As predicted by GRA last year, the subject of groundwater and groundwater storage is fully in the spotlight in Sacramento this year. GRA has actively engaged on the subject of groundwater storage through activities at the capitol including the Annual Legislative Symposium and Legislative visits, input and testimony on pertinent bills, and the recent groundwater storage symposium.

Senate Bill 59 by Senator Dave Cogdill, sponsored by Governor Schwarzenegger, failed to pass out of the Senate earlier this year but remains the platform for the Governor’s campaign for a comprehensive water package. SB 59’s inclusion of surface storage has prompted the Democrats to focus more keenly on opportunities to develop groundwater storage.

As of this writing the Legislature is in a total meltdown due to the Budget Crisis. The Assembly passed the Budget on Friday July 20th around 2 o’clock in the morning and then promptly left town. However, the State Senate has been unable to muster the 27 votes required to approve the Budget passed by the Assembly. No Senate Republicans have voted for the Budget, leaving the Democrats two votes short for passage. The Republicans have raised a number of issues including further cuts and reigning in the Attorney General on AB 32 enforcement. Tempers are frayed, not only between the Administration and the Legislature, but between the Assembly and Senate.

In the background of the Budget Crisis are a number of other issues including the water bond, prison and health care reform. The bond issues, including implementation of the bonds voters approved last November, will be the main focus in August when the Legislature returns from Summer Recess. To foreshadow these negotiations, the Governor has gone on a statewide water tour promoting the need for water conservation and improvements to our statewide infrastructure. His focus has been primarily on surface storage and a Delta fix.

Senator Don Perata (D-Oakland), the President Pro Tem of the Senate, sent a letter to Governor Schwarzenegger July 16th outlining his plan for a water bond package. Here are the highlights:

Senate Comprehensive Water Supply Reliability Package

2007-08 Appropriations – SB 1002

Immediate Actions to Protect the Delta and drinking water ($200 million Prop 84)

• Improve emergency response—pre-positioning of materials and equipment to respond to catastrophic seismic/flooding events in the Delta
• Provide funds for emergency flood fight and levee repair
• Immediate “No regrets” ecosystem restoration actions to improve conditions for smelt and other species

Water Supply Reliability/Integration of Flood and Supply Systems:

• Groundwater Clean-up to improve local and regional drinking water supply ($60 million Prop 84)
• Funding for design of Central and South Delta projects to improve water quality and reduce impacts of pumping. ($10 million Prop 84)
• Direct DWR to develop water/flood system redesign to optimize for water supply reliability and flood protection ($15 million Prop 84)

2008 Water Bond

Delta Conveyance and Restoration ($2 billion)

• 1st Phase infrastructure to support Delta strategy developed next year per SB 27 (Simitian) process ($1 billion)
• Ecosystem restoration consistent with SB 27 choice ($1 billion)

Water Supply Reliability ($2 billion)

• Divided regionally (using Integrated Regional Water Management formula)
• Competitive grants within regions: Local agencies get to decide supply choices—surface storage, groundwater, recycling, efficiency, etc.

River Restoration Projects ($1 billion) to resolve conflicts with supply and water quality

• Klamath
• Sacramento/San Joaquin watersheds
• Coastal LA
• Santa Ana
• Salton Sea/ Colorado
• Other

Senator Perata’s bond proposal is not yet in legislation. Bill language is being developed and will evolve as negotiations proceed. The big change from the standpoint of the Democrats is that the Senate Leadership has now committed itself to putting a water bond on the ballot in 2008. Informed Administration sources believe that the likelihood of a 2008 Water Bond being placed on the ballot by the Legislature has decreased significantly due to the on-going Budget Deadlock.

SB 1002 by Senator Perata is the Proposition 84 implementation bill working its way through the Legislature. GRA and California Groundwater Coalition testified in the Assembly Water, Parks and Wildlife Committee in support of the legislation. SB 1002, among many other things, allocates $200 million of the $1 billion in Prop 84 Integrated Regional Water Management Planning fund for groundwater purposes. The bill passed with Democratic support and Republican opposition. GRA is working with Senator Perata’s Senior Staff to examine the possibility of amending this language so that concerns raised by opponents are addressed. Our chief mission is to ensure that maximum funding is provided for groundwater.

SB 178 by Senator Darrell Steinberg (D- Sacramento) (Chairman of the Senate Natural Resources and Water Committee) passed from the Assembly Water, Parks and Wildlife Committee after Senator Steinberg agreed to amendments requested by the California Farm Bureau. Accepting the Farm Bureau’s amendments greatly increases the likelihood that the bill will be signed by Governor Schwarzenegger this year. After the gubernatorial vetoes of SB 820 and SB 1640, sponsored by Senator Kuehl, it was clear that negotiating with the Farm Bureau would be necessary. The amendments, which are not yet in print, will be posted on the GRA website when available.