A bill introduced this week in the General Assembly to allow construction of reservoirs by public-private partnerships drew immediate praise from business leaders nervous about a looming water deadline.
"We can't afford to wait, and this new legislation would leverage public dollars with significant private-sector funds," Coca-Cola Enterprises Chairman and CEO John Brock said in a statement Friday.
Senate Natural Resources Committee Chairman Ross Tolleson, R-Perry, who sponsored the bill, said it gives financially struggling local governments another way to get water projects moving.
“What we’ve done is set the stage for a lot of projects that are going to be done around this state for 25 years," he said. "We need every potential tool of financing that we can get.”
With the metro area looking at the possible loss of Lake Lanier as a drinking water source, the Georgia and metro Atlanta chambers of commerce immediately backed the bill. Brock, chairman of the Metro Atlanta Chamber, tied the bill to Gov. Nathan Deal's plans to jump-start regional reservoir development.
"We are proud of the strong stance Governor Deal has taken on water, and we encourage the Legislature to pass this new funding alternative to get projects moving before the next drought comes along," he said.
Environmental groups are alarmed at what they see as a rush to develop new reservoirs. Neill Herring, a lobbyist for the Sierra Club, said the bill needs work.
As written, it would give local governments final say over whether to enter into a public-private agreement, but the state also would have the option of pitching projects to them. Herring said that could be problematic because the bill also would give local governments the authority to negotiate a contract with a private company rather than bid it competitively
Georgia, Alabama and Florida have been at loggerheads over interstate water rights for 20 years. The legal fight turned against Georgia in 2009 when U.S. District Judge Paul Magnuson ruled that Lanier, a federal reservoir, was never authorized to be used for drinking water for metro Atlanta.
Magnuson gave Georgia three years to either get congressional authorization to take water from the reservoir or to find another solution. Georgia has appealed the decision -- oral arguments are scheduled for next month -- but Deal has pushed reservoir growth as a part of the state’s long-term water strategy.
But even small reservoirs can cost tens of millions of dollars, making them difficult projects for local governments to consider. Tolleson said allowing big business to finance reservoirs is another way to get the projects going.
Tolleson sponsored a similar bill last year that passed the Senate but died in the House over concerns about local government control. Todd Edwards, a lobbyist for the Association of County Commissioners of Georgia, said local officials are more comfortable with this bill.
“Anytime you provide another tool for local governments, whether it be reservoirs, distribution or water augmentation in general, we appreciate it," he said.
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