HomeMy WebLinkAbout8.4 Support for Prop 1 or
19 82 STAFF REPORT CITY CLERK
` CITY COUNCIL File #660-40
DATE: October 7, 2014
TO: Honorable Mayor and City Councilmembers
FROM: Christopher L. Foss, City Manager "
SUBJECT: Support for Proposition 1, the Water Quality, Supply, and Infrastructure
Improvement Act of 2014
Prepared by Roger Bradley, Assistant to the City Manager
EXECUTIVE SUMMARY:
The City Council will consider adopting a resolution indicating the City's support of Proposition
1, the Water Quality, Supply and Infrastructure Improvement Act of 2014.
FINANCIAL IMPACT:
None.
RECOMMENDATION:
Staff recommends that the City Council adopt the Resolution Supporting the Passage of
Proposition 1, the Water Quality, Supply and Infrastructure Improvement Act of 2014.
Reviewed By
Assistant City Manager
DESCRIPTION:
On January 30, 2014, the Dublin San Ramon District (DSRSD), Zone 7 and other water
retailers co-hosted a community forum where California Natural Resources Secretary John
Laird presented the California Water Action Plan (CWAP) to an auditorium filled with local
stakeholders. On February 18, 2014, the DSRSD endorsed the Association of California Water
Agencies' (ACWA) Statewide Water Action Plan (SWAP) which calls for significant investments
in California's water infrastructure and water management and ecosystem improvements. The
SWAP is consistent with the CWAP.
The Water Quality, Supply and Infrastructure Improvement Act of 2014 (the Act) has been
placed on the November 2014 ballot as Proposition 1. It is one implementing vehicle for the
actions called for in the CWAP and the SWAP. A fact sheet related to the Act and a copy of the
Proposition itself are included as Attachments 1 and 2, respectively. The Act is the product of
Page 1 of 2 ITEM NO. 8.4
more than five years of discussions among state lawmakers, stakeholders and others to craft a
responsible bond measure to fund needed investments as part of a statewide comprehensive
water plan for California. The measure passed the Legislature (Assembly 77-2; Senate 37-0)
and was signed by Governor Edmund G. Brown Jr. It is supported by a broad coalition of water,
business, conservation, labor and agriculture organizations. ACWA, CASA, The League of
California Cities, The State Association of California Counties and the California Chamber of
Commerce have taken support positions. Locally, both DSRSD and Zone 7 Boards have
adopted a support position for Proposition 1. A listing of other known supporters and opponents
along with ballot arguments for and against Proposition 1 is included in Attachment 3. The
Legislative Analyst Office report is included as Attachment 4.
If approved by voters, Proposition 1 would provide funding for new surface and groundwater
storage projects, regional water reliability, sustainable groundwater management and cleanup,
water recycling, water conservation, watershed protection and safe drinking water, particularly
for disadvantaged communities. This funding would directly and indirectly benefit DSRSD and
by association the City by increasing the reliability of the water supply received and providing
funding for local and regional projects.
The Act is a $7.545 billion general obligation bond (which replaces an $11.14 billion measure).
Key funding areas include: $2.7 billion for surface and groundwater storage; $810 million for
regional water reliability; $520 million for safe drinking water; $750 million for water recycling;
$900 million for groundwater sustainability; $1.495 billion for watershed protection, ecosystem
restoration, and state settlements; and $395 million for statewide flood management.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
None.
ATTACHMENTS: 1. DSRSD Fact Sheet: Water Bond at a Glance
2. Proposition 1
3. Supporters, Opponents and Ballot Arguments
4. Legislative Analyst Office Proposition 1 Report
5. Letter of Correspondence from DSRSD
6. Resolution Declaring Support for Proposition 1, the Water Quality,
Supply and Infrastructure Improvement Act of 2014
Page 2 of 2
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Proposition 1: The Water Quality, Supply and Infrastructure Improvement Act of 2014
What would (t dm?
If approved by voters,the measure would provide funding for new surface and groundwater storage projects,
regional water reliability, sustainable groundwater management and cleanup,water recycling,water
conservation,watershed protection and safe drinking water, particularly for disadvantaged communities.
How much would it cost?
$7.545 billion general obligation bond (which replaces an $11.14 billion measure previously slated for the
November ballot)
What key areas would (tfund?
• Surface and Groundwater Storage $2.7 billion
o Continuous appropriations for above and below ground water storage projects
• Regional Water Reliability $810 million
• Integrated regional water management($51Omillion)
• Stornnvvatercapture ($200 million)
• Water conservation ($100 million)
• Safe Drinking Water $520 million
• Leverages federal funds for safe drinking water and dean water programs and for disadvantaged
communities, snna|| community wastewater program ($260 million)
• Drinking water public infrastructure ($260 million)
• Water Recycling-$750 million
o Statewide water recycling projects and activities
• GrmmndxvaterSmsta(nab(|(ty $900 million
• Prevent and reduce groundwater contaminants ($8OOmillion)
• Provide sustainable groundwater management planning and implementation ($100 million)
• Watershed Protection, Ecosystem Restoration,State Settlements $1.495 billion
• Conservancies ($327.5million)
• Wildlife Conservation Board ($2OO million for restoration of flows)
• Department of Fish and Wildlife ($285 million out of Delta, no mitigation on Bay Delta
Conservation Plan)
• Department of Fish and VVi|d|ihs ($87.5 million in the Delta with constraints)
• State settlement obligations including CVP|8($475million)
• Rivers and creeks ($120 million)
* Statewide Flood Management $395 million
• Statewide flood management projects and activities ($1OOmillion)
• Delta levee subvention programs and Delta flood protection projects ($295million)
General Provisions
• Requires urban or agricultural water management plans and compliance with 2009 Water Conservation
Act to be eligible for funding
• |tis neutral regarding the Bay Delta Conservation Plan
• Protects existing water rights and reaffirms area of origin protections
Background
Proposition 1 is the product of more than five years of discussions and negotiations among state lawmakers,
stakeholders and others to craft a responsible bond measure to fund needed investments as part of a statewide
comprehensive water plan for California. The measure was approved by the Legislature and signed byGovernor
Edmund G. Brown]r, on August 13, 2O14.
It is supported by a broad coalition of water, business,conservation, labor and agriculture organizations.
Assembly Bill No. 1471
CHAPTER 188
An act to add Sections 5096.968 and 75089 to the Public Resources Code,
to add Sections 13467,78691.5,79222,and 79591 to,and to repeal and add
Division 26.7 (commencing with Section 79700) of, the Water Code, and
to repeal Section 2 of Chapter 3 of the Seventh Extraordinary Session of
the Statutes of 2009, relating to a water quality, supply, and infrastructure
improvement program,by providing the funds necessary therefor through
an election for the issuance and sale of bonds of the State of California and
for the handling and disposition of those funds, and declaring the urgency
thereof,to take effect immediately.
[Approved by Govemor August 13,2014.Filed with
Secretary of State August 13,2014.]
LEGISLATIVE COUNSEL'S DIGEST
AB 1471,Rendon.Water Quality,Supply,and Infrastructure Improvement
Act of 2014.
(1) Existing law, the Safe, Clean, and Reliable Drinking Water Supply
Act of 2012, if approved by the voters, would authorize the issuance of
bonds in the amount of $11,140,000,000 pursuant to the State General
Obligation Bond Law to finance a safe drinking water and water supply
reliability program. Existing law provides for the submission of the bond
act to the voters at the November 4,2014, statewide general election.
This bill would repeal these provisions.
(2) Under existing law, various measures have been approved by the
voters to provide funds for water supply and protection facilities and
programs.Existing law,the Safe Drinking Water,Water Quality and Supply,
Flood Control,River and Coastal Protection Bond Act of 2006,an initiative
measure approved by the voters as Proposition 84 at the November 7,2006,
statewide general election, authorizes the issuance of bonds in the amount
of$5,388,000,000 for the purposes of financing safe drinking water,water
quality and supply, flood control, natural resource protection, and park
improvements.Existing law,the Disaster Preparedness and Flood Prevention
Bond Act of 2006,approved by the voters as Proposition I E at the November
7,2006,general statewide election,authorizes the issuance of bonds in the
amount of$4,090,000,000 for the purposes of financing disaster preparedness
and flood prevention projects. Existing law, the Water Security, Clean
Drinking Water, Coastal and Beach Protection Act of 2002, an initiative
measure approved by the voters as Proposition 50 at the November 5,2002,
statewide general election, authorizes, for the purposes of financing a safe
drinking water, water quality, and water reliability program, the issuance
of bonds in the amount of$3,440,000,000.Existing law,the Costa-Machado
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Ch. 188 —2—
Water Act of 2000,approved by the voters as Proposition 13 at the March
7, 2000, statewide primary election, authorizes the issuance of general
obligation bonds in the amount of $1,970,000,000 for the purposes of
financing a safe drinking water,clean water,watershed protection,and flood
protection program. Existing law, the Safe, Clean, Reliable Water Supply
Act, approved by the voters as Proposition 204 at the November 5, 1996,
statewide general election, authorizes the issuance of general obligation
bonds in the amount of$995,000,000 for the purposes of financing a safe,
clean,reliable water supply program.Existing law,the Water Conservation
and Water Quality Bond Law of 1986,approved by the voters as Proposition
44 at the June 3, 1986, statewide primary election,authorizes the issuance
of general obligation bonds in the amount of$150,000,000 for the purposes
of financing a water conservation and water quality program.
This bill would enact the Water Quality, Supply, and Infrastructure
Improvement Act of 2014,which,if approved by the voters,would authorize
the issuance of bonds in the amount of$7,120,000,000 pursuant to the State
General Obligation Bond Law to finance a water quality, supply, and
infrastructure improvement program.This bill,upon voter approval,would
reallocate $425,000,000 of the unissued bonds authorized for the purposes
of Propositions 1E, 13, 44, 50, 84, and 204 to finance the purposes of a
water quality, supply,and infrastructure improvement program.
This bill would provide for the submission of these provisions to the
voters at the November 4,2014, statewide general election.
(3) This bill would declare that it is to take effect immediately as an
urgency statute.
The people of the State of California do enact as follows:
SECTION 1. Section 5096.968 is added to the Public Resources Code,
to read:
5096968. Notwithstanding any other law, one hundred million dollars
($100,000,000) of the unissued bonds authorized for the purposes of this
chapter are reallocated to finance the purposes of,and shall be authorized,
issued, and appropriated in accordance with, Division 26.7 (commencing
with Section 79700)of the Water Code.The funds available for reallocation
shall be made on a pro-rata basis from each bond allocation of this chapter.
SEC. 2. Section 75089 is added to the Public Resources Code,to read:
75089. Notwithstanding any other law,one hundred five million dollars
($105,000,000) of the unissued bonds authorized for the purposes of this
division are reallocated for the purposes of,and shall be authorized,issued,
and appropriated in accordance with, Division 26.7 (commencing with
Section 79700)of the Water Code.The funds available for reallocation shall
be made on a pro-rata basis from each bond allocation of this division.
SEC. 3. Section 13467 is added to the Water Code,to read:
13467. Notwithstanding any other law, thirteen million five hundred
thousand dollars ($13,500,000) of the unissued bonds authorized for the
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purposes of subdivision(a)of Section 13459 are reallocated to finance the
purposes of,and shall be authorized,issued,and appropriated in accordance
with,Division 26.7(commencing with Section 79700).
SEC.4. Section 78691.5 is added to the Water Code,to read:
78691.5. Notwithstanding any other law, nine million nine hundred
thousand dollars ($9,900,000) of the unissued bonds authorized for the
purposes of Sections 78550 to 78551,inclusive,three million two hundred
thousand dollars ($3,200,000) of the unissued bonds authorized for the
purposes of Section 78671, three million five hundred thousand dollars
($3,500,000)of the unissued bonds authorized for the purposes of paragraph
(3) of subdivision (a) of Section 78680, and eight million one hundred
thousand dollars ($8,100,000) of the unissued bonds authorized for the
purposes of Section 78681.2,and eight hundred thousand dollars($800,000)
of the unissued bonds authorized for the purposes of Section 78530.5 are
reallocated to finance the purposes of,and shall be authorized, issued,and
appropriated in accordance with,Division 26.7(commencing with Section
79700).
SEC. 5. Section 79222 is added to the Water Code,to read:
79222. Notwithstanding any other law, thirty-four million dollars
($34,000,000)of the unissued bonds authorized for the purposes of Section
79157, and fifty-two million dollars ($52,000,000) of the unissued bonds
authorized for the purposes of Section 79195 are reallocated to finance the
purposes of,and shall be authorized,issued,and appropriated in accordance
with,Division 26.7(commencing with Section 79700).
SEC. 6. Section 79591 is added to the Water Code,to read:
79591. Notwithstanding any other law, ninety-five million dollars
($95,000,000) of the unissued bonds authorized for the purposes of this
division are reallocated for the purposes of,and shall be authorized,issued,
and appropriated in accordance with, Division 26.7 (commencing with
Section 79700). The funds available for reallocation shall be made on a
pro-rata basis from each bond allocation of this division.
SEC.7. Division 26.7 (commencing with Section 79700)of the Water
Code, as added by Section 1 of Chapter 3 of the Seventh Extraordinary
Session of the Statutes of 2009,is repealed.
SEC. 8. Division 26.7 (commencing with Section 79700) is added to
the Water Code,to read:
DIVISION 26.7. WATER QUALITY, SUPPLY,AND
INFRASTRUCTURE IMPROVEMENT ACT OF 2014
CHAPTER 1. SHORT TITLE
79700. This division shall be known, and may be cited, as the Water
Quality, Supply,and Infrastructure Improvement Act of 2014.
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CHAPTER 2. FINDINGS
79701. The people of California find and declare all of the following:
(a) Safeguarding California's supply of clean and safe water for homes,
businesses, and farms is an essential responsibility of government, and
critical to protecting the quality of life for all Californians.
(b) Every Californian should have access to clean, safe, and reliable
drinking water.
(c) California has been experiencing more frequent and severe droughts
and is currently enduring the worst drought in 200 years. These droughts
are magnifying the shortcomings of our current water infrastructure.
(d) California's water infrastructure continues to age and deteriorate.
More than 50 years ago,Californians approved the construction of the State
Water Project. In recent decades, however, that infrastructure has proven
inadequate to meet California's growing needs.
(e) This measure provides funding to implement the three objectives of
the California Water Action Plan which are more reliable water supplies,
the restoration of important species and habitat, and a more resilient and
sustainably managed water infrastructure.
(f) Developing and guarding our water resources is critical for California
to maintain vibrant communities, globally competitive agriculture, and
healthy ecosystems.
(g) Encouraging water conservation and recycling are commonsense
methods to make more efficient use of existing water supplies.
(h) Sustainable water management in California depends upon reducing
and reversing overdraft and water quality impairment of groundwater basins.
Investments to expand groundwater storage and reduce and reverse overdraft
and water quality impairment of groundwater basins provide extraordinary
public benefit and are in the public interest.
(i) Protecting lakes,rivers,and streams,cleaning up polluted groundwater
supplies,and preserving water sources that supply the entire state are crucial
to providing a reliable supply of water and protecting the state's natural
resources.
(j) The Water Quality, Supply, and Infrastructure Improvement Act of
2014 provides a comprehensive and fiscally responsible approach for
addressing the varied challenges facing California's water resources.
CHAPTER 3. DEFINITIONS
79702. Unless the context otherwise requires, the definitions set forth
in this section govern the construction of this division,as follows:
(a) "Acquisition"means obtaining a fee interest or any other interest in
real property, including, easements, leases, water, water rights, or interest
in water obtained for the purposes of instream flows and development rights.
(b) "CALFED Bay-Delta Program"means the program described in the
Record of Decision dated August 28,2000.
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(c) "Commission"means the California Water Commission.
(d) "Committee" means the Water Quality, Supply, and Infrastructure
Improvement Finance Committee created by Section 79787.
(e) "Delta" means the Sacramento-San Joaquin Delta, as defined in
Section 85058.
(f) "Delta conveyance facilities" means facilities that convey water
directly from the Sacramento River to the State Water Project or the federal
Central Valley Project pumping facilities in the south Delta.
(g) "Delta counties"means the Counties of Contra Costa, Sacramento,
San Joaquin, Solano,and Yolo.
(h) "Delta plan"has the meaning set forth in Section 85059.
(i) "Director"means the Director of Water Resources.
(j) "Disadvantaged community"has the meaning set forth in subdivision
(a)of Section 79505.5,as it may be amended.
(k) `Economically distressed area" means a municipality with a
population of 20,000 persons or less,a rural county,or a reasonably isolated
and divisible segment of a larger municipality where the segment of the
population is 20,000 persons or less, with an annual median household
income that is less than 85 percent of the statewide median household
income,and with one or more of the following conditions as determined by
the department:
(1) Financial hardship.
(2) Unemployment rate at least 2 percent higher than the statewide
average.
(3) Low population density.
(0 "Fund" means the Water Quality, Supply, and Infrastructure
Improvement Fund of 2014 created by Section 79715.
(m) "Instream flows" means a specific streamfiow, measured in cubic
feet per second, at a particular location for a defined time, and typically
follows seasonal variations.
(n) "Integrated regional water management plan" has the meaning set
forth in Part 2.2 (commencing with Section 10530) of Division 6, as that
part may be amended.
(o) "Long-term"means for a period of not less than 20 years.
(p) "Nonprofit organization" means an organization qualified to do
business in California and qualified under Section 501(c)(3)of Title 26 of
the United States Code.
(q) "Proposition 1E" means the Disaster Preparedness and Flood
Prevention Bond Act of 2006 (Chapter 1.699 (commencing with Section
5096.800)of Division 5 of the Public Resources Code).
(r) "Proposition 84"means the Safe Drinking Water,Water Quality and
Supply, Flood Control, River and Coastal Protection Bond Act of 2006
(Division 43 (commencing with Section 75001) of the Public Resources
Code).
(s) "Public agency"means a state agency or department,special district,
joint powers authority, city, county, city and county, or other political
subdivision of the state.
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Ch. 188 —6—
(t) "Rainwater" has the meaning set forth in subdivision(c) of Section
10573.
(u) "Secretary"means the Secretary of the Natural Resources Agency.
(v) "Severely disadvantaged community" has the meaning set forth in
subdivision(a)of Section 116760.20 of the Health and Safety Code.
(w) "Small community water system"means a community water system
that serves no more than 3,300 service connections or a yearlong population
of no more than 10,000 persons.
(x) "State board"means the State Water Resources Control Board.
(y) "State General Obligation Bond Law" means the State General
Obligation Bond Law(Chapter 4(commencing with Section 16720)of Part
3 of Division 4 of Title 2 of the Government Code).
(z) "State small water system"has the meaning set forth in subdivision
(n)of Section 116275 of the Health and Safety Code.
(aa) "Stormwater"has the meaning set forth in subdivision(e)of Section
10573.
(ab) "Water right" means a legal entitlement authorizing water to be
diverted from a specified source and put to a beneficial,nonwasteful use.
CHAPTER 4. GENERAL PROVISIONS
79703. An amount that equals not more than 5 percent of the funds
allocated for a grant program pursuant to this division may be used to pay
the administrative costs of that program.
79704. Unless otherwise specified,up to 10 percent of funds allocated
for each program funded by this division may be expended for planning
and monitoring necessary for the successful design, selection, and
implementation of the projects authorized under that program.This section
shall not otherwise restrict funds ordinarily used by an agency for
"preliminary plans,""working drawings,"and"construction"as defined in
the annual Budget Act for a capital outlay project or grant project. Water
quality monitoring data shall be collected and reported to the state board in
a manner that is compatible and consistent with surface water monitoring
data systems or groundwater monitoring data systems administered by the
state board. Watershed monitoring data shall be collected and reported to
the Department of Conservation in a manner that is compatible and consistent
with the statewide watershed program administered by the Department of
Conservation.
79705. Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code does not apply to the
development or implementation of programs or projects authorized or funded
under this division other than Chapter 8(commencing with Section 79750).
79706. (a) Prior to disbursing grants or loans pursuant to this division,
each state agency that receives an appropriation from the funding made
available by this division to administer a competitive grant or loan program
under this division shall develop and adopt project solicitation and evaluation
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guidelines. The guidelines shall include monitoring and reporting
requirements and may include a limitation on the dollar amount of grants
or loans to be awarded. If the state agency has previously developed and
adopted project solicitation and evaluation guidelines that comply with the
requirements of this subdivision,it may use those guidelines.
(b) Prior to disbursing grants or loans, the state agency shall conduct
three public meetings to consider public comments prior to finalizing the
guidelines.The state agency shall publish the draft solicitation and evaluation
guidelines on its Internet Web site at least 30 days before the public
meetings. One meeting shall be conducted at a location in northern
California,one meeting shall be conducted at a location in the central valley
of California,and one meeting shall be conducted at a location in southern
California. Upon adoption, the state agency shall transmit copies of the
guidelines to the fiscal committees and the appropriate policy committees
of the Legislature.
79707. It is the intent of the people that:
(a) The investment of public funds pursuant to this division will result
in public benefits that address the most critical statewide needs and priorities
for public funding.
(b) In the appropriation and expenditure of funding authorized by this
division,priority will be given to projects that leverage private, federal,or
local funding or produce the greatest public benefit.
(c) A funded project advances the purposes of the chapter from which
the project received funding.
(d) In making decisions regarding water resources,state and local water
agencies will use the best available science to inform those decisions.
(e) Special consideration will be given to projects that employ new or
innovative technology or practices, including decision support tools that
support the integration of multiple jurisdictions,including,but not limited
to,water supply,flood control,land use,and sanitation.
(f) Evaluation of projects considered for funding pursuant to this division
will include review by professionals in the fields relevant to the proposed
project.
(g) To the extent practicable,a project supported by funds made available
by this division will include signage informing the public that the project
received funds from the Water Quality, Supply, and Infrastructure
Improvement Act of 2014.
(h) Projects funded with proceeds from this division will be consistent
with Division 7(commencing with Section 13000)of this code and Section
13100 of the Government Code.
(i) Projects funded with proceeds from this division will promote state
planning priorities consistent with the provisions of Section 65041.1 of the
Government Code and sustainable communities strategies consistent with
the provisions of subparagraph (B) of paragraph (2) of subdivision (b) of
Section 65080 of the Government Code,to the extent feasible.
(j) California's working agricultural and forested landscapes will be
preserved wherever possible. To the extent feasible, watershed objectives
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Ch. 188 —8—
included in this division should be achieved through use of conservation
easements and voluntary landowner participation,including,but not limited
to,the use of easements pursuant to Division 10.2(commencing with Section
10200)and Division 10.4(commencing with Section 10330)of the Public
Resources Code and voluntary habitat credit exchange mechanisms.
79708. (a) The Department of Finance shall provide for an independent
audit of expenditures pursuant to this division. The secretary shall publish
a list of all program and project expenditures pursuant to this division not
less than annually,in written form,and shall post an electronic form of the
list on the Natural Resources Agency's Internet Web site.
(b) If an audit, required by statute, of any entity that receives funding
authorized by this division is conducted pursuant to state law and reveals
any impropriety,the California State Auditor or the Controller may conduct
a full audit of any or all of the activities of that entity.
(c) The state agency issuing any grant or loan with funding authorized
by this division shall require adequate reporting of the expenditures of the
funding from the grant or loan.
(d) Prior to soliciting projects pursuant to this division, state agencies
shall submit guidelines to the secretary. The secretary shall verify that the
guidelines are consistent with applicable statutes and for all the purposes
enumerated in this division. The secretary shall post an electronic form of
the guidelines submitted by state agencies and the subsequent verifications
on the Natural Resources Agency's Internet Web site.
79709. (a) Funds expended pursuant to this division for the acquisition
of a permanent dedication of water shall be in accordance with Section 1707
where the state board specifies that the water is in addition to water that is
required for regulatory requirements as provided in subdivision(c)of Section
1707. The expenditure of funds provided by this division may include the
initiation of the dedication as a short term or temporary urgency change,
that is approved in accordance with Section 1707 and either Chapter 6.6
(commencing with Section 1435) of, or Chapter 10.5 (commencing with
Section 1725)of,Part 2 of Division 2,during the period required to prepare
any environmental documentation and for approval of permanent dedication.
(b) Funds expended pursuant to this division for the acquisition of
long-term transfers of water shall be transfers in accordance with Sections
1735, 1736, and 1737 if the state board, after providing notice and
opportunity for a hearing,approves such a petition.Funds expended pursuant
to this division shall prioritize permanent transfers. Long-term transfers
shall be for a period of not less than 20 years,except for any water transfers
for the benefit of subsection(d)of Section 3406 of the Central Valley Project
Improvement Act(Title 34 of Public Law 102-575).
(c) Funds expended pursuant to this division for any acquisition of water
shall only be done pursuant to this section and shall only be used for projects
that will provide fisheries or ecosystem benefits or improvements that are
greater than required applicable environmental mitigation measures or
compliance obligations in effect at the time the funds from this division are
made available for the project and funds shall not be credited to any measures
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or obligations, except for any water transfers for the benefit of subsection
(d) of Section 3406 of the Central Valley Project Improvement Act (Title
34 of Public Law 102-575).
79710. (a) Funds provided by this division shall not be expended to
pay the costs of the design, construction, operation, mitigation, or
maintenance of Delta conveyance facilities. Those costs shall be the
responsibility of the water agencies that benefit from the design,construction,
operation,mitigation,or maintenance of those facilities.
(b) To the extent feasible, in implementing subdivision (k) of Section
79731,the Sacramento-San Joaquin Delta Conservancy shall seek to achieve
wildlife conservation objectives through projects on public lands or voluntary
projects on private lands. Funds available to the Sacramento-San Joaquin
Delta Conservancy pursuant to subdivision (k) of Section 79731 may be
used,in consultation with the Department of Fish and Wildlife,for payments
to landowners for the creation of measurable habitat improvements or other
improvements to the condition of endangered or threatened species. The
Sacramento-San Joaquin Delta Conservancy may develop and implement
a competitive program for habitat enhancements that maximizes voluntary
landowner participation in projects that provide measurable and long-lasting
habitat or species improvements in the Delta.These funds shall not be used
to subsidize or decrease the mitigation obligations of any party.
(c) In implementing subdivision(k)of Section 79731,the Sacramento-San
Joaquin Delta Conservancy shall coordinate and consult with the city or
county in which a grant is proposed to be expended or an interest in real
property is proposed to be acquired and with the Delta Protection
Commission. Acquisitions by the Sacramento-San Joaquin Delta
Conservancy pursuant to subdivision (k) of Section 79731 shall be from
willing sellers only.
79711. (a) This division does not diminish,impair,or otherwise affect
in any manner whatsoever any area of origin, watershed of origin, county
of origin, or any other water rights protections, including, but not limited
to,rights to water appropriated prior to December 19, 1914,provided under
the law. This division does not limit or affect the application of Article 1.7
(commencing with Section 1215) of Chapter 1 of Part 2 of Division 2,
Sections 10505, 10505.5, 11128, 11460, 11461, 11462, and 11463, and
Sections 12200 to 12220,inclusive.
(b) For the purposes of this division,an area that utilizes water that has
been diverted and conveyed from the Sacramento River hydrologic region,
for use outside the Sacramento River hydrologic region or the Delta, shall
not be deemed to be immediately adjacent thereto or capable of being
conveniently supplied with water therefrom by virtue or on account of the
diversion and conveyance of that water through facilities that may be
constructed for that purpose after January 1,2014.
(c) Nothing in this division supersedes,limits,or otherwise modifies the
applicability of Chapter 10 (commencing with Section 1700) of Part 2 of
Division 2, including petitions related to any new conveyance constructed
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or operated in accordance with Chapter 2(commencing with Section 85320)
of Part 4 of Division 35.
(d) Unless otherwise expressly provided, nothing in this division
supersedes, reduces, or otherwise affects existing legal protections, both
procedural and substantive, relating to the state board's regulation of
diversion and use of water, including, but not limited to, water right
priorities, the protection provided to municipal interests by Sections 106
and 106.5,and changes in water rights.Nothing in this division expands or
otherwise alters the state board's existing authority to regulate the diversion
and use of water or the courts' existing concurrent jurisdiction over
California water rights.
(e) Nothing in this division shall be construed to affect the California
Wild and Scenic Rivers Act (Chapter 1.4 (commencing with Section
5093.50) of Division 5 of the Public Resources Code) or the federal Wild
and Scenic Rivers Act(16 U.S.C. Sec. 1271 et seq.) and funds authorized
pursuant to this division shall not be available for any project that could
have an adverse effect on the values upon which a wild and scenic river or
any other river is afforded protections pursuant to the California Wild and
Scenic Rivers Act or the federal Wild and Scenic Rivers Act.
(f) Nothing in this division supersedes,limits,or otherwise modifies the
Sacramento-San Joaquin Delta Reform Act of 2009 (Division 35
(commencing with Section 85000))or any other applicable law,including,
but not limited to, Division 22.3 (commencing with Section 32300) of the
Public Resources Code.
(g) Funds provided by this division shall not be used to acquire land via
eminent domain.
(h) Notwithstanding any other law, any agency acquiring land pursuant
to this division may use the Natural Heritage Preservation Tax Credit Act
of 2000 (Division 28 (commencing with Section 37000) of the Public
Resources Code).
79712. (a) Eligible applicants under this division are public agencies,
nonprofit organizations,public utilities,federally recognized Indian tribes,
state Indian tribes listed on the Native American Heritage Commission's
California Tribal Consultation List,and mutual water companies.
(b) (1) To be eligible for funding under this division,a project proposed
by a public utility that is regulated by the Public Utilities Commission or a
mutual water company shall have a clear and definite public purpose and
shall benefit the customers of the water system and not the investors.
(2) To be eligible for funding under this division,an urban water supplier
shall adopt and submit an urban water management plan in accordance with
the Urban Water Management Planning Act (Part 2.6 (commencing with
Section 10610)of Division 6).
(3) To be eligible for funding under this division, an agricultural water
supplier shall adopt and submit an agricultural water management plan in
accordance with the Agricultural Water Management Planning Act (Part
2.8(commencing with Section 10800)of Division 6).
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(4) In accordance with Section 10608.56,an agricultural water supplier
or an urban water supplier is ineligible for funding under this division unless
it complies with the requirements of Part 2.55 (commencing with Section
10608)of Division 6.
79713. The Legislature may enact legislation necessary to implement
programs funded by this division, except as otherwise provided in Section
79760.
79714. (a) Unless otherwise specified, any state agency that has the
statutory authority to implement one or more of the purposes specified in
this bond may be eligible for appropriations from the funding made available
by this division.
(b) Funding made available by this division shall not be appropriated by
the Legislature to a specific project.
(c) Projects funded pursuant to this division may use the services of the
California Conservation Corps or certified community conservation corps,
as defined in Section 14507.5 of the Public Resources Code.
79715. The proceeds of bonds issued and sold pursuant to this division
shall be deposited in the Water Quality, Supply, and Infrastructure
Improvement Fund of 2014,which is hereby created in the State Treasury.
79716. Each state agency that receives an appropriation of funding made
available by this division shall be responsible for establishing metrics of
success and reporting the status of projects and all uses of the funding on
the state's bond accountability Internet Web site,as provided by statute.
CHAPTER 5. CLEAN,SAFE AND RELIABLE DRINKING WATER
79720. The sum of five hundred twenty million dollars($520,000,000)
shall be available,upon appropriation by the Legislature from the fund,for
expenditures, grants, and loans for projects that improve water quality or
help provide clean, safe,and reliable drinking water to all Californians.
79721. The projects eligible for funding pursuant to this chapter shall
help improve water quality for a beneficial use.The purposes of this chapter
are to:
(a) Reduce contaminants in drinking water supplies regardless of the
source of the water or the contamination.
(b) Assess and prioritize the risk of contamination to drinking water
supplies.
(c) Address the critical and immediate needs of disadvantaged,rural,or
small communities that suffer from contaminated drinking water supplies,
including,but not limited to,projects that address a public health emergency.
(d) Leverage other private,federal,state,and local drinking water quality
and wastewater treatment funds.
(e) Reduce contaminants in discharges to, and improve the quality of,
waters of the state.
(f) Prevent further contamination of drinking water supplies.
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Ch. 188 —12—
(g) Provide disadvantaged communities with public drinking water
infrastructure that provides clean,safe,and reliable drinking water supplies
that the community can sustain over the long term.
(h) Ensure access to clean, safe,reliable, and affordable drinking water
for California's communities.
(i) Meet primary and secondary safe drinking water standards or remove
contaminants identified by the state or federal government for development
of a primary or secondary drinking water standard.
79722. The contaminants that may be addressed with funding pursuant
to this chapter may include,but shall not be limited to,nitrates,perchlorate,
MTBE(methyl tertiary butyl ether),arsenic,selenium,hexavalent chromium,
mercury, PCE (perchloroethylene), TCE (trichloroethylene), DCE
(dichloroethene), DCA (dichloroethane), 1,2,3-TCP (trichloropropane),
carbon tetrachloride, 1,4-dioxane, 1,4-dioxacyclohexane,
nitrosodimethylamine,bromide,iron,manganese,and uranium.
79723. Of the funds authorized by Section 79720, two hundred sixty
million dollars ($260,000,000) shall be available for deposit in the State
Water Pollution Control Revolving Fund Small Community Grant Fund
created pursuant to Section 13477.6 for grants for wastewater treatment
projects. Priority shall be given to projects that serve disadvantaged
communities and severely disadvantaged communities,and to projects that
address public health hazards. Projects may include,but not be limited to,
projects that identify,plan,design,and implement regional mechanisms to
consolidate wastewater systems or provide affordable treatment technologies.
79724. (a) (1) Of the funds authorized by Section 79720,two hundred
sixty million dollars($260,000,000) shall be available for grants and loans
for public water system infrastructure improvements and related actions to
meet safe drinking water standards, ensure affordable drinking water, or
both. Priority shall be given to projects that provide treatment for
contamination or access to an alternate drinking water source or sources for
small community water systems or state small water systems in
disadvantaged communities whose drinking water source is impaired by
chemical and nitrate contaminants and other health hazards identified by
the state board. Eligible recipients serve disadvantaged communities and
are public water systems or public agencies. The state board may make
grants for the purpose of financing feasibility studies and to meet the
eligibility requirements for a construction grant. Eligible expenses may
include initial operation and maintenance costs for systems serving
disadvantaged communities.Priority shall be given to projects that provide
shared solutions for multiple communities, at least one of which is a
disadvantaged community that lacks safe,affordable drinking water and is
served by a small community water system, state small water system,or a
private well. Construction grants shall be limited to five million dollars
($5,000,000)per project, except that the state board may set a limit of not
more than twenty million dollars ($20,000,000) for projects that provide
regional benefits or are shared among multiple entities,at least one of which
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shall be a small disadvantaged community.Not more than 25 percent of a
grant may be awarded in advance of actual expenditures.
(2) For the purposes of this subdivision, "initial operation and
maintenance costs" means those initial, eligible, and reimbursable costs
under a construction funding agreement that are incurred up to, and
including,initial startup testing of the constructed project in order to deem
the project complete.Initial operation and maintenance costs are eligible to
receive funding pursuant to this section for a period not to exceed two years.
(b) The administering entity may expend up to twenty-five million dollars
($25,000,000) of the funds allocated in subdivision (a) for technical
assistance to eligible communities.
(c) The state board shall deposit up to two million five hundred thousand
dollars($2,500,000)of the funds available pursuant to this section into the
Drinking Water Capital Reserve Fund,which is hereby created in the State
Treasury. Moneys in the Drinking Water Capital Reserve Fund shall be
available,upon appropriation by the Legislature,and shall be administered
by the state board for the purpose of serving as matching funds for
disadvantaged communities. The state board shall develop criteria to
implement this subdivision.
79725. (a) For the purposes of awarding funding under this chapter, a
local cost share of not less than 50 percent of the total costs of the project
shall be required.The cost-sharing requirement may be waived or reduced
for projects that directly benefit a disadvantaged community or an
economically distressed area.
(b) At least 10 percent of the funds available pursuant to this chapter
shall be allocated for projects serving severely disadvantaged communities.
(c) Up to 15 percent of the funds available pursuant to this chapter may
be allocated for technical assistance to disadvantaged communities. The
agency administering this funding shall operate a multidisciplinary technical
assistance program for small and disadvantaged communities.
(d) Funding for planning activities, including technical assistance, to
benefit disadvantaged communities may exceed 15 percent of the funds
allocated, subject to the determination of the need for additional planning
funding by the state agency administering the funding.
CHAPTER 6. PROTECTING RIVERS,LAKES,STREAMS,COASTAL WATERS,
AND WATERSHEDS
79730. The sum of one billion four hundred ninety-five million dollars
($1,495,000,000) shall be available,upon appropriation by the Legislature
from the fund, in accordance with this chapter, for competitive grants for
multibenefit ecosystem and watershed protection and restoration projects
in accordance with statewide priorities.
79731. Of the funds authorized by Section 79730, the sum of three
hundred twenty-seven million five hundred thousand dollars($327,500,000)
shall be allocated for multibenefit water quality,water supply,and watershed
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Ch. 188 —14—
protection and restoration projects for the watersheds of the state in
accordance with the following schedule:
(a) Baldwin Hills Conservancy,ten million dollars($10,000,000).
(b) California Tahoe Conservancy,fifteen million dollars($15,000,000).
(c) Coachella Valley Mountains Conservancy, ten million dollars
($10,000,000).
(d) Ocean Protection Council,thirty million dollars($30,000,000).
(e) San Diego River Conservancy, seventeen million dollars
($17,000,000).
(f) San Gabriel and Lower Los Angeles Rivers and Mountains
Conservancy,thirty million dollars($30,000,000).
(g) San Joaquin River Conservancy,ten million dollars($10,000,000).
(h) Santa Monica Mountains Conservancy, thirty million dollars
($30,000,000).
(i) Sierra Nevada Conservancy,twenty-five million dollars($25,000,000).
(j) State Coastal Conservancy,one hundred million five hundred thousand
dollars($100,500,000).Eligible watersheds for the funds allocated pursuant
to this subdivision include,but are not limited to,those that are in the San
Francisco Bay Conservancy region, the Santa Ana River watershed, the
Tijuana River watershed, the Otay River watershed, Catalina Island, and
the central coast region.
(k) Sacramento-San Joaquin Delta Conservancy, fifty million dollars
($50,000,000).
79732. (a) In protecting and restoring California rivers,lakes,streams,
and watersheds,the purposes of this chapter are to:
(1) Protect and increase the economic benefits arising from healthy
watersheds,fishery resources,and instream flow.
(2) Implement watershed adaptation projects in order to reduce the
impacts of climate change on California's communities and ecosystems.
(3) Restore river parkways throughout the state,including,but not limited
to,projects pursuant to the California River Parkways Act of 2004(Chapter
3.8(commencing with Section 5750)of Division 5 of the Public Resources
Code), in the Urban Streams Restoration Program established pursuant to
Section 7048,and urban river greenways.
(4) Protect and restore aquatic,wetland,and migratory bird ecosystems,
including fish and wildlife corridors and the acquisition of water rights for
instream flow.
(5) Fulfill the obligations of the State of California in complying with
the terms of multiparty settlement agreements related to water resources.
(6) Remove barriers to fish passage.
(7) Collaborate with federal agencies in the protection of fish native to
California and wetlands in the central valley of California.
(8) Implement fuel treatment projects to reduce wildfire risks, protect
watersheds tributary to water storage facilities, and promote watershed
health.
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(9) Protect and restore rural and urban watershed health to improve
watershed storage capacity, forest health, protection of life and property,
stormwater resource management,and greenhouse gas reduction.
(10) Protect and restore coastal watersheds, including, but not limited
to,bays,marine estuaries,and nearshore ecosystems.
(11) Reduce pollution or contamination of rivers, lakes, streams, or
coastal waters,prevent and remediate mercury contamination from legacy
mines, and protect or restore natural system functions that contribute to
water supply,water quality,or flood management.
(12) Assist in the recovery of endangered,threatened,or migratory species
by improving watershed health, instream flows, fish passage, coastal or
inland wetland restoration, or other means, such as natural community
conservation plan and habitat conservation plan implementation.
(13) Assist in water-related agricultural sustainability projects.
(b) Funds provided by this chapter shall only be used for projects that
will provide fisheries or ecosystem benefits or improvements that are greater
than required applicable environmental mitigation measures or compliance
obligations.
79733. Of the funds made available by Section 79730, the sum of two
hundred million dollars($200,000,000)shall be administered by the Wildlife
Conservation Board for projects that result in enhanced stream flows.
79734. For restoration and ecosystem protection projects under this
chapter, the services of the California Conservation Corps or a local
conservation corps certified by the California Conservation Corps shall be
used whenever feasible.
79735. (a) Of the funds authorized by Section 79730, one hundred
million dollars ($100,000,000) shall be available, upon appropriation by
the Legislature,for projects to protect and enhance an urban creek,as defined
in subdivision(e)of Section 7048,and its tributaries,pursuant to Division
22.8 (commencing with Section 32600)of,and Division 23 (commencing
with Section 33000)of,the Public Resources Code and Section 79508.
(b) (1) Of the funds authorized by Section 79730,twenty million dollars
($20,000,000) shall be made available to the secretary for a competitive
program to fund multibenefit watershed and urban rivers enhancement
projects in urban watersheds that increase regional and local water
self-sufficiency and that meet at least two of the following objectives:
(A) Promote groundwater recharge and water reuse.
(B) Reduce energy consumption.
(C) Use soils,plants,and natural processes to treat runoff.
(D) Create or restore native habitat.
(E) Increase regional and local resiliency and adaptability to climate
change.
(2) The program under this subdivision shall be implemented by state
conservancies, the Wildlife Conservation Board, the state board, or other
entities whose jurisdiction includes urban watersheds,as designated by the
secretary. Projects funded under the program shall be a part of a plan
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Ch. 188 —16—
developed jointly by the conservancies, the Wildlife Conservation Board,
the state board,or other designated entities in consultation with the secretary.
(c) At least 25 percent of the funds available pursuant to this section shall
be allocated for projects that benefit disadvantaged communities.
(d) Up to 10 percent of the funds available pursuant to this section may
be allocated for project planning.
79736. Of the funds authorized by Section 79730, four hundred
seventy-five million dollars($475,000,000)shall be available to the Natural
Resources Agency to support projects that fulfill the obligations of the State
of California in complying with the terms of any of the following:
(a) Subsection (d) of Section 3406 of the Central Valley Project
Improvement Act(Title 34 of Public Law 102-575).
(b) Interstate compacts set forth in Section 66801 of the Government
Code pursuant to Title 7.42 (commencing with Section 66905) of the
Government Code.
(c) Intrastate or multiparty water quantification settlement agreement
provisions,including ecosystem restoration projects,as set forth in Chapters
611, 612, 613,and 614 of the Statutes of 2003.
(d) The settlement agreement referenced in Section 2080.2 of the Fish
and Game Code.
(e) Any intrastate or multiparty settlement agreement related to water
acted upon or before December 31,2013.Priority shall be given to projects
that meet one or more of the following criteria:
(1) The project is of statewide significance.
(2) The project restores natural aquatic or riparian functions,or wetlands
habitat for birds and aquatic species.
(3) The project protects or promotes the restoration of endangered or
threatened species.
(4) The project enhances the reliability of water supplies on a regional
or interregional basis.
(5) The project provides significant regional or statewide economic
benefits.
79737. (a) Of the funds authorized by Section 79730, two hundred
eighty-five million dollars ($285,000,000) shall be available to the
Department of Fish and Wildlife for watershed restoration projects statewide
in accordance with this chapter.
(b) For the purposes of this section, watershed restoration includes
activities to fund coastal wetland habitat, improve forest health, restore
mountain meadows, modernize stream crossings, culverts, and bridges,
reconnect historical flood plains, install or improve fish screens, provide
fish passages, restore river channels, restore or enhance riparian, aquatic,
and terrestrial habitat, improve ecological functions, acquire from willing
sellers conservation easements for riparian buffer strips, improve local
watershed management,and remove sediment or trash.
(c) For any funds available pursuant to this section that are used to provide
grants under the Fisheries Restoration Grant Program, a priority shall be
given to coastal waters.
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(d) In allocating funds for projects pursuant to this section,the Department
of Fish and Wildlife shall only make funds available for water quality,river,
and watershed protection and restoration projects of statewide importance
outside of the Delta.
(e) Funds provided by this section shall not be expended to pay the costs
of the design,construction,operation,mitigation,or maintenance of Delta
conveyance facilities.
(f) Funds provided by this section shall only be used for projects that
will provide fisheries or ecosystem benefits or improvements that are greater
than required applicable environmental mitigation measures or compliance
obligations,except for any water transfers for the benefit of subsection(d)
of Section 3406 of the Central Valley Project Improvement Act (Title 34
of Public Law 102-575).
79738. (a) Of the funds authorized by Section 79730, eighty-seven
million five hundred thousand dollars ($87,500,000) shall be available to
the Department of Fish and Wildlife for water quality,ecosystem restoration,
and fish protection facilities that benefit the Delta,including,but not limited
to,the following:
(1) Projects to improve water quality or that contribute to the
improvement of water quality in the Delta, including projects in Delta
counties that provide multiple public benefits and improve drinking and
agricultural water quality or water supplies.
(2) Habitat restoration, conservation, and enhancement projects to
improve the condition of special status, at risk, endangered, or threatened
species in the Delta and the Delta counties,including projects to eradicate
invasive species, and projects that support the beneficial reuse of dredged
material for habitat restoration and levee improvements.
(3) Scientific studies and assessments that support the Delta Science
Program,as described in Section 85280,or projects under this section.
(b) In implementing this section, the department shall coordinate and
consult with the Delta city or Delta county in which a grant is proposed to
be expended or an interest in real property is proposed to be acquired.
(c) Acquisitions pursuant to this section shall be from willing sellers
only.
(d) In implementing this section state agencies shall prioritize wildlife
conservation objectives through projects on public lands or voluntary projects
on private lands,to the extent feasible.
(e) Funds available pursuant to this section shall not be used to acquire
land via eminent domain.
(f) Funds available pursuant to this section shall not be expended to pay
the costs of the design,construction,operation,mitigation,or maintenance
of Delta conveyance facilities.
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CHAPTER 7. REGIONAL WATER SECURITY,CLIMATE,AND DROUGHT
PREPAREDNESS
79740. The sum of eight hundred ten million dollars ($810,000,000)
shall be available,upon appropriation by the Legislature from the fund,for
expenditures on, and competitive grants and loans to, projects that are
included in and implemented in an adopted integrated regional water
management plan consistent with Part 2.2(commencing with Section 10530)
of Division 6 and respond to climate change and contribute to regional water
security as provided in this chapter.
79741. In order to improve regional water self-reliance security and
adapt to the effects on water supply arising out of climate change, the
purposes of this chapter are to:
(a) Help water infrastructure systems adapt to climate change,including,
but not limited to,sea level rise.
(b) Provide incentives for water agencies throughout each watershed to
collaborate in managing the region's water resources and setting regional
priorities for water infrastructure.
(c) Improve regional water self-reliance consistent with Section 85021.
79742. (a) In selecting among proposed projects in a watershed, the
scope of the adopted integrated regional water management plan may be
considered by the administering state agency,with priority going to projects
in plans that cover a greater portion of the watershed. If a plan covers
substantially all of the watershed,the plan's project priorities shall be given
deference if the project and plan otherwise meet the requirements of this
division and the Integrated Regional Water Management Planning Act(Part
2.2(commencing with Section 10530)of Division 6).
(b) A local agency that does not prepare, adopt, and submit its
groundwater plan in accordance with groundwater planning requirements
established under Division 6(commencing with Section 10000)is ineligible
to apply for funds made available pursuant to this chapter until the plan is
prepared and submitted in accordance with the requirements of that part.
The groundwater management plan requirement shall not apply to a water
replenishment district formed pursuant to Division 18 (commencing with
Section 60000)or to a local agency that serves or has authority to manage
an adjudicated groundwater basin.
(c) For the purposes of awarding funding under this chapter,a cost share
from nonstate sources of not less than 50 percent of the total costs of the
project shall be required. The cost-sharing requirement may be waived or
reduced for projects that directly benefit a disadvantaged community or an
economically distressed area.
(d) Not less than 10 percent of the funds authorized by this chapter shall
be allocated to projects that directly benefit disadvantaged communities.
(e) For the purposes of awarding funding under this chapter,the applicant
shall demonstrate that the integrated regional water management plan the
applicant's project implements contributes to addressing the risks in the
region to water supply and water infrastructure arising from climate change.
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(f) Projects that achieve multiple benefits shall receive special
consideration.
79743. Subject to the determination of regional priorities in the regional
water management group,eligible projects may include,but are not limited
to,projects that promote any of the following:
(a) Water reuse and recycling for nonpotable reuse and direct and indirect
potable reuse.
(b) Water-use efficiency and water conservation.
(c) Local and regional surface and underground water storage,including
groundwater aquifer cleanup or recharge projects.
(d) Regional water conveyance facilities that improve integration of
separate water systems.
(e) Watershed protection,restoration,and management projects,including
projects that reduce the risk of wildfire or improve water supply reliability.
(f) Stormwater resource management, including,but not limited to, the
following:
(1) Projects to reduce,manage,treat,or capture rainwater or stormwater.
(2) Projects that provide multiple benefits such as water quality, water
supply,flood control,or open space.
(3) Decision support tools that evaluate the benefits and costs of
multibenefit stormwater projects.
(4) Projects to implement a stormwater resource plan developed in
accordance with Part 2.3 (commencing with Section 10560)of Division 6.
(g) Conjunctive use of surface and groundwater storage facilities.
(h) Water desalination projects.
(i) Decision support tools to model regional water management strategies
to account for climate change and other changes in regional demand and
supply projections.
(j) Improvement of water quality, including drinking water treatment
and distribution, groundwater and aquifer remediation, matching water
quality to water use,wastewater treatment,water pollution prevention,and
management of urban and agricultural runoff.
79744. (a) Of the funds authorized by Section 79740,five hundred ten
million dollars($510,000,000) shall be allocated to the hydrologic regions
as identified in the California Water Plan in accordance with this section.
For the South Coast hydrologic region,the department shall establish three
funding areas that reflect the watersheds of San Diego County and southern
Orange County (designated as the San Diego subregion), the Santa Ana
River watershed (designated as the Santa Ana subregion), and the Los
Angeles and Ventura County watersheds (designated as the Los Angeles
subregion), and shall allocate funds to those areas in accordance with this
subdivision. The North and South Lahontan hydrologic regions shall be
treated as one area for the purpose of allocating funds.For purposes of this
subdivision, the Sacramento River hydrologic region does not include the
Delta. For purposes of this subdivision, the Mountain Counties Overlay is
not eligible for funds from the Sacramento River hydrologic region or the
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Ch. 188 —20—
San Joaquin River hydrologic region. Multiple integrated regional water
management plans may be recognized in each of the areas allocated funding.
(b) Funds made available by this chapter shall be allocated as follows:
(1) Twenty-six million five hundred thousand dollars($26,500,000)for
the North Coast hydrologic region.
(2) Sixty-five million dollars ($65,000,000) for the San Francisco Bay
hydrologic region.
(3) Forty-three million dollars ($43,000,000) for the Central Coast
hydrologic region.
(4) Ninety-eight million dollars ($98,000,000) for the Los Angeles
subregion.
(5) Sixty-three million dollars($63,000,000)for the Santa Ana subregion.
(6) Fifty-two million five hundred thousand dollars ($52,500,000) for
the San Diego subregion.
(7) Thirty-seven million dollars($37,000,000)for the Sacramento River
hydrologic region.
(8) Thirty-one million dollars ($31,000,000) for the San Joaquin River
hydrologic region.
(9) Thirty-four million dollars ($34,000,000) for the Tulare/Kern
hydrologic region.
(10) Twenty-four million five hundred thousand dollars ($24,500,000)
for the North/South Lahontan hydrologic region.
(11) Twenty-two million five hundred thousand dollars ($22,500,000)
for the Colorado River Basin hydrologic region.
(12) Thirteen million dollars ($13,000,000) for the Mountain Counties
Overlay.
79745. The Department of Water Resources shall expend,either directly
or for noncompetitive grants,no less than 10 percent of the funds from the
regional allocations specified in Section 79744 for the purposes of ensuring
involvement of disadvantaged communities,economically distressed areas,
or underrepresented communities within regions.
79746. (a) Of the funds authorized by Section 79740, the sum of one
hundred million dollars($100,000,000)may be used for direct expenditures,
and for grants and loans,for the following water conservation and water-use
efficiency plans,projects,and programs:
(1) Urban water conservation plans, projects, and programs, including
regional projects and programs, implemented to achieve urban water use
targets developed pursuant to Section 10608.20. Priority for funding shall
be given to programs that do any of the following:
(A) Assist water suppliers and regions to implement conservation
programs and measures that are not locally cost effective.
(B) Support water supplier and regional efforts to implement programs
targeted to enhance water-use efficiency for commercial, industrial, and
institutional water users.
(C) Assist water suppliers and regions with programs and measures
targeted toward realizing the conservation benefits of implementation of
the provisions of the state landscape model ordinance.
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(2) Agricultural water management plans or agricultural water use
efficiency projects and programs developed pursuant to Part 2.8
(commencing with Section 10800)of Division 6.
(b) Section 1011 applies to all conservation measures that an agricultural
water supplier or an urban water supplier implements with funding under
this chapter.This subdivision does not limit the application of Section 1011
to any other measures or projects implemented by a water supplier.
Notwithstanding Section 79748,the projects funded pursuant to this section
are not required to be in an adopted integrated regional water management
plan or to comply with that program.
79747. (a) Of the funds authorized by Section 79740, two hundred
million dollars($200,000,000)shall be available for grants for multibenefit
stormwater management projects.
(b) Eligible projects may include, but shall not be limited to, green
infrastructure, rainwater and stormwater capture projects, and stormwater
treatment facilities.
(c) Development of plans for stormwater projects shall address the entire
watershed and incorporate the perspectives of communities adjacent to the
affected waterways,especially disadvantaged communities.
79748. In order to receive funding authorized by this chapter to address
groundwater quality or supply in an aquifer,the applicant shall demonstrate
that a public agency has authority to manage the water resources in that
aquifer. A groundwater management plan adopted and submitted in
accordance with groundwater management planning requirements established
under Division 6 (commencing with Section 10000) shall be deemed
sufficient to satisfy the requirements of this section.
CHAPTER 8. STATEWIDE WATER SYSTEM OPERATIONAL IMPROVEMENT
AND DROUGHT PREPAREDNESS
79750. (a) Notwithstanding Section 162, the commission may make
the determinations, findings, and recommendations required of it by this
chapter independent of the views of the director. All final actions by the
commission in implementing this chapter shall be taken by a majority of
the members of the commission at a public meeting noticed and held
pursuant to the Bagley-Keene Open Meeting Act (Article 9 (commencing
with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the
Government Code).
(b) Notwithstanding Section 13340 of the Government Code, the sum
of two billion seven hundred million dollars ($2,700,000,000) is hereby
continuously appropriated from the fund,without regard to fiscal years,to
the commission for public benefits associated with water storage projects
that improve the operation of the state water system,are cost effective,and
provide a net improvement in ecosystem and water quality conditions, in
accordance with this chapter. Funds authorized for, or made available to,
the commission pursuant to this chapter shall be available and expended
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Ch. 188 —22—
only for the purposes provided in this chapter, and shall not be subject to
appropriation or transfer by the Legislature or the Governor for any other
purpose.
(c) Projects shall be selected by the commission through a competitive
public process that ranks potential projects based on the expected return for
public investment as measured by the magnitude of the public benefits
provided,pursuant to criteria established under this chapter.
(d) Any project constructed with funds provided by this chapter shall be
subject to Section 11590.
79751. Projects for which the public benefits are eligible for funding
under this chapter consist of only the following:
(a) Surface storage projects identified in the CALFED Bay-Delta Program
Record of Decision, dated August 28, 2000, except for projects prohibited
by Chapter 1.4 (commencing with Section 5093.50) of Division 5 of the
Public Resources Code.
(b) Groundwater storage projects and groundwater contamination
prevention or remediation projects that provide water storage benefits.
(c) Conjunctive use and reservoir reopevation projects.
(d) Local and regional surface storage projects that improve the operation
of water systems in the state and provide public benefits.
79752. A project shall not be funded pursuant to this chapter unless it
provides measurable improvements to the Delta ecosystem or to the
tributaries to the Delta.
79753. (a) Funds allocated pursuant to this chapter may be expended
solely for the following public benefits associated with water storage
projects:
(1) Ecosystem improvements, including changing the timing of water
diversions,improvement in flow conditions,temperature,or other benefits
that contribute to restoration of aquatic ecosystems and native fish and
wildlife,including those ecosystems and fish and wildlife in the Delta.
(2) Water quality improvements in the Delta, or in other river systems,
that provide significant public trust resources, or that clean up and restore
groundwater resources.
(3) Flood control benefits,including,but not limited to,increases in flood
reservation space in existing reservoirs by exchange for existing or increased
water storage capacity in response to the effects of changing hydrology and
decreasing snow pack on California's water and flood management system.
(4) Emergency response,including,but not limited to,securing emergency
water supplies and flows for dilution and salinity repulsion following a
natural disaster or act of terrorism.
(5) Recreational purposes,including,but not limited to,those recreational
pursuits generally associated with the outdoors.
(b) Funds shall not be expended pursuant to this chapter for the costs of
environmental mitigation measures or compliance obligations except for
those associated with providing the public benefits as described in this
section.
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79754. In consultation with the Department of Fish and Wildlife, the
state board,and the Department of Water Resources,the commission shall
develop and adopt, by regulation, methods for quantification and
management of public benefits described in Section 79753 by December
15, 2016. The regulations shall include the priorities and relative
environmental value of ecosystem benefits as provided by the Department
of Fish and Wildlife and the priorities and relative environmental value of
water quality benefits as provided by the state board.
79755. (a) Except as provided in subdivision (c), no funds allocated
pursuant to this chapter may be allocated for a project before December 15,
2016, and until the commission approves the project based on the
commission's determination that all of the following have occurred:
(1) The commission has adopted the regulations specified in Section
79754 and specifically quantified and made public the cost of the public
benefits associated with the project.
(2) The project applicant has entered into a contract with each party that
will derive benefits,other than public benefits,as defined in Section 79753,
from the project that ensures the party will pay its share of the total costs
of the project.The benefits available to a party shall be consistent with that
party's share of total project costs.
(3) The project applicant has entered into a contract with each public
agency identified in Section 79754 that administers the public benefits,after
that agency makes a finding that the public benefits of the project for which
that agency is responsible meet all the requirements of this chapter,to ensure
that the public contribution of funds pursuant to this chapter achieves the
public benefits identified for the project.
(4) The commission has held a public hearing for the purposes of
providing an opportunity for the public to review and comment on the
information required to be prepared pursuant to this subdivision.
(5) All of the following additional conditions are met:
(A) Feasibility studies have been completed.
(B) The commission has found and determined that the project is feasible,
is consistent with all applicable laws and regulations,and will advance the
long-term objectives of restoring ecological health and improving water
management for beneficial uses of the Delta.
(C) All environmental documentation associated with the project has
been completed, and all other federal, state, and local approvals,
certifications,and agreements required to be completed have been obtained.
(b) The commission shall submit to the Legislature its findings for each
of the criteria identified in subdivision(a)for a project funded pursuant to
this chapter.
(c) Notwithstanding subdivision(a),funds may be made available under
this chapter for the completion of environmental documentation and
permitting of a project.
79756. (a) The public benefit cost share of a project funded pursuant
to this chapter, other than a project described in subdivision(c)of Section
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Ch. 188 —24—
79751, shall not exceed 50 percent of the total costs of any project funded
under this chapter.
(b) No project may be funded unless it provides ecosystem improvements
as described in paragraph (1) of subdivision (a) of Section 79753 that are
at least 50 percent of total public benefits of the project funded under this
chapter.
79757. (a) A project is not eligible for funding under this chapter unless,
by January 1,2022,all of the following conditions are met:
(1) All feasibility studies are complete and draft environmental
documentation is available for public review.
(2) The commission makes a finding that the project is feasible,and will
advance the long-term objectives of restoring ecological health and
improving water management for beneficial uses of the Delta.
(3) The director receives commitments for not less than 75 percent of
the nonpublic benefit cost share of the project.
(b) If compliance with subdivision(a)is delayed by litigation or failure
to promulgate regulations,the date in subdivision(a) shall be extended by
the commission for a time period that is equal to the time period of the delay,
and funding under this chapter that has been dedicated to the project shall
be encumbered until the time at which the litigation is completed or the
regulations have been promulgated.
79758. Surface storage projects funded pursuant to this chapter and
described in subdivision (a) of Section 79751 may be made a unit of the
Central Valley Project as provided in Section 11290 and may be financed,
acquired, constructed, operated, and maintained pursuant to Part 3
(commencing with Section 11100)of Division 6.
79759. (a) The funds allocated for the design, acquisition, and
construction of surface storage projects identified in the CALFED Bay-Delta
Record of Decision, dated August 28, 2000, pursuant to this chapter may
be provided for those purposes to local joint powers authorities formed by
irrigation districts and other local water districts and local governments
within the applicable hydrologic region to design, acquire, and construct
those projects.
(b) The joint powers authorities described in subdivision(a)may include
in their membership governmental partners that are not located within their
respective hydrologic regions in financing the surface storage projects,
including, as appropriate, cost share participation or equity participation.
Notwithstanding Section 6525 of the Government Code, the joint powers
agencies described in subdivision(a)shall not include in their membership
any for-profit corporation or any mutual water company whose shareholders
and members include a for-profit corporation or any other private entity.
The department shall be an ex officio member of each joint powers authority
subject to this section,but the department shall not control the governance,
management,or operation of the surface water storage projects.
(c) A joint powers authority subject to this section shall own, govern,
manage, and operate a surface water storage project, subject to the
requirement that the ownership, governance, management, and operation
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of the surface water storage project shall advance the purposes set forth in
this chapter.
79760. (a) In approving the Water Quality, Supply, and Infrastructure
Improvement Act of 2014, the people were informed and hereby declare
that the provisions of this chapter are necessary, integral, and essential to
meeting the single object or work of the Water Quality, Supply, and
Infrastructure Improvement Act of 2014. As such, any amendment of the
provisions of this chapter by the Legislature without voter approval would
frustrate the scheme and design that induced voter approval of this act.The
people therefore find and declare that any amendment of the provisions of
this chapter by the Legislature shall require an affirmative vote of two-thirds
of the membership in each house of the Legislature and voter approval.
(b) This section shall not govern or be used as authority for determining
whether the amendment of any other provision of this act not contained in
this chapter would constitute a substantial change in the scheme and design
of this act requiring voter approval.
CHAPTER 9. WATER RECYCLING
79765. The sum of seven hundred twenty-five million dollars
($725,000,000) shall be available, upon appropriation by the Legislature
from the fund,for grants or loans for water recycling and advanced treatment
technology projects,including all of the following:
(a) Water recycling projects, including, but not limited to, treatment,
storage, conveyance, and distribution facilities for potable and nonpotable
recycling projects.
(b) Contaminant and salt removal projects,including,but not limited to,
groundwater and seawater desalination and associated treatment, storage,
conveyance,and distribution facilities.
(c) Dedicated distribution infrastructure to serve residential,commercial,
agricultural,and industrial end-user retrofit projects to allow use of recycled
water.
(d) Pilot projects for new potable reuse and other salt and contaminant
removal technology.
(e) Multibenefit recycled water projects that improve water quality.
(f) Technical assistance and grant writing assistance for disadvantaged
communities.
79766. At least a 50-percent local cost share shall be required for projects
funded pursuant to this chapter.That cost share may be suspended or reduced
for disadvantaged communities and economically distressed areas.
79767. Projects funded pursuant to this chapter shall be selected on a
competitive basis,considering all of the following criteria:
(a) Water supply reliability improvement.
(b) Water quality and ecosystem benefits related to decreased reliance
on diversions from the Delta or instream flows.
(c) Public health benefits from improved drinking water quality or supply.
94
Ch. 188 —26—
(d) Cost-effectiveness.
(e) Energy efficiency and greenhouse gas emission impacts.
(f) Reasonable geographic allocation to eligible projects throughout the
state,including both northern and southern California and coastal and inland
regions.
79768. For purposes of this chapter, competitive programs shall be
implemented consistent with water recycling programs administered pursuant
to Sections 79140 and 79141 or consistent with desalination programs
administered pursuant to Sections 79545 and 79547.2.
CHAPTER 10. GROUNDWATER SUSTAINABILITY
79770. Prevention and cleanup of groundwater contamination are critical
components of successful groundwater management. Groundwater quality
becomes especially important as water providers do the following:
(a) Evaluate investments in groundwater recharge with surface water,
stormwater,recycled water,and other conjunctive use projects that augment
local groundwater supplies to improve regional water self-reliance.
(b) Adapt to changing hydrologic conditions brought on by climate
change.
(c) Consider developing groundwater basins to provide much needed
local storage options to accommodate hydrologic and regulatory variability
in the state's water delivery system.
(d) Evaluate investments in groundwater recovery projects.
79771. (a) The sum of nine hundred million dollars ($900,000,000)
shall be available,upon appropriation by the Legislature from the fund,for
expenditures on, and competitive grants, and loans for,projects to prevent
or clean up the contamination of groundwater that serves or has served as
a source of drinking water.Funds appropriated pursuant to this section shall
be available to the state board for projects necessary to protect public health
by preventing or reducing the contamination of groundwater that serves or
has served as a major source of drinking water for a community.
(b) Projects shall be prioritized based upon the following criteria:
(1) The threat posed by groundwater contamination to the affected
community's overall drinking water supplies,including an urgent need for
treatment of alternative supplies or increased water imports if groundwater
is not available due to contamination.
(2) The potential for groundwater contamination to spread and impair
drinking water supply and water storage for nearby population areas.
(3) The potential of the project, if fully implemented, to enhance local
water supply reliability.
(4) The potential of the project to maximize opportunities to recharge
vulnerable,high-use groundwater basins and optimize groundwater supplies.
(5) The project addresses contamination at a site for which the courts or
the appropriate regulatory authority has not yet identified responsible parties,
or where the identified responsible parties are unwilling or unable to pay
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for the total cost of cleanup,including water supply reliability improvement
for critical urban water supplies in designated superfund areas with
groundwater contamination listed on the National Priorities List established
pursuant to Section 105(a)(8)(B) of the federal Comprehensive
Environmental Response, Compensation, and Liability Act of 1980 (42
U.S.C. Sec. 9605(a)(8)(13)).
(c) Funding authorized by this chapter shall not be used to pay any share
of the costs of remediation recovered from parties responsible for the
contamination of a groundwater storage aquifer, but may be used to pay
costs that cannot be recovered from responsible parties.Parties that receive
funding for remediating groundwater storage aquifers shall exercise
reasonable efforts to recover the costs of groundwater cleanup from the
parties responsible for the contamination.Funds recovered from responsible
parties may only be used to fund treatment and remediation activities.
79772. Of the funds authorized by Section 79771,eighty million dollars
($80,000,000) shall be available for grants for treatment and remediation
activities that prevent or reduce the contamination of groundwater that serves
as a source of drinking water.
79773. The contaminants that may be addressed with funding pursuant
to this chapter may include,but shall not be limited to,nitrates,perchlorate,
MTBE(methyl tertiary butyl ether),arsenic,selenium,hexavalent chromium,
mercury, PCE (perchloroethylene), TCE (trichloroethylene), DCE
(dichloroethene), DCA (dichloroethane), 1,2,3-TCP (trichloropropane),
carbon tetrachloride, 1,4-dioxane, 1,4-dioxacyclohexane,
nitrosodimethylamine,bromide,iron,manganese,and uranium.
79774. (a) A project that receives funding pursuant to this chapter shall
be selected by a competitive grant or loan process with added consideration
for those projects that leverage private,federal,or local funding.
(b) For the purposes of awarding funding under this chapter,a local cost
share of not less than 50 percent of the total costs of the project shall be
required. The cost-sharing requirement may be waived or reduced for
projects that directly benefit a disadvantaged community or an economically
distressed area.
(c) An agency administering grants or loans for the purposes of this
chapter shall assess the capacity of a community to pay for the operation
and maintenance of the facility to be funded.
(d) At least 10 percent of the funds available pursuant to this chapter
shall be allocated for projects serving severely disadvantaged communities.
(e) Funding authorized by this chapter shall include funding for technical
assistance to disadvantaged communities. The agency administering this
funding shall operate a multidisciplinary technical assistance program for
small and disadvantaged communities.
79775. Of the funds authorized by Section 79771,one hundred million
dollars ($100,000,000) shall be made available for competitive grants for
projects that develop and implement groundwater plans and projects in
accordance with groundwater planning requirements established under
Division 6 (commencing with Section 10000).
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Ch. 188 —28—
CHAPTER 11. FLOOD MANAGEMENT
79780. The sum of three hundred ninety-five million dollars
($395,000,000) shall be available, upon appropriation by the Legislature
from the fund,to the Department of Water Resources and the Central Valley
Flood Protection Board for the purpose of statewide flood management
projects and activities.Funds shall be allocated to multibenefit projects that
achieve public safety and include fish and wildlife habitat enhancement.
The Department of Water Resources shall make its best effort to coordinate
this funding with proceeds from Propositions 84 and 1E.
79781. Of the funds authorized by Section 79780, two hundred
ninety-five million dollars ($295,000,000) shall be available to reduce the
risk of levee failure and flood in the Delta for any of the following:
(a) Local assistance under the Delta levee maintenance subventions
program pursuant to Part 9 (commencing with Section 12980)of Division
6,as that part may be amended.
(b) Special flood protection projects pursuant to Chapter 2(commencing
with Section 123 10) of Part 4.8 of Division 6, as that chapter may be
amended.
(c) Levee improvement projects that increase the resiliency of levees
within the Delta to withstand earthquake,flooding,or sea level rise.
(d) Emergency response and repair projects.
CHAPTER 12. FISCAL PROVISIONS
79785. (a) Bonds in the total amount of seven billion one hundred twenty
million dollars ($7,120,000,000), and any additional bonds authorized,
issued,and appropriated in accordance with this division pursuant to other
provisions of law, or so much thereof as is necessary, not including the
amount of any refunding bonds issued in accordance with Section 79797
may be issued and sold to provide a fund to be used for carrying out the
purposes expressed in this division and to reimburse the General Obligation
Bond Expense Revolving Fund pursuant to Section 16724.5 of the
Government Code. The bonds, when sold, shall be and constitute a valid
and binding obligation of the State of California,and the full faith and credit
of the State of California is hereby pledged for the punctual payment of
both principal of, and interest on, the bonds as the principal and interest
become due and payable.
(b) The Treasurer shall sell the bonds authorized by the committee
pursuant to this section. The bonds shall be sold upon the terms and
conditions specified in a resolution to be adopted by the committee pursuant
to Section 16731 of the Government Code.
79786. The bonds authorized by this division shall be prepared,executed,
issued,sold,paid,and redeemed as provided in the State General Obligation
Bond Law (Chapter 4 (commencing with Section 16720) of Part 3 of
Division 4 of Title 2 of the Government Code),and all of the provisions of
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that law,as that law may be amended,apply to the bonds and to this division,
except subdivisions(a) and(b)of Section 16727 of the Government Code
to the extent that those subdivisions conflict with any other provision of
this division.
79787. (a) Solely for the purpose of authorizing the issuance and sale
pursuant to the State General Obligation Bond Law(Chapter 4(commencing
with Section 16720) of Part 3 of Division 4 of Title 2 of the Government
Code)of the bonds authorized by this division,the Water Quality, Supply,
and Infrastructure Improvement Finance Committee is hereby created. For
purposes of this division, the Water Quality, Supply, and Infrastructure
Improvement Finance Committee is the "committee" as that term is used
in the State General Obligation Bond Law.
(b) The committee consists of the Director of Finance, the Treasurer,
and the Controller.Notwithstanding any other provision of law,any member
may designate a representative to act as that member in his or her place for
all purposes,as though the member were personally present.
(c) The Treasurer shall serve as chairperson of the committee.
(d) A majority of the committee may act for the committee.
79788. The committee shall determine whether or not it is necessary or
desirable to issue bonds authorized by 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.
79789. For purposes of the State General Obligation Bond Law,"board,"
as defined in Section 16722 of the Government Code,means the secretary.
79790. 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.
79791. Notwithstanding Section 13340 of the Government Code,there
is hereby appropriated from the General Fund in the State Treasury,for the
purposes of this division,an amount that will equal the total of the following:
(a) The sum annually necessary to pay the principal of,and interest on,
bonds issued and sold pursuant to this division,as the principal and interest
become due and payable.
(b) The sum that is necessary to carry out the provisions of Section 79794,
appropriated without regard to fiscal years.
79792. The board may request the Pooled Money Investment Board to
make a loan from the Pooled Money Investment Account in accordance
with Section 16312 of the Government Code for the purpose of carrying
out this division less any amount withdrawn pursuant to Section 79794.The
amount of the request shall not exceed the amount of the unsold bonds that
the committee has, by resolution, authorized to be sold for the purpose of
carrying out this division.The board shall execute those documents required
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Ch. 188 —30—
by the Pooled Money Investment Board to obtain and repay the loan.Any
amounts loaned shall be deposited in the fund to be allocated in accordance
with this division.
79793. Notwithstanding any other provision of this division, or of the
State General Obligation Bond Law,if the Treasurer sells bonds that include
a bond counsel opinion to the effect that the interest on the bonds is excluded
from gross income for federal tax purposes under designated conditions or
is otherwise entitled to any federal tax advantage,the Treasurer may maintain
separate accounts for the bond proceeds invested and for the investment
earnings on those proceeds,and may use or direct the use of those proceeds
or earnings to pay any rebate, penalty, or other payment required under
federal law or take any other action with respect to the investment and use
of those bond proceeds,as may be required or desirable under federal law
in order to maintain the tax-exempt status of those bonds and to obtain any
other advantage under federal law on behalf of the funds of this state.
79794. For the purposes of carrying out this division, the Director of
Finance may authorize the withdrawal from the General Fund of an amount
or amounts not to exceed the amount of the unsold bonds that have been
authorized by the committee to be sold for the purpose of carrying out this
division less any amount borrowed pursuant to Section 79792.Any amounts
withdrawn shall be deposited in the fund.Any moneys made available under
this section shall be returned to the General Fund, with interest at the rate
earned by the moneys in the Pooled Money Investment Account, from
proceeds received from the sale of bonds for the purpose of carrying out
this division.
79795. All moneys deposited in the fund that are derived from premium
and accrued interest on bonds sold pursuant to this division shall be reserved
in the fund and shall be available for transfer to the General Fund as a credit
to expenditures for bond interest,except that amounts derived from premium
may be reserved and used to pay the cost of bond issuance prior to any
transfer to the General Fund.
79796. Pursuant to Chapter 4(commencing with Section 16720)of Part
3 of Division 4 of Title 2 of the Government Code,the cost of bond issuance
shall be paid out of the bond proceeds, including premium, if any. To the
extent the cost of bond issuance is not paid from premiums received from
the sale of bonds,these costs shall be shared proportionately by each program
funded through this division by the applicable bond sale.
79797. The bonds issued and sold pursuant to this division may be
refunded in accordance with Article 6 (commencing with Section 16780)
of Chapter 4 of Part 3 of Division 4 of Title 2 of the Government Code,
which is a part of the State General Obligation Bond Law.Approval by the
voters of the state for the issuance of the bonds under this division shall
include approval of the issuance of any bonds issued to refund any bonds
originally issued under this division or any previously issued refunding
bonds.
79798. 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
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California Constitution,and the disbursement of these proceeds is not subject
to the limitations imposed by that article.
SEC.9. Section 2 of Chapter 3 of the Seventh Extraordinary Session of
the Statutes of 2009,as amended by Section 1 of Chapter 74 of the Statutes
of 2012,is repealed.
SEC. 10. (a) Notwithstanding the requirements of Sections 9040,9043,
9044,9061,and 9082 of the Elections Code,or any other law,the Secretary
of State shall submit Sections 1 to 6, inclusive,and Section 8 of this act to
the voters at the November 4,2014,statewide general election.
(b) The Secretary of State shall include in the ballot pamphlets mailed
pursuant to Section 9094 of the Elections Code the information specified
in Section 9084 of the Elections Code regarding the bond act contained in
Sections 1 to 6, inclusive, and Section 8 of this act. If that inclusion is not
possible,the Secretary of State shall publish a supplemental ballot pamphlet
regarding this act to be mailed with the ballot pamphlet.If the supplemental
ballot pamphlet cannot be mailed with the ballot pamphlet,the supplemental
ballot pamphlet shall be mailed separately.
(c) Notwithstanding Section 9054 of the Elections Code or any other
law, the translations of the ballot title and the condensed statement of the
ballot title required pursuant to Section 9054 may be made available for
public examination at a later date than the start of the public examination
period for the ballot pamphlet, provided that the translations of the ballot
title and the condensed statement of the ballot title must remain available
for public examination for eight days.
(d) Notwithstanding Section 13282 of the Elections Code or any other
law, the public shall be permitted to examine the condensed statement of
the ballot title for not more than eight days.Any voter may seek a writ of
mandate for the purpose of requiring the condensed statement of the ballot
title,or portion thereof,to be amended or deleted only within that eight-day
period.
SEC. 11. Notwithstanding Sections 13115 and 13117 of the Elections
Code, Sections 1 to 6,inclusive,and Section 8 of this act shall be placed as
the first ballot measure on the November 4, 2014, general election ballot
and shall be designated as Proposition 1.
SEC. 12. Sections 1 to 6,inclusive,and Section 8 of this act shall take
effect upon approval by the voters of the Water Quality, Supply, and
Infrastructure Improvement Act of 2014, as set forth in Section 8 of this
act, including changes to the Disaster Preparedness and Flood Prevention
Bond Act of 2006, as set forth in Section 1 of this act, the Safe Drinking
Water, Water Quality and Supply, Flood Control, River and Coastal
Protection Bond Act of 2006,as set forth in Section 2 of this act,the Water
Conservation and Water Quality Bond Law of 1986,as set forth in Section
3 of this act, the Safe, Clean, Reliable Water Supply Act, as set forth in
Section 4 of this act,the Costa-Machado Water Act of 2000,as set forth in
Section 5 of this act,and the Water Security,Clean Drinking Water,Coastal
and Beach Protection Act of 2002,as set forth in Section 6 of this act.
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Ch. 188 —32—
SEC. 13. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the meaning of
Article IV of the Constitution and shall go into immediate effect.The facts
constituting the necessity are:
In order to fund a water quality, supply,and infrastructure improvement
program at the earliest possible date,it is necessary that this act take effect
immediately.
PROPOSITION 1 SUPPORT
Officials
Gov. Jerry Brown (D)
US Sen. Dianne Feinstein(D)
US Sen. Barbara Boxer(D)
Known Orianizations
• Association of California Water • Ducks Unlimited
Agencies • American Rivers
• California Association of Sanitation • Silicon Valley Leadership Group
Agencies • Friant Water Authority
• League of California Cities • San Diego Water Authority
• California State Association of • Metropolitan Water District of Southern
Counties California
• California Chamber of Commerce • Natural Resources Defense Council
• California Farm Bureau Federation • Northern California Water Association
• The Nature Conservancy • State Building and Construction Trades
• Audubon California Council of California
• Delta Counties Coalition • Association of California Water Agencies
• Los Angeles Area Chamber of • Fresno Irrigation District
Commerce • Western Growers
Arguments
Gov. Jerry Brown (D), Paul Wenger, President of California Farm Bureau Federation, and Mike
Sweeny, California Director of The Nature Conservancy, wrote the argument in,favor,found in
the state's official voter information guide:
YES ON PROPOSITION 1 ENSURES A RELIABLE WATER SUPPLY FOR FARMS AND
BUSINESSES DURING SEVERE DROUGHT PROTECTING BOTH THE ECONOMY
AND THE ENVIRONMENT
California is in a serve, multi-year drought and has an aging water infrastructure. That is
why Republicans and Democrats and leaders from all over California came together in
nearly unanimous fashion to place this fiscally responsible measure on the ballot.
YES ON 1 IS FISCALLY RESPONSIBLE
Proposition 1 will not raise taxes. It is a no-frills investment in critical projects that
doesn't break the bank- it even reallocates money from unused bonds to make better use
of the money.
YES ON 1 GROWS CALIFORNIA'S ECONOMY
California's economy depends on a reliable water supply. Proposition 1 secures our water
future, keeps our family farms and businesses productive, and puts Californians to work
building the new facilities we need to store, deliver and treat water.
YES ON 1 SAFEGUARDS OUR EXISTING WATER SUPPLIES
Proposition 1 will clean up our contaminated groundwater which serves as a critical
buffer against drought by providing additional water in years when there is not enough
rainfall or snow.
Proposition 1 expands water recycling and efficiency improvements making the best use
of our existing supplies.
Propositionl provides funding for clean drinking water in communities where water is
contaminated.
YES ON 1 STORES WATER WHEN WE HAVE IT
Proposition 1 invests in new storage increasing the amount of water that can be stored
during wet years for the dry years that will continue to challenge California.
YES ON 1 PROTECTS THE ENVIRONMENT
Proposition 1 protects California's rivers, lakes and streams from pollution and
contamination and provides for the restoration of our fish and wildlife resources.
PROPOSITION 1 CONTAINS STRICT ACCOUNTABILITY REQUIREMENTS
INCLUDING ANNUAL AUDITS, OVERSIGHT AND PUBLIC DISCLOSURE TO ENSURE
THE MONEY IS PROPERLY SPENT.
Yes on I -Supported by Republicans, Democrats,,farmers, local water suppliers, conservation
groups, business and community leaders.
—Gov. Jerry Brown, Paul Wenger and Mike Sweeny
PROPOSITION 1 OPPOSITION
The campaign against the measure is being led by Vote NO on Proposition 1.
Known Orianizations
California Sportfishing Protection Alliance Pacific Coast Federation of Fishermen's
California Striped Bass Association Associations
California Water Impact Network Restore the Delta
Center for Biological Diversity San Francisco Crab Boat Association
Central Delta Water Agency Sherman Island Duck Hunters Association
Concerned Citizens Coalition of Stockton Small Boat Commercial Salmon
Factory Farm Awareness Coalition Fishermens' Association
Friends of the River South Delta Water Agency
Food and Water Watch Southern California Watershed Alliance
Winnemem Wintu Tribe
Arguments
The California Spor fishing Protection Alliance issued a "statement of opposition"to
Proposition 1. The group provided 14 reasons to vote against the proposition. The,following is a
selection from those reasons:
UNDERMINES THE PUBLIC TRUST DOCTRINE.
Water in rivers and streams, like the air people breathe, belongs to the people of
California as part of the public trust... Private interests have a right to use the public's
water for beneficial purposes, as long as the public's ownership in healthy rivers is
protected. The Bond requires taxpayers to enrich a few wealthy water users by
purchasing water the public already owns, at inflated prices, to protect the public's rivers
and environment. It's a retread of previously discredited programs that allowed
speculators to reap millions in profit selling the public's water back to the public.
UNDERMINES THE PRINCIPLE OF BENEFICIARY PAYS.
The major reason more dams and other environmentally damaging projects have not been
constructed in recent decades is the principle, stemming from approval of the State Water
Project in 1960, that beneficiaries of water projects, not taxpayers, must pay for new
projects. The Bond turns the beneficiary pays principle on its head by requiring taxpayers
to pay for projects benefiting special interests.
UNDERMINES THE PRINCIPLE THAT PROJECTS SHOULD MITIGATE ADVERSE
IMPACTS.
Projects have long been legally responsible for mitigating their adverse impacts. Many, if
not most, of the watershed protection and restoration projects that will be funded by the
Bond are efforts to repair and mitigate environmental damage caused by projects that
were constructed by and for special interests... Taxpayers should not be on the hook
because regulators failed to require special interest projects to mitigate their adverse
impacts.
USHERS IN A NEW ERA OF BIG DAMS.
The Bond includes the largest appropriation for new dams in the state's history... A
number of dam projects that had been abandoned because of low water yield and
financial infeasibility are being resurrected in response to the Bond's commitment of
billions of taxpayer dollars for dams. If the Bond passes, fishermen and environmentalists
can expect to find themselves spending decades fighting new dam schemes on rivers
throughout the state.
PROVIDES LITTLE COST-EFFECTIVE NEAR-TERM DROUGHT RELIEF.
Funds for recycling, conservation and groundwater cleanup were slashed 36%in the final
version of the Bond in order to provide money for expensive water purchases and
speculative new dams that will not be operational for decades... In essence, the Bond
sacrifices funds for proven near-term projects that would create "new"lower cost water,
contribute to regional self-sufficiency, reduce dependency on the Delta and provide
drought relief in order to subsidize long-term pie in the sky projects benefiting the
hydraulic brotherhood.
SABOTAGES EFFORTS TO MEANINGFULLY RESOLVE CALIFORNIA'S CONTINUING
WATER CRISIS.
Prop. 1 is a red herring that diverts attention from the real causes of the state's water
crisis and the steps and resources required to address it. The water crisis is the result of
the over-appropriation, waste and inequitable distribution of limited water supplies and
the failure to balance the public trust.
CROWDS OUT OTHER CRITICAL INVESTMENTS.
The Bond imposes an insidious hidden cost by crowding out critical investments in
public schools,roads,public health and safety. California cannot afford to provide lavish
subsidies to special interests, while ignoring existing and urgent infrastructure needs.
IS FISCALLY IRRESPONSIBLE.
California is staggering under a$777 billion debt and voters have already approved $128
billion in general fund Bonds that must be repaid by taxpayers. The Bond would add over
$7 billion in taxpayer indebtedness that must be repaid with interest, which can easily
double the original amount. Subsidies for special interests are inherently fiscally
irresponsible.
IS A HOGFEST OF PROJECTS UNRELATED TO WATER SUPPLY OR DROUGHT
RELIEF.
Bond proponents carefully disguised pork projects by not identifying specific projects in
general funding allocations to various groups. Associated Press, in a widely published
article,reported that Conservancies and other groups have acknowledged they will use
Bond funds for pedestrian and bike trails,parkways, interpretive centers, trash cleanups
and other projects with no direct connection to the stated intent of the water Bond.
SHAMEFULLY HOLDS A FEW WORTHY PROJECTS HOSTAGE TO FISCALLY
IRRESPONSIBLE AND ENVIRONMENTALLY DAMAGING PROJECTS.
The fact that the Bond contains a few worthy projects fails to justify sacrificing core
environmental principles and fiscal responsibility. Approximately, 6.9% of the Bond will
provide safe drinking water and clean water programs to disadvantaged communities.
This commitment is long overdue and should have been presented as a standalone
proposition. It's shameful to use the long-ignored plight of those lacking safe drinking
water in disadvantaged communities as justification for eviscerating environmental
protection and providing extravagant subsidies to special interests.
—California Spor fishing Protection Alliance
Other arguments against the proposition include:
Barbara Barrigan-Parrilla, field director of Vote NO on Proposition 1:
Proposition 1 is a corporate money grab aimed at bankrolling special interests with taxpayer
dollars while providing tragically inadequate funding for projects that provide safe, clean
water for the people of California. Proposition 1 is the wrong investment for California.
Proposition 1
Water Quality, Supply, and Infrastructure Improvement Act of 2014.
AB 1471 (Chapter 188, Statutes of 2014), Rendon. Bond Measure.
Yes/No Statement
A YES vote on this measure means: The state could sell $7.1 billion in additional general
obligation bonds—as well as redirect$425 million in unsold general obligation bonds that were
previously approved by voters for resource-related uses—to fund various water-related
programs.
A NO vote on this measure means: The state could not sell $7.1 billion in additional general
obligation bonds to fund various water-related programs. In addition, $425 million in unsold
general obligation bonds would continue to be available for resource-related uses as previously
approved by voters.
Summary of Legislative Analyst's Estimate of Net State and Local Government
Fiscal Impact
• Increased state bond repayment costs averaging $360 million annually over the next
40 years.
• Savings to local governments related to water projects, likely averaging a couple
hundred million dollars annually over the next few decades.
State Bond Cost Estimates
Authorized new borrowing $7.1 billion
Average annual cost to pay off bonds $360 million
Likely repayment period 410 years
Source of repayment General tax revenues
Ballot Label
Fiscal Impact: Increased state bond costs averaging $360 million annually over 40 years.
Local government savings for water-related projects, likely averaging a couple hundred million
dollars annually over the next few decades.
BACKGROUND
Sources of Water in California. A majority of the state's water comes from rivers, much of
it from Northern California and from snow in the Sierra Nevada Mountains. Water available
underground(referred to as "groundwater") makes up roughly a third of the state's water use and
is more heavily relied on in dry years. A small share of the state's water also comes from other
sources, such as capturing rainwater,reusing wastewater(water recycling), and removing the salt
from ocean water(desalination).
Meeting the State's Water Needs. Providing clean water throughout California while
protecting the environment presents several key challenges. First, water is not always available
where it is needed. For example, water from Northern California is delivered to other parts of the
state, such as farmland in the Central Valley and population centers in the San Francisco Bay
Area and Southern California. Second, the amount of water available can change widely from
year to year. So, when less water is available in dry years, it can be difficult to provide all of the
water that people want throughout the state. This can include providing enough water to maintain
natural habitats—such as wetlands—for endangered species as is required under state and federal
laws. However, in very wet years the state can sometimes experience floods,particularly in the
Central Valley. Third, water is sometimes polluted, making it unsuitable for drinking, irrigating
crops, or fish habitat. Fourth,parts of the state's water system have affected natural habitats. For
example,providing more water for drinking and irrigation has reduced the water available for
fish.
In order to address these challenges, California has built various projects. Some projects use
natural rivers—as well as pipelines,pumping stations, and canals—to deliver water used for
drinking or farming throughout the state. These projects also include dams and other types of
water storage to hold water for when it is needed. Other projects to meet the state's water
challenges include water treatment plants to remove pollutants from drinking water and
wastewater, systems to clean up runoff from storms, and levees to prevent floods.
Environment and Water System Are Linked. The state's water system and the environment
are linked in several ways. As noted above, the use of water for irrigation and drinking water
affects natural habitats used by fish and wildlife. These effects on natural habitats are made
worse by pollution, which harms water quality for fish, wildlife, and people. The state has taken
a variety of actions to improve natural habitats and water quality. These include restoring
watersheds (an area of land that drains into a body of water) by reintroducing native plants and
animals. The state has also provided water to rivers when needed by fish species.
Roles of Various Governments in Water System. The state, federal, and local governments
play important roles in providing clean and reliable water supplies. Most spending on water
programs in the state is done at the local level, such as by water districts, cities, and counties. In
recent years,local governments have spent about$26 billion per year to supply water and to treat
wastewater. About 80 percent of this spending is paid for by individuals as ratepayers of water
and sewer bills. In addition, local governments pay for projects using other sources, including
state funds, federal funds, and local taxes. While most people get their water from these public
water agencies, about one-sixth of Californians get their water from private water companies.
The state runs programs to (1) conserve, store, and transport water around the state;
(2)protect water quality; (3)provide flood control; and(4)protect fish and wildlife habitat. The
state provides support for these programs through direct spending, as well as grants and loans to
local governments, nonprofit organizations, and privately owned water companies. (The federal
government runs similar programs.) Funding for these state programs usually comes from bonds
and fees. Since 2000, voters have approved about$20 billion in bonds for various environmental
purposes, including water. Currently, about$900 million(5 percent) of these bonds remain
available for new projects.
PROPOSAL
This measure provides a total of$7.5 billion in general obligation bonds for various water-
related programs. First, the measure allows the state to sell $7.1 billion in additional bonds.
Second, the measure redirects $425 million in unsold bonds that voters previously approved for
water and other environmental uses. The state repays these bonds, with interest,using the state's
General Fund. (The General Fund is the state's main operating account, which pays for
education,prisons,health care, and other services.)
Uses of Funds
As shown in Figure 1 and described below, the bond measure provides funding to
(1) increase water supplies, (2)protect and restore watersheds, (3) improve water quality, and
(4) increase flood protection. The bond money would be available to state agencies for various
projects and programs, as well as for loans and grants to local governments,private water
companies, mutual water companies (where water users own the company), Indian tribes, and
nonprofit organizations.
Figure 1
Uses of Proposition 1 Bond Funds
(In Millions)
• Dams and groundwater storage—cost share associated with public $2,700
benefits.
• Regional projects to achieve multiple water-related improvements (includes 810
conservation and capturing rainwater).
• Water recycling, including desafination. 725
• Watershed:restoration and habitat protection in designated areas around $515
the state,
• Certain state commitments for environmental restorations. 475
• Restoration programs available to applicants statewide. 3105
• Projects to increase water flowing in rivers and streams. 200
• i NO
3991NEWAR ii I I I! i, 'I I
Prevention and cleanup of groundwater pollution. $800
• Drinking water projects for disadvantaged communities, 260
• Wastewater treatment in small communities. 260
• Local plans and projects to manage groundwater. 100
• Repairs and improvements to lievees in the Delta. $295
• Flood protection,around the state. 100
Funds for Water Supplies ($4.2 Billion). About $4.2 billion would fund projects intended to
improve water supplies, in order to make more water available for use. Specifically, the bond
includes:
• $2.7 Billion for New Water Storage. The bond includes $2.7 billion to pay up to half
of the cost of new water storage projects, including dams and projects that replenish
groundwater. This funding could only be used to cover costs related to the "public
benefits" associated with water storage projects, including restoring habitats,
improving water quality, reducing damage from floods,responding to emergencies,
and improving recreation. Local governments and other entities that rely on the water
storage project would be responsible for paying the remaining project costs. These
costs would generally be associated with private benefits (such as water provided to
their customers).
• $810 Million for Regional Water Projects. The bond also provides $810 million for
regional projects that are included in specific plans developed by local communities.
These projects are intended to improve water supplies, as well as provide other
benefits, such as habitat for fish and flood protection. The amount provided includes
$510 million for allocations to specific regions throughout the state and $300 million
for specific types of water supplies, including projects and plans to manage runoff
from storms in urban areas and water conservation projects and programs.
• $725 Million for Water Recycling. The bond includes $725 million for projects that
treat wastewater or saltwater so that it can be used later. For example, the funds could
be used to test new treatment technology, build a desalination plant, and build pipes
to deliver recycled water.
Funds to Protect and Restore Watersheds ($1.5 Billion). These monies would fund projects
intended to protect and restore watersheds and other habitat throughout the state. This funding
could be used to restore bodies of water that support native, threatened, or endangered species of
fish and wildlife; purchase land for conservation purposes; reduce the risk of wildfires in
watersheds; and purchase water to support wildlife. These funds include $515 million to restore
watersheds in designated regions around the state (including $140 million specifically for
projects in the Sacramento-San Joaquin Delta[Delta]) and $475 million to pay for certain state
commitments to fund environmental restorations. The remaining funding would be available to
applicants statewide for programs that restore habitat and watersheds ($305 million) and increase
the amount of water flowing in rivers and streams, for example by buying water($200 million).
Funds to Improve Groundwater and Surface Water Quality($1.4 Billion). The bond
includes over $1.4 billion to improve groundwater and surface water quality. More than half of
this funding($800 million) would be used for projects to clean up and prevent polluted
groundwater that is, or has been, a source of drinking water. The remaining funds would be
available to (1) improve access to clean drinking water ($260 million), (2)help small
communities pay for wastewater treatment($260 million), and (3)provide grants to local
governments to develop and implement plans to manage their groundwater supply and quality
($100 million).
Funds for Flood Protection ($395 Million). The bond provides $395 million for projects
that both protect the state from floods and improve fish and wildlife habitat. While $100 million
of this funding could be spent on flood control projects anywhere in the state, $295 million is set
aside to improve levees or respond to flood emergencies in the Delta.
Requirements for Allocating and Spending Funds
How Projects Would Be Selected. The measure includes several provisions that would affect
how specific projects are chosen to receive bond funds. The California Water Commission—an
existing state planning and regulatory agency—would choose which water storage projects
would be funded with the $2.7 billion provided in the bond for that use. The Commission would
not have to go through the state budget process to spend these funds. For all other funding
provided in the measure, the Legislature generally would allocate money annually to state
agencies in the state budget process. While the Legislature could provide state agencies with
some direction on what types of projects or programs could be chosen, the measure states that
the Legislature cannot allocate funding to specific projects. Instead, state agencies would choose
the projects. In addition, none of the funding in the measure can be used to build a canal or
tunnel to move water around the Delta.
Requirements for Matching Funds. Of the $7.5 billion in funds made available by the
measure, $5.7 billion is available only if recipients—mostly local governments—provide funding
to support the projects. This matching requirement only applies to the water supply and water
quality projects funded by the measure. The required share of matching funds is generally at least
50 percent of the total cost of the project, although this can be waived or reduced in some cases.
FISCAL EFFECTS
Fiscal Effects on State Government This measure would allow the state to borrow up to
$7.1 billion by selling additional general obligation bonds to investors, who would be repaid with
interest using the state's general tax revenues. We assume that(1) the interest rate for the bonds
would average just over 5 percent, (2) they would be sold over the next ten years, and (3) they
would be repaid over a 30-year period. Based on these assumptions,the cost to taxpayers to
repay the bonds would average about $360 million annually over the next 40 years. This
amount is about one-third of a percent of the state's current General Fund budget. We assume
that redirecting $425 million in unsold bonds from previously approved measures would not
increase the state's anticipated debt payments. This is because, without this measure, these bonds
likely would have been sold in the future to support other projects. (For more information on the
state's use of bonds and the impact of this proposed bond measure on the state's budget, see
"Overview of State Bond Debt" later in this guide.)
Fiscal Effects on Local Governments. The availability of state bond funds for local water
projects would affect how much local governments,primarily water agencies, spend on water
projects. In many cases, the availability of state bonds could reduce local spending. For example,
this would occur in cases where state bond funds replaced monies that local governments would
have spent on projects anyway. Local savings would also occur in cases where the availability of
state bond funds allowed local governments to build projects that reduced operating costs, such
as by increasing efficiency or using a new water source that allows them to purchase less water.
However, in some cases, state bond funds could increase spending on water projects by local
governments. For example, the availability of bond funds might encourage some local
governments to build additional or substantially larger projects than they would otherwise. These
projects could also be more expensive to operate.
On balance, we estimate that this measure would result in savings to local governments on
water-related projects. These savings would likely average a couple hundred million dollars
annually over the next few decades.
An individual local government might use these savings in various ways. For example, it
might use the savings to build other new facilities or for maintenance and repair of existing
facilities. In other cases, a government might use the savings to keep water rates lower than they
otherwise would be by delaying or reducing future rate increases. Since the amount of statewide
savings in any given year is likely to be small relative to the overall amount spent by local
governments on water, any effect on rates would likely be small for most ratepayers.
Dublin Sari Ramon
Services District
September 18, 2014
Chris Foss, City Manager
City of Dublin
100 Civic Plaza
Dublin, CA 94568
Subject: Request to Consider Support Position on Water Bond (Proposition 1; November
2014 Election)
Dear Mr. Foss:
On September 16 and 17, 2014 respectively, Dublin San Ramon Services District and the Zone 7
Water Agency adopted positions in support of the November 2014 passage of the Water
Quality Supply and Infrastructure Improvement Act of 2014 (Proposition 1).
Proposition 1 is the product of more than five years of discussions among state lawmakers,
stakeholders and others to craft a responsible bond measure to fund needed water system
investments as part of a statewide comprehensive water plan for California. The measure
passed the Legislature (Assembly 77-2; Senate 37-0) and was signed by Governor Edmund G.
Brown Jr. It is supported by a broad coalition of water, business, conservation, labor and
agriculture organizations. ACWA, CASA, The League of Cities, The State Association of
California Counties and the California Chamber of Commerce have taken support positions.
If approved by voters, Proposition 1 would provide funding for new surface and groundwater
storage projects, regional water reliability improvements, sustainable groundwater
management and cleanup actions, water recycling projects, water conservation efforts,
watershed protection and safe drinking water implementation particularly for disadvantaged
communities. This funding would directly and indirectly benefit the City of Dublin and the Tri-
Valley by increasing the reliability of the water supply we receive from the State and providing
funding for local and regional projects.
Proposition 1 is a $7.545 billion general obligation bond (which replaces an $11.14 billion
measure). Key funding areas include: $2.7 billion for surface and groundwater storage; $810
million for regional water reliability; $520 million for safe drinking water; $750 million for
water recycling; $900 million for groundwater sustainability; $1.495 billion for watershed
protection, ecosystem restoration, and state settlements; and $395 million for statewide flood
management.
A copy of the staff report and supporting information provided to the District Board of Directors
is attached for your use and information. If you need any further information please 'REMV,ED
hesitate to ask.
SEP 2 2 2014
CITY OF DUBLIN
CITY MANAGER'S OFFICE
Chris Foss, City Manager
September 18, 2014
Page 2
The District requests the City consider a support position on Proposition 1.
Sincerely,
BERT MICHALCZYK
General Manager
BLM/Icr
cc: DSRSD Board of Directors
Jill Duerig, Zone 7 General Manager
Attachments:
• Staff Report and Attachments presented to DSRSD Board of Directors on September 16,
2014
U:\Word\LETTER\2014\Dublin Support Request Prop l.docx
RESOLUTION NO. XX - 14
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
* * * * * * * * * * *
RESOLUTION DECLARING SUPPORT FOR PROPOSITION 1, THE WATER QUALITY,
SUPPLY, AND INFRASTRUCTURE IMPROVEMENT ACT OF 2014
WHEREAS, California is in a severe, multi-year drought and faces a growing list of
challenges associated with aging infrastructure, climate change, population growth and other
factors; and
WHEREAS, water managers and top leaders, including Governor Edmund G. Brown Jr.,
agree we need a comprehensive, statewide water plan to create a more resilient water system
and meet the coequal goals of improved water supply reliability and ecosystem health; and
WHEREAS, the Legislature has approved and Governor Brown has signed the Water
Quality, Supply and Infrastructure Improvement Act of 2014, which will appear as Proposition 1
on the November 4, 2014 ballot and provide much-needed funding to advance a statewide
comprehensive water plan to secure our water future; and
WHEREAS, if approved by voters, the measure would provide $7.545 billion in bond
funding for new surface and groundwater storage projects, regional water reliability, sustainable
groundwater management and cleanup, water recycling, water conservation, watershed
protection and safe drinking water, particularly for disadvantaged communities, and other
programs the Association of California Water Agencies (ACWA) and its members have long
advocated as a part of a statewide comprehensive plan; and
WHEREAS, both the Zone 7 and the Dublin San Ramon Services District (DSRSD)
Board of Directors have voted to formally support Proposition 1; and
WHEREAS, the City of Dublin receives its water from both Zone 7 and DSRSD; and
WHEREAS, the City of Dublin has a strong, collaborative relationship with Zone 7 and
DSRSD and remains committed to assisting its partners, within the limits of its means and
sphere of influence, in improving water delivery systems for Dublin residents; and
WHEREAS, DSRSD has formally requested that the City of Dublin consider supporting
Proposition 1; and
WHEREAS, the City Council of the City of Dublin has considered arguments for and
against Proposition 1 as its meeting on October 7, 2014, and determined that the passage of
Proposition 1 will benefit the City of Dublin.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Dublin
supports the passage of Proposition 1, the Water Quality, Supply and Infrastructure
Improvement Act of 2014 on the November ballot.
ATTACHMENT 1
PASSED, APPROVED AND ADOPTED this 7th day of October 2014, by the following
vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk
ATTACHMENT 1