A proposed Fresno-area dam is emerging as a key bargaining chip in negotiations over the largest public works bond measure in California history, talks that as of Monday evening appeared to be stalled or gaining momentum, depending on whom you asked.

Known as the Temperance Flat project, the proposed $1 billion dam and reservoir upstream of Millerton Lake is one of three water storage projects being considered by lawmakers as they try to strike a deal in time to get the bond package on June's ballot.

The deadline appears to be a moving target.

It was originally set for last Friday but talks continued through Monday night.

Republicans are pushing for a surface water storage component in the bond package, which at this point is loaded with money for roads, housing, ports and schools.

Citing environmental and other concerns, Democrats, for the most part, have tried to keep dam-building projects out of the bond package. But one project, a proposed reconstruction of the Perris Dam in Riverside County, made it into a bond package that Senate Democrats supported in a vote early Saturday.

The nearly $49 billion package came up three votes short of the required two-thirds approval as Republicans voted no.

The focus of bond negotiations shifted to the Assembly on Monday evening, where members were scheduled to at least consider, if not vote on, a deal that reportedly included mention of three water storage projects: Perris, Temperance and Sites Reservoir in Colusa County.

No official version of the plan had been made public by 8 p.m.

Members in both parties questioned the proposal. Senate President Pro Tem Don Perata, D-Oakland, in a memo to Senate Democrats, questioned the need for three dams.

The Assembly plan, he said in the letter, would "allow state taxpayer dollars to be used to subsidize costs that should be borne by private agricultural interests and other large water users ...

Assembly Member Mike Villines, R-Clovis, meanwhile, criticized the plan as paying only "lip service" to water storage projects. He said versions of the plan he had seen would set-aside $500 million that could be split among the three projects. But separate votes would be required after the bond vote to earmark the money for specific uses, he said.

As of midafternoon, he said he planned to vote no, "because the devil's in the details and this to me looks like it's code for no water storage."

The plan was still in flux during the day.

Steven Maviglio, spokesman for Assembly Speaker Fabian N??ez, D-Los Angeles, said Monday evening the plan included $1 billion for above-ground storage and $1 billion for underground storage.

"We think it's what the governor and Democrats were able to settle on as middle ground," he said. "That's what compromise is about."

Though others characterized bond talks as stalled, Maviglio said about 7:30 p.m that a vote would be taken Monday night and that "we're very close, I think."

On the water storage issue, some Valley Democrats appear to be taking the Republicans' side.

Assembly Member Juan Arambula, D-Fresno, for instance, has said the plan must include money for water storage and for Highway 99 to get his support.

The Senate plan includes $750 million for Highway 99.

The Assembly plan includes $1 billion, Maviglio said.

Sen. Dean Florez, D-Shafter, has said money for above-ground storage will be a tough sell for Democrats, so he has pushed for money for below-ground storage facilities, or so-called water banks.

The Friant Water Users Authority and other Valley water officials have lobbied for at least $500 million in state bond money to be dedicated to a dam and reservoir at Temperance Flat.

The approximately $1 billion project would have the capacity for 1.3 million acre-feet of water, more than double the capacity of Millerton Lake, said Mario Santoyo, assistant general manager of the Friant water authority.

The capacity, he said, will be needed to help replenish water supplies that could be lost as a result of restoration of the San Joaquin River.

A legal settlement now under negotiation would refill dried sections of the river by increasing flows from Friant Dam. Water from behind the dam is used by several Valley cities, including Fresno, and many farmers on the San Joaquin Valley's east side.

Lloyd Carter, lawyer and director of conservation group Revive the San Joaquin, said conservation is the answer to the state's water problems, not building more storage.

"There is no water shortage in California. There's just colossal waste," Carter said.

He added that any new state money could be better used, for example, to buy out farmland on the Valley's west side. Parts of the west side are plagued with drainage problems that can contribute to lower crop yields.

"Why don't we quit irrigating these poisonous lands?" Carter asked.

The reporter can be reached at eschultz@fresnobee.com or (916) 326-5541.