AMENDED IN SENATE JUNE 25, 2026

AMENDED IN SENATE JUNE 15, 2026

AMENDED IN ASSEMBLY MAY 18, 2026

AMENDED IN ASSEMBLY APRIL 6, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

95

Introduced by Assembly Member Aguiar-Curry

February 19, 2026

An act to amend Sections 32300, 32301, 32310, 32320, 32330, 32340, 32350, 32360, 32360.5, 32362, 32363, 32364, 32364.5, and 32376 of, to amend the heading of Chapter 3 (commencing with Section 32320) of Division 22.3 of, to amend the heading of Division 22.3 (commencing with Section 32300) of, and to add Section 32361 to, the Public Resources Code, relating to conservation.

Vote: majority   Appropriation: no   Fiscal committee: yes   Local program: yes

LEGISLATIVE COUNSEL’S DIGEST

Existing law establishes in the Natural Resources 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 specifies the composition of the governing board of the conservancy, including 11 voting members, and requires liaison advisers to serve in an advisory, nonvoting capacity. Existing law requires the conservancy to prepare and adopt a strategic plan to achieve the goals of the conservancy and requires the strategic plan to be consistent with certain plans. Existing law authorizes the conservancy to engage in partnerships with nonprofit organizations, local public agencies, and landowners, and authorizes the conservancy to provide grants and loans to state agencies, local public agencies, and nonprofit organizations to further the goals of the conservancy. Existing law establishes the Sacramento-San Joaquin Delta Conservancy Fund in the State Treasury. Existing law makes moneys in the fund available, upon appropriation by the Legislature, for purposes of these provisions.

This bill would expand the area covered by the conservancy to include the Valley and Lake, as defined. The bill would rename the conservancy the Valley, Lake, and Delta Conservancy and make conforming changes. The bill would rename the Sacramento-San Joaquin Delta Conservancy Fund the Delta Conservancy Fund and create the Valley and Lake Conservancy Fund in the State Treasury, moneys in which would be available upon appropriation by the Legislature for purposes of the conservancy in the Valley and Lake. The bill would add to the governing board one additional voting member who is appointed by the Lake County Board of Supervisors and one who is a tribal representative appointed by the Governor, subject to confirmation by the Senate. By imposing additional requirements on the Lake County Board of Supervisors, the bill would impose a state-mandated local program. The bill would add one additional liaison adviser who is a designee of the Sierra Nevada Conservancy and one who is a designee of the California Central Valley Flood Control Association. The bill would also authorize the conservancy to engage in partnerships with, and to award grants and loans to, tribal organizations. The bill would establish the Valley and Lake Program, under the administration of the conservancy, to support efforts that advance the environmental protection and the economic well-being of Valley and Lake residents.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

The people of the State of California do enact as follows:

SECTION 1.

The heading of Division 22.3 (commencing with Section 32300) of the Public Resources Code is amended to read:

Division 22.3. VALLEY, LAKE, AND DELTA CONSERVANCY

SEC. 2.

Section 32300 of the Public Resources Code is amended to read:

32300.

This division shall be known, and may be cited, as the Valley, Lake, and Delta Conservancy Act.

SEC. 3.

Section 32301 of the Public Resources Code is amended to read:

32301.

(a) The Legislature finds and declares all of the following:

(1) The Sacramento-San Joaquin Valley and the Delta, to which the tributaries, rivers, sloughs, and channels in the Valley drain, are unique natural resources of local, state, and national significance.

(2) At 1,300 square miles, the Delta is the largest estuary on the west coast of North and South America. Its tributaries, rivers, and labyrinths of sloughs and channels are home to 750 species of plants and wildlife, as well as 55 species of fish, provide habitat for 700 native plant and animal species, and are part of the Pacific Flyway.

(3) The Delta also faces many environmental challenges, such as land subsidence, pressure on native species, altered water flow, and habitat conversion.

(4) The Delta contains more than 500,000 acres of agricultural land, with unique soils, and farmers who are creative and utilize innovative agriculture, such as carbon sequestration crops, subsidence reversal crops, wildlife-friendly crops, and crops direct for marketing to the large urban populations nearby.

(5) The Valley provides critical habitat and ecological value to the State of California. Home to unique habitat and species, it is a crucial part of the Pacific Flyway and holds critical habitat for many species in decline, including the western monarch butterfly.

(6) The Valley faces many environmental challenges, such as land fallowing, water scarcity, invasive species, destruction of habitat, and fire risks. The Valley also faces environmental justice challenges, including access to clean, safe, and affordable drinking water, lack of green space, exposure to pollutants and toxins, degraded air quality, and inequitable access to recreation.

(7) The Valley, Lake, Delta, and Suisun Marsh provide numerous opportunities for recreation, such as boating, camping, kayaking, fishing, hiking, birding, and hunting. Urban areas occur throughout the Valley and the areas surrounding the Delta, making it important to provide access to this region for all.

(8) Clear Lake is the oldest species-rich, warm water, natural lake in North America and largest natural freshwater lake wholly within the state. It supports the surrounding ecosystems of native plants and animals, as well as species introduced by the Department of Fish and Wildlife. Clear Lake and the surrounding environment are also a home to endangered and rare animal species. However, the lake also experiences environmental challenges such as harmful algal blooms and mercury contamination from legacy mining issues.

(9) The Delta’s history is rich with a distinct natural, agricultural, and cultural heritage. It is home to the community of Locke, the only town in the United States built primarily by early Chinese immigrants. Other legacy communities include Bethel Island, Clarksburg, Courtland, Freeport, Hood, Isleton, Knightsen, Rio Vista, Ryde, and Walnut Grove.

(10) The Valley, Lake, and Delta are the ancestral home to many tribes, including the Maidu, Miwok, Pomo, Yuki, Wappo, and Yokut tribes, and hold cultural significance to tribes throughout the state.

(11) The Delta is home to more than 500,000 people and 200,000 jobs, and contributes over thirty-five billion dollars ($35,000,000,000) to the state’s economy.

(12) In addition, the Delta provides water to more than 25,000,000 Californians and 3,000,000 acres of agricultural land. It supports a four-hundred-billion-dollar ($400,000,000,000) economy and is traversed by energy, communications, and transportation facilities vital to the economic health of California.

(13) Together, the Valley, Lake, and Delta create a complex, interrelated ecosystem that is essential to the State of California and its conservation, equity, and climate goals.

(14) The State of California has a commitment, and recognizes that it is in the best interest of the people of California, to fight climate change, protect biodiversity, achieve the state’s 30x30 goals, as defined in Section 71450, implement nature-based climate solutions, create equity, create access to California resources for all, and ensure equitable access to the outdoors, among other priorities.

(15) A Valley, Lake, and Delta Conservancy can support efforts that advance both the environmental protection and economic well-being of Valley Valley, Lake, and Delta residents in a complementary manner and in coordination with relevant local, state, and federal agencies, including other state conservancies and the Delta Protection Commission, including all of the following:

(A) Protect, enhance, and restore ecosystem function and habitat.

(B) Support on-farm activities that contribute to wildlife habitat and provide multiple conservation benefits.

(C) Protect and preserve agriculture and working landscapes.

(D) Provide increased opportunities for tourism and recreation.

(E) Promote Delta legacy communities and economic vitality in the Delta in coordination with the Delta Protection Commission.

(F) Increase the resilience of the Valley, Lake, and Delta to the effects of climate change and natural disasters, such as floods, droughts, wildfires, and earthquakes.

(G) Protect and improve water quality.

(H) Assist the regional economy through the operation of the conservancy’s program, including, but not limited to, supporting workforce development.

(I) Identify priority projects and initiatives for which funding is needed.

(J) Protect, conserve, and restore the region’s physical, agricultural, cultural, historical, and living resources.

(K) Assist local entities in the implementation of their habitat conservation plans and natural community conservation plans.

(L) Promote environmental education.

(M) Implement recommendations of the Blue Ribbon Committee for the Rehabilitation of Clear Lake.

(b) It is the intent of the Legislature that the expansion of the Sacramento-San Joaquin Delta Conservancy to the Valley, Lake, and Delta Conservancy not distract or diminish supplant the conservancy’s work in the Delta in any way. Rather, the intent of the expansion is to provide additional resources to achieve the conservancy’s mission within the Delta.

SEC. 4.

Section 32310 of the Public Resources Code is amended to read:

32310.

For the purposes of this division, the following terms have the following meanings:

(a) “Board” means the governing board of the Valley, Lake, and Delta Conservancy.

(b) “Conservancy” means the Valley, Lake, and Delta Conservancy.

(c) “Delta” means the Sacramento-San Joaquin Delta as described in Section 12220 of the Water Code.

(d) “Lake” means the lands within the County of Lake.

(e) “Local public agency” means a city, county, special district, or joint powers authority.

(f) “Natural lands” has the same meaning as defined in Section 9001.5.

(g) “Nonprofit organization” means a private, nonprofit organization that qualifies for exempt status under Section 501(c)(3) of Title 26 of the United States Code and that has among its principal charitable purposes preservation of land for scientific, recreational, scenic, or open-space opportunities, protection of the natural environment, preservation or enhancement of wildlife, preservation of cultural and historical resources, or efforts to provide for the enjoyment of public lands.

(h) (1) “Other relevant plans” includes all of the following:

(A) Delta Protection Commission’s Land Use and Resource Management Plan.

(B) Delta Protection Commission’s Economic Sustainability Plan for the Sacramento-San Joaquin Delta.

(C) Delta Stewardship Council’s Delta Adapts: Creating a Climate Resilient Future Sacramento-San Joaquin Delta Climate Change Adaptation Plan.

(D) Delta Stewardship Council’s Delta Levees Investment Strategy.

(E) Natural and Working Lands Climate Smart Strategy.

(F) California’s Nature-Based Solutions Climate Targets.

(G) Central Valley Flood Protection Board’s Central Valley Flood Protection Plan.

(H) Any community action plans for legacy communities or relevant local plans.

(2) “Other relevant plans” includes updates and plan transitions for all of the plans listed in paragraph (1).

(i) “Suisun Marsh” means the area defined in Section 29101 and protected by Division 19 (commencing with Section 29000).

(j) “Tribal organization” has the same meaning as defined in Section 33302.

(k) “Valley” means the lands within the Counties of Yolo, Sacramento, Solano, and San Joaquin that are outside of the Delta.

(l) “Working lands” has the same meaning as defined in Section 9001.5.

SEC. 5.

The heading of Chapter 3 (commencing with Section 32320) of Division 22.3 of the Public Resources Code is amended to read:

Chapter 3. Valley, Lake, and Delta Conservancy

SEC. 6.

Section 32320 of the Public Resources Code is amended to read:

32320.

There is in the Natural Resources Agency the Valley, Lake, and Delta Conservancy, which is created as a state agency to work in collaboration and cooperation with local governments and interested parties.

SEC. 7.

Section 32330 of the Public Resources Code is amended to read:

32330.

The board shall consist of 13 voting members and two nonvoting members, appointed or designated as follows:

(a) The 13 voting members of the board shall consist of all of the following:

(1) The Secretary of the Natural Resources Agency, or their designee.

(2) The Director of Finance, or their designee.

(3) One member of the board or a designee who is appointed by the Contra Costa County Board of Supervisors, who is a resident of that county.

(4) One member of the board or a designee who is appointed by the Sacramento County Board of Supervisors, who is a resident of that county.

(5) One member of the board or a designee who is appointed by the San Joaquin County Board of Supervisors, who is a resident of that county.

(6) One member of the board or a designee who is appointed by the Solano County Board of Supervisors, who is a resident of that county.

(7) One member of the board or a designee who is appointed by the Yolo County Board of Supervisors, who is a resident of that county.

(8) One member of the board or a designee who is appointed by the Lake County Board of Supervisors, who is a resident of that county.

(9) One tribal representative appointed by the Governor, subject to confirmation by the Senate.

(10) Two public members appointed by the Governor, subject to confirmation by the Senate.

(11) One public member appointed by the Senate Committee on Rules.

(12) One public member appointed by the Speaker of the Assembly.

(b) The two nonvoting members shall consist of a Member of the Senate, appointed by the Senate Committee on Rules, and a Member of the Assembly, appointed by the Speaker of the Assembly. The members appointed under this subdivision shall meet with the conservancy and participate in its activities to the extent that this participation is not incompatible with their positions as Members of the Legislature. The appointed members shall represent a district that encompasses a portion of the Delta.

(c) Twelve liaison advisers who shall serve in an advisory, nonvoting capacity shall consist of all of the following:

(1) One representative of the United States Fish and Wildlife Service, designated by the United States Secretary of the Interior.

(2) One representative of the United States National Marine Fisheries Service, designated by the United States Secretary of Commerce.

(3) One representative of the United States Bureau of Reclamation, designated by the United States Secretary of the Interior.

(4) One representative of the United States Army Corps of Engineers, designated by the Commanding Officer, United States Army Corps of Engineers, South Pacific Division.

(5) A designee of the San Francisco Bay Conservation and Development Commission for coordination purposes.

(6) A designee of the State Coastal Conservancy for coordination purposes.

(7) A designee of the Sierra Nevada Conservancy for coordination purposes.

(8) A designee of the Suisun Resource Conservation District for coordination purposes.

(9) A designee of the Central Valley Flood Protection Board.

(10) A designee of the Yolo Basin Foundation.

(11) A designee of the Delta Protection Commission.

(12) A designee of the California Central Valley Flood Control Association, who shall be a member of the governing body of a reclamation district located in the primary zone of the Delta.

(d) The public members and tribal representative appointed by the Governor shall serve for a term of four years, with a two-term limit.

(e) The members and alternates locally appointed pursuant to subdivision (a) shall serve at the pleasure of the appointing board of supervisors.

(f) The public members appointed by the Senate Committee on Rules or the Speaker of the Assembly shall serve for a term of four years, with a two-term limit.

(g) The Members of the Senate and Assembly shall serve at the pleasure of the appointing body.

(h) Alternates for members appointed pursuant to paragraphs (3) to (7), inclusive, of subdivision (a) may be appointed by the respective county boards of supervisors.

SEC. 8.

Section 32340 of the Public Resources Code is amended to read:

32340.

The board shall maintain a headquarters office, and may open satellite offices, within the areas under the conservancy’s jurisdiction or the counties that those areas are within, or in the City of Sacramento, in the number and location applicable to the conservancy’s work under the direction of the board to the extent that funding is available. The conservancy may rent or own real and personal property and equipment pursuant to applicable statutes and regulations.

SEC. 9.

Section 32350 of the Public Resources Code is amended to read:

32350.

The board shall hold its regular meetings within the areas under the conservancy’s jurisdiction and shall rotate the location of the meetings among the different counties within those areas.

SEC. 10.

Section 32360 of the Public Resources Code is amended to read:

32360.

(a) Except as specified in Section 32360.5, the jurisdiction and activities of the conservancy are limited to the Valley, Lake, Delta, and Suisun Marsh.

(b) (1) The Delta Conservancy Fund is hereby created in the State Treasury. Moneys in the fund shall be available, upon appropriation by the Legislature, only for the purposes of this division.

(2) Funds provided for ecosystem restoration and enhancement shall be available for ecosystem restoration projects consistent with the conservancy’s strategic plan adopted pursuant to Section 32376, including projects to reduce and reverse land subsidence and associated carbon emissions.

(3) Funds may be allocated to a separate program within the conservancy for economic sustainability in the Delta. The economic sustainability plan adopted pursuant to Section 29759 shall be the basis for the program. Funds provided to the conservancy to implement ecosystem restoration projects pursuant to the Bay Delta Conservation Plan shall only be used for ecosystem restoration purposes.

(4) Funds in the Delta Conservancy Fund shall not be used within the Lake or Valley.

(c) (1) The Valley and Lake Conservancy Fund is hereby created in the State Treasury. Moneys in the fund shall be available, upon appropriation by the Legislature, only for purposes of this division.

(2) Funds provided for ecosystem restoration and enhancement shall be available for ecosystem restoration projects located in the Valley or Lake area consistent with the conservancy’s strategic plan adopted pursuant to Section 32376.

(3) Funds may be allocated to a separate program within the conservancy for economic sustainability in the Valley and Lake.

(d) (1) Funds shall only be allocated for activities in the Valley or Lake if there is an appropriation from the Valley and Lake Conservancy Fund by the Legislature for that purpose. Funds that have already been appropriated to the conservancy for activities in the Delta or the Suisun Marsh shall be used in compliance with the conditions of those appropriations and for activities only in those areas.

(2) The conservancy shall not use resources designated for work in the Delta or Suisun Marsh for activities within the Valley or Lake.

SEC. 11.

Section 32360.5 of the Public Resources Code is amended to read:

32360.5.

In furtherance of the conservancy’s mission and role in implementing the Delta Plan and other relevant plans within the areas under the conservancy’s jurisdiction, the conservancy may take or fund an action outside those areas if the board makes all of the following findings:

(a) The project implements the goals of the conservancy, the Delta Plan, and other relevant plans within the areas under the conservancy’s jurisdiction.

(b) The project is consistent with the requirements of any applicable state and federal permits.

(c) The conservancy has given notice to and reviewed any comments received from affected local jurisdictions, local agencies, and state agencies.

(d) The conservancy has given notice to and reviewed any comments received from any state conservancy where the project is located.

(e) The project will provide significant benefits to the lands within the areas under the conservancy’s jurisdiction.

SEC. 12.

Section 32361 is added to the Public Resources Code, to read:

32361.

The Valley and Lake Program is hereby established, under the administration of the conservancy, to support efforts that advance the environmental protection and the economic well-being of Valley and Lake residents. The program shall support conservancy activities in the Valley and Lake, which may include, but are not limited to, activities to do any of the following:

(a) Protect, enhance, and restore ecosystem function and habitat.

(b) Support on-farm activities that contribute to wildlife habitat and provide multiple conservation benefits.

(c) Protect and preserve Valley agriculture and natural and working lands.

(d) Provide increased opportunities for tourism and recreation in the Valley.

(e) Promote Valley legacy communities and economic vitality.

(f) Advance workforce development.

(g) Increase the resilience of the Valley to the effects of climate change and natural disasters such as sea level rise, floods, droughts, wildfires, and earthquakes.

(h) Protect and improve water quality.

(i) Assist the regional economy.

(j) Identify priority projects and initiatives for which funding is needed.

(k) Protect, conserve, and restore the region’s physical, agricultural, cultural, historical, and living resources.

(l) Assist local entities in the implementation of their habitat conservation plans and natural community conservation plans.

(m) Promote environmental education.

(n) Implement recommendations of the Blue Ribbon Committee for the Rehabilitation of Clear Lake.

SEC. 13.

Section 32362 of the Public Resources Code is amended to read:

32362.

The conservancy may engage in partnerships with nonprofit organizations, tribal organizations, local public agencies, and landowners.

SEC. 14.

Section 32363 of the Public Resources Code is amended to read:

32363.

In implementing this division, the conservancy shall cooperate and consult with the city or county in which a grant is proposed to be expended or an interest in real property is proposed to be acquired, and shall, as necessary or appropriate, coordinate its efforts with other state agencies, in cooperation with the Secretary of the Natural Resources Agency. The conservancy shall, as necessary or appropriate, cooperate and consult with a public water system, levee, flood control, or drainage agency or resource conservation district that owns or operates facilities, including lands appurtenant to those facilities, where a grant is proposed to be expended or an interest in land is proposed to be acquired.

SEC. 15.

Section 32364 of the Public Resources Code is amended to read:

32364.

(a) The conservancy may require a grantee to enter into an agreement with the conservancy on terms and conditions specified by the conservancy.

(b) The conservancy may require a cost-share or local funding requirement for a grant. The conservancy may make that cost-share or local funding requirement contingent upon the total amount of funding available, the fiscal resources of the applicant, or urgency of the project. The conservancy may waive cost-share requirements.

(c) The conservancy may pay grantees at their full federally allocated cost allocation rate or other certified cost allocation rate, when there is no conflict with any applicable laws.

(d) The conservancy may make advance payments of up to 25 percent of the grant award in accordance with policy set by the board to ensure that moneys are used properly and in accordance with grant agreements.

(e) The conservancy may fund or award grants for plans and feasibility studies consistent with its strategic plan, the Delta Plan, or other relevant plans within the areas under the conservancy’s jurisdiction.

(f) The conservancy may seek repayment or reimbursement of funds granted on terms and conditions it deems appropriate. The proceeds of repayment shall be deposited in the fund.

(g) The conservancy may require any funds that exceed the costs of eligible or approved projects or of acquisition to be returned to the conservancy, to be available for expenditure when appropriated by the Legislature.

SEC. 16.

Section 32364.5 of the Public Resources Code is amended to read:

32364.5.

(a) The conservancy may provide grants and loans to state agencies, local public agencies, nonprofit organizations, and tribal organizations to further the goals of the conservancy.

(b) An entity applying for a grant from the conservancy to acquire an interest in real property shall specify all of the following in the grant application:

(1) The intended use of the property.

(2) The manner in which the land will be managed.

(3) How the cost of ongoing operations, maintenance, and management will be provided, including an analysis of the maintaining entity’s financial capacity to support those ongoing costs.

(4) Grantees shall demonstrate, where applicable, how they will provide payments in lieu of taxes, assessments, or charges otherwise due to local government.

SEC. 17.

Section 32376 of the Public Resources Code is amended to read:

32376.

The board shall prepare, adopt, and update as necessary a strategic plan to achieve the goals of the conservancy. The plan shall describe its interaction with local, regional, state, and federal land use, recreation, water and flood management, and habitat conservation and protection efforts within and adjacent to the Delta, Lake, and Valley. The strategic plan shall establish priorities and criteria for projects and programs, based upon an assessment of program requirements, institutional capabilities, and funding needs throughout the Delta, Lake, and Valley. The strategic plan shall be consistent with the Delta Plan, the Delta Protection Commission’s resources management plan, the Suisun Marsh Preservation Act of 1977 (Division 19 (commencing with Section 29000)), the Habitat Management, Preservation and Restoration Plan for the Suisun Marsh, and other relevant plans within the areas under the conservancy’s jurisdiction.

SEC. 18.

If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.