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 Bill Text - SB-872 Delta Levees and Canal Subsidence Fund.

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 |Add To My Favorites |Track Bill | Version: 07/02/26 - Amended Assembly
 05/14/26 - Amended Senate
 04/14/26 - Amended Senate
 04/09/26 - Amended Senate
 03/26/26 - Amended Senate
 03/19/26 - Amended Senate
 02/18/26 - Amended Senate
 01/06/26 - Introduced

 SB-872 Delta Levees and Canal Subsidence Fund.(2025-2026)

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 Date Published: 07/02/2026 09:00 PM

SB872:v92#DOCUMENTBill Start

 Amended
 IN 
 Assembly
 July 02, 2026

 Amended
 IN 
 Senate
 May 14, 2026

 Amended
 IN 
 Senate
 April 14, 2026

 Amended
 IN 
 Senate
 April 09, 2026

 Amended
 IN 
 Senate
 March 26, 2026

 Amended
 IN 
 Senate
 March 19, 2026

 Amended
 IN 
 Senate
 February 18, 2026

 CALIFORNIA LEGISLATURE—
 2025–2026 REGULAR SESSION

 Senate Bill

No. 872

Introduced by Senator McNerney
(Principal coauthor: Assembly Member Ransom)
(Coauthors: Senators Archuleta, Cabaldon, Cortese, Grayson, Hurtado, Ochoa Bogh, Richardson, Stern, and Umberg)
(Coauthors: Assembly Members Carrillo, Harabedian, Macedo, Blanca Rubio, and Wallis)

January 06, 2026

An act to amend Section 12986 of, and to add Part 10 (commencing with Section 12996) to Division 6 of of, the Water Code, relating to water, and making an appropriation therefor.

LEGISLATIVE COUNSEL'S DIGEST

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. Resources (department). 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. 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 of Water Resources department for the purposes of supporting capital improvements