"We write to urge that the Federal government support efforts by United States Secretary of the Interior Bruce Babbitt and Governor Pete Wilson to reach agreement on a preferred CALFED alternative for the restoration of the Northern California Bay-Delta, in a manner that would secure clean water and supply reliability for Southern California," wrote the executives.

For Southern California it is important that the CALFED program include water storage and water quality components to ensure that its supplies meet EPA safe drinking water standards with adequate supply reliability. Without those two elements water conservation, the environment, and Southern California's economic vitality will be compromised, the executives concluded.

Heckmann stated: "It is wrong to say that fixing water quality and supply reliability in and from the Bay-Delta represents an effort by Southern California to drain Northern California dry. In fact, dealing with Bay-Delta problems in only a part of the solution to Southern California's water supply reliability future. The major part is facilitating regional water transfers from willing sellers to willing buyers, expanding water recycling and conservation. Ail portions need to move forward now."

"For each 100 milligrams of added salinity in water from the Bay-Delta, Southern California faces approximately $100 million in added costs to ratepayers, the letter asserts.

Larry Kosmont, President of Kosmont and Associates which publishes the annual Cost of Doing Business Survey observed: "Fixing the Bay-Delta is important to Southern California. It is not hard to estimate that without good water quality and supply reliability Southern California will not be able to sustain its economic vitality. Unless we fix the quality and supply problem in the Bay-Delta, we will have to bear the costs of meeting federal regulations and demand locally, while also being expected to share the cost of fixing the environment in the North. This can have the effect of driving costs up and jobs away."

The following is the text of the letter to President Clinton and members of Congress urging resolution to California's water woes in Northern California:

Dear President Clinton and Members of Congress:

impair confidence in our economy and regional quality for life.

As representatives of the business community in Southern California we are concerned that while our region has paid for its full allocation of water from the State Water Project we have received only half of our entitlement. According to a 1996 Los Angeles Area Chamber of Commerce study, this situation compelled Southern California resource agencies and taxpayers to invest

$8 billion in regional storage facilities, water recycling and landmark water conservation programs that could be jeopardized if water quality and supplies from the Bay-Delta continue to erode.

Southern California has benefited from a remarkable alliance of business, environmentalists and government agencies on issues of water. Our success means that today, the Southern California region uses less water than it did in 1975 despite a population growth of 5 million residents. Yet, for each 100 milligrams of added salinity in water from the Bay-Delta, Southern California faces approximately $100 million in added costs to rate payers.

Added water treatment costs in the Southern California region resulting from poor water quality in the Bay-Delta will not only reverse regional conservation and water recycling, but, as a result hurt efforts to clean coastal areas and groundwater aquifers. To have good water supply quality our region must blend Colorado River water with water from the Bay-Delta to lower salinity. The lack of a reliable water supply from the Bay-Delta could also impede efforts to maximize our use of regional supplies through agricultural-urban water marketing currently under discussion in California.

Much is at stake in Secretary Babbitt and Governor Wilson's efforts to reach agreement on a viable program to meet California's water supply and environmental needs. Therefore we urge that the Federal government match the commitment proposed by Governor Wilson in his fiscal year 1998-99 budget as well as other state financing vehicle for Bay-Delta facilities planning. For Southern California it is important that the CALFED program include water storage and water quality components to ensure that our supplies meet EPA safe drinking water standards with adequate supply reliability. Without those two elements water conservation, the environment, and our economic vitality will be compromised.