California BILL NUMBER: SB 732

BILL NUMBER: SB 732 AMENDED
BILL TEXT

AMENDED IN ASSEMBLY SEPTEMBER 7, 2007
AMENDED IN ASSEMBLY AUGUST 31, 2007
AMENDED IN ASSEMBLY JUNE 28, 2007
AMENDED IN ASSEMBLY JUNE 27, 2007
AMENDED IN SENATE JUNE 4, 2007
AMENDED IN SENATE MAY 25, 2007
AMENDED IN SENATE MAY 15, 2007
AMENDED IN SENATE APRIL 17, 2007

INTRODUCED BY Senator Steinberg
(Principal coauthor: Senator Negrete McLeod)
(Coauthor: Senator Wiggins)

FEBRUARY 23, 2007

An act to amend Sections 75076 and 75077 of, and to add Chapter 12
(commencing with Section 75100) and Chapter 13 (commencing with
Section 75120) to Division 43 of, the Public Resources Code, and to
amend Section 10533 of, and to add Section 10544.5 to, the Water
Code, relating to the environment.

LEGISLATIVE COUNSEL’S DIGEST

SB 732, as amended, Steinberg. Safe Drinking Water, Water Quality
and Supply, Flood Control, River and Coastal Protection Bond Act of
2006.
(1) The Safe Drinking Water, Water Quality and Supply, Flood
Control, River and Coastal Protection Bond Act of 2006, an initiative
statute approved by the voters at the November 7, 2006, statewide
general election makes about $5.4 billion in bond funds available for
safe drinking water, water quality and supply, flood control,
natural resource protection, and park improvements.
This bill would require the various departments that are to
implement the provisions of the initiative, among other things, to
develop and adopt guidelines and regulations, consult with other
entities, conduct studies, and follow certain procedures for
establishing a project, grant, loan or other financial assistance
program implementing the initiative.
The bill would specify various requirements for the expenditure of
bond funds for nature education and research facilities.
The bill would create the Sustainable Communities Council
(council) in state government. The bill would specify the council’s
responsibilities, including responsibilities related to bond funds
available pursuant to the initiative for urban greening and planning
grants and incentives for the development of regional and local land
use plans.
The bill would require, by January 1, 2009, and on or before
January 1 of each year thereafter, each state agency expending funds
pursuant to the initiative for a project, grant, or loan to report to
the Legislature on the recipient and amount of each project, grant,
or loan awarded during the previous fiscal year.
The bill would provide that in any case in which the provisions of
the bill and the initiative conflict, the initiative shall prevail.
(2) The Integrated Regional Water Management Planning Act of 2002
defines terms for its purposes, including defining “local public
agency” as a city, county, city and county, special district,
corporation, or mutual water company.
The bill would revise that definition to delete the inclusion of a
corporation in the definition, and to add an investor-owned utility
regulated by the Public Utilities Commission in the definition.
If the Department of Water Resources finds it necessary or
desirable to revise or replace the Integrated Regional Water
Management Guidelines, the bill would require it to develop new or
revised guidelines in consultation with specified entities, and
pursuant to other specified provisions enacted by the bill.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.

THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

SECTION 1. Section 75076 of the Public Resources Code is amended
to read:
75076. Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code does not apply to the
development and adoption of program guidelines and selection criteria
adopted pursuant to this division.
SEC. 2. Section 75077 of the Public Resources Code is amended to
read:
75077. Funds provided pursuant to this division, and any
appropriation or transfer of those funds, shall not be deemed to be a
transfer of funds for the purposes of Chapter 9 (commencing with
Section 2780) of Division 3 of the Fish and Game Code.
SEC. 3. Chapter 12 (commencing with Section 75100) is added to
Division 43 of the Public Resources Code, to read:
CHAPTER 12. IMPLEMENTATION PROVISIONS

Article 1. General Provisions

75100. (a) (1) Each state agency disbursing a competitive grant
pursuant to this division shall develop project solicitation and
evaluation guidelines. The guidelines may include a limitation on the
size of a competitive grant to be awarded.
(2) Prior to disbursing a competitive grant, each state agency
shall conduct at least one public meeting to consider public comments
prior to finalizing the guidelines. Each state agency shall publish
the draft solicitation and evaluation guidelines on its Internet Web
site at least 30 days before the public meetings. Meetings shall be
held at geographically appropriate locations. For statewide programs,
one meeting shall be conducted at a location in northern California
and one meeting shall be conducted at a location in southern
California. Upon adoption, each state agency shall transmit copies of
the guidelines to the fiscal committees and the appropriate policy
committees of the Legislature. To the extent feasible, each state
agency shall provide outreach to disadvantaged communities to promote
access and participation in those meetings.
(3) The guidelines may include a requirement for the applicant to
illustrate an ongoing commitment of financial resources, unless the
purposes of awarding a grant financed by this division is to assist a
disadvantaged community.
(4) The guidelines shall require a new grant solicitation for each
funding cycle. Each funding cycle shall consider only those
applications received as a part of the solicitation for that funding
cycle.
(b) Notwithstanding subdivision (a), a state agency, in lieu of
adopting guidelines pursuant to subdivision (a), may use guidelines
existing on January 1, 2007.
75101. (a) For the purposes of implementing Section 75025, the
State Department of Health Care Services shall do all of the
following:
(1) Develop guidelines pursuant to Section 75100 in collaboration
with the Department of Toxic Substances Control and the state board.
(2) In collaboration with the Department of Toxic Substances
Control and the state board, develop and adopt regulations governing
the repayment of costs that are subsequently recovered from parties
responsible for the contamination.
(b) For the purposes of implementing subdivision (a) of Section
75050, the Department of Fish and Game, when funding a natural
community conservation plan, shall fund only the development of a
natural community conservation plan that is consistent with the
Natural Community Conservation Planning Act (Chapter 10 (commencing
with Section 2800) of Division 3 of the Fish and Game Code).
(c) The San Francisco Bay Area Conservancy may use the funds made
available pursuant to subdivision (c) of Section 75060 to restore the
salt ponds in the south San Francisco Bay and to create trails and
visitor facilities for public use in that area.
75102. Before the adoption of a negative declaration or
environmental impact report required under Section 75070, the lead
agency shall notify the proposed action to a California Native
American tribe, which is on the contact list maintained by the Native
American Heritage Commission, if that tribe has traditional lands
located within the area of the proposed project.
75103. It is the intent of the Legislature that any public funds
made available by this division to investor-owned utilities regulated
by the Public Utilities Commission should be for the benefit of the
ratepayers or the public and not the investors pursuant to oversight
by the Public Utilities Commission.
75104. State agencies that are authorized to award a loan or
grant financed by this division shall provide technical assistance
with regard to the preparation of an application for a loan or grant
in a manner that, among other things, addresses the needs of
economically disadvantaged communities.

Article 2. Statewide Water Planning and Design

75110. In implementing Chapter 4 (commencing with Section 75041),
the department, in collaboration with the Army Corps of Engineers
and the operators of the flood control and water supply facilities
that affect the operation of the state plan for flood control, shall
do both of the following:
(a) (1) Conduct a study to reduce flood risks and increase water
supply reliability, throughout the Sacramento River and San Joaquin
River watersheds by reoperating the existing flood management and
water supply facilities.
(2) The study required by this subdivision shall also investigate
options to do all of the following:
(A) Optimize the conjunctive use of groundwater basins with flood
management and water supply facilities.
(B) Improve water quality.
(C) Improve fish, wildlife, and habitat protection and
restoration.
(3) The department shall complete the study on or before July 1,
2009, and present a report describing the results of the study to the
Legislature.
(b) Develop a real-time flood forecasting model, integrating the
operations of flood control facilities that affect the operation of
the state plan for flood control. The model shall be capable of both
real-time forecasts and simulations for alternative operational
scenarios and shall be operational on or before November 1,
2009 2013 .
75111. In implementing Chapter 4 (commencing with Section 75041),
the department shall, in concert with the lead scientist of the
California Bay-Delta Authority and the Independent Science Board,
develop two or more hydrology data sets designed to evaluate
plausible climate change scenarios. Upon development of the hydrology
data sets, the department shall, within one year from the date when
those data sets are developed, update the studies developed pursuant
to this article to reflect the climate change hydrology data sets and
report the results to the Legislature.

Article 3. The Nature Education and Museums Act of 2007

75112. (a) The Department of Parks and Recreation shall develop
and implement a competitive grant program to allocate funds made
available pursuant to subdivision (b) of Section 75063. This article
shall be known, and may be cited, as the Nature Education and Museums
Act of 2007.
(b) Eligible parties may include public institutions, including
local public institutions, and nonprofit organizations that have
missions that meet one or more of the following objectives:
(1) To combine the study of natural science with preservation.
(2) To serve diverse populations with demonstration and nature
education programs.
(3) To provide collections and programs involving the relationship
of Native American cultures to the environment.
(4) To research marine wildlife conservation.
(c) Eligible projects may include new and existing facilities and
equipment for nature education and research. Grants shall not be
awarded for ongoing activities.
(d) The Department of Parks and Recreation, in evaluating an
application for a grant under this article, shall give additional
consideration for each of the following criteria that the grant
satisfies:
(1) Serves underserved communities, including, but not limited to,
disadvantaged communities with limited access to parks and nature
education facilities, or communities with low educational
achievement.
(2) Designed to increase accessibility to the facility, including,
but not limited to, partnerships with public education institutions
or public transit availability.
(3) Illustrates an ongoing commitment of financial resources to
the project.
(4) Utilizes the United States Green Building Council’s building
standards.
(e) The grant program shall allow for several granting cycles.
(f) To accommodate a wide range of projects, the Department of
Parks and Recreation may establish a tiered grant maximum schedule
based on factors including the number of visitor days served by the
project.

Article 4. Sustainable Communities and Climate Change
Reduction

75114. (a) The Sustainable Communities Council is established in
state government. For purposes of this article, “council” means
Sustainable Communities Council. The council consists of the
Secretary of the Resources Agency, the Secretary for Environmental
Protection, the Secretary of Business, Transportation and Housing,
and two members of the public appointed by the Governor.
(b) The two public members shall each serve a term of four years
and may be reappointed to one additional term. The public members
shall be appointed on the basis of their educational and professional
qualifications and their general knowledge of and interest in
sustainable community planning.
(c) Except as provided in this section, members of the council
shall serve without compensation. A member shall be reimbursed for
actual and necessary expenses incurred in the performance of his or
her duties, and in addition shall be compensated at one hundred
dollars ($100) for each day during which the member is engaged in the
performance of official duties of the council. Payment for actual
and necessary expenses shall be paid only to the extent that those
expenses are not provided or payable by another public agency. The
total number of days for which a member may be compensated shall not
exceed 25 days in any one fiscal year.
75115. The Secretary of the Resources Agency is the chair of the
council.
75116. One member of the Senate, appointed by the Senate
Committee on Rules, and one Member of the Assembly, appointed by the
Speaker of the Assembly, shall meet with the council and may
participate on the council to the extent that participation is not
inconsistent with their respective offices as Members of the
Legislature.
75117. (a) The council’s meetings shall be open to the public and
shall be subject to the Bagley-Keene Open Meeting Act, Article 9
(commencing with Section 11120) of Chapter 1 of Part 1 of Division 3
of Title 2 of the Government Code.
(b) The council may sponsor conferences, symposia, and other
public forums, to seek a broad range of public advice when
establishing priorities for land use, community, and natural resource
planning.
75118. The council shall do all of the following:
(a) Coordinate activities of member state agencies to best improve
air and water quality, improve natural resource protection, increase
the availability of affordable housing, improve transportation, meet
the goals of the California Global Warming Solutions Act of 2006
(Division 25.5 (commencing with Section 38500) of the Health and
Safety Code), and encourage sustainable land use planning.
(b) Recommend policies to the Legislature and to appropriate state
agencies that will encourage the development of sustainable
communities. Sustainable communities are designed to improve
residents’ quality of life and environment by accomplishing goals
that may include improving air and water quality, improving natural
resources protection, improving recreational opportunities and green
space, increasing the availability of affordable housing, and
reducing automobile use and fuel consumption.
(c) Develop, manage, and provide data and information to local
governments that will assist local governments in developing and
planning sustainable communities.
(d) Develop and implement financial assistance programs to support
the planning and development of sustainable communities as described
in Sections 75118.1, 75118.2, 75118.3, 75118.4, 75118.5, and
75118.6. At a minimum, the programs shall do all of the following:
(1) Provide guidelines for awarding financial assistance,
including criteria for eligibility and additional consideration.
(2) Provide criteria for determining the amount of financial
assistance to be awarded. The council shall award a revolving loan to
an applicant for a planning project, unless the council determines
that the applicant lacks the fiscal capacity to carry out the project
without a grant.
(3) Provide for payments of interest on loans made pursuant to
this article. The rate of interest shall not exceed the rate earned
by the Pooled Money Investment Board.
(4) Provide for the time period for repaying a loan made pursuant
to this article.
(5) Provide for the recovery of funds from a city or a county that
fails to complete the project for which financial assistance was
awarded. The council shall direct the Controller to recover funds by
any available means.
(6) Provide technical assistance for application preparation.
(7) Convene an advisory group for each of the financial assistance
programs to advise the council in the development of program
guidelines. Members of the advisory group may include representatives
of cities, counties, councils of governments, and tribal governments
of California Native American tribes that have reservations or
rancherias within the state.
(8) Designate a state agency or department to administer each of
the financial assistance programs, such as the Department of
Conservation, the Department of Finance, or the Office of Planning
and Research.
75118.1. (a) The council shall develop a program to award
financial assistance to cities and counties for preparing and
adopting general plans that are designed to promote water
conservation, reduce automobile use and fuel consumption, encourage
greater infill and compact development, protect natural resources and
agricultural lands, revitalize urban and community centers, and
other state environmental programs. Financial assistance for this
purpose shall be funded from moneys made available pursuant to
subdivision (c) of Section 75065.
(b) For purposes of this section, preparing and adopting general
plans shall include the preparation, adoption, and amendment of
general plans pursuant to Article 5 (commencing with Section 65300)
and Article 6 (commencing with Section 65350) of Chapter 3 of
Division 1 of Title 7 of the Government Code, including the
application of geographic information systems, as well as compliance
with the California Environmental Quality Act (Division 13
(commencing with Section 21000)).
(c) Financial assistance pursuant to this section shall not exceed
one-half of the costs of preparing and adopting the general plan.
(d) In its application to the council for financial assistance
pursuant to this section, a city or a county shall do all of the
following:
(1) Submit and declare its intention to follow a detailed budget
and schedule for the preparation and adoption of its general plan.
The budget and schedule shall be of sufficient detail to allow the
council to assess the progress of the city or the county at regular
intervals.
(2) Declare its intention to prepare and adopt, a general plan
that will be consistent with either of the following:
(A) A Regional Blueprint Project funded by a Regional Blueprint
Planning Grant distributed through the Department of Transportation
as part of the federal Safe, Accountable, Flexible, Efficient
Transportation Equity Act: A Legacy for Users (SAFETEA-LU) (Public
Law 109-59), if one exists.
(B) The regional transportation planning requirements of Section
65080 of the Government Code.
(3) Declare its intention to review and, when necessary, revise
its general plan at least every 10 years after the adoption of the
general plan funded pursuant to this section.
(e) The program shall give additional consideration to an
application pursuant to this section from a city or a county that
adopts a resolution that declares its intent to do each of the
following:
(1) Prepare and adopt its general plan in collaboration with the
county and all of the cities in the same county.
(2) Prepare and adopt its general plan in collaboration with all
of the cities in the same council of governments or in the same
subregional council of governments. The council may request a council
of governments to review and endorse applications for financial
assistance by cities and counties on the basis of their priorities
for implementation of Regional Blueprint Projects or similar regional
planning documents.
(3) Impose fees pursuant to Section 65104 and subdivision (b) of
Section 66014 of the Government Code to generate revenue to pay for a
portion of the costs that are reasonably necessary to review, and,
if necessary, revise the general plan funded pursuant to this
section.
(f) The council may develop additional minimum requirements for
general plans that may be awarded funds pursuant to the program,
including, but not limited to, any of the following:
(1) Implementation of the state’s planning policies set by Section
65041.1 of the Government Code.
(2) Healthy community initiatives, including community greening
and safe routes to schools.
(3) Meets applicable air quality implementation plans.
(4) Plans urban trails that provide safe routes for both
recreation and for travel between residences, schools, commercial
centers, and workplaces, including regional recreation corridors.
(5) Reduces greenhouse gas emissions consistent with the
California Global Warming Solutions Act of 2006 (Division 25.5
(commencing with Section 38500) of the Health and Safety Code).
75118.2. (a) The council shall develop a program to award
financial assistance to cities and counties for implementing general
plans that, at a minimum, meet the requirements of general plans that
are eligible to receive funds under Section 75118.1. Financial
assistance for this purpose shall be funded from moneys made
available pursuant to subdivision (c) of Section 75065.
(b) For the purposes of this section, preparing and adopting
programs to implement city or county general plans shall include the
preparation and adoption of planning documents and compliance with
the California Environmental Quality Act (Division 13 (commencing
with Section 21000)).
(c) Eligible implementation projects include, but are not limited
to, all of the following:
(1) Master environmental impact reports.
(2) Specific plans.
(3) Habitat conservation plans.
(4) Zoning ordinances.
(5) Optional general plan elements, including, but not limited to,
agricultural or rangeland elements.
(d) Financial assistance awarded pursuant to this section shall
not exceed one-half of the project’s cost.
75118.3. (a) The council shall develop a program to award
financial assistance to councils of governments, countywide
authorities, and metropolitan planning organizations to support the
preparation and adoption of regional blueprint planning programs.
(b) Financial assistance for this purpose shall be funded from
moneys made available pursuant to subdivision (c) of Section 75065.
(c) In awarding financial assistance pursuant to this section, the
council shall give first priority to councils of governments,
countywide authorities, and metropolitan planning organizations that
were not previously eligible to receive a Regional Blueprint Planning
Grant distributed through the Department of Transportation as part
of the federal Safe, Accountable, Flexible, Efficient, Transportation
Equity Act: A Legacy for Users (SAFETEA-LU) (Public Law 109-59).
(d) Financial assistance to a council of governments, a countywide
authority, or a metropolitan planning organization pursuant to this
section shall not exceed 50 percent of the costs of preparing and
adopting a regional blueprint planning program or regional growth
plan.
(e) All applications for financial assistance pursuant to this
section shall do both of the following:
(1) Submit and declare its intention to follow a detailed budget
and schedule for the preparation, adoption, and implementation of its
regional blueprint planning program. The budget and schedule shall
be of sufficient detail to allow the council to assess the progress
of the program at regular intervals.
(2) Prepare and adopt a regional blueprint planning program that
will be consistent with the regional transportation planning
requirements of Section 65080 of the Government Code, if applicable.
(f) The council may develop additional minimal requirements for
regional plans that may be awarded financial assistance from the
program.
75118.4. (a) The council shall develop a program to award
financial assistance to councils of governments, countywide
authorities, and metropolitan planning organizations to support the
implementation of regional blueprint planning programs.
(b) Financial assistance for this purpose shall be funded from
moneys made available pursuant to subdivision (c) of Section 75065.
(c) Financial assistance awarded pursuant to this section shall
not exceed one-half of the project’s cost.
(d) Eligible implementation projects include, but are not limited
to, all of the following:
(1) Improvements to the identification of natural resources, open
space, and agricultural lands.
(2) Identification of opportunities for increased transportation
efficiencies.
(3) Planning for mixed-use and other projects that accommodate
housing opportunities for persons and families of all income levels.
(4) Projects that assist in reducing air pollution and greenhouse
gas emissions.
(e) The council shall award financial assistance only to projects
that implement a regional blueprint that meets the minimum
requirements for plans developed under Section 75118.3.
(f) The council may develop additional minimum requirements for
projects that may be awarded financial assistance from the program.
75118.5. (a) The council shall develop and implement a grant
program for urban greening projects that shall distribute moneys made
available pursuant to subdivision (a) of Section 75065.
(b) The purpose of the grant program is to improve the
sustainability and livability of communities through projects with
multiple benefits, including, but not limited to, urban forestry and
landscaping projects.
(c) The program shall offer grants to eligible cities, counties,
and nonprofit organizations for projects that decrease air and water
pollution, reduce natural resource and energy use, or improve
adaptability to climate change. Eligible projects shall not include
mitigation actions that are required under existing law.
(d) The council shall develop minimum requirements for eligible
projects. At a minimum, the requirements shall require both of the
following:
(1) Applicants to utilize natural systems to achieve project
benefits.
(2) The creation, enhancement, and expansion of community green
spaces that provide multiple benefits that include, but are not
limited to, the enhancement of at least one of the following:
(A) Tree canopy.
(B) Urban forestry.
(C) Local parks and open space.
(D) Greening of existing public lands and schools.
(E) Multiobjective stormwater projects, including construction of
permeable surfaces.
(F) Urban stream restoration and enhancement.
(G) River parkway urban development and improvement.
(H) Green roofs.
(I) Community , demonstration, or outdoor education
gardens and orchards.
(J) Urban heat island mitigation and energy conservation through
landscaping.
(e) The council shall give additional consideration to a project
for each of the following criteria met:
(1) The project utilizes interagency cooperation and integration.
(2) The project is within a jurisdiction with a general plan that
has been updated within the 10 years previous to the date of
application in a manner that is consistent with the minimum general
plan requirements in Section 75118.1.
(3) The project uses existing public lands and facilitates use of
public resources and investments including schools.
(f) Up to 25 percent of the moneys allocated to the program may be
used to award revolving loans or grants to cities and counties for
the purpose of creating urban greening plans that will serve as the
master document guiding and coordinating greening projects through
the applicant’s jurisdiction. These urban greening plans shall be
consistent with the jurisdiction’s general plan.
75118.6. The council shall grant to the California Coastal
Commission a minimum of 3 percent, up to a total of five million
dollars ($5,000,000), of the moneys appropriated to the council from
subdivision (c) of Section 75065. The California Coastal Commission
shall use the moneys to grant local public agencies assistance in
completing or updating local coastal programs consistent with Chapter
6 (commencing with Section 30500) of Division 20.
75118.7. Nothing in this article grants the council authority to
impinge in any way on local governments’ land use authority.
SEC. 4. Chapter 13 (commencing with Section 75120) is added to
Division 43 of the Public Resources Code, to read:
CHAPTER 13. REPORTING PROVISIONS

75120. On or before January 1, 2009, and on or before January 1
of each year thereafter, each state agency expending funds pursuant
to this division for a project, grant, or loan shall report to the
Legislature on the recipient and amount of each project, grant, or
loan awarded during the previous fiscal year. The information shall
include the total amount awarded, categorized by project, grant, or
loan, the geographic distribution of a project, grant, or loan
awarded under this division, and the intended public and
environmental benefit that the award provides. The information also
shall include data on the balance of a fund available under this
division for expenditures and grants in that fiscal year and future
fiscal years.
SEC. 5. Section 10533 of the Water Code is amended to read:
10533. “Local public agency” means any city, county, city and
county, special district, investor-owned utility regulated by the
Public Utilities Commission, or mutual water company.
SEC. 6. Section 10544.5 is added to the Water Code, to read:
10544.5. If the department finds it necessary or desirable to
revise or replace the Integrated Regional Water Management
Guidelines, it shall do
both of the following:
(a) Develop new or revised guidelines in consultation with the
board, the California Bay-Delta Authority, the Department of Fish and
Game, and the State Department of Health Care Services.
(b) Develop new or revised guidelines pursuant to Section 75100 of
the Public Resources Code.
SEC. 7. In any case in which any of the provisions of this act,
and Division 43 (commencing with Section 75001) of the Public
Resources Code conflict, that division shall prevail.
SEC. 8. The provisions of this act are severable. If any provision
of this act or its application is held invalid, that invalidity
shall not affect other provisions or applications that can be given
effect without the invalid provision or application.

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