California Code, Water Code - WAT § 12986

(1) Costs incurred shall not be reimbursed if the entire cost incurred per mile of project or nonproject levee is either of the following:

(2) Not more than 75 percent of any costs incurred in excess of the amount per mile of project or nonproject levee specified in paragraph (1) shall be reimbursed.

(3) In addition to project plans approved by the board, the department shall require the local agency to provide information to the department that may include, but is not limited to, a detailed engineer's report prepared pursuant to subdivision (b) of Section 4 of Article XIII D of the California Constitution, audited financial statements, or an assessment commissioners' report.  The information provided to the department shall be the basis for determining the maximum allowable reimbursement eligible under this part.  Nothing in this paragraph shall be interpreted to increase the maximum reimbursement allowed under paragraph (2).

(4) Reimbursements made to the local agency in excess of the maximum allowable reimbursement shall be returned to the department.

(5) All final costs allocated or reimbursed under a plan shall be approved by the Central Valley Flood Protection Board for project and nonproject levee work.

(6) Costs incurred pursuant to this part that are eligible for reimbursement include construction costs and associated engineering services, financial or economic analyses, environmental costs, mitigation costs, and habitat improvement costs.

(1) “Rural area” means an area that is not an urban area.

(2) “Urban area” means an area in which 10 percent or more of the land area within the project area is used for residential use.