Controversial Water Tunnel Project Funding Doubted by California Court

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A recent California court order has thwarted Governor Gavin Newsom’s plan to build a sizeable subterranean tunnel to reroute much of the state’s water. The argument involves a 1959 law that the Department of Water Resources (DWR) used to justify borrowing billions of dollars for an unnamed “Delta Program.”

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Legal Hurdles Threaten $16 Billion Water Tunnel Project: California Judge Rules Against State’s Ambitious Delta Program

This program proposes a 45-mile, 36-foot-wide tunnel to transfer 161 million gallons of water per minute from the Central Valley to the highly populated south.

The DWR’s resolution was challenged in court by environmental groups and many Central Valley counties, who said it exceeded the 1959 law’s reach. Judge Kenneth C. Mennemeier of Sacramento Superior Court sided with the opposition, arguing that the state’s view of the project allowed unrestrained building, which violated the law. He stated that his finding pertained only to the Newsom administration’s “Delta Program,” as specified in the DWR resolution.

Despite the state’s lack of revised cost projections, the verdict hurts the disputed $16 billion tunnel project. Thomas Keeling, an attorney representing opposing counties and water agencies, underlined the ruling’s significance and the DWR’s possible financial challenges. Although narrow, the decision does not bar the administration from exploring other financing ways.

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DWR Considers Appeal Despite Governor’s Support

Denying the ruling’s implications, the DWR considered appealing. Deputy Director of Communications Margaret Mohr said the judge did not challenge the DWRs to borrow funds. She said the Delta Conveyance Project is essential for California’s water supply plan, tackling seismic concerns, climate change, and more.

Central Valley municipalities have opposed the project for years, fearing it will hurt their economies and the Sacramento-San Joaquin River Delta ecology. The Newsom administration claims the tunnel is needed to update infrastructure and catch more stormwater, but the judicial setback casts doubt on its future. By 2026, the DWR must complete a complex regulatory procedure that includes federal environmental studies and permits.

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