CA SB974

Exempts certain water infrastructure projects from California Environmental Quality Act (CEQA) review requirements if they primarily benefit small disadvantaged community water systems or state small water systems by improving water quality, supply, reliability, or providing drinking water service to existing residences in disadvantaged communities with contaminated or inadequate water supplies.

Qualifies projects include installation, repair, or reconstruction of drinking water wells (up to 250 gallons per minute), treatment facilities (under 2,500 square feet), storage tanks (up to 250,000 gallons), pipelines (less than one mile, or up to seven miles if addressing drinking water violations), and related water system appurtenances.

Requires projects to not affect wetlands or sensitive habitats, fully mitigate construction impacts, avoid hazardous waste sites, and not cause cumulative significant environmental effects; lead agencies must contact the State Water Resources Control Board before granting exemption to determine impact on federal financial assistance eligibility.

Mandates skilled and trained workforce requirements for public agency projects and prevailing wage requirements for private projects, with enforcement through civil penalties ($10,000 per month for non-compliance reports; $200 per day per worker violations).

Repeals the exemption on January 1, 2028; requires lead agencies to file notice of exemption with the Office of Planning and Research and county clerk.