Group Says D.C. Ignores Area Water Interests : Allocations: Business leaders return from trip with concerns that consumers are not being represented.

WASHINGTON —  After discussing California water issues with Bush Administration and congressional figures, Valley business leaders expressed concern Wednesday that no one here is representing the interests of Los Angeles water consumers, including businesses.

“Everyone seems to have a hidden agenda, everyone seems to represent a particular interest group,” said Benjamin Reznik, chairman of the Valley Industry and Commerce Assn. “The environmentalists are represented, agriculture is represented, but the voice of the consumer and business in Southern California isn’t represented. That’s why we’re here.”

A frustrated David W. Fleming, a lawyer and chairman of VICA’s government relations committee, was more blunt: “Even though people profess to be trying to change the system, it’s still business as usual behind closed doors.”

Seven VICA representatives traveled to the nation’s capital for the group’s third annual Washington visit. VICA represents 275 businesses in the San Fernando, Santa Clarita, Antelope and Simi valleys that employ 90,000 people.

The delegation met with Interior Secretary Manuel Lujan Jr., Sens. John Seymour (R-Calif.) and Bill Bradley (D-N.J.), Rep. George Miller (D-Martinez) and Washington representatives of California Gov. Pete Wilson--all of whom are involved in negotiations over far-reaching water proposals.

Reznik, an Encino land-use attorney, said VICA concentrated on water because policy-makers are at a crossroads in a process that could affect the statewide water allocation for decades. The business leaders also told lawmakers and Administration officials that they favor legislation to provide federal funds to assist and retrain aerospace workers who have lost their jobs with the end of the Cold War and to address the growing national health-care problem.

They expressed little confidence that the issues would be addressed soon with meaningful national initiatives. They did, however, meet with Rep. Howard L. Berman (D-Panorama City) to discuss his efforts, in concert with industry and universities, to develop an electric-car industry in Los Angeles that would create jobs for laid-off defense employees and contractors.

The three-day visit, however, dealt primarily with water because of pending major water initiatives.

Wilson has proposed that the state take over the debt-ridden federal Central Valley Project water system, the largest supplier of water in California, providing one-fourth of the state’s water for agriculture. The state takeover is being negotiated with the Department of the Interior.

In Congress, the House has passed a bill written by Miller and backed by environmentalists that would do away with the 40-year contracts for Central Valley Project users--mostly agriculture and water districts--and make some supplies available for environmental conservation and urban users.

On the Senate side, Seymour has sponsored legislation that would allow farmers with contracts for Central Valley Project water to sell water to urban users with the approval of local water districts. The measure would also set aside 380,000 acre-feet of water annually for wildlife habitats.

Seymour negotiated key provisions with Central Valley Project farmers and the Metropolitan Water District, which serves Southern California, an aide said Wednesday. The measure, which is backed by Central Valley agribusiness, has passed the Senate Energy and Natural Resources Committee and been sent to the full Senate.

Another Senate bill, proposed by Bradley, chairman of Energy and Natural Resources subcommittee on Water and Power, would reallocate blocks of Central Valley Project water historically designated for agriculture uses.

The water would go for environmental protection and would provide some supplies for industrial and urban users, including the MWD. The bill would devote five times as much water for wildlife habitat as the Seymour bill.

If the Senate approves Seymour’s bill, representatives of both houses will meet to reach an accommodation between the House and Senate measures and to consider provisions in the Bradley bill, now on hold. Reznik and Fleming said they were unable to determine the costs of the pending proposals or their effect on Southern California consumers and companies.