Burt Wilson - If Our Water Rates are Raised Without Our Voting for the Tunnels, It's 'Taxation Without Representation"

If our water rates are raised without our voting for the tunnels, it's  "taxation without representation"

By Burt Wilson bwilson5404@sbcglobal.net 5-31-2013       The BDCP released a new chapter the other day, this one on funding mechanisms for the Delta Twin Tunnels. To cut to the chase: the Capital Expenses for the construction of the two tunnels will be $19.9 billion and the Operation and Maintenance costs over a 50-year span will be $4.8 billion. So the grand total is $24.7 billion just for the tunnels.      This price does not include the habitat restoration projects which will be paid for by unspent funds from past water bonds languishing in the Dept. of Water Resources Treasury and the (they hope) the $11-billion Water Bond which comes up for a vote in 2014.      One thing we should be thinking about: How can Jerry Brown ban a public vote on the tunnels and still expect us to vote for a water bond that robs us of more money? The Water Bond's gotta go down to defeat, even if it is lowered as Sen. Steinberg is maneuvering to do right now. He knows it'll be dead on arrival the way it is.      The BDCP Funding Chapter has some extremely important little asides. One is "Details of the financing and repayment described in this section from the Authorized Entities and other sources are still being determined through on-going discussion between the state and federal governments and between the government, the state and federal water contractors and  other interests. Issues still under discussion include aligning the financing and repayment responsibilities with the "beneficiary pays" principle, among other related issues."      I'll explain what that means after the method of funding: The "Authorized Entities" are the six water contractors who have joined together for this funding event under the aegis of the "State and Federal Water Contractors Association." What will happen is the Dept. of Water Resources will issue bonds for the construction projects and those bonds will be financed by the SFWCA which will provide what is called a "Revenue Stream" to the DWR.        What is "still being determined" is: Who is going to pay for the debt service and how--which is usually half of the total cost of the project--and how much the water contractors can charge their water purchasers. This includes how much they can increase their charge to the oil companies for water for fracking.      This is part of the reason that Westlands is suing the Delta Stewardship Council to see who gets control of the project--Westlands wants it for the Water Contractors. After all, they are playing Santa for the DWR and they expect a return on their $19.9 billion investment. The DWR wants control because they are the established, traditional rate controllers. The newly-minted Delta Stewardship Council wants control because they were actually formed to be the new 800 lb. Gorilla in the Delta--lording it over everyone who will now be reporting to them.         Of course, in the final analysis, you and I are the "beneficiaries" who will have to "pay." But this brings up a rather important point: if we did not vote on this deal, raising our water rates could be viewed as de facto "Taxation without Representation."        So, write the governor and your congressperson and stay tuned. This is all gonna be a bumpy ride!             "To take water from where it is needed                              and send it to where it is scarce, is                              simply bad water policy."                                                   --Henry George

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