Public-private options eyed for water needs

By Ashley Speagle

Correspondent

ATLANTA — Georgia senators passed a bill this week that would allow private businesses to build reservoirs to provide public water.

“We need water, and we need private capital,” said Sen. Chip Pearson, R-Dawsonville. “To build the necessary infrastructure, we’re going to have to ... engage the private sector.”

Senate Bill 321 would amend state law to allow public/private partnerships and allow the state to reimburse some costs private companies spend on projects. The bill now goes to the state House for consideration.

Georgia is facing dire water needs in the decades ahead. The state Office of Planning and Budget projects the population, about 9.8 million in 2009, will hit 14.4 million by 2030.

Water supply and infrastructure haven’t kept pace with growth, and a federal judge has ruled that Georgia has to stop taking water from Lake Lanier, Atlanta’s main water source.

Local control was a key issue as the Senate debated and passed the bill Thursday.

Sen. Donzella James, D-College Park, worried that private companies could charge fees or taxes for water without government input. Sen. Doug Stoner, D-Smyrna, said foreign ownership concerned him.

“There’s no provision for a company from China or Dubai to have joint ownership of our water,” Sen. Stoner said.

The Association County Commissioners of Georgia also said local governments could lose oversight of privately funded projects.

“Our concern all along is that the local government was not assured a seat at the table when deciding these private reservoirs,” said Todd Edwards, ACCG associate legislative director.

Some senators objected to allowing private developers into public projects.

“To create reservoirs with public tax dollars, whether you pay them back or not, with private enterprise is just philosophically wrong,” said Sen. Steve Thompson, D-Marietta.

The bill could allow businesses to resell water outside of the county where the reservoir is located or create reservoirs that compete with existing government water supply, Mr. Edwards said.

Neither the Georgia Chamber of Commerce nor the ACCG has announced active support for the bill.

Dalton City Councilman Charlie Bethel, a member of the Coosa-North Georgia Water Planning Council, said that although Dalton has its own water, statewide need could put it in jeopardy if nothing is done.

“Dalton made significant local investments in water, so it’s not an urgency other than, if the state doesn’t plan ahead, they may seize our assets,” said Mr. Bethel, who is a candidate for the state House of Representatives.

Senators adopted two amendments.

One requires privately funded reservoirs to be approved by all local governments in whose jurisdiction the reservoir lies.

“There was nothing to assure the local government may sign off (on locations),” Mr. Edwards said. “We commend the Senate for adopting that amendment.”

The other prevents the state from giving property acquired through eminent domain to private businesses to build reservoirs.

A proposed amendment to restrict the public-private partnerships to water supply projects failed.

“We don’t know what’s going to happen down the road,” said Sen. Pearson. “We’re asking them for their capital, and it may be within a larger project.”

Water supply isn’t Georgia’s first move into public-private partnerships.

The state Department of Transportation has worked on such partnerships, and the Senate passed a bill Wednesday offering tax exemptions for public-private projects.

Sen. Pearson said SB 321 basically was adapted from the Georgia Department of Transportation’s model.

“The General Assembly did something similar in transportation and, with that law in mind, we took that principle and brought it over,” he said.

SB 321

Provides for private operation or ownership of new public water supply reservoirs in certain cases. Allows requests for proposals and reimbursement of project advancement costs and sets up governance of the process.

Voting on SB 321

SB 321, passed 30-15

Sen. Jeff Mullis, R-Chickamauga Yes

Sen. Preston Smith, R-Rome Didn’t vote

Sen. Don Thomas, R-Dalton Yes

Amendment One: Limits projects to water supply only, defeated 25-20

Sen. Jeff Mullis, R-Chickamauga No

Sen. Preston Smith, R-Rome Didn’t vote

Sen. Don Thomas, R-Dalton No

Amendment Two: Gives local governments more input on private reservoirs, passed 25-20

Sen. Jeff Mullis, R-Chickamauga No

Sen. Preston Smith, R-Rome Didn’t vote

Sen. Don Thomas, R-Dalton No

Amendment Three: No property taken by eminent domain can be given to a private entity for a reservoir

Passed unanimously