(March 2, 2009) As a result of California’s third consecutive year of drought, Governor Arnold Schwarzenegger recently proclaimed a state of emergency and ordered immediate action to manage the crisis.

In the proclamation, the Governor uses his authority to direct all state government agencies to utilize their resources, implement a state emergency plan and provide assistance for people, communities and businesses impacted by the drought.

The drought conditions and water restrictions are causing additional devastating economic and business losses. Agricultural revenue losses exceed $300 million to date and could exceed $2 billion in the coming season, with a total economic loss of nearly $3 billion in 2009.

In particular, the order directs that by March 30, 2009, the DWR shall provide an updated report on the state’s drought conditions and water availability. According to the proclamation, if the emergency conditions have not been sufficiently mitigated, the Governor will consider additional steps. These could include the institution of mandatory water rationing and mandatory reductions in water use; reoperation of major reservoirs in the state to minimize impacts of the drought; additional regulatory relief or permit streamlining as allowed under the Emergency Services Act; and other actions necessary to prevent, remedy or mitigate the effects of the extreme drought conditions. 

DWR and California’s Department of Food and Agriculture will also recommend, within 30 days, measures to reduce the economic impacts of the drought, including but not limited to water transfers, through-Delta emergency transfers, water conservation measures, efficient irrigation practices, and improvements to the California Irrigation Management Information System.  

Last week, DWR announced that California’s severe drought had prevented it from increasing its State Water Project (SWP) delivery allocations for the first time since 2001. This year’s allocation as of February is at just 15 percent of SWP contractor’s requests. This is only the second time in SWP history that the February allocation has been this low. In addition, the U.S. Bureau of Reclamation, the administrator of the Central Valley Project (CVP), announced on February 20 that California farms will not be allocated any water from the massive system during 2009.

New Water Bond Legislation Introduced

Senator Cogdill (R-Modesto) last week introduced SB 371, the Safe, Clean, Reliable Drinking Water Supply Act of 2009. The bill continues the work of many over the past several years to get comprehensive and needed reforms to fix California’s broken water supply and delivery systems.

The plan proposed in Cogdill’s legislation calls for issuing $9.98 billion in general obligation bonds to invest in the state’s aging water infrastructure. Key elements of the proposal include building California’s water supply and storage systems, providing for Delta sustainability, encouraging water conservation and water use efficiency, and improving water quality. The plan also calls for implementation of important river and watershed restoration projects.

“The water system that contributed to California’s emergence as one of the world’s major economic powers is faltering,” said CalChamber President and CEO Allan Zaremberg. “Existing facilities are barely able to meet current public demand. The drought, environmental issues and the additional pressures on a broken down system have put the critical issue of water infrastructure front and center. The business community truly appreciates the commitment of Senator Cogdill in working for a comprehensive water package that invests in California’s future.”