Cal. Health & Safety Code § 116760.42

(a) The department may enter into an agreement with the federal government for federal contributions to the fund only if both of the following apply: (1) The state has obtained or appropriated any required state matching funds. (2) The department is prepared to commit to expenditure of any minimum amount in the fund in the manner required by the federal act.

(b) Any agreement between the department and the federal government shall contain those provisions, terms, and conditions required by the federal act, and any implementing federal rules, regulations, guidelines, and policies, including, but not limited to, agreement to the following: (1) Moneys in the fund shall be expended in an expeditious and timely manner. (2) All moneys in the fund as a result of federal capitalization grants shall be expended to ensure sufficient progress is being made toward compliance with the enforceable deadlines, goals, and requirements of the federal act, including any applicable compliance deadlines. (3) Federal funds deposited in the special accounts are continuously appropriated for use by the department as allowed by federal law. Any unexpended funds in the special accounts shall be carried over into subsequent years for use by the department.