(a) A qualifying state agency that funds a project to restore fish and wildlife habitats shall indemnify and hold harmless a real property owner who voluntarily allows their real property to be used for the project from civil liability for property damage or personal injury resulting from the project if all of the following requirements are met:

1. (1) The project is authorized pursuant to Section 1602, 1652, or 1653.
2. (2) The project has received all approvals required under Part 1 (commencing with Section 6000) of Division 3 of the Water Code or Division 7 (commencing with Section 13000) of the Water Code.
3. (3) The liability arises from the construction, design specifications, surveying, planning, supervision, testing, or observation of construction related to the project.
4. (4) The real property owner does not perform, or retain any person or entity to perform, any construction, design specifications, surveying, planning, supervising, testing, or observation of construction related to the project.
5. (5) The project qualifies for an exemption from Division 13 (commencing with Section 21000) of the Public Resources Code as a small habitat restoration project under guidelines adopted by the Secretary of the Natural Resources Agency pursuant to Section 21084 of the Public Resources Code.

(e)

1. (1) The costs of any civil liability incurred by a qualifying state agency pursuant to subdivision (a) or (b) shall be processed without delay and paid from the General Fund, and those costs shall be submitted as a claim against the qualifying state agency by the real property owner pursuant to Section 905.2 of the Government Code.
2. (2) The costs incurred by a qualifying state agency in investigating, settling, or defending against any claim pursuant to subdivision (a) or (b) shall be paid from the General Fund, in accordance with Section 965 of the Government Code.