(April 25, 2007) A Senate committee yesterday rejected California Chamber of Commerce-supported legislation to authorize a $3.9 billion general obligation bond to finance new water storage facilities.

SB 59 (Cogdill; R-Modesto) failed to pass the Senate Natural Resources Committee yesterday 3-4.

SB 59 would have placed before voters a proposal to sell $3.95 billion in general obligation bonds to finance surface and groundwater storage, water use efficiency, environmental restoration, and water quality projects in the state. The increased water storage is part of the Governor's strategic growth plan and also has the support of U.S. Senator Dianne Feinstein (D-San Francisco), Senator Dave Cogdill told committee members.

The bill would require the beneficiaries of storage to develop a shared financing plan before bond funds could be spent on storage.

Dominic DiMare, CalChamber vice president of government relations, urged the committee to support the bond measure, commenting that facilities cost less to build now than they will in the future.

Citing projections that the snow pack and water supplies in California are decreasing, DiMare said, "SB 59 is the type of measure that is necessary to adapt to the changing climate and the changing world around us by enhancing water storage in California. We think it's critical. . . We can't get there through conservation alone. We need storage. Not to build storage to adapt to these potential scenarios in the future would do a great disservice to future generations of Californians and also really have a very negative effect on the economy."  View video clip

Dominic DiMare, CalChamber vice president of government relations, speaks in support of SB 59 bond funding for water storage at a State Capitol press conference.

The water system that contributed to California’s emergence as one of the world’s major economic powers is failing. Additional water storage through new reservoirs and expanded underground storage capacity will help the state meet future demands. To help mitigate this problem, regional water storage projects have come on line to help combat current water shortages in drought scenarios. However, they do not address the need for increased water supplies to cope with future demands, or the need for operational flexibility due to early snow pack melt brought on by climate change.

Key Vote
The 3-4 Senate Natural Resources vote on SB 59 was:

Ayes: Cogdill (R-Modesto), Hollingsworth (R-Murrieta), Margett (R-Arcadia).

Noes: Kehoe (D-San Diego), Kuehl (D-Santa Monica), Migden (D-San Francisco), Steinberg (D-Sacramento)

Absent, abstaining or not voting: Machado (D-Linden).

The CalChamber will continue to work with Senator Cogdill, Governor Arnold Schwarzenegger and other interested parties to ensure that the state has sufficient facilities to capture, retain and convey the water needed to support California’s growing population and economy.

Staff Contact: Dominic DiMare