BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: Title
Approve Recommended 2026 Legislative Policy Proposals and Guiding Principles.
End
RECOMMENDATION: Recommendation
Approve recommended 2026 Legislative Policy Proposals and Guiding Principles for the second year of the two-year session in both the California State Legislature and the 119th Congress; and for local and regional legislative efforts.
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SUMMARY:
The Santa Clara Valley Water District (Valley Water) Board of Directors reviews and adopts legislative policy proposals and legislative guiding principles on an annual basis that form the framework for advocacy efforts at the local, regional, state, and federal levels. Based on these Board-adopted policy proposals and guiding principles, the Office of Government Relations (OGR) develops strategies to achieve the outcomes outlined in the proposals. These strategies may include advancing Valley Water’s interests through legislative, administrative, or regulatory means. OGR uses the guiding principles as the foundation that drives Valley Water’s efforts in influencing the outcome of numerous legislative and budgetary items that affect Valley Water or its interests.
Process for Development of Legislative Proposals and Priorities and Guiding Principles
OGR solicited legislative proposals and guiding principles from Valley Water staff, executive management, and the Board of Directors through a robust interview process conducted between July and August 2025. OGR reviewed the submissions and conducted a prioritization planning session on September 16, 2025, with the executive management team and staff who submitted proposals, to review and make recommendations on the submitted proposals as well as the existing proposals and principles. The recommendations are now presented to the Board of Directors for final review and approval.
The recommendations are included in the summary below and in detail in Attachment 1.
2026 LEGISLATIVE PROPOSALS AND PRIORITIES
Of the ideas received, staff recommends focusing on securing funding and adopting a new legislative guiding principle. Staff also recommends deleting one policy narrative from 2025, re-adopting 10 policy narratives into 2026, and making minor modifications either for clarity or to reflect legislative developments.
2026 LEGISLATIVE PROPOSALS
At the state level, there are no sponsored bill proposals; however, staff continues to work aggressively with many of our industry coalition partners and associations to advance Valley Water priorities. Staff is proposing to focus on the appropriation of Proposition 4 climate resilience grant funding and direct appropriations to supplement Valley Water project funding needs. (These proposals are described on page 7 of Attachment 1.)
1. Proposition 4 - State Budget Appropriation Advocacy (State)
Staff recommends that, in lieu of a sponsored bill for 2026, Valley Water continues focused efforts on the numerous grant program appropriations to be considered in the 2026-2027 State Budget due to the voters’ approval of Proposition 4, the climate resilience bond. The timing and the amount of these appropriations impact which Valley Water projects may be eligible for funding. Now that these funding opportunities have been created, Valley Water must aggressively pursue every possible dollar to best serve the people of Santa Clara County.
• There will be numerous funding appropriations for programs that were approved as part of Proposition 4 at Valley Water’s urging. These include $480 million for Dam Safety, $386.25 million for Recycled Water, $150 million for State Flood Control Subventions, $75 million for the Water Storage Investment Program, $765 million for sea level rise and coastal flood protection, and numerous other programs.
• New grant programs not already established in state government, such as the new Potable Reuse grant program established through Valley Water’s advocacy, require state agencies to develop new guidelines. Staff will engage in advocacy to favorably shape guidelines to increase eligibility for Valley Water projects.
• Government Relations staff will assist the Grants Management Unit and project managers in developing compelling applications demonstrating that Valley Water projects will deliver on the voters’ climate resilience goals as expressed in Proposition 4.
2. Direct Appropriations for Valley Water Projects (State)
In addition to focusing on the Proposition 4 grant process, staff recommends pursuing direct appropriations through the state budget process. Direct appropriations can provide needed supplemental funding for projects, even in small amounts.
• In consultation with Valley Water project teams and the grants unit, staff will identify and develop a direct appropriation request or requests to secure state funding for Valley Water projects. After determining that the timing and potential funding amounts align with project needs, staff will meet with members of the Santa Clara County state legislative delegation who have the projects in their districts to seek their sponsorship.
• Given the precarious nature of the State budget, pursuing direct appropriations will be a challenge.
There are 10 existing policy narratives recommended for re-adoption, and staff proposes several modifications to reflect legislative developments.
1. Model Water Efficient New Development Ordinance (Local) - See Page 6 of Attachment 1 for existing proposal and recommended modifications.
2. Proposition 4 Climate Resilience Bond Appropriations (State) - See Page 7 of Attachment 1 for existing proposal and recommended modifications.
3. Extended Delays in Issuing Permits: Agencies Have Not Been Able to Issue Permits in a Timely Fashion Due to Understaffing and Other Staffing Issues (State/Federal) - See Pages 8 and 10-11 of Attachment 1.
4. Better Coordination of Mitigation Requirements Among Regulatory Agencies is Needed (State/Federal) - See Pages 8 and 11 of Attachment 1.
5. Create a Balanced Approach to Watershed-Based Regulatory Permitting and Financing for Public Agencies (State/Federal) - See Pages 8-9 and 11 of Attachment 1 for the existing proposal and recommended minor modification.
6. Water Infrastructure Finance and Innovation Act Program Improvements (Federal) - See Page 9 of Attachment 1.
7. Build America, Buy America Act Waivers (Federal) - See Page 9-10 of Attachment 1.
8. Dam Rehabilitation and Repair Legislation (Federal) - See Page 10 of Attachment 1.
9. U.S. Army Corps of Engineers Levee Vegetation Policy (Federal) - See Page 12 of Attachment 1.
10. U.S. Army Corps of Engineers Section 104/221 Authority (Federal) - See Page 12 of Attachment 1.
There is one 2025 policy narrative recommended for deletion.
Streamline the Water Rights Change Petition Process for Valley Water Projects (State) - See Page 8 of Attachment 1.
2026 LEGISLATIVE GUIDING PRINCIPLES
There is one new guiding principle recommended.
Support local, state, and federal legislation and funding that strengthens wildfire suppression efforts. (See Page 4 in Attachment 1 for the redline addition.)
There is one 2025 guiding principle recommended for deletion.
Support mandatory COVID-19 vaccination for government employees to ensure continuity of essential services. (See Page 4 in Attachment 1 for the redline deletion.)
There is one modification recommended to the 2025 guiding principles.
Staff recommends one minor modification to the guiding principles for clarity. (See Page 2 of Attachment 1 for the redline changes.)
There are 85 guiding principles recommended to carry forward into 2026, which are listed in Attachment 1 beginning on Page 2.
ENVIRONMENTAL JUSTICE IMPACT:
There are no Environmental Justice impacts associated with this item.
FINANCIAL IMPACT:
There is no financial impact associated with this item.
CEQA:
The recommended action does not constitute a project under CEQA because it does not have the potential for resulting in direct or reasonably foreseeable indirect physical change in the environment.
ATTACHMENTS:
Attachment 1: 2026 Policy Proposals and Guiding Principles
Attachment 2: PowerPoint
UNCLASSIFIED MANAGER: Manager
Marta Lugo, 408-630-2237