September 4, 2009

Huge state water-supply repair bill looms
Legislators will meet today to discuss costs

By Michael Gardner
U-T Sacramento Bureau

SACRAMENTO - State lawmakers plan to wade into a politicallytreacherous thicket today, exploring how to pay the looming repairbills to fix California's crumbling water supply network.

Each route comes with its own set of obstacles and opportunities,particularly any proposal to levy monthly surcharges on household,business and agricultural water bills.

Lawmakers also are shaping a bond package that could push an already broke state deeper into debt.

Pocketbooks aside, lawmakers also are being asked to compromisephilosophical divisions, including building dams and a newnorth-to-south delivery canal.

Concrete isn't the only contention. Lawmakers also are studyingwhether to install a new agency with sweeping oversight authority overprojects in the Sacramento-San Joaquin Delta, hub of California's watersupply and the front lines in the fight over providing more water forendangered fish.

It's a daunting challenge for the 14-member, two-house conferencecommittee, which by Tuesday is required to send to the full Legislaturea map for solving the state's water crisis.

Today may mark a turning point as the panel tackles variousfinancing schemes to pay for restoring the economically andenvironmentally vital Delta, along with building reservoirs andinjecting money into local conservation and supply projects.

Several bond packages are under consideration, each in the $10billion range. But given the state's fiscal crisis, key members arenegotiating lowering the amounts and staggering the borrowing over alonger period of time to make debt payments more manageable.

More important, lawmakers are being pressed to emphasize theuser-pay approach by levying broad fees to pay for some projects orretire bond debt.

Some business and labor interests are shopping a proposal to taghomeowners up to $2 monthly, businesses as much as $30 extra peracre-foot and agriculture up to $4 an acre-foot for irrigation water.

Gov. Arnold Schwarzenegger, who has steadfastly resisted new taxes,is not rejecting outright any surcharge, although numbers of that sizemay put off the administration. Even some Republicans are open as longas there are assurances how the money is spent.

Schwarzenegger in 2006 proposed levying monthly water-billsurcharges of $3 to $10. However, the proposal failed to overcome stiffresistance.

In Southern California, the giant Metropolitan Water Districthesitates to endorse additional fees. The wholesaler expects to paymost of the costs of building a new north-to-south delivery canal - itstop priority.

Metropolitan would have to raise wholesale rates by 10 percent tofinance the estimated $3 billion to $7 billion cost of a new deliverysystem out of the Delta. New fees imposed by the Legislature would beon top of that, warned Jeff Kightlinger, its general manager.

San Diego County users would pay more because Metropolitan supplies much of the water to the region.

A new obstacle has emerged this year after most of the perennialbattles have been fought over more dams and a canal. Democrats arepushing a costly package to restore the Sacramento Delta, from buyingland to protect the environment to rebuilding weak levees that giveflood protection. They also want a new commission with broad powers.

"The science is indisputable," said Senate President Pro TemporeDarrell Steinberg, D-Sacramento. "It shows the Delta is dying frompollution and neglect. Water is being rationed, jobs are being lost andthe fish are becoming extinct."

But Republicans, and many interests in the Delta, remain wary. "They've over-reached," said Sen. Dave Cogdill R-Modesto.

Republican lawmakers are steadfast in demanding that up to $3.5 billion be set aside for new dams before casting yes votes.

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Michael Gardner: (916) 445-2934;

Related Terms: Arnold Schwarzenegger, Democratic Party, Republican Party, San Diego County