Who will pay for the $20 billion water tunnel project in California?
Rising costs have put the project under the microscope for who will have to foot the bill and which communities it will serve.
The California water tunnel project, known as the Delta Conveyance Project or Delta Tunnel, has sparked significant controversy and debate.
Governor Gavin Newsom’s administration has proposed a single giant tunnel, estimated to cost over $20 billion, aimed at capturing more water from the Sacramento River during major storms to better prepare for prolonged droughts exacerbated by climate change.
The project, which would redirect water to Southern California, is part of the State Water Project and is seen as crucial for enhancing water supply resilience in the face of climate challenges.
Who will pay for it?
The initial funding for this ambitious project is set to come from 29 local public water agencies. However, these costs will be offset by potentially higher prices for consumers in future.
The Metropolitan Water District of Southern California (MWD), the largest water wholesaler in the nation, has backed the tunnel project and invested $161 million toward its planning and environmental work in 2020. The MWD would be one of the largest beneficiaries of the tunnel, with an estimated 47% of its share of water.
While the state argues the $38 billion in benefits justify the costs, opponents say the costs should not be put onto Californians. A more realistic estimate is between $50 to $60 billion when all is said and done, according to Restore the Delta.
It’s not just us. Read what all our colleagues have to say about solving water challenges for a lot less money in California and why the tunnel is a bad investment.#MathAintMathing #NoTunnel #cawater #prodelta #prosalmon https://t.co/8IT9AmTEUO
— Restore the Delta (@RestoretheDelta) May 17, 2024
Other concerns with the tunnel plan
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The project faces strong opposition from environmental groups and local communities concerned about its potential adverse impacts on the delicate ecosystem of the Sacramento-San Joaquin River Delta. Critics argue that the tunnel’s construction could lead to lost agricultural land, reduced water quality in the Delta, and negative impacts on air quality and transportation, among other concerns.
“Instead of foisting the costs of this boondoggle project onto Californians, the state should invest in sustainable water solutions that promise to restore the Delta ecosystem, not destroy it,” said Barbara Barrigan-Parilla, executive director of the environmental advocacy group Restore the Delta.