Article 4. Interim Water Reliable Supply And Water Quality Infrastructure And Management Program of California Water Code >> Division 26. >> Chapter 9. >> Article 4.

(a) "Delta export service area," as used in this article, means both of the following:
  (1) The counties included within the Association of Bay Area Governments.
  (2) Those areas of the state outside the delta that receive water from the State Water Project or the Central Valley Project, either directly or by exchange, by means of diversions from the delta.
  (b) "Local agency," as used in this article, means any city, county, city and county, district, or other political subdivision of the state.

(a) There is hereby created the Interim Water Supply and Water Quality Infrastructure and Management Subaccount.
  (b) For the purposes of this article, "subaccount" means the Interim Reliable Water Supply and Water Quality Infrastructure and Management Subaccount.

The sum of one hundred eighty million dollars ($180,000,000) is hereby transferred from the account to the subaccount for the purposes of this article.

(a) The money in the subaccount, upon appropriation by the Legislature to the department, may be used by the department to provide grants or loans, or any combination thereof, which are approved by the Governor, to local agencies located in the delta export service areas for programs or projects that can be completed and provide the intended benefits not later than March 8, 2009, and are designed to increase water supplies, enhance water supply reliability, or improve water quality.
  (b) The department shall provide grants for programs or projects located outside the delta and which meet one of the following requirements:
  (1) The project or program constructs new or expands existing groundwater storage and recovery projects or acquires rights to use storage in existing reservoirs.
  (2) The project or program implements measures that facilitate improved water treatment, water transfers, or exchanges, including, but not limited to, a project that improves water quality by shifting reliance from lower quality to higher quality water supplies.
  (3) The project or program implements state of the art agricultural water conservation programs, and programs that treat or manage agricultural drainage water for reuse or instream water quality benefits.
  (c) The department shall list the projects that are proposed to be funded from the subaccount.

For purposes of prioritizing eligible programs or projects for funding under this article, the department shall give priority to programs or projects that meet one or more of the following requirements:
  (a) Can be completed expeditiously and thereby provide near term benefits and more immediate mitigation of urgent problems related to water supply and water quality.
  (b) Implements actions to improve water quality and protect water level conditions in San Luis Reservoir.
  (c) Includes public-private partnerships or cost sharing arrangements that maximize public benefits.
  (d) Sponsored by a public agency with water supplies that are being or would be impacted to a greater degree by delta-related water supply shortages and water quality degradation.

The state, to the greatest extent possible, shall seek matching federal funds to implement this article.

Funds available from the subaccount shall be available for all phases of project development including, but not limited to, project administration, permitting and environmental compliance, feasibility studies, and construction.

Not more than 5 percent of the total amount deposited in the subaccount may be used to pay costs incurred in connection with the administration of this article.