Governor, Feinstein back bond

In a last-ditch effort to place a water bond on the November ballot, Gov. Arnold Schwarzenegger and Sen. Dianne Feinstein proposed a joint $9.3 billion plan Thursday that they believe addresses environmental and oversight concerns.

Democratic lawmakers and the Republican governor have disagreed on how to structure a water bond for two years, largely due to environmental concerns related to Schwarzenegger's desire for new dams in California.

The governor sees a chance this year to win voter approval for a multibillion-dollar bond in the wake of unusually dry conditions and a drought emergency he declared last month. A two-thirds legislative vote is necessary to place the bond on the November ballot.

"There is an urgent need for comprehensive water reform, and this bipartisan plan is offered as a potential compromise," Schwarzenegger said in a release.

Elements of the new plan are similar to those in previous bond proposals. It provides $1.9 billion to restore the beleaguered Sacramento-San Joaquin Delta, including laying groundwork for a water transfer solution, be it a new canal or a modification to the existing pump system. It also has funding for water recycling, regional water projects and watershed protection.

Schwarzenegger administration officials believe it is more attractive to Democrats because it does not mandate that money spent for water storage – $3 billion total – go exclusively toward dams, allowing some money to be spent on groundwater storage and other less intensive projects.

Past Republican proposals also have included a continuous authorization of water storage money that avoided legislative oversight, an aspect that Democrats opposed. The new plan resurrects a dormant state water panel to approve spending instead.

Senate President Pro Tem Don Perata, D-Oakland, had a tepid response, calling on the governor to first authorize $872 million in unspent water funds and reach agreement on a $15.2 billion budget shortfall before seeking a water bond in the Capitol.

"I am open to doing a water bond," Perata said in a statement. "First, however, the state should spend the bond money voters approved in 2006, and then, we must pass a responsible budget that can pay for the debt service on a new bond."

Perata spokesman Andrew LaMar also said Perata believes the Legislature should have authority over spending on water storage projects, not a state commission. He added that Perata thinks the governor's plan is still set up to give more weight to dam projects than to groundwater storage.

"As far as this being a compromise proposal, we don't really see it that way," LaMar said.

Sierra Club California is concerned the governor's latest plan does not require legislative approval for water storage projects such as dams, said senior advocate Jim Metropulos.

Business groups and the Association of California Water Agencies applauded Schwarzenegger and Feinstein.

"At a glance, this looks pretty good to us, balanced and centrist," said ACWA Executive Director Timothy Quinn.

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