OLYMPIA — Taking up where her predecessor left off, Gov. Christine Gregoire yesterday designated cleanup of polluted Hood Canal as her first big environmental project.

Gregoire, who once served as state ecology director, announced a nine-point plan to halt human and animal wastes from getting into the scenic canal that is perilously close to becoming a dead zone.

Former Gov. Gary Locke, U.S. Rep. Norm Dicks, the Puget Sound Action Team, tribes, local and federal agencies, the environmental community and others have worked on cleanup of the 60-mile inland waterway for a number of years.

Gregoire made it clear that it's a high priority for her new administration, too. She said it's past time for talking and studying, and time for "on-the-ground action."

She asked lawmakers to approve $5 million to help finance sewer and stormwater projects at Belfair and Hoodsport in Mason County, pay for surveying failing septic systems, provide low-interest loans for property owners to fix failing systems and provide grants for managing animal-waste and salmon-carcass disposal problems.

Gregoire released $40,000 from her emergency fund so Mason County can begin septic surveys next month. Mason, Kitsap and Jefferson counties would share $470,000 for the surveying.

Dissolved oxygen in portions of the canal has reached record-low levels, causing fish kills. One portion already is being described as a dead zone.

"It is a crisis, in my opinion," the governor told a news conference. "It is a crown jewel, but it is in serious danger. We should all be very embarrassed."

Gregoire said natural factors cause part of the problem, but that human activities are much to blame, including septic systems, runoff, livestock manure and salmon carcasses.

Dicks endorsed Gregoire's choice of the canal as an early priority.

"The governor's decisive actions demonstrate a clear commitment to solving the problems that threaten the health and vitality of Hood Canal," Dicks said in a statement released by the Governor's Office. "The state's plan represents a comprehensive approach that continues the important research ... as well as the preliminary remedial efforts that are taking place through the joint efforts of federal, state and local government agencies, as well as the Skokomish Tribe."

Dicks staff member Tom Luce said the congressman will continue championing federal support for research and remediation. State Rep. Bill Eickmeyer, D-Belfair, chairman of the House Select Committee on Hood Canal, said Gregoire's plan dovetails nicely with six bills moving through the Legislature.

Also praising Gregoire was Naki Stevens of People for Puget Sound, a group that works to restore area waters and shoreline.

"We're really pleased she has stepped up to this and not just talked some more about it," she said.

"It really complements everything else that is under way."