HomeMy WebLinkAbout2000-02-08 - AGENDA REPORTS - PROP 13 SAFE DRINKING WATER (2)AGENDA REPORT
City Manager Approval
Item to be presented by: Maria Rountree
CONSENT CALENDAR
DATE: February 8, 2000
SUBJECT: PROPOSITION 13 "SAFE DRINKING WATER, CLEAN
WATER, WATERSHED PROTECTION, AND FLOOD
PROTECTION BOND ACT"
DEPARTMENT: City Manager
RECOMMENDED ACTION
Adopt resolution of support.
BACKGROUND
This measure allows the state to sell $1.97 billion of general obligation bonds for safe
drinking water, water quality, flood protection, and water reliability programs, as
described below.
Program
• Safe Drinking Water Facilities
• Flood Protection
• Watershed Protection
• Clean Water & Water Recycling
• Water Conservation
• Water Supply Reliability
Total
Amount (in millions)
$70
$292
$468
$355
$155
630
$1,970
The bond money will be available for expenditure by various state agencies and for loans
and grants to local agencies and nonprofit associations. The measure specifies the
conditions under which the funds are available for loans, including the terms for interest
and repayment of the loans.
t.lti'•1 .c �.,
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Proposition 13 also requires that funds remaining in specified accounts under the 1996
Safe, Clean, Reliable Water Supply Bond Act (Proposition 204) be used to provide loans
and grants for similar types of projects funded under this measure. Additionally,
repayments of loans funded from specified Proposition 204 accounts and under the Clean
Water and Water Reclamation Bond Law of 1988 (Proposition 83) will be required to be
used to provide loans and grants for similar projects funded under this measure
ALTERNATIVE ACTIONS
1. Approve resolution of support for Proposition 13.
2. Oppose Proposition 13.
3. Remain neutral.
4. Other actions as determined by Council.
FISCAL IMPACT
General obligation bonds are backed by the State, which requires the state to pay
principal and interest on these bonds out of General Fund revenues. The cost to pay
Proposition 13 bonds over 25 years is estimated to be about $3.4 billion to pay off both
the principal ($1.97 billion) and interest ($1.4 billion). The average annual payment
would be about $135 million.
Total debt repayment costs to the state, however, would likely be somewhat less, due to
the requirement in Proposition 13 that loans made for non -point source pollution control,
water conservation, and specified water quality/supply projects (up to $363 million) be
repaid to the General Fund. The repayments of these loans could reduce the General Fund
costs by about $470 million over the life of the bonds.
Potential costs of an unknown amount to local governments to operate or maintain
projects developed with these bond funds.
ATTACHMENTS
Resolution of support for Proposition 13.
Full text of Proposition 13 — available in City Clerk's Reading file.
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S:\MS\CCAGENDA\2-8_OO\CCPROPI3.DOC
CA Secretary of State - Primary Election 2000 - Text of Proposition 13, Page 1 of 60
Proposition 13 1 Vote 2000 Home I Ballot Pamphlet Home I Next - Prop 141 Secretary of State Home
Safe Drinking Water, Clean Water, Watersl
Protection, and Flood Protection Bond Act.
Text of Proposition 13
This law proposed by Assembly Bill 1584 of the 1999-2000 Regular Session (Chapter
725, Statutes of 1999) is submitted to the people in accordance with the provisions of
Article XVI of the California Constitution.
This proposed law amends, adds, adds and repeals, and repeals and adds sections to the
Water Code; therefore, existing provisions proposed to be deleted are printed in
BOLDED/UNDERLINED type and new provisions proposed to be added are printed in
italic type to indicate that they are new.
PROPOSED LAW
SECTION 1. Division 26 (commencing with Section 79000) is added to the Water Code,
to read:
DIVISION 26. SAFE DRINKING WATER, CLEAN WATER,
WATERSHED PROTECTION, AND FLOOD PROTECTIONACT
Chapter 1. Short Title
79000. This division shall be known and may be cited as the Costa -Machado Water Act
of 2000.
#italic#Chapter 2. Definitions
79005. Unless the context otherwise requires, the definitions set forth in this chapter
govern the construction of this division.
79006. 'Bay-delta"means the San Francisco Bay/Sacramento-San Joaquin Delta
Estuary.
79007. 'Board" means the State Water Resources Control Board.
79008. "CALFED" refers to the consortium of state and federal agencies with
management and regulatory responsibilities in the bay -delta that are developing a long-
term solution to water management, environmental, and other problems in the bay -delta
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watershed.
79009. "Clean Water Act" means the federal Clean Water Act (33 U.S.C. Sec. 1251 et
seq.), and includes any amendments thereto.
79010. "Committee" means the Safe Drinking Water, Clean Water, Watershed
Protection, and Flood Protection Finance Committee created by Section 79212.
79011. 'Delta" means the Sacramento -San Joaquin Delta.
79012. 'Department" means the Department of Water Resources.
79013. "Fund" means the Safe Drinking Water, Clean Water, Watershed Protection, and
Flood Protection Bond Fund created by Section 79019.
Chapter 3. Safe Drinking Water, Clean Water, Watershed
Protection, and Flood Protection Bond Fund
79019. The proceeds of bonds issued and sold pursuant to this division shall be
deposited in the Safe Drinking Water, Clean Water, Watershed Protection, and Flood
Protection Bond Fund, which is hereby created.
Chapter 4. Safe Drinking Water Program
#italic#Article 1. Definitions
79020. Unless the context otherwise requires, the following definitions govern the
construction of this chapter.
(a) "Federal act" means the federal Safe Drinking Water Act (42 U.S.C. Sec. 300f et
seq.), and includes any amendments thereto.
(b) "State department" means the State Department of Health Services.
(c) "Supplier" means any person, partnership, corporation, association, public agency,
or other entity, including any Indian tribe having a federally recognized governing body
carrying out substantial governmental duties in and powers over any area, that owns or
operates a public water system.
Article 2. Safe Drinking Water State Revolving Fund
79021. The sum of seventy million dollars ($70,000,000) is hereby transferred from the
fund to the Safe Drinking Water State Revolving Fund created by Section 116760.30 of
the Health and Safety Code.
Article 3. Safe Drinking Water Program
79022. (a) The money transferred to the Safe Drinking Water State Revolving Fund
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pursuant to Section 79021, except as otherwise provided in Sections 79022.7 and 79025,
shall be used by the state department for loans and grants to suppliers for the purposes
of undertaking infrastructure improvements and related actions to meet safe drinking
water standards, in accordance with the Safe Drinking Water State Revolving Fund Law
of 1997 (Chapter 4.5 (commencing with Section 116760) of Part 12 of Division 104 of
the Health and Safety Code).
(b) A supplier that is eligible for grants under Section 300i -12(i) of the federal act (42
U.S.C. Sec. 1452(1)) may concurrently make application for funds annually appropriated
under the federal act and for bond proceeds made available under this chapter. The state
department shall not place a public water system on the priority list for project funding
or enter into a contract and award a grant or loan if a supplier has previously received a
grant for public water system expenditure for the same project under Section 300j -12(i)
of the federal act (42 U.S.C. Sec. 1452(1)) or if the supplier does not have a public water
system permit pursuant to Section 116525 of the Health and Safety Code. The state
department may place a public water system on the priority list for funding if a supplier
has not otherwise received a letter of commitment to make a grant from the
Administrator of the Environmental Protection Agency after 180 days from the date of
the original submission of an application for a grant under Section 300j -12(i) of the
federal act (42 U.S.C. Sec. 1452(i)).
(c) The Legislature finds and declares that Indian tribes shall be encouraged to
cooperate with an adjacent public water system to determine whether the delivery of
water from the public water system to the Indian tribe would be feasible andcost-
effective in comparison to the improvement of a public water system owned or operated
by the Indian tribe. The determination of feasibility shall include an assessment of
whether the tribal water supplier possesses adequate financial, managerial, and
technical capability to ensure the delivery of pure, wholesome, potable water to
consumers. The Legislature further finds and declares that public water suppliers shall
be encouraged to investigate opportunities for Indian tribes to deliver water beyond trust
land boundaries to consumers that may not be economically served by a public water
system.
(d) The state department shall encourage loan or grant applicants, where feasible, to
consider the consolidation of small public water systems and community water systems
with other public water systems to reduce the cost of service and improve the level of
protection for consumers.
(e) To the extent that loans under this chapter that are made to a public water system
regulated by the Public Utilities Commission bear a lower interest rate than that
supplier could receive from nongovernmental sources, the Public Utilities Commission
shall ensure that the entire benefit of the interest rate differential shall benefit the rate
payers of that system by including the lower interest rate when establishing the water
system's weighted average cost of capital.
79022.5. Any repayment of loans made pursuant to this article, including interest
payments, and all interest earnings on or accruing to, any money resulting from the
implementation of this chapter in the Safe Drinking Water State Revolving Fund shall be
deposited in that fund and shall be available for the purposes of this chapter.
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79022.7. Notwithstanding Item No. 4260-115-0001 of Section 2.00 of the Budget Act of
1999 (Chapter 50, Statutes of 1999), no money transferred to the Safe Drinking Water
State Revolving Fund pursuant to this article may be transferred to the General Fund.
79023. There is hereby created in the Safe Drinking Water State Revolving Fund the
Technical Assistance Account.
79024. Of the funds transferred pursuant to Section 79021, the sum of two million
dollars ($2,000,000) is hereby transferred from the Safe Drinking Water State Revolving
Fund to the Technical Assistance Account.
79025. (a) Notwithstanding Section 13340 of the Government Code, the money in the
Technical Assistance Account is hereby continuously appropriated, without regard to
fiscal years, to the state department, to provide technical assistance to public water
systems in the state in accordance with Section 300j -12(g)(2) of the federal act (42
U.S.C. Sec. 1452(g)(2)). For the purposes of this section, "technical assistance" includes
assistance to disadvantaged communities, including Indian tribes.
(b) In carrying out its responsibilities under subdivision (a), the state department may do
any of the following:
(1) Assess the technical, managerial, and financial capability of a disadvantaged
community.
(2) Assist an applicant in the preparation of an application for funding under Chapter
4.5 (commencing with Section 116760) of Part 12 of Division 104 of the Health and
Safety Code or Section 300j -12(i) of the federal act (42 U.S. C. Sec. 1452(1)).
(3) Conduct workshops in locations in or near disadvantaged communities to provide
information regarding grants or loans for the design and construction of projects for
public water systems.
79026. Not more than 3 percent of the total amount deposited in the account may be
used to pay costs incurred in connection with the administration of this chapter.
Chapter 5. Flood Protection Program
#italic#Article 1. Flood Protection Account
79030. For the purposes of this chapter, "account" means the Flood Protection Account
created by Section 79031.
79031. The Flood Protection Account is hereby created in the fund. The sum of two
hundred ninety-two million dollars ($292,000,000) is hereby transferred from the fund to
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the account.
Article 2. Floodplain Mapping Program
79033. (a) There is hereby created in the account the Floodplain Mapping Subaccount.
(b) The sum of two million five hundred thousand dollars ($2,500,000) is hereby
transferred from the account to the Floodplain Mapping Subaccount for the purposes of
implementing this article.
79033.2. (a) There is hereby created in the account the Agriculture and Open Space
Mapping Subaccount.
(b) The sum of two million five hundred thousand dollars ($2,500,000) is hereby
transferred from the account to the Agriculture and Open Space Mapping Subaccount.
79033.4. The money in the Floodplain Mapping Subaccount, upon appropriation by the
Legislature to the department, may be used by the department for the purpose of
assisting local land -use planning, and to avoid or reduce future flood risks and
damages. The use of the funds in that Subaccount by the department shall include, but is
not limited to, all of the following:
(a) Mapping newly identified floodplain.
(b) Mapping rural areas with potential for urbanization.
(c) Mapping flood hazard areas with undefined 100 -year flood elevations.
(d) Updating outdated floodplain maps.
(e) Accelerating mapping of riverine floodplains, alluvial fans, and coastal flood hazard
areas.
(f) Collecting topographic and hydrographic survey data.
79033.6. (a) The money in the Agriculture and Open Space Mapping Subaccount, upon
appropriation by the Legislature to the Department of Conservation, may be used by the
Department of Conservation for the purposes of assisting local land -use planning by
making available Important Farmland Series maps and Interim Farmland maps, as
those terms are defined in Section 65570 of the Government Code. The information
provided by the Department of Conservation is intended for local government use in
conjunction with floodplain and flood hazard maps developed by the department to
protect agricultural land resources coincident with avoidance or reduction of future
flood risk and damage to residential or commercial land uses. The use of the funds in
that subaccount by the Department of Conservation shall include, but is not limited to,
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all of the following:
(1) Accelerating production of Important Farmland Series maps and Interim Farmland
maps.
(2) Increasing the coverage and availability of soil surveys conducted by the United
States Natural Resource Conservation Service.
(3) Increasing topographic, soil, and agricultural crop data collection and enhancing
data gathering capability.
(4) Developing integrated mapping that incorporates Important Farmland Series
mapping and Interim Farmland mapping data with other relevant information,
including, but not limited to, floodplain or flood hazard information, planning
designation, and other land and natural resource data.
(b) For the purposes of this article, "maps" and "mapping" may include digital map
files.
Article 2.5. Flood Protection Corridor Program
79035. (a) There is hereby created in the account the Flood Protection Corridor
Subaccount.
(b) For the purposes of this article, "subaccount" means the Flood Protection Corridor
Subaccount created by subdivision (a).
79036. The sum of seventy million dollars ($70,000,000) is hereby transferred from the
account to the Subaccount for the purposes of implementing this article.
79037. (a) The money in the Subaccount, upon appropriation by the Legislature to the
department, may be used by the department for flood control projects through direct
expenditure for the acquisition, restoration, enhancement, and protection of real
property for the purposes of flood control protection, agricultural land preservation, and
wildlife habitat protection, and for grants to local public agencies or nonprofit
organizations for these purposes, and for related administrative costs.
(b) The money in the Subaccount, upon appropriation by the Legislature, shall be used
for the protection, creation, and enhancement of flood protection corridors through all
of the following actions:
(])Acquiring easements and other interests in real property from willing sellers to
protect or enhance flood protection corridors and floodplain while preserving or
enhancing the agricultural use of the real property.
(2) Setting back existing flood control levees and, in conjunction with undertaking those
setbacks, strengthening or modifying existing levees.
(3) Acquiring interests in real property from willing sellers located in a floodplain that
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cannot reasonably be made safe from future flooding.
(4) Acquiring easements and other interests in real property from willing sellers to
protect or enhance flood protection corridors while preserving or enhancing the wildlife
value of the real property.
79038. (a) For the purposes of this article, the department shall give highest priority to
projects that include either of the following:
(1) Projects that have been assigned high priority for completion by the department for
flood protection purposes and by the Department of Conservation for purposes of
preserving agricultural land in accordance with the Agricultural Land Stewardship
Program Act of 1995 (Division 10.2 (commencing with Section 10200) of the Public
Resources Code).
(2) Projects that have been assigned high priority for completion by the department for
flood protection purposes and by the Department of Fish and Game for wildlife habitat
protection or restoration purposes.
(b) For restoration, enhancement, and protection projects, the services of the California
Conservation Corps or community conservation corps shall be used whenever feasible.
79039. (a) In order to ensure that property acquired under paragraph (1) of subdivision
(b) of Section 79037 remains on the county tax rolls and in agricultural use to the
greatest extent practicable, the acquisition of easements shall be the preferred method of
acquiring property interests under that paragraph unless the acquisition of a fee interest
is required for management purposes or the landowner will only consider the sale of a
fee interest in the land. No acquisition of a fee interest shall be undertaken under
paragraph (1) of subdivision (b) of Section 79037 until all practical alternatives have
been considered by the department.
(b) Any proceeds received from the disposal of a fee interest acquired under this article
shall be deposited into the subaccount.
79040. Any acquisition pursuant to this article shall be from a willing seller.
79041. Prior to acquiring an easement or other interest in land pursuant to this article,
the project shall include a plan to minimize the impact on adjacent landowners. The plan
shall include, but not be limited to, an evaluation of the impact on floodwaters, the
structural integrity of affected levees, diversion facilities, customary agricultural
husbandry practices, and timber extraction operations, and an evaluation with regard to
the maintenance required of any facilities that are proposed to be constructed or altered.
79042. Prior to acquiring an easement or other interest in land pursuant to this article,
a public hearing in the local community shall be held. Notification shall be given to the
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county board of supervisors of the affected county, adjacent landowners, affected water
districts, local municipalities, and other interested parties, as determined by the
department.
79043. Money in the subaccount may be used, upon appropriation by the Legislature, to
repair breaches in the flood control system developed pursuant to this article or caused
by the development of an easement program financed through this section and to repair
water diversion facilities or flood control facilities damaged by a project developed
pursuant to this section or financed pursuant to this section.
79044. (a) (1) In expending grant money pursuant to this article to acquire an interest in
any particular parcel of land, a local public agency or nonprofit organization may use
the money to establish a trust fund in the amount of not more than 20 percent of the
amount of money paid for the acquisition. Interest from the trust fund shall be used only
to maintain the lands that are acquired pursuant to this chapter.
(2) A local public agency or nonprofit organization that acquires land with money from
the subaccount and transfers the land to another public agency or nonprofit
organization shall also transfer the ownership of the trust fund that was established to
maintain that land.
(b) If the local public agency or nonprofit organization does not establish a trust fund
pursuant to subdivision (a), it shall certify to the department that it can maintain the
land to be acquired from funds otherwise available to the agency or organization.
(c) This section does not apply to state agencies.
79044.5. (a) It is the intent of the Legislature to address the problem of soaring federal
flood insurance rates by assisting local governments to meet technical requirements for
participation in the National Flood Insurance Program and the National Flood
Insurance Program's Community Rating System.
(b) Notwithstanding any other provision of this article, of the funds transferred pursuant
to Section 79036, the sum of one million dollars ($1,000,000) is hereby continuously
appropriated, without regard to fiscal years, to the department, as follows:
(1) Five hundred thousand dollars ($500,000) to educate and provide technical
assistance to cities and counties regarding the National Flood Insurance Program and
the enrollment process.
(2) Five hundred thousand dollars ($500,000) to educate and provide technical
assistance to cities and counties currently enrolled in the National Flood Insurance
Program with regard to the National Flood Insurance Program's Community Rating
System and the implementation of activities creditable under that system.
79044.6. Notwithstanding any other provision of this article, the sum of five million
dollars ($5,000,000), upon appropriation by the Legislature to the department, shall be
allocated by the department to the City of Santee for the purposes of flood protection for
streets and highways.
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79044.7. Not more than 5 percent of the total amount deposited in the subaccount may
be used to pay costs incurred in connection with the administration of this article.
79044.9. The department may adopt regulations to carry out this article.
Article 3. Delta Levee Rehabilitation Program
79045. (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).
79046. The sum of thirty million dollars ($30,000,000) is hereby transferred from the
account to the subaccount for the purposes of implementing this article pursuant to
Section 12986.
79047. 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) Fifteen million dollars ($15,000,000) 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) Fifteen million dollars ($15,000,000) 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.
(c) Any funds that are made available under subdivision (a) may be used to reimburse
local agencies for the state's share of costs for eligible projects completed on or after
July 1, 1998.
79048. The expenditure of funds under this article is subject to Chapter 1.5 (commencing
with Section 12306) of Part 4.8 of Division 6.
79049. Of the funds appropriated pursuant to subdivision (a) or (b) of Section 79047, not
more than 5 percent may be expended by the department to repair levee road pavement if
the damage is attributable to flood control maintenance.
79050. No expenditure of funds may be made under this article unless the Department of
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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. 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.
79051. For the purposes of this article, a levee project includes levee improvements and
related habitat improvements undertaken in the delta at a location other than the
location of that levee improvement.
79052. Following the date on which a program for the bay -delta is adopted by CALFED,
the remaining funds in the subaccount shall be used for levee rehabilitation improvement
projects that, to the greatest extent possible, are consistent with the program adopted by
CALFED.
Article 4. Flood Control Subventions Program
79055. (a) There is hereby created in the account the Flood Control Subventions
Subaccount.
(b) For the purposes of this article, "subaccount" means the Flood Control Subventions
Subaccount created by subdivision (a).
79056. The sum of forty-five million dollars ($45,000,000) is hereby transferred from the
fund to the subaccount.
79057. (a) Notwithstanding Section 13340 of the Government Code, or any other
provision of law, the money in the subaccount is hereby continuously appropriated,
without regard to fiscal year, to the department to pay for the state's share of the
nonfederal costs of flood control and flood prevention projects adopted and authorized
as of January 1, 1999, under The State Water Resources Law of 1945 (Chapter I
(commencing with Section 12570) and Chapter 2 (commencing with Section 12639) of
Part 6 of Division 6), The Flood Control Law of 1946 (Chapter 3 (commencing with
Section 12800) of Part 6 of Division 6), and The California Watershed Protection and
Flood Prevention Law (Chapter 4 (commencing with Section 12850) of Part 6 of
Division 6), including the credits and loans to local agencies pursuant to Sections
12585.3 and 12585.4, subdivision (d) of Section 12585.5, and Sections 12866.3 and
12866.4, and to implement Chapter 3.5 (commencing with Section 12840) of Part 6 of
Division 6.
(b) The money in the subaccount shall be allocated only to projects in the Counties of
Contra Costa, Fresno, Kern, Los Angeles, Marin, Napa, Orange, Riverside, San
Bernardino, San Diego, Santa Clara, Sonoma, and Ventura.
(c) It is the intent of the Legislature that the state's share of the nonfederal costs of
projects for flood control and flood prevention adopted and authorized after January 1,
2001, shall not exceed that portion of the nonfederal costs authorized pursuant to
Chapter 1 (commencing with Section 12570) of Part 6 or any amendments thereto.
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Article 5. Urban Stream Restoration Program
79060. (a) There is hereby created in the account the Urban Stream Restoration
Subaccount.
(b) For the purposes of this article, "subaccount" means the Urban Stream Restoration
Subaccount created by subdivision (a).
79061. 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.
79062. The money in the subaccount, upon appropriation by the Legislature to the
department, may be used by the department for both of the following:
(a) Grants to local agencies and nonprofit organizations for effective, low-cost flood
control projects pursuant to Section 7048.
(b) Grants to local community conservation corps and other nonprofit corporations for
local stream clearance, flood mitigation, and cleanup activities.
79062.5. Notwithstanding any other provision of law, regulations set forth in Chapter
2.4 (commencing with Section 451.1) of Division 2 of Title 23 of the California Code of
Regulations that are in effect on March 8, 2000, may be used to carry out this article.
Article 6. Capital Area Flood Protection Program
79065. The Legislature hereby finds and declares all of the following:
(a) Since Sacramento, the state capital, was founded over 150 years ago, it has suffered
from flood disasters because of inadequate flood protection. Each year, the State Capitol
and more than 1,300 other government-owned buildings and infrastructure of the capital
region are at risk because of their location in the worst protected urban area in the
country.
(b) The State of California's investment of money and other resources in the state's seat
of government is important to preserve and protect.
(c) It is in the best interest of this state to invest in a cost -shared program to protect life
and property in the state capital from flooding, thus resulting in opportunities for
sustainable economic development and continued protection of the state's natural
resources.
(d) The Congress and the President of the United States have recognized the national
importance of increasing the level of the state capital's flood protection by authorizing
projects in the Water Resources Development Act of 1999.
79065.2. (a) There is hereby created in the account the State Capital Protection
Subaccount.
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(b) For purposes of this article, "subaccount" means the State Capital Protection
Subaccount created by subdivision (a).
79065.4. The sum of twenty million dollars ($20,000,000) is hereby transferred from the
account to the subaccount for the purposes of this article.
79065.6. The money in the subaccount, upon appropriation by the Legislature to the
Sacramento Area Flood Control Agency, may be used by the Sacramento Area Flood
Control Agency to pay the state's share of the costs of flood management projects
authorized by the United States to improve the level of flood protection in the state
capital region.
79065.8. No money deposited in the subaccount may be used to pay the costs incurred in
connection with the administration of this article.
Article 7. San Lorenzo River Flood Control Program
79067. (a) There is hereby created in the account the San Lorenzo River Flood Control
Subaccount.
(b) For purposes of this article, "subaccount" means the San Lorenzo River Flood
Control Subaccount created by subdivision (a).
79067.2. The sum of two million dollars ($2,000,000) is hereby transferred from the
account to the subaccount for the purposes of this article.
79067.4. The money in the subaccount, upon appropriation by the Legislature to the
department, shall be allocated by the department to the City of Santa Cruz to pay for the
state's share of the costs of flood management projects authorized by the United States to
improve the level of flood protection in the Santa Cruz region.
Article 8. Yuba Feather Flood Protection Program
79068. Unless the context otherwise requires, the definitions set forth in this section
govern the construction of this article.
(a) "Nonstructural improvements" are projects that are intended to reduce or eliminate
susceptibility to flooding by preserving or increasing the flood -carrying capacity of
floodways, and include such measures as levees, setback levees, fZoodproofing
structures, and zoning, designating, or acquiring flood prone areas.
(b) "Structural improvements" are projects that are intended to modify flood patterns
and rely primarily on constructed components, and include such measures as levees,
floodwalls, and improved channels.
(c) "Subaccount" means the Yuba Feather Flood Protection Subaccount created by
Section 79068.2.
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79068.2. There is hereby created in the account the Yuba Feather Flood Protection
Subaccount.
79068.4. The sum of ninety million dollars ($90,000,000) is hereby transferred from the
account to the subaccount for the purposes of implementing this article.
79068.6. Seventy million dollars ($70,000,000) in the subaccount, upon appropriation by
the Legislature to the department or Reclamation Board, shall be used by the department
or Reclamation Board to fund one or more of the following flood protection projects to
be implemented by a local public entity that has legal authority and jurisdiction to
implement a flood control program along the Yuba and Feather Rivers and their
tributaries:
(a) The construction or improvements of weirs, bypasses, and channels.
(b) The construction of levees or improving publicly maintained levees, including, but
not limited to, setback levees, training walls, floodwalls, and streambank protection
projects, which provide flood protection or flood damage reduction.
(c) The modification or reoperation of existing dams and waterworks, including
spillways or other capital outlay facilities, for the purpose of increased efficiency in
managing flood waters.
(d) The installation of tailwater suppression systems, detention basins, relief wells, test
wells, flood warning systems, and telemetry devices.
(e) The relocation or floodproofing of structures within floodplains, which meet or
exceed a community's floodplain regulations, pursuant to the National Flood Insurance
Program.
(f) Implementation of watershed projects, which provide flood protection or flood
damage reduction.
(g) The construction of, or improvement to, a state or interstate highway, county road, or
a levee road, that is designated a flood emergency evacuation route, or that provides
access to a levee for emergency vehicles, flood fights, or levee repair and maintenance,
or a project that protects such a road or highway.
(h) The purchase of lands, easements, and rights-of-way.
(i) Capital costs of environmental mitigation.
79068.8. No expenditures of state funds may be made under this article until the
department or the Reclamation Board determines that all of the following requirements
have been met.
(a) There is a final environmental document prepared pursuant to the California
Environmental Quality Act (commencing with Section 21000 of the Public Resources
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Code).
(b) The project is in compliance with the California Endangered Species Act (Chapter
1.5 (commencing with Section 2050) of Division 3 of the Fish and Game Code), as
demonstrated by documentation such as comments received from the Department of Fish
and Game, a permit obtained from the Department of Fish and Game or other
appropriate evidence.
(c) The local project proponent agrees to pay at least that portion of the nonfederal
capital costs of the project required by Section 12585.5.
(d) The local project proponent agrees to operate and maintain the completed project.
(e) The local project proponent enters into an agreement indemnifying and holding the
state, its agencies, officers and employees free and harmless from any and all liability
arising out of the design, construction, operation and maintenance of the project.
(f) The project is recommended for implementation by the department or the
Reclamation Board.
79068.10. All of the following factors shall be considered by the department and the
Reclamation Board for prioritizing projects:
(a) Potential loss of life from flooding.
(b) Increased flood protection or flood damage reduction for areas that have the greatest
flood risk or have experienced repetitive flood loss.
(c) The local community is a small community with financial hardship.
(d) Projects that provide multiple benefits.
(e) Projects that are implemented in accordance with the Sacramento/San Joaquin River
Basins Comprehensive Study.
(f) Projects that are implemented pursuant to the completion of feasibility studies
conducted by the United States Army Corps of Engineers or local agencies.
(g) Projects along the Yuba and Feather Rivers and their tributaries.
(h) Projects that address regional flood problems.
(i) Projects along the Colusa Drain and its tributaries.
(j) Minimizing impacts to the environment.
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79068.12. Of the fund appropriated pursuant to Section 79068.6, two million six
hundred thousand dollars ($2,600,000) in the subaccount shall be used for the local
share of levee repairs and enhancements in Sutter County.
79068.14. (a) Twenty million dollars ($20,000,000) in the subaccount, upon
appropriation to the Department of Fish and Game, may be used by that department, if it
determines that any flood control project undertaken pursuant to this article would
result in a reduction of, or damage to, fish, wildlife, or riparian habitat, to protect,
improve, restore, create, or enhance fish, wildlife, and riparian habitat of a comparable
type to that which was reduced or damaged.
(b) Any land acquired pursuant to this section shall be acquired from willing sellers.
79068.16. If all of the funds appropriated pursuant to Section 79068.6 are encumbered,
and any funds described in Section 79068.14 are not needed for the purposes of that
section, as stated in writing by that department to the Legislature, the Legislature may
appropriate the funds not needed for the purposes of Section 79068.14 for the purposes
of Article 4 (commencing with Section 79055).
79068.18. Not more than 5 percent of the total amount deposited in the subaccount may
be used to pay the costs incurred in connection with the administration of this chapter.
79068.20. The department and board may adopt regulations to carry out this article.
Article 9. Arroyo Pasajero Watershed Program
79069. The Legislature hereby finds and declares all of the following:
(a) The Arroyo Pasajero Watershed incurred unprecedented flooding in 1995 that
resulted in a loss of lives due to a bridge failure on Interstate Highway Route 5 (I-5).
(b) Flooding in the watershed caused damage to important federal, state, and local
public facilities, including the Lemoore Naval Air Station, Interstate Highway Route 5
(I-5), the California Aqueduct, and critical local roads and highways, as well as private
property.
(c) It is of statewide importance to undertake projects to eliminate future flooding in the
watershed in order to protect life and property and to protect the drinking water supply
of southern California.
79069.2. Unless the context otherwise requires, the definitions set forth in this section
govern construction of this article.
(a) "subaccount" means the Arroyo Pasajero Watershed Subaccount created pursuant to
Section 79069.4.
(b) "Watershed" means the Arroyo Pasajero Watershed.
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79069.4. There is hereby created in the account the Arroyo Pasajero Watershed
Subaccount. The sum of five million dollars ($5,000,000) is hereby transferred from the
account to the Subaccount for the purposes of this article.
79069.6. The money in the subaccount, upon appropriation by the Legislature to the
department, shall be used by the department for projects that improve flood protection
for State Highway Route 269 in the area north of the City of Huron or improve flood
control for the California Aqueduct in the area of the Arroyo Pasajero Crossing.
79069.8. For the purposes of carrying out projects pursuant to this article, the
department is encouraged to utilize the services of the California Conservation Corps or
community conservation corps or both.
79069.10. Not more than 5 percent of the total amount deposited in the subaccount may
be used to pay costs incurred in connection with the administration of this article.
79069.12. The department may adopt regulations to carry out this article.
Chapter 6. Watershed Protection Program
Article 1. Watershed Protection Account
79070. For the purposes of this chapter, "account" means the Watershed Protection
Account created by Section 79071.
79071. The Watershed Protection Account is hereby created in the fund. The sum of four
hundred sixty-eight million dollars ($468,000,000) is hereby transferred from the fund to
the account.
Article 2. Watershed Protection Program
79075. (a) There is hereby created in the account the Watershed Protection Subaccount
(b) For the purposes of this article, "subaccount" means the Watershed Protection
Subaccount created by subdivision (a).
79076. The sum of ninety million dollars ($90,000,000) is hereby transferred from the
account to the subaccount for the purposes of implementing this article.
79077. The purposes of this article are to provide funds to assist in implementing
watershed plans to reduce flooding, control erosion, improve water quality, and improve
aquatic and terrestrial species habitats, to restore natural systems of groundwater
recharge, native vegetation, water flows, and riparian zones, to restore the beneficial
uses of waters of the state in watersheds, and to provide matching funds for federal grant
programs.
79078. Unless the context otherwise requires, the following definitions govern the
construction of this article:
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(a) "Local agency" means any city, county, city and county, district, or other political
subdivision of the state.
(b) "Local watershed group" means a group consisting of owners and managers of land
within the watershed of interest, local, state, and federal government representatives,
and interested persons, other than landowners, who reside or work within the watershed
of interest, and may include other persons, organizations, nonprofit corporations, and
businesses.
(c) "Local watershed management plan" means a document prepared by a local
watershed group that sets forth a strategy to achieve an ecologically stable watershed,
and that does all of the following:
(1) Defines the geographical boundaries of the watershed.
(2) Describes the natural resource conditions within the watershed.
(3) Describes measurable characteristics for water quality improvements.
(4) Describes methods for achieving and sustaining water quality improvements.
(5) Identifies any person, organization, or public agency that is responsible for
implementing the methods described in paragraph (4).
(6) Provides milestones for implementing the methods described in paragraph (4).
(7) Describes a monitoring program designed to measure the effectiveness of the
methods described in paragraph (4).
(d) "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 technical assistance under Section 319 (33 U.S.C. Sec. 1329) or
grants under Section 320 of the Clean Water Act (33 U.S.C. Sec. 1330).
(e) "Nonprofit organization" means any California corporation organized under Section
501(c)(3) or 501(c)(5) of the Internal Revenue Code.
(f) "Regional board" means a regional water quality control board.
79079. The money in the subaccount, upon appropriation by the Legislature to the
board, may be used by the board for grants to municipalities, local agencies, or
nonprofit organizations in accordance with this article. The grants shall be used to
develop local watershed management plans or to implement projects that are consistent
with local watershed management and regional water quality control plans. The board
shall ensure that activities funded by these grants will be coordinated with activities
undertaken by state and federal agencies, and with other appropriate watershed efforts.
79079.5. The funds used for the purposes described in Section 79079 shall be allocated
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as follows:
(a) Sixty percent to projects in the Counties of Los Angeles, Orange, Riverside, San
Diego, San Bernardino, and Ventura.
(b) Forty percent to projects in counties not described in subdivision (a).
79080. (a) A municipality, local agency, or nonprofit organization may only receive a
grant under this article if the board determines that both of the following apply:
(1) The municipality, local agency, or nonprofit organization has adequate legal
authority to manage the grant money.
(2) The municipality, local agency, or nonprofit organization is a member of a local
watershed group.
(b) Grants may be awarded for projects that implement methods for attaining watershed
improvements or for a monitoring program described in a local watershed management
plan in an amount not to exceed five million dollars ($5,000,000) per project. At least 85
percent of the total amount in the subaccount shall be used for capital outlay projects
described in this subdivision.
(c) Eligible projects under this article may do any of the following:
(1) Reduce chronic flooding problems or control water velocity and volume using
vegetation management or other nonstructural methods.
(2) Protect and enhance greenbelts and riparian and wetlands habitats.
(3) Restore or improve habitat for aquatic or terrestrial species.
(4) Monitor the water quality conditions and assess the environmental health of the
watershed.
(5) Use geographic information systems to display and manage the environmental data
describing the watershed.
(6) Prevent watershed soil erosion and sedimentation of surface waters.
(7) Support beneficial groundwater recharge capabilities.
(8) Otherwise reduce the discharge of pollutants to state waters from storm water or
nonpoint sources.
(d) (1) Grants may be awarded to municipalities, local agencies, or nonprofit
organizations for the development of local watershed management plans in amounts not
to exceed two hundred thousand dollars ($200,000) per local watershed management
plan.
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(2) Funding under this subdivision may be used to develop components of local
watershed management plans that contribute to the development or implementation of
species recovery plans.
(e) Grants may be awarded to meet requirements for nonfederal matching funds set forth
in Section 205(j) of the Clean Water Act (33 U.S.C. Sec. 1285(j)) or Section 319(h) of the
Clean Water Act (33 U.S.C. Sec. 1329(h)).
(J) Projects funded under this article shall be designed to withstand substantial flooding
and shall include a minimum 10 -year maintenance program and shall demonstrate the
potential to provide watershed benefits for 20 years.
(g) A proponent of a project funded from the subaccount, except a grant recipient
pursuant to subdivision (d), shall be required to submit to the board a monitoring and
reporting plan that does all of the following:
(1) Describes the baseline water quality of the waterbody impacted.
(2) Describes the manner in which the proposed watershed restoration activities are
implemented.
(3) Determines the effectiveness of the watershed restoration activities in preventing or
reducing pollution.
(4) Determines, to the extent feasible, the changes in the pattern of flow in affected
streams, including reduction of flood flows and increases in spring, summer, and fall
flows that result from the implementation of the project.
(5) Determines, to the extent feasible, the economic benefits resulting from changes
determined pursuant to paragraph (3) or (4).
(h) (1) A grant applicant shall inform the board with regard to necessary public agency
approvals, entitlements, and permits that may be necessary to implement the project. The
municipality, local agency, or nonprofit organization shall certify to the board, at the
appropriate time, that those approvals, entitlements, and permits have been granted.
(2) A grant applicant shall notify, in writing, adjoining landowners of its request for
funding under this article and the scope of the project for which the funding is requested.
If this paragraph requires notification of more than 200 landowners, notification may be
made by letter to the owners of record of the 200 largest parcels and by publication for
at least 20 days in a local newspaper of general circulation. Upon completion of the
notification required under this paragraph, the municipality, local agency, or nonprofit
organization shall inform the board that the notification has occurred.
(i) The board may adopt regulations to carry out this article.
(j) In awarding grants under this article, the board shall consider the extent to which
projects do the following:
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(1) Consider the entire ecosystem to be protected or restored.
(2) Include definable targets and desired future conditions.
(3) Support local community institutional capacity to restore the watershed.
(4) Include community decisionmaking by affected stakeholders in project design and
fund allocation.
(5) Help protect intact or nearly intact ecosystems and watersheds.
(6) Consider the economic benefits of the restoration project or program.
(7) Address the root causes of degradation, rather than the symptoms.
(8) Maximize the use of other restoration funds.
(9) Include an educational component, if appropriate.
(10) Improve the quality of drinking water and support other beneficial uses of waters of
the state, including coastal waters.
79081. A grant recipient shall obtain written permission from the landowners of the
parcel of land upon which the project is proposed to be carried out. The written
permission shall expressly consent to the actions described in the grant application.
79082. Not more than 25 percent of a grant may be awarded in advance of actual
expenditures.
79083. (a) A grant recipient shall submit to the board a report upon the completion of
the project or activity funded under this article. The report shall summarize the
completed project and identify additional steps necessary to achieve the purposes of the
local watershed management plan. The board shall make the report available to
interested federal, state, and local agencies and other interested parties.
(b) The board shall prepare and submit to the Governor a biennial report regarding the
implementation of this article. The biennial report shall include, at a minimum, a
discussion relating to the extent to which the purposes described in Section 79077 are
being furthered by the implementation of this article.
79084. (a) Of the funds transferred pursuant to Section 79076, at least thirty-five million
dollars ($35,000,000) shall be for grants to small communities.
(b) For the purposes of this article, "small community" means a municipality with a
population of 10,000 persons or less, a rural county, or a reasonably isolated and
divisible segment of a larger municipality where the population of the segment is 10,000
persons or less, with a financial hardship as determined by the board.
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(c) If the board determines that any of the funds made available for grants under this
section will not be encumbered for that purpose on or before January 1, 2007, the board
may use these funds for other purposes of this article.
79085. The board shall give added consideration to projects that utilize the services of
the California Conservation Corps, community conservation corps, or other local
nonprofit entities employing underprivileged youths.
79085.5. Notwithstanding any other provision of this article, the following amounts from
the subaccount, upon appropriation by the Legislature, shall be allocated as follows:
(a) The sum of two million dollars ($2,000,000) to the board for allocation to the Pajaro
River Watershed Flood Prevention Authority for a hydrologic study with regard to the
Pajaro River Watershed.
(b) The sum of one million dollars ($1,000,000) to the board for allocation to the County
of Sonoma to develop and implement community-based watershed management activities
that will protect, restore, and enhance the environmental and economic value of the
Russian River Watershed in the County of Sonoma.
(c) The sum of five million dollars ($5,000,000) to the board for the Clover Creek Flood
Protection and Environmental Enhancement Project to provide for the acquisition,
restoration, and conservation of low flow stream channel, open water, seasonal
wetlands, riparian habitat, oak woodland regeneration, and grassland meadow
preservation.
(d) The sum of two million dollars ($2,000,000) to the board to rehabilitate and improve
the Clear Lake Watershed by funding one or more of the following projects or activities:
Clear Lake Basin 2000 Project, aeration, wetlands restoration, fishery enhancement,
and wastewater treatment, or for grants awarded by the board to local public agencies
for any of these purposes. The first priority for funding under this subdivision is for a
grant award to fund eligible expenses of the Basin 2000 Project.
(e) To the maximum extent feasible, the watershed restoration and flood control projects
described in this subdivision shall do one or more of the following:
(1) Preserve agricultural land.
(2) Protect and enhance wildlife habitat.
(3) Protect and enhance recreational and environmental education resources.
(4) Protect lake water quality.
79086. Notwithstanding any other provision of law, the board shall terminate any grant
where it is determined that the project is not providing the proposed watershed benefits.
79087. Not more than 5 percent of the total amount deposited in the subaccount may be
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used to pay costs incurred in connection with the administration of this article.
79088. Where recovery plans for coho salmon, steelhead trout, or other threatened or
endangered aquatic species exist, projects funded under this article shall be consistent
with those plans, and to the extent feasible, shall seek to implement actions specified in
those plans.
Article 3. Water and Watershed Education Program
79090. (a) There is hereby created in the account the Water and Watershed Education
Subaccount.
(b) For the purposes of this article, "subaccount" means the Water and Watershed
Education Subaccount created by subdivision (a).
79091. The sum of eight million dollars ($8, 000,000) is hereby transferred from the
account to the subaccount for the purposes of implementing this article.
79092. Three million dollars ($3,000,000) in the subaccount, upon appropriation by the
Legislature to the department, may be used by the department for allocation to
California State University, Fresno for the purposes of establishing and furthering the
purposes of the San Joaquin Valley Water Institute at that campus.
79093. Two million dollars ($2,000,000) in the subaccount, upon appropriation by the
Legislature to the department, shall be used by the department for the development of a
Delta Science Center, including, but not limited to, all of the following components:
(a) Public educational opportunities.
(b) Wildlife and habitat enhancement.
(c) Preservation of agricultural lands.
(d) Enhanced levee protection and rehabilitation.
(e) Water quality improvements.
(f) Nonstructural flood protection.
79094. Three million dollars ($3,000,000) in the subaccount, upon appropriation by the
Legislature to the University of California, may be used for the purpose of site
acquisition, construction, and equipping of a Watershed Science Laboratory, for long-
term monitoring and research with regard to the hydrology, geomorphology, water
quality and aquatic and riparian ecology of the north delta and its tributary watersheds.
#italic#Article 4. River Protection Program
79100. (a) There is hereby created in the account the River Protection Subaccount.
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(b) For the purposes of this article, "subaccount" means the River Protection
Subaccount created by subdivision (a).
79101. The sum of ninety-five million dollars ($95,000,000) is hereby transferred from
the account to the subaccountfor the purposes of implementing this article.
79102. The money in the subaccount, upon appropriation by the Legislature, may be
used to meet the requirements of Article 6 (commencing with Section 78682) of Chapter
6 of Division 24.
79103. At least 60 percent of the funds transferred pursuant to Section 79101 shall be
used for projects that are located in, or in close proximity to, major metropolitan areas.
79103.2. Notwithstanding any other provision of this article, of the funds transferred
pursuant to Section 79101, ten million dollars ($10,000,000) shall, upon appropriation
to the department, be allocated to the San Joaquin River Parkway Conservancy for the
purposes of the San Joaquin River Parkway.
79103.4. Notwithstanding any other provision of this article, of the funds transferred
pursuant to Section 79101, two million five hundred thousand dollars ($2,500,000) in the
subaccount shall be used by the department, upon appropriation, for the purpose of the
Kern River Parkway Project between the mouth of Kern Canyon and Interstate Highway
Route 5.
79104. 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.
#italic#Article 5. Southern California Integrated
Watershed Program
79104.20. The Legislature hereby finds and declares all of the following:
(a) The Santa Ana Watershed is experiencing increased water demands due to
significant population growth that has caused undue infrastructure dependence and
strain on imported water supplies.
(b) Regional programs have been developed to address the problems facing the
watershed. These programs have four main elements, as follows:
(1) Storage of more than one million acre-feet of water from wet years in groundwater
storage basins.
(2) Conservation, including water use efficiency and reclamation, that results in the
substantial development of new usable supplies.
(3) Desalting and treatment of brackish water to allow poor quality water to be
reclaimed and used.
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(4) Enhancement of native habitat along the river and its tributaries.
(c) The water supply programs proposed by the Santa Ana Watershed Project Authority
will develop significant new water supply and storage capabilities, thereby reducing the
imported water needs of urban southern California, especially during dry years.
79104.22. (a) There is hereby created in the account the Santa Ana River Watershed
Subaccount.
(b) For purposes of this article, "subaccount" means the Santa Ana River Watershed
Subaccount created by subdivision (a).
79104.24. The sum of two hundred thirty-five million dollars ($235,000,000) is hereby
transferred from the account to the subaccount.
79104.26. The money in the subaccount, upon appropriation by the Legislature to the
board, may be used by the board for allocation to the Santa Ana Watershed Project
Authority for all of the following projects for the purposes of rehabilitating and
improving the Santa Ana River Watershed.
(a) Basin water banking in one or more of the following basins: Chino, Colton, Orange
County, Riverside, San Bernardino, and San Jacinto.
(b) Contaminant and salt removal through reclamation and desalting in Orange County,
San Jacinto, or other basins in the watershed.
(c) Removal of nonnative plants, and the creation of new open space and wetlands.
(d) Programs for water conservation and efficiency and storm water capture and
management.
(e) Planning and implementation of a flood control program to protect agricultural
operations and adjacent property, to assist in abating the effects of waste discharges into
waters of the state, consistent with the requirements of Section 13442.
79104.30. It is the intent of the Legislature to urge the federal government to allocate
funds for projects to improve the Santa Ana River Watershed to match the state's
financial commitment to the projects described in this article.
79104.32. It is the intent of the Legislature that the expenditure of the funds under this
article be made through a broad-based watershed stakeholder process.
79104.34. Not more than 3 percent of the total amount deposited in the subaccount may
be used to pay costs incurred by the board in connection with the administration of this
article.
Article 6. Lake Elsinore and San Jacinto
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Watershed Program
79104.100. (a) There is hereby created in the account the Lake Elsinore and San Jacinto
Watershed Subaccount.
(b) For the purposes of this article, "subaccount" means the Lake Elsinore and San
Jacinto Watershed Subaccount created by subdivision (a).
79104.102. The sum of fafteen million dollars ($15,000,000) is hereby transferred from
the account to the subaccount.
79104.104. The money in the subaccount, upon appropriation by the Legislature to the
board, may be used by the board to rehabilitate and improve the Lake Elsinore
Watershed and San Jacinto Watershed and the water quality of Lake Elsinore by funding
one or more of the following projects: watershed monitoring, storm channel
modification, nutrient control, aeration, wetlands restoration and enhancement, wildlife
habitat enhancement, fishery enhancement, calcium quicklime treatment, and sediment
removal, or for grants awarded by the board to the Santa Ana Watershed Project
Authority, other joint powers authorities, or local public agencies for any of these
purposes, and for related planning and administrative costs.
79104.106. To the maximum extent feasible, the watershed management and flood
control projects described in Section 79104.104 shall do one or more of the following:
(a) Preserve agricultural land.
(b) Protect wildlife habitat.
(c) Protect and enhance recreational resources.
(d) Improve lake water quality.
79104.108. It is the intent of the Legislature to urge the federal government to allocate
funds for projects to improve the Lake Elsinore Watershed and San Jacinto Watershed,
and lake water quality by matching the state's financial commitment to those projects.
79104.110. The funds appropriated pursuant to Section 79104.104 shall be allocated to
a joint powers agency consisting of the City of Lake Elsinore, the Santa Ana Watershed
Project Authority, the Elsinore Valley Municipal Water District and other agencies for
implementation of programs to improve the water quality and habitat of Lake Elsinore,
and its back basin consistent with the Lake Elsinore Management Plan.
79104.114. Not more than 3 percent of the total amount deposited in the subaccount may
be used to pay costs incurred in connection with the administration of this article.
Article 7. Coastal Watershed Salmon Habitat Program
79104.200. (a) There is hereby created in the account the Coastal Watershed Salmon
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Habitat Subaccount.
(b) For the purpose of this article, "subaccount" means the Coastal Watershed Salmon
Habitat Subaccount created by subdivision (a).
79104.202. 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.
79104.204. The money in the subaccount, upon appropriation by the Legislature to the
Department of Fish and Game, shall be used by the Department of Fish and Game for
direct expenditure and for grants to public agencies and nonprofit organizations to
protect, restore, acquire, and enhance habitat for salmon. These funds may be used to
match federal funding available for those purposes.
79104.206. 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.
Chapter 7. Clean Water and Water Recycling Program
Article 1. Clean Water and Water Recycling Account
79105. For the purposes of this chapter, "account" means the Clean Water and Water
Recycling Account created by Section 79106.
79106. The Clean Water and Water Recycling Account is hereby created in the fund. The
sum of three hundred fifty five million dollars ($355,000,000) hereby transferred from
the fund to the account.
Article 2. Nonpoint Source Pollution Control Program
79110. The purpose of this article is to provide grant funding for projects that protect
the beneficial uses of water throughout the state through the control of nonpoint source
pollution.
79111. Unless the context otherwise requires, the following definitions govern the
construction of this article:
(a) 'Best management practices" means those practices or set of practices determined by
the board, a regional board, or the water quality planning agency for a designated area
to be the most effective feasible means of preventing or reducing the generation of a
specific type of nonpoint source pollution, given technological, institutional,
environmental, and economic constraints.
(b) "Capital costs" has the same meaning as "cost, " as defined in Section 32025 of the
Public Resources Code.
(c) "Management measures" means economically achievable measures to prevent or
control the addition of pollutants to state waters, which reflect the greatest degree of
pollutant prevention achievable through the application of the best available nonpoint
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source pollution control practices, technologies, processes, siting criteria, operating
methods, or other alternatives.
(d) "Regional board" means a regional water quality control board.
(e) "Subaccount" means the Nonpoint Source Pollution Control Subaccount created by
Section 79112.
79112. There is hereby created in the account the Nonpoint Source Pollution Control
Subaccount.
79113. The sum of one hundred million dollars ($100,000,000) is hereby transferred
from the account to the Subaccount for the purposes of implementing this article.
79114. (a) The money in the subaccount, upon appropriation by the Legislature to the
board, may be used by the board to award grants, not to exceed five million dollars
($5,000,000) per project, to local public agencies or nonprofit organizations formed by
landowners to prepare and implement local nonpoint source plans. Grants shall only be
awarded for any of the following projects:
(1) A project that is consistent with local watershed management plans that are
developed under subdivision (d) of Section 79080 and with regional water quality
control plans.
(2) A broad-based nonpoint source project, including a project identified in the board's
"Initiatives in NPS Management, " dated September 1995, and nonpoint source technical
advisory committee reports.
(3) A project that is consistent with the "Integrated Plan for Implementation of the
Watershed Management Initiative" prepared by the board and the regional boards.
(4) A project that implements management measures and practices or other needed
projects identified by the board pursuant to its nonpoint source pollution control
program's 15 -year implementation strategy and five-year implementation plan that
meets the requirements of Section 6217(g) of the federal Coastal Zone Act
Reauthorization Amendments of 1990.
(b) The projects funded from the subaccount shall demonstrate a capability of sustaining
water quality benefits for a period of 20 years. Categories of nonpoint source pollution
addressed by projects may include, but are not limited to: silviculture, agriculture, urban
runoff, mining, hydromodification, grazing, onsite disposal systems, boatyards and
marinas, and animal feeding operations. Projects to address nonpoint source pollution
may include, but are not limited to, wildfire management, installation of vegetative
systems to filter or retard pollutant loading, incentive programs or large scale
demonstration programs to reduce commercial reliance on polluting substances or to
increase acceptance of alternative methods and materials, and engineered features to
minimize impacts of nonpoint source pollution. Projects shall have defined water quality
or beneficial use goals.
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(c) Projects funded from the subaccount shall utilize best management practices,
management measures, or both.
(d) If projects include capital costs, those costs shall be identified by the project
applicant. The grant recipient shall provide a matching contribution for the portion of
the project consisting of capital expenditures for construction, according to the
following formula:
Project Capital Cost/Capital Cost Match by Recipient
$1,000,000 to $5,000,000, inclusive .......... 20%
$125,000 to $999,999, inclusive .......... 15%
$1 to $124,999, inclusive .......... 10%
(e) Not more than 25 percent of a grant may be awarded in advance of actual
expenditure.
(f) A proponent of a project funded from the subaccount shall be required to submit to
the board a monitoring and reporting plan that does all of the following:
(1) Identifies one or more nonpoint sources of pollution.
(2) Describes the baseline water quality of the waterbody impacted.
(3) Describes the manner in which the proposed practices or measures are implemented.
(4) Determines the effectiveness of the proposed practices or measures in preventing or
reducing pollution.
(g) Notwithstanding subdivision (b), the board may award up to 5 percent of the total
amount deposited in the subaccount for demonstration projects that are intended to
prevent, reduce, or treat nonpoint source pollution.
(h) A grant recipient shall submit a report to the board, upon completion of the project,
that summarizes completed activities and indicates whether the purposes of the project
have been met. The report shall include information collected by the grant recipient in
accordance with the project monitoring and reporting plan, including a determination of
the effectiveness of the best management practices or management measures
implemented as part of the project in preventing or reducing nonpoint source pollution.
The board shall make the report available to watershed groups, and federal, state, and
local agencies.
79114.2. Notwithstanding any other provision of this article, the sum of five million
dollars ($5,000,000) is hereby appropriated from the subaccount, to the board to be used
by the board, after consultation with the Department of Food and Agriculture, for loans,
not to exceed five hundred thousand dollars ($500,000) per loan, to provide low interest
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loans to finance the construction of projects designed to manage animal nutrients from
animal feeding operations. Grants may be made available to local public agencies to
pay for the cost of developing ordinances, regulations, and elements for their General
Plan or other planning devices to assist in providing uniform standards for the
permitting and operation of animal feeding operations within their jurisdictions. These
funds may also be used for the preparation of the related environmental reviews that
may be necessary under the California Environmental Quality Act (Division 13
(commencing with Section 21000) of the Public Resources Code) for approval of the
devices.
79114.3. No project shall receive funds under this article if it receives funds pursuant to
Article 5 (commencing with Section 79148).
79114.5. (a) Sixty percent of the money in the subaccount shall be allocated to projects
in the Counties of Riverside, Ventura, Los Angeles, San Diego, Orange, or San
Bernardino.
(b) Forty percent of the money in the subaccount shall be allocated to projects in
counties not described in subdivision (a).
(c) This section does not apply to Section 79114.2 or Section 79117.
79115. The board may adopt regulations to implement this article
79116. Not more than 5 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.
79117. (a) Notwithstanding any other provision of this article, of the funds transferred
pursuant to Section 79113, the sum of ten million dollars ($10,000,000), upon
appropriation by the Legislature to the board, may be used by the board, after
consultation with the Department of Pesticide Regulation and the Office of
Environmental Health Hazard Assessment, for grants as follows:
(1) Two million dollars ($2,000,000) for research and source identification.
(2) Eight million dollars ($8,000,000) for mitigation measures to protect water quality
from potential adverse effects of pesticides, which measures have the ability to provide
benefits for a period of 20 years, as determined by the board after consultation with the
Department of Pesticide Regulation and the Office of Environmental Health Hazard
Assessment.
(b) The board shall adopt regulations to carry out this section.
Article 3. Clean Water Program
79120. Unless the context otherwise requires, the following definitions govern the
construction of this article:
(a) "Eligible project" means a project or activity described in paragraph (1), (2), (3), or
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(4) of subdivision (a) of Section 13480 that is all of the following:
(1) Necessary to prevent water pollution, reclaim water, or improve water quality.
(2) Eligible for funds from the State Revolving Fund Loan Subaccount 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 Clean Water Act.
(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 technical assistance under Section 319 (33 U.S.C. Sec. 1329) or
grants under Section 320 of the Clean Water Act (33 U.S.C. Sec. 1330).
(d) "Small community" means a municipality with a population of 10,000 persons or
less, or a reasonably isolated and divisible segment of a larger municipality where the
segment of the population is 10,000 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.
79121. There is hereby created in the account all of the following subaccounts:
(a) The State Revolving Fund Loan Subaccount.
(b) The Small Communities Grant Subaccount.
(c) The Wastewater Construction Grant Subaccount.
79122. (a) The following amounts are hereby transferred from the account to the
following subaccounts and, notwithstanding Section 13340 of the Government Code, are
hereby continuously appropriated, without regard to fiscal years, to the board, as
follows:
(1) Thirty million five hundred thousand dollars ($30,500,000) 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 79124.
(2) Thirty-four million dollars ($34,000,000) to the Small Communities Grant
Subaccount for grants by the board to small communities for construction of eligible
treatment works, and for the purposes described in Section 79124.
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79122.2. The sum of thirty-five million five hundred thousand dollars ($35,500,000) is
hereby transferred from the account to the Wastewater Construction Grant Subaccount
and, upon appropriation by the Legislature to the board, may be used by the board for
the purposes of providing grants to aid in the construction of treatment works for the
Cities of Manteca, Stockton, Tracy, and Orange Cove.
79122.4. The board may transfer unallocated funds from the State Revolving Fund Loan
Subaccount to the State Water Pollution Control Revolving Fund created pursuant to
Section 13477 for the purposes of meeting federal requirements for state matching funds
to provide loans in accordance with the Clean Water Act.
79123. The board may adopt regulations to carry out this article.
79124. 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, and wastewater recycling. For the purposes of this section,
"research" may include the design, acquisition, installation, or construction of
monitoring and testing equipment and related facilities.
79125. Not more than 3 percent of the total amount deposited in each subaccount
created pursuant to this article may be used to pay the costs incurred in connection with
the administration of this article.
79126. Not more than 2 percent of the total amount deposited in each subaccount under
this article may be used for the purposes of Section 79124.
79127. For the purposes of implementing paragraph (1) of subdivision (a) of Section
79122, the board may make loans to municipalities, pursuant to contract, to aid in the
construction or implementation of eligible projects.
79128. (a) For purposes of paragraph (2) of subdivision (a) of Section 79122, the board
may make grants to small communities so that any state grant does not exceed 97
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.
(b) The total amount of grants made pursuant to paragraph (2) of subdivision (a) of
Section 79122, for any single project, may not exceed three million five hundred
thousand dollars ($3,500,000).
79128.5. For the purposes of paragraph (3) of subdivision (a) of Section 79122, the
board may make grants for the cost of planning, design, and construction of treatment
works necessary to comply with waste discharge requirements.
79129. Any contract entered into pursuant to this article for a loan or grant may include
provisions determined by the board, and shall include all of the following provisions:
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(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 municipality or small community, 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.
(d) An agreement by the municipality or small community 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 its share of the costs of the project.
79130. All contracts entered into pursuant to this article for loans or grants are subject
to both of the following requirements:
(a) Municipalities 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.
79131. Any loan made pursuant to Section 79127 shall meet the requirements of
paragraph (1) of subdivision (b) of Section 13480.
79132. 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 the purposes of entering into additional loans under this article, and
shall not be transferred to the General Fund.
79133. (a) Notwithstanding any other provision of this article, of the continuously
appropriated funds described in paragraph (1) of subdivision (a) of Section 79122, the
sum of seven million dollars ($7,000,000) shall be used by the Department of Toxic
Substances Control for allocation to local agencies for groundwater remediation
projects.
(b) The Department of Toxic Substances Control shall adopt regulations to carry out this
subdivision.
Article 4. Water Recycling Program
79135. Unless the context otherwise requires, the following definitions govern the
construction of this article:
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(a) "Municipality" has the same meaning as that set forth in subdivision (c) of Section
79120.
(b) "Subaccount" means the Water Recycling Subaccount created by Section 79136.
(c) "Water recycling project" means a water recycling project that meets applicable
reclamation criteria and water reclamation requirements and that complies with
applicable water quality standards, policies, and plans.
79136. There is hereby created in the account the Water Recycling Subaccount.
79137. (a) The sum offorty million dollars ($40,000,000) is hereby transferred from the
account to the subaccount for the purposes of this article.
(b) (1) Sixty percent of the money in the subaccount shall be allocated to projects in the
Counties of Riverside, Ventura, Los Angeles, San Diego, Orange, or San Bernardino.
(2) Forty percent of the money in the subaccount shall be allocated to projects in
counties not described in paragraph (1).
79138. Unallocated fords remaining in the Water Recycling Subaccount in the Clean
Water and Water Recycling Account in the Safe, Clean, Reliable Water Supply Fund on
March 8, 2000, and any funds deposited into that subaccount after that date, shall be
transferred to, and all money repaid to the state pursuant to any loan contract executed
under Chapter 17 (commencing with Section 14050) of Division 7 or Article 3
(commencing with Section 78620) of Chapter 5 of Division 24 shall be deposited in, the
subaccount for the purposes of this article.
79139. The board may enter into an agreement with the federal government for federal
contributions to the subaccount if all of the following conditions have been met:
(a) The board has identified any required matching funds.
(b) The board is prepared to commit to the expenditure of any minimum amount in the
subaccount in the manner required by the Clean Water Act.
(c) Any agreement between the board and the federal government is consistent with the
purposes of this article.
79140. (a) Notwithstanding Section 13340 of the Government Code, 50 percent of the
money in the subaccount is hereby continuously appropriated, without regard to fiscal
years, to the board for loans to municipalities for the design and construction of water
recycling projects in accordance with Section 79141, and for the purposes described in
Sections 79143, 79144, and Section 79145.
(b) Fifty percent of the money in the subaccount, upon appropriation by the Legislature
to the board, may be used by the board for grants to municipalities for the design and
construction of water recycling projects in accordance with Section 79141.
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79141. The board may enter into agreements with municipalities for loans and grants for
projects to recycle water in accordance with this article. Criteria to be considered by the
board in determining whether to enter into an agreement under this article may include,
but are not limited to, whether the project is a cost-effective means to meet the state or
local water supply needs, when compared to other sources of water supply that may be
available to the municipality, whether the project is necessary to protect water quality,
the readiness of the municipality to proceed with the design and construction of water
recycling projects, the degree to which the recycled water improves water supply
reliability, water quality, ecosystem restoration, and other environmental benefits, the
net water savings benefit, the degree to which the recycled water would reduce water
supply demands on the bay -delta system, the Colorado River, or other water systems
critical to regional or statewide water supply, the ability to encourage development of
new water recycling projects, and the amount of funding that the municipality is
requesting under this article. The cost effectiveness of a project when compared to other
sources of state or local water supply shall not be the sole factor in determining whether
to enter into an agreement.
79142. An agreement entered into pursuant to Section 79141 may include those
provisions determined by the board to be necessaryfor the purposes of this article.
79142.2. (a) A contract for a loan made pursuant to this article may not provide for a
moratorium on, or the deferment of, the payment of the principal of, or interest on, the
loan.
(b) Any loan made pursuant to Section 79141 shall be for a period not to exceed 20
years.
(c) The board may enter into a contract for a loan that equals up to 100 percent of the
total eligible cost of design and construction of an eligible recycling project.
79142.4. (a) The board may 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.
79142.6. All principal and interest payments received pursuant to loan contracts
executed pursuant to this article shall be deposited in the subaccount for the purposes of
this article, and shall not be transferred to the General Fund.
79142.8. All interest earned by assets in the subaccount shall be deposited in the
subaccount.
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79143. The board may make grants to municipalities for facility planning studies for
water recycling projects. The amount of the grants may not exceed seventy-five thousand
dollars ($75, 000) per study.
79144. 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 and wastewater recycling. For the purposes of this section,
"research" may include the design, acquisition, installation, or construction of
monitoring and testing equipment and related facilities.
79145. (a) 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.
(b) Not more than 3 percent of the total amount deposited in the subaccount may be used
for the purposes of Section 79144.
79146. Notwithstanding any other provision of this article, the money in the subaccount
may not be used to provide financial assistance to any water recycling project used to
augment water supplies by discharging recycled water into a surface water reservoir
that supplies water directly to a treatment facility for a water supply system that serves
domestic uses.
79147. (a) The board may adopt regulations to carry out this article.
(b) The board is encouraged to expedite the review and processing of agreements to
carry out the purposes of this article. The board shall report to the Legislature on the
progress of implementing this article on or before June 30, 2001.
Article 5. Coastal Nonpoint Source Control Program
79148. The purpose of this article is to provide funding for projects that restore and
protect the water quality and environment of coastal waters, estuaries, bays, and near
shore waters and groundwaters.
79148.2. Unless the context otherwise requires, the following definitions govern the
construction of this article:
(a) "Educational institution" means community colleges, state colleges, and the
University of California.
(b) "Local public agency" means any city, county, city and county, district, or other
political subdivision of the state.
(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 technical assistance under Section 319 (33 U.S.C. Sec. 1329) or
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grants under Section 320 of the Clean Water Act (33 U.S.C. Sec. 1330).
(d) "Nonprofit organization" means any California corporation organized under Section
501(c)(3) or 501(c)(5) of the Internal Revenue Code.
(e) "Regional board" means a regional water quality control board.
(f) "Subaccount" means the Coastal Nonpoint Source Control Subaccount created by
Section 79148.4.
79148.4. There is hereby created in the account the Coastal Nonpoint Source Control
Subaccount.
79148.6. The sum of ninety million dollars ($90,000, 000) is hereby transferred from the
account to the Subaccount for the purposes of implementing this article.
79148.7. Notwithstanding any other provision of this article, the sum of four million
dollars ($4,000,000), upon appropriation by the Legislature to the board, shall be
allocated by the board to the City of Huntington Beach to fund multiagency studies to
establish recommendations to address coastal nonpoint source pollution in the tidal
marshes and coastal waters, and to implement those recommendations. Agencies
authorized to conduct the studies and implement the recommendations may include, but
need not be limited to, municipal and county governments, flood control districts, and
sanitation districts.
79148.8. (a) The money in the Subaccount, upon appropriation by the Legislature to the
board, may be used by the board, in consultation with the California Coastal
Commission, to award loans as provided in subdivision (b), and to award grants not to
exceed five million dollars ($5,000,000) per project, to municipalities, local public
agencies, educational institutions, or nonprofit organizations for the purposes of this
article. Grants may be awarded for any of the following projects:
(1) A project designed to improve water quality at public beaches and to make
improvements for the purpose of ensuring that coastal waters adjacent to public beaches
meet the bacteriological standards set forth in Article 2 (commencing with Section
115880) of Chapter 5 of Part 10 of Division 104 of the Health and Safety Code.
(2) A project to provide comprehensive capability for monitoring, collecting, and
analyzing ambient water quality, including monitoring technology that can be entered
into a statewide information base withstandardized protocols and sampling, collection,
storage and retrieval procedures.
(3) A project to make improvements to existing sewer collection systems and septic
systems for the restoration and protection of coastal water quality.
(4) A project designed to implement storm water and runoff pollution reduction and
prevention programs for the restoration and protection of coastal water quality.
(5) A project that is consistent with the state's nonpoint source control program, as
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revised to meet the requirements of Section 6217 of the federal Coastal Zone Act
Reauthorization Amendments of 1990, Section 319 of the federal Clean Water Act (33
U.S.C. Sec. 1329), and the requirements of Division 7 (commencing with Section 13000).
(b) In addition to the grants authorized pursuant to subdivision (a), the board may make
loans not to exceed five million dollars ($5,000,000) per project to municipalities, local
public agencies, educational institutions, or nonprofit organizations for the purposes set
forth in paragraph (3) of subdivision (a).
(c) The projects funded from the subaccount shall demonstrate the capability of
contributing to sustained, long-term water quality or environmental restoration or
protection benefits for a period of 20 years, shall address the causes of degradation,
rather than the symptoms, and shall be consistent with water quality and resource
protection plans prepared, implemented, or adopted by the board, the applicable
regional water quality control board, and the California Coastal Commission.
(d) An applicant for funds from the subaccount shall be required to submit to the board a
monitoring and reporting plan that does all of the following:
(1) Identifies the nonpoint source or sources of pollution to be prevented or reduced by
the project.
(2) Describes the baseline water quality or quality of the environment to be addressed.
(3) Describes the manner in which the project will be effective in preventing or reducing
pollution and in demonstrating the desired environmental results.
(e) Upon completion of the project, a recipient of funds from the subaccount shall submit
a report to the board that summarizes the completed activities and indicates whether the
purposes of the project have been met. The report shall include information collected by
the recipient in accordance with the project monitoring and reporting plan, including a
determination of the effectiveness of the project in preventing or reducing pollution. The
board shall make the report available to the public, watershed groups, and federal, state,
and local agencies.
(t) If projects include capital costs for construction, those costs shall be identified by the
project applicant. The grant recipient shall provide a matching contribution for the
portion of the project consisting of capital costs for construction, according to the
following formula:
Capital Cost Project Cost/Capital Cost Match by Recipient
$1,000,000 to $5,000,000, inclusive .......... 20%
$125,000 to $999,999, inclusive .......... 15%
$1 to $124,999, inclusive.......... 10%
For the purposes of this subdivision, "capital costs" has the same meaning as "cost" as
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defined in Section 32025 of the Public Resources Code.
(g) Not more than 25 percent of a grant may be awarded in advance of actual
expenditure.
(h) An applicant for funds from the subaccount shall inform the board of any necessary
public agency approvals, entitlements, and permits that may be necessary to implement
the project. The application shall certify to the board, at the appropriate time, that those
approvals, entitlements, and permits have been granted.
(i) Where recovery plans for coho salmon, steelhead trout, or other threatened or
endangered aquatic species exist, projects funded under this article shall be consistent
with those plans, and to the extent feasible, shall seek to implement actions specified in
those plans.
79148.10. (a) Sixty percent of the money in the subaccount shall be allocated to projects
in the Counties of Riverside, Ventura, Los Angeles, San Diego, Orange, or San
Bernardino.
(b) Forty percent of the money in the subaccount shall be allocated to projects in the
counties not described in subdivision (a).
79148.12. The board shall provide opportunity for public review and comment in
awarding funds pursuant to this article, and may, in consultation with the California
Coastal Commission, adopt regulations to implement this article.
79148.14. No project shall receive funds under this article if it receives funds pursuant
to Article 2 (commencing with Section 79110).
79148.15. Notwithstanding any other provision of this article, three million dollars
($3,000,000), upon appropriation by the Legislature to the board, shall be allocated by
the board to the San Diego County Water Authority for environmental studies and
engineering studies for the San Diego Regional Conveyance Facility.
79148.16. Not more than 5 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.
Article 6. Seawater Intrusion Control
79149. Unless the context otherwise requires, the following definitions govern the
construction of this article:
(a) (1) "Eligible seawater intrusion control project" means a project that meets all of the
following requirements:
(A) The project is necessary to protect groundwater and meets both of the following
requirements:
(i) The project is within a basin that is subject to a local groundwater management plan
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for which a review is completed pursuant to the California Environmental Quality Act
(Division 13 (commencing with Section 21000) of the Public Resources Code).
(ii) The project 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) In the case of a project that would provide a substitute water supply, the project is
cost-effective when compared to the development of other new sources of water and
includes requirements or measures adequate to ensure that the substitute supply will be
used in lieu of previously established extractions or diversions of groundwater.
(C) The project 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
79149.2.
79149.2. (a) There is hereby created in the account the Seawater Intrusion Control
Subaccount. 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.
(b) Notwithstanding Section 13340 of the Government Code, the money in the
Subaccount is hereby continuously appropriated, without regard tofiscal years, 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.
79149.3. Unallocated funds remaining in the Seawater Intrusion Control Subaccount in
the Clean Water and Water Recycling Account in the Safe, Clean, Reliable Water Supply
Fund on March 8, 2000, and any funds deposited into that subaccount after that date,
shall be transferred to, and all money repaid to the state pursuant to any loan contract
executed under Article 6 (commencing with Section 78648) of Chapter 5 of Division 24
shall be deposited in, the subaccount for the purposes of this article.
79149.4. The board may enter into contracts to make loans to local agencies for the
purposes set forth in this article.
79149.6. Any contract for a loan entered into pursuant to Section 79149.4 may include
those provisions determined by the board to be necessaryfor the purposes of this article
and shall include both of the following provisions:
(a) An estimate of the reasonable cost of the eligible seawater intrusion control project.
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(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.
79149.8. (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 79149.4 shall be for a period not to exceed 20
years.
(c) The board may enter into a contract for a loan amount that equals up to 100 percent
of the total eligible cost of design and construction of an eligible seawater intrusion
control project.
79149.10. (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.
(b) If the interest rate so determined is not a multiple of one-tenth of I 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.
79149.12. All principal and interest payments received pursuant to loan contracts
entered into pursuant to this article shall be deposited in the subaccount.
79149.14. 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.
79149.16. Not more than 3 percent of the total amount deposited in the subaccount may
be used to pay for both of the following:
(a) To pay the costs incurred in connection with the administration of this article.
(b) For the purposes of Section 79149.14.
Chapter 8. Water Conservation Program
Article 1. Findings and Declarations
79150. The Legislature finds and declares that:
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(a) Voluntary, cost-effective capital outlay water conservation programs can help meet
the growing demand for clean and abundant water supplies throughout the state.
(b) The participation of the state in the construction of local water conservation projects
is desirable to further the effective management of the water resources of the state.
Article 2. General Provisions
79151. Unless the context otherwise requires, the following definitions govern the
construction of this chapter:
(a) "Account" means the Water Conservation Account created by Section 79152.
(b) (1) "Water conservation program or project" means those feasible capital outlay
measures undertaken to improve the efficiency of water use through projects, the benefits
of which exceed the costs.
(2) The programs include, but are not limited to, all of the following:
(A) The lining or piping of ditches.
(B) 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.
(C) Tailwater pumpback recovery systems.
(D) Major improvements to, or replacement of, deteriorated distribution systems to
reduce leakage and maximize conservation.
(E) Capital outlay features of agricultural water conservation programs identified in the
"Memorandum of Understanding Regarding Efficient Agricultural Water Management
Practices, " dated July 16, 1997, and endorsed by the Agricultural Water Management
Council, and any amendments thereto.
(c) "Economically disadvantaged area" means any area of the state for which both of the
following statements apply:
(1) A median household income that is less than forty thousand dollars ($40,000) based
on the most recent federal census.
(2) An annual average unemployment rate that is greater than 9 percent based on the
most recent federal census.
(d) (1) "Groundwater recharge facilities" means lands and facilities for artificial
groundwater recharge through methods that include, but are not limited to, percolation
using basins, pits, ditches, and furrows, modified streambeds, flooding, and well
injection. For the purposes of this chapter, expenditures for "groundwater recharge
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facilities" include capital outlay expenditures to expand, renovate, or restructure land
and facilities used for the purposes of groundwater recharge and to acquire additional
land for recharge 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 convey water 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 separable features, or an appropriate share of multipurpose features, of a
larger system, or both.
(e) "Infrastructure rehabilitation project" means a project located in an economically
disadvantaged area for the repair, replacement, restoration, or rehabilitation of an
existing water distribution system that delivers water for domestic, municipal, or
industrial uses, including pipelines, pump stations, valves, meters, reservoirs, and all
other appurtenant water delivery facilities that result in the reduction or elimination of
significant distribution system water losses or replace a failing system component that
threatens the health, safety, welfare, and economy of areas relying on the water
distribution system.
(fj "Local agency" or "agency" means any city, county, city and county, district, joint
powers authority, or other political subdivision of the state involved with water
management. "Local agency" or "agency" also means a mutual water company. For
purposes of this chapter, mutual water company means a nonprofit corporation
organized for, or engaged in the business of, developing, distributing, supplying, or
delivering water for irrigation or domestic use, or both, to its members or shareholders,
at actual cost plus necessary expenses.
(g) "Project" may include any of the following:
(1) Water conservation project.
(2) Groundwater recharge facilities.
(3) Urban water conservation project.
(4) Infrastructure rehabilitation project.
(h) "Urban water conservation project" means capital outlay features of urban water
conservation programs identified in the "Memorandum of Understanding Regarding
Urban Water Conservation in California, " as amended on April 8, 1998, by the
California Urban Water Conservation Council, and any amendments thereto.
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79152. The Water Conservation Account is hereby created in the fund.
79153. (a) The sum of one hundred fifty-five million dollars ($155,000,000) is hereby
transferred from the fund to the account for the purposes of this chapter.
(b) Unallocated funds remaining in the Water Conservation and Groundwater Recharge
Subaccount in the Water Supply Reliability Account in the Safe, Clean, Reliable Water
Supply Fund on March 8, 2000, shall be transferred to, and all money repaid to the state
pursuant to any loan contract executed under Article 3 (commencing with Section
78670) of Chapter 6 of Division 24 shall be deposited in, the account for the purposes of
entering into additional loans under Article 3 (commencing with Section 79157) and
Article 4 (commencing with Section 79161).
79154. (a) Any loan agreement entered into pursuant to this chapter may include
provisions determined to be necessary by the department.
(b) Any loan agreement pursuant to this chapter shall include all of the following:
(1) A finding by the department that the agency has the ability to repay the loan, that the
project is cost-effective, and that the project is feasible from an engineering or
hydrologic standpoint, or both.
(2) An agreement by the agency to proceed expeditiously with, and complete, the project
in conformance with approved plans and specifications and to operate and maintain the
project properly upon completion throughout the repayment period.
(3) A provision that there shall be no moratorium on, or deferment of, payments of
principal or interest.
(4) (A) 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.
(B) If the interest rate so determined is not a multiple of I percent, the interest rate shall
be set at the next multiple of one-tenth of 1 percent.
(C) The interest rate for each loan agreement shall be applied throughout the repayment
period of the contract. There shall be a level annual repayment of principal and interest
on the loans.
79155. (a) Any grant agreement entered into pursuant to this chapter may include
provisions determined to be necessary by the department.
(b) Any grant agreement pursuant to this chapter shall include both of the following:
(1) A determination by the department that the project is economically justified, and that
the project is feasible.
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(2) An estimate of the reasonable cost and benefit of the project, including a feasibility
report that sets forth the engineering and financial feasibility of the project, and shall
include a description of the proposed facilities and their relation to other water -related
facilities in the system service area.
79155.5. Notwithstanding any other provision of law, regulations set forth in 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 March 8, 2000, may be used to carry out this chapter.
79156. Not more than 3 percent of the total amount deposited in the subaccount may be
used by the department to pay the costs incurred in connection with the administration of
this article.
Article 3. Agricultural Water Conservation Program
79157. (a) The sum of thirty-five million dollars ($35,000,000) in the account, upon
appropriation by the Legislature to the department, shall be used by the department for
loans to local agencies to aid in the acquisition and construction of agricultural water
conservation projects, and for grants in accordance with Section 79158.
(b) For the purposes of approving a loan under this section, the department shall
determine if there will be a net saving of water as a result of each proposed project and
if the project is determined by the department to be cost-effective.
(c) A project under this article shall not receive any more than five million dollars
($5,000,000) in loan proceeds from the department.
(d) The department shall give preference to the agencies that propose the most cost-
effective projects.
79158. (a) The department may make grants to local agencies, under any terms and
conditions that may be determined necessary by the department, for the purpose of
financing feasibility studies of projects potentially eligible for a loan under Section
79157.
(b) No single feasibility study shall be eligible to receive more than one hundred
thousand dollars ($100,000), and not more than 5 percent of the total amount deposited
in the account may be expended for the purposes of financing feasibility studies.
(c) A grant for a feasibility study shall not affect the maximum amount of any loan that
may be made under this article.
Article 4. Groundwater Recharge Facilities Program
79161. (a) The sum of thirty million dollars ($30,000,000) in the account is hereby
appropriated to the department, without regard to fiscal years, for use by the department
for loans and grants to local agencies for the acquisition and construction of
groundwater recharge facilities.
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(b) A loan application pursuant to this article shall include the reasonable cost and
benefit of the proposed project, including a feasibility report that shall set forth the
economic justification for the project, and shall include explanations of the proposed
facilities and their relation to other water supply related facilities in the basin or region.
(c) A project under this article shall not receive any more than five million dollars
($5,000,000) in loan proceeds from the department.
(d) The department shall give preference under this section to projects that are located
in overdrafted groundwater basins, projects of critical need, projects whose feasibility
studies demonstrate the greatest engineering and hydrogeologic feasibility as
determined by the department, and projects located in areas that have groundwater
management plans.
79161.5. (a) The department may make grants to local agencies, under any terms and
conditions that may be determined necessary by the department, for the purpose of
financing feasibility studies of projects potentially eligible for a loan under Section
79161.
(b) No single feasibility study shall be eligible to receive more than one hundred
thousand dollars ($100,000), and not more than 5 percent of the total amount deposited
in the account may be expended for the purposes of financing feasibility studies.
(c) A grant for a feasibility study shall not affect the maximum amount of any loan that
may be made under this article.
Article 5. Infrastructure Rehabilitation Program
79162. (a) The sum of sixty million dollars ($60,000,000) in the account, upon
appropriation by the Legislature to the department, shall be used by the department for
grants awarded by the department to local agencies for the purposes of funding
infrastructure rehabilitation projects.
(b) (1) For the purposes of making grants pursuant to subdivision (a), the factors to be
considered by the department in determining whether to enter into an agreement shall
include, but not be limited to, the need to implement projects that provide measurable
conservation through the reduction of system water losses by rehabilitating water
delivery systems.
(2) Grants awarded pursuant to subdivision (a) shall be available for public water
systems owned and operated by local agencies in economically disadvantaged areas
with service connections that exceed 200 but are not greater than 16,000 in number. The
department shall give highest priority in awarding grants to those agencies with the
highest retail water rates and service charges as of January 1, 1999.
(c) No single construction grant under this article shall exceed five million dollars
($5,000,000).
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79162.2. (a) The department may make grants to local agencies, under any terms and
conditions as may be determined necessary by the department, for the purpose of
financing feasibility studies of projects potentially eligible for a grant under Section
79162.
(b) No single feasibility study shall be eligible to receive more than one hundred
thousand dollars ($100,000), and not more than 5 percent of the total amount deposited
in the account may be expended for the purposes of financing feasibility studies.
(c) A grant for a feasibility study shall not affect the maximum of any construction grant
that may be made under this article.
79162.4. The department may adopt regulations to carry out this article.
Article 6. Urban Water Conservation Program
79163. (a) The sum of thirty million dollars ($30,000,000) in the account, upon
appropriation by the Legislature to the department, shall be used by the department for
grants and loans awarded by the department to local agencies for the purposes of
funding urban water conservation projects.
(b) A project under this article shall not receive more than five million dollars
($5,000,000) in loan proceeds from the department.
79164. (a) The department may make grants to local agencies, under any terms and
conditions that may be determined necessary by the department, for the purpose of
financing feasibility studies of projects potentially eligible for a loan under Section
79163.
(b) No single feasibility study shall be eligible to receive more than one hundred
thousand dollars ($100,000), and not more than 5 percent of the total amount deposited
in the account may be expended for the purposes of financing feasibility studies.
(c) A grant for a feasibility study shall not affect the maximum amount of any loan that
may be made under this article.
Chapter 9. Water Supply, Reliability, and
Infrastructure Program
Article 1. Water Supply, Reliability, and
Infrastructure Account
79165. For the purposes of this chapter, "account" means the Water Supply, Reliability,
and Infrastructure Account created by Section 79166.
79166. The Water Supply, Reliability, and Infrastructure Account is hereby created in
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the fund. The sum of six hundred thirty million dollars ($630,000,000) is hereby
transferred from the fund to the account.
Article 2. Groundwater Storage Program
79170. The Legislature finds and declares that the conjunctive management of surface
water and groundwater is an effective way to improve the reliability of water supply for
all sectors in California.
79171. Unless the context otherwise requires, the following definitions govern the
construction of this article:
(a) "Conjunctive use" means the temporary storage of water in a groundwater aquifer
through intentional recharge and subsequent extraction for later use. Storage is
accomplished by either of the following methods:
(I) 'Direct recharge" of an aquifer by conducting surface water into the ground by
various means, including, without limitation, spreading ponds and injection wells for the
purpose of making the water stored in the aquifer available for extraction and later use
in drier years.
(2) "In -lieu recharge" means increasing the amount of groundwater available in an
aquifer by substituting surface water supplies to a user who would otherwise pump
groundwater.
(b) "Conjunctive use facilities" include land and appurtenant facilities for any phase of a
conjunctive use operation. Appurtenant facilities may include subsurface storage,
treatment, conveyance, recharge ponds, injection wells, spreading grounds, monitoring,
measurements, subsidence detection, flow regulation, detention basins to facilitate
recharge, diversion facilities, and extraction facilities.
(c) "Conjunctive use project" means a project that is intended to produce water supply
benefits for the local agency or a project that is intended to produce water supply
benefits for water users, including the environment, in addition to the local agency.
(d) 'Local agency" means any city, county, city and county, district, joint powers
authority, mutual water company, or other political subdivision of the state.
(e) 'Project participants" means any public agency participating in, and benefiting from,
a conjunction use project under this article.
(f) "Subaccount" means the Conjunctive Use Subaccount created by Section 79172.
79172. There is hereby created in the account the Conjunctive Use Subaccount.
79173. The sum of two hundred million dollars ($200,000,000) is hereby transferred
from the account to the subaccount for the purposes of implementing this article.
79174. The money in the subaccount, upon appropriation by the Legislature to the
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this article, an applicant that is other than a local agency shall be required to carry out
that project with the participation of a local agency. The department or a local agency
may provide technical assistance, coordination, or any other assistance in implementing
a project or study if requested by the participating local agency.
79178. No construction project may receive more than fifty million dollars ($50,000,000)
from the subaccount.
79179. Not more than 5 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.
79180. Not less than 40 percent of the total amount deposited in the subaccount shall be
expended for studies, projects, and facilities within watersheds of the central valley.
79181. (a) A project undertaken pursuant to this article shall fully protect and preserve
the groundwater rights of the overlying landowners and shall fully protect and preserve
the water rights of the project participants. The department shall not provide funding for
a project unless it determines that the project will be designed and operated in a manner
that ensures that other users of the same or a hydrologically related aquifer will not
suffer any unreasonable diminution of the quantity or quality of their groundwater
supplies or incur additional uncompensated expense as a result of the implementation of
the project.
(b) For the purposes of receiving funding for a conjunctive use project pursuant to this
article, the applicant shall be required to do both of the following:
(1) Provide for a continuing groundwater monitoring and mitigation program.
(2) Limit the extraction of the groundwater to not more than the amount of water that is
stored or recharged by the project participants or the amount that complies with all laws
and contract terms governing the extraction, appropriation, and use of groundwater by
the project participants.
(c) Persons and agencies participating in the project may not assert a claim or file a
cause of action against an overlying landowner who is not exceeding either of the
following:
(1) The overlying landowner's historic rate of groundwater pumping.
(2) The full amount of groundwater to which the overlying landowner would be entitled
to under state law regarding rights to groundwater and reasonable beneficial use on the
landowner's land that overlies the groundwater.
(d) The overlying landowners may not assert a claim or file a cause of action against the
persons or agencies participating in the project if the project is implemented in
compliance with this section, except as provided by contract between the project
participants.
(e) Nothing in this article modifies state law with regard to groundwater rights,
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department, may be used by the department for grants for feasibility studies, project
design, or the construction of conjunctive use projects on a pilot or operational scale.
79175. Not more than 5 percent of the total amount deposited in the subaccount may be
expended for purposes of financing feasibility studies.
79176. For the purpose of approving projects pursuant to this article, the department
shall give priority to those projects for which there is available third party funds from
any source other than the Central Valley Project Restoration Fund authorized by the
Central Valley Project Improvement Act. The department shall also take into
consideration all of the following with regard to each proposed project:
(a) The magnitude of the actual increase in water supply yield and reliability compared
to preexisting conditions.
(b) The consistency with the plans or recommendations proposed by CALFED.
(c) The distribution of the benefits to water supply and to the environment.
(d) The availability of the storage for conserved water.
(e) The technical and environmental suitability of the groundwater basin for conjunctive
use.
(f) The potential to reduce critically overdrafted conditions in a groundwater basin.
(g) The need for the project.
(h) The potential to alleviate salt water intrusion into groundwater basins or other
groundwater quality degradation.
(i) The economic, engineering, and hydrogeologic justification for the project.
(j) The availability of third party or local matching funds from any source other than the
Central Valley Project Restoration Fund authorized by the Central Valley Project
Improvement Act.
(k) The involvement of one or more local agencies whose jurisdiction or water service
area overlies or is adjacent to the aquifer utilized to store water.
(l) The potential to reduce dry year demand for surface water under existing contracts.
(m) The existence of a system for the recovery of the stored water or an agreement with
the department or a local agency for the installation of that system.
(n) Whether the project is located in an area that is subject to a groundwater
management program.
79177. To be eligible for funding for the construction of a conjunctive use project under
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regulation, or management.
79182. In carrying out this article and awarding grants, the department shall convene
and consult with an advisory committee comprised of technically qualified
representatives of local water agencies, project participants, environmental interests,
agricultural laborer interests, and interests representing farmers who use groundwater.
The advisory committee shall be geographically balanced to reflect the communities that
use water in the central valley. If a member of the advisory committee, or a member of
his or her immediate family, is employed by a grant applicant or the employer of a grant
applicant, the committee members shall make that disclosure to the other members of the
committee and shall not participate in the review of the grant application of that
applicant.
79183. The department may adopt regulations to carry out this article.
Article 3. Bay -Delta Multipurpose Water
Management Program
79190. Unless the context otherwise requires, the following definitions govern the
construction of this article:
(a) "CALFED Bay -Delta Program" or ' program" means the undertaking by CALFED
pursuant to the Framework Agreement dated June 20, 1994, to develop a long-term
solution to water management, environmental, and other problems in the bay -delta
watershed by means of a programmatic environmental impact statement/ environmental
impact report.
(b) "CALFED EISIEIR "means the final programmatic environmental impact
statement/environmental impact report prepared by CALFED.
(c) "CALFED stage 1 action" means an action identified in the preferred alternative of
the CALFED EISIEIR as an action intended for implementation during stage 1 of Phase
III of the CALFED Bay -Delta Program.
(d) (1) "Eligible project" means a demonstration project, subject to the CALFED
adaptive management principle that requires an assessment of the performance of the
demonstration projects in order to determine which projects are successful in achieving
the goals of the program.
(2) "Eligible project" means a project that meets both of the following requirements.
(A) The project is identified in the CALFED EIS/EIR as a CALFED stage 1 action.
(B) The project does one or more of the following:
(i) Constructs treatment facilities or relocates discharge facilities for agricultural
drainage generated within the delta to improve water quality in the delta or the quality
of water that is transported from the delta.
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(ii) Constructs facilities to control waste discharges that contribute to low dissolved
oxygen and other water quality problems in the lower San Joaquin River and the south
delta.
(iii) Constructs fish facilities for the State Water Project or the Central Valley Project
intakes in the south delta, such as facilities for fish screens, fish handling, and fish
passage, or modifications to intake structures or other facilities, to reduce losses of any
life stages offish to water diversions in the San Joaquin River and the delta in
accordance with paragraph (1) of Section (C) of Chapter IV of the board's 1995 water
quality control plan.
(iv) Constructs a permanent barrier at the head of Old River to improve fish migration
and other permanent barriers in the south delta channels to improve water quality and
water level for local diversions.
(v) Constructs facilities to control drainage from abandoned mines that adversely affect
water quality in the bay -delta.
(vi) Constructs a permanent barrier at Grantline Canal to improve water quality and
water levels for local diversion.
(e) "Subaccount" means the Bay -Delta Multipurpose Water Management Subaccount
created by Section 79194.
79191. This article does not affect the authority of any agency pursuant to any other
provision of law to expend funds for the purposes described in this article.
79192. 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,
including the recovery of endangered species such as chinook salmon, water quality,
water supply, water management, and system integrity for the protection of beneficial
uses of the bay -delta ecosystem.
(b) The CALFED Bay -Delta Program 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 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 elements of the CALFED Bay -Delta Program will achieve balanced solutions in
all identified problem areas, including the ecosystem, water quality, water supply, and
system integrity.
79193. (a) This article does not authorize the implementation of the CALFED Bay -Delta
Program or any element of that program. The implementation of the CALFED Bay -Delta
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Program, or any element of that program, shall only be undertaken pursuant to authority
provided by law other than this division.
(b) Nothing in this article affects the obligation to comply with provisions of existing law
in connection with the implementation of this article.
79194. There is hereby created in the account the Bay -Delta Multipurpose Water
Management Subaccount.
79195. The sum of two hundred fifty million dollars ($250,000,000) is hereby transferred
from the account to the Subaccount.
79196. (a) The money in the Subaccount, upon appropriation by the Legislature to the
department, may be used by the department to carry out eligible projects and for the
purposes of Section 79202.
(b) Money in the Subaccount that is allocated to carry out eligible projects, as described
in clauses (ii), (iv), and (vi) of subparagraph (B) of paragraph (2) of subdivision (d) of
Section 79190, and is not expended for those purposes, may be reallocated by the
department to carry out other eligible projects, as described in clauses (i), (iii), and (v)
of subparagraph (B) of paragraph (2) of subdivision (d) of Section 79190.
(c) No funds in the Subaccount shall be used by the department unless and until the
department has consulted, on an annual basis, with the state and federal agencies that
participate in CALFED, as well as representatives of the public convened as a duly
authorized advisory committee, with regard to the specific projects proposed for funding
under this article. Decisions regarding specific expenditures of funds provided under
this article shall be jointly determined, to the maximum extent possible, by the
recommendations of the state and federal CALFED agencies with the advice of the
advisory committee.
79196.5. The funds appropriated pursuant to Section 79196 shall be allocated as
follows:
(a) Seventeen million dollars ($17,000,000) for the purposes of the project described in
clause (i) of subparagraph (B) of paragraph (2) of subdivision (d) of Section 79190.
(b) Forty million dollars ($40,000,000) for the purposes of the project described in
clause (ii) of subparagraph (B) of paragraph (2) of subdivision (d) of Section 79190.
(c) One hundred twenty million dollars ($120,000,000) for the purposes of the project
described in clause (iii) of subparagraph (B) of paragraph (2) of subdivision (d) of
Section 79190.
(d) Forty million dollars ($40,000,000) for the purposes of the project described in
clause (iv) of subparagraph (B) of paragraph (2) of subdivision (d) of Section 79190.
(e) Seventeen million dollars ($17,000,000) for the purposes of the project to described
in clause (v) of subparagraph (B) of paragraph (2) of subdivision (d) of Section 79190.
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(f) Sixteen million dollars ($16,000,000) for the purposes of the project described in
clause (vi) of subparagraph (B) of paragraph (2) of subdivision (d) of Section 79190.
79197. No funds in the subaccount may be expended until all of the following conditions
have been met.-
(a)
et:
(a) The CALFED 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 Public Resources Code.
(b) The CALFED EIVEIR has been filed by the federal lead agencies with the United
States Environmental Protection Agency, the required notice has been published in the
Federal Register, and there has been federal approval of a program identical to the
program approved by the state.
79198. The state, to the greatest extent possible, shall secure federal and nonfederal
funds to implement this article.
79199. 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 shall apply to the use of funds authorized by this article:
(a) After the requirements set forth in Section 79197 are met, funds in the subaccount
shall become available for use in accordance with the schedule for eligible projects set
forth in the final programmatic EIS/EIR, unless the Secretary of the Resources Agency
determines that the schedule established in the final programmatic EIS/EIR has not been
substantially adhered to.
(b) On or before 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.
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(e) Funds in the subaccount shall become available in accordance with the cost -share
agreement developed by the CALFED Bay -Delta Program, which shall describe the
federal, state, and local share of funding for the programs, projects, and other CALFED
stage I actions.
79200. 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 79199 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.
79201. The report prepared pursuant to Section 79200 shall include both of the
following:
(a) A summary of the results achieved by the projects funded under this article.
(b) An identification of any necessary modifications that should be made to eligible
projects or other CALFED bay -delta projects, to ensure that the goals and objectives of
CALFED are met.
79201.5. Nothing in this article shall be construed to address the allocation of benefits
from projects or programs funded by this article. It is anticipated that this issue will be
settled in the CALFED process or by the Legislature by statute.
79202. Not more than 5 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.
79203. The department may adopt regulations to carry out this article.
Article 4. Interim Water Reliable Supply and Water
Quality Infrastructure and Management Program
79205.2. (a) 'Delta export service area, " as used in this article, means both of the
following:
(1) The counties included within the Association of Bay Area Governments.
(2) Those areas of the state outside the delta that receive waterfront the State Water
Project or the Central Valley Project, either directly or by exchange, by means of
diversions from the delta.
(b) 'Local agency, " as used in this article, means any city, county, city and county,
district, or other political subdivision of the state.
79205.4. (a) There is hereby created the Interim Water Supply and Water Quality
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Infrastructure and Management Subaccount.
(b) For the purposes of this article, "subaccount" means the Interim Reliable Water
Supply and Water Quality Infrastructure and Management Subaccount.
79205.6. The sum of one hundred eighty million dollars ($180,000,000) is hereby
transferred from the account to the subaccount for the purposes of this article.
79205.8. (a) The money in the subaccount, upon appropriation by the Legislature to the
department, may be used by the department to provide grants or loans, or any
combination thereof, which are approved by the Governor, to local agencies located in
the delta export service areas for programs or projects that can be completed and
provide the intended benefits not later than March 8, 2009, and are designed to increase
water supplies, enhance water supply reliability, or improve water quality.
(b) The department shall provide grants for programs or projects located outside the
delta and which meet one of the following requirements:
(1) The project or program constructs new or expands existing groundwater storage and
recovery projects or acquires rights to use storage in existing reservoirs.
(2) The project or program implements measures that facilitate improved water
treatment, water transfers, or exchanges, including, but not limited to, a project that
improves water quality by shifting reliance from lower quality to higher quality water
supplies.
(3) The project or program implements state of the art agricultural water conservation
programs, and programs that treat or manage agricultural drainage water for reuse or
instream water quality benefits.
(c) The department shall list the projects that are proposed to be funded from the
subaccount.
79205.10. For purposes of prioritizing eligible programs or projects for funding under
this article, the department shall give priority to programs or projects that meet one or
more of the following requirements:
(a) Can be completed expeditiously and thereby provide near term benefits and more
immediate mitigation of urgent problems related to water supply and water quality.
(b) Implements actions to improve water quality and protect water level conditions in
San Luis Reservoir.
(c) Includes public-private partnerships or cost sharing arrangements that maximize
public benefits.
(d) Sponsored by a public agency with water supplies that are being or would be
impacted to a greater degree by delta -related water supply shortages and water quality
degradation.
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79205.12. The state, to the greatest extent possible, shall seek matching federal funds to
implement this article.
79205.14. Funds available from the subaccount shall be available for all phases of
project development including, but not limited to, project administration, permitting and
environmental compliance, feasibility studies, and construction.
79205.16. Not more than 5 percent of the total amount deposited in the subaccount may
be used to pay costs incurred in connection with the administration of this article.
Chapter 10. Fiscal Provisions
79210. Bonds in the total amount of one billion nine hundred seventy million dollars
($1,970,000,000), not including the amount of any refunding bonds issued in accordance
with Section 79219, 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
be used to reimburse the General Obligation Bond Expense Revolving Fund pursuant to
Section 16724.5 of the Government Code. The bonds, when sola 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 the principal of,
and interest on, the bonds as the principal and interest become due and payable.
79211. (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), except Section 16727, 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, each state agency that
administers an appropriation of the Safe Drinking Water, Clean Water, Watershed
Protection, and Flood Protection Bond Fund is designated the "board. "
79212. 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, Clean Water, Watershed Protection, and Flood Protection Finance
Committee is hereby created. For purposes of this division, the Safe Drinking Water,
Clean Water, Watershed Protection, and Flood Protection 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.
79213. 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.
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79214. There shall be collected each year and in the same manner and at the same time
as other state revenue is collected, in addition to the ordinary revenues of the state, a
sum in an amount required to pay the principal of, and interest on, the bonds each year.
It is the duty of all officers charged by law with any duty in regard to the collection of
the revenue to do and perform each and every act that is necessary to collect that
additional sum.
79215. 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 79216, appropriated without regard to fiscal
years.
79216. For the purposes of carrying out this division, the Director of Finance may
authorize the withdrawal from the General Fund of an amount not to exceed the amount
of the unsold bonds that have been authorized by the 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 proceeds received from the sale of bonds for
the purpose of carrying out this division.
79217. 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.
79218. The agency that administers an appropriation of the Safe Drinking Water, Clean
Water, Watershed Protection, and Flood Protection Bond Fund 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, by resolution, has authorized to be sold for the purpose of carrying
out this division. The requesting agency 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 requesting agency in accordance with this
division.
79219. 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 other bonds issued to refund any bonds originally issued under this
division or any previously issued refunding bonds.
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79220. 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 for 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 those bond proceeds
required or desirable under federal law to maintain the tax-exempt status of those bonds
and to obtain any other advantage under federal law on behalf of the funds of that state.
79221. 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. 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 section.
(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 provisions:
(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
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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 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 in the
Clean Water and Water Recycling Account in the Safe Drinking Water, Clean Water,
Watershed Protection, and Flood Protection Bond Fund created by Section 79136, for
the purposes set forth in Article 4 (commencing with Section 79135) of Chapter 7 of
Division 26.
SEC. 4. Section 78621 of the Water Code is amended to read:
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) Water Recycling Subaccount in the Clean Water and Water Recycling
Account in the Safe Drinking Water, Clean Water, Watershed Protection, and Flood
Protection Bond Fund created by Section 79136, for the purposes set forth in Article 4
(commencing with Section 79135) of Chapter 7 of Division 26.
(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.
SEC. 5. Section 78626 of the Water Code is repealed.
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.
SEC. 6. Section 78626 is added to the Water Code, to read:
78626. Unallocated funds remaining in the subaccount on March 8, 2000, and any funds
deposited into the subaccount after that date, shall be transferred to, and all money
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repaid to the state pursuant to any loan contract executed under this article shall be
deposited in, the Water Recycling Subaccount in the Clean Water and Water Recycling
Account in the Safe Drinking Water, Clean Water, Watershed Protection, and Flood
Protection Bond Fund for the purposes set forth in Section 79140.
SEC. 7. Section 78648.12 of the Water Code is repealed.
7864812 All principal and interest payments received pursuant to loan contracts
entered into pursuant to this article shall be deposited in the Subaccount
SEC. 8. Section 78648.12 is added to the Water Code, to read:
78648.12. Unallocated funds remaining in the subaccount on March 8, 2000 and any
funds deposited into the subaccount after that date, shall be transferred to, and all
money repaid to the state pursuant to any loan contract executed under this article shall
be deposited in, the Seawater Intrusion Control Subaccount in the Clean Water and
Water Recycling Account in the Safe Drinking Water, Clean Water, Watershed
Protection, and Flood Protection Bond Fund for the purposes set forth in Article 6
(commencing with Section 79149) of Chapter 7 of Division 26.
SEC. 9. Section 78675 of the Water Code is repealed.
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.
SEC. 10. Section 78675 is added to the Water Code, to read:
78675. Unallocated funds remaining in the subaccount on March 8, 2000, shall be
transferred to, and all money repaid to the state pursuant to any loan contract executed
under this article shall be deposited in, theWater Conservation Account in the Safe
Drinking Water, Clean Water, Watershed Protection, and Flood Protection Bond Fund
for the purposes of entering into additional loans under Article 3 (commencing with
Section 79157) and Article 4 (commencing with Section 79161) of Chapter 8 of Division
26.
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