HIGHLIGHTS OF THE PLAN

Authorizes an $11.14 billion bond measure to pay for dams, underground water banking, water recycling, Delta restoration and dozens of regional projects.

The California Legislature's water package calls for an election, probably in November 2010, on an $11 billion water bond requiring majority approval by the state's voters.

Regarding the peripheral canal, the plan would:

Provide assurances about a proposed Delta water diversion canal. It would prevent the Department of Water Resources from starting construction until the Water Resources Control Board approves a diversion permit for the project.

That diversion permit must specify 'flow criteria' that set new stream-flow requirements to improve Delta habitat.

Water contractors must sign contracts to pay for the canal project and to offset property tax losses to Delta counties.

The canal, as proposed by the Bay Delta Conservation Plan, must help endangered species recover, as required by the Natural Communities Conservation Plan, a higher standard than species protection, called for by current federal rules. Without this enhanced standard, state funding can't flow.

The plan would also:

Create new Delta Stewardship Council, which must prepare a comprehensive, long-term "Delta Plan" by Jan. 1, 2012. The council can require state agencies to follow the Delta Plan.

Reform the existing Delta Protection Commission so that it expands Delta recreation; promotes agriculture; seeks federal status for the Delta as a "place of special significance"; and promotes emergency preparedness, appropriate land use and strategic levee investments.

Create Sacramento-San Joaquin Delta Conservancy, which will receive funds and make grants for habitat restoration activities from a pool of $2 billion set aside for Delta sustainability, restoration and conservation projects. This can include flood protection projects and ecosystem restoration associated with Bay Delta Conservation Plan. However, no bond money may be used for canal planning, construction, operation, maintenance.

In Sacramento and Northern California, the water package would:

Affirm existing legal protections for upstream water diversions; also affirm state law allowing those diversions to be modified.

Provide $400 million for "drought relief" that may pay cities for water that's instead used to improve Delta flows; $250 million for a Klamath River dam removal project (plus up to $20 million to offset Siskiyou County economic impacts); $60 million for salmon migration projects in Sacramento River watershed; and $50 million in matching grants to improve upstream wastewater treatment.

Elsewhere in California, the water package would:

Create a comprehensive strategy to stabilize statewide water deliveries by improving management of Delta resources.

Increase statewide debt load, though half of the bonds can't be sold until after 2015 to minimize negative impacts.

Require 20 percent water conservation statewide by 2020; provide several paths to local water agencies for achieving this; agencies that fail will not be eligible for state water grants.

Call for Department of Water Resources to coordinate water supply and flood protection between state and federal projects.

Provide $1.9 billion for re- gional water management; $1.5 billion for watershed protection projects; $500 million for groundwater protection proj- ects; $500 million for water recycling and conservation for urban and agricultural users.

Require statewide monitoring of groundwater supplies, starting Jan. 1, 2012.

Add 25 employees to State Water Resources Control Board, to police illegal water diversions.

For water exporters, the package would:

Set "Two Gates" as $28 million, "early action" project by Delta Stewardship Council. The project would build two movable gates on central Delta channels, regulating flows to stabilize water exports.

Require the Delta Stewardship Council to "promote a more reliable water supply" as part of the Delta Plan.

Provide a path to construction of a Delta water diversion canal, even though it gives limited oversight to Delta Stewardship Council.

Allocate $3 billion for potential new dams, but only the "public benefit" portion of those projects, such as ecosystem flows, flood control, rec-reation.

Assure public funding – if voters approve the bond – of habitat restoration in the Delta, which may help stabilize water deliveries.

To read more about Delta issues, visit www.sacbee.com/delta