Newsom administration unveils new $20-billion cost estimate for delta water tunnel

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Newsom administration unveils new $20-billion cost estimate for delta water tunnel
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A new analysis shows that building a California water tunnel would cost $20 billion. State officials say the project's benefits would far outweigh the costs.

Gov. Gavin Newsom’s administration announced that the estimated cost of building a tunnel to transport water beneath the Sacramento-San Joaquin River Delta has risen to $20.1 billion. The estimate is part of a new cost-benefit analysis by the California Department of Water Resources, which concluded that the projected benefits of constructing the water tunnel would far outweigh the costs.

” Nemeth said the analysis shows that doing nothing would mean substantial costs for the state through frequent water shortages, mandatory restrictions in cities, and reductions in agricultural supplies that would force farmers to leave fields dry and fallow. “It is vastly more efficient and economical to avoid declining supplies,” Nemeth said. The costs of the project would be paid for by urban and agricultural water districts that decide to participate.

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