Dianne Feinstein, the senior U.S. senator from California, is responding to the Jan. 8 Viewpoints article "Water barons will corner market in new 'Chinatown,' " which stated, "A one-sentence provision inserted in the 2012 budget bill by U.S. Sen. Dianne Feinstein will allow a handful of powerful San Joaquin Valley water oligarchs to sell federally subsidized agricultural water in a private market for as much as 150 times more than what they pay for it."

A recent Viewpoints article misrepresents an important federal provision to allow Central Valley irrigation districts to transfer water.

The author describes water transfers as ominous, when in fact they are a vital and commonly used tool to stabilize California's water supply by permitting water districts with excess water to sell water to districts without enough.

Because California can't store enough water during wet years to compensate for dry years, transferring water is a critical tool to help provide farmers, businesses and residential areas with a dependable water supply.

The author suggests this provision allows water managers to bypass federal review; that is wrong. Transfers undergo rigorous environmental review and must be approved by the Bureau of Reclamation. The process is very public, and it's not new – temporary authority permitting transfers expired at the end of 2011, and there were no reports of problems under that program.

The author says taxpayer investments are uncompensated and that the provision will result in gratuitous profits. Both claims are wrong. Any federal costs of moving water are fully reimbursed; every district is contractually obligated to pay into the costs of the Central Valley Project. And there have been no reports of profiteering from farm-to-farm transfers covered by this authority.

The author uses misleading terms such as "privatization" and "deregulation." Neither is accurate. Basic water allocation is still based largely on public and environmental priorities, water sales in no way convert to private water rights and heavy regulation of the system will remain in place.

Finally, the author refers to the provision as a "rider," suggesting it was added without examination. That is incorrect. The plan was proposed in 2009, was the focus of a hearing with public testimony and the final language was a result of prolonged negotiations among interested parties.

This provision provides California's water managers with another tool to help deliver a reliable water supply while protecting the environment. This is good for California, and I'm proud to have championed the effort.

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Dianne Feinstein, the senior U.S. senator from California, is responding to the Jan. 8 Viewpoints article "Water barons will corner market in new 'Chinatown,' " which stated, "A one-sentence provision inserted in the 2012 budget bill by U.S. Sen. Dianne Feinstein will allow a handful of powerful San Joaquin Valley water oligarchs to sell federally subsidized agricultural water in a private market for as much as 150 times more than what they pay for it."

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