (b) Projects to reduce greenhouse gas emissions from exposed Delta
soils.
   (c) Scientific studies and assessments that support the projects
authorized under this section.
   79755.   (a)    Funding authorized by this
chapter for the purpose of subdivision (b) of Section 79751 shall
reduce the risk of levee failure and flood in the Delta and may be
expended  , consistent with the Delta levee investment priorities
recommended pursuant to Section 85306,  for any of the
following: 
   (a) 
    (   1)  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) 
    (   2)  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) 
    (   3)  Levee improvement projects that
increase the resiliency of levees within the Delta to withstand
earthquake, flooding, or sea level rise. 
   (d) 
    (   4)  Emergency response and repair projects.

   (b) All projects funded pursuant to this section shall be subject
to Section 79050. 
      CHAPTER 9.  WATER STORAGE FOR CLIMATE CHANGE


   79760.  (a) Notwithstanding Section 162, the commission may make
the determinations, findings, and recommendations required of it by
this chapter independent of the views of the director. All final
actions by the commission in implementing this chapter shall be taken
by a majority of the members of the commission at a public meeting
noticed and held pursuant to the Bagley-Keene Open Meeting Act
(Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of
Division 3 of Title 2 of the Government Code).
   (b) Notwithstanding Section 13340 of the Government Code, the sum
of one billion five hundred million dollars ($1,500,000,000) is
hereby continuously appropriated from the fund, without regard to
fiscal years, to the commission for public benefits associated with
water storage projects that improve the operation of the state water
system, are cost effective, and provide a net improvement in
ecosystem and water quality conditions, in accordance with this
chapter. Funds authorized for, or made available to, the commission
pursuant to this chapter shall be available and expended only for the
purposes provided in this chapter, and shall not be subject to
appropriation or transfer by the Legislature or the Governor for any
other purpose.
   (c) Projects shall be selected by the commission through a
competitive public process that ranks potential projects based on the
expected return for public investment as measured by the magnitude
of the public benefits provided, pursuant to criteria established
under this chapter.
   (d) Any project constructed with funds provided by this chapter
shall be subject to Section 11590.
   79761.  In order to expand the state's water storage capacity to
address the impacts of climate change on the snow pack in the Sierra
Nevada Mountains and water storage resources, the purposes of this
chapter are to:
   (a) Construct new surface water storage projects.
   (b) Restore and expand groundwater aquifer storage capacity.
   (c) Restore water storage capacity of existing surface water
storage reservoirs.
   79762.  Projects for which the public benefits are eligible for
funding under this chapter consist of only the following:
   (a) Surface storage projects identified in the CALFED Bay-Delta
Program, except for projects prohibited by Chapter 1.4 (commencing
with Section 5093.50) of Division 5 of the Public Resources Code.
   (b) Groundwater storage projects and groundwater contamination
prevention or remediation projects that provide water storage
benefits.
   (c) Conjunctive use and reservoir reoperation projects.
   (d) Local and regional surface storage projects that improve the
operation of water systems in the state and provide public benefits.
   (e) Projects that remove sediment, improve dam stability in
seismic events or otherwise restore water storage capacity in
existing water storage reservoirs.
   79763.  A project shall not be funded pursuant to this chapter
unless it provides measurable improvements to the Delta ecosystem or
to the tributaries to the Delta.
   79764.  (a) Funds allocated pursuant to this chapter may be
expended solely for the following public benefits associated with
water storage projects:
   (1) Ecosystem improvements, including changing the timing of water
diversions, improvement in flow conditions, temperature, or other
benefits that contribute to restoration of aquatic ecosystems and
native fish and wildlife, including those ecosystems and fish and
wildlife in the Delta  or the Delta tributaries  .
   (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 capacity in response
to the effects of changing hydrology and decreasing snow pack on
California's water and flood management system.
   (4) Emergency response, including, but not limited to, securing
emergency water supplies and flows for dilution and salinity
repulsion following a natural disaster or act of terrorism.
   (5) Recreational purposes, including, but not limited to, those
recreational pursuits generally associated with the outdoors.
   (b) 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 public benefits as
described in subdivision (a).
   79765.  In consultation with the Department of Fish and Game, 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
79764 by December 15, 2014. The regulations shall include the
priorities and relative environmental value of ecosystem benefits as
provided by the Department of Fish and Game and the priorities and
relative environmental value of water quality benefits as provided by
the State Water Resources Control Board.
   79766.  (a) Except as provided in subdivision (c), no funds
allocated pursuant to this chapter may be allocated for a project
before December 15, 2014, 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 79765 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 79764, 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 79765 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.
   79767.  (a) The public benefit cost share of a project funded
pursuant to this chapter, other than a project described in
subdivision (c) of Section 79762, may not exceed 50 percent of the
total costs of any project funded under this chapter.
   (b) No project may be funded unless it provides ecosystem
improvements as described in paragraph (1) of subdivision (a) of
Section 79764 that are at least 50 percent of total public benefits
of the project funded under this chapter.
          (c) In order to receive funding authorized by this chapter
to improve groundwater storage in an aquifer, the applicant shall
demonstrate that a public agency has authority to manage the water
resources in that aquifer.
   79768.  (a) A project is not eligible for funding under this
chapter unless, by January 1, 2018, 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.
      CHAPTER 10.  FISCAL PROVISIONS


   79800.  (a) Bonds in the total amount of six billion five hundred
million dollars ($6,500,000,000), or so much thereof as is necessary,
not including the amount of any refunding bonds issued in accordance
with Section  79812, or so much thereof as is necessary,
  79812  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 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.
   79801.  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  shall not
apply to the extent that it is inconsistent with any other provision
of this division  .
   79802.  (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
Climate Change Response for Clean and Safe Drinking Water Finance
Committee is hereby created. For purposes of this division, the
Climate Change Response for Clean and Safe Drinking Water Finance
Committee is "the committee" as that term is used in the State
General Obligation Bond Law.
   (b) The committee consists of the Director of Finance, the
Treasurer, the Controller, the Director of Water Resources, and the
Secretary of the Natural Resources Agency. Notwithstanding any other
provision of law, any member may designate a  deputy
  representative  to act as that member in his or
her place for all purposes, as though the member were personally
present.
   (c) The Treasurer shall serve as chairperson of the committee.
   (d) A majority of the committee may act for the committee.
   79803.  The 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.
   79804.  For purposes of the State General Obligation Bond Law,
"board," as defined in Section 16722 of the Government Code, means
the Department of Water Resources.
   79805.  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.
   79806.  Notwithstanding Section 13340 of the Government Code,
there is hereby appropriated from the General Fund in the State
Treasury, for the purposes of this division, an amount that will
equal the total of the following:
   (a) The sum annually necessary to pay the principal of, and
interest on, bonds issued and sold pursuant to this division, as the
principal and interest become due and payable.
   (b) The sum that is necessary to carry out the provisions of
Section 79809, appropriated without regard to fiscal years.
   79807.  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
79809  . The amount of the request shall not exceed the amount
of the unsold bonds that the committee has, by resolution, authorized
to be sold for the purpose of carrying out this division. The board
shall execute those documents required by the Pooled Money Investment
Board to obtain and repay the loan. Any amounts loaned shall be
deposited in the fund to be allocated in accordance with this
division.
   79808.  Notwithstanding any other provision of this division, or
of the State General Obligation Bond Law, if the Treasurer sells
bonds that include a bond counsel opinion to the effect that the
interest on the bonds is excluded from gross income for federal tax
purposes under designated conditions  or is otherwise entitled to
any federal tax advantage  , the Treasurer may maintain
separate accounts for the bond proceeds invested and for the
investment earnings on those proceeds, and may use or direct the use
of those proceeds or earnings to pay any rebate, penalty, or other
payment required under federal law or take any other action with
respect to the investment and use of those bond proceeds, as may be
required or desirable under federal law in order to maintain the
tax-exempt status of those bonds and to obtain any other advantage
under federal law on behalf of the funds of this state.
   79809.  For the purposes of carrying out this division, the
Director of Finance may authorize the withdrawal from the General
Fund of an amount or amounts not to exceed the amount of the unsold
bonds that have been authorized by the committee to be sold for the
purpose of carrying out this division  less any amount borrowed
pursuant to Section 79807  . Any amounts withdrawn shall be
deposited in the fund. Any money made available under this section
shall be returned to the General Fund, with interest at the rate
earned by the money in the Pooled Money Investment Account, from
proceeds received from the sale of bonds for the purpose of carrying
out this division.
   79810.  All money deposited in the fund that is derived from
 premiums   premium  and accrued interest
on bonds sold pursuant to this division shall be reserved in the fund
and shall be available for transfer to the General Fund as a credit
to expenditures for bond interest  , 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  .
   79811.  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  .  These   To the exte
  nt the cost of bond issuance is not paid from premiums
received from the sale of bonds, these  costs shall be shared
proportionately by each program funded through this division  by
the applicable bond sale  .
   79812.  The bonds issued and sold pursuant to this division may be
refunded in accordance with Article 6 (commencing with Section
16780) of Chapter 4 of Part 3 of Division 4 of Title 2 of the
Government Code, which is a part of the State General Obligation Bond
Law. Approval by the  electors   voters 
of the state for the issuance of the bonds under this division shall
include approval of the issuance of any bonds issued to refund any
bonds originally issued under this division or any previously issued
refunding bonds.
   79813.  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.  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 Statutes of 2012, is repealed.
  SEC. 4.  Section 2 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. 5.  Section 2 of this act shall take effect upon the approval
by the voters of the Climate Change Response for Clean and Safe
Drinking Water Act of 2014, as set forth in that section at the
November 4, 2014, statewide general election.