(July 11, 2008) California Chamber of Commerce President and CEO Allan Zaremberg yesterday applauded the leadership of Governor Arnold Schwarzenegger and United States Senator Dianne Feinstein in renewing focus on the critical issue of water infrastructure and storage in California.

Governor Schwarzenegger and Senator Feinstein yesterday proposed a compromise plan to the Legislature to update California’s water system by increasing storage, improving conveyance, protecting the Delta’s ecosystem and promoting greater water conservation.

“CalChamber applauds the Governor's and Senator Feinstein’s leadership toward solving California’s long neglected water crisis,” said Zaremberg. “The water system that contributed to California’s emergence as one of the world’s major economic powers is faltering. Existing facilities are barely able to meet current public demand. The goals outlined in the plan announced by the Governor and Feinstein today – to ensure the integrity of the conveyance system through the Delta, add storage for the benefit of people and the environment, and ensure a safe, reliable supply of water for all Californians -- are identical to the goals of the previously filed CalChamber initiatives. The business community truly appreciates the commitment of these leaders to deliver a comprehensive water package that invests in California’s future.” 

The $9.3 billion bond proposal that the Governor and Senator Feinstein have proposed in SBX2 1 (Perata; D-Oakland) includes the following elements from all stakeholders and is a compromise approach that will move California toward a reliable water future:

• Increased water storage to ensure our water supply is more reliable year-to-year and we’re able to capture excess water in wet years to use in dry years;
• Improved water conveyance to reduce water shortages
• Restored Delta ecosystem to allow California to take control of its own water systems; and
• Increased conservation and tools to use water more efficiently.

California is facing the most significant water crisis in its history. After experiencing two years of drought and the driest spring in recorded history, water reserves are extremely low and would not be able to meet public demand during a major disruption to the state’s water delivery system such as an earthquake or levee breach. With the Sacramento-San Joaquin Delta ecosystem near collapse, court-ordered restrictions on water deliveries from the Delta have reduced supplies from the state’s two largest water systems by 20 to 30 percent.

Drought conditions in the Colorado River Basin and a Sierra snowpack is now dangerously unreliable and is leaving many communities throughout California facing mandatory restrictions on water use and/or rising water bills. If the drought continues into next year, the results could be catastrophic to our economy.

Last month, the Governor issued an executive order declaring a statewide drought, which directed state agencies and departments to take immediate action to address the serious drought conditions and water delivery reductions that exist in California. The Governor also proclaimed a state of emergency in nine Central Valley counties to address urgent water needs: Sacramento, San Joaquin, Stanislaus, Merced, Madera, Fresno, Kings, Tulare and Kern.

This year’s drought has already significantly damaged California’s economy. Agricultural crops are being plowed under, housing and business projects are being delayed, and regional water authorities are instituting mandatory water rationing to a reliable water supply. Due to California’s water shortages, thousands of jobs are lost and construction projects are on hold because a water supply cannot be guaranteed.

The crisis is no less severe for California’s fisheries and critical environmental resources. In two of the past three years, the state’s once thriving Pacific salmon fisheries have been simply shut down as former salmon strongholds throughout the state have become dangerously imperiled. The populations of Delta smelt and other native Delta fish have collapsed to tiny fractions of their former levels. Restoring fisheries and California’s riparian ecosystems in the face of all these challenges will require bold action.

“This year’s drought and environmental issues have put the critical issue of water infrastructure front and center.  The time to act is now,” Zaremberg concluded. “We look forward to working with the Governor, Senator Feinstein and members of the Legislature to achieve a consensus package for voter approval on the November ballot.” 

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