Legal Blow to Giant Water Tunnel Project: California Court Ruling Threatens Vital Funding Source

A California judge’s ruling threatens a significant financing source for Governor Gavin Newsom’s controversial water project. The judge found that a 60-year-old law did not allow the state to borrow billions for a massive water project. This ruling threatens funding for the controversial plan to reroute a large portion of the state’s water supply through a vast underground tunnel.

Photo from Truthout

Legal Setback: California Judge Questions Funding for State’s Massive Water Tunnel Project

DWR approved a 2020 resolution to borrow money for an unnamed “Delta Program.” A 1959 legislation allowed State Water Project adjustments; thus, the agency claimed it could do so without parliamentary approval.

Environmental groups and Central Valley counties said the resolution was too broad. DWR’s latest tunnel project breached the law’s scope, they said. The 45-mile, 36-foot-wide tunnel will transport 161 million gallons of water per minute from the Central Valley to the highly populated south.

After years of litigation, Sacramento Superior Court Judge Kenneth C. Mennemeier sided with the counties, ruling that the state’s project definition permitted them to build anything they wanted, breaching the statute. The judge limited his finding to the DWR resolution’s “Delta Program” by the Newsom administration.

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California Water Tunnel Project Faces Finance Questions After Court Ruling

Project opponents praised the verdict as a tunnel finance setback. The state still needs to update the $16 billion project cost estimate. DWR downplayed the ruling, saying it disagreed and may appeal. The department underlined that the judge’s judgment focused on the broad” Delta Program’s comprehensive term, not DWR’s power to build or borrow monies.

While the ruling may not preclude other financing methods, opponents emphasize its importance and expect DWR to need help getting tunnel money. The Newsom administration touts the tunnel as a crucial improvement to old infrastructure that improves water capture during severe rainstorms. At the same time, Central Valley residents have long opposed it due to economic and ecological concerns.

The project’s fate is still being determined due to a federal environmental evaluation and state and federal permits until 2026. Governor Newsom supports the contentious water tunnel project, notwithstanding the judgment.

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