California water problems may by drained by bonds
by Kate Campbell

SACRAMENTO
March 18, 2009 12:02am

A stack of bonds aimed at fixing California's over-taxed water storage and delivery system is under consideration by state lawmakers.

No fewer than five bond proposals aimed at addressing water infrastructure needs have been introduced, with price tags ranging from about $10 billion to $15 billion. One or more of the new bond proposals could be placed before voters at a future statewide election.

The state’s largest farm lobby, the California Farm Bureau Federation, is studying the proposals to assure that water bond proposals include "a real increase in surface water storage; continuous appropriation of funding for projects; restoration of the delta ecosystem that considers issues facing delta agriculture; protection of water rights, particularly for water rights in areas of origin; and improved conveyance," says Danny Merkley, the Farm Bureau’s director of water resources.

"Our concern is that any additional bonds be used to finance a well-conceived, comprehensive water strategy for the state," he says, "that does not lead to unintended consequences that harm California's ability to grow its own, healthful food and farm products."

Mr. Merkley says he currently is reviewing more than 50 water-related pieces of legislation, including the five bond plans that would address water infrastructure improvement and supply reliability. All five of those bills have similarities to last year's water bond proposal backed by Gov. Schwarzenegger and Sen. Dianne Feinstein, D-Calif.

The five bond proposals — four introduced in the Senate and one in the Assembly — include:

• Senate Bill 301 (Florez, D-Shafter) would authorize the issuance of $15 billion in general obligation bonds to address infrastructure needs

• SB 371 (Cogdill, R-Modesto) would authorize the issuance of $9.98 billion in general obligation bonds to finance infrastructure and storage needs

• SB 456 (Wolk, D-Davis) would authorize the issuance of $9.805 billion in general obligation bonds to finance water supply reliability and water source protection programs.

• SB 735 (Steinberg, D-Sacramento) would authorize the issuance of $9.785 billion in general obligation bonds to finance water supply reliability and water source protection programs, while imposing new fees on residential, commercial, industrial and agricultural water users to finance the debt service on the bonds.

• Assembly Bill 1187 (Huffman, D-Marin, and Caballero, D-Salinas) would authorize the issuance of $10.035 billion in general obligation bonds to finance water supply reliability and water source protection programs, while imposing new fees on water users.

But Mr. Merkley says there's another bill in play that bears close attention. SB 12 (Simitian, D-Palo Alto) would establish the Delta Ecosystem and Water Council. The council would be required to prepare and adopt a plan referred to as the California Delta Ecosystem and Water Plan to restore the Sacramento-San Joaquin Delta ecosystem, create a more reliable water supply in California and maintain the economic and social viability of delta farms and communities.

"In layman's terms, the bill addresses the mechanics of funding implementation for a water bond proposal," Mr. Merkley explains, "meaning the bill will address implementation of a governance structure for restoring and managing the Delta, along with conveyance improvement and construction of new storage facilities. It also will include a conservation and finance plan."

There's a lot to be worked out before any money can be spent on infrastructure improvements, Mr. Merkley says, "including the interests of farmers and ranchers, the environment and urban water users, plus the long-term issues both north and south of the delta and within the delta itself.

"These working groups are highly diverse and early discussions have been very challenging, but they're extremely important for the future of the state's water supply and its economy," says Mr. Merkley.

He says California is in the midst of "a very serious water situation. Some farmers in the San Joaquin Valley are facing the very real possibility of a zero water allocation. It doesn't get any worse than that.”

The level of water deliveries south of the delta is highly in question and many Southern California communities are looking at reduced supplies and the possibility of water rationing.

(About the writer: Kate Campbell is assistant editor of AgAlert, a publication of the California Farm Bureau Federation, where this article originally appeared. It is used here with permission of the copyright holder.)