Chapter 9. Water Recycling of California Water Code >> Division 26.7. >> Chapter 9.

The sum of seven hundred twenty-five million dollars ($725,000,000) shall be available, upon appropriation by the Legislature from the fund, for grants or loans for water recycling and advanced treatment technology projects, including all of the following:
  (a) Water recycling projects, including, but not limited to, treatment, storage, conveyance, and distribution facilities for potable and nonpotable recycling projects.
  (b) Contaminant and salt removal projects, including, but not limited to, groundwater and seawater desalination and associated treatment, storage, conveyance, and distribution facilities.
  (c) Dedicated distribution infrastructure to serve residential, commercial, agricultural, and industrial end-user retrofit projects to allow use of recycled water.
  (d) Pilot projects for new potable reuse and other salt and contaminant removal technology.
  (e) Multibenefit recycled water projects that improve water quality.
  (f) Technical assistance and grant writing assistance for disadvantaged communities.

At least a 50-percent local cost share shall be required for projects funded pursuant to this chapter. That cost share may be suspended or reduced for disadvantaged communities and economically distressed areas.

Projects funded pursuant to this chapter shall be selected on a competitive basis, considering all of the following criteria:
  (a) Water supply reliability improvement.
  (b) Water quality and ecosystem benefits related to decreased reliance on diversions from the Delta or instream flows.
  (c) Public health benefits from improved drinking water quality or supply.
  (d) Cost-effectiveness.
  (e) Energy efficiency and greenhouse gas emission impacts.
  (f) Reasonable geographic allocation to eligible projects throughout the state, including both northern and southern California and coastal and inland regions.

For purposes of this chapter, competitive programs shall be implemented consistent with water recycling programs administered pursuant to Sections 79140 and 79141 or consistent with desalination programs administered pursuant to Sections 79545 and 79547.2.