Cal. Water Code § 12929.41

(a) Programs and projects pursuant to this chapter may be undertaken by means of any of the following:
1. (1) Direct expenditure by the department.
2. (2) Loans to public and private agencies.
3. (3) Grants to public agencies.
4. (4) Any combination of paragraphs (1), (2), and (3).
(b) All grants shall be matched by at least an equal amount from the applicant public agency.