Gov. Jerry Brown unveiled a revised budget proposal Thursday that calls for $2.2 billion in additional spending in 2015-’16 for immediate response to drought impacts.

The proposed drought funding – a combination of accelerated spending from Proposition 1, new dollars from the state’s general fund and Cap and Trade revenues – would be targeted at water conservation programs, local water supply protection and expansion, and emergency response.

Specifically included is $4 million from the general fund for the Save Our Water program, which is managed by ACWA in partnership with the California Department of Water Resources and serves as the state’s official water conservation outreach program. The budget proposal notes the funds will be used to help reach the state’s largest residential water users with focused information to reduce their water use.

At a Capitol press conference, the governor said the drought funding would assist farmworkers, expand urban and agricultural water conservation, develop local supplies and provide incentives for water-saving technologies. He said the spending is designed to accelerate key actions outlined in his California Water Action Plan.

“Instead of being a grab-bag created by legislative back and forth, this has a cohesiveness created by the Water Action Plan,” he said. “It all fits together.”

The $2.2 billion in proposed new drought response spending would augment the $1.9 billion previously appropriated by the Legislature through the last state budget and emergency drought legislation enacted in February 2014 and March 2015.

The proposed budget summary document is available here.

Key spending areas and funding sources outlined in the May revision include:

Protecting and Expanding Local Water Supplies

• $1.7 billion, available over the next three years, for the following programs administered by the State Water Resources Control Board:
  • $784 million for projects that clean up groundwater contamination (Prop. 1)
  • $475 million for water recycling and advanced treatment projects (Prop. 1)
  • $180 million for safe drinking projects, with priority on small systems in disadvantaged communities (Prop. 1)
  • $160 million for wastewater treatment programs for small communities (Prop. 1)
  • $100 million for stormwater management programs that also contribute to local water supplies (Prop. 1)

• $110 million for the following programs administered by the Department of Water Resources:
  • $60 million to support local groundwater sustainability planning efforts (Prop. 1)
  • $50 million, available over the next two years, for local brackish water and ocean water desalination projects (Prop. 1)

Water Conservation

• $104 million for the following urban water conservation programs:
  • $43 million for consumer rebate programs to replace inefficient dishwashers and toilets and save energy ($30 million from Cap and Trade, $13 million from Prop. 1), consistent with April 1 executive order
  • $27 million to replace lawns in underserved communities with water-efficient landscaping (Prop. 1), consistent with April 1 executive order
  • $20 million for Water Energy Grant Program to reduce energy demand and emissions through projects that also support water-use efficiency and conservation (Cap and Trade)
  • $10 million to implement the CalConserve Program to help finance water-efficiency upgrades through revolving loans (Prop. 1)
  • $4 million to augment the Save Our Water program (general fund)
• $75 million for agricultural water efficiency programs ($40 million from Cap and Trade, $35 million from Prop. 1)
• $30 million to begin implementing the Water Energy Technology Program to fund innovative technologies (Cap and Trade), consistent with April 1 executive order
• $13 million to DWR for technical assistance, data collection and research to support long-term water -use efficiency in urban and agricultural sectors (Prop. 1)
• $23 million for water conservation projects at state facilities

Emergency Response

• $22.2 million for the Office of Emergency Services to support local jurisdictions for drought‑related projects, including restoring / replacing public infrastructure damaged by drought and delivering potable water (general fund)
• $7.5 million for the Department of Community Services Development for emergency assistance to unemployed farmworkers, including job training and assistance (general fund)
• $6 million for the Department of Housing and Community Development to assist or relocate households without potable water sources due to drought (general fund)
• $1.4 million for the State Water Board to increase enforcement of water use restrictions and conduct additional inspections of diversion facilities to verify compliance with water rights laws (general fund)

Additional Local Enforcement Authority

In addition to the additional funding, the May revision of the budget proposes legislation on additional enforcement authority for local agencies to help achieve mandatory water conservation targets. The proposed legislative language was not immediately available, but the budget document said it will provide “all water agencies and local governments a consistent, minimum set of enforcement authorities to achieve required water conservation” and allow “penalties to be issued administratively by wholesale and retail water agencies, as well as city and county governments” and enable those entities to enforce “local water waste restrictions and Water Board conservation restrictions.”

Next Steps

The Senate and Assembly budget subcommittees will continue to meet in the coming weeks to consider and fine tune the May revision of the governor’s budget proposal. The Legislature is expected to vote on the budget and accompanying trailer bills by the June 15 deadline.

ACWA is reviewing the May revision and will keep members informed.