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Water Package Negotiations Continue

ACWA Seeks Amendments to Address Key Member Concerns

This week has brought intense activity on a legislative water package. Lawmakers introduced new bills in the special session on water, and the Assembly and Senate water committees held joint informational hearings on policy and financing elements of the package.

Legislative leaders have signaled that floor votes could be held in both houses next week.

Senate President Pro Tem Darrell Steinberg’s SB 7X 4 is now considered the main policy bill in play.  The measure, introduced today, addresses the Delta, water conservation, groundwater reporting and water rights enforcement and sets the stage for major decisions on Delta conveyance. It essentially replaces the policy bill Steinberg introduced earlier this week, SB 7X 1.

Assembly Republicans introduced their own version of the package on Tuesday. AB 7X 1 (Fuller, Jeffries, Nielsen) differs from Steinberg’s measure in its approach to penalties for illegal water diversions and provisions related to waste and unreasonable use of water with respect to urban conservation targets.

An informational hearing on two new water bond bills was held yesterday. The bills, SB 7X 2 (Cogdill) and SB 7X 3 (Steinberg), each call for a $9.4 billion bond measure on the November 2010 ballot. The Cogdill measure is expected to be the vehicle that advances.

However, Assembly Member Anna Caballero is expected to introduce her own water bond measure later today.

ACWA’s Board of Directors met via conference call today and directed staff to seek amendments in three key areas. Though many provisions in SB 7X 4 are highly consistent with Board-adopted ACWA policy principles, concerns remain in the areas of in-stream flow criteria, flexibility to meet conservation targets, what constitutes waste and unreasonable use of water, and water rights enforcement provisions.

The bond language in SB 7X 2 is consistent with language ACWA has supported previously. Key elements include $3 billion (continuously appropriated) for storage projects, $1.1 billion for local water supply reliability projects, $250 million for water recycling and advanced treatment technology projects, and $250 million for local water conservation and water use efficiency programs.

ACWA is fully engaged in meetings to seek further modifications to the package consistent with the principles of the ACWA Board. Staff will continue to keep members apprised.