Newsom Pushes to Fast-Track $20 Billion Delta Tunnel for California Water

Gov. Gavin Newsom’s revised budget proposal announced Wednesday includes a push to fast-track a contentious tunnel project that could deliver more water from the Sacramento-San Joaquin River Delta to farms and cities throughout the state.

The Delta Conveyance Project has been through many iterations and decades of debate by California lawmakers, going from a proposed canal to two tunnels and now a single tunnel.

Newsom wants the Legislature to adopt his plan to accelerate the $20 billion, 45-mile-long tunnel through the delta by passing bills to simplify permitting, confirm that the Department of Water Resources has the authority to issue bonds to cover the project’s cost, prevent unnecessary litigation delays and support construction.

The governor believes the tunnel is imperative for adapting the state for a hotter and drier climate that could result in 10% less water by the 2040s. But some lawmakers and environmental groups vehemently oppose the idea, saying it will harm fish species, the environment and local economies.

California’s current water system is outdated and unprepared to handle the storms or dry periods of the future, Newsom said, adding that not investing in a new tunnel would cost Californians more in the long run.

The delta tunnel project, he said, could capture additional water during years of excess rain. Had it been operational during atmospheric rivers in 2024, he said the project could have captured enough water for 9.8 million people to use for a year.

“For too long, attempts to modernize our critical water infrastructure have stalled in endless red tape, burdened with unnecessary delay,” Newsom said in a release. “We’re done with barriers — our state needs to complete this project as soon as possible, so that we can better store and manage water to prepare for a hotter, drier future.”

Newsom said the state completed an environmental impact report in 2023 and has gained the support of water agencies across California. But he said the project’s “path forward is burdened by complicated regulatory frameworks and bureaucratic delays.”

His announcement comes as President Donald Trump has called on the state to deliver more water from Northern California to farms and Southern California.

The State Water Project can already capture, move and store enough water to be used by 27 million people and service 750,000 acres of farmland.

The State Water Contractors, a nonprofit representing 27 public water agencies, celebrated Newsom’s idea and said it could reduce administrative delays that would push the project out years, if not decades.

“The Delta Conveyance Project review and approval process has been hampered by red tape and frivolous delay tactics for decades, costing Californians millions of dollars without addressing our very real challenges with water supply reliability,” said Jennifer Pierre, the nonprofit’s general manager.

However, State Sen. Jerry McNerney (D–Pleasanton), co-chair of the California Legislative Delta Caucus, called the plan “poorly conceived” and encouraged the Legislature to reject it. He said the tunnel project would destroy farmland, salmon fisheries and tribal resources.

“Plus, the tunnel’s costs would have to be shouldered by ratepayers who are already overburdened by skyrocketing utility bills,” he said.

Assemblymember Lori Wilson (D-Suisun City), who represents communities throughout the delta, called Newsom’s proposal a “last-ditch effort” to push the project through before his term ends. She said if the plan is approved, it would devastate ecosystems and burden ratepayers.

“This approach threatens the livelihood of our local communities and undermines the sustainability of our regional economy,” she said.

Peter Gleick, co-founder of the Pacific Institute, said in an email he is generally “not a fan of ‘fast tracking’ massive projects that are controversial, costly, and opposed by diverse coalitions and communities.”

California “has many other options for building resilience into our water systems that don’t cost so much money, take so much time and affect so many people,” he said, pointing to conservation efforts, efficiency programs, wastewater reuse, accelerated stormwater capture and updates to agricultural irrigation systems.

Other longtime California water experts were similarly skeptical of the delta tunnel.

Richard Walker, professor emeritus of economic and urban geography at UC Berkeley, called the project a “terrible idea” and a tactic to deliver more water to the agricultural sector.

“It’s just a pipe dream,” he said. “It’s a lousy idea and everybody knows it who has wits in their head and who isn’t beholden to agribusiness and developers. Well, guess who’s beholden to agribusiness and developers? Governor Newsom.”

Scott Artis, executive director of the Golden State Salmon Association, called Newsom’s proposal “an attack on the salmon fishing industry and the state’s biggest rivers.”

“At the end of the day, this proposal is a nail in the coffin of California’s once mighty salmon runs, a stake in the heart of the Delta, and a raid on the pocketbooks of the people of Southern California and Silicon Valley,” Artis said.