HomeMy WebLinkAbout1996-10-21 City Council (17)City of Palo Alto
City Manager’s Report
TO:
FROM:
AGENDA DATE:
SUBJECT:
HONORABLE CITY COUNCIL
CITY MANAGER
October 21, 1996
Proposition 204 re: State Water Bonds
4
DEPARTMENT: UTILITIES
CMR:441.96
REOUEST
This proposition will be presented to the voters on November 5, 1996. The Council is requested to
announce its position on this measure, which has some relationship to local government issues and
responsibilities.
RECOMMENDATIONS
Staff recommends approval of the attached Resolution, by which the City of Palo Alto officially
supports Proposition 204, the Safe, Clean, Reliable Water Supply Act of 1996.
POLICY IMPLICATIONS
Public agencies may take formal positions in support of or in opposition to ballot measures, but public
funds may not be used to encourage citizens to vote a specific way. It is permissible to provide
information to the public on the impact any ballot measure will have on the City.
EXECUTIVE SUMMARY
Proposition 204 has been placed on the ballot for the November 5, 1996 general election by the State
Legislature. Detailed information on this proposition is contained in materials attached to this report:
excerpts from the California Ballot Pamphlet prepared by the Secretary of State, including the Summary
Chart on pages 4 and 5, the Official Summary prepared by the Attorney General on pages 10-11; the
Arguments in Favor and Against, including rebuttals on pages 12-13; and the Text of the Proposed Law
on pages 79-86.
The .Safe, Clean, Reliable, Water Supply Act.
This Act provides for a bond issue of $995 million to provide funds to ensure safe drinking water;
increase water supplies; clean up pollution in rivers, streams, lakes, bays, and coastal areas; protect life
and property from flooding; and protect fish and wildlife. The Act also makes changes in the Water
CMR:441:96 Page 1 of 3
Conservation and Water Reclamation Bond Law of 1988 to further these goals and appropriates money
from the state General Fund to pay off bonds.
Specifically, this measure authorizes the state to sell $995 million of general obligation bonds for the
purposes of restoration and improvement of the Bay-Delta, wastewater treatment and water supply and
conservation, and local flood control prevention. General obligation bonds are backed by the state,
meaning that the state is required to pay the principal and interest costs on these bonds. General Fund
revenues would be used to pay these costs. General Fund revenues come primarily from the state
personal and corporate income taxes and sale tax.
If approved by the voters, the bond money would be available for expenditure by various state agencies
and for loans and grants to local agencies. The measure specifies the conditions under which the funds
are available for loans, including the terms for interest and repayment of the loans. In addition to
authorizing the sale of bonds, the measure requires that the repayment of loans funded under the 1988
Clean Water and Water Reclamation Bond (Proposition 83) be used to provide additional loans and
grants for local water recycling projects.
Up to $93 million of the proposed bond issue is dedicated to the State of California’s cost share
obligation (approximately 25%) for many of the fish and wildlife restoration programs identified in the
Central Valley Project Improvement Act (CVPIA).
The Central Valley Project (CVP) is a federal reclamation project comprised of multiple dams,
reservoirs, canals, powerhouses, runnels, transmission lines, etc., up and down the Sacramento, Trinity,
American and Stanislaus Rivers. The CVP project was authorized by the Act of 1937. Many of the
state’s agriculture and urban interests depend on the CVP water to meet their water needs. In addition,
almost all of the NCPA members, several irrigation districts, and small and large federal facilities have
contracted for power generated at the CVP power facilities. In return, they agreed to pay to the federal
government their share of the Project’s capital and operating cost.
In 1992, Congress adopted the CVPIA. Its main purposes are to protect, restore, and enhance fish,
wildlife, and associated habitats in the Central Valley including the San Francisco San/Sacramento-
San Joaquin Delta estuary, and to achieve a reasonable balance among competing demands for use of
CVP water that include fish and wildlife, agriculture, municipal and industrial, and power contractors.
As mentioned above, the state is responsible for sharing CVPIA fish and wildlife restoration programs.
This proposition is supported by League of California Cities, California Municipal Utilities Association,
Northern California Power Agency, Sierra Club, President Bill Clinton, and Republican Presidential
Nominee Bob Dole, among others.
Staff recommends that Council support Proposition 204.
FISCAL IMPACT
The attached ballot pamphlet excerpts contain the Legislative Analyst’s estimate of the costs of paying
off the bonds. Passage of Proposition 204 will reduce the potential for adverse financial impact upon
NCPA members, including Palo Alto, and other CVP power customers, by providing $93 million in
state funding pursuant to the CVPIA. This would reduce the need for additional federal funding
CMR:441:96 Page 2 of 3
obligations that in turn would be passed on to the CVP customers. The direct fiscal impact on the Ci~’
of Palo Alto is unknown.
ENVIRONMENTAL ASSESSMENT
Support of Proposition 204 does not constitute a project under California Environmental Quality Air.
therefore, an Environmental Assessment is not required.
ATTACHMENTS
A. Resolution in Support of Proposition 204
B. Excerpts from California Ballot Pamphlet
C. LWV Pros and Cons
PREPARED BY:Linda Clerkson, Coordinator, Utility Marketing Services
DEPARTMENT HEAD APPROVAL:
Dir~~r of Utilities
CITY MANAGER APPROVAL:
CMR:441:96 Page 3 of 3
RESOLUTION
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO
SUPPORTING PROPOSITION 204,
THE SAFE, CLEAN, RELIABLE WATER SUPLY ACT OF 1996
WHEREAS, water is the lifeblood of California, and few major improvements have
been made to its water supply and delivery, infrastructure in the last three decades, yet the
state’s population has nearly doubled to 32 million and is projected to be nearly 50
million by 2020; and
WHEREAS, the State of California has joined with the federal government in
adopting the "Central Valley Project Improvement Act Sharing of Costs Agreement for
Mitigation Projects and Improvements," (CVPIA) to share in the cost to protect, restore
and enhance fish, wildlife, and associated habitat in the Central Valley and Trinity River
basins of California; and
WHEREAS, the State of California has not appropriated funds to fulfill its financial
commitment to assure the implementation of CVPIA; and
WHEREAS, the federal government is becoming less willing to finance additional
CVPIA cost-share projects required by the Act until the State of California demonstrates
the ability to meet its financial obligations; and
WHEREAS, the passage of Proposition 204, a $995 million general obligation bond
measure appearing on the November 1996 ballot, will provide California’s share of costs
for several of the projects and programs associated with the CVPIA; and
WHEREAS, the City of Palo Alto, as a member of Northern California Power Agency
(NCPA), contracts with the federal Bureau of Reclamation for water and power, and
supported the design and contribution of the federal Central Valley Project: and
WHEREAS, the City of Palo Alto, through NCPA, relies on the Central Valley Project
as a major source of renewable ener~, and contributes significantly to the costs of
operating and maintaining the Central Valley Project by purchasing substantial amounts
of electric power from the federal power marketing agency, Western Area Power
Administration; and
WHEREAS, Proposition 204 represents a prudent investment in our environment and
our $750 billion state economy and balances the needs of the state’s economy and
environment to provide the foundation for a comprehensive solution to our state’s water
problems; and
WHEREAS, Proposition 204 will benefit all Californians by ensuring safe drinking
water; increasing water supplies; preventing water pollution; protecting against floods;
helping our economy and jobs; encouraging water conservation and recycling; protecting
fish and wildlife and protecting against earthquake damage; and
WHEREAS, passage of Proposition 204 will reduce the potential for adverse financial
impacts upon the City of Palo Alto, NCPA members and other CVP power contractors by
fulfilling part of the State’s obligations; and
WHEREAS, additional federal cost-sharing contemplated for the "Bay-Delta
Ecosystem Restoration Program" does not call for needed revenues, in addition to their
on-going CVPIA Restoration Fund obligation, to come from CVP power contractors; and
WHEREAS, over 100 entites, including aagricultural interest, civic and
community groups, businesses, environmental protection associations, labor coalitions,
and others support Proposition 204.
NOW, THEREFORE, BE IT RESOLVED, that the Council of the City of Palo Alto,
by adoption of this Resolution, hereby endorses Proposition 204, The Clean, Safe,
Reliable Water Supply Act of 1996.
INTRODUCED AND PASSED:
AYES:
NOES"
ABSENT:
ABSTENTIONS"
ATTEST:
City Clerk
APPROVED AS TO FORM:
City, Attorney
APPROVED:
Mayor
City’ Manager
204
SAFE, CLEAN, RELIABLEWATER SUPPLY ACT.
Bond Act
Put on the Ballot by
the Legislature
November 5, 1996, Ballot Measures
SUMMARY
This act provides for a bond issue of nine
hundred ninety-five miLlion dollars
(S995,000,000) to provide funds to ensure
safe drinking water, increase water supplies,
clean up pollution in rivers, streams, lakes,
bays, and coastal areas, protect life and
property, from flooding, and protect fish and
Wildlife and makes changes in the Water
Conservation and Water Quality. Bond Law of
1986 and the Clean Water and Water
Reclamation Bond Law of 1988 to further
these goals. Fiscal Impact: General Fund cost
of up to $1.8 billion to pay off both the
principal ($995 nxillion) and interest ($776
million). The average payment for principal
and interest over 25 years would be up to $71
million per year.
ARGUMENTS
PRO CON
Provides a balanced solution to
California’s water supply needs that
enhances our economy while
protecting the environmenL
According to State Treasurer Matt
Fong, "’Proposition 204’s $995
million investment in the state’s
water supply and delivery system
is a very prudent investment to
sustain and expand California’s
$750 billion economy."
What "water crisis" ? State
government has a record of damaging
the environment rather than protecting
it. We don’t know if these projects are
worthwhile. They should be voted on
and funded at the local level. Prop.
204 will cost $1.7 billion in principal
and interest over 25 years.
WHAT YOUR VOTE MEANS
A YES vote on this measure means:
The state would be able to issue
$995 million in general obligation
bonds for restoration and
improvement of the San Francisco
Bay/Sacramento-San Joaquin Delta.
Estuary: wastewater treatment and
water supply and conservation; and
local flood control and prevention.
A NO vote on this measure means:
The state would not be able to issue
bonds for these purposes.
WHOM TO CONTACT FOR MORE INFORMATION
FOR AGAINST
Californians for Safe, Clean,Libertarian Party of California
Reliable Water 1800 Market Street, Suite 16
10866 Wilshire Boulevard. Suite 550 San Francisco, CA 94102
Los Angeles, CA 90024-4303 1-800-63% 1776
(310) 441-9380
III
Safe, Clean, Reliable Water Supply Act.
|11111
Official Title and Summary Prepared by the Attorney General
SAFE, CLEAN, RELIABLE WATER SUPPLY ACT.
This act provides for a bond issue of nine hundred ninety-five million dollars ($995,000,000) to
provide funds to ensure safe drinking water, increase water supplies, clean up pollution in rivers,
streams, lakes, bays, and coastal areas, protect life and property from flooding, and protect fish
and wildlife and makes changes in the Water Conservation and Water Quality Bond Law of 1986
and the Clean Water and Water Reclamation Bond Law of 1988 to fu~her these goals.
Appropriates money from state General Fund to pay off bonds.
Summary of Legislative Analyst’s Estimate
of Net State and Local Government Fiscal Impact:
General Fund cost of up to $1.8 billion to pay off both the principal ($995 million) and interest
($776 million).
The average payment for principal and interest over 25 years would be up to $71 million per year.
Final Votes Cast by the Legislature on SB 900 (Proposition 204)
Assembly: Ayes 74 Senate: Ayes 33
Noes 4 Noes 4
Analysis by the Legislative Analyst
BACKGROUND
Water Quality and Supply. In past years, the state
has provided funds for projects that improve water
quality and supply. For example, the state has provided
loans and grants to local agencies for the construction
and implementation of wastewater treatment, water
supply, and water conservation projects and facilities.
The state has sold general obligation bonds to raise the
money for these purposes. As of June 1996, all but about
$79 million of the $2 billion authorized by previous bond
acts had been spent or committed to specific projects.
Project applications have been received for most of the
remainLng uncommitted funds.
Bay.Delta. The state also has funded the restoration
and improvement of fish and wildlife habitat in the San
Francisco Bay/Sacramento-San Joaquin Delta Estuary
(the Bay-Delta) and other areas, using various fund
sources including general obligation bonds and the state
General Fund. The Bay-Delta supplies a substantial
portion of the water used in the state for domestic,
industrial, agricultural, and environmental purposes.
For example, water flowing through the Bay-Delta
provides drinking water for about 22 million people in
California and irrigates 45 percent of the fruits and
vegetables produced in the United States. In addition to
supplying water, the Bay-Delta provides habitat for fish
and wildlife, including several endangered species, and
an estimated 80 percent of the state’s commercial fishery
species live in or migrate through the Bay-Delta.
Increased demand for water from the Bay-Delta,
combined with other factors such as pollution,
degradation of fish and wildlife habitat, and
deterioration of delta levees and flood control facilities,
has reduced the Bay-Delta’s capacity to provide reliable
supplies of water and sustain fish and wildlife species.
The CALFED Bay-Delta Program is a joint state and
federal effort to develop a long-term approach to
restoring ecological health and improving water
management in the Bay-Delta. Total capital costs for the
various alternatives under consideration range from $4
billion to $8 billion over the next 20 to 40 years. It is
anticipated that funding would come from a variety of
federal, state, local, and private sources.
Flood Control. The state also provides funds to local
agencies for flood control projects. The state has not
previously sold general obligation bonds to fund the
construction of local flood control projects or facilities.
Rather, these projects have primarily been funded from
the state General Fund. However, due to the state’s fiscal
condition in recent years, the state has been unable to
pay its share of the costs of these projects. As of June
1996, the unpaid amount of the state’s share of costs for
local flood control was about $158 million.
PROPOSAL
This measure authorizes tl~e state to sell $995 million
of general obligation bonds for the purposes of
restoration and improvement of the Bay-Delta;
10 G96
wastewater treatment and water supply and
conservation; and local flood control and prevention.
General obligation bonds are backed by the state,
meaning that the state is required to pay the principal
and interest costs on these bonds. General Fund
revenues would be used to pay these costs. General Fund
revenues come primarily from the state personal and
corporate income taxes and sales tax.
Figure 1 lists the purposes for which the bond money
would be used. The bond money will be available for
expenditure by various state agencies and for loans and
grants to local ageflcies. The measure specifies the
conditions under which the funds are available for loans,
including the terms for interest and repayment of the
loans.
In some instances, the measure makes the expenditure
of bond funds contingent on actions by the state or
federal government. For example, under the measure,
funds for projects to restore the Bay-Delta ecosystem
may not be spent until the state and federal governments
have completed their environmental review of the
projects and have entered into a cost-sharing agreement
for funding those projects.
In addition to authorizing the sale of bonds, the
measure requires that the repayment Of loans funded
under the 1988 Clean Water and Water Reclamation
Bond (Proposition 83) be used to provide additional loans
and grants for local water recycling projects.
FISCAL EFFECT
Costs of Paying Off the Bonds. For these types of
bonds, the state typically makes principal and interest
payments from the state’s General Fund over a period of
about 25 years. If all of the bonds authorized by this
measure are sold at an interest rate of 6 percent, the cost
would be about $1.8 billion to pay off both the principal
($995 million) and interest ($776 million). The average
payment for the principal and interest would be about
$71 million per year.
However, total debt repayment costs to the state will
be somewhat less than the $1.8 billion. First, bonds used
to fund revolving loan programs ($175 million) may have
to be financed over a shorter period than is typically used
for most state bonds in order to comply with federal law.
Consequently, total interest costs on these bonds would
be less than if the payments were made over 25 years.
Second, the measure requires that loans made for
construction of drainage water management and local
water projects be repaid to the state General Fund. The
repayments of these loans could reduce the state General
Fund cost by about $70 million over the life of the bonds.
Use of Repayments of Past Loans. The 1988 Clean
Water and Water Reclamation Bond (Proposition 83)
authorized up to $40 million in loans to local agencies.
Currently, repayments of these loans are used to pay off
the bonds. This measure requires, instead, that the
repayments be used to ’provide additional loans and
grants for local water recycling projects. As a result, this
will result in a General Fund cost of at least $60 million
to pay off the principal and interest of these bonds.
Proposition 204
Safe, Clean, Reliable Water Supply Act
Uses of Bond Funds
IIIII III II II
Bay-Delta Improvement $193.
¯ Central Valley Project Improvement--fish
and wildlife restoration 93
¯ Bay-Delta non-flow-related projects 60
¯ Delta levee rehabilitation and maintenance
and flood protection 25
¯ South Delta environmental enhancement
and mitigation 10
¯ CALFED state’s share of administration 3
¯ Delta recreation 2
CALFED Bay-Del~ Ecosystem: ~.
Restoration ~’.:~ ’.:~:(’.-~:L÷i.~-:’;":...i
enh~cement
Tid~, fip~, wefl~ds, ~d o~er habitat
restoration
Ins~e~ flow improvements
Fish prot~tion ~d m~agement
- Clean Water and Water. Recycling ~::
¯ Wastewater treatment 110
¯ Water recycling and reclamation 60
¯ Treatment and management of agricultural
drainage water 30
¯ Delta tributary watershed rehabilitation 15
¯ Seawater intrusion control 10
¯ Lake Tahoe water quality 10
¯ Water conservation and groundwater
recharge 30
¯ River parkway acquisition and riparian
habitat restoration 27
¯ Local water supply development and
environmental mitigation 25
¯ Sacramento Valley water management and
habitat protection 25
¯ Feasibility investigations for off-stream
storage, water recycling, water transfer
facilities, and desalination 10
Local Flood. Control and Prevention:--+--~i;~ S 6..~0:
¯ Claims submitted by 6/30/96 for projects
in specified counties 60
Total. :.-.~:,.~ "~.-~T:.,:~:~,:~:--.:i~ :-~:~; ~.~:
¯ Amounts not specifiecL
For text of Proposition 204 see page 79
G96 11
204 so o,Clean, Reliable WaterSupply Act.
Argument in Favor
Safe drinking water is something most of us take for granted.
But the truth is, unless we act now, California’s residents,
businesses and farms face a future of chronic water shortages
and potentially unsafe supplies. According to the California
Department of Water Resources, our water problems will only
get worse, due to increasing population and a water supply
system that has not kept up with our needs.
Proposition 204, the SAFE, CLEAN, RELIABLE WATER
SUPPLY ACT, provides the foundation for a comprehensive and
lasting solution to the state’s water supply needs. Proposition
204 is a truly BALANCED WATER SOLUTION THAT IS
GOOD FOR OUR ECONOMY AND JOBS, GOOD FOR OUR
ENVIRONMENT AND GOOD FOR ALL CALIFORNIANS.
PROPOSITION 204 WILL BENEFIT ALL CALIFORNIANS
BY:
ENSURING SAFE DRINKING WATER. Proposition 204
helps meet safe drinking water standards to protect public
health.
INCREASING WATER SUPPLIES. Proposition 204 makes
more water available to meet the state’s growing needs through
conservation, recycling and potential off-stream reservoirs and
delivery systems to capture water in wet years for use during
droughts.
PREVENTING WATER POLLUTION. Our streams, rivers,
lakes, bays and coastal waters are threatened by pollution.
Proposition 204 provides for cleanup of our precious waterways.
PROTECTING AGAINST FLOODS. Flooding threatens
lives and l~as caused billions of dollars in property damage.
Proposition 204 allows long-overdue flood protection projects to
be completed.
HELPING OUR ECONOMY AND JOBS. Water is the
lifeblood of California’s economy. Reliable water supplies will
protect existing jobs, encourage new businesses and create new
jobs.
ENCOURAGING WATER CONSERVATION AND
RECYCLING. Proposition 204 ensures we get the most out of
our existing water supplies by encouraging conservation and
recycling.
PROTECTING FISH AND WILDLIFE. Proposition 204
helps protect critical fisheries, wildlife, wetlands and other
natural habitats, including the San Francisco
Bay/Sacramento-San Joaquin Delta. The Bay-Delta is one of
Rebuttal to Argument in
We weren’t aware of any water crisis until we read the
proponents’ argument. We suspect that these scare tactics are
meant to convince you to support yet another big government
public works boondoggle. Remember, using bond financing
almost doubles the cost of any government project. Taxpayers
can’t afford Proposition 204. Let’s look at the issues:
INCREASE WATER SUPPLIES--Residential customers use
only 15% of California’s water, but have to subsidize the
agricultural and commercial customers who use 85%. If big
water users had to pay the real cost of their water, prices would
fluctuate according to supply and lead to conservation, as
cost-effectiveness would become a major concern.
PREVENTING WATER POLLUTION--Those who pollute
our rivers and lakes should be held fully responsible for the
damage they do. Taxpayers should not be put on the hook for
damages caused by private businesses and individuals. In cases
where government officials are responsible for the pollution, we
of Proposition 204
the state’s most important environmental resources and the
source of drinking water for over 22 million Californians.
PROTECTING AGAINST EARTHQUAKE DAMAGE.
Seismic experts believe our water delivery system is in danger
from major earthquakes, which could leave residents,
businesses and farms without water. Proposition 204 provides
necessary repairs and improvements to the delivery system to
help prevent catastrophic failures.
WE CANNOT AFFORD TO WAIT. We must invest in our
water supply system to ensure safe drinking water and avoid
chronic water shortages. If we do not act NOW, the cost will be
far higher in the future. The last major investment in our water
supply system occurred 36 years ago, in 1960.
Join a diverse group of Californians in support of Proposition
204, including:
ASSOCIATION OF CALIFORNIA WATER AGENCIES
CALIFORNIA CHAMBER OF COMMERCE
ENVIRONMENTAL DEFENSE FUND
CALIFORNIA FARM BUREAU FEDERATION
STATE BUILDING & CONSTRUCTION TRADES COUNCIL
AFL-CIO
BAY AREA ECONOMIC FORUM
SOUTHERN CALIFORNIA WATER COM2VIITI~EE
NORTHERN CALIFORNIA WATER ASSOCIATION
CALIFORNIA BUSINESS ROUNDTABLE
~COUNCIL FOR A GREEN ENVIRONMENT
PACIFIC WATER QUALITY ASSOCIATION
DELTA RESTORATION COALITION
.VOTE YES FOR SAFE DRINKING WATER, YES FOR
RELIABLE WATER SUPPLIES, YES FOR JOBS, YES FOR
THE ENVIRONMENT AND YES FOR CALIFORNIA’S
FUTURE.
YES ON PROPOSITION 204!
JIM COSTA
Chairman, Senate Agriculture and Water
Resources Committee
STEPHEN HALL
Executive Director,’Association of California
Water Agencies
GERALD H. MERAL, Ph.D.
Scientist, Planning and Conservation League
Favor of Proposition 204
don’t need to give them a blank check to clean it up.
’ HELPING OUR ECONOMY AND JOBS~Reliable water
supplies alone won’t create jobs. We need to cut the size and
scope of government, slash taxes and repeal regulations so that
businesses can create new jobs.
Many of Proposition 204’s provisions could cause serious
damage to private property rights. Armies of bureaucrats will
march through the Sacramento Delta to.impose rules and
regulations. Then taxpayers will have to pay $1.7 BILLION in
principal and interest over 25 years. Please vote NO.
JON PETERSEN
Treasurer, Libertarian Party of California
¯DENNIS SCI~LUlVIPF
Director, Tahoe City Publi~ Utility District
TED BROWN
Insurance Adjuster/Investigator, Pasadena
Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency.G96
Safe, Clean, Reliable Water Supply Act.
Argument Against Proposition 204
California’s bond debt now approaches $25 BILLION.
Taxpayers must pay $3 billion EVERY YEAR. Now Sacramento
politicians want to add another billion. Proposition 204 is too
expensive! $995 million in bonds means a total of $1.7
BILLION in principal and interest over 25 years. As usual,
taxpayers have to pay.., and pay.., with no end in sight.
And just what are we paying for? Proponents claim this
measure will "ensure safe drinking water.., clean up pollution
in rivers ... protect fish and wildlife," etc. When has the
government ever succeeded in doing any of these things? You
are more likely to hear about government policies CAUSING
unsafe water, CAUSING pollution and INJURING fish and
wildlife.
When the government diverted water from Northern to
Southern California, it created problems with saltwater
intrusion into freshwaters. As a result, the Sacramento Delta
became degraded. This new measure seeks to "protect" the very
same delta. As usual, the remedy for government mistakes is to
spend more of our money to correct them. These flawed
government water development policies caused the selenium
intrusions into the Kesterson Wildlife Refuge and Reservoir
near Merced and the resulting environmental nightmare..
Proposition 204 contains a laundry list of water projects,
mostly in the Sacramento Delta area. How do we know if any of
these projects are worthwhile, or if they are "make-work"
projects to fill the wallets of politicians and their big-money
contributors? These projects should be voted on and funded at
the LOCAL level, where voters have first-hand knowledge
about their necessity. The rest of us lack enough information to
decide intelligently.
There’s also the issue of whether taxpayers all over California
should have to pay for projects in one small area. Proponents
2O4
claim there is a "water crisis" and that this measure has state
and national importance. They sure haven’t demonstrated why.
It smells like a big boondoggle to us.
The most curious part of Proposition 204 is $390 million
de’signoted for a "Called Bay-Delta Ecosystem Restoration
Program." A consortium of five state agencies and five federal
agencies wants to create habitats, protect wetlands, introduce
species management, and protect fish. We are suspicious of this
program, as we are of any program that.would bring together
armies of bureaucrats from ten different agencies. By its very
nature, the program would likely ~,iolate private property
rights. Why impose strict, mostly unnecessary environmental
regulations on private citizens? "Wetlands" can mean anything
that bureaucrats decide it means. Homeowners have run afoul
of such regulations for minor acts like filling in puddles in their
backyards. Some have even gone to jail. Proposition 204’s
loosely defined provisions are steps toward even more
bureaucratic tyranny.
We favor protecting the environment--that’s why we want
government bureaucrats far away from our rivers, streams and
wildlife. Look at the fine print. Proposition 204 means more
bureaucracy, less protection of our natural environment, and
$1.7 BILLION of our hard-earned dollars for 25 years. Please
vote NO.
GAIL LIGHTFOOT
Chair, Libertarian Party of California
DENNIS SCI-ILUMPF
Director, Tahoe City Public Utility District
TED BROWN
Insurance Adjuster/Investigator, Pasadena
Rebuttal to Argument Against Proposition 204
Our economy, jobs and quality of life are dependent upon a
safe, reliable and sufficient water supply. Proposition 204
balances the needs of the state’s economy and environment to
provide the foundation for a comprehensive solution to our
state’s water problems.
SOUND INVESTMENT. According to California State
Treasurer Matt Fong, "Proposition 204’s $995 million
investment in the state’s water supply and delivery system is a
very. prudent investment to sustain and expand California’s
$750 BILLION economy. This is a vital investment in our
state’s future."
NO TAX INCREASE. Proposition 204 does not increase
taxes, it simply uses existing revenues to improve our water
supply system.
STATEWIDE PROBLEM, STATEWIDE SOLUTION,
STATEWIDE BENEFITS. California’s water problems affect
the entire state. Proposition 204 focuses on resolving critical
water quality and environmental problems that impact our
ability to provide safe drinking water for all Californians.
BROAD AND DIVERSE SUPPORT. Contrary to what some
would have you believe, Proposition 204 is not about more
government intervention. Proposition 204 was developed by a
broad and diverse coalition of businesses, farmers,
environmentalists and local water officials from all regions of
the state concerned about SOLVING problems, not creating
them.
COST EFFECTIVE. Proposition 204 is also cost effective
because it generates federal matching dollars to help solve
high-priority state and local water problems.
An investment in a SAFE WATER SUPPLY is an investment
in our FUTURE.
VOTE YES ON PROPOSITION 204!
THOMAS S. MADDOCK
Chairman, California Chamber of Commerce Water
Committee.
DAVID N. KENNEDY
Director, California Department of Water Resources
SUNNE WRIGHT McPEAK
President, Bay Area Economic Forum
G96 Arguments printed on this page are the opinions ofthe authors and have not been checked for accuracy by any official agency.13
Proposition 204: Text of Proposed Law
This law proposed by Senate Bill 900 (Statutes of 1996, Chapter 135) is submitted to the
~ople hn accordance with the provisions of Article XVI of the Constitution.
This proposed law amends and adds sections to the Water Code; therefore, existing
provisions proposed to be deleted are printed in s~ikeo.at .type and new provisions proposed to
be added are printed in italic type to indicate that they are new.
PROPOSED LAW
SECTION h Division 24 (commencing with Section 78500) is added to the Water Code,
to read:
DIVISION 24. SAFE, CLE.42~’, RELIABLE WATER SUPPLY ACT
CHa~’r~ 1. SHoxr Tmz a.,¢o Fmotuas a~.o D~ct.a~,a~7o.~s
78500. This dMsion shall be known and may be cited as the Safe, Clean, Reliable Water
Supply Act.
78500.2. In placing this measure before the voters, the Legislature hereby finds and
~ciares all of the following:
~a) The state faces a water crisis that threatens our economy and em,ironment.
tb~ The state’s growing population has increasing needs for safe water supplies which are
essemial to the public health, safeb; and welfare.
tc) It is of paramount importance that the limited water resources of the state be protected
from pollution, and conserved aM reo’cled whenever economicall); environmentally, and
technically feasible.
i’d) The state should plan to meet the water supply needs of all beneficial uses of water,
including urban, agricultural, and environmental, utilizing a wide range of strategies
including water conservation and reo’cling, conjunctive use of surface and groundwater
supplies, water transfers, and improvements in the state’s water storage and delivery O,stems
to meet the growing water needs of the state.
! e ) This measure is a necessao’first step taward providing for the state’s long-term water
supply requirements through a number of water management strategies.~f) The San Francisco Bay/Sacramento San Joaquin Delta EstuaO’ (the Bay-Delta) is of
statewide and national importance. The Bay-Delta provides habitat for more than 120 species
offish and wildlife and sen,es as a major link in our water deliveo" system for businesses and
.farms statewide and more than 22 million residents.
(g) The state has signed an historic accord with federal officials aM statewide water
interests that calls for the development of a comprehensive and long.term solution for the
water supply reliabilir); water quality, and em’ironmental problems of the Bay-Delta.
(h) Federal and state representatives have initiated a program ~own as CALFED, to
develop a comprehensive and long.term solution to the problems associated with the
Bay-Delta, including an equitable allocation of program costs among beneficiary groups. The
success of the CALFED program is vital to the environmental and economic well-being of the
slate¯
78500.4. In enacting this measure, the people of California declare all of the following to
be the objectives (this act."
ta) To provide a safe, clean, affordable, and sufficient water supply to meet the needs of
Calij’ornia residents, farms, and businesses.
~b) To develop lasting water solutions that balance the needs of the state’s economy and
il.~ environment.
(c) To restore ecological health for native fish and wildlife, aM their natural habitats,
including wetlands.
(d) To protect the integrio’ of the state’s water supply ~3’stem from catastrophic failure due
to earthquakes and flooding.
(e) To protect drinking water qualit):(t3) To protect the quality of life in our communities by ensuring recreational opportunities
and maintaining parks, trees, and plants.
CnAztr_~ 2.
78501. Unless the context other~’ise requires, the following definitions govern the
construction of this division:
~ a) "B~’-delta" means the San Francisco B~’/Sacramemo-San Joaquin Delta Estuar):
¢ b ) "Board" means the State Water Resources Control Board.
tc1 "CALFED" refers to a consortium of five state agencies, including the Resources
Agenc); the department, the Department of Fish and Game, the California Environmental
Protection Agent3; and the board, and five federal agencies, including the United States
Department of Interior, the United States Bureau of Reclamation, the United States Fish and~;ldlife Service, the Em,ironmental Protection Agency, and the National Marine Fisheries
Se~’ice, with management and regulatoo" responsibilities in the bay-delta.
~d~ "’Clean Water Act" means the federal Clean Water Act (33 O.S.C.A. Sec. 1251 et seq.)
and includes any amendmems thereto.
(e) "Committee" means the Safe, Clean, Reliable Water Supply Finance Committee
created pursuant to Section 78693.
~ "Delta" means the Sacramento-San Joaquin Delta.
t g ! "Department" means the Department of ~hter Resources.
~ h ) "Fund" means the Safe, Clean. Reliable Water Supply Fund created pursuant to
Section 78505.
Cn,tt, rr~ 3. Sara Ct,9,~-, R~t~ Warr.~ Su~zr Fw’o
78505. The proceeds of bonds issued and sold pursuant to this division shall be deposited
m the Safe, Clean, Reliable Water Supply Fund, whleh is hereby created.
Cnorr~ 4. Dn.ra lut, xovo~r
Article I. The Delta lmprovement Account
78525. Unless the context otherwise requires, as used in this chapter, "account" mean.~
the Delta Improvement Account created by Section 78526.
78526. The Delta Improvement Account is hereto.’ created in the fund. The sum of one
hundred nineO-three million dollars ($193,000,000) is hereby transferred from the fund to the
account.
G96
Article 2. Central Valley Project Improvement Program
78530. (a) There is hereby created in the account the Central Valley Project
Improvement Subaccount.
(b) For the purposes of this article, "subaccount" means the Central Valley Project
Improvement Subaccount created by subdivision (a).
78530.5. The sum of ninety.three million dollars ($93,000,000) is hereby transferred from
the account to the subaccount for the purpose of implementing this article.
78531. (a) Notwithstanding Section 13340 of the Government Code. the money in the
subaccount is hereby continuously appropriated, without regard to fiscal ~’ears, to the
Controller, to be allocated to pay the state’s share of the costs for fish arid wildlife restoration
measures required by Section 3406 of the Central Valley Project Improvement Act (P.L.
102-575), in accordance with subdivisions (b) and (c).
(b) Funds appropriated pursuant to subdivision (a) shall be allocated to the Department
offish and Game or the department for expenditure pursuant to the terms of the cast.sharing
agreement between the United States and the State of California as required by subsection (h)
of Section 3406 of the Central Valley Project Improvement Act, or any agreements
supplemental thereto, for the payment of costs allocated to the state for the protection and
restoration offish and wildlife resources and habitat pursuant to Section 3406 of that federal
act.
(c) The mone.v in the subaccount may be ased for both of the following purposes:
(1) To pay for the state’s cost-sharing allocations or for actions directl.v undertaken by the
department or the Department of Fish and Game relating to fish and wildlife restar~tion
actions required by Section 3406 of the Central Valley Project Improvement Act (P.L.
102.575). For purposes of this paragraph, and consistent with Attachment C of the
"Principles for Agreement on Bay-Delta Standards Between the State of California and the
Federal Government, "dated December 15, 1994, preference for the screening of diversions
shall be given to projects, and projects within programs, identified in the Central Vallev
Project Improvement Act (P.L 102-575) for which deadlines have been established by state dr
federal agencies, or by a state or federal court. Any preference established u’nder this
paragraph shall be revised if the deadlines are extended or eliminated.
(2) To pay for administrative costs incurred in coanection with the implementation of this
section by the department and the Department offish and Game related to fish and wildlife
restoration measures undertaken pursuant to Section 3406 of the Central Valley Project
Improvement Act (P.L 102.575), as follows:
(A) Not more than 3 percent of the total amount deposited in the subaccount for the use of
the department may be used to pay the costs incurred in connection with the administration of
this article by the department.
(B) Not more than 3 percent of the total amount deposited in the sabaccount for the use of
the Department offish and Game m~, be used to pay the costs incurred in connection with
the atbninistration of this article ~. the Department of Fish and Game.
Article 3. Bay-Delta A’greement Program
78535. (a) There is hereby created in the account the Bay.Delta Agreement Subaccount.
(b) For the purposes of this article, "subaccount" means the Bay-Delta Agreement
Sabaccount created by subdivision (a).
78535.5. The sum of six~., million dollars 1560,000,000) is hereby transferred from the
account to the subaccount for the purpose of implementing this article.
78536. Notwithstanding Section 13340 of the Government Code, the money in the
subaccount is hereby continuously appropriated, without regard to fiscal years, to the
Resources Agency; to pay for the administration of this article and for non-flow-related
projects called for in the Water Quality Control Plan for the Bay-Delta, adopted by the board
in Resolution No. 95-24, and as it may be amended. Those projects are ~own as "Categou"
111" activities called for in the "Principles for Agreement on Bay-Delta Standards Between
the State of California and the Federal Government," dated December 15, 1994.
78536.5. The Secretary of the Resources Ageno. shall caro. out this article in accordance
with procedures established by CALFED for the purposes of undertaking Categoo’ HI:
activities and other ecosystem restoration programs until the Legislature, by statute,
authorizes another entity t~tat is recommended by CALFED, to carO" out this article.
78537. The state shall, to the greatest extent possible, secure federal and nonfederal
matching funds to implement this article.
78538. Not more than 3 percent of the total amount deposited in the subaccount may be
used to p@, the costs incurred in connection with the administration of this article.
Article 4. Delta Levee Rehabilitation Program
78540. (a) There is hereby created in the account the Delta Levee Rehabilitation
Subaccount.
(b) For the purposes of this article, "subaccount" means the Delta Levee Rehabilitation
Sabaccoant created by subdivision (a).
, 78540.5. The sum of twenty-five million dollars ($25,000,000) is hereby transferred from
the account to the subaccount for the purpose of implementing this article.
78541. Notwithstanding Section 13340 of the Government Code, the money in the
subaccount is hereby continuously appropriated, without regard to fiscal years, to the
department, as follows:
(a) Tweh,e million five hundred thousand dollars ($12,500,O00) for local assistance under
the delta levee maintenance subventions program under Part 9 (commencing with Section
12980) of Division 6, and for the administration of that assistance.
(b). Twelve million five hundred thousand dollars ($12,500,000)for special flo6d
protection projects under Chapter 2 (commencing with Section 12310) of Part 4.8 of Division
6, subsidence studies and monitoring, and for the administration of this subdivision.
Allocation of these funds shall b~ for fload protection projects on Bethel, Bradford, Holland,Hotchkiss, ,terse); Sherman, Twitchell, and Webb Islands, aad at other locations in the delta.
78542. The expenditure of funds under this article is subject to Chapter 1.5 (commencing
with Section 12306) of Part 4.8 of Division 6.
78543. (a) No expenditure of funds may be made under this article unless the
Department of Fish and Game makes a written determination as part of its review and
approval of a plan or project pursuant to Section 12314 or 12987 that the proposed
79
expenditures are consistent with a net long-term habitat improvemenl program, and have a
net benefit for aquatic species in the delta. The Department offish and Game shall make its
determination in a reasonable and timely manner foliowing the submission of the project or
plan to that department. For the purposes of this article, an expenditure may include more
than one levee project or plan.
(b) The memorandum of understanding entered into pursuant to Section 12307 shall be
amended to require, in accordance with this section, that projects or plans be consistent with
a net long-term habitat improvement program in the delta. The memorandum of
"understanding shall define the term "net long-term habitat improvement program in the
delta "for purposes of this section. The memorandum of understanding in effect prior to the
amendment required by this section shall continue to apply to levee projects and plans until
the memorandum of anderstanding is amended.
78544. For the purposes of this article, a levee project includes levee improvements and
related habitat improvements which may be undertaken in the delta at a location other than
the location of that levee improvement.
78545. The expenditi, re of funds under this article shall result in levee rehabilitation
improvement projects that, to the greatest extent possible, are consistent with the CALFED
program.
Article 5. South Delta Barriers Program
78550, (a) There is hereby created in the account the South Delta Barriers Subaccount.
(b) For the purposes of this article, "subaccount" means the South Delta BarriersSubaccount created by subdivision ( a ).
78550.5. The sum often million dollars ($10,000,000) is hereby transferred from the
account to the subaccount for the purpose of implementing this article.
78551. (a) Notwithstanding Section 13340 of the Government Code, the money in the
subaccount is hereby continuously appropriated, without regard to fiscal :;ears, to the
department, to pay the costs incurred by the department that are not attributable to the State
Water Project’s or the Central Valley Project’s share of costs for the South Delta Barriers
Program, and for the administration of this article.
(b) The costs identified in subdivision (a) include costs incurred for the purpose of
mitigating non.State Water Project or non-Central Valley Project impacts and for the purpose
of environmental enhancement in the delta.
(c) No funds shall be expended under this article unless the Department ofFish and Game
determines, in writing, that a net habitat benefit will result.
78552. Not more than 3 percent of the total amount deposited in the subaccount may be
used to p@’ the costs incurred in connection with the administration of this article.
Article 6. Delta Recreation Program
78560. (a) There is hereby created in the account the Delta Recreation Subaccount.
{b) For the purposes of this article, "’subaccount"means the Delta Recreation Subaccount
created by subdivision (a).
78560.5. The sum of two million dollars ($2,000,000) is hereby transferred from the
account to the subaccount for the purposes of implementing this article.
78562. Notwithstanding Section 13340 of the Government Code, the money in the
subaccount is hereby continuousl.v appropriated, without regard to fiscal ~,ears, to the
Department of Parks and Recreation to provide for, and improve, public access to, and to
maximize public recreational opportunities on, the lands and waters of the delta in a way that
is consistent with existing uses of the islands, sound resource conservation principles, and
appropriate protection for the rights of private property owners, and for the administration of
this article. ~
78564. The Department of Parka and Recreation may use funds in the subaccount for
grants to local public agencies and nonprofit organizations for the purposes of acquiring fee
title, development rights, easements, or other interests in land located in the delta to provide
for, or improve, public access in the delta. The amount of any grant and the degree of local
participation shall be determined by the fiscal resources of the grant applicant, the degree of
public benefit provided by the proposed project, and other factors prescribed by the
Department of Parks and Recreation.
78565. Any acquisition pursuant to this article shall be from willing sellers.
78566. The Department of Par’l~ and Recreation ma)’ adopt regulations to carry out this
article.
78568. Not more than 3 percent of the total amount deposited in the subaccount may be
used to pay the costs incurred i~ connection with the administration of this article.
Article 7. CALFED Bay-Deha Program
78570. (a) There is hereby created in the account the CALFED Subaccount.
(b) For the purposes of this article, "subaccount"means the CALFED Subaccount created
by subdivision (a).
78571. The sum of three million dollars ($3,000,000) is hereby transferred from the
account to the subaccount for the purposes of Section 78572.
78572. Notwithstanding Section 13340 of the Government Code, the money in the
subaccount is continuously appropriated, without regard to fiscal years, to the department,
for the purpose of paying for the state’s share of costs incurred in connection with the.
CALFED Bay-Delta Program.
Cnacr~ 5. Ct~" War~ ~’o V~r~ Rzcrcu,~ P~
Article 1. General Provisions
78601. Unless the context otherwise requires, as used in this chapter, "account" means
the Clean Water and Water Reo’cling Account created by Section 78602.
78602. The Clean Water and Water Reo’cling Account is hereby created in the fund. The
sum of two hundred thirty-five million dollars ($235,000,000) is hereb), transferred from the
fund to the account.
78603. The board ma)" adopt regulations to carry out Article 2 (commencing with Section
78610), Article 3 (commencing with Section 78620), Sections 78640 to 78644, inclusive,
Article 5 (commencing with Section 78647), and Article 6 (commencing with Section 78648).
78603.5. The Department of Food and Agriculture may adopt regulations to carry out
Section 78645.
Article 2. Clean Water Loans and Grants
78610. Unless the context otherwise requires, the following definitions govern the
construction of this article:
(a) "’Eligible project" means a project or activity described in paragraph (1), (2). (3), or
(4) of subdivision (a) of Section 13480 that is all of the following:
(1) NecessaO, to prevent water pollution or to reclaim water
(2) E.ligible for funds from the State Revoh’ing Fund Loan Account or federal assistance.
(3) Certified by the board as entitled to priority over other eligible projects. "
(4) Complies with applicable water qualio’ standards, policies, and plans.
(b) "Federal assistance" means money provided to a municipality, either directh’ or
through allocation by the state, from the federal government to construct eligible projects
pursuant to the Clean Water Act.
(c) "Municipality" has the same meaning as defined in the Clean Water Act and also
includes the state or any agenc3; department, or political subdivision thereof and applicants
eligible for assistance under Sections 1329 and 1330 of T~tle 33 of the United States Code.
(d) "Small community" means a municipality with a population of 5,000 persons or less.
or a reasonably isolated and divisible segment of a larger municipality encompassing 5,000
persons or less, with a financial hardship as determined by the board.
(e) "Treatment works" has the same meaning as defined in the Clean Water Act.
78611. There is hereby created in the account both of the following subaccounts:
(a) The State Revolving Fund Loan Subaccount.
(b) The Small Communities Grant Subaccount.
78612. The board too); by contract or otherwise, undertake plans, surveys, research,
development, and studies necessary or desirable to carry out this article, and moy prepare
recommendations with regard thereto, including the preparation of comprehensive statewide
or areawide studies and reports on the collection, treatment, and disposal of waste under a
comprehensive cooperative plan.
78612.5. Not more than 3 percent of the total amount deposited in the State Revolving
Fund Loan Subaccount and the Small Communities Grant Subaccount ~ be used for both
of the following purposes:
(a) To pay the costs incurred in connection with the administration of this article.
(b) For the purposes of Section 78612.
78613. The following amounts are hereby transferred from the account to the State
Revolving Fund Loan Subaccount and the Small Communities Grant Subaccount and,
notwithstanding Section 13340 of the Government Code, continuously appropriated, without
regard to fiscal years, from the subaccounts to the board:
(a) Eighty million dollars ($80,000,000) to the State Revolving Fund Loan Subaccount for
the purposes of providing loans pursuant to the Clean Water Act, to aid in the construction or
implementation of eligible projects, and for the purposes described in Section 78612.
(b) Thirty million dollars ($30,000,000) to the Stool( Communities Grant Subaccount for
grants by the board to small commanities for construction of eligible treatment wor~. If in
the judgment of the board, the money in the Small Communities Grant Subaccount will not be
expended within a reasonable time, the board may transfer the money to the State Revol~,ing
Fund Loan Subaccount to be used for any of the purposes specified in subdivision (a).
(c) The board may transfer unallocated funds from the State Revolving Fund Loan
Subaccount to the State Water Pollution Control Revolving Fund for the purposes of meeting
federal requirements for state motching funds to provide loans in accordance with the Clean
Water Act.
78614. For purposes of subdivision (a) of Section 78613, the board moy make loans to
municipalities, pursuant to contract, to aid in the construbtion or implementation of eligible
projects.
78615. For purposes of subdivision (b) of Section 78613, the board may make grants to
small communities so that any combined federal and state grant does not exceed 9T/: percent
of the eligible cost of necessar)" studies, planning, design, and construction of the eligible
project determined in accordance with applicable state law and regulations. The total amount
of grants made pursuant to subdivision (b) of Section 78613, for any single project, moy not
exceed three millian five hundred thousand dollars ($3,500,000).
78616. An)" contract entered into pursuant to this article for loans or grants may include
provisions determined by the board, and shall include all of the following provisions:
(a) An estimate of the reasonable cost of the project.
(b) A description of the type of assistance being offered.
(c) An agreement by the board to pay to the entity; during the progress of the project or
following completion, as agreed upon by the parties, the amount specified in the contract
determined pursuant to applicable federal and state laws and regulations.
(d) An agreement by the public entity to proceed expeditiously with, and complete, the
project, commence operation of the project upon completion, properly operate and maintain
the project in accordance with applicable provisions of lan; and provide for payment of the
public entity’s share of the cost of the project.
78617. All contracts entered into pursuant to this article for loans or grants are also
subject to both of the following requirements:
(a) Public entities seeking assistance shall demonstrate, to the satisfaction of the board,
that an adequate opportunity for public participation regarding the project has been
provided.
(b) Any election held with respect to the project shall include the voters of the entire
municipality unless the manicipality proposes to accept the assistance on behalf of a specified
portion or portions of the municipality,; in which case the election shall be held in that portion
or portions of the municipality onl.~:
78618. An)’ loan made pursuant to subdivision (a) of Section 78613 shall be for a period
not to exceed 20 years, with an interest rate set in accordance with Section 13480.
78619. All principal and interest payments received pursuant to loan contracts entered
into pursuant to this article shall be deposited in the State Revolving Fund Loan Subaccoant
for additional loans under subdivision (a) of Section 78613, and shall not be transferred to
the General Fund.
Article 3. Water Reg.’cling Program
78620. Unless the context otherwise requires, the following definitions govern the
construction of this article:
(a) "Eligible reQ’cIing project" means a water reclamation project that meets applicable
80 G96
. .::,n~::~on criteria and water reclamation requirements and that complies with applicable
~:;~ qualt~." standards, policies, and plans.
~ ~, "Subacoaunt" means the Water ReQ’cling Subaccount created by Section 78621.
-6621. (a) (1) There is hereby created in the account the Water Recycling Suhaccount.
,.c .~um of sixo’ million dollars ($60,000,000) is hereby transferred from the account to the
~3account for the purpose of implementing this article.
,2i Al! money repaid to the state pursuant to any contract executed under the Clean Water
~:5. ~ter Reclamation Bond l_aw of 1988 (Chapter 17 (commencing with Section 14050) of
,:~isior. 7) shall be deposited in the subaccount for the purposes of sabdivision (b).
bi Nom’ithstanding Section 13340 of the Govenunent Code, the money in the subaccount
i~ereby continuausly appropriated, without regard to fiscal years, to the board for loans to
:m~ic agencies to construct, operate, and maintain eligible recycling projects, for loans to
¯ ~ in the design and construction of eligible reQ’cling projects, for grants in accordance with
~ c~ior, 78628, and for the purposes described in Section 78629 and subdivision (a) of
:no~ 78630.
76622. The board may enter into contracts to make loans to public agencies for the
::r?oses set forth in this article. Factors to be considered by the board in determining
,~cther to enter into a contract under this article may include, but are not limited to, whether
: .~roject is cost.effective or necessao" to protect water quality.
76623. Any contract for a loan entered into pursuant to Section 78622 may include those
, ~,vtsions determined by the board to be necessao" for purposes of this chapter and shall
.: c,’udc both of the following provisions:
,ci An estimate of the reasonable cost of the eligible re~’cling project.
~b~ An agreement ~’ the public agency to proceed expeditiously with, and complete, the
z zible recycling project, commence operation of the project in accordance with applicable
~9 visions of la~;. and provide for the payment of the public agenQ"s share of the cost of the
Wecz. including the principal of and interest on, the loan.
78624. (a) A contract for a loan may not provide for a moratorium on the payment of the
"mcipal of or interest on, the loan.
~ b ~ Any loan made pursuant to Section 78622 shall be for a period not to exceed 20 years.
! c ) The board may enter into a contract for a loan of up to 100 percent of the total eligible
,st of design and construction of an eligible recycling project.
78625. (a) The board shall establish the interest rate for a loan made pursuant to this
. ";icte at a rate equal to 50 percent of the interest rate paid by the state on the most recent
.~!e of state general obligation bonds, to be computed according to the true interest cost
’:ethod.
(bi If the interest rate so determined is not a multiple of one-tenth of 1 percent, the interest~:e shall be set at the next higher multiple of oneqemh of I percent.
*ct The interest rate set for each contract shall be applied throughout the repayment
~eriod of the contract. There shall be a level annual repa.~Tnent of principal and interest on
iz,~ loans.
78626. (a) All principal and interest payments received pursuant to loan contracts
n:ered into pursuant to this article shall be deposited in the subaccoant for additional loans
;,;der subdivision (b) of Section 78621, and shall not be transferred to the General Fund.
tb.~ The board may transfer any unallocated funds in the subaccount to the Water
~’clamation Account in the 1984 State Clean Water Bond Fund for the purposes set forth in
:-ction 13999.10.
78627. All interest earned by assets in the subaccoant shall be deposited in the
7~628. The board may make grants to public agencies for faciliO, planning stndies for
~ter reclamation projects. The amount of the grants may not exceed seventy-five thousand
,liars ($75.000) per stud):
78629. The board ma.~; by contract or otherwise, undertake plans, surveys, research,
cvelopment, and studies necessar3; com,enient, or desirable to cart3.’ out the purposes of this
:,ricle. and may prepare recommendations with regard thereto,’ including the preparation of
,rm~rehensive. statewide or areawide studies and reports on water recycling and the
oiiectton, treatment, disposal, and distribution of wastewater under a comprehensive
~operative plan.
78630. Not more than 3 percent of the total amount deposited in the sabaccount may be
;cd to pay for both of the following purposes:
~ai To pay the costs incurred in connection with the administration of this article.
~i For the purposes of Section 78629.
Article 4. Drainage Management
78640. Unless the context otherwise requires, the following definitions govern the
q:struction of this article:
~ a i 1 I) "’Drainage water management units" means land and facilities for the treatment,
rage. conveyance, reduction, or disposal of agricultural drainage water which, if
;charged untreated, would pollute or threaten to pollute the waters of the state.
2! Drainage water management units shall include one or more of the following:
.4 ~ A surface impoundment that is designed to hold an accumulation of drainage water,
:iuding. but not limited to, holding, storage, settling, and aeration pits, and lagoons. A
;rface impoundment does not include a landfill, a land farm, a pile, an emergency
ntainment dike, tank, injection well. evaporation pond, or percolation pond.
!B) Conveyance facilities to the treatment or storage site, including devices for flow
.’~dation.
C~ Facilities or works to treat agricultural drainage water to remove or substantiall.v
.:uce the level of constituents which pollute or threaten to pollute the waters of the state,
;’fuding. but not limited to, processes utilizing ion exchange, desalting technologies such as
verse osmosis, and biological treatment.
~D~ Facilities or works to reduce the amount of agricultural drainage water discharged.
ciuding, but not limited to, source control projects.
E~ Diked areas or cells that are (i) used for the purpose of water conservation, water
anagement, or environmental mitigation and (ii) located within inland bodies of saline
.:;er in Imperial and Riverside Counties.
3i Any or all of the drainage water management units, including the land under the unit,
.:y consist of separable features, or an appropriate share of multipurpose features, of a
"~cr system, or both.
(4) Drainage water management units do not include facilities for the direct discharge of
agricultural drainage water to the bay.deha or Pacific Ocean.
(b) "Eocal agency" or "agency" means any cit3. ; count3; district, joint powers authorio; or
other political subdivision of the state involved with water management.
(c) "Project" means drainage water management units.
[d) "Subaccount" means the Drainage Management Subaccount created by Section
78641.
78641. There is hereby created in the account the Drainage Management Subaccount.
The sam of thirty million dollars ($30,000,000) is hereby transferred from the account to the
subaccoant for the purpose of implementing this article.
78642. in) Nom’ithstanding Section 13340 of the Government Code, the sum of
tweno’-seven million five hundred thousand dollars ($27,500,000) in the suhaccount is hereby
continuously appropriated, without regard to fiscal years, to the board, for loans to local
agencies to aid in the construction of drainage water management units ~or the treatment,
storage, or disposal of agricultural drainage water, and for the purposes ddscribed in Section
78644. Priority shall be given to funding source reduction projects and programs.
(b) Nom’ithstanding Section 13340 of the Government Code, the sum of ~,o million five
hundred thousand dollars ($2,500,000) in the subaccount is hereby continuously
appropriated, without regard to fiscal years, to the board, .for grants to local agencies for tl~e
purpose of providing the nonfederal share of the costs specified in Section 1101 of Public Law
102-575.
78643. (a) The board may loan an agent" up to 100 percent of the total eligible costs of
design and construction of an eligible project.
(b) Any contract for an eligible project entered into pursuant to this article ma.v include
provisions as determined by the board to be necessary and shall include, but not be limited to,
all of the following provisions:
(1) An estimate of the reasonable cost of the eligible project.
(2) An agreement by the agency to do all of the follawing:
(A) Proceed expeditiously with, and complete, the eligible project.
(B) Commence operation of the containment structures or treatment works upon
completion and to properly operate and maintain the works in accordance with applicable
provisions of law.
(C) Provide for payment of the agency’s share of the cost of the project, including
principal and interest on any state loan made pursuant to this article.
(D) If appropriate, apply for, and make reasonable efforts to secure, federal assistance for
the state-assisted project.
(c) All loans made pursuant to this article are subject to all of the following provisions:
(1) Agencies seeking a loan shall demonstrate, to the satisfaction of the board, that an
adequate opportunity for public participation regarding the loan has been provided.
(2) Any election held with respect to the loan shall include the voters of the entire agency
except where the agency proposes to accept the loan on behalf of a specified portion, or
portions, of the agent3’, in which case the election shall be held in that portion or portions of
the agent’?., only,:
(3) Loan contracts may not provide a moratorium on payment of principal or interest.
(4) Loans shall be for a period of not more than 20 years. The interest rote for the loans
shall be set at a rate equal to 50 percent of the interest rate paid by the state on the most
recent sale of state general obligation bonds, to be computed according to the true interest
cost method. If the interest rate so determined is not a multiple of one.tenth of 1 percent, the
interest rate shall be set at the next higher multiple of oae.tenth of I percent. The interest rate
set for each contract shall be applied throughout the repa.,,rnent period of the contract. There
shall be a level annual repayment of principal and interest on loans.
(5) No single project may receive more than five million dollars ($5,000,000) in loan
proceeds from the board under this act and the Water Conservatioa and Water Quality Bond
Law of 1986 (Chapter 6.1 (commencing with Section 13450) of Division 7).
(d) The board may make loans to local agencies, at the interest rates authorized under this
article and under any terms and conditions as may be determined necessary by." the board, for
purposes of financing feasibility studies of projects potentially eligible for funding under this
article. No single project shall lu eligible to receive more than one hundred thousand dollars
($100,000), and not more than 3 percent of the total amount of bonds authorized to be
expended for the purposes of this article may be expended for loans to finance feasibility
studies. A loan for a feasibility study shall not decrease the maximum amount of any other
loan which may be made under this article.
78644. The board may, by contract or otherwise, undertake plans, surveys, research,
development, and studies necessar3; convenient, or desirable to car~’ out subdivision (a) of
Section 78642.
78645. (a) Any unallocated funds remaining in the Agricultural Drainage Water Account
in the 1986 Water Conservation and Water Quali~* Bond Fund on November 6, 1996, shall be
transferred to the subaccount.
(b) Nom’ithstanding Section 13340 of the Government Code, any funds that are
transferred pursuant to subdivision (a) to the subaccount are hereby continuously
appropriated, without regard to fiscal years, to the Department of Food and Agriculture for
programs to develop methods of using drainage water and reducing toxic materials in
drainage water through reuse of the water and the use of the remaining salts. Priority shall be
given to source reduction projects and programs.
78645.5. Not more than 3 percent of the total amount deposited in the subacoaunt for the
use of the board may be used to pay for both of the following purposes:
(a) To pay the costs incurred by the board in connection with the administration of this
article.
(b) For the purposes of Section 78644.
78645.7. Not mare than 3 percent of the total amount deposited in the subaccount for the
use of the Department of Food and Agriculture may be used to pay the costs incurred by that
department in connection with the administration of this article.
Article 5. Delta Tributary Watershed’Program
78647. (a) (I) There is hereby created in the account the Delta Tributary Watershed
Subaccount.
(2) For the purposes of this article, "’suhaccount" means the Delta Tributary Watershed
Subaccount created by paragraph (1).
81
(3i The sum of fifteen million dollars ($15.000.000) is hereby transferred from the account
to the .~ubaccount for the purposes qt" implementing this article.
(b) Notwithstanding Section 13340 of the Government Code, the mono" in the subaccount
is here; continuously appropriated, without regard to fisca! year, to the board for grants for
eligible projects in accordance with this article, and for the administration of this article.
78647.2. (a) The board shall administer a program under which a count)’, or a joint
powers authori~’ in which a count)’ is a participant, may submit an application to the board
for an eligible project requesting financial or technical assistance for the purpose of
developing a voluatary, incentive-based watershed rehabilitation project. The board shall
consult with other federal and state resource agencies, including, but not limited to, the
Department offish and Game and the Department of Forestry and Fire Protection, in the
administration of the program. The Resources Agency shall make a wrinen recommendation
to the board regarding each application. The board shall consider the recommendations of
the Resources Agency and include, when appropriate, the recommendation in the board’s
final decision.
(b) Notwithstanding subdivision (a), if a count).’, or a joint powers authority in which a
count." is a participant, after a request to do so by a la~’al public agency.; declines to submit an
application for an eligible project for a watershed that is all or in pan within the boundaries
of the counb’, a local public agency other than the county or that joint powers agency may
submit an application in accordance with subdivision (a).
78647.4. la) "Eligible project" means a watershed rehabilitation project undertaken on
lands o~7~ed or operated by the federal, state, or a local government, or a private person or
entity within the deha tributary watershed.
(~) For the purposes of this article. "delta tributary watershed" means a watershed which
drains into the delta or the Trini~" River.
78647.5. An eligible project shall include one or more of the following purposes:
(a) A reduction in the presence of contaminants in drinking water by addressing the
origins of the contaminants, including, to the maximum extent practicable, the specific
activities that affect the drinking water supply of a community or communities. A project with
a purpose described in this subdivision shall address contaminants, including those that are
pathogenic organisms, for which a national primary drinking water regulation has been
established, and that are detected in the communi~.’ water ~’stem for which the application is
submitted at levels above the maximum contaminant level or that are detected by adequate
monitoring methods at levelsthat are not reliably and consistently below the maximum
contaminant level.
(b) An increase in the yield of water available from, and water retention capabilities of,
the watershed, including projects to reduce dense forest understory, restore upland meadows,
and repair stream channels.
(c) The improvement, restoration, or enhancement of fisheries habitat, including riparian
habitat, in and along streams and watercourses in the watershed. Projects may address
factors which increase sedimentation in streams and watercourses in the watershed.
(d) The improvement of overall forest health, including the reduction of fuctors which may
contribute to the severit)" of wildfires in the watershed
78647.6. (a) Every project funded under this article shall comply with state and federal
la~; regulations, and policies, and shall not degrade the quality of any waters of the state.
(b) An application submitted to the board under this article shall include all of the
following information:
(!) An identification of any deficiencies in information that may impair the development
or implementation of a project.
(2) A discussion of the efforts undertaken to implement the project and to obtain the
participation of both of the following:
(A) Public agencies with relevant responsibilities in the watershed.
(B) Persons and entities in the watershed who may be affected by recommendations of the
project and whose participation is essential to the success of the project.
(3) Evidence in the form of a statement from a private person or entit)’ that that person or
entio’ consents to the inclusion of private propem., in the project, as appropriate.
(4) A monitoring plan to determine whether project purposes are satisfied.
(5) An outline of the wa.v in which project participants will, during the development and
implementation of the project, identify and take into account any activities being undertaken
by persons or entities in the watershed under federal or state law to rehabilitate the
watershed. A project shall include voluntary and incentive-based strategies for the long.term
rehabilitation of the watershed.
(6) An identification of the technical, financial, or other assistance that the applicant will
request to develop or implement the project.
(7) When feasible, an identification of quantifiable, innovative, and cost-effective methods
for achieving project purposes.
78647.7. An application submitted to the board under Section 78647.6 shall also include
the following information:
(a~ A delineation of the watershed area or areas critical for project purposes using
available hydrogeologic or other pertinent information. If no information is available, the
project shall conduct, to the extent practicable, vulnerability assessments in the watershed
area. including identification of risks to drinking water, a project may use delineations and
vulnerability assessments undertaken to identify groundwater sources under a wellhead
protection program, surface or groundwater sources under a pesticide management plan, or
surface water sources under a state or local watershed initiative, or undertaken in
accordance with Subpart H (commencing with Section 141.70) of Part 141 of Iitle 40 of the
Code of Federal Regulations.
(b) An identification, to the maximum extent practicable, of the origins of drinking water
contaminants that may be addressed by a project, including, to the maximum extent
practicable, a description of the specific activities contributing to the presence of the
contaminants in the watershed.
78647.8. The board m~, approve a grant for an eligible project to develop or implement
a project, not to exceed one million dollars ($1,000.000) per project. A grant shall not exceed
50 percent of the administrative costs incurred, or estimated to be incurred, by the applicant
in connection with carrying out the project.
78647.10. ( a) Afier providing notice and an opportunin.’for public comment with regard
to an application submitted under Section 78647.6, the board shall approve or disapp, rove the
application, in whole or in part, not later than 120 days after the date of submissian of the
application. The board shall prepare, and transmit to the Resources Agenc.v and the
applicant, written findings with regard to the recommendations of the Resources Agency.
(b) The board may approve an application if the application meets the requirements
established under this article. The notice of approval shall inclu~le all of the follawing:
(1) The identification of technical, financial, or other assistance that the board agrees to
provide to assist in the development or implementation of a project.
(2) Any necessary coordination that the board will perform.
(3) A description of any funds available for the purpose of developing and implementing
the project, including any fands in a water pollution control revolving fund established in
connection with Subchapter VI (commencing with Section 1381) of the Clean Water Act.
(4) A description of other technical or financial assistance that is available under state or
federal law for the purpose of developing or implementing the project.
(5) A description of activities that are undertaken, or will be undertaken, to coordinate
federal and state programs which are relevant to the watershed that is the subject of the
application.
(c) If the board disapproves an application submitted under Section 78647.6, the board
shall natify the enti~, submitting the application in writing of the reasons for disapproval. An
application may be resubmitted under either of the following circumstances:
(1) New information becomes available.
(2) Conditions affecting the watershed that is the subject of the application change.
78647.12. The board may adopt regulations to implement this article. The regulations
shall include all of the following:
(a) Criteria for the assessment of watershed areas.
(b) Procedures for the submission of applications.
(c) Procedures for the approval or disapproval of an application submitted under Section
78647.6
78647.14. Grant recipients shall submit a report on completion of the project to the
board indicating whether the purposes of the project have been met. The board shall make the
report available to interested federaL state, and local agencies.
78647.16. Not more than 3 percent of the total amount deposited in the subaccoant niay
be used to pay. the costs incurred in connection with the administration of this article.
Article 6. Seawater lntrasion Control
78648. Unless the context otherwise requires, the following definitions govern the
construction of this article:
(a) (1) "Eligible seawater intrusion control project" means a project which is all of the
following:
(A) biecessary to protect groundwater that is (i) within a basin that is subject to a loca!
groundwater management plan for which a review is completed pursuant to the California
Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public
Resources Code) and (ii) is threatened by seawater intrusion in an area where restrictions 6n
groundwater pumping, a physical solution, or both, are necessary to prevent the destruction
of or irreparable injury to, groundwater quali~.’.
(B) Is cost-effective. In the case of a project to provide a substitute water supply, the
project shall be co,t-effective as compared to the development of other new sources of water
and shall include requirements or measures adequate to ensure that the substitute supply wil!
be used in lieu of previously established extractions or diversions of groundwater.
(C) Complies with applicable water quality standards, policies, and plans.
(2) Eligible projects may include, but are not limited 1o, water conservation, freshwater
well injection, and substitution of groundwater pumping from local surface supplies.
(b) "Local agency’" means any city, count); district, joint powers authorit); or other
political subdivision of the state involved in water management.
(c) "Subaccoant" means the Seawater Intrusion Control Subaccount created by Section
78648.2.
78648.2. (a) There is hereby created in the account the Seawater Intrusion Control
Subaccount. The sum of ten million dollars ($10,000,000) is hereby transferred from the
account to the subaccount for the purposes of implementing this article.
(b) Notwithstanding Section 11340 of the Government Code, the money in the subaccount
is hereby continuously appropriated, without regard to fiscal year, to the board for loans to
local agencies to carry out eligible seawater intrusion control projects and for the purposes
described in this article, and for the administration of this article.
78648.4. The board may enter into contracts to make loans to local agencies for the
purposes set forth in this article.
78648.6. Any contract for a loan entered into pursuant to Section 78648.4 may include
those provisions determined by the board to be necessao" for purposes of this article and
shall include both of the fallowing provisions:
(a) An estimate of the reasonable cost of the eligible seawater intrusion control project.
(b) An agreement by the local agency to proceed expeditioasly with, and complete, the
eligible seawater intrusion control project, commence operation of the project in accordance
with applicable provisions of la~; and provide for the payment of the local agency’s share of
the cost of the project, including the principal of and interest on, the loan.
78648.8. (a) A contract for a loan may not provide for a moratorium on the pa3~nent of
the principal of or interest on, the loan.
(b) An)’ loan made pursuant to Section 78648.4 shall be for a period not to exceed 20
years.
(c) The board may enter into a contract for a loan up to 100 percent of the total eligible
cost of design and construction of an eligible sewn’ater intrusion control project.
78648.10. (a) The board shall establish the interest rate for a loan made pursuant to this
article at a rate equal to 50 percent of the interest rate paid by the state on the most recent
sale of state general obligation bonds, to be computed according to the true interest cost
method.
(b) lf the interest rate so determined is not a multiple of one-tenth of I percent, the interest
rate shall be set at the next higher multiple of one.tenth of I percent.
(c) The interest rate set for each contrac~ shall be applied throughout the repaymem
period of the contract. There shall be a level annual repayment of principal and interest on
the loans.
78648.12. All principal and interest payments received pursuant to loan contracts
entered into pursuant to this article shall be deposited in the subaccount.
82 G96
78648.14. The board nu~’, by contract or otherwise, undertake plans, surveys, research,
developmera, and studies ne~ess~G; com,enient, or desirable to carry out the purposes of this
arz, icle.
78648.16. Not more than 3 percent of the total amounz deposited in the subaccoum ma.’
be used to pay for both of the following:
ia) To pay the costs incurred in connection with the administration of this article.
~b) For the purposes of Section 78648.14.
Article 7. Lake Tahoe Water Quality
78650. Unless the context otherwise requires, as used in this article, "subaccount" means
the Lake Tahoe Water Quality Subaccount created by Section 78650.2.
78650.2. (a) There is hereby created in the account the Lake Tahoe Water Quality
Subaccoant. The sum often million dollars ($10,000,000) is hereby transferred from the
account to the subaccount for the purpose of implementing this article.
¢b) Notwithstanding Section 13340 of the Government Code, the mono" in the subaccount
zs hereby continaously appropriated, without regard to fiscal )’ears, to the California Tahoe
Conservancy for the purposes of directly underta "king, or for grants to public agencies for,
iand acquisition and improvement programs which control soil erosion, restore watersheds,
or preseta,e environmentally sensitive lands and the natural environment, and related
implementation costs, pursuant to Title 7.42 (commencing with Section 66905) of the
Government Code.
78650.4. An), acquisition pursuant to this article shall be from willing sellers.
Cn, trr~ 6. Warr.~ Svwzr Rr_~aztLrrr
Article I. General Provisions
78651. Unless the context otherwise requires, as used in this chapter, "account" means
the Water Supply Reliability Account created by Section 78652.
78652. The Water Supply Reliability Account is hereby created in the fund. The sum of
one hundred seventeen million dollars ($117,000,000) is hereby transferred from the fund to
the account.
Article 2. Feasibility Projects
78655. (a) (1) There is hereby created in the account the Feasibility Projects
Subaccount.
(2) For the purposes of this article, "’subaccount" means the Feasibility Projects
Subaccoant created by paragraph (1).
(b) The sum often million dollars ($10,000,000) is hereby transferred from the account to
the subaccount for the purpose of implementing this article.
78656. Notwithstanding Section 13340 of the Government Code, the money in the
subaccount is hereby continuously appropriated, without regard to fiscal year, to the
department, for the administration of this article and for feasibilio" and environmental
investigations for any of the following projects:
¢a) Off-stream storage upstream of the delta that will provide storage and flood control
benefits in an environmentally sensitive and cost-effective manner.
t b ) Regional water rec)?cling that may.’ include parrnerships or other cooperative efforts
undertaken by water agencies, wastewater dischargers, or other public agencies to collect
and reuse treated municipal wastewater for agricultural, industrial, residential and
em’ironmental purposes.
(c) Water transfer facilities in a county of the third class that would increase capacit)’for
delivering Colorado River water for use in the southern California coastal plain and reduce
demands on the bay.deha.
td) Desalination.
78657. Not mare than 3 percent of the total amount deposited in the subaccount may be
used to pay the costs incurred in connection with the administration of this article.
Article 3. Water Conservation and Groundwater Recharge
78670. Unless the context otherwise requires, the following definitions govern the
construction of this article:
(a) (1) "Groundwater recharge facilities" means land and facilities for artificial
groundwater recharge through methods which include, but are not limited to, percolation
using basins, pits, ditches and furrows, modified streambed, flooding, and well injection and
in-lieu recharge. "Groundwater recharge facilities" also means capital outlay expenditures to
cxpand, renovate, or restructure land and facilities already in use for the purpose of
groundwater recharge and to acquire additional land for retention and detention basins.
(2) Groundwater recharge facilities may include an)" of the following:
~A ) lnstream facilities for regulation of water levels, but not regulation of streamflow to
accomplish diversion from the waterc,,ay.
t B ) Agency-os~ed facilities for extraction.
IC) Cnnve.’unce facilities to the recharge site, including devices for flow regulation and
measurement of recharge waters.
(3~ An)’ part or all of the project facilities, including the land under the facilities, may
consist of the separable features, or an appropriate share of multipurpose features, of a larger
.U’stem. or both.
~b) "In-lieu recharge" means accomplishing increased storage of groundwater by
providing interruptible surface water to a user who relies on groundwater as a primary
supp!3; to accomplish groundwater storage through the direct use of that surface water in lieu
of pumping groundwater. In.lieu recharge is used instead of continuing pumping while
artificially recharging with the interruptible surface waters. However, bond proceeds ma), notbe used to purchase surface water for use in lieu of pumping groundwater.
(ci "Local agency" or "agency" means any cit).; count).; district, joint powers authority, or
other political subdivision of the state involved with water management.
ld) "Project" means both of the following:
!I) Groundwater recharge facilities.
(2) Voluntar); cost-effective capital outla), water conservation programs.
! e ) "’Subaccount" means the Water Consetwation and Groundwater Recharge Subaccount
created by Section 78671.
~ (1) "Voluntar); cost-effective capital outlay water conservation programs"mean those
G96
feasible capital outlay measures to improve the e~ciency of water use through programs, th
benefits of which exceed their costs.
(2) (A) The programs include, but are not limited to. all of the following:(i) The lining or piping of ditches.
(ii) lmproi,ements in water distribution O’stem controls such as automated canal control,
construction of small reservoirs within distribution ~’stems that conserve water that has
already been captured for use, and related physical improvements.(iii) Tailwater pumpback recovery O’stems.
(iv) Major improvements or replacements of distribution systems to reduce leakage.
iv) Capital changes in on-farm irrigation O’stems which improve irrigation e~cienQ’ such
as sprirdder or subsurface drip.
(vi) Capital outlay features of urban water conservation programs identified in the
"Memorandum of Understanding Regarding Urban Water Conservation in California, ’" as
amended on March 9, 1994.
(vii) Conveyance facilities in a county of the third class, including appurtenances,
necessary to implement a long-term conservation program to transfer conserved water from
areas not directly receiving water from the bay-delta lo areas that receive water from the
bay.delta and whose demands on the bay-delta would be reduced as a result of the transfer.
(B) In each case, the department shall determine it" there is a net savings of water as a
result of each proposed project at,d the project is cost-effective.
78671. (a) There is hereby created in the account the Water Conservation and
Groundwater Recharge Subaccount. The sum of thirty million dollars ($30,000,000) is hereb)’
transferred from the account to the subaccount.
(b) Notwithstanding Section 13340 of the Government Code, the sum of twenty-five
million dollars ($25,000,000) is hereby continuously appropriated, without regard to fiscal
years, to the department, for loans to local agencies to aid in the acquisition and construction
of voluntars; cost-effective capital outlay water conservation programs and groundwater
recharge facilities.
78672. Any loan contract entered into pursuant to this article may include provisions
determined to be necessary by the department.
78672.5. (a) Any loan contract concerning an eligible, voluntars; cost-effective capital
outlay water conservation program sholl be supported b); or shall include, all of the
following:
(I) An estimate of the reasonable cost and benefit of the program.
(2) An agreement by the local agency to proceed expeditiously with, and complete, the
program.
(3) A provision that there shall be no moratorium or deferment on payments of prineipal
or b~lerest.
(4) A loan period of not more than 20 years with an interest rate set at a rate equal to 50
percent of the interest rate paid by the state on the most recent sale of state general obligation
bonds, to be computed according to the true interest cost method. If the interest rate so
determined is not a multiple of one-tenth of 1 percent, the interest rate shall be set at the next
higher multiple of one-tenth of I percent. The interest rate set for each contract shall be
applied throughout the repayment period of the contract. There shall be a level annual
repayment of principal and interest on the loans.
(5) A.provision that the project shall not receive an)’ more than five million dollars
($5,000,000) in loan proceeds from the department.
(b) The department shall give preference for loans under this section on the basis of the
cost-effectiveness of the proposed project, with the most cost-effective projects receiving the
highest preference.
78673. (a) Any loan contract concerning an eligible project for groundwater recharge
shall be supported b); or shall include, all of the following:
(I) A finding b)" the dep6rtment that the agen0, has the ability to repay the requested loan,
that the project is economically justified, and that the project isfeasible from an engineering
and hydrogeologic’viewpoint.
(2) An estimate of the reasonable cost and benefit of the project, including a feasibility
report which shall set forth the economic justification and the engineering, hydrogeologic,
and financial feasibility of the project, and shall include explanations of the proposed
facilities and their relation to other water-related facilities in the basin or region.
(3) An agreement by the agency to proceed expeditiously to complete the project in
conformance with the approved plans and specifications and the feasibility report and to
operate and maintain the project properly upon completion throughout the repa)’ment period.
(4) A provision that there shall be no moratorium or deferment on p~’ment of principal or
interest.
(5) A loan period of not mare than 20years with an interest rate set at a rate equal to 50
percent of the interest rate paid b)’ the state on the most recent sale of state general obligation
bonds, to be computed according to the true interest cost method. If the interest rate so
determined is not a multiple of one-tenth of l percent, the interest rate shall be set at the next
higher multiple of one-tenth of I percent. The interest rate set for each contract shall be
applied throughout the repayment period of the contract. There shall be a level annual
repayment of principal and interest on the loans.
(6) A provision that the project shall not receive more than five million dollars
($5.000,000) in loan proceeds from the department.
(b) The department shall give preference under this section to projects for groundwater
recharge that are located in overdrafied groundwater basins and those projects of critical
need, to projects whose feasibility s~udies show the greatest economic justification and the
greatest engineering and hydrogeologic feasibility as determined by the department, and to
projects located in areas which have existing water management programs.
78674. The department may make loans to local agencies, at the interest rates authorized
under this article and under an), terms and conditions as rntO, be determined necessary by the
department, for the purposes of finaneing feasibility studies of projects potentially eligible for
funding under this article. No single project shall be eligible to receive more than one
hundred thousand dollars ($I00,000), and not more than 3 percent of the total amount of
bonds authorized to be expended for purposes of this article may be expended for the
purposes of financing feasibility studies. A loan for a feasibiliry study shall not decrease the
maximum amount of any other loan which may be made under this article.
78675. Any repayments of loans made’pursuant to this article, including interest
payments, and all interest earned on, or accruing to, an)" mane)" in the subaccount, shall be
83
deposited in the subaccount and shall be available for the uses described tn this article.
78675.5. Norn’ithstanding Section 13340 of the Government Code, the sum of five million
dollars ($5.000,000) in the subaccount is hereby’ continuously appropriated, without regard to
fiscal years, to the department for a grant to a local agency for the development of
supplemental water sources, distribution systems, and recharge facilities in a watershed that
is in a state of overdraft and whose ability" to locally finance the facilities has been adversely
affected ~" the Base Closure and Realignment Act of 1990 (P.L 101-510).
78676. Not more than 3 percent of the total amount deposited in the subaccount may be
used to pay the costs incurred in connection with the administration of this article.
Article 4. Local Projects
78680. (a) (1) There is hereby created in the account the Local Projects Subaccount.
(2) For the purposes of this article "subaccount" means the Local Projects Subaccount
created by paragraph (1).
(3) The sum of twenty.five million dollars ($25,000,000) is hereby transferred from the
account to the subaccoant for the purposes of implementing this article.
(by Notwithstanding Section 13340 of the Government Code, the money in the subaccount
is hereby continuously appropriated, without regard to fiscal years, to the department, for
grants and loans in accordance with this article, and for the administration of this article.
78680.2. It is the intent of this article to finanoe a program ta further the development,
control, and conservation of the water resources of the state by’ assisting public agencies in
the construction of eligible projects undertaken to meet local requirements in which there is a
statewide interest.
78680.4. The following definitions govern the construction of this article:
(a) "Feasibili~ study"means a report on the feasibility, of a project, dam, or reservoir. A
feasibility study may include an environmental impact report prepared pursuant to Division
13 (commencing with Section 21000) of the Public Resources Code.
(by "Project" means any of the following:
(l) The construction of a conveyance facility’, pumping facility, groundwater extraction
facility; clear or ranney well, or facili~." for diversion from existing storage or conveyance
facilities undertaken by a public agency for the diversion, storage, or distribution of water
primarily for domestic, municipal, agricultural, industrial, recreation, or fish and wildlife
mitigation and enhancement purposes.
(2) Fish and wildlife mitigation and enhancement measures undertaken by a public
agency; including the acquisitiot~ of lands which may be necessary for the mitigation of
significant impact on fish and wildlife resources resulting from the implementation of a
project undertaken pursuant to paragraph (1).
(c) "Public agency" means any cir.’, count; cir. and count)’, special district or other
political subdivision of the state, incluzhng a joint powers enti~, created pursuant to Chapter
5 (commencing with Section 6500) of Division 7 of ~Ttle I of the Government Code, in a
count., of the 22nd class or an)" count" having a smaller population than a county of the 22nd
class on the date on which this division becomes effective.
78680.6. The department shall carry out this article and shall give preference to projects
undertaken to develap new water supplies and to mitigate significant environmental impacts
resulting from those projects.
78680.8. Applications for grants or loans for financia~ assistance under this article shall
be made to the department in the form and with those supporting materials that are
prescribed by the department.
78680.10. (a) The department may, make grants to public agencies for feasibility studies.
(by The amount of the grants may, not exceed five hundred thousand dollars ($500,000).
78680.12. (a) The department m~" make loans to public agencies for projects. Loans for
a single project may not exceedfive million dollars ($5,000,000).
(by All loan applications shall include information relating t6 the public necessity of the
project, the urgency of need, the engineering feasibili~’, the economic justification, and the
financial feasibili~’ of the project, as well as other information that the department may,
require.
(c) All loans made pursuant to this section are subject to all of the following requirements:
(1) Public agencies requesting a loan shall demonstrate, to the satisfaction of the
department, that an adequate opportuni~’ for public participation regarding the loan has
been provided.
(2) Any election held with respect to the loan shall include the voters of the entire agenoy
except where the agency" proposes to accept the loan on behalf of a specified portion, or
portions, of the agency, in which case the election shall be held only’ in that portion or
portions of the agenQ:
(3) Loan contracts may not provide for a moratorium on payrnent of principal or interest.
(4) Loans shall be for a period of up to 20 years. The interest rate for the loans shall be
set at a rate of equal to 50 percent of the interest rate paid by the state on the most recent sale
of state general obligation bonds, to be computed according to the true interest cost method.
If the interest rate so determined is not a multiple of one.tenth of I percent, the interest rate
shall be set at the next higher multiple of one-tenth of I percent. The interest rate set for each
contract shall be applied throughout the contract’s repayment period. There shall be a level
annual repayment of principal and the interest on the loans.
78680.14. (a) The department may also make loans to public agencies for the
acquisition of interest in lands that are necessary for the construction, operation, or
maintenance of a project.
(by Loans granted pursuant to this section shall be subject to all of the following
conditions:
(I) The loan may, be made for all or an)’ part of the costs of acquiring interests in lands for
a project that has been identified as the preferred alternative in an environmental impact
report or an environmental impact statement, and the lands may. become unavailable to the
public agency for the purposes of developing that project.
(2) The loans shall not exceed one million dollars ($1,000,O00) for each acquisition under
this section.
(3) Each loan granted pursuant to this section is subject to subdivision (c) of Section
78680.12.
78680.16. Each contract which the department enters into for a loan pursuant to Section
78680.14 shall require the sale of the interests in lands that are acquired with the loan funds
i~( in the department’s determination, the construction of the project has not commenced
within a period of m,o years from the date of the first disbursement of loan funds under the
contract or within any extension of such period that is granted by the department. In that
event, the contract shall require that the interests in lands be offered for sale within si~
months from the expiration of the two-year period, or any" extension thereof, and shall require
that the proceeds of the sale be applied toward the rep#~nent of the principal amount of the
loan and toward the payment of the accrued interest thereon. Any remaining proceeds, after
deducting the administrative costs of the public ageney identified in connection with the
purchase and sale of the interests in lands, shall be repaid to the department.
78680.18. Notwithstanding any, provision of la~; any land acquired with the use of loan
funds made available pursuant to Section 78680.14, that is located outside the boundaries of
the public agency acquiring the land and which was subject to taxation at the time of
acquisition thereof, shall remain subject to taxation.
78680.20. (a) The department may adopt regulations to car~" out this article.
Notwithstanding any provi.~ions of la~; regulations adopted by the department pursuant to
Chapter 2.3 (commencing with Section 450.1) of Divisian 2 of Tttle 23 of the California Code
"of Regulations that are in effect on November 6, 1996, may be used to carry out this article.
(by Not more than 3 l~ercent of the total amount deposited in the subaccount may. be used
to pay’ the costs incurred in connection with the administration of this article.
Article 5. Sacramento Valley Water Management and Habitat Protection Measures
78681. (a) There is hereby created in the account the Sacramento !/hlley Water
Management and Habitat Protection Subaccount.
(by For the purposes of this article, "subaccount" means the Sacramento Valley Water
Management and Habitat Protection Subaccount created by’ subdivision (a).
78681.2. The sum of twenty.five million dollars ($25,000,000) is here; transferred from
the account to the subaccount for the purpose of implementing this article.
78681.4. Notwithstanding Section 13340 of the Government Code, the money in the
subaccount is hereby’ continuously appropriated, without regard to fiscal years, to the
department, for programs or projects in the Sacramento Vallo’ to assist in the implementation"
of the Water Quali~. Control Plan for the Bay’-Deha adopted by the board in Resolution No.
95-24 on May 22, 1995, and as it may be amended.
78681.8. The board shall provide adequate public review for proposed programs or
projects and shall determine that those programs or projects are consistent with the
requirements of Section 78681.4.
78681.9. Only the programs or projects that are not the obligation of the federal Central
Valley Project or the State Water Project may be.funded under this article.
78681.10. Not more than 3 percent of the total amount deposited in the subaccount for
the use of the department may be used to pay the costs incurred in connection with the
administration of this article by, the department.
Article 6. River Parkwa.v Program
78682. (a) (1) There is hereby created in the account the River Parkway Subaccount.
(2) For the purposes of this article, "’subaccount" means the River Parkway Subacoaunt
created by paragraph (I).
(by The sum of twenty.seven million dollars ($27,000,000) is hereby transferred.from the
account to the subaccount for the purpose of implementing this article.
78682.2. The money, in the subaccount shall be made available, upon appropriation by
the Legislature, for the acquisition and restoration of riparian habitat, riverine aquatic
habitat, and other lands in close proximity" to rivers and streams and for river and stream trail
projects undertaken in accordance with any’ of the following provisions:
(a) Chapter 4 (commencing with Section 1300) and Chapter 4.1 (commencing with
Section 1385) of Division 2 of the Fish and Game Code.
(by Chapter 5 (commencing with Section 31200), Chapter 6 (commencing with Section
31251), and Chapter 9 (commencing with Section 31400), of Division 21 of the Public
Resources Code.
(c) Division 22.5 (commencing with Section 32500) of the Public Resources Code.
(d) Urban river park acquisition and restoration projects undertaken pursuant to Division
23 (commencing with Section 33000) of the Public Resources Code.
(e) River parkway projects undertaken ~" a state agency, city, county; ci~ and count.; or
pursuant to a joint powers agreement between two or mare of these entities.
78682.4. At least 50percent of the funds in the subaccount shall be used for prajects that
are located in, or in close proximity to, major metropolitan areas.
78682.6. Not more than 3 percent of the total amount deposited in the subaccount may be
used to pay.’ the costs incurred in connection with the administration of this article.
Cnat,~ 7. CALFED BAr-D~ra Ecosrsr~ R~sro~o,~.
78684. Unless the context otherc,’ise requires, all of the following definitions govern the
construction of this chapter.
(a) "Account" means the Bay-Delta Eco~stem Restoration Account created by Section
78684.6.
(by "Bay-delta ecosystem" means the bay.delta and its tributaQ" watersheds.
(c) "CALFED Bay-Delta Program"or "program"means the undertaking by’ CALFED to
develop, by’ means of the programmatic ElS/ElR, a preferred alternative of programs, actions,
projects, and related activities which will provide solutions to identified problem areas related
to the bay-delta eco.system,
(d) (1) "’Eligible project’" means a project or program, or an element of a project or
program, identified in the final programmatic EIS/EIR, that is intended to improve and
increase aquatic and terrestrial habitats and improve ecological functions in the bay-delta
ecosystem.
(2) Eligible projects ~ include, but are not limited to, projects or programs with an)’ of
the following purposes:
(A ) The protection and enhancement of existing habitat.
(By The restoration of tidal, shallow water, riparian, riverine, wetlands, and other
habitats.
(C)The expansion of wetlands protection prdgrams.
(D)The acquisition of water for instream flow improvements.
(E)Improved habitat management.
(F)Improved management of introduced species.
84 G96
¢G) Improved fish protection and management.
~3) Eligible projects shall not include an3 of the following:
tA) Any water conve)’ance facilities.
(B) An)’ component of the CALFED Bay-Delta Program that is not identified in the final
programmatic E1S/EIR as a component of the ecosystem restoration element.
rCI Any programs or projects undertaken to offset or avoid adverse environmental
conditions which the final programmatic EIS/EIR determines would be caused by the
construction, operation, or implementation of any element of the CALFED Bay.Delta
Program other than the ecosystem restoration element.
(e) "Programmatic EIS/EIR" means the programmatic environmental impact
statement/environmental impact report that is prepared by CALFED for the CALFED
Bay-Delta Program.
"78684.2. The Legislature hereby fiuds and declares all of the following:
(a) CALFED is in the process of preparing a programmatic EIS/EIR for a long.term
comprehensive plan that will resolve problems related to ecosystem restoration, water qualit);
water supplies, and water management for beneficial uses of the bay.delta ecoD’stem, and
~3’stem integrit)’.
(b) The CALFED Bay.Delta Program, to the extent that it relates to restoration in the
bay-delta eco~’stem, is of statewide and national importance, The state shouid participate in
the fitnding of eligible projects as a part of its ongoing program to improve em’ironmental
conditions in the bay.delta ecosystem,
~c) The programmatic EIS/EIR will include a schedule for funding and implementing all
elements of the long-term comprehensive plan.
(d) The CALFED Bay-Delta Program elements will achieve balanced solutions in all
identified problem areas, including the ecosystem, water suppl); water quality, and ~3’stem
integrity.
78684.4. This chapter does not authorize implementation of the CALFED Bay-Delta
Program or any element of the program. The implementation of the CALFED Bay.Delta
Program, or any element of the program, shall only be undertaken pursuant to authority
provided by law other than this dMsion.
78684.6. {a) The Bay-Delta Ecosystem Restoration Account is hereby created in the.fund
for the purpose of funding eligible projects. ~e sum of three hundred ninety million dollars
($390,000,000) is hereby transferred from the fund to the account.
(b) Notwithstanding Section 13340 of the Government Code, the mon0’ in the account is
hereby continuously appropriated, without regard to fiscal years, to the Resources Agency. for
the purposes set forth in this chapter, and for the administration of this chapter.
78684.8. The Secretary of the Resources AgenO" shall carry out this chapter in
accordance with procedures established by CALFED for the purposes of ecasystem
restoration until the Legislature, by statute, authorizes another emit); that is recommended byCALFED, to carry out this chapter.
78684.10, No funds in the account may be expended until all of the following conditions
have been met:
(a) The final programmatic EISIEIR has been certified by the state lead agency and a
notice of determination has been issued as required by Division 13 (coramencing with Section
2 I000) of the Public Resources Code.
(b) The identical final programmatic EISZEIR has been filed by the federal lead agencies
with the Environmental Protection Agency, the required notice has been published in the
Federal Register, and there has been federal approval of the identical program approved by
the state.
(c) A cost-sharing agreement has been entered into by the State of California and the
United States, pursuant to which the United States agrees to share in the costs of eligible
projects.
78684.12. Due to the importance of issuing permits and otherwise expediting all
elements of the CALFED Bay.-Delta Program in a timely and balanced manner, the following
procedures apply to the use of funds authorized b.v this chapter: .
(a) After the requirements set forth in Section 78684.10 are met, funds in the account shall
become m,ailable for use in accordance with the schedale for eligible projects set forth in the
final programmatic EIS/EIR, unless and until the Secretat)’ of the Resources Agency
determines that the schedule established in the final programmatic EISIEIR has not been
substantially adhered to.
(b) Prior to November 15 of each year, the Secretary of the Resources Agency, in
consultation with state and federal CALLED representatives and other interested persons and
agencies, shall review adherence to the schedule.
(c) The absence of funding from nonfederal or nonstate sources shall not be a basis for a
determination that the schedule has not been adhered to.
(d) If at the conclusion of each annual review, the Secretary of the Resources Agent7,.’
determines that the schedule established in the final programmatic EIS/EIR, or a rei’ised
schedule prepared pursuant to this subdMsion, has not been substantially adhered to, the
secretary, afier notice to, and consultation with, state and federal CALFED representatives
and other interested persons and agencies, shall prepare a revised schedule that ensures that
balanced solutions in all identified problem areas, including ecosystem restoration, water
suppl); water qualiq, and O’stem integrity are achieved, consistent with the intent of the final
programmatic EIMEIR. Funds shall be available for expend#ure unless a revised schedule
has not been developed within six months from the date on which the secretary determines
that the prior schedule has not been substantially adhered to. Upon the preparation of any
revised schedule under this subdivision, funds shall be expended in accordance with that
revised schedule.
(e) Specific project and program decisions involving the expenditure of funds in the
account shall be made in accordance with the procedures established by CALFED for the
ecoD’stem restoration program.
78684.13. On or before December 15 of ench year, the Secretary of the Resouroes Agency
shall submit an annual report to the Legislatuke that describes the status of the
implementation of all elements of the CALFED Bcty-Delta Program, any determinations made
bv the secretary pursuant to subdivisions (b) and (d) of Section 74684.12, and other
significant scheduling issues. The report also shall include a detailed accounting of
expenditures, descriptions of programs for which expenditures have been made, and a
schedule of amicipated expenditures for the next yearn
the account ma~78684.14. Not more than 3 percent of the total amount deposited in
used to pay the costs incurred in connection with the administration of this chaptern
Cnxm’-rJ¢ 8. FLgOD CO,~Tt~OL ~’D P~’~o.~’ P~
Article I. Definitio~
78686. Unless the conte~ othe~’ise mquires, ~ used in this chaptec "accoum" mea~
the Flood Contml aM Prevention Account created by Section 78686.10.
Article 2. Flood Contml aM P~vention Progr~
78~6.10, ~e Fl~d Cont~l aM P~vention Account is he.by created ~ the ~ ~e
sum of s~’ million ~llars ($~,~,~) is hereby tran~er~d fmm the ~ to the accost.
78~6.12, (a) Nom’it~taMing Section 13340 of the Government Code, the ~n~" in the
account ~ ~" conKnuo~ly appmpdated, wit~ut regaM ta fiscd years, to the depa~nt
for the pu~ases set forth in subdiv~lan
(b) (1) The money in the account shall be used to pay for the state’s share of the
nonfederal costs of fl~d cont~l aM flood p~’enaon projects t~t have been ~opted a~
aut~dzed in ~cor~nce with one or mo~ of the following pmvisio~ of law:
(A) ~e State Water Resou~es ~, of1~5 (C~pter I (co~encing with Section 12570)
a~ C~pter 2 (co~encing with Section 12630) of Pan 6 of Division 6).
(B) The Flood Control ~w of 1946 (Chapter 3 (cot~encing with Section 128~) of Pan
6 of D&~ion 6).
(C) The Califomia Watershed Protection and Flood Prevention ~w (Chapter 4
(co~encing with Section 12850) of Pa~ 6 of DMsion 6).
(2) ~e ~n~’ in the account ~’ on~’ be used to pay for casts for which valid whtten
clai~ We been submitted to the depa~ent on or before June 30, l~.Fu~ which a~
~de available uMer this c~pter shall be allocated on a pro rata basis to pmjects ~ the
Counties of Contra Costa, Fresno, Kern, ~s Angeles, Orange, Riverside, San Be~ino,
S~ Diego, a~ Santa Clara, based on the amount of available ~n~ relative to the total
eligible c~i~.
C~ 9. Mtsc~u~us
78688. Nothing in this dMsion diminishes, or othe~,~e affects, the requi~ments of the
Califom~ Envimn~ntul Q~liO’ Act (Division 13 (commencing with Section 21~) of t~
Public Resou~es Code) or the National Em’ironmenml PoliQ’ Act of 1969 (42 U.S.C Sec.
432! et seq.).
C~ 10. F~s~ P~v~stoxs
786~. ~e pmcee~ of bo~ issued aM soid purs~nt to this division shall be deposited
in the State Tm~ury to the credit of the Safe, Oea~ Reliable ~ter Suppb’ FuM, created by
Section 78505.
78691. Bon~ in the total amount of nine hundred nineo’.five million dollars
($995,~,~), not i~lMing the amount of any ~ing bo~ ~sued in acco~ce with
Section 787~, or ~ ~ch the~of ~ is necessao; ~" be issued ~ sold ta pmvMe a ~M
to he used for ca~g out the pu~ses ~p~ssed in this division aM to he used to ~i~u~e
the General Obligation Bond ~e~e Revolving FuM pursuant to Section 16724.5 of the
Govemment Code. The bonds, when sold, shall be and constitute a valid and binding
obligation of the State of Cal~omi~ aM the ~ll faith ~ cmdit of the State of C~om~
he~’ pledgtd for the p~t~l p~em of bath p~ncipal of a~ intemst
the p~ncipal ~ intemst beco~ due ~ ~ay~le.
78692. (a) ~e bo~ autO.zeal by this division s~B be prepared executed issued,
so~ pa~ ~ mdeemed ~ pmvided in the State General Obligation BoM ~w (C~pter 4
(co~ncing with Scion 16720) of Pan 3 of Div~ion 4 of ~tle 2 of the Govemment CMe),
aM all of the pmv~io~ of t~t Mw apply to the bon~ ~ to this ~vision ~ am hemby
i~o~or~ed in this dMsion ~ though sa fonh in ~l in this dMslan,
(b) For pu~ases of t~ State General Obligation BoM ~a; t~ State Water Resou~es
Con~l Boa~ ~ desig~ted t~ "~a~ "
78693. Solely for t~ pu~ose of autho~sng the iss~e ~ sale, purs~nt to the State
General Obligation BoM ~, of the boMs autho~zed by this divisio~ the Safe, Oean,
Reich& Water Supply Fi~e Co~ittee ~ hem~v created. For pu~oses of this diu~io~
t~ Safe, Cle~ Reli~le Water Supply Fin~e Co~inee is the "co~inee"~
~ed ~ t~ State General Obligation BoM ~ ~e co~inee co~ists of t~ Tm~u~ the
Comm~e~ ~ the Di~ctor ( F~nce, or their designed ~pmsenmtives. A ~jo~O" of the
co~inee ~, act for the co~inee.
7~. ~e co~inee s~ll dete~ine whether or ~t it is necessary or desir~& to ~sue
bo~ aut~zed purser to this division in order to ca~" out the actio~ specked in this
div~ion ~ ~so, the ~unt of~ to be ~sued ~ so~ Successive ~sues ofbo~ ~v
he ~t~zed a~ soM to ca~ out those actio~ pmgmssivel); aM it is not necessary t~t all
of the bo~ aut~ed to be issued be soM ~ ~)’ one time.
78695. ~ s~l ~ collected e~h year aM ~ t~ s~ ~er aM at the sa~ time
~ other state ~en~ is collected in ~ition to the o~i~, ~venues oft~ state, a s~ in
an ~ mqui~d to p~" t~ p~ip~ of ~ ime~st o~ t~ ~ each yearn It is t~ ~’
of all officers c~ed by ~ with ~y duq in ~ga~ to t~ collection of the ~’enue ta do
~ pe(o~ e~h ~ ~’ aa which is ~cessao" to collect t~t ~itio~l su~
78696. Nom, ithsmnding Section 13340 of the Gove~ment Code, there is he.by
appmp~ated~m t~ Gener~ F~ ~ the State Tm~ury, for the pu~ases of th~ div~io~
~ a~t t~t will eq~l the total of the following:
(a) ~ s~ ~n~lly necessary to po" the p~ipal of ~ inte~st
soM pu~ to t~ div~io~ ~ the p~ncipal aM intemst ~come ~e aM payable.
(b) ~ s~ ~ce~ary ta ca~’ out Section 7869Z appmp~ated witho~ ~ga~ to ~cal
)’ears.
7869Z For the pu~oses of carrying out this division, the Director of Finance ~y
~ze the witMrawal ~m t~ General FuM of ~ a~um ~t to acted the ~ of
t~ ~oM bo~ ~,~h ~ ~en autho~zed ~, the co~inee ta ~ soM for t~ pu~se of
ca~ing o~ t~s dMsio~ Any ~unt witMra~ s~ll ~ deposited in the ~ ~y ~"
~ ~ai~b& uMer this section s~ll he returned to t~ General F~, plus ~ ~um
eq~l to the interest that the ~ney wouM ~ve chined in the P~led Money Investment
Account, fmm mo~, mceived fmm the sale of boMs for the pa~ose of carrying out this
divisio~
7869K All mono" de~sited in the ~ t~t is de~ved~m premi~ ~ acc~ed intemst
G96 85
on bonds sold shall be reserved in the fund and shall be available for transfer to the General
Fund as a credit to expenditures for bond interest.
78699. The State Water Resources Control Board may request the Pooled Money
Investment Board to make a loan from the Pooled Money Investment Account in accordance
with Section 16312 of the Governraent Code for the purposes of carrying out this division.
The amount of the request shall not exceed the amount of the unsold bonds which the
committee, by resolution, has authorized to be sold for the purpose of carrying out this
division. The State Water Resources Control Board shall execute any documents required by
the Pooled Money Investment Board to obtain and repay the loan. Any’ amounts loaned shall
-be deposited in the fund to be allocated by the State Water Resources Control Board in
accordance with this division.
78700. The bond.r may be refunded in accordance with Article 6 (co.mmencing 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 La~: Approval by the voters of the state for the
issuance of the bonds described in this division includes the approval of the issuance of any
bonds issued to refund any bonds originally issued or an)’ previousl)" issued refunding bonds.
78701. Notwithstanding any provision of this division or the State General Obligation
Bond La,; if the Treasurer sells bonds pursuant to this division that include a bond counsel
opinio~ to the effect that the interest on the bonds is excluded from gross income for federaltax purpases, subject to designated conditions, the Treasurer may maintain separate accounts
for the investment of bond proceeds and the investment earnings on those proceeds. The
Treasurer may use or direct the use of those proceeds or earnings to pay any rebate, penalty,
or other payment required under federal law or to take an)’ other action with respect to the
investment and use of bond proceeds required or desirable under federal law to maintain the
tax-exempt status of those bonds and to obtain an)’ other advantage under federal law on
behalf of the funds of this state.
78702. The Legislature hereby finds and declares that, inasmuch as the proceeds from the
sale of bonds authorized by this division are not "proceeds of taxes" as that term is used in
Article Xlll B of the California Constitution, the disbursement of these proceeds is not subject
to the limitations imposed by that article.
SEC. 2. Section 13459.5 is added to the Water Code, to read:
13459.5. Unallacated funds remaining in the Agricultural Draioage Water Account in the
1986 Water Conservation and Water Qualit)’ Bond Fund on November 6, 1996, shall be
transferred to the Drainage Management Subaccount, created b~ Section 7864 l, of the CleanWater and Water Reocling Account in the Safe, Clean. Reliabie ~hter Supply Fund for the
purposes of sabdivision (b) of Section 78645.
SEC. 3. Section 14058 of the Water Code is amended to read:14058. (a) The sum of thirty million dollars ($30,000,000) of the money in the fund
shall be deposited in the Water Reclamation Account and, notx~ithstanding Section 13340 of
the Government Code, is hereby continuously appropriated to the board for the purposes of
this section.(b) The board may enter into contracts with local public agencies having authority to
construct’ operate, and maintain water reclamation projects, for loans to aid in the design and
construction of eligible water reclamation projects. The board may’ loan up to 100 percent of
the total eligible cost of design and construction of an eligible reclamation project.
(c) Any contract for an eligible water reclamation project entered into pursuant to this
section may include such provisions as determined by the board and shall include both of the
following provisions:
(1) An estimate of the reasonable cost of the eligible water reclamation project.
(2) An agreement by the local public agency to proceed expeditiously with. and complete.the eligible water reclamation project; commence operation of the project in accordance with
applicable provisions of law. and provide for the payment of the local public agency’s share
of the cost of the project, including principal and interest on any state loan made pursuant to
this section.
(d) Loan contracts may not provide for a moratorium on payments of principal or interest.
(e) Any loans made from the fund may’ be for a period of up to 20 years. The interest rate
for the loans shall be set at a rate equal to 50 percent of the interest rate paid by the state on
the most recent sale of state general obligation bonds, with that rate to be computed according
to the true interest cost method. ~"nen the interest rate so determined, is not a multiple ofone-tenth of I percent, the interest rate shall be set at the next higher multiple of one-tenth of
1 percent.
(I3 All money repaid to the state pursuant to any contract executed under this chapter shall
be deposited in the C=-errer~ F.tm~ ~ ;d,ub,,i~,~i~ii~ ferr the p’aym~ ~ lrhnei~ nmt ~~ bm~fis ~ to be ivsrred trader ~ eh’ngte~. Water Reo’cling Suboccount. created bv
Section 7862L of the Clean Water and Water Recycling Account in the Safe. Clean. Reliab[e
Water Suppl.v Fund, for the purposes set forth in subdivision (b) of Section 78621.
Proposition 205: Text of Proposed Law
This law pm~X’~by Assembly Bill 3116 (Statutes of 1996, Chapter 160) is submit’ted to 4498.4. (a) Moneys in the 1996 Youthful Offender Local Fadlities Bond Fund shall be
the people in accordan~eexwith the provisions of Article XVI of the Constitution.used for the construction, renovation to increase or maintain capacity, remodeling, and.
This proposed law adds-"~tions to the Penal Code; therefore, new provisions proposed to replacement of local facilities for the treatment, rehabilitation, and punishment of juvenile
be added are printed in italic t)."pe,.to indicate that they are new.offenders, and may be used for capital improvements, rehabilitation, or renovatiun performed
by local juvenile communir; service work crew~,-Up to IV,. percent ofmonevs in the fund may
PRQ,~OSED I.,AW b’e used by the Board of Cbrrections for administration of this title. " "
SECTION 1. ~tle 4.95 (commencingX~th Section 4498) is added to Part 3 of the Penal (b) In order to be eligible to receivemono’ for the purposes specified in this section, a
Code. to read:~ " county shall apply in the manner an~ form prescribed by the Board of Corrections.
................ ~ ........ ....(c) Allocation of funds shall bb subject to future appropriation by the Legislature, andTITLE 4. 95._ Y_O UT"HFUL ANEP~ULt c~r r r~v~tzt~ shall be made based on th~ Catlowino er#arin.
L ALFA l "’-~ ....°OC C LITIES BOND A F 1996LOCAL_ FACIlA-f_ IES_ BOND AC’~QxF 1 .(I) County matching funds of at least .5 percent are providea as determined by the
Cttar,’rv.g 1. G~gat. Pgo~7sto.~,~Legislature, ~xcept that this requirement may be modified or waived by the Legislatu’re by
4498. This fitle shall be known and may be cited as the Yo"g.qk.[al and Adalt Offender statute where it d~termines that it is necessarv t~ facilitate the ~xpediti~us and equitabl.e
Local Facilities Bond Act of 1996.-~"construction of local correctional facilities. The’greater the percentage of matching funds that
4498.1. The Legislature finds and declares all of the following: -~a count)’ p.r~vides, the higher priorir; the count)’ shall be given for allocation of moneys.
(a) It is th~s ature to provide fu’ndin~for the ~pit~l const’~tw4ion of local (2) 7~e count); or a group of cou’nties acting together, has developed a plan that id~ntifies
facilines for th~~f juven’ile offenders. ~"~ties do the ¢ou ty contmuum of care model for preventton, interventton, supervision, treatment, and
not have s~t options for providing a continuum of’c’are for j~enile offendeX~hat dg(ention of juvenile offenders. The plan shall identify how the count,, will maximize all
provides for all of the following: ..... ~.../funding sources (local criminal justice, local social services, federal andstate programs, and
(1) Effecting swifter and ~enalties for atff",x,education) for providing appropriate services for juvenile offenders. The plan shall
juvenile offeMers_ . .. - _."~.. /,2~onstrate that the count; has utilized, to the greatest extent practicable, alternatives to
(2) Treatin~nali~ disorders,detb~fl_n. The plan also ~hall identify the capital needs for fully providing the services(3) Requi~ .....out!i.ne _’~ th~ count)., model.
(4) Ensuri~on in "s-ecu’re and nonsecure settings. //._(-d-) .Cou~.’es that have begun to plan, construct, or renovate facilities after January I,(5) Promo~~a e1995, bu_t prio~ the enactment of this title, remain eligible to receive state matching fu’nds.
organizations. - .... ~ --- (e) Counties )hqt contract with private providers for treatment or other services for
(6) Provid~~ a~ ~’giblb’t~? apply for moneys from the fund.
(b) Public ~ (a) Mone).~N~-tl~e 1996 Adult Offender Local Facilities Bond Fund shall be usedthe overn’hel~~-, re)~ayation to increase or maintain capacity, remodeling, and
November 8, 19O4~e of lo_qal facilitt~e~for the treatment, rehabilitation, and punishment of adair
demanding th~e U. p to 1~/~ percent of ~nevs in the fund may be used by the Board of Corrections
passage of P~on o.f’th!s fi~(e."
facilities, creating a serious safety risk./(b) In order to be eligible to rece money for the purposes specified in this section, a
(c) Numerous county adult and fuvenile~h~’cilities throughout California are dilapidated count), shall apply in the manner and fo)~prescribed by the Board of Corrections.
and overcrowded, and "expansion of avallarle bed capacir,, is critical. Capital improvements (c) Allocation of funds shall be subjed~ future appropriation by the Legislature, and~"shall be made based on the following criteria.’,x "
(1) County matching funds of at least 25 p~cent are provided as determined by the
Legislature, except that this requirement may be tr~ified or waived by the Legislatu’re bv
statute where it determines that it is necessary, to fa~o~itate the expeditious and equitable
construction of local correctional facilities. The’gredter t~x.percentage of matching funds that
are necessar,.’ to protect the life and saf.giy of persons confined or employed in these facilities,
and to upgrade health and sanitary..~onditions to re,old threatened closures or the imposition
of court-ordered sanctions. ~/
4498.2. As used in this ti~t~ the fo!lowing terms have the following meanings:
(a) "Committee" meatrf the 1996 Youthful and Adult Offender Local Facilities Bond
Finance Committee cre.a(ed pursuant to Section 4499..
(b) "Fund" meajg the 1996 Youthful Offender Local Facilities Bond Fund or the 1996
Adult Offender/Lo~al Facilities Bond Fund, ~reated pursuant to Section 4498.3.
Cnat,rr~ 2. P~o~
4498.:~/" Of the proceeds of bonds issued and sold pursuant to this title, three hundred fifty
millio, g~dallars ($350,000,000) shall be deposited in the 1996 Youthful Offender Local
Facilities Bond Fund, which is hereby created, and three hundred fifty million dollars
($350,000,000) shall be deposited in the 1996 Adult Offender Local Facilities Bond Fund,
which is hereby created.
a county provides, the higher priority the count~, shall be given for allocation of moneys.
(2) The count); or a group of counties octin~ together, has developed a plan that identifies
the county continuum of care model for prevention, intervention, supervision, treatment, and
incarce.ration of adair offenders. The plan shall identifi.’ how the county will maximize all
funding sources (local criminal justice, local social services, federal and state programs, and
education) for providing appropriate services for. adult offenders. The plan shall demonstrate
that the county has utilized, to the greatest extent practicable, alternatives to jail
incarceration. The plan also shall identify the capital needs for fully providing the services
outlined in the county model
(d) Counties thai have begun to plan, construct, or renovate facilities after January 1,
86 G96
10:31A LWVC
Post-R" Fax Note 7671
Fax #
916-442- 13hi
II
General Election ¯ Tuesday, November5, 1996
Non-partisan Intormallo. on Ballot Measures
I0, SACRA.MENTO~ C..A 95814 -PRESS DATE: Sdpt~mbcr i9, 1996
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PROPOSITION SAFE, CLEAN, RELIABLE
WATER SUPPLY ACT .:
Legislative Bond Act
THE QUESTION
Should the state borrow $995 million through
the sale of general obligation bonds to restore and
improve the Bay-Delta and for wastewater
treatment, water supply and con~rvation, and
local flood control and prevention?
THE SITUATION
The state has previously sold bonds to im-
prove water quality, guarantee water supply, and
provide for fish and wildlife habitat. Almost all
the money from these bond measures has been
spent or is committed to specif!’c projects. The San
Francisco Bay/Sacramento-San Joaquin Delta
provides drinking water for 22 million Califor-
nians. It also provides irrigation for 45% of all the
fruits and vegetables produced in the United
States. The state and federal governments are
working on’a long-term joint project, CALFED, to
manage the Bay-Delta and restore its ecology.
THE PROPOSAL
Proposition 204 will authorize the sale of $995.
million in’-g6~li’g’atlbn"~t~ndsto t’estcrre and
improve the Bay-Delta for wastew~.te~.treatment,
water supply and conservation, plus. p;ovide "
funds for some local flood control an~to pay a
portion of the state’s share of the CALFED
-project.
Fiscal effect: If the bonds are sold the
principal and interest would be $I~I .The
average cost per year would be
SUPPORTERS SAY " .:r:, ’
¯ the environment would be proted~"
¯ Proposition 204 is supported by’,lXi.’!l3’ environ-
mentalists and farmers .
¯ more water would be availableto.l~teet increas-
ing residential and agricultural nee .d~.~ ...
OPPONENTS SAY
¯this:measure is too expensive ~.-......¯government projects have caused finsafe drink-
ing water, pollution and injury to,w~Jdlife¯ CALFED would be allowed to iml~." .rules and
regulations on private property rigti~ ’