California lawmakers push spending water bond funds

By Jim Christie

SAN FRANCISCO (Reuters) - California should spend more than $800 million in existing bond funds for water projects and cut its water use, two top state lawmakers said on Monday, responding to a $9.3 billion water bond urged by Gov. Arnold Schwarzenegger and U.S. Sen. Dianne Feinstein.

Aides to state Senate President pro Tempore Don Perata and Assembly Speaker Karen Bass said the two are not ruling out a multibillion-dollar bond to expand the state's water infrastructure. But they would prefer for now to advance bills already before lawmakers to upgrade the state's water works and promote more efficient water use.

"This gets money out the door today," said Steven Maviglio, a spokesman for Bass.

A new-money water bond will be a focus for state officials, but in the near term California, officially in a drought, should use $812.5 million set aside in a $5.4 billion bond measure that voters approved in 2006 to fund programs for water supply, flood control and natural resource protection, said Perata spokeswoman Lynda Gledhill.

"It's just sitting there waiting to be spent," Gledhill said. "We're not saying there can't be a new bond but we should spend the money that has already been approved."

Leaders of the Democrat-led legislature want lawmakers to approve Perata's bill for spending the existing bond funds and an Assembly measure setting a target for reducing water use by 20 percent for most urban water agencies by 2020.

San Francisco Mayor Gavin Newsom backed their approach, noting his city desperately needs its $20 million share of the existing bond money.

"In addition to funding water supply priorities amidst a statewide drought, this bill will also help address immediate flooding and environmental needs for San Francisco and other California cities with aging combined sewer systems," Newsom said in a statement.

More than 70 percent of San Francisco's 900 miles of sewers are more than 70 years old and many are at risk of failure, according to Newsom's office.

Schwarzenegger, a Republican, and Feinstein, a Democrat, unveiled their plan on Thursday for a $9.3 billion bond that they said could bridge the partisan divide between state lawmakers in talks for new debt to finance water projects.

Negotiations have stalled as Democrats and Republicans disagree on what kind of new projects the most populous U.S. state should add to its water infrastructure, which includes extensive canals that transport water from the northern part of the state to southern California, which also imports water from the Colorado River.

Dams are the biggest stumbling block. Democrats, backed by environmentalists, oppose building dams. Republicans from farming regions favor them.

Schwarzenegger spokesman Aaron McLear said the bond plan offered by the governor and Feinstein would incorporate the spending Perata proposes, as well as conservation initiatives, but as parts of a broad effort: "We ought to be doing a comprehensive solution ... For us it doesn't necessarily make sense negotiating a couple elements of the plan."

(Editing by Dan Grebler)