December 2, 2005

Mr. E.G. “Jerry” Gladbach, President
Association of California Water Agencies
910 K Street, Suite 100
Sacramento, California 95814

Mr. Randy Fiorini, Vice President
Association of California Water Agencies
910 K Street, Suite 100
Sacramento, California 95814

Governor Arnold Schwarzenegger has asked me to respond to your October 7, 2005 letter transmitting “No Time to Waste: A Blueprint for California Water”.

The Blueprint contains 12 recommendations of the Association for California Water Agencies for meeting the State’s water needs. Of particular concern are the first two steps of the Blueprint: improving the existing Delta water conveyance system; and evaluating long term threats to the Delta and pursuing actions to reduce risk.

The Department of Water Resources (DWR) is diligently working to improve the existing Delta conveyance system. Specifically, the Draft Environmental Impact Report/Statement for the South Delta Improvements Program (SDIP) became available for public review on November 10. This project proposes 1) to install operable gates to improve conditions for San Joaquin River salmon and agricultural diverters in the south Delta, and 2) increase the Delta export limit of the State Water Project (SWP). A staged decision process will be followed for the proposed project, which provides for the design and construction of operable gates to begin by mid-2006 and for discussions regarding increasing the SWP Delta export limit to also begin at that time. The staged decision will allow information on the causes of the decline of the populations of Delta smelt and other fish dependent upon the Delta to be incorporated into the final decision on increasing the export limit.

DWR is also making strides in addressing the long-term threats to the Delta. On November 1, 2005, a joint legislative committee hearing was held on the threats to the Delta. At this hearing, I outlined the catastrophic impact a large earthquake would have on Delta levees. As you know, the potential economic impacts are huge. DWR estimates the total costs to California’s economy could be $30 to $40 billion in the first five years. A modified version of the presentation given at the hearing is attached. DWR is recommending major investments in levee maintenance and improvements, prioritizing the Delta levees needing protection, and providing for emergency response. An “Interim Emergency Response Plan” is being finalized. A comprehensive two-year effort, entitled “The Delta Risk Management Strategy,” is underway to better understand risks to the Delta and develop risk reduction strategies.

Other actions taken by the Governor’s administration this year includes the release in January of a flood management report to the Legislature and increasing the State's General Fund flood management budget by 70 percent for levee maintenance and flood emergency response. In addition, the Governor signed two bills that represent small steps to improve Sacramento‑San Joaquin Delta flood control efforts. Assembly Bill 1200 (Laird) directs DWR and the Department of Fish and Game (DFG) to study island subsidence, floods, earthquakes and other issues affecting the Delta. Senate Bill 264 (Machado) extends the Delta Flood Protection Fund for two years.

I sincerely appreciate the initiative taken by your organization in developing the Blueprint. I believe the administration is moving forward as quickly as possible to make incremental improvements to water management in the south Delta via the SDIP and in developing a risk management strategy for the Delta that will meet the needs of the State. DWR and DFG are evaluating your recommendation to establish a high-level commission to address the issues of the Delta as part of the AB 1200 process. We look forward to your support and continued involvement in the development of a plan for the Delta. We also appreciate the commitment of ACWA and its member agencies in working with us to develop a plan to finance the long-term investments needed for the Delta.

If you have any questions, please call me at (916) 653-7007 or Jerry Johns, DWR’s Deputy Director, at (916) 653-8045.

Sincerely,
/s/ Steve Verigin for

Lester A. Snow
Director

Attachment:
Testimony to the Joint Hearing on Levees and Emergency Preparedness
November 1, 2005

cc: Governor’s Office
The Resources Agency