Tentative Deal Reached on State Drought and COVID-19 Funding by ACWA Staff Jun 30, 2021 Water News Gov. Gavin Newsom and legislative leaders reached a tentative agreement to provide more than $2 billion for drought infrastructure funding and $1 billion for water bill arrearages that resulted from the COVID-19 pandemic. The tentative agreement would allocate funding for drought relief, multi-benefit projects, Sustainable Groundwater Management Act (SGMA) implementation, conveyance projects, septic to sewer conversions, recycled water projects, groundwater remediation, and other drinking water and wastewater projects. The agreement passed out of the Senate Budget and Fiscal Review Committee on June 28 and is now awaiting a vote of the full Senate. If passed by the Senate, it will go to the Assembly for a floor vote. If it passes both houses it will go to the governor for signature. ACWA staff has been advocating extensively for investments in water infrastructure through state funds (such as the General Fund and/or general obligation bond funds) and federal funds. This advocacy has included strong support for conveyance, SGMA implementation, groundwater remediation, recycled water projects, and other funding categories. ACWA has provided funding recommendations to Newsom Administration officials, Senate and Assembly leadership, testified during budget subcommittees, and advocated to dozens of legislators and their staff. Some of the funding will go through existing funding programs. The details for some categories may be established through subsequent budget trailer bills. ACWA has also been advocating extensively for the funding for COVID-19-related arrearages. The details are expected to be outline in a budget trailer bill. ACWA is actively engaged in this work and will keep members informed about program details as they become available. The budget bill “junior,” AB 129 (Ting D-San Francisco), which went into print June 28, proposes the following categories: $663 million to the Department of Water Resources for the following projects and programs that include urban, small community and immediate drought relief, SGMA implementation and conveyance programs. $1.385 billion to the State Water Resources Control Board for drinking water projects, with priority given to disadvantaged communities. $985 million to the State Water Board for water arrearages due to COVID-19. This funding, if approved, will help to address some immediate drought-related issues. Additional funding is still needed to increase California’s water resilience. ACWA continues to advocate for further investments, particularly in the areas of dam safety, conveyance, PFAS remediation, recycled water, flood protection and other categories. AB 129 also includes a section that proposed additional funding contingent upon the enactment of future legislation. This contingent proposal would appropriate $2.5 billion from the General Fund for several categories, including: $730.7 million for a water and drought resilience package $440 million for a climate resiliency package $200 million for an agricultural package $258 million for a wildfire prevention and forest resilience package
