Cal. Water Code § 79534

(a) Funds made available pursuant to paragraph (1), (2), (3), (4), or (5) of subdivision (a) of Section 79530, and not for the purposes of subdivision (b) of that section, shall be administered in accordance with this section. (b) (1) Grants shall be awarded in accordance with subdivision (a) of Section 79530 on a statewide competitive basis. (2) A project that is eligible for funding for the purposes of subdivision (b) of Section 79530 is not eligible for a grant subject to this section. (c) For the purposes of this chapter, “small community” means a municipality with a population of 3,300 persons or fewer, or 1,000 connections or fewer. (d) The State Department of Health Services shall consolidate the application process required to implement the grant program described in this section. (e) In the development of criteria for the grants awarded under this section, the State Department of Health Services shall consult with the Office of Environmental Health Hazard Assessment for the purpose of developing a program that gives priority to projects that pose the most significant health risks, and that will bring water systems into compliance with safe drinking water standards. These include, but are not limited to, projects that address public exposure to contaminants for which safe drinking water standards have been established, including arsenic, disinfection byproducts and uranium. Projects to address emerging contaminants, including perchlorate, chromium 6, and endocrine disrupters shall also be given priority. (f) Grants awarded pursuant to this section may not exceed ten million dollars ($10,000,000) for any one project.