August 24, 2009

Water system on state agenda
Businesses, agencies want better delivery

By Michael Gardner
U-T Sacramento Bureau

SACRAMENTO – Prowling thehalls of the Capitol, San Diego business leaders cornered lawmakers andranking aides to the governor to press their case.

But it wasn't taxes or regulations on their agenda lastweek. It was an issue carrying equally important consequences for thehealth of business in the San Diego region: water.

"Companies making major economic decisions are actuallyweighing water supply," said Andrew Poat, a vice president of the SanDiego Regional Economic Development Corp.

Those business executives and local water managers planto become familiar faces in the Capitol over the next few weeks, aseize-the-moment strategy after Gov. Arnold Schwarzenegger andlegislative leaders added fixing the state's water system to theirto-do list before recessing Sept. 11.

The challenge will be closing sharp divisions over thefuture of California's water supply, including building dams and a40-mile delivery canal through or around the Sacramento-San JoaquinDelta.

"We are now on a time clock," said Maureen Stapleton,general manager of the San Diego County Water Authority. "The crisiswill only get worse."

The crisis centers in the delta, an economically andenvironmentally valuable estuary under pressure from water shortages,growth and pollution. The maze of waterways, farmland and subdivisionsis roughly the size of Rhode Island.

Despite its distance, the delta is a vital conduit forthe San Diego region. More than a third of the water reaching homes andbusinesses from Chula Vista to Fallbrook flows through the delta.

That's why San Diego water agencies, with the backing ofmuch of the business community, have put a new north-to-south waterdelivery system at the top of their priority list.

Supporting the cause in Sacramento last week were DebraReed, president and CEO of San Diego Gas & Electric and SouthernCalifornia Gas; Doug Hutcheson, president and CEO of Leap Wireless; andMike Neal, president and CEO of H.G. Fenton, a real estate company.

Building a better delivery system is so important thatthe water authority and other Southern California agencies have offeredto pay construction costs and for some environmental safeguards.Estimates vary wildly, from $7 billion to $17 billion, depending on thesize and location of the canal.

"It is a lot of money," Stapleton said. "But to somedegree, it's 'put your money where your mouth is.' We're demandingimprovements in the delta to improve water reliability."

But it's not as simple as writing a check. The failed Peripheral Canal haunts those pushing new plumbing 27 years later.

"Don't say Peripheral Canal. It's alternative conveyance," said SenatePresident Pro Tempore Darrell Steinberg, D-Sacramento, with a knowinglaugh.

"The delta is unsustainable as it is," Steinberg said,turning serious. "We have to be open to alternative conveyance. Butonly if there is a co-equal commitment to restore the fragile ecosystemand there is respect for those who live there."

Delta-area residents, farmers and fishermen are soundingalarms. They have aligned with some environmentalists wary of promisesto protect fish and wildlife.

"It's all about taking water south," said Charlyn Connor,who grows wine grapes near Sacramento. "They need to stop building inthe desert. They killed the Colorado (River) and now they want to killthe delta."

A one-two punch of drought and court-ordered protectionsfor fish has squeezed delta water deliveries to Central Valley farmsand Southern California cities. Water shortages combined with a deeprecession have idled farmland and farmworkers, transforming mainstreets in Mendota, Parlier and Caruthers from rows of robust stores toshuttered hulls.

The Rev. Samuel Rodriguez, president of the NationalHispanic Christian Leadership Conference, sees direct links amongwater, unemployment and a growing spiritual and moral crisis in thedepressed Central Valley.

Domestic violence, alcoholism and drug abuse are on the rise along with the jobless numbers, he said.

"It's morally reprehensible. . . . The church needs to standup and say enough is enough," said Rodriguez, who believes farms andcities should be first in line when water supplies are short.

At the same time, nets and lines are not being cast forsalmon for the second straight year, forcing many commercial fishermento the docks. If not for those water diversions from farms to fish,they believe their way of life would disappear completely.

"I'm a food producer, the same as the farmer. Our commondenominator is water," said Larry Collins, who used to troll for salmonout of San Francisco.

Even as jobs evaporate, fish numbers plummet and the delta nears collapse, deep political divisions have stalled progress.

And as if closing a deal over dams and a new canal isn't challengingenough, another obstacle has emerged to further divide the governor andlawmakers as they chart a new course on water.

Democrats intend to move ahead with a package of measuresaimed at restoring the delta, including establishing an agency and"water master" with broad powers. New fee authority is also in the mix.

"We don't need more bureaucracy. We need more water," said Sen. Dave Cogdill of Modesto, a Republican leader on water issues.

Cogdill and Schwarzenegger promote more reservoirs as part of astatewide bond measure, which will require a two-thirds vote of theLegislature to pass.

Steinberg says he will consider a smaller bond, but it is not the top priority.

"I want to make sure we first get the policy right on how to restorethe delta and then deal with the issue of water supply reliability,"Steinberg said.

That drew an immediate and pointed warning fromSchwarzenegger: Pass a water bond that includes new storage or he willveto related bills.

"We need a whole package to restore our water today and ensure we have water for tomorrow," the governor said.

The county water authority is monitoring the debate over reservoirs,but is reserving its political pull for a new canal. The waterauthority has committed nearly $1 billion to several local reservoirexpansions, including $600 million to raise San Vicente Dam. ManyDemocrats, still stinging from being forced to drastically slashfunding for social programs and education, are reluctant to take oneven more debt to build reservoirs that they are not convinced arenecessary.

For example, the governor's $11.7 billion bond proposalfrom last year would have taken $760 million a year to pay off over 30years, according to the nonpartisan legislative analyst.

Assemblywoman Mary Salas, a Chula Vista Democrat involvedin water talks, said it's important to review all potential sources,including reservoirs, groundwater, conservation and desalination.

But she, too, places a priority on protecting the state's water hub.

"If you don't save the delta, then it doesn't matter how many dams you build," Salas said. "The whole system collapses."

Regardless of the challenge, Steinberg insists a deal is within reachfor a Legislature and state facing a host of difficult issues.

"I want to get water done. I do – because I also think the institution and the state need a big win," he said.

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Michael Gardner: (916) 445-2934;