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THEPEOPLEOFTHESTATEOFCALIFORNIADOENACTASFOLLOWS:

SECTION1.

Division38(commencingwithSection86000)isaddedtotheWaterCode,toread:

DIVISION38.Statewatersupplyinfrastructure,waterconveyance,ecosystemandwatershedprotectionandrestoration,anddrinkingwaterprotectionactof2018.

CHAPTER1.ShortTitle.

86000.ThisdivisionshallbeknownandmaybecitedastheWaterSupplyandWaterQualityActof2018.

CHAPTER2.FindingsandDeclarations.

86001.Thepeoplefindanddeclarethefollowing:

(a)Inourfrequentlyverydrystate,ourhigh-tech,agriculturalandurbanizedeconomyreliesonanuninterruptedandhigh-qualitywatersupply.Bymakingwaterusemoreefficient,reducingthedemandforwater,providingnewanddiversewatersupplies,improvingthequalityofoursourcewatersheds,andprotectingkeyenvironmentalusesofwater,thismeasurewillassurethattheeconomicandenvironmentalenginesofCaliforniaarenotderailedbyashortageofwater.

(b)California’srecenthistoricdroughtraisesseriousquestionsaboutthelong-termreliabilityofourcurrentwatersupplies.Thedroughtunderscorestheneedtouseourexistingwatersuppliesmoreefficiently,increaseinvestmentsinourwaterinfrastructure,andmoreeffectivelyintegrateourwatersystemfromtheheadwaterstotheenduser.

(c)California’swatersituationrequiresimplementationoftheGovernor’sWaterActionPlantoprovideforthewaterneedsofpeople,agricultureandtheenvironment.Thisdivisionwillhelpprovideamorereliablewatersupplybyreducingwaste,increasingtheamountofwateravailabletomeetourneeds,andimprovingwaterquality.Thisdivisionalsoprovidesadditionalprotectionforourcommunitiesfromfloods.

(d)ThisdivisionwillimplementcosteffectivemethodsofwaterdevelopmentandconservationtomeetCalifornia’spresentandfuturewaterneedsinachangingclimate,includingcaptureofurbandrainageandstormwaterrunoff,groundwaterandbrackishwaterdesalting,groundwaterstorage,waterrecycling,waterconservation,andwatershedmanagement,restoration,enhancementandprotection.

(e)Manyofthewatersupplyandwaterqualityinvestmentsprovidedbythisdivisionwillbematchedbyagenciesandgrantrecipients,morethandoublingtheeffectivenessofthefundingprovided.

(f)Agenciesimplementingthisdivisionwillgivehighprioritytocost-effectiveprojects,andtothemostdurableandmostenvironmentallybeneficialprojects.FundingwillgotoprojectsthatcontributetoimplementationoftheGovernor’sWaterActionPlan,thegoalofwhichistoincreasetheresiliencyoftheCaliforniawatersystemandtheabilityofCaliforniacommunitiestocopewithdroughtconditions.

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(g)EveryCalifornianhasarighttosafe,clean,affordable,andaccessibledrinkingwater.BycomplyingwithSection106.3,agenciesprovidingfundsforsafedrinkingwaterpursuanttothisdivisionwillhelpachievetheintentofthatSection.

(h)Thisdivisionprovidesafairandreasonabledistributionoffundsdirectlyandindirectlybenefittingeveryregionofthestate.

(i)Thisdivisionprovidesshortandlong-termcost-effectiveactionstoaddressthewatershortagescausedbytherecentdrought,andwillhelppreparelocalcommunitiesforfuturedroughts.Droughtsreducewatersuppliesforpeople,agricultureandtheenvironment.Thisdivisionwillhelpmeetthewaterneedsofpeople,agriculture,andtheenvironmentandmakeCaliforniamoreresilientinthefaceofachangingclimate.

(j)Byimprovingthehealthandwaterproductivityofwatersheds,communitieswillbecomemoreself-reliantwithrespecttowatersupply,andlocalenvironmentalqualitywillbeincreased.

(k)Byremovinginvasiveplantssuchasyellowstarthistle,giantreed(Arundodonax)andtamarisk,watersupplywillbeincreasedandhabitatforfishandwildlifewillbeimproved.

(l)Floodingcandevastatecommunitiesandinfrastructure.Wecanmakebetteruseoffloodwatersbycapturingwatersandputtingthemtouseinourcommunities,onourfarms,andbyrecharginggroundwaterbasins.Byprovidingfundstointelligentlymanageourwatershedsandfloodplains,thisdivisionwillalsohelpavoidflooddamage,improvefishandwildlifehabitat,removepollutantsfromourwatersupply,enhancegroundwater,remediateaquifersandimprovetheenvironment.Betterfloodplainmanagementmayallowimprovedoperationofupstreamreservoirsforwatersupplypurposes.

(m)Severefireconditionscanleadtosignificanterosion,reducedwaterqualityandimpactsonwaterinfrastructure.Thisdivisionprovidesfundingtomanageforestsandwatershedstoreducefiredanger,mitigatetheeffectsofwildfiresonwatersupplyandquality,andenhancewatersupplies.

(n)Thisdivisionfundsthefollowingprograms,whichrespondtohumanandenvironmentalwaterneedsinCalifornia:

(1)Improvementofwatersupplyandwaterqualityutilizingcosteffectivemethods,includingwaterconservation,desaltingofgroundwaterandotherinlandsalinewater,stormwatermanagement,wastewaterrecycling,andsimilarwatermanagementmeasures.

(2)Bettermanagementofforestandrangelandwatersheds,suchasthroughtheSierraNevadaWatershedImprovementProgramtoimprovethepattern,quantityandqualityofwaterrunoffandgroundwaterrecharge.Improvingsoilhealthimprovestheabilityofthegroundtobettercontaingroundwaterandmoderatetherateofwaterrunoff.

(3)Bettergroundwatermanagement,includingfasterimplementationoftheSustainableGroundwaterManagementAct,andbetterrecognitionoftheconnectionbetweensurfaceandgroundwater.

(4)Provisionofwaterforfishandwildlife,includingrestorationofthePacificFlywayandmanagementofhabitatinadynamicwaytorespondtochangingenvironmentalconditions.

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(5)Increasedcapacitytoconveywaterresultingingreatergroundwaterrechargeandimprovedconveyanceandutilizationoffloodwatersforuseindroughtyears.

(o)TheStateWaterResourcesControlBoard,theDepartmentofFishandWildlife,andmanyotheragencieshaverecognizedthatprovidingfundingforfishhabitatenhancementisvitaltorestoringnativeCaliforniafishpopulations,andthatrelyingsolelyonflowtorestorethosepopulationswillnotbesufficient.Providingfundingforfishhabitatenhancementisavitalcomplementtoreasonableflowstoprotectfish.

(p)Californiahaslostninety-fivepercent(95%)ofitshistoricalwetlands.Thesewetlandsprovidefood,waterandcoverformigratoryandotherbirds,fish,mammals,reptiles,amphibiansandavastnumberofplantspecies.Manyspeciesmaybecomeendangeredorthreatenedwithoutwetlandsandmanymoresurviveonlyduetowetlandsavailabletoday.ThisdivisioncombinesworktosustainandprotectcurrentwetlandswiththepotentialtoincreasewetlandsinCaliforniatosupportathrivingfloraandfauna.

(q)Theimplementationofthisdivisionwillresultincostsavingstolocalgovernmentsimmediatelybysubstantiallymorethanonebilliondollars,andreducelocalgovernmentoperatingcostsbyhundredsofmillionsofdollarsperyear.Thisdivisionwillprovidefundingthatdisplaceslocalgovernmentfunding,resultingintheimplementationofprojectsinthefollowingareas.Theseprojectswouldhaveeventuallybeenimplementedbylocalgovernment.

(1)SafeDrinkingWater.Statedirectandmatchingfundswillreducethecosttolocalgovernmentofimplementingdrinkingwaterandwastewatertreatmentsystems,andtosomeextenttheoperationofthosesystems.

(2)Wastewaterrecycling.Statefundswillreducethecostoftheseplants,reducingthecapitalcostoftheprojectsforlocalgovernments.Byreducinglocalgovernmentcapitalcosts,thecostofwaterfromtheseplantswillalsobereduced.Implementationofwastewaterrecyclingplantswilldefertheneedformoreexpensivealternativesourcesofwatersupply,thusfurtherreducinglocalcapitalandoperatingcosts.

(3)Groundwaterdesalting.Statefundswillreducethecostoftheseplants,reducingthecapitalcostoftheprojectsforlocalgovernments.Byreducinglocalgovernmentcapitalcosts,thecostofwaterfromtheseplantswillalsobereduced.Implementationofgroundwaterdesaltingplantswilldefertheneedformoreexpensivealternativesourcesofwatersupply,thusfurtherreducinglocalcapitalandoperatingcosts.

(4)WaterConservation.Statefundswillreducethecostoftheseprojects,reducingcoststolocalgovernment.Moreimportantly,reducedwaterdemandresultingfromtheseprojectswillreduceoperatingcosts,andwilltemporarilyorpermanentlydefertheconstructionandoperatingcostsofmoreexpensivecapitaloutlayprojectsneededtoprovidenewwater.

(5)Repairingfloodcontrolreservoirs.Statefundswillreducethecostsoftheseprojectsforlocalgovernment.

(6)SanFranciscoBayRestorationAuthorityfunds.StateinvestmentinwetlandsprojectsprovidingfloodprotectionaroundSanFranciscoBaywillreducefloodriskassociatedwithclimatechange.Thiswillreducethecostofotherfloodcontrolmeasures,andmoreimportantlywillreduceflooddamagewhichoftenresultsintremendouscoststolocalgovernmentforfacilityrepair.

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(7)Stormwaterfunding.RegulationsimposedbytheStateWaterResourcesControlBoardandvariousregionalwaterqualitycontrolboardswillresultintheconstructionofvariouscapitaloutlayprojectscostingbillionsofdollars.Providingfundsthroughthismeasurewillreducethecostoftheseprojectstolocalgovernment.

(8)Fisheriesrestoration.Thisdivisionprovideshundredsofmillionsofdollarsforfisheriesrestoration.Localandregionalwateragenciesarevoluntarilyundertakingmanyoftheseprojects.Byprovidingstatefunds,thisdivisionwillreducelocalcosts.Inaddition,theresultingincreaseinfishpopulationswillmakeitpossibletoimprovelocalwatersupplies,avoidinglocalgovernmentcoststoprovidereplacementwatersuppliescostinghundredsofmillionsorevenbillionsofdollars.

(9)BayAreaRegionalReliability.BayAreawaterdistrictsareundertakingextensiveimprovementsintheirwaterdistributionsystemstointerconnecttheirwatersuppliesforgreaterdroughtwatersupplyreliabilityandotherbenefits.Byprovidingfundsforthisprogram,thisdivisionwillreducetheircostsbytwohundredandfiftymilliondollars($250,000,000).

(10)FriantKernCanalRepair.GroundwateroverdrafthascausedsubsidenceoftheFriantKernCanal.Statefundstorepairthecanalwillreducethecostofrepairingthecanaltolocalwaterdistricts.Avoidingthecosttofinancethisprojectwillalsosavetensofmillionsofdollarsperyearininterestcostswhichwouldhavetobepaidbythesedistricts.

(11)OrovilleDamRepair.AlthoughthecostsofrepairingOrovilleDamshouldbecoveredbythefederalgovernmenteitherthroughtheFederalEmergencyManagementAgencyortheCorpsofEngineers,thefederalgovernmentmaynotfulfillthisobligation.IftheStateWaterResourcesDevelopmentSystemcontractors,alllocalagencies,areforcedtocoverallorpartofthesecosts,thisdivisionwillreducetheircostsbytwohundredmilliondollars($200,000,000).Interestcostswouldalsobereduced.

(r)SubstantialfundsremaintobeallocatedtostorageprojectspursuanttoDivision26.7.Forthisreason,andsoasnottointerferewiththeworkoftheCaliforniaWaterCommissioninawardingthesefunds,thismeasuredoesnotincludefundingfortheconstructionofspecificstorageprojects.

CHAPTER3.Definitions.

86002.Unlessthecontextotherwiserequires,thedefinitionssetforthinthissectiongoverntheconstructionofthisdivision,asfollows:

(a)“Conservation”meansrehabilitation,stabilization,restoration,reducedwateruse,development,andreconstruction,oranycombinationofthoseactivities.

(b)“Conservationactionsonprivatelands"meansprojectsimplementedwithwillinglandownersthatinvolvetheadaptiveandflexiblemanagementofnaturalresourcesinresponsetochangingconditionsandthreatstohabitatandwildlife.Theseinvestmentsandactionsarespecificallydesignedtocreatehabitatconditionsonprivatelandswhich,whenmanageddynamicallyovertime,contributetothelong-termhealthandresiliencyofvitalecosystemsandenhancewildlifepopulations.

(c)“Delta”meanstheSacramento-SanJoaquinDeltaasdefinedinSection12220.

(d)“Department”meanstheDepartmentofWaterResources.

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(e)“Desalination”meansremovingsaltandothercontaminantsfrompollutedgroundwaterorotherinlandsourcesofwatercontainingsalts,includingbrackishwater.

(f)“Disadvantagedcommunity”hasthemeaningsetforthinsubdivision(a)ofSection79505.5,asitmaybeamended.

(g)“Economicallydistressedarea”hasthemeaningsetforthinsubdivision(k)ofSection79702,asitmaybeamended.

(h)“Financecommittee”meanstheWaterSupplyReliabilityandDroughtProtectionFinanceCommitteecreatedbySection86182.

(i)“Fund”meanstheWaterSupplyReliabilityandDroughtProtectionFundof2018createdbySection86169.

(j)“Groundwatersustainabilityagency”meansanagencydefinedinsubdivision(j)ofSection10721.

(k)“IntegratedRegionalWaterManagementPlan”meansacomprehensiveplanforadefinedgeographicareathatmeetstherequirementsofPart2.2(commencingwithSection10530)ofDivision6,asthatpartmaybeamended.

(l)“Invasiveplant”meansaterrestrialoraquaticplantnotnativetoCaliforniaofnoornegligibleagriculturalvaluewhichdoesanyofthefollowing:displacesnativeplants,threatensnativeplantbiodiversity,harmsagriculturalorrangelandproductivity,degradeswildlifehabitat,contributestofirehazard,orusesmorewaterthantheplantsitdisplaces.

(m)“Multi-benefitproject”meansaprojectthatservesmorethanonepurpose,includingbutnotlimitedtofloodmanagement,watersupply,waterqualityimprovement,environmentalenhancement,recreation,energyconservation,reductionofemissionofclimate-changinggases,andfishandwildlifeimprovement.

(n)“Nonprofitorganization”meansanorganizationqualifiedtodobusinessinCaliforniaandexemptunderSection501(c)(3)orSection501(c)(6)ofTitle26oftheUnitedStatesCode,totheextentpermittedbystateandfederallaw.

(o)“Protection”meansthoseactionsnecessarytopreventharmordamagetopersons,propertyornaturalresourcesorthoseactionsnecessarytoallowthecontinueduseandenjoymentofpropertyornaturalresourcesandincludesacquisition,development,restoration,conservation,preservationandinterpretationasinterpretationisdefinedinsubdivision(i)ofSection75005ofthePublicResourcesCode.

(p)“Publicagency”meansastateagencyordepartment,specialdistrict,jointpowersauthority,city,county,cityandcounty,orotherpoliticalsubdivisionofthestate.

(q)“Publicwatersystems”aredefinedinsubdivision(h)ofsection116275oftheHealthandSafetyCodeandmeansregional,municipal,anddistricturbanwatersuppliers,includingprivatelyownedwatersuppliersasdefinedinPart2.6,Section10617oftheWaterCodeDivision6.

(r)“Restoration”meanstheimprovementofphysicalstructuresorfacilitiesand,inthecaseofnaturalsystemsandlandscapefeatures,includesbutisnotlimitedtoprojectsthatimprovephysicaland

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ecologicalprocesses,includingbutnotlimitedtoerosioncontrol;sedimentmanagement;thecontrolandeliminationofinvasivespecies;prescribedburning;fuelhazardreduction;fencingoutthreatstoexistingorrestorednaturalresources;meadow,wetland,riparian,andstreamrestoration;andotherplantandwildlifehabitatimprovementtoincreasethenaturalsystemvalueoftheproperty.Restorationprojectsshallincludetheplanning,monitoringandreportingnecessarytoensuresuccessfulimplementationoftheprojectobjectives.

(s)“Severelydisadvantagedcommunity”meansacommunitywithamedianhouseholdincomeoflessthan60percent(60%)ofthestatewidemedianhouseholdincome.

(t)“SierraNevadaWatershedImprovementProgram”isacoordinated,integrated,collaborativeprogramtorestorethehealthofCalifornia'sprimarywatershedbyincreasingthepaceandscaleofforestrestorationinordertomaintaintheimportantbenefitsthattheSierraNevadaregionprovides.

(u)“Stateboard”meanstheStateWaterResourcesControlBoard.

(v)“StateGeneralObligationBondLaw”meanstheStateGeneralObligationBondLaw,Chapter4(commencingwithSection16720)ofPart3ofDivision4ofTitle2oftheGovernmentCode.

(w)“Stormwater”and“dryweatherrunoff”aredefinedasinSection10561.5.

(x)“StormwaterResourcePlans”aredefinedasinPart2.3(commencingwithSection10560)ofDivision6.

CHAPTER4. Accountability.

86003.(a)(1)TheCaliforniaNaturalResourcesAgencyshallprovideforanindependentauditofexpenditurespursuanttothisdivisionnolessthaneverythreeyears.

(2)OnorbeforeJanuary10,2020,andeverysixmonthsthereafter,theNaturalResourcesAgencyshallpublishonitswebsiteareportthatcontainsallofthefollowinginformationrelatingtothisdivisionfortheprevioussixmonthswiththeinformationsummarizedbysectionofthisdivision:

(A)Fundingencumbrances.

(B)Summaryofnewprojectsfunded.

(C)Summaryofprojectscompleted.

(D)DiscussionofprogresstowardsmeetingthemetricsofsuccessestablishedpursuanttoSection86157.

(E)Discussionofcommonchallengesexperiencedbystateagenciesandrecipientsoffundinginexecutingprojects.

(F)Discussionofmajoraccomplishmentsandsuccessesexperiencedbystateagenciesandrecipientsoffundinginexecutingprojects.

(3)ThissubsectionshallremainineffectonlyuntilJanuary1,2028,andasofthatdateisrepealed.

(b)TheDepartmentofFinanceortheController,ortheCaliforniaStateAuditoratthedirectionoftheLegislature,mayconductanauditoftheexpendituresofanystateagencyreceivingfundingpursuantto

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thisact.

(c)Thestateagencyissuinganygrantwithfundingauthorizedbythisdivisionshallrequireadequatereportingoftheexpendituresofthefundingfromthegrant.

CHAPTER5.ImprovementofWaterSupplyandWaterQuality.

CHAPTER5.1.SafeDrinkingWater.

86004.Thesumofsevenhundredfiftymilliondollars($750,000,000)isappropriatedfromtheFundtotheStateboardforexpenditures,grants,andloanstoimprovewaterqualityorhelpprovideclean,safe,andreliabledrinkingwatertoallCalifornians.

86005.Theprojectseligibleforfundingpursuanttothischaptershallhelpimprovewaterqualityforabeneficialuse.Thepurposesofthischapterareto:

(a)Reducecontaminantsindrinkingwatersuppliesregardlessofthesourceofthewaterorthecontamination.

(b)Assessandprioritizetheriskofcontaminationtodrinkingwatersupplies.

(c)Addressthecriticalandimmediateneedsofdisadvantaged,rural,orsmallcommunitiesthatsufferfromcontaminatedorinadequatedrinkingwatersupplies,including,butnotlimitedto,projectsthataddressapublichealthemergency.

(d)Leverageotherprivate,federal,state,andlocaldrinkingwaterqualityandwastewatertreatmentfunds.

(e)Providedisadvantagedcommunitieswithpublicdrinkingwaterinfrastructurethatprovidesclean,safe,andreliabledrinkingwatersuppliesthatthecommunitycansustainoverthelongterm.

(f)Ensureaccesstoclean,safe,reliable,andaffordabledrinkingwaterforCalifornia’scommunities.

(g)Meetprimaryandsecondarydrinkingwaterstandardsorremovecontaminantsidentifiedbythestateorfederalgovernmenttomeetprimaryorsecondarydrinkingwaterstandards.

86006.Thecontaminantsthatmaybeaddressedwithfundingpursuanttothischaptermayinclude,butshallnotbelimitedto,lead,nitrates,perchlorate,MTBE(methyltertiarybutylether),arsenic,selenium,hexavalentchromium,mercury,PCE(perchloroethylene),TCE(trichloroethylene),DCE(dichloroethene),DCA(dichloroethane),1,2,3-TCP(trichloropropane),carbontetrachloride,1,4-dioxane,1,4-dioxacyclohexane,nitrosodimethylamine,bromide,iron,manganese,totaldissolvedsolids,electricalconductivity,anduranium.

86007.(a)(1)OfthefundsauthorizedbySection86004,fivehundredmilliondollars($500,000,000)shallbeavailableforgrantsandloansforpublicwatersysteminfrastructureimprovementsandrelatedactionstomeetsafedrinkingwaterstandards,ensureaffordabledrinkingwater,orboth.Priorityshallbegiventoprojectsthatprovidetreatmentforcontaminationoraccesstoanalternatedrinkingwatersourceorsourcesforsmallcommunitywatersystemsorstatesmallwatersystemsindisadvantagedcommunitieswhosedrinkingwatersourceisimpairedbychemicalandnitratecontaminantsandotherhealthhazards

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identifiedbytheStateboard.Eligiblerecipientsservedisadvantagedcommunitiesandarepublicwatersystemsorpublicagencies.

(2)Eligibleexpensesmayincludeinitialoperationandmaintenancecostsforsystemsservingdisadvantagedcommunities.Priorityshallbegiventoprojectsthatprovidesharedsolutionsformultiplecommunities,atleastoneofwhichisadisadvantagedcommunitythatlackssafe,affordabledrinkingwaterandisservedbyasmallcommunitywatersystem,statesmallwatersystem,oraprivatewell.Constructiongrantsshallbelimitedtofivemilliondollars($5,000,000)perproject,exceptthattheStateboardmaysetalimitofnotmorethantwentymilliondollars($20,000,000)forprojectsthatprovideregionalbenefitsoraresharedamongmultipleentities,includingconsolidationoftwoormoredrinkingwatersystems,atleastoneofwhichshallbeasmalldisadvantagedcommunity.Notmorethan50percent(50%)ofagrantmaybeawardedinadvanceofactualexpenditures.

(3)Forthepurposesofthissubdivision,“initialoperationandmaintenancecosts”meansthoseinitial,eligible,andreimbursablecostsunderaconstructionfundingagreementthatareincurredupto,andincluding,butnotlimitedto,initialstartuptestingoftheconstructedprojectinordertodeemtheprojectcomplete.Initialoperationandmaintenancecostsareeligibletoreceivefundingpursuanttothissectionforaperiodnottoexceedthreeyears.

(b)Ofthefundsauthorizedbythissection,uptotenmilliondollars($10,000,000)shallbeavailableforgrantstoprovideschoolchildrenwithsafedrinkingwaterundertheDrinkingWaterforSchoolsGrantProgrampursuanttoSection116276oftheHealthandSafetyCode.

86008.OfthefundsauthorizedbySection86004,twohundredfiftymilliondollars($250,000,000)shallbeavailablefordepositintheStateWaterPollutionControlRevolvingFundSmallCommunityGrantFundcreatedpursuanttoSection13477.6forgrantsandloansforwastewatertreatmentprojects.Priorityshallbegiventoprojectsthatservedisadvantagedcommunitiesandseverelydisadvantagedcommunities,andtoprojectsthataddresspublichealthhazards.Projectsmayinclude,butnotbelimitedto,projectsthatidentify,plan,design,andimplementregionalmechanismstoconsolidatewastewatersystemsorprovideaffordabletreatmenttechnologies.

86009.OfthefundsauthorizedbySection86004,uptosixtymilliondollars($60,000,000)shallbemadeavailablefordrinkingwaterinfrastructureand/orwastewaterimprovementsonprivateproperty,orforinterimreplacementdrinkingwatersupplies.

(a)Fundsmaybeusedforthefollowingpurposes:

(1)Toconductwaterqualitytestingofdrinkingwaterwells.(2)Toinstallandreplacelaterals,repairorreplaceprivatewellsoronsitewastewatersystems,

properlycloseabandonedwellsandsepticsysteminfrastructure,andprovideinfrastructurenecessarytoconnectresidencestoapublicwaterorwastewatersystem.

(3)Toreplaceinteriordrinkingwaterplumbingandfixturesthatcontainlead.(4)Toprovideinterimreplacementdrinkingwatersupplies.

(b)TheStateboardmayestablisharevolvingloanfundtofacilitatefinancingforactivitiesallowableunderthissection.

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(c)Priorityshallbegiventoprojectsthatassistlow-incomehomeowners,includingmobilehomeowners,andvulnerablepopulations.86010.(a)Forthepurposesofawardingfundingpursuanttothischapter,alocalcostshareofnotlessthan50percent(50%)ofthetotalcostsoftheprojectshallberequired.Thecost-sharingrequirementmaybewaivedorreducedforprojectsthatdirectlybenefitadisadvantagedcommunityoraneconomicallydistressedarea.

(b)Atleast10percent(10%)ofthefundsavailablepursuanttothischaptershallbeallocatedforprojectsservingseverelydisadvantagedcommunities.

(c)Upto15percent(15%)ofthefundsavailablepursuanttothischaptermaybeallocatedfortechnicalassistancetodisadvantagedcommunities.TheStateboardshalloperateamultidisciplinarytechnicalassistanceprogramforsmallanddisadvantagedcommunitieswhichmayinclude,butisnotlimitedto,outreachandeducation,needsassessments,reviewofalternativeapproachestoprovidecommunitieswithsafedrinkingwaterorwastewaterservices,projectselectionanddesign,boardandoperatortraining,andothertechnical,managerial,andfinancialcapacitybuildingassistanceforutilitiesservingdisadvantagedcommunitiesrelatedtoprovidingcommunitieswithsafedrinkingwaterorwastewaterservices.Theagencymayalsocontractwithanonprofitorganization,resourceconservationdistrict,orotherlocalagencytoprovidetheseservices.

CHAPTER5.2.WaterRecyclingandDesalination.

86020.Thesumoffourhundredmilliondollars($400,000,000)isappropriatedfromtheFundtotheStateboardtoawardgrantsandloanstoeligibleentitiesasdefinedinsubdivision(a)ofSection86166onacompetitivebasisforwastewaterrecyclingprojects.Grantspursuanttothissectionmaybemadeforallofthefollowing:

(a)Waterrecyclingprojects,including,butnotlimitedto,treatment,storage,conveyance,brinedisposal,anddistributionfacilitiesforpotableandnonpotablerecyclingprojects.

(b)Dedicateddistributioninfrastructuretoserveresidential,commercial,agricultural,fishandwildlifehabitat,andindustrialend-userretrofitprojectstoallowuseofrecycledwater.

(c)Pilotprojectsfornewpotablereuseandcontaminantremovaltechnology.

(d)Multi-benefitrecycledwaterprojectsthatimprovewaterquality.

(e)Multi-benefitrecycledwaterprojectsthatprotect,conserveandrestorewetlandandotherwildlifehabitat.

(f)Technicalassistanceandgrantwritingassistancerelatedtospecificprojectsfordisadvantagedcommunitiesandeconomicallydistressedareas.

86021.Thesumoffourhundredmilliondollars($400,000,000)isappropriatedfromtheFundtotheStateboardtoawardgrantstoeligibleentitiesasdefinedinsubdivision(a)ofSection86166onacompetitivebasisfordesalinationofbrackishgroundwater,andotherbrackishwaterdesalinationprojectswhichdo

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notdirectlynegativelyaffectriparianhabitat,estuaries,coastalbays,coastallagoons,oroceanwatersofCaliforniaasdefinedbytheStateboard.Grantspursuanttothissectionmustcomplywiththerequirementsofthissection,andmaybemadeforallofthefollowing:

(a)Treatment,storage,conveyance,anddistributionfacilities.Projectsmayremovecontaminantsinadditiontosalts,butshallbeprimarilyconstructedandoperatedtoremovesalt.

(b)Distributioninfrastructuretoserveresidential,commercial,agricultural,fishandwildlifehabitat,andindustrialend-userretrofitprojectstoallowuseofdesaltedwater.

(c)Multi-benefitsaltremovalprojectsthatimprovewaterquality.

(d)Technicalassistanceandgrantwritingassistancerelatedtospecificprojectsfordisadvantagedcommunitiesandeconomicallydistressedareas.

(e)Multi-benefitsaltremovalprojectsthatprovidewatersupplyforwetlandandotherwildlifehabitat.

(f)Technicalassistanceandgrantwritingassistancerelatedtospecificprojectsfordisadvantagedcommunitiesandeconomicallydistressedareas.

86022.Nograntmadepursuanttothischaptershallexceedfiftypercent(50%)ofthecostoftheproject,butthisrequirementmaybeeliminatedorreducedforthatportionofprojectsthatprimarilyservedisadvantagedcommunities,economicallydistressedareas,orwildlifehabitat.

86023.Projectsfundedpursuanttothischaptershallbeselectedonacompetitivebasiswithprioritygiventothefollowingcriteria:

(a)Watersupplyreliabilityimprovement.

(b)WaterqualityandecosystembenefitsrelatedtodecreasedrelianceondiversionsfromtheDeltaorfromlocalriversandstreams,andbenefitsrelatedtoattainmentofbeneficialusesandwaterqualityobjectivesinlocalreceivingwaters.

(c)Publichealthbenefitsfromimproveddrinkingwaterqualityorsupply.

(d)Cost-effectiveness,basedontheamountofwaterproducedperdollarinvested,andothercost-effectivenesscriteriaadoptedbytheStateboard.

(e)Energyefficiencyandgreenhousegasemissionreductions.

(f)Watersupplyorwaterqualityimprovementsbenefittingdisadvantagedcommunities.

(g)Protectionandrestorationoffishandwildlifehabitat,aswellasprovisionofareliablewatersupplyforfishandwildlife.

CHAPTER5.3.WaterConservation.

86030.Thesumofthreehundredmilliondollars($300,000,000)isappropriatedfromtheFundtothe

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departmentforthefollowingpurposes:

(a)Statewideturfremovalprogram.

(1)Theprogramshallprovidefinancialincentivestopublicandprivatepropertyownerstoconverttheirirrigatedorwateredlandscapingtodroughttolerantplantings,includingappropriatelowwaterusingplants.Thedepartmentshallsetamaximumamounteachapplicantcanreceive,andshallallowgreaterincentivestolow-incomehomeownerswhocouldnototherwiseaffordtoparticipateinthelandscapewaterconversionprogram.Nolessthanseventy-fivepercent(75%)ofthefundsallocatedtothisprogramshallbespentonprogramsbenefittingresidentialpropertyowners.Thedepartmentshallmakeawardstononresidentialapplicantsonthebasisofcost-effectivenesswithrespecttowatersupply.Eachgrantmustreducewaterconsumptionbyatleastfiftypercent(50%)comparedtocurrentwateruse.

(2)Themostcost-effectiveprojectsandthoseprojectsthatprovidethegreatestenvironmentalbenefitsbasedonthestateinvestmentshallreceivehighestpriorityforfunding.Environmentalbenefitsshallinclude,butnotbelimitedto,plantingappropriatedroughtresistantnativeandotherplants,reductioninconsumptivewateruse,andincreasedavailabilityofwaterforenvironmentalbenefits.

(3)Thedepartmentshallnotrejectorreduceeligibilitytoresidentsresidinginserviceareaswhichhavepreviouslyofferedturfremovalrebateprogramsaslongastheresidentwasnotaparticipantintheprogram.

(4)Thedepartmentshallcooperatewitheligibleentitiesasdefinedinsubdivision(a)ofSection86166andtheCaliforniaPublicUtilitiesCommissiontodevelopanon-billrepaymentmechanismtopayfortheconsumer’sshareofthelandscapeconversionproject.

(b)Leakdetection.

(1)Competitivegrantsonamatchingbasistopublicwatersystemstoreduceleaksintheirwaterdistributionsystems,eliminateleaksinthewatersystemsoftheircustomersifthewatersystemoperatordeterminesthatcustomerleakdetectionandeliminationisacost-effectivewaytoimprovethewatersystemoperator’swatersupplyandprovidesapublicbenefit,andinstallinstrumentationtodetectleaksatresidential,institutional,andcommercialproperties.Thedepartmentshallmakeawardsonthebasisofcost-effectivenesswithrespecttowatersupply.Watersystemoperatorsreceivinggrantspursuanttothissubdivisionshallgivehighestprioritytoleakdetectionandwaterwasteeliminationprogramsindisadvantagedcommunitiesandeconomicallydistressedareas.

(2)Nograntawardshallexceedfiftypercent(50%)ofthecostoftheproject.Costsharingmaybereducedoreliminatedforagrantawardthatprimarilybenefitsresidentialpropertyownersinadisadvantagedcommunityoraneconomicallydistressedarea.

(c)Toiletreplacement.Competitivegrantsonamatchingbasistopublicwatersystemsoreligibleentitiesasdefinedinsubdivision(a)ofSection86166toreplacetoiletsusingmorethanthreegallonsperflushwithnewtoiletsthatconservewaterandflush1.28gallonsperflushorless.Thedepartmentshallmakeawardsonthebasisofcost-effectivenesswithrespecttowatersupply.Entitiesreceivinggrantspursuanttothissubdivisionshallgivehighestprioritytotoiletreplacementprogramsindisadvantagedcommunitiesandeconomicallydistressedareas.

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(d)Watermeters.Installationofwatermetersindisadvantagedcommunitiesthatarenotmetered.

(e)Energysavingwaterconservation.Competitivegrantsonamatchingbasistopublicwatersystemstoundertakewaterconservationprojectsthatpromotesavingenergy.Theseprojectsshalldocumentthegreenhousegasemissionreductionscomingfromwaterconservationprograms.Thedepartmentshallmakeawardsonthebasisofcost-effectivenesswithrespecttowatersupplyaswellasenergysavings.Highestpriorityshallbegiventoprogramsindisadvantagedcommunitiesandeconomicallydistressedareas.

(f)Indetermininghowtoallocatethefundsappropriatedpursuanttothissection,thedepartmentshalldeterminewhichtechnologiesaremostcost-effective,producethegreatestenvironmentalbenefits,andprovidethemostbenefittodisadvantagedcommunitiesandeconomicallydistressedareas.

(g)Anyentityreceivingagrantpursuanttothissectionmayusegrantfundstoestablisharevolvingfundfromwhichtheentitymaymakeloanstoimplementwaterconservationprograms.Theinterestrateshallbeestablishedbytheentity,andtheentitymaychargeareasonableadministrationfeetobepaidalongwiththeinterestontheloanoverthelifetimeoftheloan.Paymentsmadeonloansmadepursuanttothisprogramshallbereturnedtotherevolvingfundtobeusedforadditionalloanstoimplementwaterconservationprograms.Loansmadepursuanttothissectionmaybeforupto15years,orfortheusefullifeofthewaterconservationproject,whicheverisshorter.

86031.Thesumoffifteenmilliondollars($15,000,000)isappropriatedfromtheFundtotheCaliforniaEnergyCommissionfortheWaterEnergyTechnologyProgramtoacceleratethedeploymentofinnovativewaterandenergysavingtechnologiesandhelpcontinuetomakewaterconservationaCaliforniawayoflife.

86032.(a)ThepurposeofthissectionistohelpmakeitpossibletoimproveflowsintributariestotheDelta,andtoexpeditethetransferofconservedagriculturalwaterwhileminimizingimpactsonwaterrightsholders.(b)Thesumoffiftymilliondollars($50,000,000)isappropriatedfromtheFundtothedepartmentformatchinggrantstolocalagenciestoaidintheconstructionandimplementationofagriculturalwaterconservationprojects,andforgrantsinaccordancewithSection79158.(c)Forthepurposesofapprovingagrantunderthissection,thedepartmentshalldetermineiftherewillbeanetsavingsofwaterasaresultofeachproposedprojectandiftheprojectiscost-effectiveandtechnicallysound.(d)Aprojectunderthissectionshallnotreceivemorethanfivemilliondollars($5,000,000)ingrantproceedsfromthedepartment.(e)Thedepartmentshallgivepreferencetothemostcost-effectiveandtechnicallysoundprojects.(f)PriorityshallbegiventograntsthatresultinwatersavingswhichareusedtoimprovethequalityoffishandwildlifethroughincreasedflowsintributariestotheDelta.Grantsimprovinginternalwaterdistrictefficiencyforotherusesandtransfersarealsoeligibleforfunding.(g)Noprojectmaycauseadverseimpactstofishorwildlifewithoutmitigatingthoseimpactsbelowalevelofsignificance.Thecostofmitigationmaybeincludedingrantfunds.

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CHAPTER5.4.FloodManagementforImprovedWaterSupply.

86040.(a)Thesumoftwohundredmilliondollars($200,000,000)isappropriatedfromtheFundtotheCentralValleyFloodProtectionBoardfor:

(1)EnlargementandenvironmentalenhancementofexistingfloodwaysandbypasseswithinthejurisdictionoftheCentralValleyFloodProtectionBoard,includingprovidingrecreationopportunities.

(2)ImprovementoffloodcontrolfacilitiesandenvironmentalenhancementwithinthejurisdictionoftheCentralValleyFloodProtectionBoard.

(b)Tobeeligibleforfundingunderthissection,aprojectshallprovidereducedfloodrisk,reducedliability,orreducedmaintenanceresponsibilityforstateagenciesorlocalfloodcontroldistrictsorboth.

(c)TheCentralValleyFloodProtectionBoardshallgivepreferenceto:

(1)Thoseprojectsthatprimarilybenefitdisadvantagedcommunitiesoreconomicallydistressedareas.

(2)Multi-benefitprojectsdesignedtoreducefloodriskandenhancefishandwildlifehabitatbyallowingriversandfloodplainstofunctionmorenaturally.Theseprojectscreateadditionalpublicbenefitssuchasprotectingfarmsandranches,improvingwaterquality,increasinggroundwaterrecharge,andprovidingpublicrecreationopportunities.

(3)Thoseprojectsthatincludematchingfunds,includingbutnotlimitedtomatchingfundsfromotherstateagencies.Matchingfundrequirementsmaybereducedoreliminatedtotheextenttheprojectdirectlybenefitsdisadvantagedcommunitiesoreconomicallydistressedareas.

(d)TheCentralValleyFloodProtectionBoardmaymakegrantstoeligibleentitiesasdefinedinsubdivision(a)ofSection86166toimplementthissection.

(e)TheCentralValleyFloodProtectionBoardmayuseuptoonemillion($1,000,000)ofthesefundstodevelopaprogrammaticpermitforauthorizationofhabitatrestorationandrelatedmulti-benefitfloodplainrestorationprojectswhoseprimarypurposeisrestorationandthatmeetthecriteriadescribedinparagraphs(a)and(b)ofthissection.

(f)Oftheamountappropriatedinparagraph(a),fiftymilliondollars($50,000,000)shallbeawardedformatchinggrantstopublicagenciestoconstructfloodcontrolimprovementstoexistingdamsonriversintheSacramentoValleythatprovidefloodprotectiontourbanizedareas.IfthesefundsarenotawardedforthispurposebyJanuary1,2032,theymaybeusedfortheotherpurposesofthissection.

86041.(a)Thesumofonehundredmilliondollars($100,000,000)isappropriatedfromtheFundtothedepartmentforgrantstolocalagenciesonafiftypercent(50%)matchingbasistorepairorreoperatereservoirsthatprovidefloodcontroleitherasaprincipalpurposeorasanindirecteffectoftheiroperation.Granteesmustdemonstratethattheproposedrepairorreoperationwillincreasetheamountofwaterstoredinthosereservoirsthatcouldbeputtobeneficialuse.Nofundsappropriatedunderthissectionshallbeusedtoraisetheheightofanydam.Spillwaymodificationprojectsthatdonotraisethe

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crestheightofthedamareeligibleforgrantfunds.

(b)(1)Tobeeligibleforfundingunderthissection,aprojectmustprovidesubstantialincreasesinrecreationalopportunities,suchastrailsalongriverchannels,andsignificantnetimprovementstofishandwildlifehabitatinandadjacenttotheriverchanneldownstreamofthereservoir,andtotheextentcompatiblewithsafereservoiroperation,withinthereservoir.Atleasttenpercent(10%)ofprojectcostsshallbeallocatedtotheserecreationalandhabitatpurposes.Thefundstocarryoutthesepurposesshallbeallocatedbythedepartmentdirectlytoastateconservancyifthereisaconservancywithjurisdictionovertheareaoftheproject.Ifthereisnoconservancy,theNaturalResourcesAgency’sCaliforniaRiverParkwaysProgramshallcontractwithaneligibleentityasdefinedinsubdivision(a)ofSection86166tocarryoutthesepurposes.Theagencyoperatingthereservoirbeingrepairedorreoperatedshallapprovetherecreationalandhabitatelementsoftheprojectandshallnotchargeanyfeesforreview,plancheck,permits,inspections,oranyotherrelatedcostsassociatedwiththeproject,andshallprovidepermanentoperationandmaintenanceoftheentireproject,includingthehabitatandrecreationalelements.Projectsmayincludegrantstoeligibleentitiesasdefinedinsubdivision(a)ofSection86166toimplementthisparagraph.

(2)Allcostsassociatedwiththerequirementsofthissubdivisionmaybepaidforwithfundsprovidedtolocalagenciesbythissection,anddonothavetobematchedbytheagency.

(c)Grantsmadepursuanttothissectionmaybeforthepurposeofseismicretrofit.

(d)Nograntsmadepursuanttothissectionshallbeforreservoirmaintenanceorsedimentremovalfromthereservoirorupstreamofthereservoir,exceptasnecessarytocompleteprojectsauthorizedunderparagraphs(a),(b),and(c).

(e)Applicantsshallcertifythatprojectspaidforbyfundsprovidedbythissectionwillbepermanentlyoperatedandmaintained.

(f)Firstpriorityshallbegiventoprojectsthatbenefitdisadvantagedcommunities.

(g)Projectstoassistinthereoperationofeligiblereservoirsshallincreasewatersupplyforbeneficialusesthroughthepurchaseandinstallationofwatermeasuringequipment,acquisitionofinformationsystems,andtheuseoftechnologiesanddatatoimprovereservoirmanagement.

(h)(1)Alocalpublicagency,Indiantribeornonprofitorganizationthatreceivesfundingunderthischaptertocreaterecreationalfacilitiesorwildlifehabitatmayuseuptotwentypercent(20%)ofthosefundstoestablishatrustfundthatisexclusivelyusedtohelppayforthemaintenanceandmonitoringofthoserecreationalfacilitiesorwildlifehabitat.

(2)Alocalpublicagency,Indiantribeornonprofitorganizationthatacquiresaninterestinland,recreationfacilitiesorwildlifehabitatwithmoneyfromthischapterandtransferstheinterestinland,recreationalfacilitiesorwildlifehabitattoanotherpublicagency,Indiantribeornonprofitorganizationshallalsotransfertheownershipofthetrustfundthatwasestablishedtomaintainthatinterestintheland,recreationalfacilitiesorwildlifehabitat.

(3)Thissubdivisiondoesnotapplytostateagencies.

(4)Ifthelocalpublicagency,Indiantribeornonprofitorganizationdoesnotestablishatrustfund

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pursuanttothissubdivision,theagency,tribeororganizationshallcertifytothestateagencymakingthegrantthatitcanmaintaintheland,recreationalfacilitiesorwildlifehabitattobeacquiredordevelopedfromfundsotherwiseavailabletotheagency,tribeororganization.

(5)Iftheinterestinland,recreationalfacilitiesorwildlifehabitatiscondemnedorifthelocalpublicagency,Indiantribeornonprofitorganizationdeterminesthattheinterestinland,recreationalfacilitiesorwildlifehabitatisunabletofulfillthepurposesforwhichmoneyfromthischapterwasexpended,thetrustfundandanyunexpendedinterestareappropriatedtotheagencythatprovidedthemoney.Thefundsreturnedtotheagencymaybeutilizedonlyforprojectspursuanttothissection.

(i)Thedepartmentshallgivepreferencetothoseprojectsthatcoordinatereservoirreoperationwiththeprovisionofwaterforgroundwaterrechargethroughconjunctiveuseorotherintegratedsurface/groundwaterprojects.

86042.Thesumoftwohundredmilliondollars($200,000,000)isappropriatedfromtheFundtotheSanFranciscoBayRestorationAuthoritytoprovidematchinggrantsforfloodmanagement,wetlandsrestoration,andotherprojectsconsistentwithArticle2(commencingwithSection66704.5)ofChapter5ofTitle7.25oftheGovernmentCode.Forpurposesofthissection,matchingfundsmayincludefundsprovidedbylocalgovernments,regionalgovernments,thefederalgovernment,privateparties,orotherfundsraisedbytheSanFranciscoBayRestorationAuthority.Nograntshallexceedfiftypercent(50%)ofthecostoftheproject.

86043.(a)(1)Alocalpublicagency,Indiantribeornonprofitorganizationthatreceivesfundingunderthischaptertoacquireaninterestinlandmayuseuptotwentypercent(20%)ofthosefundstoestablishatrustfundthatisexclusivelyusedtohelppayforthemaintenanceandmonitoringofthatinterestinland.

(2)Alocalpublicagency,Indiantribeornonprofitorganizationthatacquiresaninterestinlandwithmoneyfromthischapterandtransferstheinterestinlandtoanotherpublicagency,Indiantribeornonprofitorganizationshallalsotransfertheownershipofthetrustfundthatwasestablishedtomaintainthatinterestinland.

(3)Thissubdivisiondoesnotapplytostateagencies.

(b)Ifthelocalpublicagency,Indiantribeornonprofitorganizationdoesnotestablishatrustfundpursuanttosubdivision(a),theagency,tribeororganizationshallcertifytothestateagencymakingthegrantthatitcanmaintainthelandtobeacquiredfromfundsotherwiseavailabletotheagency,tribeororganization.

(c)Iftheinterestinlandiscondemnedorifthelocalpublicagency,Indiantribeornonprofitorganizationdeterminesthattheinterestinlandisunabletofulfillthepurposesforwhichmoneyfromthischapterwasexpended,thetrustfundandanyunexpendedinterestareappropriatedtotheagencythatprovidedthemoney.Thefundsreturnedtotheagencymaybeutilizedonlyforprojectspursuanttothischapter.

CHAPTER5.5.FundingforWaterMeasurementandInformation.

86048.Thesumofsixtymilliondollars($60,000,000)isappropriatedfromtheFundforwatermeasurementandinformationsystems,asfollows:

(a)Thesumoftwentymilliondollars($20,000,000)isappropriatedtothedepartmentfordevelopmentof

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methodsandinstallationofwatermeasuringequipmenttoimproveestimatesofwaterbalance,waterbudgets,diversionsandwaterusetosupportwaterallocations,droughtmanagement,groundwatermanagement,waterqualitymanagementandwaterrights.

(b)Thesumoftenmilliondollars($10,000,000)isappropriatedtotheStateboardfordevelopmentofinformationsystems,technologies,anddatathatimprovetheStateboard’sabilitytomanagewaterrights.Thesesystemswillinclude,butnotbelimitedto,digitizingandmakingavailablethe10millionpagesofpaperrecordsonwaterrightswithintheStateboardandinotherrepositoriesandthecreationofadigitalrepositoryforwaterdiversionandusedata.

(c)Thesumoftenmilliondollars($10,000,000)isappropriatedtotheWaterDataAdministrationFundestablishedpursuanttoSection12420,tobeusedbythedepartmentinconsultationwiththeStateboardforthepurposeofmakingCaliforniawaterinformationinteroperable,consistentwithPart4.9ofDivision6oftheWaterCode.

(d)Thesumoftwentymilliondollars($20,000,000)isappropriatedasfollows:

(1)Fivemilliondollars($5,000,000)isappropriatedtotheUniversityofCaliforniaforitsmulti-campusWaterSecurityandSustainabilityResearchInitiativetodevelopcoreelementsofawaterresourcesinformationsystem,incooperationwiththedepartmentandtheStateboard.

(2)Fivemilliondollars($5,000,000)isappropriatedtotheCaliforniaWaterInstituteatCaliforniaStateUniversity,FresnotoundertakeresearchleadingtoimprovementandconservationofwatersuppliesandimprovedwaterqualityinCalifornia.

(3)Fivemilliondollars($5,000,000)isappropriatedtotheIrrigationTrainingandResearchCenteratCaliforniaPolytechnicStateUniversitySanLuisObispotoundertakeresearchleadingtoimprovementandconservationofwatersuppliesandimprovedwaterqualityinCalifornia.

(4)Fivemilliondollars($5,000,000)isappropriatedtotheOfficeofWaterProgramsatCaliforniaStateUniversity,SacramentotoundertakeresearchleadingtoimprovementandconservationofwatersuppliesandimprovedwaterqualityinCalifornia.

(5)Theinstitutionsofhighereducationreceivingfundspursuanttothisparagraphshallworktogethertoassurethattheireffortsdonotconflictoroverlap,butarecomplementarytoeachother.

CHAPTER5.6.CaptureandUseofUrbanRunoffandStormwater.

86050.(a)Thesumoffourhundredmilliondollars($400,000,000)isappropriatedfromtheFundtotheStateboardforprojectstocaptureanduseurbandryweatherrunoffandstormwaterrunoff.AllgrantsmadepursuanttothissectionbytheStateboardforconstructionprojectsmustbetocountiesorcities,acityandcounty,orajointpowersauthoritycontainingacity,county,orcityandcountywithresponsibilityforfloodcontrolormanagement.TheStateboardmayspenduptofiftymilliondollars($50,000,000)forgrantstoeligibleentitiesasdefinedinsubdivision(a)ofSection86166todevelopStormwaterResourcePlans.Fundsavailablepursuanttothissectionshallbeallocatedtoprojectsservingandprovidingadirectbenefittodisadvantagedandseverelydisadvantagedcommunities.TheStateboardmayusethesefundstomakegrantsfortechnicalassistanceandoutreachtodisadvantagedcommunities.

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(b)Thesumofthirtymilliondollars($30,000,000)isappropriatedfromtheFundtotheCaliforniaTahoeConservancyforprojectstocaptureandusedryweatherrunoffandstormwaterrunoffintheLakeTahoeBasinpursuanttoTitle7.42(commencingwithSection66905)oftheGovernmentCode.

(c)Thesumoffortymilliondollars($40,000,000)isappropriatedfromtheFundtotheSantaMonicaMountainsConservancyforprojectstocaptureandusedryweatherrunoffandstormwaterrunoffpursuanttoDivision23(commencingwithSection33000)ofthePublicResourcesCodeintheareadefinedinparagraph(2)ofsubdivision(d)ofSection86080.

(d)Thesumoffortymilliondollars($40,000,000)isappropriatedfromtheFundtotheSanGabrielandLowerLosAngelesRiversandMountainsConservancyforprojectstocaptureandusedryweatherrunoffandstormwaterrunoffpursuanttoDivision22.8(commencingwithSection32600)ofthePublicResourcesCode.

(e)Thesumoffortymilliondollars($40,000,000)isappropriatedfromtheFundtotheStateCoastalConservancyforprojectstocaptureandusedryweatherrunoffandstormwaterrunoffpursuanttoDivision21(commencingwithSection31000)ofthePublicResources.

(f)Fundsspentpursuanttothissectionshallbeusedforcompetitivegrantsforprojectsthatdevelop,implement,orimprovemulti-benefitprojectsidentifiedandprioritizedinStormwaterResourcePlansconsistentwithPart2.3(commencingwithSection10560)ofDivision6,asthatpartmaybeamended,andshallincludeasmanyaspossibleofthefollowingbenefits:captureandtreatmentofstormwaterordryweatherrunoffforbeneficialuses;removalofpollutantsfromthecapturedandtreatedrunoff;creationorrestorationofhabitatorparklandtocaptureandtreatstormwaterordryweatherrunoffforbeneficialusesbyusingbestmanagementpracticesthatimproveenvironmentalquality;removalofpollutantsfromthecapturedandtreatedrunoff;creationorrestorationofhabitatorparkland;storage,infiltrationoruseofthecapturedandtreatedrunofftoaugmentlocalwatersupplies;creationorrestorationofnativehabitat,trails,parklandorothernaturalopenspace;reductionofurbanheatislands;andprovisionofotherpublicrecreationalopportunities.Projectsthatincludewetlandsandnativehabitatorprojectelementsdesignedtomimicorrestorenaturalwatershedfunctionsshallbegiventhehighestpriority.

(g)Oftheamountappropriatedpursuanttosubdivision(a),atleastfortymilliondollars($40,000,000)shallbeavailableforprojectsthatreducetheflowoftrashandotherpollutants:(1)intoaNationalEstuarineResearchReserve,ontobeaches,orintonear-shorecoastalwatersinSanDiegoCounty,or(2)intoSanDiegoBay.PriorityshallbegiventoprojectsthatreducetheflowoftrashorotherpollutantsintooneormoreunitsoftheStateParksSystem.

86051.(a)Eachstateagencyreceivingfundspursuanttothischaptershallrequireatleastafiftypercent(50%)costsharebyrecipientsofgrantfunds,butmayeliminateorreducethematchingrequirementsforthatportionofprojectsprimarilybenefitingdisadvantagedcommunitiesoreconomicallydistressedareas.

(b)ProjectsfundedbythissectionmustcomplywithwaterqualitypoliciesorregulationsadoptedbytheStateboardortheregionalwaterqualitycontrolboardwithjurisdictionovertheproject.

(c)Projectcostsmayincludedevelopmentofdecisionsupporttools,dataacquisition,andgeographicinformationsystemdataanalysistoidentifyandevaluatethebenefitsandcostsofpotentialstormwatercaptureandreuseprojects.

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(d)Preferenceshallbegrantedtoprojectsthatdivertstormwaterordryweatherrunofffromstormdrainsorchannelsandputittobeneficialuse.

(e)Agenciesreceivingfundspursuanttothissectionshallgivehighprioritytoprojectsbenefittingdisadvantagedcommunities.Eachagencyreceivingfundspursuanttothischaptershallallocateatleastthirty-fivepercent(35%)ofthefundstheyreceiveforprojectsthatbenefitdisadvantagedcommunities.

(f)Inimplementingthischapter,eachagencyreceivingfundspursuanttothischaptershallconsultwiththeNaturalResourcesAgencyregardingtheintegrationandprioritizationofthehabitat,parkland,openspace,recreationalandpublicusecomponentsofstormwateranddryweatherrunoffcaptureandreuseprojects,andshallseekassistancefromtheNaturalResourcesAgencyinthereviewandscoringofproposedprojects.

(g)Projectsmaypreventstormwateranddryweatherrunofffromenteringstormdrainsorchannels.

86052.Entitiesdefinedinsubdivision(a)ofSection86166areeligibletoreceivefundsundersubdivisions(b),(c),(d)and(e)ofSection86050.

86053.Fundsallocatedpursuanttothischaptermaybegrantedtoaneligibleapplicantforsingleormultiplesmall-scaleprojectsthatareconsistentwithChapter6.5ofDivision2oftheFishandGameCode,regardlessofwhetherthatChapterisstillineffect.

Chapter5.7.IntegratedRegionalWaterManagement.

86054.Thesumoffivemilliondollars($5,000,000)isallocatedtothedepartmenttoprovidedirectfundingsupporttoapprovedIntegratedRegionalWaterManagement(IRWM)regionalwatermanagementgroupsforthepurposeofmaintainingongoingIRWMplanningandimplementationefforts,therebysustainingthesignificantinvestmentmadethroughIRWMforregionalcollaborationonwatermanagement.

CHAPTER6.Watershed,Land,andFisheriesImprovements.

CHAPTER6.1.WatershedImprovementforWaterSupplyandWaterQualityEnhancement.

86080.Thesumoftwobillionthreehundredfifty-fivemilliondollars($2,355,000,000)isappropriatedfromtheFundtoprotect,restoreandimprovethehealthofwatershedlands,includingforestlands(includingoaks,redwoodsandsequoias),meadows,wetlands,chaparral,riparianhabitatandotherwatershedlands,includinglandsownedbytheUnitedStates,inordertoprotectandimprovewatersupplyandwaterquality,improveforesthealth,reducefiredangerconsistentwiththebestavailablescience,mitigatetheeffectsofwildfiresonwaterqualityandsupply,increasefloodprotection,remediateaquifers,ortoprotectorrestoreriparianoraquaticresources.Nograntsmadepursuanttothissectionshallbeforreservoirmaintenanceorsedimentremovalfromareservoirorupstreamofareservoir,exceptasnecessaryforfieldresearchrequiredpursuanttosubdivision(a).Fundsshallbeallocatedasfollows:

(a)Twohundredmilliondollars($200,000,000)totheSierraNevadaConservancyfortheprotection,restorationandimprovementofSierraNevadawatersheds,pursuanttoDivision23.3(commencingwithSection33300)ofthePublicResourcesCodeandincludingthepurposesoutlinedinSection33320ofthePublicResourcesCode.Fundsshallalsobespentfortheimplementationandtofurtherthegoalsand

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purposesoftheSierraNevadaWatershedImprovementProgram.ProjectseligibleforfundingundertheSierraNevadaWatershedImprovementProgrammayincluderesearchandmonitoringtomeasuretheimpactofforestrestorationworkonwatersupply,climateandotherbenefits,includinglong-termairquality,waterqualityandquantity,greenhousegasemissions,carbonstorage,habitat,recreationaluses,andcommunityvitality.ProjectsfundedundertheSierraNevadawatershedImprovementProgramshallbebasedonthebestavailablescienceregardingforestrestorationandmustbeundertakentoimprovewatersupplyandquality,protectandrestoreecologicalvaluesandtopromoteforestconditionsthataremoreresilienttowildfire,climatechange,andotherdisturbances.TheSierraNevadaConservancymaymakegrantstofederalagenciesifitdeterminessuchgrantsarethemostefficientwaytoimplementtheintentofthisdivisiononfederallymanagedlands.

(b)Sixtymilliondollars($60,000,000)totheCaliforniaTahoeConservancyfortheprotectionandrestorationofwatershedsoftheLakeTahoeBasin,pursuanttoTitle7.42(commencingwithSection66905)oftheGovernmentCode.FundsshallbespentforimplementationandtofurtherthegoalsandpurposesoftheLakeTahoeEnvironmentalImprovementProgram,pursuanttoArticle6ofChapter1.692ofDivision5(commencingwithSection5096.351)ofthePublicResourcesCode.

(c)Onehundredmilliondollars($100,000,000)totheSanFranciscoBayAreaConservancyProgramoftheCoastalConservancyfortheprotectionandrestorationofwatershedsoftheSanFranciscoBayArea,pursuanttoChapter4.5ofDivision21ofthePublicResourcesCode(commencingwithSection31160).

(d)Onehundredeightymilliondollars($180,000,000)fortheprotectionandrestorationofwatershedsofLosAngeles,Ventura,andOrangeCountiesasfollows:

(1)Sixtymilliondollars($60,000,000)totheSanGabrielandLowerLosAngelesRiversandMountainsConservancyfortheprotectionandrestorationofthewatershedsoftheSanGabrielandLowerLosAngelesRiverspursuanttoDivision22.8(commencingwithSection32600)ofthePublicResourcesCode.

(2)Sixtymilliondollars($60,000,000)totheSantaMonicaMountainsConservancy,fortheprotectionandrestorationofthewatershedsofSantaMonicaBay,theUpperLosAngelesRiverandtheUpperSantaClaraRiverpursuanttoDivision23(commencingwithSection33000)ofthePublicResourcesCode,andthewatershedsdefinedinsubdivision(c)ofSection79570.

(3)Thirtymilliondollars($30,000,000)totheSantaAnaRiverConservancyProgramoftheCoastalConservancyfortheprotectionandrestorationofwatershedsoftheSantaAnaRiverpursuanttoChapter4.6ofDivision21ofthePublicResourcesCode(commencingwithSection31170).

(4)Thirtymilliondollars($30,000,000)totheBaldwinHillsConservancyfortheprotectionandrestorationoftheBaldwinHillsandBallonaCreekwatersheds,andforprojectstocapturedryweatherrunoffandstormwaterrunoffpursuanttoDivision22.7(commencingwithSection32550)ofthePublicResourcesCode.

(e)Fortymilliondollars($40,000,000)totheSanDiegoRiverConservancyfortheprotectionandrestorationofwatershedsinSanDiegoCountypursuanttoDivisionof22.9(commencingwithSection32630)ofthePublicResourcesCode.

(f)Onehundredthirty-fivemilliondollars($135,000,000)totheStateCoastalConservancyfortheprotectionandrestorationofcoastalwatershedspursuanttoDivision21(commencingwithSection

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31000)ofthePublicResourcesCode.

(g)Onehundredfiftymilliondollars($150,000,000)fortheprotectionandrestorationofthewatershedsoftheSacramentoandSanJoaquinRiversasfollows:

(1)Onehundredmilliondollars($100,000,000)totheSacramento-SanJoaquinDeltaConservancyforprotectionandrestorationoftheDeltapursuanttoDivision22.3(commencingwithSection32300)ofthePublicResourcesCode.Highestpriorityshallbegiventoprojectsthatbenefittherestorationofnativespeciesandthatreducethenegativeimpactsofexcessivesalinityintrusion.HighestpriorityshallalsobegiventoprojectsthatrestorehabitatimportanttospecieslistedpursuanttothefederalEndangeredSpeciesAct(16U.S.C.Chapter35)andtheCaliforniaStateEndangeredSpeciesAct(FishandGameCodeSections2050-2100).ThefundsmayalsobeusedforimprovementofpublicrecreationalfacilitiesintheDelta,andforgrantstolocalagenciesandnonprofitorganizationstoincreasecommunityaccesstoparksandrecreationalopportunitiesforunderservedurbancommunitiesintheDelta.TheConservancymayimplementprogramsdesignedtoreducegreenhousegasemissionsfromtheDelta.

(2)Twentymilliondollars($20,000,000)totheSanJoaquinRiverConservancyfortheimplementationoftheSanJoaquinRiverParkwaypursuanttoDivision22.5(commencingwithSection32500)ofthePublicResourcesCode.

(3)Thirtymilliondollars($30,000,000)totheLowerAmericanRiverConservancyFundcreatedbySection5845.9ofthePublicResourcesCode.TheWildlifeConservationBoardshallusethesefundstoimplementChapter10.5ofDivision5ofthePublicResourcesCode(commencingwithSection5845).

(h)Onehundredandseventymilliondollars($170,000,000)forriverparkways,asfollows:

(1)Seventymilliondollars($70,000,000)totheCaliforniaNaturalResourcesAgencyforprojectspursuanttheCaliforniaRiverParkwaysActof2004,Chapter3.8(commencingwithSection5750)ofDivision5ofthePublicResourcesCode.TheSecretaryoftheNaturalResourcesAgencyshallallocateatleastsixty-fivepercent(65%)ofthesefundsforprojectsthatbenefitdisadvantagedcommunities.Withtheremainingfunds,theSecretaryshallseektobenefitpoorercommunitiesthatdonotqualifyasdisadvantagedcommunities.

(2)Tenmilliondollars($10,000,000)totheStateCoastalConservancyforgrantstononprofitorganizationsandlocalpublicagenciestoimplementriverparkwayprojectsforhabitatrestoration,publicrecreation,andwaterqualityimprovementalongtheGuadalupeRivercorridor.

(3)Tenmilliondollars($10,000,000)totheStateCoastalConservancyforgrantstononprofitorganizationsandlocalpublicagenciestoimplementriverparkwayprojectsforhabitatrestoration,publicrecreation,andwaterqualityimprovementalongtheRussianRivercorridor.

(4)Tenmilliondollars($10,000,000)totheStateCoastalConservancyforgrantstononprofitorganizationsandlocalpublicagenciestoimplementriverparkwayprojectsforhabitatrestoration,publicrecreation,andwaterqualityimprovementalongtheSantaClaraRivercorridor.

(5)Tenmilliondollars($10,000,000)totheStateCoastalConservancyforgrantstononprofitorganizationsandlocalpublicagenciestoimplementriverparkwayprojectsforhabitatrestoration,publicrecreation,andwaterqualityimprovementalongtheTijuanaRivercorridor.

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(6)Tenmilliondollars($10,000,000)totheStateCoastalConservancyforgrantstononprofitorganizationsandlocalpublicagenciestoimplementriverparkwayprojectsforhabitatrestoration,publicrecreation,andwaterqualityimprovementalongtheCarmelRivercorridor.

(7)Tenmilliondollars($10,000,000)totheStateCoastalConservancyforgrantstononprofitorganizationsandlocalpublicagenciestoimplementriverparkwayprojectsforhabitatrestoration,publicrecreation,andwaterqualityimprovementalongtheNapaRivercorridor.

(8)Fifteenmilliondollars($15,000,000)totheStateCoastalConservancyforriverparkwayprojectswithintheSanDiegoBaywatershed.

(9)Fifteenmilliondollars($15,000,000)totheStateCoastalConservancyforriverparkwayprojectsalongtheSantaMargaritaRiverinSanDiegoCounty.

(10)Tenmilliondollars($10,000,000)totheCaliforniaTahoeConservancytoimplementhabitatrestoration,publicrecreation,andwaterqualityimprovementsalongtheUpperTruckeeRivercorridor.(i)Onehundredfiftymilliondollars($150,000,000)shallbeavailableforprojectsthatrestore,protectandpreservetheLosAngelesRiveranditstributaries,asfollows:

(1)Seventy-fivemilliondollars($75,000,000)totheSanGabrielandLowerLosAngelesRiversandMountainsConservancypursuanttoDivision22.8(commencingwithSection32600)ofthePublicResourcesCode,andSection79508oftheWaterCode.

(2)Seventy-fivemilliondollars($75,000,000)totheSantaMonicaMountainsConservancypursuanttoDivision23(commencingwithSection33000)ofthePublicResourcesCode,andSection79508oftheWaterCode.

(j)Threehundredmilliondollars($300,000,000)totheWildlifeConservationBoardforthe following:

(1)FortheprotectionandrestorationofthewatershedsoftheSacramento,Smith,Eel,andKlamathRiversandotherriversofMarin,Sonoma,Mendocino,HumboldtandDelNorteCounties,andtheCarrizoPlainpursuanttoChapter4ofDivision2(commencingwithSection1300)oftheFishandGameCode.

(2)ForprotectionandrestorationofoakwoodlandsandrangelandspursuanttoDivision10.4(commencingwithSection10330)ofthePublicResourcesCodeandArticle3.5(commencingwithSection1360)ofChapter4ofDivision2oftheFishandGameCode.

(3)Foracquisitionandrestorationofriparianhabitat,migratorybirdhabitat,anadromousfisheries,wetlandhabitatandotherwatershedlandspursuanttoChapter4ofDivision2(commencingwith Section 1300) of the Fish andGameCode.

(4)GrantsmayincludefundingtohelpfulfillstatecommitmentstoimplementNaturalCommunityConservationPlansadoptedpursuanttoChapter10ofDivision3(commencingwithSection2800)oftheFishandGameCode,andtolargescaleregionalHabitatConservationPlansadoptedpursuanttothefederalEndangeredSpeciesAct(16U.S.C.Chapter35).

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(5)Oftheamountmadeavailablepursuanttothissubdivision,thesumoftenmilliondollars($10,000,000)shallbeavailabletoassistfarmersinintegratingagriculturalactivitieswithwatershedrestorationandwildlifeprotection.Priorityshallbegiventoprojectsthatincludepartnershipswithresourceconservationdistricts.

(6)Oftheamountmadeavailablepursuanttothissubdivision,thesumoffiftymilliondollars($50,000,000)isappropriatedtotheOakWoodlandsConservationFundestablishedbySection1363oftheFishandGameCode,andmaybeexpendedpursuanttoArticle3.5ofChapter4ofDivision2oftheFishandGameCode.

(7)Oftheamountmadeavailablepursuanttothissubdivision,thesumofthirtymilliondollars($30,000,000)shallbeavailableforgrazinglandprotectionpursuanttotheCaliforniaRangeland,GrazingLandandGrasslandProtectionAct,commencingwithSection10330ofDivision10.4ofthePublicResourcesCode.

(8)Oftheamountmadeavailablepursuanttothissubdivision,notlessthansixtymilliondollars($60,000,000)shallbeavailableforprojectsthatadvancetheconservationobjectivesofnaturalcommunityconservationplansadoptedpursuanttotheNaturalCommunityConservationPlanningAct,Chapter10(commencingwithSection2800)ofDivision3oftheFishandGameCode.Firstpriorityshallbegiventoplansthatincludeprotectionofaquaticecosystems.Fundingpursuanttothisparagraphshallnotbeusedtooffsetmitigationobligationsotherwiserequired.

(k)Twenty-fivemilliondollars($25,000,000)totheCoachellaValleyMountainsConservancyfortheprotectionandrestorationoftheCoachellaValleywatershedpursuanttoDivision23.5(commencingwithSection33500)ofthePublicResourcesCode.

(l)Onehundredfiftymilliondollars($150,000,000)totheDepartmentofParksandRecreationforprotectionandrestorationofwatershedlandswithinandaffectingunitsoftheStateParksSystem,withhighprioritytoredwoodandotherforestlandimportanttoprotectingriverandstreamflowsandquality.Inadditiontootherpurposesauthorizedpursuanttothissection,theDepartmentofParksandRecreationmayallocatefundstoimproveandincreasetheefficiencyandeffectivenessofStateParkwatersupplyandwastewatertreatmentsystems.

(m)Sixtymilliondollars($60,000,000)totheDepartmentofConservationforwatershedrestorationandconservationprojectsonagriculturallands,rangelands,managedwetlands,andforestedlands.

(1)Nolessthanthirteenmilliondollars($13,000,000)shallbeusedforgrantspursuanttoSection9084ofthePublicResourcesCode.

(2)Nolessthanthirty-onemilliondollars($31,000,000)shallbeusedforthepurposesofDivision10.2(commencingwithSection10200)ofthePublicResourcesCode.

(3)Tenmilliondollars($10,000,000)shallbeusedfortheWatershedCoordinatorGrantProgram.

(n)Onehundredmilliondollars($100,000,000)totheCaliforniaOceanProtectionCouncilforprojectsthat:(1)reducetheamountofpollutantsthatflowtobeaches,bays,coastalestuaries,andnear-shoreecosystems;and(2)protectcoastalandnear-shoreoceanresourcesfromtheimpactsofrisingsealevels,stormsurges,oceanacidificationandrelatedhazards,including,butnotlimitedto,increasingtheresiliencyofnear-shoreoceanhabitats.Projectsmayinclude,butarenotlimitedto,projectsthatprotect

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orrestorebeaches,coastalestuariesandwatersheds,bays,andnear-shoreecosystemsincludingmarineprotectedareas.Ofthisamount,theCouncilshalluseatleastfivemilliondollars($5,000,000)fortheLocalCoastalProgramsealevelrisegrantprogramthatsupportsLocalCoastalProgramupdatestoaddresssealevelrise,includingsea-levelrisemodeling,vulnerabilityassessments,andadaptationplanningandpolicydevelopment.

(o)Thesumoftwohundredmilliondollars($200,000,000)isappropriatedfromtheFundtotheNaturalResourcesAgency,forwater-relatedprojectsthatimplementtheNaturalResourcesAgency’sSaltonSeaManagementProgramconsistentwithprovisionsofArticle2(commencingwithSection2940)ofChapter13ofDivision3oftheFishandGameCode,andinfulfillmentoftheobligationsoftheStateofCaliforniatocomplywiththetermsofChapters611,612,613,and614oftheStatutesof2003.ThesestatuteswereenactedtofacilitatetheexecutionandimplementationoftheQuantificationSettlementAgreement,includingrestorationoftheSaltonSea.TheNaturalResourcesAgencymayexpendthesefundsonprojectsthatprovidemultiplebenefitsofecosystemrestoration,airqualityimprovement,andeconomicrecoveryforseverelydisadvantagedcommunities.

(1)Oftheamountappropriatedpursuanttothisparagraph,notlessthantwentymilliondollars($20,000,000)shallbeavailableforpurposesconsistentwiththeNewRiverWaterQuality,PublicHealth,andRiverParkwayDevelopmentProgram,asdescribedinSection71103.6ofthePublicResourcesCode.

(2)Oftheamountallocatedpursuanttothissection,thesumofonemilliondollars($1,000,000)shallbeavailableforaSaltonSeaIntegratedWatershedPlanprovidingtechnicalassistancefor,outreachto,andengagementwithseverelydisadvantagedcommunities.

(p)Fivemilliondollars($5,000,000)totheDeltaStewardshipCouncilfortheDeltaScienceProgramasdescribedinSection85280.

(q)Fiftymilliondollars($50,000,000)tothedepartmentforUrbanStreamsRestorationProgramcompetitivegrantspursuanttoSection7048.Thedepartmentshallallocateatleastsixty-five(65%) ofthese funds for projects that benefit disadvantaged communities.Withtheremainingfunds,thedepartmentshallseektobenefitpoorercommunitiesthatdonotqualifyasdisadvantagedcommunities.

(r)Twentymilliondollars($20,000,000)totheCaliforniaDepartmentofForestryandFireProtectionforgrantsforurbanforestryprojectsthatmanage,captureorconservestormwater,rechargelocalgroundwatersuppliesorimprovewatersuppliesorwaterqualitythroughinfiltration,sedimentmanagementanderosioncontrolpursuanttotheCaliforniaUrbanForestryAct,Chapter2(commencingwithSection4799.06)ofPart2.5ofDivision4ofthePublicResourcesCode.

(s)Fifteenmilliondollars($15,000,000)totheDeltaProtectionCommissionforexpenditures,grants,orloansforprojectsthatimprovewaterqualitybyimprovingwastewatertreatmentinDeltalegacycommunities(asdescribedinsection32301(f)ofthePublicResourcesCode)andatrecreationalfacilitiesintheDelta.FundsmaybeexpendedonwastewaterimprovementprojectsservingDeltalegacycommunities,orDeltalegacycommunityhouseholdswithfailingsepticsystemswhichthreatenthequalityofgroundwaterorsurfacewatersuppliesusedforurban,agriculturalorfisheriespurposes.FundsmayalsobeallocatedtoimproveandincreasetheefficiencyandeffectivenessofDeltarecreationalfacilitywastewatertreatmentsystems.Priorityshallbegiventoprojectsthataddresspublichealthhazards.Projectsmayidentify,plan,design,andimplementregionalmechanismstoconsolidatewastewatersystemsorprovideaffordabletreatmenttechnologies.

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(t)Twentymilliondollars($20,000,000)totheDepartmentofParksandRecreationforprojectsthatprovideaccesstoriversfornon-motorizedrecreation,andforgrantstoeligibleentitiesasdefinedinsubdivision(a)ofSection86166forthispurpose.Firstpriorityshallbegiventoprojectsthatincludematchingfunds,andtoprojectsthatservedisadvantagedcommunitiesandeconomicallydistressedareas,whetherornottheyincludecostsharing.

(u)(1)Twentymilliondollars($20,000,000)totheWildlifeConservationBoardfortheconstructionofaPacificFlywayCenterinthevicinityoftheSuisunMarsh,tobeoperatedbytheCaliforniaDepartmentofFishandWildlife.TheDepartmentofFishandWildlifemaycontractwithanonprofitorganizationtooperatetheCenter.TheCentershallbeusedtoeducatethepublicabouttheimportanceofCalifornia’swetlands,agriculturallands(includingrice)andriparianareasinbenefittingwaterfowl,shorebirds,nativeplantsandanimals,thevalueofwetlandsinabsorbinggasesthatcauseclimatechange,andsimilareducationalpurposes.TheoperatoroftheCentershallmakespecialeffortstobringpeople,andespeciallystudents,fromdisadvantagedcommunitiestotheCenterforeducationalpurposes.IftheWildlifeConservationBoarddeterminesthatallorpartofthesefundsisnotneededtocompletethisproject,itmayallocatetheunneededpartofthefundstothepurposesofparagraph(j)ofthissection.

(2)(A)Oftheamountappropriatedbyparagraph(1),theWildlifeConservationBoardmaymakeagrantofuptofourmilliondollars($4,000,000)toanonprofitorganizationwhoseprincipalpurposeiswildlifeconservationtoestablishatrustfund,theinterestfromwhichshallbeusedexclusivelytooperatethePacificFlywayCenterandbringpeoplefromdisadvantagedcommunitiestotheCenter.

(B)WiththeapprovaloftheDepartmentofFishandWildlife,thenonprofitorganizationcantransfertheoperationofthePacificFlywayCentertoanothernonprofitorganization.Ifsuchatransfertakesplace,thetrustfundshallbetransferredtothenewnonprofitorganization.

(3)IfthefundsallocatedbythissectionarenotallusedtoconstructthePacificFlywayCenterbyJanuary1,2028,anyremainingfundsareappropriatedtotheWildlifeConservationBoardforthepurposesofSection86123.

(v)Eightymilliondollars($80,000,000)totheCoastalConservancyfortheremovalofMatilijaDam,andforassociatedleveeandfloodcontrolimprovements,watersupplyimprovements,andrelatedprojectsonMatilijaCreekandtheVenturaRiver,andforriverparkwayprojectsalongtheVenturaRiver.TheConservancymaygrantallorpartofthesefundstoVenturaCounty.Highestpriorityfortheriverparkwayprojectsshallbethosewhichbenefitdisadvantagedcommunities.IftheCoastalConservancydeterminesthatallorpartofthesefundsisnotneededtocompletethisproject,itmayallocatetheunneededpartofthefundstothepurposesofparagraph(f)ofthissection.

(w)Thesumoftwenty-fivemilliondollars($25,000,000)totheUniversityofCaliforniafortheNaturalReserveSystemformatchinggrantsforlandacquisitionandfortheconstructionanddevelopmentoffacilitiesthatwillbeusedforresearchandtrainingtoimprovethemanagementofaquaticecosystems,naturallandsandthepreservationorconservationofCalifornia’swildliferesources.Priorityshallbegiventoprojectsthatadvanceresearchontheimpactsofclimatechange,reductionofgreenhousegasemissions,andadaptationofnaturalsystemstotheimpactsofclimatechange.

(x)(1)Thesumoffiftymilliondollars($50,000,000)isappropriatedfromtheFundtotheSierraNevadaConservancyforthepurposeofawardinggrantswithinthejurisdictionoftheConservancytoeligibleentitiesasdefinedinsubdivision(a)ofSection86166forthepurposeofreducingthethreatofwildfireswhichwouldnegativelyimpactwatershedhealth.Projectsmaybeforthepurposeofhazardousfuel

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reduction,postfirewatershedrehabilitation,forestmanagementpracticesthatpromoteforestresiliencetoseverewildfire,climatechange,andotherdisturbances,anddevelopmentoflocalplanstoreducetheriskofwildfiresthatcouldadverselyaffectwatershedhealth.Preferenceshallbegiventograntswhichincludematchingfunds,butthispreferencemaybereducedoreliminatedforgrantswhichbenefitdisadvantagedcommunitiesoreconomicallydistressedareas.

(2)Thesumoffiftymilliondollars($50,000,000)isappropriatedfromtheFundtotheDepartmentofForestryandFireProtectionforthepurposeofawardinggrantsinareasoutsidethejurisdictionoftheSierraNevadaConservancytoeligibleentitiesasdefinedinsubdivision(a)ofSection86166forthepurposeofreducingthethreatofwildfireswhichwouldnegativelyimpactwatershedhealth.Projectsmaybeforthepurposeofhazardousfuelreduction,postfirewatershedrehabilitationandrestoration,forestmanagementpracticesthatpromoteforestresiliencetoseverewildfire,climatechange,andotherdisturbances,anddevelopmentoflocalplanstoreducetheriskofwildfiresthatcouldadverselyaffectwatershedhealth.Preferenceshallbegiventograntswhichincludematchingfunds,butthispreferencemaybereducedoreliminatedforgrantswhichbenefitdisadvantagedcommunitiesoreconomicallydistressedareas.

86083.Consistentwiththeotherrequirementsofthischapter,fundsspentpursuanttothischaptermaybeusedforgrantstoeligibleentitiesasdefinedinsubdivision(a)ofSection86166.Fundsawardedtoeligibleentitiesmaybeusedforprojectsonlandownedbyastateorfederalagency.Withtheexceptionoffundsallocatedtograntprograms,fundsmayalsobeuseddirectlybythestateagencyreceivingthefundstoimplementwatershedimprovementprojectsconsistentwiththischapter.Inmakinggrantspursuanttothischapter,agenciesshallgivehighprioritytoapplicationsthatincludecostsharing,andtograntsthatbenefitdisadvantagedcommunitiesandeconomicallydistressedareaswhetherornottheyincludecostsharing.

86084.(a)Foraprojecttobeeligibleforfundingpursuanttothischapter,theprojectshallhavewatershedprotectionandrestoration,watersupplyorwaterqualitybenefits,orecosystembenefitsrelatingtorivers,streams,forests,meadows,wetlandsorotherwater-relatedresources.

(b)(1)Fundsappropriatedpursuanttothischaptermaybeusedforprotectionandrestorationofforests,meadows,wetlands,riparianhabitat,coastalresources,andnear-shoreoceanhabitat;toacquirelandandeasementstoprotecttheseresourcesandavoiddevelopmentthatmayreducewatershedhealth,andtotakeothermeasuresthatprotectorimprovethequalityorquantityofwatersuppliesdownstreamfromprojectsfundedinwholeorinpartbythischapter.Forestrestorationprojects,includingbutnotlimitedtohazardousfuelreduction,post-firewatershedrehabilitation,andforestmanagementandtreeplantingusingappropriatenativeplantsshallbebasedonthebestavailablescienceregardingforestrestorationandmustbeundertakentoprotectandrestoreecologicalvaluesandtopromoteforestconditionsthataremoreresilienttowildfire,climatechange,andotherdisturbances.

(2)FuelhazardreductionactivitiesonUnitedStatesForestServicelandsintheSierraNevadaandsimilarforesttypesshallbegenerallyconsistentwithobjectivesoftheSierraNevadaWatershedImprovementProgramandthebestavailablescience,includingUnitedStatesForestServiceGeneralTechnicalReport220asitmaybeupdated.

86085.Anyentityreceivingfundspursuanttothischapterthatexpendsfundsonprivatelandsshallsecureanagreementorinterestintheprivatelandstoassurethepurposeoftheexpenditureismaintainedforsuchtimeasiscommensuratewiththebestpracticesforthetypeofproject.

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86086.(a)(1)Alocalpublicagency,Indiantribeornonprofitorganizationthatreceivesfundingforaprojectpursuanttothischaptermayuseuptotwentypercent(20%)ofthosefundstoestablishatrustfundthatisexclusivelyusedtohelppayforthemaintenanceandmonitoringofthatproject.

(2)Alocalpublicagency,Indiantribeornonprofitorganizationthatacquiresaninterestinaprojectwithmoneyfromthischapterandtransferstheinterestintheprojecttoanotherpublicagency,Indiantribeornonprofitorganizationshallalsotransfertheownershipofthetrustfundthatwasestablishedtomaintainthatinterestintheproject.

(3)Thissubdivisiondoesnotapplytostateagencies.

(b)Ifthelocalpublicagency,Indiantribeornonprofitorganizationdoesnotestablishatrustfundpursuanttosubdivision(a),theagency,tribeororganizationshallcertifytothestateagencymakingthegrantthatitcanmaintaintheprojecttobeundertakenusingfundsotherwiseavailabletotheagency,tribeororganization.

(c)Theinterestfromthetrustfundshallbeusedonlytomonitortheimplementationofaproject,andmaintainaprojectanditswatersupplyandwaterqualitybenefitsimplementedpursuanttothischapter.

(d)Ifaninterestinaprojectiscondemnedorifthelocalpublicagency,Indiantribeornonprofitorganizationdeterminesthattheinterestintheprojectisunabletofulfillthepurposesforwhichmoneyfromthischapterwasexpended,thetrustfundandanyunexpendedinterestareappropriatedandshallbereturnedtotheagencythatprovidedthemoney.Thefundsreturnedtotheagencymaybeutilizedonlyforprojectspursuanttothischapter.

86087.Fundsallocatedpursuanttothischaptermaybegrantedtoaneligibleapplicantforsingleormultiplesmall-scaleprojectsthatareconsistentwithChapter6.5ofDivision2oftheFishandGameCode,regardlessofwhetherthatChapterisstillineffect.

86088.ByApril30,2019,theNaturalResourcesAgencyshallrecommendprovisionsforgrantapprovalguidelinestoeachstateagencythatreceivesanappropriationpursuanttothischapterinordertoensureappropriateconsistencyoftheguidelines.EachagencyshallconsidertherecommendationsoftheNaturalResourcesAgencyastheyadopttheirownguidelines.

86089.Agenciesreceivingfundspursuanttothischaptershallgivehighprioritytoprojectsthatbenefitthenativewildlife,birdsandfishesofCalifornia.

CHAPTER6.2.LandandWaterManagementforWaterSupplyImprovement.

86090.Thesumofonehundredmilliondollars($100,000,000)isappropriatedfromtheFundtotheWildlifeConservationBoardforthepurposeofawardingcompetitivegrantstoeligibleentitiesasdefinedinsubdivision(a)ofSection86166toimprovethequalityofpublicandprivaterangelands,wildlands,meadows,wetlands,riparianareasandaquaticareasforthepurposeofincreasinggroundwaterrechargeandwatersupplyfromthoselands,andforimprovingwaterqualityconsistentwithprotectingandrestoringecologicalvalues.

86091.Fundsallocatedpursuanttothischaptermaybegrantedtoaneligibleapplicantforsingleormultiplesmall-scaleprojectsthatareconsistentwithChapter6.5ofDivision2oftheFishandGameCode,

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regardlessofwhetherthatChapterisstillineffect.

86094.Inmakinggrantspursuanttothischapter,theWildlifeConservationBoardshallgivehighestprioritytoprojectswhich:

(a)Aremostcost-effectiveinproducingimprovedwatersupplyorwaterquality,andwhichprovidethegreatestfishandwildlifebenefits.

(b)Includematchingfunds.

(c)Benefitdisadvantagedcommunitiesandeconomicallydistressedareas.

(d)Areforthepurposeofinvasiveplantcontrolanderadication,restorationofriparianhabitat,meadowsandwetlands,andotherprojectsthatimprovetheflowofwaterfromthelands,andreducetheuseofwaterbyinvasiveplantspecies.

86096.Foraprojecttobeeligibleforfundingpursuanttothischapter,theprojectshallhavewatersupplyorwaterqualitybenefitsorboth.Aprojectthattargetstheremovalofinvasiveplantstoincreasewatersupplyshallonlybefundediftheapplicantguaranteesthatthelandfromwhichplantswillberemovedwillbemaintained.

86097.(a)(1)Alocalpublicagency,Indiantribeornonprofitorganizationthatreceivesfundingunderthischaptermayuseuptotwentypercent(20%)ofthosefundstoestablishatrustfundthatisexclusivelyusedtohelppayforthemaintenanceandmonitoringofthefundedproject.

(2)Alocalpublicagency,Indiantribeornonprofitorganizationthatundertakesaprojectwithmoneyfromthisdivisionandcannolongermaintaintheprojectshalltransfertheownershipofthetrustfundtoanotherpublicagency,Indiantribeornonprofitorganizationthatiswillingandabletomaintainthatproject.

(3)Thissubdivisiondoesnotapplytostateagencies.

(b)Ifthelocalpublicagency,Indiantribeornonprofitorganizationdoesnotestablishatrustfundpursuanttosubdivision(a),theagency,tribeororganizationshallcertifytothestateagencymakingthegrantthatitcanmaintaintheprojectinanappropriatecondition.

(c)Theinterestfromthetrustfundestablishedfromthefundsavailablepursuanttothissectionshallbeusedonlytomaintainaprojectanditswatersupplyandwaterqualitybenefitsimplementedpursuanttothischapter.

(d)Iftheinterestinaprojectiscondemnedorifthelocalpublicagency,Indiantribeornonprofitorganizationdeterminesthattheinterestintheprojectisunabletofulfillthepurposesforwhichmoneyfromthischapterwasexpended,thetrustfundandanyunexpendedinterestareappropriatedandshallbereturnedtotheWildlifeConservationBoard.Thefundsreturnedmaybeutilizedonlyforprojectsauthorizedbythischapter.

86098.Inimplementingthischapter,theWildlifeConservationBoardmayprovideincentivestolandownersforconservationactionsonprivatelandsoruseofvoluntaryhabitatcreditexchangemechanisms.

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86099.Atleasttenpercent(10%)ofthefundsavailablepursuanttothissectionshallbeallocatedforprojectsthatprovideadirectbenefittodisadvantagedcommunities.Thesebenefitsmayincluderangeimprovement,amongotherbenefits.Theseprojectsmayincludetechnicalassistancefor,outreachto,andengagementwithdisadvantagedcommunities.

CHAPTER6.3.ConservationCorps.

86105.Thesumoffortymilliondollars($40,000,000)isappropriatedfromtheFundtotheCaliforniaConservationCorpsforprojectstoprotect,restore,andimprovethehealthofwatershedlands,includingforestlands,meadows,wetlands,chaparral,riparianhabitatandotherwatershedlands.Projectsmayinclude,butarenotlimitedto,regionalandcommunityfuelhazardreductionprojectsonpubliclands,invasivespeciesremoval,andstream,river,andriparianrestorationprojects.TheCaliforniaConservationCorpsshallallocateatleastfiftypercent(50%)ofthefundspursuanttothissectionforgrantstocertifiedlocalconservationcorps.Projectsshallimprovewaterquality,watersupplyreliability,orriparianorwatershedhealth.Projectsshallbeundertakenincoordinationwithanonprofitorganizationorpublicagency.

CHAPTER6.4.CentralValleyFisheriesRestoration.

86106.(a)ThepeopleofCaliforniafindanddeclarethattheprotection,restorationandenhancementofnativefishpopulations(includinganadromoussalmonids)oftheCentralValleyisnecessaryfortheecologicalandeconomichealthoftheStateofCalifornia.

(b)Fishneedbothsuitablehabitatandappropriatelytimedflowsinriversandtheirtributaries.

(c)TheStateWaterResourcesControlBoardshalltakenoteofthefundingprovidedbythischapterandtheresultingfishhabitatrestorationastheBoarddeterminesflowsnecessarytorestoreCentralValleynativefishpopulationsandfisheries.

(d)Manystateandfederalagencies,includingtheDepartmentofWaterResources,DepartmentofFishandWildlife,DeltaStewardshipCouncil,DeltaConservancy,WildlifeConservationBoard,CentralValleyFloodProtectionBoard,andfederalBureauofReclamation,UnitedStatesFishandWildlifeService,andNationalMarineFisheriesServicehavepreparedpoliciesandplanstorestoreCentralValleynativefishandfisherieshabitat,butthesepoliciesandplansarenotfullyfunded.

(e)ManystateandfederallawsrequiretherestorationofCentralValleynativefishpopulationsandfisherieshabitat,butfundinghasnotbeenfullyavailabletocarryouttherequirementsoftheselaws.

(f)Thesumoffourhundredmilliondollars($400,000,000)isappropriatedfromtheFundtotheCaliforniaNaturalResourcesAgencyfortherestorationofCentralValleypopulationsofnativefishandfisherieshabitat.

(1)(A)TheSecretaryoftheNaturalResourcesAgencyshallappointaCentralValleyFisheriesAdvisoryCommitteemadeupofrepresentativesfromtheCentralValleySalmonHabitatPartnership,appropriatelocal,stateandfederalfishandwatermanagementandotheragencies,nonprofitorganizations,commercialfishingorganizations,universities,localagenciesandIndiantribeswithrelevantscientificexpertiseincludingrepresentationfromtheupperwatersheds.ThecommitteeshalladvisetheSecretaryontheannualexpenditureoffundsappropriatedpursuanttothisChapter.The

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committeemaysolicitprojects,anddirectthecreationofprojectspursuanttothischapter,subjecttoapprovalbytheSecretary.

(B)ThecommitteeshallworkcloselywithrepresentativesfromeachriverbasinintheCentralValley,includinglocalgovernmentandwateragencies,Indiantribes,andnonprofitorganizations,todevelopprojectsthataremostsuitablefortheconditionsinthebasin,andwhichmeettheotherrequirementsofthissection.

(C)Inproposingprojects,thecommitteeshalltakeintoaccounttheentirelifecycleofthefishspeciestobebenefitted,andshallconsidertheinteractionoftheeffectsofeachprojectwithinariverbasinwithprojectsinotherriverbasins.Thecommitteeshallalsoconsideradverseimpactsresultingfrompoorwatershedhealth,includingseverewildfireandextensivetreemortality.

(2)Projectsfundedpursuanttothissectionshallincreaseself-sustainingpopulationsofnativefish,orcontributetoanexistingfishpopulationbecomingself-sustaininginthefuture,withaminimalrequirementofexpenditurestocontinuetooperatetheproject.Nofundsmaybeexpendedonfishhatcheries.

(3)Thecommitteeshallgivehighprioritytoprojectsthatprovidemultiplebenefits,suchasimprovedfloodmanagement,improvedwaterquality,improvedwatersupply,enhancedgroundwatersustainability,aquiferremediationandreductionofemissionofgreenhousegases,whilealsoimprovingconditionsfornativefishspeciesandtheirhabitats.Thecommitteeshallalsogivehighprioritytoprojectsthatcanbeintegratedintoanexistingflowregimeandprovidemulti-speciesbenefitsoverarangeofflowconditions.ThecommitteeshallalsogivehighprioritytoprojectsthatareconsistentwithrecoveryplanandresiliencystrategiesfornativeCaliforniafishspecies.

(4)Expendituresshallbeforcapitaloutlayprojects,suchasconservationeasements,watermeasurementneededtomeasuretheeffectsoftheproject,projectsthatrestoreorenhancefisherieshabitatsuchasfloodplainexpansion,reintroductionsoffishintotheirhistoricalhabitat,improvedfishpassageopportunities,creationorenhancementofspawningandrearinghabitatandotherprojects.Acquisitionoflandoreasementsaspartofafisheriesenhancementprojectmustbefromwillingsellers.Projectcostsshallincludethecostsofplanning,environmentalreview,mitigationoftheimpactsoftheproject,andpermitting.Highpriorityshallbegiventoprojectsthatprovideadultandjuvenilefishaccesstoorfishpassagethroughagriculturalfieldsorfloodplainhabitatsthatwillprovideenhancedjuvenilerearingandfoodproductionopportunities.

(5)Ofthefundsauthorizedbythissection,theSecretaryoftheNaturalResourcesAgencymayallocateuptotenmilliondollars($10,000,000)foroneormoregrantsforcapitaloutlayandrelatedprogrammaticpurposestoinstitutionsofhighereducationforfacilitiesthatcanbeusedtoimprovescientificandtechnicalcoordination,communicationandtrainingamongthoseinstitutions,thedepartment,theDepartmentofFishandWildlife,theStateboardandotherstateagenciestoassurethatdevelopmentsinecosystemandfisheriesscienceandmanagementaredeployedandemployedacrosshighereducationinstitutionsandstategovernmentagencies.

(g)Basedontherecommendationsofthecommittee,theSecretaryoftheNaturalResourcesAgencymaymakegrantstoanystateorlocalagency,Indiantribe,ornonprofitorganizationtocarryoutthepurposeofthissection.TheSecretaryshallgivehighprioritytoprojectsthatincludematchingfunds,projectswithalocalagencyastheleadagency,andprojectssupportingproposedactionsintheSacramentoValleySalmonResiliencyStrategy(aspublishedbytheCaliforniaNaturalResourcesAgencyinJune2017,andas

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itmaybeamended),theNationalMarineFisheriesServiceCaliforniaCentralValleySteelheadRecoveryPlanandothersimilarstrategiesastheyareadopted.(h)Oftheamountappropriatedpursuanttothissection,notlessthanthirty-fivemilliondollars($35,000,000)shallbeavailableforprojectstorestoreriversandstreamsinsupportoffisheriesandwildlife,including,butnotlimitedto,reconnectionofriverswiththeirfloodplains,riparianandside-channelhabitatrestorationpursuanttotheCaliforniaRiparianHabitatConservationProgram,Chapter4.1(commencingwithSection1385)ofDivision2oftheFishandGameCode,andrestorationandprotectionofupperwatershedforestsandmeadowsystemsthatareimportantforfishandwildliferesources.Subdivision(f)ofSection79738oftheWaterCodeappliestothissubdivision.Priorityshallbegiventoprojectssupportedbymulti-stakeholderpublicorprivatepartnerships,orboth,usingascience-basedapproachandmeasurableobjectivestoguideidentification,design,andimplementationofregionalactionstobenefitsalmonandsteelhead.(i)Oftheamountappropriatedpursuanttothissection,fivemilliondollars($5,000,000)shallbeavailabletoassistinthedevelopmentoftheCentralValleySalmonPartnershipHabitatImplementationPlan.(j)TheSecretaryshallgivehighprioritytotheremovalofDennettDamontheTuolumneRiver,ifadditionalfundsarestillneededtocompleteremovaloftheDam.(k)Alocalpublicagency,Indiantribeornonprofitorganizationreceivingfundingunderthischaptermayuseuptotwentypercent(20%)ofthosefundstoestablishatrustfund,theproceedsofwhichshallbeusedexclusivelytopayorhelppayforthemaintenanceandmonitoringoftheprojectbeingfunded.

(1)Ifthelocalpublicagency,Indiantribeornonprofitorganizationisunabletocontinuetomaintainandmonitortheproject,itmaytransferownershipofthetrustfundtoanotherpublicagency,Indiantribeornonprofitorganization,withtheapprovaloftheSecretaryoftheNaturalResourcesAgency.

(2)Thissubdivisiondoesnotapplytostateagencies.

(3)Ifthelocalpublicagency,Indiantribeornonprofitorganizationdoesnotestablishatrustfundpursuanttoparagraph(1),theagency,tribeororganizationshallcertifytotheSecretaryoftheNaturalResourcesAgencythatitcanmaintaintheprojectfromfundsotherwiseavailabletotheagency,tribeororganization.

(4)Ifallorpartoftheprojectcannotbemaintainedoriscondemned,thetrustfundandanyunexpendedinterestareappropriatedtotheCaliforniaNaturalResourcesAgency.ThefundsreturnedtotheAgencymaybeutilizedonlyforprojectspursuanttothischapter.

(l)OftheamountappropriatedtotheCaliforniaNaturalResourcesagencypursuanttothissection,sevenmilliondollars($7,000,000)isappropriatedtotheDepartmentofFishandWildlifefornativefishrestorationprojectsontheupperFeatherRiverbelowOrovilledamforgravelrestoration,streambedrestoration,andsalmonhabitatrestorationprojects.

CHAPTER7.GroundwaterSustainabilityandStorage.

86110.(a)Thesumofsixhundredseventy-fivemilliondollars($675,000,000)isappropriatedfromtheFundtothedepartmentforprojectsandprogramsthatsupportsustainablegroundwatermanagement

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consistentwithPart2.74ofDivision6(commencingwithSection10720).Thefundsshallbeusedforcompetitivegrantsthatadvancesustainablegroundwatermanagementthroughimplementationofgroundwatersustainabilityplansandprojectsthatprotect,enhance,orimprovegroundwatersupplies.Atleasttenpercent(10%)ofallgrantsmadepursuanttothisparagraphshallbemadetogroundwatersustainabilityagencieswhosegroundwaterbasinsunderliedisadvantagedcommunities.

(b)Thesumoftenmilliondollars($10,000,000)isappropriatedfromthefundtotheStateboard,forusebytheOfficeofSustainableWaterSolutionstoimplementamultidisciplinarytechnicalassistanceprogramforsmallanddisadvantagedcommunities,andsupporttheinvolvementofdisadvantagedcommunitiesandthepublicingroundwatersustainabilityagenciesandinthedevelopmentandimplementationofgroundwatersustainabilityplans.

86111.(a)Ofthefundsauthorizedbysection86110,sixhundredfortymilliondollars($640,000,000)shallbeavailableforgrantstogroundwatersustainabilityagenciesimplementinggroundwatersustainabilityplanspursuanttosubdivision(k)ofSection10721forthefollowingpurposes:

(1)Groundwaterrechargeandstorageprojectsincludingbutnotlimitedtoacquisitionoflandandgroundwaterpumpingallocationsfromwillingsellers,planningoffacilitiessuchasfeasibilitystudiesandenvironmentalcompliance,distributionsystems,andmonitoringfacilities.Nograntmadepursuanttothissectionshallexceedtwentymilliondollars($20,000,000).

(2)ProjectsthatimplementgroundwatersustainabilityplanspursuanttoPart2.74ofDivision6(commencingwithSection10720).Projectseligibleforfundingincludebutarenotlimitedtofeasibilitystudies,environmentalcompliance,engineeringworkusedtodevelopgroundwateruseandsustainableyieldforspecificprojects,wellusemeasurementandinnovativedecisionsupporttools.

(3)Projectsthatassessandaddresssaltwaterintrusionincludingfutureimpactsrelatedtoclimatechange.

(4)Matchinggrantstogroundwatersustainabilityagenciestodevelopgroundwatersustainabilityplanspursuanttosubdivision(k)ofSection10721.Nograntshallexceedonemilliondollars($1,000,000),andnogroundwatersustainabilityagencyshallreceivemorethanonegrant.

(b)Ofthefundsauthorizedbythissection,thesumoffivemilliondollars($5,000,000)shallbeavailableforresearchtoguideinvestmentsmadepursuanttothissection.Researchactivitiesmayinclude,butarenotlimitedto,geophysicalsurveys,system-levelmodelingandanalysis,developmentofnovelmethodsandtoolsthatcanbeapplicabletolocaldecision-making,cross-sectoreconomicandpolicyanalysisofnovelrechargemethods,anddevelopmentofnewapproachestosignificantlyenhancegroundwaterrechargeandfit-for-purposewatertreatmentandreuse.

(c)Ofthefundsauthorizedbythissection,thedepartmentmayallocateuptotenmilliondollars($10,000,000)forthedevelopmentofpubliclyaccessibledecisionsupporttoolstoassistgroundwatersustainabilityagenciesinconductingdrinkingwaterqualityanalysis,includingthedevelopmentandassessmentofsustainableyield,undesirableresults,measurableobjectivesandotherrequiredtargets.Thedecisionsupporttoolsshouldalsosupportvulnerabilityassessmentstohelpdeterminecommunitiesthatmaybeatriskoffacingwatersupplyorcontaminationchallenges.ThetoolsshouldbeavailableforothereffortssuchasdroughtvulnerabilityassessmentsandshallbelinkedtotheHumanRighttoWaterindicatorhousedattheStateboard.

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(d)Ofthefundsauthorizedbythissection,thedepartmentmayallocateuptofivemilliondollars($5,000,000)foroneormoregrantsforcapitaloutlayandrelatedprogrammaticpurposestoinstitutionsofhighereducationforfacilitiesthatcanbeusedtoimprovecommunicationandcoordinationamongtheseinstitutions,thedepartmentandtheStateboardinordertoassurethatdevelopmentsingroundwaterscienceandmanagementareefficientlydeployedandemployedacrosshighereducationinstitutionsandstategovernmentagencies.

(e)Alocalpublicagency,Indiantribeornonprofitorganizationreceivingfundingunderthissectionmayuseuptotwentypercent(20%)ofthosefundstoestablishatrustfundusedexclusivelytopayorhelppayforthemaintenanceandmonitoringoftheagency’sororganization’sinterestinlandacquiredpursuanttothissection.

(1)Ifthelocalpublicagency,Indiantribeornonprofitorganizationthatacquiredaninterestinlandwithmoneyfromthissectiondecidestotransferthatinteresttoanotherpublicagency,Indiantribeornonprofitorganization,theownershipofthetrustfundestablishedtomaintainthatinterestinlandshallalsobetransferred.

(2)Thissubdivisiondoesnotapplytostateagencies.

(3)Ifthelocalpublicagency,Indiantribeornonprofitorganizationdoesnotestablishatrustfundpursuanttothissubdivisiontheagency,tribeororganizationshallcertifytothestateagencymakingthegrantthatitcanmaintainthelandtobeacquiredfromfundsotherwiseavailabletotheagency,tribeororganization.

(4)Iftheinterestinlandiscondemnedorifthelocalpublicagency,Indiantribeornonprofitorganizationdeterminesthattheinterestinlandisunabletofulfillthepurposesforwhichmoneyfromthischapterwasexpended,thetrustfundandanyunexpendedinterestareappropriatedtotheagencythatprovidedthemoney.Thefundsreturnedtotheagencymaybeutilizedonlyforprojectspursuanttothischapter.

86112.(a)Thedepartmentshallgivepriorityforfundingpursuanttothischaptertothefollowinginequalpriority:

(1)Groundwaterbasinsdesignatedbythedepartmentascriticallyoverdraftedbasins,groundwaterbasinswhichareindangerofbecomingcriticallyoverdrafted,andgroundwaterbasinswheresurfaceandgroundwaterareinterconnected.

(2)Groundwaterbasinswithdocumentedwaterqualityproblems,landsubsidence,impactsonsurfacestreamsorgroundwaterdependentecosystems,orotherundesirableresultsasdefinedbysubdivision(x)ofSection10721.

(3)Groundwaterbasinsthatprotectimportantstate-ownedresources,suchasstateparksandwildlifeareas.

(4)Projectsthatsupporttheuseoffloodwatersofacceptablewaterqualitytorechargegroundwaterbasins.Thisinnovativemulti-benefitconceptbringstogetherfourimportantCaliforniawatermanagementobjectives,includingfloodhazardreduction,sustainablegroundwatermanagement,ecosystemrestoration,andwatersupplyreliability.

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(A)Projectsmayincludeadaptivemodificationoffloodandconservationstorageoperationsatreservoirs,modificationstospillwayfacilitiesatexistingreservoirs,inundationofneworexpandedfloodbypassesortemporaryfloodstoragelandareas,applicationoffloodwaterstoagriculturallandsduringfallowordormantseasons,orincreaseduseofexistinggroundwaterrechargefacilities.

(B)Projectsmayincludeusingfloodwatersforrechargeofgroundwaterprojects,withbothfloodhazardreductionandgroundwatersustainabilitybenefits.

(C)Projectsthatprovidebenefitsinfloodhazardreductionandgroundwatersustainability.Projectfeasibilitycanalsobesupportedbyecosystemrestorationandwatersupplybenefits.

(b)Oftheamountappropriatedinsection86110,thedepartmentmayuseuptotenmilliondollars($10,000,000)forthefollowingpurposes:

(1)AssessstatewidepotentialforuseoffloodwatersforrechargeandprioritizelocationsbaseduponproximityandconveyanceconnectionsintheStatewithfloodhazardreductionandgroundwatersustainabilityneeds.

(2)Completeapilotstudyofaprioritylocationtodemonstratepotentialwaterresourcesmanagementinnovationstofacilitatefloodhazardreductionandgroundwaterrecharge.

(3)Identifyanddemonstrateuseofanalyticaltoolsandinnovativewatermanagementtechniquestosupportdevelopmentofavailablefloodwatersandrechargeofgroundwaterbasins.

(4)Developeconomicmonetizationtechniquesofgroundwaterrechargebenefits.

(5)Demonstrateapplicationofthedepartment’sclimatechangemethodologytobothwatersupplyandfloodmanagementapplications.

(6)Providetechnicalassistancetogroundwatersustainabilityandlocalfloodmanagementagencies,aswellascoordinationwithstateandfederalfloodagencies.

(c)Thedepartmentshallconsiderthefollowingcriteriawhenawardinggrants:

(1)Thepotentialoftheprojecttopreventorcorrectundesirableresultsduetogroundwateruse.

(2)Thepotentialoftheprojecttomaximizegroundwaterstorage,reliability,rechargeorconjunctiveuse.

(3)Thepotentialoftheprojecttosupportsustainablegroundwatermanagement.

(4)Theannualizedcost-effectivenessoftheprojecttoachievethegoalsoftheSustainableGroundwaterManagementAct,Chapter2.74ofDivision6(commencingwithSection10720).

(d)Eligibleentitiesasdefinedinsubdivision(a)ofSection86166,includinggroundwatersustainabilityagencies,shallbeeligibleforgrants.PriorityforfundingshallbegiventolocalagenciesimplementingtheSustainableGroundwaterManagementAct.

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(e)Forpurposesofawardingfundingunderthischapter,alocalcostshareofnotlessthanfiftypercent(50%)ofthetotalcostoftheprojectshallberequired.Thecost-sharingrequirementmaybewaivedorreducedforthatportionofaprojectthatdirectlybenefitsadisadvantagedcommunityoreconomicallydistressedarea,orforprojectsthemajorityofwhosebenefitsaretorestoreecosystemsdependentongroundwater.

(f)NograntmaybemadeunlesstheDepartmentofFishandWildlifecertifiesthatharmdonetofishorwildlifeasaresultoftheprojectwillbemitigatedtoensureanypotentialimpactsarelessthansignificant.

(g)Eligibleprojectsmayincludesuchinfrastructureimprovementssuchasimprovedcanalandinfiltrationcapacity.

86113.(a)Forpurposesofthissection,“District”meanstheBorregoWaterDistrict.

(b)OftheamountappropriatedinSection86110,thirty-fivemilliondollars($35,000,000)shallbeawardedasagranttotheDistrictforthefollowingprograms:

(1)AcquisitionoflandandacquisitionoftherighttopumpgroundwaterfromwillingsellerstoreducegroundwaterpumpinginordertobringgroundwaterpumpingwithintheboundariesoftheBorregoSpringsSubbasinoftheBorregoValleyGroundwaterBasintoalevelthatissustainableonalong-termbasispursuanttotheSustainableGroundwaterManagementAct,Chapter2.74ofDivision6(commencingwithSection10720).LandsacquiredmaybetransferredtotheDepartmentofParksandRecreation,anonprofitorganizationoranotherpublicagencyforfuturemanagement.

(2)Waterend-useefficiency,includingurbanandagriculturalwaterconservation,andwaterconservationonrecreationalfacilitiessuchasgolfcourses.

(3)Restorationoflandsacquiredpursuanttothissection.

(4)Stormwatercaptureforgroundwaterbasinrechargeandre-use.

(5)OtherDistrictprojectsimplementingtheSustainableGroundwaterManagementAct.

(c)(1)NocostsharingbytheDistrictisrequiredtoimplementthissection.ThisisjustifiedbecausethecommunityofBorregoSpringsisaseverelydisadvantagedcommunity,andbecauseexcessivegroundwaterpumpingcanimpactimportantresourcesinAnza-BorregoDesertStateParkwhose500,000annualvisitorscontributeanestimatedfortymilliondollars($40,000,000)annuallytotheregion,aswellassupport600jobs.

(2)TheDistrictmayrequirecostsharingbybeneficiarieswhenmakinggrantspursuantparagraphs(2)and(4)ofsubdivision(b).

(d)Asaconditionofthisgrant,theDistrictmustagreeto:

(1)Implementmeasureswhichassurethatlandsnotpresentlybeingirrigatedwillnotcomeintoirrigation,andthatpresentlyirrigatedlandswillnotbecomemoreintensivelyirrigated;and

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(2)RequirenewdevelopmenttopayallcostsofwaterpurchasestheDistrictincurs,andallcostsofwaterprojectstheDistrictundertakesinordertoaccommodatethatdevelopment.

(e)(1)TheDistrictoranonprofitorganizationthatreceivesfundingpursuanttothischaptertoacquireaninterestinlandmayuseuptotwentypercent(20%)ofthosefundstoestablishatrustfundthatisexclusivelyusedtohelppayforthemaintenance,monitoringandrestorationofthatinterestinland.

(2)TheDistrictoranonprofitorganizationthatacquiresaninterestinlandwithmoneyfromthischapterandtransferstheinterestinlandtoanotherpublicagencyornonprofitorganizationshallalsotransfertheownershipofthetrustfundthatwasestablishedtomaintainthatinterestinland.

(3)Thissubdivisiondoesnotapplytostateagencies.

(4)IftheDistrictornonprofitorganizationdoesnotestablishatrustfundpursuanttothissubdivision,theagencyororganizationshallcertifytothedepartmentthatitcanmaintainthelandtobeacquiredfromfundsotherwiseavailabletotheagencyororganization.

(5)IftheinterestinlandiscondemnedoriftheDistrictornonprofitorganizationdeterminesthattheinterestinlandisunabletofulfillthepurposesforwhichmoneyfromthischapterwasexpended,thetrustfundandanyunexpendedinterestareappropriatedtotheDistrict.ThefundsreturnedtotheDistrictmaybeutilizedonlyforprojectspursuanttothischapter.

(f)AnyfundsnotneededbytheDistricttoimplementtheprogramdescribedinthissectionmaybegrantedbytheDistricttoanonprofitorganizationortheCaliforniaDepartmentofParksandRecreationtoacquirelandsadjacenttoorintheimmediateproximityofAnza-BorregoDesertStateParktopreventdevelopmentorirrigationofthatlandwhichmightimpactgroundwaterresourcesinthePark.TheselandsmaybeinsideoroutsidetheboundariesoftheDistrict,butmustbewithintheboundariesoftheBorregoSpringsSubbasinoftheBorregoValleyGroundwaterBasin,whichisthesourceofallpotablewaterfortheBorregoSpringscommunityandvisitorstothePark.Thelandsmaybeusedforwildlifehabitat.

(g)TheDistrictmayawardgrantstononprofitorganizationsinordertocarryoutallorpartoftheprogramsauthorizedbythissection.

CHAPTER8.WaterforWildlife,PacificFlywayRestoration,andDynamicHabitatManagement.

86120.Thesumofthreehundredmilliondollars($300,000,000)isappropriatedfromtheFundtotheWildlifeConservationBoard(hereinafterinthissection“theBoard”)toacquirewaterfromwillingsellersandtoacquirestorageanddeliveryrightstoimproveconditionsforfishandwildlifeinstreams,rivers,wildliferefuges,wetlandhabitatareasandestuaries.HighpriorityshallbegiventomeetingthewaterdeliverygoalsoftheCentralValleyProjectImprovementAct(Title34ofPublicLaw102-575).TheBoardmayarrangeforacquisition,long-termleaseagreements,ortransferofwaterrightsifitdeterminessuchactionsarebeneficialtowildlifeconservation.TheBoardmaysell,transfer,orstorewaterorstoragerightspurchasedpursuanttothissection,iftheBoardfindsthatthesale,transferorstoragewillnotcauseharmtofishandwildlife.InyearswhentheBoarddoesnotrequirethewaterforfishandwildlifepurposes,theBoardmaytemporarilysellorleasethewaterordeliveryrights.NotwithstandingSection13340oftheGovernmentCode,theproceedsofanywatersalespursuanttothissectionbytheBoardareappropriateddirectlytotheBoardwithoutregardtofiscalyear.TheBoardshallusetheproceedsofthesale,leaseortransferofwaterordeliveryrightstoachieveconservationpurposesauthorizedbythis

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section.Theacquisitionofwaterusingfundsexpendedpursuanttothischaptershallonlybeusedforprojectsthatwillprovidefisheries,wildlifeorecosystembenefits.

86121.Thesumoffiftymilliondollars($50,000,000)isappropriatedfromtheFundtotheCaliforniaDepartmentofFishandWildlifeforthepurposeofimprovingwatersupplyandwaterqualityconditionsforfishandwildlifeonprivatelands.TheCaliforniaDepartmentofFishandWildlifemayprovideincentivestolandownersforconservationactionsonprivatelandsoruseofvoluntaryhabitatcreditexchangemechanisms.Suchincentivesshallbedesignedtobeappropriatelyflexibleandresponsivetothehighlyvariableamountsofwaterrequiredbyfishandwildlife.

TheDepartmentofFishandWildlifeshalluseaportionofthefundsprovidedbythissectiontodevelopaprogrammaticauthorizationtoexpediteapprovalofhabitatrestorationandwaterqualityimprovementprojectsnotcoveredunderChapter6.5ofDivision2oftheFishandGameCode,andfortheimplementationofthatChapter.

86122.Thesumofthreehundredmilliondollars($300,000,000)isappropriatedfromtheFundtotheWildlifeConservationBoardforcoastalandCentralValleysalmonandsteelheadfisheriesrestorationprojects.TheWildlifeConservationBoardshallgiveprioritytoprojectsthatcontributetotherecoveryofsalmonandsteelheadspecieslistedpursuanttothestateorfederalendangeredspeciesacts,toenhancecommercialandrecreationalsalmonfisheriesandtoachievethegoalsofChapter8ofPart1ofDivision6(commencingwithSection6900)oftheFishandGameCode.

(a)Oftheamountappropriatedbythissection,uptoonehundredmilliondollars($100,000,000)shallbespentformatchinggrantstolocalagenciesforcapitaloutlayprojectstoimplementprogramstoimprovefishpassageopportunitiesandtorestoreanadromoussalmonidhabitats,particularlyjuvenilerearinghabitatforspringrunsalmon,onriversintheSacramentoValleythathavedamsblockingthemainstemoftheriver.

(b)Oftheamountappropriatedbythissection,atleastonehundredmilliondollars($100,000,000)shallbespenttoinstallfishscreensontheSacramentoandSanJoaquinRiversandtheirtributariesandintheDeltatoscreenanadromousfishfromwaterintakes.HighpriorityshallgotoprojectsidentifiedashighpriorityintheSacramentoValleySalmonResiliencyStrategy(aspublishedbytheCaliforniaNaturalResourcesAgencyinJune2017,andasitmaybeamended).

86123.(a)Thesumoftwohundredeightymilliondollars($280,000,000)isappropriatedfromtheFundtotheWildlifeConservationBoardforprojectstoprotectmigratorybirdsthroughhabitatacquisition,easements,restoration,orotherprojects,andtoprovidewaterforwildliferefugesandwildlifehabitatareastofulfillthepurposesidentifiedintheCentralValleyJointVentureImplementationPlan,asitmaybeamended,including:

(1)Projectstoimplementthissectionwhichmayincludeconservationactionsonprivatelands.

(2)ProtectionandrestorationofriparianandwetlandhabitatintheSacramentoRiverBasin.

(3)ProtectionandrestorationofriparianandwetlandhabitatintheSanJoaquinandTulareBasins.

(b)Oftheamountappropriatedbythissection,fortymilliondollars($40,000,000)shallbedepositedintheCaliforniaWaterfowlHabitatPreservationAccountestablishedpursuanttoSection3467oftheFish

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andGameCode,forthepurposesofimplementingtheCaliforniaWaterfowlHabitatProgrampursuanttoArticle7(commencingwithSection3460)ofChapter2ofPart1ofDivision4oftheFishandGameCode,theCaliforniaLandownerIncentiveProgramoftheDepartmentofFishandWildlife,thePermanentWetlandEasementProgramoftheWildlifeConservationBoard,andtheestablishmentorenhancementofwaterfowlnestingandotherwildlifehabitatcoveronfallowedlandsincludingprojectsauthorizedpursuanttoSection1018.

(c)Oftheamountappropriatedbythissection,tenmilliondollars($10,000,000)shallbedepositedintheSharedHabitatAllianceforRecreationalEnhancement(SHARE)AccountestablishedpursuanttoSection1572oftheFishandGameCodeandadministeredbytheDepartmentofFishandWildlifeforthepurposesofprovidinghuntingandotherwildlife-dependentrecreationalopportunitiestothepublicthroughvoluntaryagreementswithprivatelandowners.

(d)Oftheamountappropriatedbythissection,atleastonehundredandtenmilliondollars($110,000,000)shallbeexpendedforacquisitionanddeliveryofwatertowildliferefuges,andassociatedinfrastructureprojects,toachievefullcompliancewiththetermsofsubsection(d)ofSection3406oftheCentralValleyProjectImprovementAct(Title34ofPublicLaw102-575).

CHAPTER8.6.SacramentoRegionWaterReliabilityandHabitatProtection.

86124.(a)Tenmilliondollars($10,000,000)isappropriatedfromtheFundtothedepartmentforgrantstotheRegionalWaterAuthorityandtotheCityofSacramentoonbehalfoftheSacramentoAreaWaterForumforprojectsthatareconsistentwiththecoequalobjectivesoftheWaterForumAgreement.Eligibleprojectsincludefacilities,studiesandotheractionstoimproveflowandtemperatureconditionsandhabitatinthelowerAmericanRiver,increasewateruseefficiencyandconservation,orimprovetheintegrationofsurfacewaterandgroundwatersuppliestoprovidefordryyearwatersupplyreliability.(b)TheRegionalWaterAuthorityandtheWaterForumshalljointlydevelopandapprovestudies,projects,orprogramstobefundedbythegrants.HighestpriorityshallbegiventoimprovingwatertemperatureconditionsinthelowerAmericanRiver,andtoprojectsorprogramsthatcontributetobothoftheWaterForum’scoequalobjectivesofimprovingwatersupplyandprotectingtheenvironment.TheRegionalWaterAuthoritywillbethegranteeforwatersupplyandwaterefficiencyprojects.TheCityofSacramento,onbehalfoftheWaterForum,willbethegranteeforenvironmentalprotection,watertemperaturestudies,andhabitatrestorationprojects.(c)Theamountallocatedinaggregatetothepackageofprojectsshallnotexceedfiftypercent(50%)oftheprojects’totalcost.(d)Nofundsappropriatedpursuanttothissectionmaybespenttobuildnewsurfacestorageorraiseexistingreservoirs.

CHAPTER9.BayAreaRegionalWaterReliability.

86125.Twohundredandfiftymilliondollars($250,000,000)isappropriatedfromtheFundtothedepartmentforagranttothegroupofeightwateragenciescollectivelyknownastheBayAreaRegionalReliabilityPartnership(BARR)fornewfacilitiesthatextendthebenefitsofsurfacewaterstorageforregion-widebenefitsinanyofthefollowingareas:droughtsupplyreliability,drinkingwaterquality,andemergencystorage,asgenerallydescribedintheFinalMitigationProjectListcontainedintheSanFranciscoBayAreaRegionalReliabilityDroughtContingencyPlan.TheContraCostaWaterDistrictmay

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receivethegrantonbehalfofthePartnershipunlesstheBARRPartnershiphasagovernancestructureinplaceatthetimeofthegrantawardthatmakesitseligibletoreceivethefundsdirectly.TheparticipatingwateragenciesintheSanFranciscoBayAreaRegionalReliabilityDroughtContingencyPlanwilldetermineanddesignatefundstooneoranyofthelistedprojects,howeverinnocasewilltheamountdeterminedforanysingleprojectbemorethan50%oftheproject’stotalcost.Nofundsappropriatedpursuanttothissectionmaybespenttobuildnewsurfacestorage,orraiseexistingreservoirs.CHAPTER10.ImprovedWaterConveyanceandWaterConservation.

86126.Eventhoughthedroughthaseased,theeffectsofthedroughtarestillbeingfeltinmanyareasthroughoutthestate,includingtheSanJoaquinValley.FurtherexacerbatingtheimpactofdroughtconditionsonwateruserswerelegalrequirementsrestrictingpumpingfromtheSacramento-SanJoaquinDelta.Oneoftheconsequencesofboththedroughtandpumpingrestrictionswasasignificantincreaseingroundwaterpumpingasameanstoreplacereducedsurfacesupplies.Suchincreaseingroundwaterpumpinglowersgroundwatertables,whichinturncauseswellstogodryandlandtosubside,whichhasparticularlybeenthecaseontheeastsideoftheSanJoaquinValley.TheFriant-KernCanalhaslost60%ofitscapacitytoconveywaterforbothconsumptiveusesandgroundwaterrecharge.Unlessconveyancecapacityisrestoredandincreased,thesubsidencewillcontinuetogetworseandthoselocalcommunities,includingdisadvantagedcommunities,wholargelyrelyongroundwatertoservetheircitizens,willcontinuetosufferadverseeffects.Significantpublicbenefitswillresultfromthisstateinvestment,includingavoidingincreasedunemployment,stabilizationofgroundwater,andsecuringamorestablefoodsupplyforCalifornia.

86127.Thesumofsevenhundredfiftymilliondollars($750,000,000)isappropriatedfromtheFundtothedepartmentforagranttotheFriantWaterAuthorityforwaterconveyancecapitalimprovements,includingrestoredandincreasedconveyancecapacitytoandintheMaderaandFriant-Kerncanals,resultingingreatergroundwaterrecharge,improvedconveyanceandutilizationoffloodwaters,andforwaterconservation.Improvementswithfundsprovidedbythisparagraphshallbecompletedconsistentwithapplicablestateandfederallawsandcontracts.86128.Thesumofonehundredmilliondollars($100,000,000)isappropriatedfromtheFundtotheNaturalResourcesAgencyforactionsthatsupportprojectsdefinedinparagraph11inthesettlementagreementtorestoretheSanJoaquinRiverreferencedinSection2080.2oftheFishandGameCode.Beforeexpendituremayoccur,formalconcurrenceonspecificprojectstobeundertakenisrequiredbythesettlingpartiestotheagreement.86129.ThediversionofwaterfromBarkerSloughtotheNorthBayAqueductadverselyimpactslistedfishspecies,andalsoadverselyimpactswaterqualityservedtoalargeurbanarea.TherewouldbemultiplepublicbenefitstorelocatingthediversiontotheNorthBayAqueducttotheSacramentoRiver.86130.Thesumoffivemilliondollars($5,000,000)isappropriatedfromthefundtothedepartmenttoplanforadiversionofwaterfromtheSacramentoRivertotheNorthBayAqueducttoreducetheadverseimpactonlistedfishspecies,andprovideahigherqualityofdrinkingwatertothoseservedbytheAqueduct.CHAPTER11.OrovilleDamFloodSafety.

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86131.OrovilleDamprovidesfloodcontrolfortheSacramentoValley.TheinclusionoffloodcontrolatOrovilleDamwasnotanobligationofthepublicwateragenciesthatreceivewaterfromOrovilleDam.ThefloodcontrolfunctionofOrovilleDamwaspaidforbythefederalgovernment.86132.Thesumoftwohundredmilliondollars($200,000,000)isappropriatedfromtheFundtothedepartmentforrepairandreconstructionofthespillwaysattheOrovilleDam.86133.Thesumoftwenty-onemilliondollars($21,000,000)isappropriatedfromtheFundtothedepartment.Fifteenmilliondollars($15,000,000)shallbespentforFeatherRiversedimentmanagementandremovalbetweenLiveOakandVeronaincoordinationwiththeSutterButteFloodControlAgency.Sixmilliondollars($6,000,000)ofthesefundsshallbeawardedasagranttotheSutterButteFloodControlAgencyforfloodwaterattenuationprojectsattheOrovilleWildlifeAreathatprovidedownstreamfloodcontrolreliefandecosystemrestoration.86134.Thesumofonemilliondollars($1,000,000)isappropriatedfromtheFundtothedepartmentforagranttoButteCountyforcapitaloutlayprojectsandequipmentforemergencypreparednesscoordinationandcommunicationsconsistentwiththeCaliforniaOfficeofEmergencyServicesStandardizedEmergencyManagementSystem(SEMS).

CHAPTER12.GeneralProvisions.

86151.(a)Inprojectsinvolvingvoluntaryhabitatrestoration,waterqualityimprovementandmulti-benefitfloodplainrestorationeachagencyadministeringprovisionsofthisdivisionshallencourageinteragencycoordinationanddevelopandutilizeefficientprojectapprovalandpermittingmechanisms,includingbutnotlimitedtotheprovisionsofChapter6.5ofDivision2oftheFishandGameCode(regardlessofwhetherthatchapterisstillineffect)andprogrammaticpermitsforvoluntaryhabitatrestoration,soastoavoidprojectdelaysandmaximizetheamountofmoneyspentonprojectimplementation.

(b)Projectsdesignedtoprimarilyprotectmigratorybirdsthroughacquisition,easements,restorationorotherprojectsshallbeconsistentwiththeplansandrecommendationsestablishedbythefederalMigratoryBirdJointVenturepartnershipsthatencompasspartsofCalifornia.

(c)Anyagencyprovidingfundspursuanttothisdivisiontodisadvantagedcommunitiesoreconomicallydistressedareasmayprovidefundingtoassistthesecommunitiesinapplyingforthatfunding,includingtechnicalandgrantwritingassistance.Thesefundsmaybeprovidedtononprofitorganizationsandlocalpublicagenciesassistingthesecommunities.

(d)AnyagencyreceivingfundspursuanttothisdivisionmaycontractfortheservicesofresourceconservationdistrictspursuanttoSection9003ofthePublicResourcesCode.

(e)Agenciesmaycountin-kindcontributionsuptotwenty-fivepercent(25%)ofthetotalprojectcostaspartofcostsharing.Agenciesmaycountthevalueofthedonatedlandinabargainsaleaspartofcostsharing.

(f)Agenciesconsideringproposalsforacquisitionoflandsshallalsoconsidertheabilityoftheproposedfinalownerofthelandtomaintainitinaconditionthatwillprotectthevaluesforwhichitistobeacquired,andtopreventanyproblemsthatmightoccuronneighboringlandsifthelandisnotproperlymanaged.

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(g)TrustfundsestablishedpursuanttothisactshallbemanagedpursuanttotherequirementsoftheUniformPrudentManagementofInstitutionalFundsAct,Part7(commencingwithSection18501)ofDivision9oftheProbateCode.

(h)Projectsdesignedtoprimarilyprotectriparianhabitatthroughacquisition,easements,restorationorotherprojectsshallconsidertheplansandrecommendationsestablishedbytheCaliforniaRiparianHabitatConservationProgrampursuanttoChapter4.1ofDivision2oftheFishandGameCode(commencingwithSection1385).

(i)Theadministeringagencyshallprovideadvancepaymentof50%ofgrantawardsforthoseprojectsthatsatisfybothofthefollowingcriteria:

(1)Theprojectproponentisadisadvantagedcommunityoreligibleentityasdefinedinsubdivision(a)ofSection86166,ortheprojectbenefitsadisadvantagedcommunity.

(2)Thegrantawardfortheprojectislessthanonemilliondollars($1,000,000).

(j)EligiblegrantcostsshallincludeindirectcostsasdefinedinfederalOfficeofManagementandBudgetguidelines,aswellasreasonableoverheadcosts.

(k)Agenciesreceivingfundsdesignatedforspecificprogramsorgranteesshallexpeditetheexpenditureortransferofthosefundswiththeleastamountofprocessnecessarytocomplywithexistingstatelawsandregulations,andtherequirementsofthisdivision.Itistheintentofthisdivisionthattheexpenditureortransferoffundsshallbeefficient,cost-effective,andexpeditious,andgenerallyshouldoccurnolaterthan90daysfromdemonstratedeligibilitybytherecipientforthefundsrequested.

86152.Agenciesshall,totheextentpracticable,quantifytheamountofwatergeneratedforhumanandenvironmentaluseresultingfromproposedexpenditurestheymakepursuanttothisdivision.Agenciesshall,totheextentpracticable,quantifytheimprovementinthequalityofwatergeneratedforhumanandenvironmentaluseresultingfromproposedexpenditurestheymakepursuanttothisdivision.

86153.Totheextentconsistentwiththeotherprovisionsofthisdivision,statewideagenciesmakinggrantspursuanttothisdivisionshallseektoallocatefundsequitablytoeligibleprojectsthroughoutthestate,includingnorthernandsouthernCalifornia,coastalandinlandregions,andSierraandCascadefoothillandmountainregions.

86154.ApplicantsforgrantspursuanttothisdivisionshallindicatewhetherthegrantproposalisconsistentwiththelocalIntegratedRegionalWaterManagementPlan,ifoneexists.However,consistencywiththeIntegratedRegionalWaterManagementPlanshallnotberequiredasaconditionofanygrant,andgrantproposalsshallnotbegivenlowerpriorityiftheyarenotconsistentwithIntegratedRegionalWaterManagementPlans.

86155.(a)Notwithstandinganyotherprovisionofthisdivision,alocalpublicagencywithapopulationoflessthan100,000andamedianhouseholdincomeoflessthanonehundredpercent(100%)ofthestateaveragehouseholdincomeshallberequiredtoprovidematchingfundsofnomorethanthirty-fivepercent(35%)foragrantforaprojectentirelywithintheirjurisdiction.Stateagenciesmakinggrantstotheselocalpublicagenciesmayprovidefundinginadvanceofconstructionofportionsoftheproject,ifthestateagencydeterminesthatrequiringthelocalpublicagencytowaitforpaymentuntiltheprojectiscompletedwouldmaketheprojectinfeasible.

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(b)Nothinginthissectionprohibitsastateagencyfrommakingagranttoadisadvantagedcommunityoreconomicallydistressedareathatdoesnotrequirecostsharing.

86156.Anyrepaymentofloansmadepursuanttothisdivision,includinginterestpayments,andinterestearningsshallbedepositedintheFundandshallbeavailablesolelyforthepurposesofthechapterorsectionthatauthorizedtheloan.

86157.(a)Eachstateagencythatreceivesanappropriationoffundingmadeavailablebythisdivisionshallberesponsibleforestablishingmetricsofsuccessandreportingthestatusofprojectsandallusesofthefundingonthestate’sbondaccountabilityInternetWebsite.

(b)Eachstateagencythatreceivesanappropriationoffundingmadeavailablebythisdivisionshalldothefollowing:

(1)Evaluatetheoutcomesofprojectsfundedbythisdivision.

(2)Includeintheagency’sreportingpursuanttoSection86003theevaluationdescribedinsubdivision(a)ofthissection.

(3)Holdagranteeoffundsaccountableforcompletingprojectsfundedbythisdivisionontimeandwithinscope.

86158.(a)Forprojectscarriedoutbystateagenciespursuanttothisdivision,uptotenpercent(10%)offundsallocatedforeachprogramfundedbythisdivisionmaybeexpendedforplanning,monitoringandreportingnecessaryforthesuccessfuldesign,selection,andimplementationoftheprojectsandverificationofbenefits.Aneligibleentityreceivingagrantforaprojectpursuanttothisdivisionmayalsoreceivesufficientfundsforplanning,monitoringandreportingnecessaryforthesuccessfuldesign,selection,andimplementationoftheprojects.Thissectionshallnototherwiserestrictfundsordinarilyusedbyanagencyfor“preliminaryplans,”“workingdrawings,”and“construction”foracapitaloutlayprojectorgrantproject.

(b)Permitandplancheckfeesandreasonableadministrativeandindirectprojectfeesandcostsrelatedtomanagingconstructionshallbedeemedpartofconstructioncosts.Projectcostsallocatedforprojectplanninganddesign,anddirectandindirectadministrativecostsshallbeidentifiedasseparatelineitemsintheprojectbudget.

86159.NotwithstandingSection16727oftheGovernmentCode,fundingprovidedpursuanttoChapters6and8maybeusedforgrantsandloanstononprofitorganizationstorepayfinancingdescribedinSection22064oftheFinancialCoderelatedtoprojectsthatareconsistentwiththepurposesofthosechapters.

86160.Notmorethanatotaloffivepercent(5%)ofthefundsallocatedtoanystateagencyunderthisdivisionmaybeusedtopayforitscostsofadministeringprogramsandprojectsspecifiedinthisdivision.

86161.(a)WaterqualitymonitoringdatashallbecollectedandreportedtotheStateboardinamannerthatiscompatibleandconsistentwithsurfacewatermonitoringdatasystemsorgroundwatermonitoringdatasystemsadministeredbytheStateboard,consistentwithPart4.9ofDivision6.WatershedmonitoringdatashallbecollectedandreportedtotheDepartmentofConservationinamannerthatiscompatibleandconsistentwiththestatewidewatershedprogramadministeredbytheDepartmentofConservation.

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(b)Stateagenciesmakinggrantsorloanspursuanttothisdivisionmayincludespecificexpendituresforcompliancewithlocal,stateandfederalpermittingandotherrequirements.

(c)Uptoonepercent(1%)offundsallocatedforeachprogramfundedbythisdivisionmaybeexpendedforresearchintomethodstoimprovewatersupply,waterrelatedhabitat,andwaterqualityrelevanttothatprogram,inadditiontoanyotheramountsprovidedforinthisdivision.

86162.(a)Priortodisbursinggrantsorloanspursuanttothisdivision,eachstateagencythatreceivesanappropriationfromthefundingmadeavailablebythisdivisiontoadministeragrantorloanprogramunderthisdivisionshalldevelopandadoptprojectsolicitationandevaluationguidelines.Theguidelinesshallincludemonitoringandreportingrequirementsandmayincludealimitationonthedollaramountofeachgrantorloantobeawarded.Theguidelinesshallnotincludeaprohibitionontherecoveryofreasonableoverheadorindirectcostsbylocalpublicagencies,Indiantribesornonprofitorganizations.Ifthestateagencyhaspreviouslydevelopedandadoptedprojectsolicitationandevaluationguidelinesthatcomplywiththerequirementsofthisdivision,itmayusethoseguidelines.Overheadorindirectcostsincurredbyalocalpublicagency,Indiantribeornonprofitorganizationareeligibleforreimbursementandshallnotweighnegativelyintheevaluationoffundingproposalspursuanttothisdivision.

(b)Priortodisbursinggrantsorloans,thestateagencyshallconductthreeregionalpublicmeetingstoconsiderpubliccommentspriortofinalizingtheguidelines.Thestateagencyshallpublishthedraftsolicitationandevaluationguidelinesonitswebsiteatleast30daysbeforethepublicmeetings.OnemeetingshallbeconductedatalocationinnorthernCalifornia,onemeetingshallbeconductedatalocationintheCentralValleyofCalifornia,andonemeetingshallbeconductedatalocationinsouthernCalifornia.Agencieswithoutjurisdictioninoneormoreofthesethreeregionsmayomitthemeetingsintheregionorregionswithinwhichtheydonothavejurisdiction.Uponadoption,thestateagencyshalltransmitcopiesoftheguidelinestothefiscalcommitteesandtheappropriatepolicycommitteesoftheLegislature.

(c)Atleast45dayspriortosolicitingprojectspursuanttothisdivision,astateagencyadministeringfundspursuanttothisdivisionshallpostanelectronicformoftheguidelinesforgrantapplicantsonitswebsite.Projectsolicitationandevaluationguidelinesshallonlyincludecriteriabasedontheapplicablerequirementsofthisdivision.

(d)Nothinginthisdivisionrestrictsagenciesfromenforcingandcomplyingwithexistinglaws.

86163.Eachprojectfundedfromthisdivisionshallcomplywiththefollowingrequirements:

(a)Theinvestmentofpublicfundspursuanttothisdivisionwillresultinpublicbenefitsthataddressthemostcriticalstatewideneedsandprioritiesforpublicfunding,asdeterminedbytheagencydistributingthefunds.

(b)Intheappropriationandexpenditureoffundingauthorizedbythisdivision,prioritywillbegiventoprojectsthatleverageprivate,federal,orlocalfundingorproducethegreatestpublicbenefit.Allstateagenciesreceivingfundspursuanttothisdivisionshallseektoleveragethefundstothegreatestextentpossible,butagenciesshalltakeintoaccountthelimitedabilitytocostsharebysmallpublicagencies,andbyagenciesseekingtobenefitdisadvantagedcommunitiesandeconomicallydistressedareas.

(c)Afundedprojectshalladvancethepurposesofthechapterfromwhichtheprojectreceivedfunding.

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(d)Inmakingdecisionsregardingwaterresourcespursuanttothisdivision,stateandlocalagencieswillusethebestavailablesciencetoinformthosedecisions.

(e)Totheextentpracticable,aprojectsupportedbyfundsmadeavailablebythisdivisionwillincludesignageinformingthepublicthattheprojectreceivedfundsfromtheWaterSupplyandWaterQualityActof2018.

(f)Totheextentfeasible,projectsfundedwithproceedsfromthisdivisionshallpromotestateplanningprioritiesconsistentwiththeprovisionsofSection65041.1oftheGovernmentCodeandsustainablecommunitiesstrategiesconsistentwiththeprovisionsofsubparagraph(B)ofparagraph(2)ofsubdivision(b)ofSection65080oftheGovernmentCode.

(g)Totheextentfeasible,watershedobjectivesforprivatelandsincludedinthisdivisionshouldbeachievedthroughuseofconservationeasementsandvoluntarylandownerparticipation,including,butnotlimitedto,theuseofperpetualconservationeasementspursuanttoDivision10.2(commencingwithSection10200)andDivision10.4(commencingwithSection10330)ofthePublicResourcesCode,voluntaryhabitatcreditexchangemechanisms,andconservationactionsonprivatelands.

86164.Fundsprovidedbythisdivisionshallnotbeexpendedtopaythecostsofthedesign,construction,operation,mitigation,ormaintenanceofDeltawaterconveyancefacilities.Thosecostsshallbetheresponsibilityofthewateragenciesthatbenefitfromthedesign,construction,operation,mitigation,ormaintenanceofthosefacilities.

86165.(a)Thisdivisiondoesnotdiminish,impair,orotherwiseaffectinanymannerwhatsoeveranyareaoforigin,watershedoforigin,countyoforigin,oranyotherwaterrightsprotections,including,butnotlimitedto,rightstowaterappropriatedpriortoDecember19,1914,providedunderthelaw.ThisdivisiondoesnotlimitoraffecttheapplicationofArticle1.7(commencingwithSection1215)ofChapter1ofPart2ofDivision2,Sections10505,10505.5,11128,11460,11461,11462,and11463,andSections12200to12220,inclusive.

(b)Forthepurposesofthisdivision,anareathatutilizeswaterthathasbeendivertedandconveyedfromtheSacramentoRiverhydrologicregion,foruseoutsidetheSacramentoRiverhydrologicregionortheDelta,shallnotbedeemedtobeimmediatelyadjacenttheretoorcapableofbeingconvenientlysuppliedwithwatertherefrombyvirtueoronaccountofthediversionandconveyanceofthatwaterthroughfacilitiesthatmaybeconstructedforthatpurposeafterJanuary1,2018.

(c)Nothinginthisdivisionsupersedes,limits,orotherwisemodifiestheapplicabilityofChapter10(commencingwithSection1700)ofPart2ofDivision2,includingpetitionsrelatedtoanynewconveyanceconstructedoroperatedinaccordancewithChapter2(commencingwithSection85320)ofPart4ofDivision35.

(d)Unlessotherwiseexpresslyprovided,nothinginthisdivisionsupersedes,reduces,orotherwiseaffectsexistinglegalprotections,bothproceduralandsubstantive,relatingtotheStateboard’sregulationofdiversionanduseofwater,including,butnotlimitedto,waterrightpriorities,theprotectionprovidedtomunicipalinterestsbySections106and106.5,andchangesinwaterrights.NothinginthisdivisionexpandsorotherwisealterstheStateboard’sexistingauthoritytoregulatethediversionanduseofwaterorthecourts’existingconcurrentjurisdictionoverCaliforniawaterrights.

(e)NothinginthisdivisionshallbeconstruedtoaffecttheCaliforniaWildandScenicRiversAct(Chapter

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1.4(commencingwithSection5093.50)ofDivision5ofthePublicResourcesCode)orthefederalWildandScenicRiversAct(16U.S.C.Section1271etseq.)andfundsauthorizedpursuanttothisdivisionshallnotbeavailableforanyprojectthatcouldhaveanadverseeffectonthevaluesuponwhichawildandscenicriveroranyotherriverisaffordedprotectionspursuanttotheCaliforniaWildandScenicRiversActorthefederalWildandScenicRiversAct.

(f)Nothinginthisdivisionsupersedes,limits,orotherwisemodifiestheSacramento-SanJoaquinDeltaReformActof2009(Division35(commencingwithSection85000))oranyotherapplicablelaw,including,butnotlimitedto,Division22.3(commencingwithSection32300)ofthePublicResourcesCode.

(g)Notwithstandinganyotherprovisionoflaw,anyagencyornonprofitorganizationacquiringlandpursuanttothisdivisionmaymakeuseoftheNaturalHeritagePreservationTaxCreditActof2000(Division28(commencingwithSection37000)ofthePublicResourcesCode).FundsappropriatepursuanttothisdivisionthatarenotdesignatedforcompetitivegrantprogramsmayalsobeusedforthepurposesofreimbursingtheGeneralFundpursuanttotheNaturalHeritagePreservationTaxCreditActof2000.(h)Fundsprovidedpursuanttothisdivision,andanyappropriationortransferofthosefunds,shallnotbedeemedtobeatransferoffundsforthepurposesofChapter9(commencingwithSection2780)ofDivision3oftheFishandGameCode.

86166.(a)Applicantseligibletoreceivegrants,loansandcontractspursuanttothisdivisionarepublicagencies,stateuniversities(includinguniversity-managednationallaboratories),resourceconservationdistricts,nonprofitorganizations,publicutilities,mutualwatercompanies,publicwatersystemsasdefinedinsubdivision(h)ofSection116275oftheHealthandSafetyCode,urbanwatersuppliersasdefinedinSection10617oftheWaterCode,federallyrecognizedIndiantribes,federalagenciesowningormanaginglandinCalifornia,andstateIndiantribeslistedontheNativeAmericanHeritageCommission’sCaliforniaTribalConsultationList.Stateagenciesgrantingfundspursuanttothisdivisionshallgiveprioritytoeligibleapplicantswithexperienceinplanning,designing,anddevelopingthetypesofprojectsreceivingfundingfromtheagencies,orwhichhaveaccesstoconsultinghelpintheseareas.

(b)(1)Tobeeligibleforfundingunderthisdivision,aprojectproposedbyapublicutilitythatisregulatedbythePublicUtilitiesCommission,oramutualwatercompany,shallhaveaclearanddefinitepublicpurposeandtheprojectshallbenefitthecustomersofthewatersystemandnottheinvestors.

(2)Tobeeligibleforfundingunderthisdivision,anurbanwatersuppliershallhaveadoptedandsubmittedanurbanwatermanagementplaninaccordancewiththeUrbanWaterManagementPlanningAct,Part2.6(commencingwithSection10610)ofDivision6.

(3)Tobeeligibleforfundingunderthisdivision,anagriculturalwatersuppliershallhaveadoptedandsubmittedanagriculturalwatermanagementplaninaccordancewiththeAgriculturalWaterManagementPlanningAct,Part2.8(commencingwithSection10800)ofDivision6.

(4)InaccordancewithSection10608.56,anagriculturalwatersupplieroranurbanwatersupplierisineligibleforgrantfundingunderthisdivisionunlessitcomplieswiththerequirementsofPart2.55(commencingwithSection10608)ofDivision6.

(5)Notwithstandinganyotherprovisionofthisdivision,agenciesreceivingfundspursuanttothisdivisionmayreduceoreliminatecostsharingrequirementswhenmakinggrantsofonemilliondollars($1,000,000)orlesstononprofitorganizationswithbudgetslessthanonemilliondollars($1,000,000)if

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theagencydeterminesthatsuchgrantswouldbethemosteffectivewaytoachievethepurposesofthisdivision.

86167.Wherefeasible,projectsfundedpursuanttothisdivisionmayusetheservicesoftheCaliforniaConservationCorpsorcertifiedcommunityconservationcorps,asdefinedinSection14507.5ofthePublicResourcesCode.PublicagenciesreceivingfundingunderthisdivisionshallgiveadditionalprioritytoprojectsthatinvolvetheservicesoftheCaliforniaConservationCorpsoracertifiedcommunityconservationcorps,orothernonprofitentitiesthatprovidejobtrainingandeducationopportunitiesforveterans,fostercarerecipients,farmworkersorlocalyouthinconservationorrestorationprojects.

86168.Eachstateagencythatreceivesanappropriationoffundingmadeavailablebythisdivisionshallberesponsibleforestablishingandreportingonthestate’sbondaccountabilitywebsiteeachofthefollowing:metricsofsuccess,metricsforbenefittingdisadvantagedcommunitiesandeconomicallydistressedareas,progressinmeetingthosemetrics,statusofprojectsfundedunderthisdivision,andallusesofthefundingthestateagencyreceivesunderthisdivision.TheSecretaryoftheNaturalResourcesAgencyshallannuallyreporttotheLegislatureexpendituresmadepursuanttothisdivision,andthebenefitsderivedfromthoseexpenditures.

86169.Theproceedsofbondsissuedandsoldpursuanttothisdivision(excludingtheproceedsofanyrefundingbondsissuedinaccordancewithSection86192)shallbedepositedintheWaterSupplyReliabilityandDroughtProtectionFundof2018,whichisherebycreatedintheStateTreasury.

86169.1NotwithstandingSection13340oftheGovernmentCode,moneysintheWaterSupplyReliabilityandDroughtProtectionFundof2018arecontinuouslyappropriatedwithoutregardtofiscalyearforthepurposesofthisdivisioninthemannersetforthinthisdivision.Fundsauthorizedby,andmadeavailablepursuanttothisdivisionshallbeavailableandexpendedonlyasprovidedinthisdivision,andshallnotbesubjecttoappropriationortransferbytheLegislatureortheGovernorforanyotherpurpose.

86170.Chapter3.5(commencingwithSection11340)ofPart1ofDivision3ofTitle2oftheGovernmentCodedoesnotapplytothedevelopmentorimplementationofprogramsorprojectsauthorizedorfundedunderthisdivision.

86171.(a)Fundsprovidedbythisdivisionshallnotbeusedtosupportorpayforthecostsofenvironmentalmitigation,exceptforthecostsofenvironmentalmitigationforprojectsfundedpursuanttothisdivision.

(b)Fundsprovidedbythisdivisionshallbeusedforenvironmentalenhancementsorotherpublicbenefits.

(c)Notwithstandingparagraphs(a)and(b)ofthissection,thecostsofmitigationoftheenvironmentalimpactsdirectlyrelatedandlimitedtoexpendituresunderthisdivisionmaybepaidforbyfundsprovidedbythisdivision.

(d)Fundsavailablepursuanttothisdivisionshallnotbeexpendedtopaythecostsofthedesign,construction,operation,mitigation,ormaintenanceofDeltaconveyancefacilities.

86172.Everyentityimplementingthisdivisionshallgivehighestprioritytofundingprojectsthatcombinerelativelyhighcost-effectiveness,durability,andenhancedenvironmentalquality.

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86174.AcquisitionspursuanttoChapter6ofthisdivisionshallbefromwillingsellersonly.

86177.Therequirementthataprojectbecost-effectivedoesnotrequireafullbenefit/costanalysis.

86178.Agenciesimplementingthisdivisionshallgivespecialconsiderationtoprojectsthatemployneworinnovativetechnologyorpractices,includingdecisionsupporttoolsthatsupporttheintegrationofmultiplestrategiesandjurisdictions,including,butnotlimitedto,watersupply,wildfirereduction,habitatimprovement,invasiveweedcontrol,floodcontrol,landuse,andsanitation.

86179.Anycontract(includingacontracttoprovideagrant)betweenapublicagency,IndiantribeornonprofitorganizationandtheDepartmentofFishandWildlifeortheWildlifeConservationBoardforworkfundedpursuanttothisdivision,orpursuanttoDivision26.7shallbeconsideredacontractsubjecttotherequirementsofSection1501.5oftheFishandGameCode,andthereforshallnotbeconsideredapublicworkorapublicimprovement,andisnotsubjecttoChapter1(commencingwithSection1720)ofPart7ofDivision2oftheLaborCode.

86179.1.PriorityshallbegiventotheexpenditureoffundsonactivitiesthataffecttheDeltaandthespeciesthatrelyonitthataregenerallyconsistentwiththereport“ADeltaRenewed:AGuidetoScience-BasedEcologicalRestorationintheSacramento-SanJoaquinDelta”preparedin2016bytheSanFranciscoEstuaryInstitute-AquaticScienceCenter.

86179.2.IntheawardingofgrantstobemadebyanyagencypursuanttothisactorDivision26.7aftertheeffectivedateofthisact,overheadorindirectcostsincurredbyalocalpublicagency,Indiantribeornonprofitorganizationareeligibleforreimbursementandshallnotweighnegativelyintheevaluationoffundingproposals.EligiblegrantcostsshallincludeindirectcostsasdefinedinfederalOfficeofManagementandBudgetguidelines,aswellasreasonableoverheadcosts.Fornonprofitorganizations,grantsshallprovideforreimbursementofindirectcostsbyapplyingtheorganization’sfederallynegotiatedindirectcostrate,ifoneexists.Ifanegotiatedratedoesnotexist,theorganizationmayelecttousethedefaultindirectcostrateof10percent(10%)ofitsmodifiedtotaldirectcostsasdefinedbytheOfficeofManagementandBudget.

86179.3.Nograntsmadepursuanttothisdivisionshallresultinanunmitigatedincreaseinacommunity’sexposuretofloodhazardsorinanetreductioninfloodconveyancecapacityofanypubliclyownedfloodprotectionfacility.

86179.4.Inawardinggrantsforlandacquisition,theWildlifeConservationBoardshallgivepreferencetoorganizationsthatvoluntarilypaypropertytaxes.

CHAPTER13.FiscalProvisions.

86180.(a)Bondsinthetotalamountofeightbillioneighthundredseventy-sevenmilliondollars($8,877,000,000),orsomuchthereofasisnecessary,notincludingtheamountofanyrefundingbondsissuedinaccordancewithSection86192maybeissuedandsoldtoprovideafundtobeusedforcarryingoutthepurposesexpressedinthisdivisionandtoreimbursetheGeneralObligationBondExpenseRevolvingFundpursuanttoSection16724.5oftheGovernmentCode.Thebonds,whensold,shallbeandconstituteavalidandbindingobligationoftheStateofCalifornia,andthefullfaithandcreditoftheStateofCaliforniaisherebypledgedforthepunctualpaymentofbothprincipalof,andintereston,thebondsastheprincipalandinterestbecomedueandpayable.

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(b)TheTreasurershallfromtimetotimesellthebondsauthorizedbythecommitteepursuanttoSection86182.BondsshallbesolduponthetermsandconditionsspecifiedinoneormoreresolutionstobeadoptedbythecommitteepursuanttoSection16731oftheGovernmentCode.

86181.Thebondsauthorizedbythisdivisionshallbeprepared,executed,issued,sold,paid,andredeemedasprovidedintheStateGeneralObligationBondLaw,andalloftheprovisionsofthatlaw,asthatlawmaybeamended,applytothebondsandtothisdivisionandareherebyincorporatedinthisdivisionasthoughsetforthinfullinthisdivision,exceptsubdivisions(a)and(b)ofSection16727oftheGovernmentCode.

86182.(a)SolelyforthepurposeofauthorizingtheissuanceandsalepursuanttotheStateGeneralObligationBondLawofthebondsauthorizedbythisdivision,theWaterSupplyReliabilityandDroughtProtectionFinanceCommitteeisherebycreated.Forpurposesofthisdivision,theWaterSupplyReliabilityandDroughtProtectionFinanceCommitteeisthe“committee”asthattermisusedintheStateGeneralObligationBondLaw.

(b)ThefinancecommitteeconsistsoftheDirectorofFinance,theTreasurer,andtheController.Notwithstandinganyotherprovisionoflaw,anymembermaydesignatearepresentativetoactasthatmemberinhisorherplaceforallpurposes,asthoughthememberwerepersonallypresent.

(c)TheTreasurershallserveaschairpersonofthefinancecommittee.

(d)Amajorityofthefinancecommitteemayactforthefinancecommittee.

86183.Thefinancecommitteeshalldeterminewhetherornotitisnecessaryordesirabletoissuebondsauthorizedbythisdivisioninordertocarryouttheactionsspecifiedinthisdivisionand,ifso,theamountofbondstobeissuedandsold.Successiveissuesofbondsmaybeauthorizedandsoldtocarryoutthoseactionsprogressively,anditisnotnecessarythatallofthebondsauthorizedtobeissuedbesoldatanyonetime.

86184.ForpurposesoftheStateGeneralObligationBondLaw,“board,”asdefinedinSection16722oftheGovernmentCode,meanstheSecretaryoftheNaturalResourcesAgency.

86185.Thereshallbecollectedeachyearandinthesamemannerandatthesametimeasotherstaterevenueiscollected,inadditiontotheordinaryrevenuesofthestate,asuminanamountrequiredtopaytheprincipalof,andintereston,thebondseachyear.Itisthedutyofallofficerschargedbylawwithanydutyinregardtothecollectionoftherevenuetodoandperformeachandeveryactthatisnecessarytocollectthatadditionalsum.

86186.NotwithstandingSection13340oftheGovernmentCode,thereisherebyappropriatedfromtheGeneralFundintheStateTreasury,forthepurposesofthisdivision,anamountthatwillequalthetotalofthefollowing:

(a)Thesumannuallynecessarytopaytheprincipalof,andintereston,bondsissuedandsoldpursuanttothisdivision,astheprincipalandinterestbecomedueandpayable.

(b)ThesumthatisnecessarytocarryouttheprovisionsofSection86189,appropriatedwithoutregardtofiscalyears.

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86187.TheboardmayrequestthePooledMoneyInvestmentBoardtomakealoanfromthePooledMoneyInvestmentAccountinaccordancewithSection16312oftheGovernmentCodeforthepurposeofcarryingoutthisdivisionlessanyamountwithdrawnpursuanttoSection86189.Theamountoftherequestshallnotexceedtheamountoftheunsoldbondsthatthecommitteehas,byresolution,authorizedtobesold(excludinganyrefundingbondauthorizedpursuanttoSection86192)forthepurposeofcarryingoutthisdivision.TheboardshallexecutethosedocumentsrequiredbythePooledMoneyInvestmentBoardtoobtainandrepaytheloan.AnyamountsloanedshallbedepositedintheFundtobeallocatedinaccordancewiththisdivision.

86188.Notwithstandinganyotherprovisionofthisdivision,oroftheStateGeneralObligationBondLaw,iftheTreasurersellsbondsthatincludeabondcounselopiniontotheeffectthattheinterestonthebondsisexcludedfromgrossincomeforfederaltaxpurposesunderdesignatedconditionsorisotherwiseentitledtoanyfederaltaxadvantage,theTreasurermaymaintainseparateaccountsforthebondproceedsinvestedandfortheinvestmentearningsonthoseproceeds,andmayuseordirecttheuseofthoseproceedsorearningstopayanyrebate,penalty,orotherpaymentrequiredunderfederallawortakeanyotheractionwithrespecttotheinvestmentanduseofthosebondproceeds,asmayberequiredordesirableunderfederallawinordertomaintainthetax-exemptstatusofthosebondsandtoobtainanyotheradvantageunderfederallawonbehalfofthefundsofthisstate.

86189.Forthepurposesofcarryingoutthisdivision,theDirectorofFinancemayauthorizethewithdrawalfromtheGeneralFundofanamountoramountsnottoexceedtheamountoftheunsoldbondsthathavebeenauthorizedbythecommitteetobesold(excludinganyrefundingbondauthorizedpursuanttoSection86192)forthepurposeofcarryingoutthisdivisionlessanyamountborrowedpursuanttoSection86187.AnyamountswithdrawnshallbedepositedintheFund.AnymoneysmadeavailableunderthissectionshallbereturnedtotheGeneralFund,withinterestattherateearnedbythemoneysinthePooledMoneyInvestmentAccount,fromproceedsreceivedfromthesaleofbondsforthepurposeofcarryingoutthisdivision.

86190.AllmoneysdepositedintheFundthatarederivedfrompremiumandaccruedinterestonbondssoldpursuanttothisdivisionshallbereservedintheFundandshallbeavailablefortransfertotheGeneralFundasacredittoexpendituresforbondinterest,exceptthatamountsderivedfrompremiummaybereservedandusedtopaythecostofbondissuancepriortoanytransfertotheGeneralFund.

86191.PursuanttotheStateGeneralObligationBondLaw,thecostofbondissuanceshallbepaidoutofthebondproceeds,includingpremiums,ifany.Totheextentthecostofbondissuanceisnotpaidfrompremiumsreceivedfromthesaleofbonds,thesecostsshallbesharedproportionatelybyeachprogramfundedthroughthisdivisionbytheapplicablebondsale.

86192.ThebondsissuedandsoldpursuanttothisdivisionmayberefundedinaccordancewithArticle6(commencingwithSection16780)ofChapter4ofPart3ofDivision4ofTitle2oftheGovernmentCode,whichisapartoftheStateGeneralObligationBondLaw.Approvalbythevotersofthestatefortheissuanceofthebondsunderthisdivisionshallincludeapprovaloftheissuanceofanybondsissuedtorefundanybondsoriginallyissuedunderthisdivisionoranypreviouslyissuedrefundingbonds.Anybondrefundedwiththeproceedsofrefundingbondsasauthorizedbythissectionmaybelegallydefeasedtotheextentpermittedbylawinthemannerandtotheextentsetforthintheresolution,asamendedfromtimetotime,authorizingsuchrefundedbonds.

86193.Theproceedsfromthesaleofbondsauthorizedbythisdivisionarenot“proceedsoftaxes”asthattermisusedinArticleXIIIBoftheCaliforniaConstitution,andthedisbursementoftheseproceedsis

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notsubjecttothelimitationsimposedbythatarticle.

SECTION2.Section1ofthisactshalltakeeffectimmediatelyuponapprovalbythevotersoftheWaterSupplyandWaterQualityActof2018,assetforthinthatsectionattheNovember6,2018,statewidegeneralelection.Inordertofundawatersupplyreliabilityanddroughtprotectionprogram attheearliest possible date, it is necessary that this act takeeffect immediately.

SECTION3.ConflictingProvisions.

(a)TheprovisionsandintentoftheWaterSupplyandWaterQualityActof2018shallbegivenprecedenceoveranystatelaw,statute,regulationorpolicythatconflictswiththissection,andthepolicyandintentofthisactshallprevailoveranysuchcontrarylaw,statute,regulationorpolicy.

(b)Ifthisdivisionisapprovedbythevoters,butsupersededbyanyotherconflictingballotdivisionapprovedbymorevotersatthesameelection,andtheconflictingballotdivisionislaterheldinvalid,itistheintentofthevotersthatthisactshallbegiventhefullforceoflaw.

(c)Ifanyrivalorconflictinginitiativeregulatinganymatteraddressedbythisactreceivesthehigheraffirmativevote,thenallnon-conflictingpartsofthisactshallbecomeoperative.

SECTION4.Ifanyprovisionofthisactortheapplicationthereofisheldinvalid,thatinvalidityshallnotaffectotherprovisionsorapplicationsofthisactthatcanbegiveneffectwithouttheinvalidprovisionsorapplications,andtothisendtheprovisionsofthisactareseverable.

SECTION5.

Section2799.7isaddedtotheFishandGameCodetoread:

2799.7.Subdivision(f)ofSection2787doesnotapplytoSection2795.NotwithstandingotherprovisionsofthisarticleandSection13340oftheGovernmentCode,asofJuly2,2020fundstransferredpursuanttoSection2795shallbecontinuouslyappropriatedtotheWildlifeConservationBoardforpurposesofChapter8(commencingwithSection86120)ofDivision38oftheWaterCode.

SECTION6.

Part12isaddedtoDivision6oftheWaterCodetoread:

Section11860.(a)Notwithstandinganyotherprovisionoflaw(includingSection13340oftheGovernmentCodeandSections39710through39723oftheHealthandSafetyCode),thefeespaid,thecostofcomplianceinstrumentsacquired,andtheincreasedcostofpowerpurchasedbytheDepartmentofWaterResources,hereafter“Department,”asaresultoftheimplementationofDivision25.5oftheHealthandSafetyCodearecontinuouslyappropriatedtotheDepartmentfromtheGreenhouseGasReductionFund,asdefinedinSection16428.8oftheGovernmentCode,andthefeespaid,thecostofcomplianceinstrumentsacquiredandtheincreasedcostofpowerpurchasedbytheMetropolitanWaterDistrictofSouthernCalifornia(Statutes1969,chapter209,asamended),hereafter“District,”asaresultoftheimplementationofDivision25.5oftheHealthandSafetyCodearecontinuouslyappropriatedtotheDistrictfromtheGreenhouseGasReductionFund,asdefinedinSection16428.8oftheGovernmentCode.

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(b)ThefundsappropriatedtotheDepartmentpursuanttothissectionshallbeexpendedwithintheStateWaterResourcesDevelopmentSystem,andonconsumerwaterconservationprogramswithinthejurisdictionoftheStateWaterResourcesDevelopmentSystem.

(c)ThefundsappropriatedtotheDistrictpursuanttothissectionshallbeexpendedwithinthewaterstorage,treatment,conveyance,anddistributionsystemoftheDistrictandonconsumerwaterconservationprogramswithinthejurisdictionoftheDistrict.

(d)Oftheconsumerwaterconservationprogramsauthorizedbysubdivisions(b)and(c),highestpriorityshallbegiventothosebenefittingdisadvantagedcommunities(asdefinedsubdivision(a)ofSection79505.5,asitmaybeamended)andeconomicallydistressedareas(asdefinedinsubdivision(k)ofSection79702,asitmaybeamended).

(e)AllexpenditurespursuanttothissectionshallmeettherequirementsofChapter4.1ofPart2ofDivision26oftheHealthandSafetyCode.TheDepartmentandDistrictwillprovideanannualreporttotheAirResourcesBoardontheprior-year’sprojectimplementationalongwithaplanforcurrentyearimplementation.

(f)Nofundsprovidedbythispartshallbeexpendedtopaythecostsofthedesign,construction,operation,mitigation,ormaintenanceofnewDeltawaterconveyancefacilities.NofundsprovidedbythissectionshallbeexpendedtopaythecostsofconstructionofnewsurfacewaterstoragefacilitiesortoexpandthecapacityoftheCaliforniaAqueductortheColoradoRiverAqueduct.Thosecostsshallbetheresponsibilityofthewateragenciesthatbenefitfromthedesign,construction,operation,mitigation,ormaintenanceofthosefacilities.

(g)Allreasonableandfeasiblemeasuresshallbetakentoreduce,avoid,ormitigatesignificantnegativeenvironmentalimpactsfromprojectsundertakenpursuanttothissection.

Section11861.(a)Notwithstandinganyotherprovisionoflaw(includingSection13340oftheGovernmentCodeandSections39710through39723oftheHealthandSafetyCode),thefeespaid,thecostofcomplianceinstrumentsacquired,andtheincreasedcostofpowerpurchasedbytheContraCostaWaterDistrict,hereafter“District,”asaresultoftheimplementationofDivision25.5oftheHealthandSafetyCodearecontinuouslyappropriatedtotheDistrictfromtheGreenhouseGasReductionFund,asdefinedinSection16428.8oftheGovernmentCode,andthefeespaid,thecostofcomplianceinstrumentsacquiredandtheincreasedcostofpowerpurchasedbytheSanLuisandDeltaMendotaWaterAuthorityhereafter“SanLuisAuthority,”asaresultoftheimplementationofDivision25.5oftheHealthandSafetyCodearecontinuouslyappropriatedtotheSanLuisAuthorityfromtheGreenhouseGasReductionFund,asdefinedinSection16428.8oftheGovernmentCode.

(b)(1)ThefundsappropriatedtotheContraCostaWaterDistrictpursuanttothissectionshallbeexpendedwithintheboundariesoftheDistrict,andonconsumerwaterconservationprogramswithintheDistrict.

(2)ThefundsappropriatedtotheSanLuisAuthoritypursuanttothissectionshallbeexpendedwithinthewaterstorage,treatment,conveyance,anddistributionsystemoftheSanLuisAuthorityandonwaterconservation,waterqualityimprovement,watertreatment,watersupplyandsimilarwaterprogramswithinthejurisdictionoftheAuthority.

(c)Ofthefundsappropriatedpursuanttosubdivision(b),highestpriorityshallbegiventothoseprojects

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benefittingdisadvantagedcommunities(asdefinedsubdivision(a)ofSection79505.5,asitmaybeamended)andeconomicallydistressedareas(asdefinedinsubdivision(k)ofSection79702,asitmaybeamended).

(d)AllexpenditurespursuanttothissectionshallmeettherequirementsofChapter4.1ofPart2ofDivision26oftheHealthandSafetyCode.TheDistrictandSanLuisAuthoritywillprovideanannualreporttotheAirResourcesBoardontheprior-year’sprojectimplementationalongwithaplanforcurrentyearimplementation.

(e)Allreasonableandfeasiblemeasuresshallbetakentoreduce,avoid,ormitigatesignificantnegativeenvironmentalimpactsfromprojectsundertakenpursuanttothissection.