Source: http://vote96.sos.ca.gov/bp/204text.htm
Timestamp: 2015-01-31 16:07:53
Document Index: 103636045

Matched Legal Cases: ['art 9', 'art 4', 'art 4', 'art 141', 'art 6', 'art 6', 'art 6', 'art 3', 'art 3']

CA Secretary of State - Vote96 - Text of Proposition 204
This - 204 |
Proposition 204: Text of Proposed Law
This law proposed by Senate Bill 900 (Statutes of 1996, Chapter 135) is submitted to the people in
accordance with the provisions of Article XVI of the Constitution. This proposed law amends and adds sections to the Water Code; therefore, existing provisions
SECTION 1. Division 24 (commencing with Section 78500) is added to the Water Code, to read:
78500. This division shall be known and may be cited as the Safe, Clean, Reliable Water Supply
Act. 78500.2. In placing this measure before the voters, the Legislature hereby finds and declares all of
(a) The state faces a water crisis that threatens our economy and environment.
(b) The state's growing population has increasing needs for safe water supplies which are essential
to the public health, safety, and welfare.
(c) It is of paramount importance that the limited water resources of the state be protected from
pollution, and conserved and recycled whenever economically, environmentally, and technically
(d) The state should plan to meet the water supply needs of all beneficial uses of water, including
urban, agricultural, and environmental, utilizing a wide range of strategies including water
conservation and recycling, conjunctive use of surface and groundwater supplies, water transfers,
and improvements in the state's water storage and delivery systems to meet the growing water
(e) This measure is a necessary first step toward providing for the state's long-term water supply
requirements through a number of water management strategies.
(f) The San Francisco Bay/Sacramento San Joaquin Delta Estuary (the Bay-Delta) is of statewide
and national importance. The Bay-Delta provides habitat for more than 120 species of fish and
wildlife and serves as a major link in our water delivery system for businesses and farms statewide
and more than 22 million residents.
(g) The state has signed an historic accord with federal officials and statewide water interests that
calls for the development of a comprehensive and long-term solution for the water supply
reliability, water quality, and environmental problems of the Bay-Delta.
(h) Federal and state representatives have initiated a program known as CALFED, to develop a
comprehensive and long-term solution to the problems associated with the Bay-Delta, including an
equitable allocation of program costs among beneficiary groups. The success of the CALFED
program is vital to the environmental and economic well-being of the state. 78500.4. In enacting this measure, the people of California declare all of the following to be the
objectives of this act:
(a) To provide a safe, clean, affordable, and sufficient water supply to meet the needs of California
residents, farms, and businesses.
(b) To develop lasting water solutions that balance the needs of the state's economy and its
(c) To restore ecological health for native fish and wildlife, and their natural habitats, including
(d) To protect the integrity of the state's water supply system from catastrophic failure due to
earthquakes and flooding.
(e) To protect drinking water quality.
(f) To protect the quality of life in our communities by ensuring recreational opportunities and
maintaining parks, trees, and plants.
78501. Unless the context otherwise requires, the following definitions govern the construction of
(a) ''Bay-delta" means the San Francisco Bay/Sacramento-San Joaquin Delta Estuary.
(b) ''Board" means the State Water Resources Control Board.
(c) ''CALFED" refers to a consortium of five state agencies, including the Resources Agency, the
department, the Department of Fish and Game, the California Environmental Protection Agency,
and the board, and five federal agencies, including the United States Department of Interior, the
United States Bureau of Reclamation, the United States Fish and Wildlife Service, the
Environmental Protection Agency, and the National Marine Fisheries Service, with management
and regulatory responsibilities in the bay-delta.
(d) ''Clean Water Act" means the federal Clean Water Act (33 U.S.C.A. Sec. 1251 et seq.) and
includes any amendments thereto.
(e) ''Committee" means the Safe, Clean, Reliable Water Supply Finance Committee created
pursuant to Section 78693.
(f) ''Delta" means the Sacramento-San Joaquin Delta.
(g) ''Department" means the Department of Water Resources.
(h) ''Fund" means the Safe, Clean, Reliable Water Supply Fund created pursuant to Section 78505.
Chapter 3. Safe, Clean, Reliable Water Supply Fund
78505. The proceeds of bonds issued and sold pursuant to this division shall be deposited in the
Safe, Clean, Reliable Water Supply Fund, which is hereby created.
78525. Unless the context otherwise requires, as used in this chapter, ''account" means the Delta
Improvement Account created by Section 78526. 78526. The Delta Improvement Account is hereby created in the fund. The sum of one hundred
ninety-three million dollars ($193,000,000) is hereby transferred from the fund to the account.
78530. (a) There is hereby created in the account the Central Valley Project Improvement
(b) For the purposes of this article, ''subaccount" means the Central Valley Project Improvement
Subaccount created by subdivision (a). 78530.5. The sum of ninety-three million dollars ($93,000,000) is hereby transferred from the
account to the subaccount for the purpose of implementing this article. 78531. (a) Notwithstanding Section 13340 of the Government Code, the money in the
subaccount is hereby continuously appropriated, without regard to fiscal years, to the Controller, to
be allocated to pay the state's share of the costs for fish and wildlife restoration measures required
by Section 3406 of the Central Valley Project Improvement Act (P.L. 102-575), in accordance
with subdivisions (b) and (c).
(b) Funds appropriated pursuant to subdivision (a) shall be allocated to the Department of Fish and
Game or the department for expenditure pursuant to the terms of the cost-sharing agreement
between the United States and the State of California as required by subsection (h) of Section
3406 of the Central Valley Project Improvement Act, or any agreements supplemental thereto, for
the payment of costs allocated to the state for the protection and restoration of fish and wildlife
resources and habitat pursuant to Section 3406 of that federal act.
(c) The money in the subaccount may be used for both of the following purposes:
(1) To pay for the state's cost-sharing allocations or for actions directly undertaken by the
department or the Department of Fish and Game relating to fish and wildlife restoration actions
required by Section 3406 of the Central Valley Project Improvement Act (P.L. 102-575). For
purposes of this paragraph, and consistent with Attachment C of the ''Principles for Agreement on
Bay-Delta Standards Between the State of California and the Federal Government," dated
December 15, 1994, preference for the screening of diversions shall be given to projects, and
projects within programs, identified in the Central Valley Project Improvement Act (P.L. 102-575)
for which deadlines have been established by state or federal agencies, or by a state or federal
court. Any preference established under this paragraph shall be revised if the deadlines are
extended or eliminated.
(2) To pay for administrative costs incurred in connection with the implementation of this section
by the department and the Department of Fish and Game related to fish and wildlife restoration
measures undertaken pursuant to Section 3406 of the Central Valley Project Improvement Act
(P.L. 102-575), as follows:
(A) Not more than 3 percent of the total amount deposited in the subaccount for the use of the
department may be used to pay the costs incurred in connection with the administration of this
article by the department.
(B) Not more than 3 percent of the total amount deposited in the subaccount for the use of the
Department of Fish and Game may be used to pay the costs incurred in connection with the
administration of this article by the Department of Fish and Game.
78535. (a) There is hereby created in the account the Bay-Delta Agreement Subaccount.
(b) For the purposes of this article, ''subaccount" means the Bay-Delta Agreement Subaccount
created by subdivision (a). 78535.5. The sum of sixty million dollars ($60,000,000) is hereby transferred from the account to
the subaccount for the purpose of implementing this article. 78536. Notwithstanding Section 13340 of the Government Code, the money in the subaccount is
hereby continuously appropriated, without regard to fiscal years, to the Resources Agency, to pay
for the administration of this article and for non-flow-related projects called for in the Water
Quality Control Plan for the Bay-Delta, adopted by the board in Resolution No. 95-24, and as it
may be amended. Those projects are known as ''Category III" activities called for in the ''Principles
for Agreement on Bay-Delta Standards Between the State of California and the Federal
Government," dated December 15, 1994. 78536.5. The Secretary of the Resources Agency shall carry out this article in accordance with
procedures established by CALFED for the purposes of undertaking Category III activities and
other ecosystem restoration programs until the Legislature, by statute, authorizes another entity that
is recommended by CALFED, to carry out this article. 78537. The state shall, to the greatest extent possible, secure federal and nonfederal matching
funds to implement this article. 78538. Not more than 3 percent of the total amount deposited in the subaccount may be used to
pay the costs incurred in connection with the administration of this article.
78540. (a) There is hereby created in the account the Delta Levee Rehabilitation Subaccount.
(b) For the purposes of this article, ''subaccount" means the Delta Levee Rehabilitation Subaccount
created by subdivision (a). 78540.5. The sum of twenty-five million dollars ($25,000,000) is hereby transferred from the
account to the subaccount for the purpose of implementing this article. 78541. Notwithstanding Section 13340 of the Government Code, the money in the subaccount is
hereby continuously appropriated, without regard to fiscal years, to the department, as follows:
(a) Twelve million five hundred thousand dollars ($12,500,000) for local assistance under the delta
levee maintenance subventions program under Part 9 (commencing with Section 12980) of
Division 6, and for the administration of that assistance.
(b) Twelve million five hundred thousand dollars ($12,500,000) for special flood protection
projects under Chapter 2 (commencing with Section 12310) of Part 4.8 of Division 6, subsidence
studies and monitoring, and for the administration of this subdivision. Allocation of these funds
shall be for flood protection projects on Bethel, Bradford, Holland, Hotchkiss, Jersey, Sherman,
Twitchell, and Webb Islands, and at other locations in the delta. 78542. The expenditure of funds under this article is subject to Chapter 1.5 (commencing with
Section 12306) of Part 4.8 of Division 6. 78543. (a) No expenditure of funds may be made under this article unless the Department of Fish
and Game makes a written determination as part of its review and approval of a plan or project
pursuant to Section 12314 or 12987 that the proposed expenditures are consistent with a net
long-term habitat improvement program, and have a net benefit for aquatic species in the delta.
The Department of Fish and Game shall make its determination in a reasonable and timely manner
following the submission of the project or plan to that department. For the purposes of this article,
an expenditure may include more than one levee project or plan.
(b) The memorandum of understanding entered into pursuant to Section 12307 shall be amended
to require, in accordance with this section, that projects or plans be consistent with a net long-term
habitat improvement program in the delta. The memorandum of understanding shall define the
term ''net long-term habitat improvement program in the delta" for purposes of this section. The
memorandum of understanding in effect prior to the amendment required by this section shall
continue to apply to levee projects and plans until the memorandum of understanding is amended. 78544. For the purposes of this article, a levee project includes levee improvements and related
habitat improvements which may be undertaken in the delta at a location other than the location of
that levee improvement. 78545. The expenditure of funds under this article shall result in levee rehabilitation improvement
projects that, to the greatest extent possible, are consistent with the CALFED program.
78550. (a) There is hereby created in the account the South Delta Barriers Subaccount.
(b) For the purposes of this article, ''subaccount" means the South Delta Barriers Subaccount
created by subdivision (a). 78550.5. The sum of ten million dollars ($10,000,000) is hereby transferred from the account to
the subaccount for the purpose of implementing this article. 78551. (a) Notwithstanding Section 13340 of the Government Code, the money in the
subaccount is hereby continuously appropriated, without regard to fiscal years, to the department,
to pay the costs incurred by the department that are not attributable to the State Water Project's or
the Central Valley Project's share of costs for the South Delta Barriers Program, and for the
(b) The costs identified in subdivision (a) include costs incurred for the purpose of mitigating
non-State Water Project or non-Central Valley Project impacts and for the purpose of
environmental enhancement in the delta.
(c) No funds shall be expended under this article unless the Department of Fish and Game
determines, in writing, that a net habitat benefit will result. 78552. Not more than 3 percent of the total amount deposited in the subaccount may be used to
78560. (a) There is hereby created in the account the Delta Recreation Subaccount.
(b) For the purposes of this article, ''subaccount" means the Delta Recreation Subaccount created
by subdivision (a). 78560.5. The sum of two million dollars ($2,000,000) is hereby transferred from the account to
the subaccount for the purposes of implementing this article. 78562. Notwithstanding Section 13340 of the Government Code, the money in the subaccount is
hereby continuously appropriated, without regard to fiscal years, to the Department of Parks and
Recreation to provide for, and improve, public access to, and to maximize public recreational
opportunities on, the lands and waters of the delta in a way that is consistent with existing uses of
the islands, sound resource conservation principles, and appropriate protection for the rights of
private property owners, and for the administration of this article. 78564. The Department of Parks and Recreation may use funds in the subaccount for grants to
local public agencies and nonprofit organizations for the purposes of acquiring fee title,
development rights, easements, or other interests in land located in the delta to provide for, or
improve, public access in the delta. The amount of any grant and the degree of local participation
shall be determined by the fiscal resources of the grant applicant, the degree of public benefit
provided by the proposed project, and other factors prescribed by the Department of Parks and
Recreation. 78565. Any acquisition pursuant to this article shall be from willing sellers. 78566. The Department of Parks and Recreation may adopt regulations to carry out this article. 78568. Not more than 3 percent of the total amount deposited in the subaccount may be used to
78570. (a) There is hereby created in the account the CALFED Subaccount.
(b) For the purposes of this article, ''subaccount" means the CALFED Subaccount created by
subdivision (a). 78571. The sum of three million dollars ($3,000,000) is hereby transferred from the account to
the subaccount for the purposes of Section 78572. 78572. Notwithstanding Section 13340 of the Government Code, the money in the subaccount is
continuously appropriated, without regard to fiscal years, to the department, for the purpose of
paying for the state's share of costs incurred in connection with the CALFED Bay-Delta Program.
78601. Unless the context otherwise requires, as used in this chapter, ''account" means the Clean
Water and Water Recycling Account created by Section 78602. 78602. The Clean Water and Water Recycling Account is hereby created in the fund. The sum of
two hundred thirty-five million dollars ($235,000,000) is hereby transferred from the fund to the
account. 78603. The board may adopt regulations to carry out Article 2 (commencing with Section 78610),
Article 3 (commencing with Section 78620), Sections 78640 to 78644, inclusive, Article 5
(commencing with Section 78647), and Article 6 (commencing with Section 78648). 78603.5. The Department of Food and Agriculture may adopt regulations to carry out Section 78645.
78610. Unless the context otherwise requires, the following definitions govern the construction of
(a) ''Eligible project" means a project or activity described in paragraph (1), (2), (3), or (4) of
subdivision (a) of Section 13480 that is all of the following:
(1) Necessary to prevent water pollution or to reclaim water.
(2) Eligible for funds from the State Revolving Fund Loan Account or federal assistance.
(3) Certified by the board as entitled to priority over other eligible projects.
(4) Complies with applicable water quality standards, policies, and plans.
(b) ''Federal assistance" means money provided to a municipality, either directly or through
allocation by the state, from the federal government to construct eligible projects pursuant to the
(c) ''Municipality" has the same meaning as defined in the Clean Water Act and also includes the
state or any agency, department, or political subdivision thereof, and applicants eligible for
assistance under Sections 1329 and 1330 of Title 33 of the United States Code.
(d) ''Small community" means a municipality with a population of 5,000 persons or less, or a
reasonably isolated and divisible segment of a larger municipality encompassing 5,000 persons or
less, with a financial hardship as determined by the board.
(e) ''Treatment works" has the same meaning as defined in the Clean Water Act. 78611. There is hereby created in the account both of the following subaccounts:
(a) The State Revolving Fund Loan Subaccount.
(b) The Small Communities Grant Subaccount. 78612. The board may, by contract or otherwise, undertake plans, surveys, research,
development, and studies necessary or desirable to carry out this article, and may prepare
recommendations with regard thereto, including the preparation of comprehensive statewide or
areawide studies and reports on the collection, treatment, and disposal of waste under a
comprehensive cooperative plan. 78612.5. Not more than 3 percent of the total amount deposited in the State Revolving Fund
Loan Subaccount and the Small Communities Grant Subaccount may be used for both of the
(a) To pay the costs incurred in connection with the administration of this article.
(b) For the purposes of Section 78612. 78613. The following amounts are hereby transferred from the account to the State Revolving
Fund Loan Subaccount and the Small Communities Grant Subaccount and, notwithstanding
Section 13340 of the Government Code, continuously appropriated, without regard to fiscal years,
from the subaccounts to the board:
(a) Eighty million dollars ($80,000,000) to the State Revolving Fund Loan Subaccount for the
purposes of providing loans pursuant to the Clean Water Act, to aid in the construction or
implementation of eligible projects, and for the purposes described in Section 78612.
(b) Thirty million dollars ($30,000,000) to the Small Communities Grant Subaccount for grants by
the board to small communities for construction of eligible treatment works. If, in the judgment of
the board, the money in the Small Communities Grant Subaccount will not be expended within a
reasonable time, the board may transfer the money to the State Revolving Fund Loan Subaccount
to be used for any of the purposes specified in subdivision (a).
(c) The board may transfer unallocated funds from the State Revolving Fund Loan Subaccount to
the State Water Pollution Control Revolving Fund for the purposes of meeting federal
requirements for state matching funds to provide loans in accordance with the Clean Water Act. 78614. For purposes of subdivision (a) of Section 78613, the board may make loans to
municipalities, pursuant to contract, to aid in the construction or implementation of eligible
projects. 78615. For purposes of subdivision (b) of Section 78613, the board may make grants to small
communities so that any combined federal and state grant does not exceed 97½
percent of the eligible cost of necessary studies, planning, design, and construction of the eligible
project determined in accordance with applicable state law and regulations. The total amount of
grants made pursuant to subdivision (b) of Section 78613, for any single project, may not exceed
three million five hundred thousand dollars ($3,500,000). 78616. Any contract entered into pursuant to this article for loans or grants may include
provisions determined by the board, and shall include all of the following provisions:
(a) An estimate of the reasonable cost of the project.
(b) A description of the type of assistance being offered.
(c) An agreement by the board to pay to the entity, during the progress of the project or following
completion, as agreed upon by the parties, the amount specified in the contract determined
pursuant to applicable federal and state laws and regulations.
(d) An agreement by the public entity to proceed expeditiously with, and complete, the project,
commence operation of the project upon completion, properly operate and maintain the project in
accordance with applicable provisions of law, and provide for payment of the public entity's share
of the cost of the project. 78617. All contracts entered into pursuant to this article for loans or grants are also subject to both
(a) Public entities seeking assistance shall demonstrate, to the satisfaction of the board, that an
adequate opportunity for public participation regarding the project has been provided.
(b) Any election held with respect to the project shall include the voters of the entire municipality
unless the municipality proposes to accept the assistance on behalf of a specified portion or
portions of the municipality, in which case the election shall be held in that portion or portions of
the municipality only. 78618. Any loan made pursuant to subdivision (a) of Section 78613 shall be for a period not to
exceed 20 years, with an interest rate set in accordance with Section 13480. 78619. All principal and interest payments received pursuant to loan contracts entered into
pursuant to this article shall be deposited in the State Revolving Fund Loan Subaccount for
additional loans under subdivision (a) of Section 78613, and shall not be transferred to the General
78620. Unless the context otherwise requires, the following definitions govern the construction of
(a) ''Eligible recycling project" means a water reclamation project that meets applicable reclamation
criteria and water reclamation requirements and that complies with applicable water quality
standards, policies, and plans.
(b) ''Subaccount" means the Water Recycling Subaccount created by Section 78621. 78621. (a) (1) There is hereby created in the account the Water Recycling Subaccount. The sum
of sixty million dollars ($60,000,000) is hereby transferred from the account to the subaccount for
the purpose of implementing this article.
(2) All money repaid to the state pursuant to any contract executed under the Clean Water and
Water Reclamation Bond Law of 1988 (Chapter 17 (commencing with Section 14050) of Division
7) shall be deposited in the subaccount for the purposes of subdivision (b).
(b) Notwithstanding Section 13340 of the Government Code, the money in the subaccount is
hereby continuously appropriated, without regard to fiscal years, to the board for loans to public
agencies to construct, operate, and maintain eligible recycling projects, for loans to aid in the
design and construction of eligible recycling projects, for grants in accordance with Section 78628,
and for the purposes described in Section 78629 and subdivision (a) of Section 78630. 78622. The board may enter into contracts to make loans to public agencies for the purposes set
forth in this article. Factors to be considered by the board in determining whether to enter into a
contract under this article may include, but are not limited to, whether the project is cost-effective
or necessary to protect water quality. 78623. Any contract for a loan entered into pursuant to Section 78622 may include those
provisions determined by the board to be necessary for purposes of this chapter and shall include
both of the following provisions:
(a) An estimate of the reasonable cost of the eligible recycling project.
(b) An agreement by the public agency to proceed expeditiously with, and complete, the eligible
recycling project, commence operation of the project in accordance with applicable provisions of
law, and provide for the payment of the public agency's share of the cost of the project, including
the principal of, and interest on, the loan. 78624. (a) A contract for a loan may not provide for a moratorium on the payment of the
principal of, or interest on, the loan.
(b) Any loan made pursuant to Section 78622 shall be for a period not to exceed 20 years.
(c) The board may enter into a contract for a loan of up to 100 percent of the total eligible cost of
design and construction of an eligible recycling project. 78625. (a) The board shall establish the interest rate for a loan made pursuant to this article at a
rate equal to 50 percent of the interest rate paid by the state on the most recent sale of state general
obligation bonds, to be computed according to the true interest cost method.
(b) If the interest rate so determined is not a multiple of one-tenth of 1 percent, the interest rate
shall be set at the next higher multiple of one-tenth of 1 percent.
(c) The interest rate set for each contract shall be applied throughout the repayment period of the
contract. There shall be a level annual repayment of principal and interest on the loans. 78626. (a) All principal and interest payments received pursuant to loan contracts entered into
pursuant to this article shall be deposited in the subaccount for additional loans under subdivision
(b) of Section 78621, and shall not be transferred to the General Fund.
(b) The board may transfer any unallocated funds in the subaccount to the Water Reclamation
Account in the 1984 State Clean Water Bond Fund for the purposes set forth in Section 13999.10. 78627. All interest earned by assets in the subaccount shall be deposited in the subaccount. 78628. The board may make grants to public agencies for facility planning studies for water
reclamation projects. The amount of the grants may not exceed seventy-five thousand dollars
($75,000) per study. 78629. The board may, by contract or otherwise, undertake plans, surveys, research,
development, and studies necessary, convenient, or desirable to carry out the purposes of this
article, and may prepare recommendations with regard thereto, including the preparation of
comprehensive statewide or areawide studies and reports on water recycling and the collection,
treatment, disposal, and distribution of wastewater under a comprehensive cooperative plan. 78630. Not more than 3 percent of the total amount deposited in the subaccount may be used to
pay for both of the following purposes:
(b) For the purposes of Section 78629.
78640. Unless the context otherwise requires, the following definitions govern the construction of
(a) (1) ''Drainage water management units" means land and facilities for the treatment, storage,
conveyance, reduction, or disposal of agricultural drainage water which, if discharged untreated,
would pollute or threaten to pollute the waters of the state.
(2) Drainage water management units shall include one or more of the following:
(A) A surface impoundment that is designed to hold an accumulation of drainage water, including,
but not limited to, holding, storage, settling, and aeration pits, and lagoons. A surface
impoundment does not include a landfill, a land farm, a pile, an emergency containment dike, tank,
injection well, evaporation pond, or percolation pond.
(C) Facilities or works to treat agricultural drainage water to remove or substantially reduce the
level of constituents which pollute or threaten to pollute the waters of the state, including, but not
limited to, processes utilizing ion exchange, desalting technologies such as reverse osmosis, and
(D) Facilities or works to reduce the amount of agricultural drainage water discharged, including,
but not limited to, source control projects.
(E) Diked areas or cells that are (i) used for the purpose of water conservation, water management,
or environmental mitigation and (ii) located within inland bodies of saline water in Imperial and
(3) Any or all of the drainage water management units, including the land under the unit, may
consist of separable features, or an appropriate share of multipurpose features, of a larger system,
(4) Drainage water management units do not include facilities for the direct discharge of
agricultural drainage water to the bay-delta or Pacific Ocean.
(b) ''Local agency" or ''agency" means any city, county, district, joint powers authority, or other
political subdivision of the state involved with water management.
(c) ''Project" means drainage water management units.
(d) ''Subaccount" means the Drainage Management Subaccount created by Section 78641. 78641. There is hereby created in the account the Drainage Management Subaccount. The sum
of thirty million dollars ($30,000,000) is hereby transferred from the account to the subaccount for
the purpose of implementing this article. 78642. (a) Notwithstanding Section 13340 of the Government Code, the sum of twenty-seven
million five hundred thousand dollars ($27,500,000) in the subaccount is hereby continuously
appropriated, without regard to fiscal years, to the board, for loans to local agencies to aid in the
construction of drainage water management units for the treatment, storage, or disposal of
agricultural drainage water, and for the purposes described in Section 78644. Priority shall be
given to funding source reduction projects and programs.
(b) Notwithstanding Section 13340 of the Government Code, the sum of two million five hundred
thousand dollars ($2,500,000) in the subaccount is hereby continuously appropriated, without
regard to fiscal years, to the board, for grants to local agencies for the purpose of providing the
nonfederal share of the costs specified in Section 1101 of Public Law 102-575. 78643. (a) The board may loan an agency up to 100 percent of the total eligible costs of design
and construction of an eligible project.
(b) Any contract for an eligible project entered into pursuant to this article may include provisions
as determined by the board to be necessary and shall include, but not be limited to, all of the
(2) An agreement by the agency to do all of the following:
(A) Proceed expeditiously with, and complete, the eligible project.
(B) Commence operation of the containment structures or treatment works upon completion and
to properly operate and maintain the works in accordance with applicable provisions of law.
(C) Provide for payment of the agency's share of the cost of the project, including principal and
interest on any state loan made pursuant to this article.
(D) If appropriate, apply for, and make reasonable efforts to secure, federal assistance for the
state-assisted project.
(c) All loans made pursuant to this article are subject to all of the following provisions:
(1) Agencies seeking a loan shall demonstrate, to the satisfaction of the board, that an adequate
opportunity for public participation regarding the loan has been provided.
(2) Any election held with respect to the loan shall include the voters of the entire agency except
where the agency proposes to accept the loan on behalf of a specified portion, or portions, of the
agency, in which case the election shall be held in that portion or portions of the agency only.
(4) Loans shall be for a period of not more than 20 years. The interest rate for the loans shall be
set at a rate equal to 50 percent of the interest rate paid by the state on the most recent sale of state
general obligation bonds, to be computed according to the true interest cost method. If the interest
rate so determined is not a multiple of one-tenth of 1 percent, the interest rate shall be set at the
next higher multiple of one-tenth of 1 percent. The interest rate set for each contract shall be
applied throughout the repayment period of the contract. There shall be a level annual repayment
of principal and interest on loans.
(5) No single project may receive more than five million dollars ($5,000,000) in loan proceeds
from the board under this act and the Water Conservation and Water Quality Bond Law of 1986
(Chapter 6.1 (commencing with Section 13450) of Division 7).
(d) The board may make loans to local agencies, at the interest rates authorized under this article
and under any terms and conditions as may be determined necessary by the board, for purposes of
financing feasibility studies of projects potentially eligible for funding under this article. No single
project shall be eligible to receive more than one hundred thousand dollars ($100,000), and not
more than 3 percent of the total amount of bonds authorized to be expended for the purposes of
this article may be expended for loans to finance feasibility studies. A loan for a feasibility study
shall not decrease the maximum amount of any other loan which may be made under this article. 78644. The board may, by contract or otherwise, undertake plans, surveys, research,
development, and studies necessary, convenient, or desirable to carry out subdivision (a) of
Section 78642. 78645. (a) Any unallocated funds remaining in the Agricultural Drainage Water Account in the
1986 Water Conservation and Water Quality Bond Fund on November 6, 1996, shall be
transferred to the subaccount.
(b) Notwithstanding Section 13340 of the Government Code, any funds that are transferred
pursuant to subdivision (a) to the subaccount are hereby continuously appropriated, without regard
to fiscal years, to the Department of Food and Agriculture for programs to develop methods of
using drainage water and reducing toxic materials in drainage water through reuse of the water and
the use of the remaining salts. Priority shall be given to source reduction projects and programs. 78645.5. Not more than 3 percent of the total amount deposited in the subaccount for the use of
the board may be used to pay for both of the following purposes:
(a) To pay the costs incurred by the board in connection with the administration of this article.
(b) For the purposes of Section 78644. 78645.7. Not more than 3 percent of the total amount deposited in the subaccount for the use of
the Department of Food and Agriculture may be used to pay the costs incurred by that department
in connection with the administration of this article.
78647. (a) (1) There is hereby created in the account the Delta Tributary Watershed Subaccount.
(2) For the purposes of this article, ''subaccount" means the Delta Tributary Watershed
Subaccount created by paragraph (1).
(3) The sum of fifteen million dollars ($15,000,000) is hereby transferred from the account to the
subaccount for the purposes of implementing this article.
hereby continuously appropriated, without regard to fiscal year, to the board for grants for eligible
projects in accordance with this article, and for the administration of this article. 78647.2. (a) The board shall administer a program under which a county, or a joint powers
authority in which a county is a participant, may submit an application to the board for an eligible
project requesting financial or technical assistance for the purpose of developing a voluntary,
incentive-based watershed rehabilitation project. The board shall consult with other federal and
state resource agencies, including, but not limited to, the Department of Fish and Game and the
Department of Forestry and Fire Protection, in the administration of the program. The Resources
Agency shall make a written recommendation to the board regarding each application. The board
shall consider the recommendations of the Resources Agency and include, when appropriate, the
recommendation in the board's final decision.
(b) Notwithstanding subdivision (a), if a county, or a joint powers authority in which a county is a
participant, after a request to do so by a local public agency, declines to submit an application for
an eligible project for a watershed that is all or in part within the boundaries of the county, a local
public agency other than the county or that joint powers agency may submit an application in
accordance with subdivision (a). 78647.4. (a) ''Eligible project" means a watershed rehabilitation project undertaken on lands
owned or operated by the federal, state, or a local government, or a private person or entity within
the delta tributary watershed.
(b) For the purposes of this article, ''delta tributary watershed" means a watershed which drains
into the delta or the Trinity River. 78647.5. An eligible project shall include one or more of the following purposes:
(a) A reduction in the presence of contaminants in drinking water by addressing the origins of the
contaminants, including, to the maximum extent practicable, the specific activities that affect the
drinking water supply of a community or communities. A project with a purpose described in this
subdivision shall address contaminants, including those that are pathogenic organisms, for which a
national primary drinking water regulation has been established, and that are detected in the
community water system for which the application is submitted at levels above the maximum
contaminant level or that are detected by adequate monitoring methods at levels that are not
reliably and consistently below the maximum contaminant level.
(b) An increase in the yield of water available from, and water retention capabilities of, the
watershed, including projects to reduce dense forest understory, restore upland meadows, and
repair stream channels.
(c) The improvement, restoration, or enhancement of fisheries habitat, including riparian habitat,
in and along streams and watercourses in the watershed. Projects may address factors which
increase sedimentation in streams and watercourses in the watershed.
(d) The improvement of overall forest health, including the reduction of factors which may
contribute to the severity of wildfires in the watershed. 78647.6. (a) Every project funded under this article shall comply with state and federal law,
regulations, and policies, and shall not degrade the quality of any waters of the state.
(b) An application submitted to the board under this article shall include all of the following
(1) An identification of any deficiencies in information that may impair the development or
(2) A discussion of the efforts undertaken to implement the project and to obtain the participation
(A) Public agencies with relevant responsibilities in the watershed.
(B) Persons and entities in the watershed who may be affected by recommendations of the project
and whose participation is essential to the success of the project.
(3) Evidence in the form of a statement from a private person or entity that that person or entity
consents to the inclusion of private property in the project, as appropriate.
(4) A monitoring plan to determine whether project purposes are satisfied.
(5) An outline of the way in which project participants will, during the development and
implementation of the project, identify and take into account any activities being undertaken by
persons or entities in the watershed under federal or state law to rehabilitate the watershed. A
project shall include voluntary and incentive-based strategies for the long-term rehabilitation of the
(6) An identification of the technical, financial, or other assistance that the applicant will request to
develop or implement the project.
(7) When feasible, an identification of quantifiable, innovative, and cost-effective methods for
achieving project purposes. 78647.7. An application submitted to the board under Section 78647.6 shall also include the
(a) A delineation of the watershed area or areas critical for project purposes using available
hydrogeologic or other pertinent information. If no information is available, the project shall
conduct, to the extent practicable, vulnerability assessments in the watershed area, including
identification of risks to drinking water, a project may use delineations and vulnerability
assessments undertaken to identify groundwater sources under a wellhead protection program,
surface or groundwater sources under a pesticide management plan, or surface water sources
under a state or local watershed initiative, or undertaken in accordance with Subpart H
(commencing with Section 141.70) of Part 141 of Title 40 of the Code of Federal Regulations.
(b) An identification, to the maximum extent practicable, of the origins of drinking water
contaminants that may be addressed by a project, including, to the maximum extent practicable, a
description of the specific activities contributing to the presence of the contaminants in the
watershed. 78647.8. The board may approve a grant for an eligible project to develop or implement a project,
not to exceed one million dollars ($1,000,000) per project. A grant shall not exceed 50 percent of
the administrative costs incurred, or estimated to be incurred, by the applicant in connection with
carrying out the project. 78647.10. (a) After providing notice and an opportunity for public comment with regard to an
application submitted under Section 78647.6, the board shall approve or disapprove the
application, in whole or in part, not later than 120 days after the date of submission of the
application. The board shall prepare, and transmit to the Resources Agency and the applicant,
written findings with regard to the recommendations of the Resources Agency.
(b) The board may approve an application if the application meets the requirements established
under this article. The notice of approval shall include all of the following:
(1) The identification of technical, financial, or other assistance that the board agrees to provide to
assist in the development or implementation of a project.
(2) Any necessary coordination that the board will perform.
(3) A description of any funds available for the purpose of developing and implementing the
project, including any funds in a water pollution control revolving fund established in connection
with Subchapter VI (commencing with Section 1381) of the Clean Water Act.
(4) A description of other technical or financial assistance that is available under state or federal
law for the purpose of developing or implementing the project.
(5) A description of activities that are undertaken, or will be undertaken, to coordinate federal and
state programs which are relevant to the watershed that is the subject of the application.
(c) If the board disapproves an application submitted under Section 78647.6, the board shall notify
the entity submitting the application in writing of the reasons for disapproval. An application may
be resubmitted under either of the following circumstances:
(1) New information becomes available.
(2) Conditions affecting the watershed that is the subject of the application change. 78647.12. The board may adopt regulations to implement this article. The regulations shall
(a) Criteria for the assessment of watershed areas.
(b) Procedures for the submission of applications.
(c) Procedures for the approval or disapproval of an application submitted under Section 78647.6. 78647.14. Grant recipients shall submit a report on completion of the project to the board
indicating whether the purposes of the project have been met. The board shall make the report
available to interested federal, state, and local agencies. 78647.16. Not more than 3 percent of the total amount deposited in the subaccount may be used
to pay the costs incurred in connection with the administration of this article.
78648. Unless the context otherwise requires, the following definitions govern the construction of
(a) (1) ''Eligible seawater intrusion control project" means a project which is all of the following:
(A) Necessary to protect groundwater that is (i) within a basin that is subject to a local
groundwater management plan for which a review is completed pursuant to the California
Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public
Resources Code) and (ii) is threatened by seawater intrusion in an area where restrictions on
groundwater pumping, a physical solution, or both, are necessary to prevent the destruction of, or
irreparable injury to, groundwater quality.
(B) Is cost-effective. In the case of a project to provide a substitute water supply, the project shall
be cost-effective as compared to the development of other new sources of water and shall include
requirements or measures adequate to ensure that the substitute supply will be used in lieu of
previously established extractions or diversions of groundwater.
(C) Complies with applicable water quality standards, policies, and plans.
(2) Eligible projects may include, but are not limited to, water conservation, freshwater well
injection, and substitution of groundwater pumping from local surface supplies.
(b) ''Local agency" means any city, county, district, joint powers authority, or other political
subdivision of the state involved in water management.
(c) ''Subaccount" means the Seawater Intrusion Control Subaccount created by Section 78648.2. 78648.2. (a) There is hereby created in the account the Seawater Intrusion Control Subaccount.
The sum of ten million dollars ($10,000,000) is hereby transferred from the account to the
(b) Notwithstanding Section 11340 of the Government Code, the money in the subaccount is
hereby continuously appropriated, without regard to fiscal year, to the board for loans to local
agencies to carry out eligible seawater intrusion control projects and for the purposes described in
this article, and for the administration of this article. 78648.4. The board may enter into contracts to make loans to local agencies for the purposes set
forth in this article. 78648.6. Any contract for a loan entered into pursuant to Section 78648.4 may include those
provisions determined by the board to be necessary for purposes of this article and shall include
(a) An estimate of the reasonable cost of the eligible seawater intrusion control project.
(b) An agreement by the local agency to proceed expeditiously with, and complete, the eligible
seawater intrusion control project, commence operation of the project in accordance with
applicable provisions of law, and provide for the payment of the local agency's share of the cost of
the project, including the principal of, and interest on, the loan. 78648.8. (a) A contract for a loan may not provide for a moratorium on the payment of the
(b) Any loan made pursuant to Section 78648.4 shall be for a period not to exceed 20 years.
(c) The board may enter into a contract for a loan up to 100 percent of the total eligible cost of
design and construction of an eligible seawater intrusion control project. 78648.10. (a) The board shall establish the interest rate for a loan made pursuant to this article at
a rate equal to 50 percent of the interest rate paid by the state on the most recent sale of state
general obligation bonds, to be computed according to the true interest cost method.
contract. There shall be a level annual repayment of principal and interest on the loans. 78648.12. All principal and interest payments received pursuant to loan contracts entered into
pursuant to this article shall be deposited in the subaccount. 78648.14. The board may, by contract or otherwise, undertake plans, surveys, research,
article. 78648.16. Not more than 3 percent of the total amount deposited in the subaccount may be used
to pay for both of the following:
(b) For the purposes of Section 78648.14.
78650. Unless the context otherwise requires, as used in this article, ''subaccount" means the Lake
Tahoe Water Quality Subaccount created by Section 78650.2. 78650.2. (a) There is hereby created in the account the Lake Tahoe Water Quality Subaccount.
subaccount for the purpose of implementing this article.
hereby continuously appropriated, without regard to fiscal years, to the California Tahoe
Conservancy for the purposes of directly undertaking, or for grants to public agencies for, land
acquisition and improvement programs which control soil erosion, restore watersheds, or preserve
environmentally sensitive lands and the natural environment, and related implementation costs,
pursuant to Title 7.42 (commencing with Section 66905) of the Government Code. 78650.4. Any acquisition pursuant to this article shall be from willing sellers.
78651. Unless the context otherwise requires, as used in this chapter, ''account" means the Water
Supply Reliability Account created by Section 78652. 78652. The Water Supply Reliability Account is hereby created in the fund. The sum of one
hundred seventeen million dollars ($117,000,000) is hereby transferred from the fund to the
78655. (a) (1) There is hereby created in the account the Feasibility Projects Subaccount.
(2) For the purposes of this article, ''subaccount" means the Feasibility Projects Subaccount
created by paragraph (1).
(b) The sum of ten million dollars ($10,000,000) is hereby transferred from the account to the
subaccount for the purpose of implementing this article. 78656. Notwithstanding Section 13340 of the Government Code, the money in the subaccount is
hereby continuously appropriated, without regard to fiscal year, to the department, for the
administration of this article and for feasibility and environmental investigations for any of the
(a) Off-stream storage upstream of the delta that will provide storage and flood control benefits in
an environmentally sensitive and cost-effective manner.
(b) Regional water recycling that may include partnerships or other cooperative efforts undertaken
by water agencies, wastewater dischargers, or other public agencies to collect and reuse treated
municipal wastewater for agricultural, industrial, residential, and environmental purposes.
(c) Water transfer facilities in a county of the third class that would increase capacity for delivering
Colorado River water for use in the southern California coastal plain and reduce demands on the
bay-delta.
(d) Desalination. 78657. Not more than 3 percent of the total amount deposited in the subaccount may be used to
78670. Unless the context otherwise requires, the following definitions govern the construction of
(a) (1) ''Groundwater recharge facilities" means land and facilities for artificial groundwater
recharge through methods which include, but are not limited to, percolation using basins, pits,
ditches and furrows, modified streambed, flooding, and well injection and in-lieu recharge.
''Groundwater recharge facilities" also means capital outlay expenditures to expand, renovate, or
restructure land and facilities already in use for the purpose of groundwater recharge and to
acquire additional land for retention and detention basins.
(2) Groundwater recharge facilities may include any of the following:
(A) Instream facilities for regulation of water levels, but not regulation of streamflow to
accomplish diversion from the waterway.
(B) Agency-owned facilities for extraction.
(C) Conveyance facilities to the recharge site, including devices for flow regulation and
measurement of recharge waters.
(3) Any part or all of the project facilities, including the land under the facilities, may consist of the
separable features, or an appropriate share of multipurpose features, of a larger system, or both.
(b) ''In-lieu recharge" means accomplishing increased storage of groundwater by providing
interruptible surface water to a user who relies on groundwater as a primary supply, to accomplish
groundwater storage through the direct use of that surface water in lieu of pumping groundwater.
In-lieu recharge is used instead of continuing pumping while artificially recharging with the
interruptible surface waters. However, bond proceeds may not be used to purchase surface water
for use in lieu of pumping groundwater.
(c) ''Local agency" or ''agency" means any city, county, district, joint powers authority, or other
(d) ''Project" means both of the following:
(e) ''Subaccount" means the Water Conservation and Groundwater Recharge Subaccount created
by Section 78671.
(f) (1) ''Voluntary, cost-effective capital outlay water conservation programs" mean those feasible
capital outlay measures to improve the efficiency of water use through programs, the benefits of
which exceed their costs.
(2) (A) The programs include, but are not limited to, all of the following:
(i) The lining or piping of ditches.
(ii) Improvements in water distribution system controls such as automated canal control,
construction of small reservoirs within distribution systems that conserve water that has already
been captured for use, and related physical improvements.
(iii) Tailwater pumpback recovery systems.
(iv) Major improvements or replacements of distribution systems to reduce leakage.
(v) Capital changes in on-farm irrigation systems which improve irrigation efficiency such as
sprinkler or subsurface drip.
(vi) Capital outlay features of urban water conservation programs identified in the ''Memorandum
of Understanding Regarding Urban Water Conservation in California," as amended on March 9,
(vii) Conveyance facilities in a county of the third class, including appurtenances, necessary to
implement a long-term conservation program to transfer conserved water from areas not directly
receiving water from the bay-delta to areas that receive water from the bay-delta and whose
demands on the bay-delta would be reduced as a result of the transfer.
(B) In each case, the department shall determine if there is a net savings of water as a result of
each proposed project and the project is cost-effective. 78671. (a) There is hereby created in the account the Water Conservation and Groundwater
Recharge Subaccount. The sum of thirty million dollars ($30,000,000) is hereby transferred from
the account to the subaccount.
(b) Notwithstanding Section 13340 of the Government Code, the sum of twenty-five million
dollars ($25,000,000) is hereby continuously appropriated, without regard to fiscal years, to the
department, for loans to local agencies to aid in the acquisition and construction of voluntary,
cost-effective capital outlay water conservation programs and groundwater recharge facilities. 78672. Any loan contract entered into pursuant to this article may include provisions determined
to be necessary by the department. 78672.5. (a) Any loan contract concerning an eligible, voluntary, cost-effective capital outlay
water conservation program shall be supported by, or shall include, all of the following:
(3) A provision that there shall be no moratorium or deferment on payments of principal or
(4) A loan period of not more than 20 years with an interest rate set at a rate equal to 50 percent of
the interest rate paid by the state on the most recent sale of state general obligation bonds, to be
computed according to the true interest cost method. If the interest rate so determined is not a
multiple of one-tenth of 1 percent, the interest rate shall be set at the next higher multiple of
one-tenth of 1 percent. The interest rate set for each contract shall be applied throughout the
repayment period of the contract. There shall be a level annual repayment of principal and interest
on the loans.
(5) A provision that the project shall not receive any more than five million dollars ($5,000,000) in
loan proceeds from the department.
(b) The department shall give preference for loans under this section on the basis of the
cost-effectiveness of the proposed project, with the most cost-effective projects receiving the
highest preference. 78673. (a) Any loan contract concerning an eligible project for groundwater recharge shall be
supported by, or shall include, all of the following:
(1) A finding by the department that the agency has the ability to repay the requested loan, that the
project is economically justified, and that the project is feasible from an engineering and
hydrogeologic viewpoint.
(2) An estimate of the reasonable cost and benefit of the project, including a feasibility report
which shall set forth the economic justification and the engineering, hydrogeologic, and financial
feasibility of the project, and shall include explanations of the proposed facilities and their relation
to other water-related facilities in the basin or region.
(3) An agreement by the agency to proceed expeditiously to complete the project in conformance
with the approved plans and specifications and the feasibility report and to operate and maintain
the project properly upon completion throughout the repayment period.
(4) A provision that there shall be no moratorium or deferment on payment of principal or interest. (5) A loan period of not more than 20 years with an interest rate set at a rate equal to 50 percent of
(6) A provision that the project shall not receive more than five million dollars ($5,000,000) in
(b) The department shall give preference under this section to projects for groundwater recharge
that are located in overdrafted groundwater basins and those projects of critical need, to projects
whose feasibility studies show the greatest economic justification and the greatest engineering and
hydrogeologic feasibility as determined by the department, and to projects located in areas which
have existing water management programs. 78674. The department may make loans to local agencies, at the interest rates authorized under
this article and under any terms and conditions as may be determined necessary by the department,
for the purposes of financing feasibility studies of projects potentially eligible for funding under
this article. No single project shall be eligible to receive more than one hundred thousand dollars
($100,000), and not more than 3 percent of the total amount of bonds authorized to be expended
for purposes of this article may be expended for the purposes of financing feasibility studies. A
loan for a feasibility study shall not decrease the maximum amount of any other loan which may
be made under this article. 78675. Any repayments of loans made pursuant to this article, including interest payments, and all
interest earned on, or accruing to, any money in the subaccount, shall be deposited in the
subaccount and shall be available for the uses described in this article. 78675.5. Notwithstanding Section 13340 of the Government Code, the sum of five million dollars
($5,000,000) in the subaccount is hereby continuously appropriated, without regard to fiscal years,
to the department for a grant to a local agency for the development of supplemental water sources,
distribution systems, and recharge facilities in a watershed that is in a state of overdraft and whose
ability to locally finance the facilities has been adversely affected by the Base Closure and
Realignment Act of 1990 (P.L. 101-510). 78676. Not more than 3 percent of the total amount deposited in the subaccount may be used to
78680. (a) (1) There is hereby created in the account the Local Projects Subaccount.
(2) For the purposes of this article ''subaccount" means the Local Projects Subaccount created by
(3) The sum of twenty-five million dollars ($25,000,000) is hereby transferred from the account to
the subaccount for the purposes of implementing this article.
hereby continuously appropriated, without regard to fiscal years, to the department, for grants and
loans in accordance with this article, and for the administration of this article. 78680.2. It is the intent of this article to finance a program to further the development, control,
and conservation of the water resources of the state by assisting public agencies in the construction
of eligible projects undertaken to meet local requirements in which there is a statewide interest. 78680.4. The following definitions govern the construction of this article:
(a) ''Feasibility study" means a report on the feasibility of a project, dam, or reservoir. A feasibility
study may include an environmental impact report prepared pursuant to Division 13 (commencing
with Section 21000) of the Public Resources Code.
(b) ''Project" means any of the following:
(1) The construction of a conveyance facility, pumping facility, groundwater extraction facility,
clear or ranney well, or facility for diversion from existing storage or conveyance facilities
undertaken by a public agency for the diversion, storage, or distribution of water primarily for
domestic, municipal, agricultural, industrial, recreation, or fish and wildlife mitigation and
enhancement purposes.
(2) Fish and wildlife mitigation and enhancement measures undertaken by a public agency,
including the acquisition of lands which may be necessary for the mitigation of significant impact
on fish and wildlife resources resulting from the implementation of a project undertaken pursuant
to paragraph (1).
(c) ''Public agency" means any city, county, city and county, special district or other political
subdivision of the state, including a joint powers entity created pursuant to Chapter 5 (commencing
with Section 6500) of Division 7 of Title 1 of the Government Code, in a county of the 22nd class
or any county having a smaller population than a county of the 22nd class on the date on which
this division becomes effective. 78680.6. The department shall carry out this article and shall give preference to projects
undertaken to develop new water supplies and to mitigate significant environmental impacts
resulting from those projects. 78680.8. Applications for grants or loans for financial assistance under this article shall be made
to the department in the form and with those supporting materials that are prescribed by the
department. 78680.10. (a) The department may make grants to public agencies for feasibility studies.
(b) The amount of the grants may not exceed five hundred thousand dollars ($500,000). 78680.12. (a) The department may make loans to public agencies for projects. Loans for a single
project may not exceed five million dollars ($5,000,000).
(b) All loan applications shall include information relating to the public necessity of the project, the
urgency of need, the engineering feasibility, the economic justification, and the financial feasibility
of the project, as well as other information that the department may require.
(c) All loans made pursuant to this section are subject to all of the following requirements:
(1) Public agencies requesting a loan shall demonstrate, to the satisfaction of the department, that
an adequate opportunity for public participation regarding the loan has been provided.
agency, in which case the election shall be held only in that portion or portions of the agency.
(3) Loan contracts may not provide for a moratorium on payment of principal or interest.
(4) Loans shall be for a period of up to 20 years. The interest rate for the loans shall be set at a
rate of equal to 50 percent of the interest rate paid by the state on the most recent sale of state
applied throughout the contract's repayment period. There shall be a level annual repayment of
principal and the interest on the loans. 78680.14. (a) The department may also make loans to public agencies for the acquisition of
interest in lands that are necessary for the construction, operation, or maintenance of a project.
(b) Loans granted pursuant to this section shall be subject to all of the following conditions:
(1) The loan may be made for all or any part of the costs of acquiring interests in lands for a
project that has been identified as the preferred alternative in an environmental impact report or an
environmental impact statement, and the lands may become unavailable to the public agency for
the purposes of developing that project.
(2) The loans shall not exceed one million dollars ($1,000,000) for each acquisition under this
(3) Each loan granted pursuant to this section is subject to subdivision (c) of Section 78680.12.
78680.16. Each contract which the department enters into for a loan pursuant to Section 78680.14
shall require the sale of the interests in lands that are acquired with the loan funds if, in
the department's determination, the construction of the project has not commenced within a period
of two years from the date of the first disbursement of loan funds under the contract or within any
extension of such period that is granted by the department. In that event, the contract shall require
that the interests in lands be offered for sale within six months from the expiration of the two-year
period, or any extension thereof, and shall require that the proceeds of the sale be applied toward
the repayment of the principal amount of the loan and toward the payment of the accrued interest
thereon. Any remaining proceeds, after deducting the administrative costs of the public agency
identified in connection with the purchase and sale of the interests in lands, shall be repaid to the
department. 78680.18. Notwithstanding any provision of law, any land acquired with the use of loan funds
made available pursuant to Section 78680.14, that is located outside the boundaries of the public
agency acquiring the land and which was subject to taxation at the time of acquisition thereof, shall
remain subject to taxation. 78680.20. (a) The department may adopt regulations to carry out this article. Notwithstanding any
provisions of law, regulations adopted by the department pursuant to Chapter 2.3 (commencing
with Section 450.1) of Division 2 of Title 23 of the California Code of Regulations that are in
effect on November 6, 1996, may be used to carry out this article.
(b) Not more than 3 percent of the total amount deposited in the subaccount may be used to pay
the costs incurred in connection with the administration of this article.
78681. (a) There is hereby created in the account the Sacramento Valley Water Management and
Habitat Protection Subaccount.
(b) For the purposes of this article, ''subaccount" means the Sacramento Valley Water
Management and Habitat Protection Subaccount created by subdivision (a). 78681.2. The sum of twenty-five million dollars ($25,000,000) is hereby transferred from the
account to the subaccount for the purpose of implementing this article. 78681.4. Notwithstanding Section 13340 of the Government Code, the money in the subaccount
is hereby continuously appropriated, without regard to fiscal years, to the department, for
programs or projects in the Sacramento Valley to assist in the implementation of the Water Quality
Control Plan for the Bay-Delta adopted by the board in Resolution No. 95-24 on May 22, 1995,
and as it may be amended. 78681.8. The board shall provide adequate public review for proposed programs or projects and
shall determine that those programs or projects are consistent with the requirements of Section 78681.4. 78681.9. Only the programs or projects that are not the obligation of the federal Central Valley
Project or the State Water Project may be funded under this article. 78681.10. Not more than 3 percent of the total amount deposited in the subaccount for the use of
the department may be used to pay the costs incurred in connection with the administration of this
78682. (a) (1) There is hereby created in the account the River Parkway Subaccount.
(2) For the purposes of this article, ''subaccount" means the River Parkway Subaccount created by
(b) The sum of twenty-seven million dollars ($27,000,000) is hereby transferred from the account
to the subaccount for the purpose of implementing this article. 78682.2. The money in the subaccount shall be made available, upon appropriation by the
Legislature, for the acquisition and restoration of riparian habitat, riverine aquatic habitat, and
other lands in close proximity to rivers and streams and for river and stream trail projects
undertaken in accordance with any of the following provisions:
(a) Chapter 4 (commencing with Section 1300) and Chapter 4.1 (commencing with Section 1385)
of Division 2 of the Fish and Game Code.
(b) Chapter 5 (commencing with Section 31200), Chapter 6 (commencing with Section 31251),
and Chapter 9 (commencing with Section 31400), of Division 21 of the Public Resources Code.
(c) Division 22.5 (commencing with Section 32500) of the Public Resources Code.
(d) Urban river park acquisition and restoration projects undertaken pursuant to Division 23
(commencing with Section 33000) of the Public Resources Code.
(e) River parkway projects undertaken by a state agency, city, county, city and county, or pursuant
to a joint powers agreement between two or more of these entities. 78682.4. At least 50 percent of the funds in the subaccount shall be used for projects that are
located in, or in close proximity to, major metropolitan areas. 78682.6. Not more than 3 percent of the total amount deposited in the subaccount may be used to
Chapter 7. CALFED Bay-Delta Ecosystem Restoration Program
78684. Unless the context otherwise requires, all of the following definitions govern the
construction of this chapter.
(a) ''Account" means the Bay-Delta Ecosystem Restoration Account created by Section 78684.6.
(b) ''Bay-delta ecosystem" means the bay-delta and its tributary watersheds.
(c) ''CALFED Bay-Delta Program" or ''program" means the undertaking by CALFED to develop,
by means of the programmatic EIS/EIR, a preferred alternative of programs, actions, projects, and
related activities which will provide solutions to identified problem areas related to the bay-delta
(d) (1) ''Eligible project" means a project or program, or an element of a project or program,
identified in the final programmatic EIS/EIR, that is intended to improve and increase aquatic and
terrestrial habitats and improve ecological functions in the bay-delta ecosystem.
(2) Eligible projects may include, but are not limited to, projects or programs with any of the
(A) The protection and enhancement of existing habitat.
(B) The restoration of tidal, shallow water, riparian, riverine, wetlands, and other habitats.
(C) The expansion of wetlands protection programs.
(D) The acquisition of water for instream flow improvements.
(E) Improved habitat management.
(F) Improved management of introduced species.
(G) Improved fish protection and management.
(3) Eligible projects shall not include any of the following:
(A) Any water conveyance facilities.
(B) Any component of the CALFED Bay-Delta Program that is not identified in the final
programmatic EIS/EIR as a component of the ecosystem restoration element.
(C) Any programs or projects undertaken to offset or avoid adverse environmental conditions
which the final programmatic EIS/EIR determines would be caused by the construction, operation,
or implementation of any element of the CALFED Bay-Delta Program other than the ecosystem
restoration element.
(e) ''Programmatic EIS/EIR" means the programmatic environmental impact
statement/environmental impact report that is prepared by CALFED for the CALFED Bay-Delta
Program. 78684.2. The Legislature hereby finds and declares all of the following:
(a) CALFED is in the process of preparing a programmatic EIS/EIR for a long-term
comprehensive plan that will resolve problems related to ecosystem restoration, water quality,
water supplies, and water management for beneficial uses of the bay-delta ecosystem, and system
(b) The CALFED Bay-Delta Program, to the extent that it relates to restoration in the bay-delta
ecosystem, is of statewide and national importance. The state should participate in the funding of
eligible projects as a part of its ongoing program to improve environmental conditions in the
bay-delta ecosystem.
(c) The programmatic EIS/EIR will include a schedule for funding and implementing all elements
of the long-term comprehensive plan.
(d) The CALFED Bay-Delta Program elements will achieve balanced solutions in all identified
problem areas, including the ecosystem, water supply, water quality, and system integrity. 78684.4. This chapter does not authorize implementation of the CALFED Bay-Delta Program or
any element of the program. The implementation of the CALFED Bay-Delta Program, or any
element of the program, shall only be undertaken pursuant to authority provided by law other than
this division. 78684.6. (a) The Bay-Delta Ecosystem Restoration Account is hereby created in the fund for the
purpose of funding eligible projects. The sum of three hundred ninety million dollars
($390,000,000) is hereby transferred from the fund to the account.
(b) Notwithstanding Section 13340 of the Government Code, the money in the account is hereby
continuously appropriated, without regard to fiscal years, to the Resources Agency for the
purposes set forth in this chapter, and for the administration of this chapter. 78684.8. The Secretary of the Resources Agency shall carry out this chapter in accordance with
procedures established by CALFED for the purposes of ecosystem restoration until the
Legislature, by statute, authorizes another entity, that is recommended by CALFED, to carry out
this chapter. 78684.10. No funds in the account may be expended until all of the following conditions have
(a) The final programmatic EIS/EIR has been certified by the state lead agency and a notice of
determination has been issued as required by Division 13 (commencing with Section 21000) of the
(b) The identical final programmatic EIS/EIR has been filed by the federal lead agencies with the
Environmental Protection Agency, the required notice has been published in the Federal Register,
and there has been federal approval of the identical program approved by the state.
(c) A cost-sharing agreement has been entered into by the State of California and the United
States, pursuant to which the United States agrees to share in the costs of eligible projects. 78684.12. Due to the importance of issuing permits and otherwise expediting all elements of the
CALFED Bay-Delta Program in a timely and balanced manner, the following procedures apply to
the use of funds authorized by this chapter:
(a) After the requirements set forth in Section 78684.10 are met, funds in the account shall
become available for use in accordance with the schedule for eligible projects set forth in the final
programmatic EIS/EIR, unless and until the Secretary of the Resources Agency determines that the
schedule established in the final programmatic EIS/EIR has not been substantially adhered to.
(b) Prior to November 15 of each year, the Secretary of the Resources Agency, in consultation
with state and federal CALFED representatives and other interested persons and agencies, shall
review adherence to the schedule.
(c) The absence of funding from nonfederal or nonstate sources shall not be a basis for a
determination that the schedule has not been adhered to.
(d) If, at the conclusion of each annual review, the Secretary of the Resources Agency determines
that the schedule established in the final programmatic EIS/EIR, or a revised schedule prepared
pursuant to this subdivision, has not been substantially adhered to, the secretary, after notice to,
and consultation with, state and federal CALFED representatives and other interested persons and
agencies, shall prepare a revised schedule that ensures that balanced solutions in all identified
problem areas, including ecosystem restoration, water supply, water quality, and system integrity
are achieved, consistent with the intent of the final programmatic EIS/EIR. Funds shall be available
for expenditure unless a revised schedule has not been developed within six months from the date
on which the secretary determines that the prior schedule has not been substantially adhered to.
Upon the preparation of any revised schedule under this subdivision, funds shall be expended in
accordance with that revised schedule.
(e) Specific project and program decisions involving the expenditure of funds in the account shall
be made in accordance with the procedures established by CALFED for the ecosystem restoration
program. 78684.13. On or before December 15 of each year, the Secretary of the Resources Agency shall
submit an annual report to the Legislature that describes the status of the implementation of all
elements of the CALFED Bay-Delta Program, any determinations made by the secretary pursuant
to subdivisions (b) and (d) of Section 74684.12, and other significant scheduling issues. The report
also shall include a detailed accounting of expenditures, descriptions of programs for which
expenditures have been made, and a schedule of anticipated expenditures for the next year.
78684.14. Not more than 3 percent of the total amount deposited in the account may be used to
pay the costs incurred in connection with the administration of this chapter.
78686. Unless the context otherwise requires, as used in this chapter, ''account" means the Flood
Control and Prevention Account created by Section 78686.10.
78686.10. The Flood Control and Prevention Account is hereby created in the fund. The sum of
sixty million dollars ($60,000,000) is hereby transferred from the fund to the account. 78686.12. (a) Notwithstanding Section 13340 of the Government Code, the money in the account
is hereby continuously appropriated, without regard to fiscal years, to the department for the
purposes set forth in subdivision (b).
(b) (1) The money in the account shall be used to pay for the state's share of the nonfederal costs
of flood control and flood prevention projects that have been adopted and authorized in
accordance with one or more of the following provisions of law:
(A) The State Water Resources Law of 1945 (Chapter 1 (commencing with Section 12570) and
Chapter 2 (commencing with Section 12630) of Part 6 of Division 6).
(B) The Flood Control Law of 1946 (Chapter 3 (commencing with Section 12800) of Part 6 of
Division 6).
(C) The California Watershed Protection and Flood Prevention Law (Chapter 4 (commencing with
Section 12850) of Part 6 of Division 6).
(2) The money in the account may only be used to pay for costs for which valid written claims
have been submitted to the department on or before June 30, 1996. Funds which are made
available under this chapter shall be allocated on a pro rata basis to projects in the Counties of
Contra Costa, Fresno, Kern, Los Angeles, Orange, Riverside, San Bernardino, San Diego, and
Santa Clara, based on the amount of available funds relative to the total eligible claims.
78688. Nothing in this division diminishes, or otherwise affects, the requirements of the California
Resources Code) or the National Environmental Policy Act of 1969 (42 U.S.C. Sec. 4321 et seq.).
78690. The proceeds of bonds issued and sold pursuant to this division shall be deposited in the
State Treasury to the credit of the Safe, Clean, Reliable Water Supply Fund, created by Section 78505. 78691. Bonds in the total amount of nine hundred ninety-five million dollars ($995,000,000), not
including the amount of any refunding bonds issued in accordance with Section 78700, or as 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 be used 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. 78692. (a) 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.
(b) For purposes of the State General Obligation Bond Law, the State Water Resources Control
Board is designated the ''board." 78693. 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, Clean, Reliable Water
Supply Finance Committee is hereby created. For purposes of this division, the Safe, Clean,
Reliable Water Supply Finance Committee is the ''committee" as that term is used in the State
General Obligation Bond Law. The committee consists of the Treasurer, the Controller, and the
Director of Finance, or their designated representatives. A majority of the committee may act for
the committee. 78694. 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. 78695. 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 which is necessary to collect that additional sum. 78696. Notwithstanding Section 13340 of the Government Code, there is hereby appropriated
from the General Fund in the State Treasury, for the purposes of this division, an amount that will
equal the total of the following:
(a) The sum annually necessary to pay the principal of, and interest on, bonds issued and sold
pursuant to this division, as the principal and interest become due and payable.
(b) The sum necessary to carry out Section 78697, appropriated without regard to fiscal years. 78697. For the purposes of carrying out this division, the Director of Finance may authorize the
withdrawal from the General Fund of an amount not to exceed the amount of the unsold bonds
which have been authorized by the committee to be sold for the purpose of carrying out this
division. Any amount withdrawn shall be deposited in the fund. Any money made available under
this section shall be returned to the General Fund, plus an amount equal to the interest that the
money would have earned in the Pooled Money Investment Account, from money received from
the sale of bonds for the purpose of carrying out this division. 78698. All money deposited in the fund that is derived from premium and accrued interest on
bonds sold shall be reserved in the fund and shall be available for transfer to the General Fund as a
credit to expenditures for bond interest. 78699. The State Water Resources Control 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 purposes of carrying out this division. The amount of the
request shall not exceed the amount of the unsold bonds which the committee, by resolution, has
authorized to be sold for the purpose of carrying out this division. The State Water Resources
Control Board shall execute any documents required by the Pooled Money Investment Board to
obtain and repay the loan. Any amounts loaned shall be deposited in the fund to be allocated by
the State Water Resources Control Board in accordance with this division. 78700. The bonds may be refunded in accordance with Article 6 (commencing with Section
16780) of Chapter 4 of Part 3 of Division 4 of Title 2 of the Government Code, which is a part of
the State General Obligation Bond Law. Approval by the voters of the state for the issuance of the
bonds described in this division includes the approval of the issuance of any bonds issued to refund
any bonds originally issued or any previously issued refunding bonds. 78701. Notwithstanding any provision of this division or the State General Obligation Bond Law,
if the Treasurer sells bonds pursuant to this division that include a bond counsel opinion to the
effect that the interest on the bonds is excluded from gross income for federal tax purposes,
subject to designated conditions, the Treasurer may maintain separate accounts for the investment
of bond proceeds and the investment earnings on those proceeds. The Treasurer may use or direct
the use of those proceeds or earnings to pay any rebate, penalty, or other payment required under
federal law or to take any other action with respect to the investment and use of bond proceeds
required or desirable under federal law to maintain the tax-exempt status of those bonds and to
obtain any other advantage under federal law on behalf of the funds of this state. 78702. The Legislature hereby finds and declares that, inasmuch as 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, the disbursement of these proceeds is not subject to the limitations
imposed by that article. SEC. 2. Section 13459.5 is added to the Water Code, to read: 13459.5. Unallocated funds remaining in the Agricultural Drainage Water Account in the
transferred to the Drainage Management Subaccount, created by Section 78641, of the Clean
Water and Water Recycling Account in the Safe, Clean, Reliable Water Supply Fund for the
purposes of subdivision (b) of Section 78645. SEC. 3. Section 14058 of the Water Code is amended to read: 14058. (a) The sum of thirty million dollars ($30,000,000) of the money in the fund shall be
deposited in the Water Reclamation Account and, notwithstanding Section 13340 of the
Government Code, is hereby continuously appropriated to the board for the purposes of this
(b) The board may enter into contracts with local public agencies having authority to construct,
operate, and maintain water reclamation projects, for loans to aid in the design and construction of
eligible water reclamation projects. The board may loan up to 100 percent of the total eligible cost
of design and construction of an eligible reclamation project.
(c) Any contract for an eligible water reclamation project entered into pursuant to this section may
include such provisions as determined by the board and shall include both of the following
(1) An estimate of the reasonable cost of the eligible water reclamation project.
(2) An agreement by the local public agency to proceed expeditiously with, and complete, the
eligible water reclamation project; commence operation of the project in accordance with
applicable provisions of law, and provide for the payment of the local public agency's share of the
cost of the project, including principal and interest on any state loan made pursuant to this section.
(d) Loan contracts may not provide for a moratorium on payments of principal or interest.
(e) Any loans made from the fund may be for a period of up to 20 years. The interest rate for the
loans shall be set at a rate equal to 50 percent of the interest rate paid by the state on the most
recent sale of state general obligation bonds, with that rate to be computed according to the true
interest cost method. When the interest rate so determined, is not a multiple of one-tenth of 1
percent, the interest rate shall be set at the next higher multiple of one-tenth of 1 percent.
(f) All money repaid to the state pursuant to any contract executed under this chapter shall be
deposited in the General Fund as reimbursement for the payment of principal and interest on
bonds authorized to be issued under this chapter. Water Recycling Subaccount, created
by Section 78621, of the Clean Water and Water Recycling Account in the Safe, Clean, Reliable
Water Supply Fund, for the purposes set forth in subdivision (b) of Section 78621. |