As legislative leaders and the governor seek a major water deal this weekend, a lot of focus has been on proposed borrowing to pay for dams and other projects. That fight is still ongoing, for sure. But the two parties are also divided over thorny policy issues.

These changes are being pushed by a key coalition of environmental groups.

Talks Saturday focused on the issues, but Republicans have yet to sign off on any of the proposals, which they say as written now would "create a vast new government beauracracy."

The policies don't require GOP votes, but Republicans have made it clear they won't sign off on bond financing -- which does require their votes -- until they are satisfied with the policy changes.

Environmentalists outlined their demands in a letter sent to Democratic leaders on Friday. Here's the text of the letter, obtained by the Bee.

October 9, 2009

Dear Senator Steinberg and Speaker Bass,

We write to thank you for your leadership and extraordinary efforts on behalf of the water package that emerged at the end of the session as SB 68. As you are aware, our organizations and others supported the package and continue to work to secure its enactment if possible.

As discussions continue we want to make sure to be clear about our positions on live issues. As you are well aware, we all stretched to come to agreement in SB 68 as introduced, so it already represents a substantial set of compromises that would not be the first policy choice from the perspective of our organizations.

We, nevertheless, support the package because we believe strongly in the provisions of the whole package that have the potential to break the cycle of conflict and environmental damage that have plagued California's water management system for decades. These include but are not limited to:

- The groundwater monitoring program, which is a very modest approach, particularly when compared to groundwater regulation throughout other western states such as Idaho and Texas;

- Substantially increased enforcement capacity at the State Board to address the pernicious problem of illegal diversions and permit violations, including the ability of the Board to address particularly egregious problems expeditiously and effectively without having to rely entirely on the courts;

- Provisions to require the State Board to develop public trust flow determinations which are the foundation of any meaningful effort to restore and sustain the Delta estuary and our salmon fisheries;

- A comprehensive and enforceable water conservation program that addresses industrial and agricultural as well as urban water use, including changes agreed up to date; and

- A Delta Stewardship Council with balanced membership between gubernatorial and legislative appointees with staggered terms.

Our continued support hinges on maintaining these elements in the water package, particularly considering the fact that it already includes policy concessions and discussion continues about a massive water bond with billions for new storage continuously appropriated and potential loss of funds for ecosystem restoration. We remain available to work with you as this process continues.

Thank you again for your leadership on behalf of Californians who drink water, fish that swim in it, farmers who irrigate with it, ecosystems that depend on it and more.

Best,

Ann Notthoff, Natural Resources Defense Council
Cynthia Koehler, Environmental Defense Fund
Leo Winternitz, The Nature Conservancy
Kim Delfino, Defenders of Wildlife
Gary Bobker, The Bay Institute
Dan Taylor, Audubon California