Delta Levees and Canal Subsidence Fund.

Existing law establishes in the agency the Sacramento-San Joaquin Delta Conservancy. Existing law requires the conservancy to act as a primary state agency to implement ecosystem restoration in the Delta and to support efforts that advance environmental protection and the economic well-being of Delta residents. Existing law provides for the preservation of specified management areas of the Suisun Marsh, pursuant to a protection plan prepared and adopted by the San Francisco Bay Conservation and Development Commission, as provided. Existing law establishes the Delta Stewardship Council, and requires the council to develop, adopt, and implement a comprehensive long-term management plan for the Delta, known as the Delta Plan, as provided.

Existing law requires the department, upon appropriation, to reimburse an eligible local agency for costs incurred for the maintenance or improvement of specified levees, in an amount not to exceed 75% of costs incurred in excess of a set amount per mile, as provided.

This bill would require the department to reimburse 100% of the excess costs if a local agency demonstrates economic hardship and the reimbursement is for a project that addresses a threat to life, property, water supply, or habitat.

This bill would establish the Delta Levees and Canal Subsidence Fund in the State Treasury and, upon appropriation, would make the moneys in the fund available to the Secretary of the Natural Resources Agency for expenditure consistent with the allocations described below. The bill would authorize the secretary to seek out, and the fund to accept, state moneys from, among other sources, any bond funds, the General Fund, or the Greenhouse Gas Reduction Fund. The bill would authorize the fund to accept moneys from nonstate sources, including federal and private moneys, and would continuously appropriate those moneys without regard to fiscal year, for allocation as described below, thereby making an appropriation. The bill would require the secretary to allocate moneys in the fund, as specified, subject to funding availability, as follows: (1) to the department for the purposes of supporting capital improvements to restore the original design water conveyance capacity for state water conveyance systems, as defined, impacted operationally by land subsidence, and (2) to the department for projects in the Delta or Suisun Marsh to improve existing levees, as specified. The bill would require the conservancy to convene a working group with specified representation to develop a list of recommended projects, as provided. The bill would require the conservancy to publish the list on its internet website, allow 45 days for public comment, and hold at least one community meeting before the list is approved by the conservancy's governing board. The bill would require the department to administer any grants or funding agreements from the list of projects. The bill would require at least 15% of the funds for projects in the Delta or Suisun Marsh, as described in (2) above, to be for Delta levee projects from the list developed by the working group, as provided. The bill would authorize the department to impose additional requirements on projects to meet the conditions of the funding source, as provided. The bill would prohibit these moneys from being expended to pay the costs of the design, construction, operation, mitigation, or maintenance of any additional Delta conveyance facilities, as provided. The bill would require the secretary, no later than January 1, 2032, and by January 1 every 5 years thereafter, to report to the Legislature on expenditures, as provided.

This bill would also require the department to provide a report to the budget committees of the Assembly and Senate no later than May 1, 2027, and biennially thereafter, that contains a 5-year spending plan detailing the engineering and capital improvements necessary to address state water conveyance systems impacted operationally by land subsidence, as provided. The bill would authorize the department to charge the state water supply contractors for the actual and reasonable cost of developing the plan.