(a) The sum of four hundred thirty-five million dollars ($435,000,000) shall be available for appropriation by the Legislature from the fund to the State Department of Health Services for grants and loans for infrastructure improvements and related actions to meet safe drinking water standards including, but not limited to, the following types of projects:
(1) Grants to small community drinking water systems to upgrade monitoring, treatment, or distribution infrastructure.
(2) Grants to finance development and demonstration of new technologies and related facilities for water contaminant removal and treatment.
(3) Grants for community water quality monitoring facilities and equipment.
(4) Grants for drinking water source protection.
(5) Grants for treatment facilities necessary to meet disinfectant by-product safe drinking water standards.
(6) Loans pursuant to the Safe Drinking Water State Revolving Fund Law of 1997 (Chapter 4.5 (commencing with Section 116760) of Part 12 of Division 104 of the Health and Safety Code).
(b) Not less than 60 percent of the money appropriated pursuant to this section shall be available for grants to Southern California water agencies to assist in meeting the states commitment to reduce Colorado River water use to 4.4 million acre feet per year.