Gov. Arnold Schwarzenegger and lawmakers failed to reach final agreement on ways to solve the state's water problems Sunday, but the governor nevertheless released scores of bills after concluding some progress had been made.

Schwarzenegger's action reversed a threat last week in which he vowed to kill "a lot" of the 704 bills on his desk unless he and legislators reached an agreement.

The governor said progress in closed-door talks was enough so that he is calling a special session on water, and discussions could continue. It was not announced when the session will start.

"While we still have a few remaining issues to work out, I commend the legislative leaders for their focus and commitment to solving this crisis, and I will weigh all the bills on their merits," he said in a statement Sunday evening.

For the past six days, Schwarzenegger and legislative leaders have met privately in tense talks aimed at solving decades of conservation, supply, environmental and other water-related problems.

Lawmakers released no details on their progress, although Assembly Republican Leader Sam Blakeslee, R-San Luis Obispo, said "there's evidence we're now moving in the right direction, which gives me cause for hope."

Senate President Pro Tem Darrell Steinberg, D-Sacramento, said he expects leaders to prepare bills for public hearings this week.

Schwarzenegger faced a midnight deadline for signing the mountain of bills passed by the Legislature recently on issues ranging from education to health care to criminal justice.

Although no final deal was in sight, the governor began releasing bills late Sunday afternoon.

Steinberg issued a statement criticizing the governor's veto of Senate Bill 14, a hotly contested bill to require all electric utilities to generate one-third of their power from renewable sources by 2020.

Schwarzenegger, objecting to details of the bill, signed an executive order last month to assign the California State Air Resources Board - rather than legislators - the task of charting how utilities reach the 33 percent goal.

Opponents note that future governors could rescind such an executive order.

"I hope the governor keeps an open mind in future discussions about an enforceable state law, because California has an opportunity to lead the nation on this very important issue," Steinberg said in a written statement.

Schwarzenegger's actions Sunday will create dozens of new state laws, most of them taking effect Jan. 1.

Among the bills Schwarzenegger signed:

• Assembly Bill 962, by Assemblyman Kevin de Leon, D-Los Angeles, requires beginning in February 2011 that handgun ammunition vendors obtain thumbprint and other information from purchasers. Schwarzenegger said he has vetoed similar legislation previously but that local governments have proved that such information improves public safety.

• Assembly Bill 260, by Assemblyman Ted Lieu, D-Torrance, hopes to reduce mortgage fraud by banning subprime "negative amortization" loans, limiting fees to mortgage brokers for originating subprime loans, and restricting the size of pre-payment penalties for borrowers who pay off loans early.

• Senate Bill 572, by Sen. Mark Leno, D-San Francisco, would declare May 22 as Harvey Milk Day in California. Schools and government offices would remain open, the day would not be a holiday, but schools would be encouraged to conduct commemorative exercises to remember the life of the former San Francisco county supervisor and gay-rights pioneer.

• Senate Bill 54, also by Leno, requires California to recognize marriages performed in other states where same sex marriage is legal.

• Assembly Bill 1383, by Assemblyman Dave Jones, D-Sacramento, imposes a hospital fee intended to be used for attracting several billion in federal funds for California's hospitals. Schwarzenegger, in a signing message, noted that separate legislation is needed to appropriate money for implementing the bill.

• Assembly Bill 119, also by Jones, prohibits health insurers from charging differing premiums to men than to women.

Call Jim Sanders, Bee Capitol Bureau, (916) 326-5538. Dan Smith and Susan Ferriss of The Bee Capitol Bureau contributed to this report.