By E.J. Schultz
Sacramento Bee
February 22, 2007

Sen. Dianne Feinstein and Gov. Arnold Schwarzenegger met privately with state lawmakers Thursday in an effort to jump-start stalled negotiations on a state water bond.

There were no major breakthroughs and significant hurdles remain. But legislative leaders from both parties agreed to meet again in two weeks, the governor said.

Feinstein, who was invited to the Capitol by the governor, said, "I found it very productive and very constructive and I think the key is … to keep these people together."

She and the governor pressed for a legislative deal to get a measure on the November ballot, rather than relying on an outside ballot initiative.

Legislative water solutions have proved elusive due to the partisan divide over dams. Talks collapsed last year and lawmakers from both parties had put the issue aside this year as they wrestle with the state budget crisis.

But Feinstein said "the window of opportunity is on us now." If no deal is reached for this year's ballot, lawmakers would probably have to wait until 2012, she said. That's because reaching a deal for the 2010 ballot might prove to be politically impossible because it is a gubernatorial election year, she said.

Feinstein has long pushed for state money for dams, parting ways with other leading Democrats who have strongly opposed using public money to pay for surface water storage. On Thursday, Feinstein called for a "comprehensive solution" that would include money for dams and groundwater storage, as well as for repairs to the deteriorating Sacramento-San Joaquin Delta.

A proposal sponsored by the California Chamber of Commerce and other business and farm groups would spend $11.7 billion in new bond money for water projects, including about $3.5 billion for dams.

The group has until July 14 to collect 433,971 valid signatures from voters. But sponsors are unlikely to launch the expensive drive unless they have broad political backing from politicians such as Feinstein and Schwarzenegger.

"If there's not enough major political leaders endorsing that initiative, I would probably not expect the initiative to move forward," said Mario Santoyo, assistant general manager of the Friant Water Users Authority.

The authority, which represents east Valley growers, wants a new dam upstream of Millerton Lake. Friant, a joint powers authority, is not an official member of the business water alliance because law prevents it from spending money on political campaigns.

The business proposal is similar to a $10 billion plan floated last year by Schwarzenegger. He failed to broker a deal with Senate President Pro Tem Don Perata, D-Oakland.

Perata, who leaves the Legislature at the end of the year, joined environmental organizations in launching a media campaign against the governor's plan.

The television and radio ads, which will air in Northern California, play on the longtime geographical split on water issues. The radio spot, for instance, accuses the governor of wanting to spend billions for new dams and canals "so we can send more water south."