A local water conservation project described in Section 11970 shall not be constructed or implemented pursuant to this article until both of the following occurs:
(a)
The sponsoring contractor signs a written agreement with the department which indicates all of the following:
(1)
The approval of the facility or program by the sponsoring contractor.
(2)
The yield and the period of time during which the water from the local conservation project constitutes project water.
(3)
The disposition of the local conservation project or of the yield from the local conservation project upon the expiration of that period of time.
(b)
All contractors within whose boundaries any portion of the local water conservation project is located, and who are not sponsoring contractors for the local conservation project, approve the local water conservation project in writing.