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SB-872 • 2026

Delta Levees and Canal Subsidence Fund.

Delta Levees and Canal Subsidence Fund.

Budget Energy Water
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
McNerney
Last action
2026-04-17
Official status
Set for hearing April 27.
Effective date
Not listed

Plain English Breakdown

The exact details of how funds will be allocated and managed over time are somewhat vague in the official source material.

Delta Levees and Canal Subsidence Fund

This legislation establishes a fund to support improvements in levee systems and water conveyance capacity affected by land subsidence in the Sacramento-San Joaquin Delta region.

What This Bill Does

  • Establishes the Delta Levees and Canal Subsidence Fund within the State Treasury.
  • Allocates $150 million annually from the fund to the Department of Water Resources for capital improvements to restore original design water conveyance capacity impacted by land subsidence.
  • Allocates another $150 million annually from the fund to the Sacramento-San Joaquin Delta Conservancy for projects in the Delta or Suisun Marsh to improve existing levees.
  • Requires the conservancy to prepare an annual spending plan, get public input through at least 45 days of comment and a community meeting, and publish it online before using funds.
  • Requires the Secretary of Natural Resources Agency to report on how the fund money is spent every five years starting from 2032.

Who It Names or Affects

  • The Department of Water Resources
  • Sacramento-San Joaquin Delta Conservancy
  • Residents and businesses in the Sacramento-San Joaquin Delta region

Terms To Know

Land subsidence
When land sinks or settles over time, often due to groundwater depletion.
Water conveyance systems
Infrastructure like canals and pipelines used to move water from one place to another.

Limits and Unknowns

  • The bill requires proportional reduction of allocations if there is insufficient money in the fund.
  • It prohibits use of funds for new Delta conveyance facilities.
  • Details about public comment and community meetings are required but specifics on implementation are unclear.

Bill History

  1. 2026-04-17 California Legislative Information

    Set for hearing April 27.

  2. 2026-04-16 California Legislative Information

    April 20 hearing postponed by committee.

  3. 2026-04-14 California Legislative Information

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR.

  4. 2026-04-14 California Legislative Information

    Set for hearing April 20.

  5. 2026-04-09 California Legislative Information

    Read second time and amended. Re-referred to Com. on APPR.

  6. 2026-04-08 California Legislative Information

    From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (April 7).

  7. 2026-03-26 California Legislative Information

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on N.R. & W.

  8. 2026-03-24 California Legislative Information

    Set for hearing April 7.

  9. 2026-03-19 California Legislative Information

    Read second time and amended. Re-referred to Com. on N.R. & W.

  10. 2026-03-18 California Legislative Information

    From committee: Do pass as amended and re-refer to Com. on N.R. & W. (Ayes 5. Noes 0. Page 3600.) (March 18).

  11. 2026-03-03 California Legislative Information

    Set for hearing March 18.

  12. 2026-02-26 California Legislative Information

    Re-referred to Coms. on E.Q. and N.R. & W.

  13. 2026-02-18 California Legislative Information

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.

  14. 2026-02-11 California Legislative Information

    Referred to Com. on RLS.

  15. 2026-01-07 California Legislative Information

    From printer. May be acted upon on or after February 6.

  16. 2026-01-06 California Legislative Information

    Introduced. Read first time. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 872, as amended, McNerney.
Delta Levees and Canal Subsidence Fund.
Existing law, the Sacramento-San Joaquin Delta Reform Act of 2009, declares that the Sacramento-San Joaquin Delta (Delta) is a critically important natural resource for California and the nation and it serves as both the hub of the California water system and the most valuable estuary and wetland ecosystem on the west coast of North and South America. Existing law establishes in the Natural Resources Agency the Department of Water Resources. Existing law requires the department and the Department of Fish and Wildlife to determine the principal options for the Delta and requires the department to evaluate and comparatively rate each option for its ability to do specified things, including, among others, to maintain Delta water quality for Delta users, and to preserve, protect, and improve Delta levees. 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.
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, through the 2046–47 fiscal year, subject to funding availability, as follows: (1) in the amount of $150,000,000, annually, to the Department of Water Resources for the purposes of supporting capital improvements to restore the original design water conveyance capacity for state water conveyance
systems
systems, as defined,
impacted operationally by land subsidence, and (2) in the amount of $150,000,000, annually, to the conservancy for projects in the Delta
or Suisun Marsh
to improve existing levees, as specified. The bill would authorize the conservancy to impose additional requirements on projects to meet the conditions of the funding source, as provided. The bill would require the secretary to proportionally reduce the above-described amounts if there is insufficient moneys in the fund, 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 require the conservancy, before expending funds for any project in the Delta or Suisun Marsh, as described above, to prepare an annual spending plan, require the governing board of the conservancy to approve the spending plan, and require the spending plan to detail the projects the conservancy intends to fund in that fiscal year. The bill would also require the conservancy to publish the spending plan on its internet website, allow at least 45 days for public comment on the spending plan, and hold at least one community meeting on the spending plan before it is approved by the governing board.

Current Bill Text

Read the full stored bill text
Download Bill PDF