Article 4. Administration of California Water Code >> Division 6. >> Part 3. >> Chapter 11. >> Article 4.

The department shall establish criteria for determining the eligibility of water conservation projects for assistance under this chapter and shall establish criteria for determination of the economic, financial, and engineering feasibility of proposed water conservation projects. The department shall establish guidelines to encourage feasibility studies to determine potential sources of conserved water for purposes of this chapter and to determine parties interested in contracting with potential water purchasers pursuant to this chapter.

The State Water Resources Control Board shall establish criteria for determining both of the following:
  (a) The eligibility of water reclamation projects for assistance under this chapter.
  (b) The economic, financial, and engineering feasibility of proposed reclamation projects.

The department shall establish criteria for determining whether a water conservation or reclamation project results in a net increase in the amount of water made available for use and does not interfere with an established right to use of water by any other person or entity.

The department and the State Water Resources Control Board shall only approve for funding by the state under this chapter those projects which result in a net increase in the amount of water available for use and which do not interfere with an established right to use of water by any other person or entity. Any agreement between parties for a conservation or reclamation project not using state financing shall not require approval by the department or the State Water Resources Control Board under this chapter but shall comply with the criteria adopted under Section 11981 or 11982.

The department is authorized to adopt those rules and regulations as may be necessary to carry out, and as are consistent with, this chapter.

In providing financial assistance pursuant to this chapter, the department shall impose terms and conditions that are designed to protect the state's investment and that are necessary to carry out the purposes of this chapter. The department shall keep full and complete records and accounts concerning all of its transactions under this chapter and shall render a report on those transactions to the Legislature within 15 days after the commencement of the first regular session of the Legislature following the effective date of this chapter.