Bill Text: CA AB752 | 2009-2010 | Regular Session | Amended


Bill Title: Safe Drinking Water and Water Supply Reliability Act of

Spectrum: Partisan Bill (Democrat 8-0)

Status: (Engrossed - Dead) 2010-02-04 - Re-referred to Coms. on N.R. & W. and EQ. [AB752 Detail]

Download: California-2009-AB752-Amended.html
BILL NUMBER: AB 752	AMENDED
	BILL TEXT

	AMENDED IN SENATE  SEPTEMBER 3, 2009
	AMENDED IN SENATE  JUNE 8, 2009
	AMENDED IN SENATE  JUNE 3, 2009

INTRODUCED BY   Assembly Member  Arambula  
Caballero 
    (   Principal   coauthors:  
Assembly Members   Arambula   and Nava   )

    (   Coauthors:   Assembly Members 
Coto,   Mendoza,   Solorio,   Torres,
  and Torrico   ) 

                        FEBRUARY 26, 2009

    An act to amend Section 13476 of the Water Code, relating
to water.   An act to add Division 26.7 (commencing
with Section 79700) to the Water Code, relating to financing a safe
drinking water and water supply reliability program, by providing the
funds necessary therefor through an election for the  
issuance and sale of bonds of the State of California and for the
handling and disposition of those funds, and declaring the urgency
thereof, to take effect immediately. 



	LEGISLATIVE COUNSEL'S DIGEST


   AB 752, as amended,  Arambula   Caballero
 .  Local government: emergency response.  
Safe Drinking Water and Water Supply Reliability Act of 2010. 

   (1) Under existing law, various measures have been approved by the
voters to provide funds for water supply and protection facilities
and programs.  
   This bill would enact the Safe Drinking Water and Water Supply
Reliability Act of 2010, which, if approved by the voters, would
authorize the issuance of bonds in the amount of $12,250,000,000
pursuant to the State General Obligation Bond Law to finance a safe
drinking water and water supply reliability program.  
   The bill would provide for the submission of the bond act to the
voters at the November 2, 2010, statewide general election. 

   (2) This bill would declare that it is to take effect immediately
as an urgency statute.  
   Existing law establishes the State Water Pollution Control
Revolving Fund Small Community Grant Fund in the State Treasury.
Money in the fund may be expended for grants for projects that serve
small communities, as defined, with priority given to projects that
serve severely disadvantaged communities. Existing law defines
"severely disadvantaged community" for purposes of the Safe Drinking
Water, Water Quality and Supply, Flood Control, River and Coastal
Protection Bond Act of 2006 as a community with a median household
income of less than 60% of the statewide average.  
   This bill would define a severely disadvantaged community as a
community with a median household income of less than 60% of the
statewide median household income for purposes of the provisions
governing expenditure of moneys in the State Water Pollution Control
Revolving Fund Small Community Grant Fund. 
   Vote:  majority   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) is added to the   Water Code   , to read:
 

      DIVISION 26.7.  THE SAFE DRINKING WATER AND WATER SUPPLY
RELIABILITY ACT OF 2010


      CHAPTER 1.  SHORT TITLE


   79700.  This division shall be known and may be cited as the Safe
Drinking Water and Water Supply Reliability Act of 2010.
      CHAPTER 2.  FINDINGS AND DECLARATIONS


   79701.  The people of California find and declare all of the
following:
   (a) Many areas of the state are suffering from water shortages
that affect the availability of safe drinking water and the viability
of agriculture and the economy.
   (b) Providing adequate supplies of clean, safe drinking water is
vital to California's economy.
   (c) Encouraging water conservation and recycling are commonsense
methods to make more efficient use of existing water supplies.
   (d) Protecting lakes, rivers, and streams from pollution, cleaning
up polluted groundwater supplies, and protecting water sources that
supply the entire state are crucial to providing a reliable supply of
drinking water and protecting the natural resources of California.
      CHAPTER 3.  DEFINITIONS


   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 Drinking Water and Water Supply
Reliability 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) "Department" means the Department of Water Resources.
   (i) "Developed area" has the meaning set forth in Section 59.1 of
Title 44 of the Code of Federal Regulations.
   (j) "Director" means the Director of Water Resources.
   (k) "Disadvantaged community" has the meaning set forth in
subdivision (a) of Section 79505.5.
   (l) "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 a financial
hardship, as determined by the department after considering factors
that include, but are not limited to, the median income of the
residents, the rate of unemployment, and low population density.
   (m) "Fund" means the Safe Drinking Water and Water Supply
Reliability Fund of 2010 created by Section 79720.
   (n) "Integrated regional water management plan" has the meaning
set forth in Section 10534.
   (o) "Nonprofit organization" means an organization qualified to do
business in California and qualified under Section 501(c)(3) of
Title 26 of the Internal Revenue Code.
   (p) "Public agency" means a state agency or department, district,
joint powers authority, city, county, city and county, or other
political subdivision of the state.
   (q) "Reliable water supply" means a water supply that is adequate
to meet the demands for reasonable and beneficial use after
accounting for water use efficiency measures.
   (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).
      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 grant project.
Water quality monitoring shall be integrated into the surface water
ambient monitoring program administered by the State Water Resources
Control Board.
   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.
   79708.  (a) Prior to disbursing grants pursuant to this division,
each state agency that is required to administer a competitive grant
program under this division shall develop and adopt project
solicitation and evaluation guidelines. The guidelines may include a
limitation on the dollar amount of each grant to be awarded.
   (b) Prior to disbursing grants, 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, 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 the investment of
public funds pursuant to this division will result in public
benefits.
   79710.  The State Auditor shall annually conduct a programmatic
review and an audit of expenditures from the fund. The State Auditor
shall report its findings annually on or before March 1 to the
Governor and the Legislature, and shall make the findings available
to the public.
   79711.  Funds provided by this division shall not be expended to
support or pay for the costs of environmental mitigation measures or
compliance obligations of any party except as part of the
environmental mitigation costs of projects financed by this division.
Funds provided by this division may be used for environmental
enhancements or other public benefits.
   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 users that benefit from the design,
construction, operation, or maintenance of those facilities.
   79713.  Nothing in this division shall limit or otherwise affect
the application of Sections 10505, 10505.5, 11128, 11460, 11461,
11462, and 11463 and Sections 12200 to 12220, inclusive.
   79714.  The Legislature may enact legislation necessary to
implement programs funded by this division.
   79720.  The proceeds of bonds issued and sold pursuant to this
division shall be deposited in the Safe Drinking Water and Water
Supply Reliability Fund of 2010, which is hereby created.
      CHAPTER 5.  DROUGHT RELIEF AND PROTECTION


   79724.  (a) The sum of one billion dollars ($1,000,000,000) shall
be available, upon appropriation by the Legislature from the fund to
the department, for grants and expenditures for the planning, design,
and construction of local and regional drought relief projects that
reduce the impacts of drought conditions, including the impacts of
Delta diversion reductions. Projects shall include the following:
   (1) Water conservation and efficiency projects.
   (2) Water recycling and related infrastructure.
   (3) Stormwater capture.
   (4) Groundwater cleanup.
   (5) Local and regional conveyance projects that improve
connectivity and water management.
   (6) Projects to provide safe drinking water to disadvantaged
communities and economically distressed communities.
   (7) Mitigation of conditions of groundwater overdraft, saline
water intrusion, water quality degradation, or subsidence.
   (8) Other local and regional water supply reliability projects.
   (b) Projects shall meet both of the following requirements:
   (1) The project provides a sustainable water supply that does not
increase groundwater overdraft.
   (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 water use efficiency
improvements and local water projects.
   (d) Not more than 10 percent of the funds provided by this section
shall be available for planning investigations, studies, and
monitoring.
   (e) Not less than 10 percent of the funds provided by this section
shall be available to the State Department of Public Health for
grants and expenditures to finance emergency and urgent actions on
behalf of disadvantaged communities and economically distressed areas
to ensure that safe drinking water supplies are available to all
Californians.
   (f) 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 share requirement for projects that
directly benefit disadvantaged communities or economically distressed
areas.
      CHAPTER 6.  WATER SUPPLY RELIABILITY


   79730.  The sum of one billion nine hundred ninety million dollars
($1,990,000,000) shall be available, upon appropriation by the
Legislature from the fund to the department, for the purposes of this
chapter.
   79731.  One billion six hundred ninety million dollars
($1,690,000,000) of the funds provided pursuant to Section 79730
shall be allocated for grants and expenditures in accordance with
Section 79732.
   79732.  (a) Except as provided in subdivision (g) or (h), 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 79731 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 include, but are not limited to, all of the
following:
   (1) Agricultural and urban water use efficiency implementation
projects, including, but not limited to, feasibility studies,
technical assistance, education, and public outreach, and projects
that result in water savings, increased instream flow, improved water
quality, or increased energy efficiency.
   (2) Recycling, reclamation, water treatment for the recovery of
water supplies, desalination, and associated facilities, including
distributions and storage systems.
   (3) Groundwater and surface storage projects, and conjunctive use
and reservoir reoperations projects.
   (4) Groundwater contamination prevention, cleanup, and treatment,
and other water quality projects necessary to protect existing or
potential water supplies. The implementation of a project financed
pursuant to this paragraph does not relieve a responsible party or
liable person from that person's obligation under existing state or
federal law to clean up or remediate, or otherwise treat,
contaminated water.
   (5) Projects that reduce contributions to climate change from
water management systems.
   (6) Projects that enhance the adaptability to climate change of
water management systems.
   (7) Other projects that meet the requirements of Section 75026 of
the Public Resources Code.
   (e) Eligible applicants are public agencies, public utilities, and
mutual water companies. To be eligible for funding under Section
79731, projects proposed by public utilities that are regulated by
the Public Utilities Commission and mutual water companies shall have
a clear and definite public purpose and shall benefit the customers
of those respective water systems.
   (f) The funding provided under Section 79731 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. The department may recognize multiple integrated regional
water management plans in each of the areas allocated funding. Funds
provided under Section 79731 shall be allocated as follows: 
 (1) North Coast            $76,000,000 
 (2) San Francisco Bay     $171,000,000 
 (3) Central Coast          $91,000,000 
 (4) Los Angeles subregion $243,000,000 
 (5) Santa Ana subregion   $167,000,000 
 (6) San Diego subregion   $122,000,000 
 (7) Sacramento River      $115,000,000 
 (8) San Joaquin River     $101,000,000 
 (9) Tulare/Kern           $103,000,000 
 (10) North/South Lahontan  $72,000,000 
 (11) Colorado River Basin  $79,000,000 
 (12) Interregional        $350,000,000 


   (g) Interregional funds provided pursuant to paragraph (12) of
subdivision (f) 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.
   (h) Fifty million dollars ($50,000,000) of the interregional funds
provided pursuant to paragraph (12) of subdivision (f) shall be
allocated for costs incurred in connection with the provision of
recreation and fish and wildlife enhancement at state water projects.
The funds shall be available to pay the costs associated with the
planning, construction, operation, and maintenance for recreation and
fish and wildlife enhancement.
   79735.  Three hundred million dollars ($300,000,000) of the funds
provided pursuant to Section 79730 shall be allocated to the
department for grants to disadvantaged communities or economically
distressed areas consistent with the purposes of this chapter.
      CHAPTER 7.  DELTA SUSTAINABILITY


   79740.  (a) The Bay-Delta Estuary is a unique and irreplaceable
combination of environmental and economic resources. Current
management and use of the Delta is not sustainable, and results in a
high level of conflict among various interests. Future Delta
sustainability is threatened by changing hydrology due to climate
change, water diversions, flood risk, seismic events, nonnative
species, toxics, and other environmental problems. Future management
of the Delta must improve Delta ecosystem health and improve the
means of Delta water conveyance in order to protect drinking water
quality, improve water supply reliability, restore ecosystem health,
and preserve agricultural and recreational values in the Delta, while
providing to counties and watersheds of origin assurances that their
priority to water resources will be protected and that programs or
facilities implemented or constructed in the Delta will not result in
redirection of unmitigated, significant adverse impacts to the
counties and watershed of origin. Many sources of funding will be
needed to implement improved Delta management.
   (b) This chapter provides state funding for public benefits
associated with projects needed to assist in the Delta's
sustainability as a vital resource for fish, wildlife, water quality,
water supply, agriculture, and recreation.
   79741.  Notwithstanding Section 13340 of the Government Code, the
sum of three billion dollars ($3,000,000,000) is hereby continuously
appropriated from the fund, without regard to fiscal years, to the
commission for grants and direct expenditure, as follows:
   (a) One billion dollars ($1,000,000,000) for projects, including
grants to Delta cities, counties, and special districts within the
Delta, that provide public benefits and support Delta sustainability
options, including projects and supporting scientific studies and
assessments that do any of the following:
   (1) Ensure that urban and agricultural water supplies derived from
the Delta, including water supplies used within the Delta, are not
disrupted because of catastrophic failures of Delta levees resulting
from earthquakes, floods, land sinking, rising ocean levels, or other
forces.
   (2) Assist in preserving economically viable and sustainable
agriculture and other economic activities in the Delta.
   (3) Improve the quality of drinking water derived from the Delta.
   (4) Improve levee and flood control facilities and other vital
infrastructure necessary to protect Delta communities affected by the
implementation of this chapter.
   (5) Provide physical improvements or other actions to create water
flow and water quality conditions within the Delta to provide
adequate habitat for native fish and wildlife.
   (6) Facilitate other projects that provide public benefits and
support Delta sustainability options approved by the Legislature,
including costs associated with planning, monitoring, and design of
alternatives, and project modifications and adaptations necessary to
achieve the goals of this chapter.
   (b) Two billion dollars ($2,000,000,000) for projects to protect
and enhance the sustainability of the Delta ecosystem, including any
of the following:
   (1) Projects for the development and implementation of the Bay
Delta Conservation Plan. The projects shall be implemented through a
cooperative effort among regulatory agencies, regulated and
potentially regulated entities, and affected parties, including state
and federal water contractors. These funds may be expended for the
preparation of environmental documentation and environmental
compliance.
   (2) Other projects to protect and restore native fish and wildlife
dependent on the Delta ecosystem, including the acquisition of water
rights and the removal or reduction of undesirable invasive species.

   (3) Projects to reduce greenhouse gas emissions from exposed Delta
soils.
   (4) Scientific studies and assessments that support the projects
authorized under this section.
      CHAPTER 8.  STATEWIDE WATER SYSTEM OPERATIONAL IMPROVEMENT


   79750.  (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 three billion five hundred million dollars ($3,500,000,000) 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.
   (e) No funds authorized under this chapter shall be expended for
any project until December 31, 2012 or until the planning and
feasibility studies associated with new surface storage identified in
the CALFED Bay-Delta Program Record of Decision, dated August 28,
2000, have been completed, whichever occurs first.
   79751.  Projects for which the public benefits are eligible for
funding under this chapter consist of any of the following:
   (a) Surface storage projects identified in the CALFED Bay-Delta
Program Record of Decision, dated August 28, 2000.
   (b) Groundwater storage projects and groundwater contamination
prevention or remediation projects that provide water storage
benefits.
   (c) Conjunctive use and reservoir reoperation projects.
   (d) Regional and local surface storage and conveyance projects
that improve the operation of water systems in the state and provide
public benefits.
   79752.  A project shall not be funded pursuant to this chapter
unless it provides measurable improvements to the Delta ecosystem or
the tributaries to the Delta.
   79753.  (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.
   (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.
   (b) For the purposes of this chapter, "public benefits" does not
include the costs of environmental mitigation measures or compliance
obligations established prior to the enactment of this division under
state or federal law.
   79754.  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 under
Section 79753 by December 15, 2013. 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.
   79755.  (a) Except as provided under subdivision (c), no funds
allocated pursuant to this chapter shall not be allocated for a
project before December 15, 2013, and unless 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 79754 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 who
will derive benefits, other than public benefits as defined in
Section 79753, 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 79754 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 director 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 Bay-Delta
Estuary.
   (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.
   79756.  (a) The public benefit cost share of a project funded
pursuant to this chapter, other than a project defined under
subdivision (c) of Section 79751, 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 79753 that are at least 50 percent of total public benefits
of the project funded under this chapter.
   79757.  (a) A project identified in subdivision (a) of Section
79751 is not eligible for funding under this chapter unless, by
January 1, 2016, the project meets all of the following conditions:
   (1) All feasibility studies are complete and draft environmental
documentation is available for public review.
   (2) The director 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 Bay-Delta
Estuary.
   (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 adopt regulations, the date in subdivision (a) shall be
extended by the director for a time period that is equal to the time
period of the delay and all funding from this chapter that has been
dedicated to a project affected by this subdivision shall be
encumbered until the litigation is completed or regulations have been
adopted.
   79758.  Surface storage projects funded pursuant to this chapter
and described in subdivision (a) of Section 79751 may be made a unit
of the Central Valley Project as provided in Section 11290 and may be
financed, acquired, constructed, operated, and maintained pursuant
to Part 3 (commencing with Section 11100) of Division 6.
      CHAPTER 9.  CONSERVATION AND WATERSHED PROTECTION


   79760.  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, 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.
   79761.  Funds provided under this chapter may be appropriated to
the Natural Resources Agency, the Department of Fish and Game, the
Wildlife Conservation Board, the California Conservation Corps, the
Department of Parks and Recreation, the Department of Forestry and
Fire Protection, or to state conservancies for expenditures and
grants consistent with this chapter and other applicable laws.
   79762.  (a) Funds provided for the Sacramento River and San
Joaquin River watersheds pursuant to Section 79760 shall be available
for projects consistent with the ecosystem restoration program
element of the California Bay-Delta Program, or its successor, or the
San Joaquin River Parkway Master Plan.
   (b) Funds provided for Salton Sea watershed projects pursuant to
Section 79760 shall be available for Salton Sea restoration
activities identified for "Period I" in the Natural Resources Agency
report entitled "Salton Sea Ecosystem Restoration Program Preferred
Alternative Report and Funding Plan," dated May 2007.
   (c) Funds provided for the Lake Tahoe Basin watershed pursuant to
Section 79760 shall be available for projects consistent with the
Lake Tahoe Environmental Improvement Program.
   (d) Funds provided for the Los Angeles River and San Gabriel River
watersheds pursuant to Section 79760 shall be available pursuant to
Section 79508, and for projects identified in the Los Angeles River
Revitalization Master Plan.
   79763.  (a) The sum of eighty-five million dollars ($85,000,000)
shall be available, upon appropriation by the Legislature from the
fund to the Department of Fish and Game, for expenditures and grants
to protect the Delta ecosystem and the state's water supply from
invasive species, including, but not limited to, asiatic clams, zebra
mussels, quagga mussels, and New Zealand mud snails.
   (b) At least fifty million dollars ($50,000,000) of the funds
provided pursuant to subdivision (a) shall be available for grants to
public agencies, including water agencies, to pay for capital
expenditures associated with the control of invasive species,
including, but not limited to, chlorination facilities, habitat
modifications, and monitoring equipment. The Department of Fish and
Game shall administer the grant program.
   (c) The Legislature, shall establish by statute, requirements for
both of the following:
   (1) Repayment of grant funds made available pursuant to this
section in the event of cost recovery from parties responsible for
the introduction of invasive species that affect the Delta ecosystem
and the state's water supply.
   (2) Recipients of grants to make reasonable efforts to recover
costs from parties described in paragraph (1).
   79764.  For restoration and ecosystem protection projects under
this chapter, the services of the California Conservation Corps or
community conservation corps shall be used whenever feasible.
   79765.  (a) Not less than four hundred million dollars
($400,000,000) of the funds provided pursuant to Section 79760 shall
be allocated to the State Coastal Conservancy for projects within
coastal counties and coastal watersheds, including grants to the San
Diego River Conservancy. Of the funds described in this subdivision,
not less than forty million dollars ($40,000,000) shall be available
for grants for the Santa Ana River Parkway.
   (b) Not less than one hundred million dollars ($100,000,000) of
the funds provided pursuant to Section 79760 shall be allocated to
the Wildlife Conservation Board for direct expenditure or grants for
the acquisition of water rights from willing sellers and the
conveyance of water for the benefit of migratory birds on wildlife
refuges and wildlife habitat areas subject to Section 3406(d) of the
federal Central Valley Project Improvement Act (Public Law 102-575).
   (c) Not less than four hundred million dollars ($400,000,000) of
the funds provided pursuant to Section 79760 shall be allocated to
the Wildlife Conservation Board for direct expenditure or grants for
the protection or restoration of watershed lands or rivers and
streams that support species listed as threatened or endangered under
state or federal law consistent with the requirements of programs
identified in Division 2 (commencing with Section 700) of the Fish
and Game Code or to implement or develop a Natural Community
Conservation Plan pursuant to Chapter 10 (commencing with Section
2800) of Division 3 of the Fish and Game Code.
   79766.  Not more than two hundred fifty million dollars
($250,000,000) of the funds provided pursuant to Section 79760 shall
be allocated for dam removal and related measures in the Klamath
River watershed if the Secretary of Natural Resources finds that the
following conditions have been met:
   (a) The State of California, State of Oregon, United States, and
PacifiCorp have executed a dam removal agreement.
   (b) The United States and the States of California and Oregon have
made the determinations required under the agreement to effect dam
removal.
   (c) Ratepayer funds required by the agreement have been authorized
and will be timely provided.
   (d) All other conditions required in the agreement have been met.
   79767.  Notwithstanding any other provision of this chapter, of
the funds provided in Section 79760, the sum of fifty million dollars
($50,000,000) shall be allocated to the California State University
for the purposes of funding agricultural water supply, water use,
efficiency, water quality, and related research and education efforts
in accordance with the California State University Water Resources
and Policy Initiatives.
   79768.  For the purposes of this chapter, the terms "restoration"
and "protection" have the meanings set forth in Section 75005 of the
Public Resources Code.
      CHAPTER 10.  GROUNDWATER PROTECTION AND WATER QUALITY


   79770.  The sum of seven hundred million dollars ($700,000,000)
shall be available, upon appropriation by the Legislature from the
fund, for the purposes of this chapter.
   79771.  (a) Three hundred million dollars ($300,000,000) of the
funds provided pursuant to Section 79770 shall be allocated for
expenditures, grants, and loans for projects to prevent or reduce the
contamination of groundwater that serves as a source of drinking
water. 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, including contamination from salinity intrusion, 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 allocated to
projects that benefit disadvantaged communities or economically
distressed areas, including technical and grant writing assistance.
   (e) Of the amount made available by this section, up to one
hundred million dollars ($100,000,000) shall be available for
projects that meet the requirement of this section and both of the
following criteria:
   (1) The project is part of a basinwide management and remediation
plan for which federal funds have been allocated.
   (2) The project addresses 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 identified 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.).
   (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.
   79773.  (a) Three hundred million dollars ($300,000,000) of the
funds provided pursuant to Section 79770 shall be allocated to the
State Water Resources Control Board for competitive grants and loans
for stormwater management and water quality projects pursuant to this
section.
   (b) Eligible projects shall assist in compliance with total
maximum daily load (TMDL) implementation plans and be consistent with
all applicable waste discharge permits.
   (c) Eligible projects include facilities and infrastructure to
reduce, manage, and treat stormwater runoff, including, but not
limited to:
   (1) Detention and retention basins.
   (2) Dry weather diversion facilities, trash filters, and screens.
   (3) Treatment wetlands creation and enhancement.
   (4) Stormwater runoff reduction projects, including permeable
surface installation, cisterns, and collection and treatment
facilities for groundwater recharge.
   (5) Other stormwater management infrastructure for low-impact
development.
   (d) The State Water Resources Control Board shall require not less
than a 50 percent local cost share for grant funds, but may suspend
or reduce the matching requirements for disadvantaged communities and
economically distressed areas.
   (e) The State Water Resources Control Board shall award grants on
a competitive basis, considering the following criteria:
   (1) Water quality benefits of the project, including the project's
ability to reduce impairment of the receiving water body.
   (2) Cost effectiveness.
   (3) Public health benefits of the project.
   (f) Eligible recipients shall include local public agencies and
joint powers authorities.
   79774.  One hundred million dollars ($100,000,000) of the funds
provided pursuant to Section 79770 shall be transferred to the Ocean
Protection Fund established by Section 35650 of the Public Resources
Code for expenditure for projects consistent with Section 35650 of
the Public Resources Code.
      CHAPTER 11.  WATER RECYCLING AND ADVANCED TREATMENT
TECHNOLOGIES


   79780.  (a) The sum of four hundred seventy-five million dollars
($475,000,000) shall be available, upon appropriation by the
Legislature from the fund, for grants and loans for water recycling
and advanced treatment technology projects that include all of the
following:
   (1) Water recycling projects.
   (2) Contaminant and salt removal projects, including groundwater
and seawater desalination.
   (3) Dedicated distribution and storage infrastructure for recycled
water including commercial and industrial end-user retrofit projects
to allow use of recycled water.
   (4) Pilot projects for new salt contaminant removal technology.
   (5) Groundwater recharge infrastructure related to recycled water.

   (6) Technical assistance and grant writing assistance for
disadvantaged communities and economically distressed areas.
   (b) Grants or loans shall require not less than a 50 percent cost
share, but matching requirements may be suspended or reduced for
disadvantaged communities and economically distressed areas. Projects
shall be selected on a competitive basis, considering 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.
   (c) Eligible applicants under this chapter are public agencies,
public utilities, and mutual water companies. To be eligible for
funding under this chapter, projects proposed by public utilities
that are regulated by the Public Utilities Commission and mutual
water companies shall have a clear and definite public purpose and
shall benefit the customers of those respective water systems.
   (d) Of the amount made available in subdivision (a), the sum of
seventy-five million dollars ($75,000,000) shall be allocated to the
department for grants and loans for urban and agricultural water use
efficiency projects.
      CHAPTER 12.  FISCAL PROVISIONS


   79810.  (a) Bonds in the total amount of twelve billion two
hundred fifty million dollars ($12,250,000,000), 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.
   79811.  The bonds authorized by this division shall be prepared,
executed, issued, sold, paid, and redeemed as provided in the State
General Obligation Bond Law, and all of the provisions of that law
apply to the bonds and to this division and are hereby incorporated
in this division as though set forth in full in this division, except
Section 16727 of the Government Code shall not apply to the extent
that it is inconsistent with any other provision of this division.
   79812.  (a) Solely for the purpose of authorizing the issuance and
sale, pursuant to the State General Obligation Bond Law, of the
bonds authorized by this division, the Safe Drinking Water and Water
Supply Reliability Finance Committee is hereby created. For purposes
of this division, the Safe Drinking Water and Water Supply
Reliability 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 to act as that
member in his or her place for all purposes, as though the member
were personally present.
   (c) The Treasurer shall serve as chairperson of the committee.
   (d) A majority of the members of the committee shall constitute a
quorum of the committee, and may act for the committee.
   79813.  The committee shall determine whether or not it is
necessary or desirable to issue bonds authorized pursuant to this
division to carry out the actions specified in this division and, if
so, the amount of bonds to be issued and sold. Successive issues of
bonds may be authorized and sold to carry out those actions
progressively, and it is not necessary that all of the bonds
authorized to be issued be sold at any one time.
   79814.  "Board," as defined in Section 16722 of the Government
Code for the purposes of compliance with the State General Obligation
Bond Law, means the department.
   79815.  There shall be collected each year and in the same manner
and at the same time as other state revenue is collected, in addition
to the ordinary revenues of the state, a sum in an amount required
to pay the principal of, and interest on, the bonds each year, and it
is the duty of all officers charged by law with any duty in regard
to the collection of the revenue to do and perform each and
                                 every act which is necessary to
collect that additional sum.
   79816.  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 79819, appropriated without regard to fiscal years.
   79817.  The board may request the Pooled Money Investment Board to
make a loan from the Pooled Money Investment Account in accordance
with Section 16312 of the Government Code for the purpose of carrying
out this division. The amount of the request shall not exceed the
amount of the unsold bonds that the committee has, by resolution,
authorized to be sold for the purpose of carrying out this division.
The board shall execute those documents required by the Pooled Money
Investment Board to obtain and repay the loan. Any amounts loaned
shall be deposited in the fund to be allocated in accordance with
this division.
   79818.  Notwithstanding any other provision of this division, or
of the State General Obligation Bond Law, if the Treasurer sells
bonds that include a bond counsel opinion to the effect that the
interest on the bonds is excluded from gross income for federal tax
purposes under designated conditions, the Treasurer may maintain
separate accounts for the bond proceeds invested and for the
investment earnings on those proceeds, and may use or direct the use
of those proceeds or earnings to pay any rebate, penalty, or other
payment required under federal law or take any other action with
respect to the investment and use of those bond proceeds, as may be
required or desirable under federal law in order to maintain the
tax-exempt status of those bonds and to obtain any other advantage
under federal law on behalf of the funds of this state.
   79819.  For the purposes of carrying out this division, the
Director of Finance may authorize the withdrawal from the General
Fund of an amount or amounts not to exceed the amount of the unsold
bonds that have been authorized by the committee to be sold for the
purpose of carrying out this division. Any amounts withdrawn shall be
deposited in the fund. Any money made available under this section
shall be returned to the General Fund, with interest at the rate
earned by the money in the Pooled Money Investment Account, from
proceeds received from the sale of bonds for the purpose of carrying
out this division.
   79820.  All money deposited in the fund that is derived from
premiums 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.
   79821.  Pursuant to Chapter 4 (commencing with Section 16720) of
Part 3 of Division 4 of Title 2 of the Government Code, the cost of
bond issuance shall be paid out of the bond proceeds. These costs
shall be shared proportionately by each program funded through this
division.
   79822.  The bonds issued and sold pursuant to this division may be
refunded in accordance with Article 6 (commencing with Section
16780) of Chapter 4 of Part 3 of Division 4 of Title 2 of the
Government Code, which is a part of the State General Obligation Bond
Law. Approval by the electors of the state for the issuance of the
bonds under this division shall include approval of the issuance of
any bonds issued to refund any bonds originally issued under this
division or any previously issued refunding bonds.
   79823.  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. 2.    Section 1 of this act shall be submitted
to the voters at the November 2, 2010, 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. 3.    (a) (1) Notwithstanding Section 9051 of
the Elections Code or any other provision of law, the Attorney
General shall provide and return to the Secretary of State a ballot
title and summary in 10-point type for all state ballot pamphlets of
the November 2, 2010, statewide general election that contains the
following title and summary for ____ Bill ____, adopted by the
Legislature at the 2009-10 Regular Session: 

   "SAFE DRINKING WATER AND WATER SUPPLY RELIABILITY ACT OF 2010" and
in the same square under those words:  
   "____. Authorizes $12.250 billion in general obligation bonds."


   (2) The language in paragraph (1) shall be the only language
included in the title and summary for _____ Bill______, adopted by
the Legislature at the 2009-10 Regular Session, and the Attorney
General shall not supplement, subtract from, or revise that language.
 
   (3) Notwithstanding any other provision of law, including Sections
9050, 9051, 13247, 13262, and 13281 of the Elections Code, the
language in paragraph (1) for the title and summary shall also be the
language included in the ballot label for the condensed statement of
the ballot title, and the Attorney General shall not supplement,
subtract from, or revise that language, except that the Attorney
General may include the fiscal impact summary prepared pursuant to
Section 9087 of the Elections Code and Section 88003 of the
Government Code. The ballot label is the condensed statement of the
ballot title and the financial impact summary.  
   (b) Opposite the square, there shall be left spaces in which the
voters may place a cross in the manner required by law to indicate
whether they vote for or against the act.  
   (c) Where the voting in the election is done by means of voting
machines used pursuant to law in the manner that carries out the
intent of this section, the use of the voting machines and the
expression of the voters' choices by means thereof are in compliance
with this section. 
   SEC. 4.    Section 1 of this act shall take effect
only upon the approval by the voters of the Safe Drinking Water and
Water Supply Reliability Act of 2010, as set forth in that section.

   SEC. 5.    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 finance a critical water supply reliability and water
source protection program as soon as possible, it is necessary that
this act take effect immediately.  
  SECTION 1.    Section 13476 of the Water Code is
amended to read:
   13476.  Unless the context otherwise requires, the following
definitions govern the construction of this chapter:
   (a) "Administration fund" means the State Water Pollution Control
Revolving Fund Administration Fund.
   (b) "Board" means the State Water Resources Control Board.
   (c) "Federal Clean Water Act" or "federal act" means the Clean
Water Act (33 U.S.C. Sec. 1251 et seq.) and acts amendatory thereof
or supplemental thereto.
   (d) "Financial assistance" means assistance authorized under
Section 13480. Financial assistance includes loans, refinancing,
installment sales agreements, purchase of debt, and loan guarantees
for municipal revolving funds, but excludes grants. Financial
assistance may include grants for projects authorized pursuant to
Section 13480 to the extent that grants for those projects are funded
by the federal American Recovery and Reinvestment Act of 2009
(Public Law 111-5).
   (e) "Fund" means the State Water Pollution Control Revolving Fund.

   (f) "Grant fund" means the State Water Pollution Control Revolving
Fund Small Community Grant Fund.
   (g) "Matching funds" means money that equals that percentage of
federal contributions required by the federal act to be matched with
state funds.
   (h) "Municipality" has the same meaning and construction as in the
federal act and also includes all state, interstate, and
intermunicipal agencies.
   (i) "Publicly owned" means owned by a municipality.
   (j) "Severely disadvantaged community" means a community with a
median household income of less than 60 percent of the statewide
median household income.        
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