July 10, 2008

Schwarzenegger and Feinstein introduce new water bond

After water bond talks with Senate Democrats failed last year, Gov. Arnold Schwarzenegger proposed a new $9.3 billion water bond Thursday with U.S. Sen. Dianne Feinstein that still could lead to new dams and a Delta canal but provides additional funding for conservation and water recycling projects.

The new plan does not have a legislative author and the governor has not struck a deal with lawmakers. Schwarzenegger and Feinstein sent the proposal this afternoon to the four legislative leaders in hopes of brokering a deal that could put a water bond on the November ballot.

Feinstein joined forces with Schwarzenegger earlier this year to pursue a water bond in California. The Republican governor had hoped enlisting one of the state's leading Democrats would lead to a deal, but Democratic lawmakers have raised environmental concerns since last year about the environmental impacts of dams and other projects.

"There is an urgent need for comprehensive water reform, and this bipartisan plan is offered as a potential compromise that puts us on the path toward restoring the Sacramento-San Joaquin Delta, expanding water supplies and promoting conversation efforts that will ensure a clean, reliable water supply for California," Schwarzenegger said in a statement provided by his office. "I know that legislative leaders recognize the urgent need to address California's water crisis, and I look forward to working with them to present a plan to voters this November."

The $9.3 billion bond breaks down as follows:

• $3 billion for new water storage, including dams and groundwater projects. The state would provide up to half of funding for these projects, with water suppliers paying for the rest.

• $1.9 billion for Delta sustainability. This includes money for a potential canal to transfer money around the environmentally sensitive Delta, as well as funds to improve water quality and levees.

UPDATE (3:50 p.m.): Department of Water Resources Director Lester Snow emphasized in a briefing that the money does not pay for construction for a canal but rather for Delta projects that lay the groundwork for any water transfer system, be it a canal or some modification of the existing conveyance method.

• $2 billion for water supply reliability projects around the state that could be used to boost efficiency and for groundwater and surface storage.

• $1.3 billion for improvements along the Klamath River and other waterways, invasive species removal and other restoration projects.

• $800 million to reduce groundwater contamination and improve water quality.

• $250 million for water recycling.

Posted by Kevin Yamamura on July 10, 2008 2:19 PM