MWD faces warnings of $60B Delta Conveyance price tag as DCA advances real estate and permitting

MWD faces warnings of $60B Delta Conveyance price tag as DCA advances real estate and permittingDuring a brief Imported Water subcommittee meeting, Metropolitan Water District directors heard stark stakeholder warnings over escalating Delta Conveyance costs, while officials confirmed upcoming state testimonies to secure necessary diversion rights.

Advocacy group Restore the Delta warned MWD that independent economic analyses project the Delta Conveyance Project could cost at least $60 billion due to inflation.

The Delta Conveyance Design and Construction Authority (DCA) approved contract extensions for three real estate services consultants.

The Department of Water Resources is preparing to testify before the State Water Board regarding changes to points of diversion for the project.

The committee entered closed session to discuss anticipated litigation over Colorado River water rights, taking no formal action.

The Metropolitan Water District of Southern California (MWD) is facing renewed stakeholder pressure to scrutinize the financial realities of the proposed Delta Conveyance Project. During the February 24 meeting of the Subcommittee on Imported Water, advocacy group Restore the Delta urged directors to conduct independent cost and water yield analyses rather than relying solely on figures from the Department of Water Resources (DWR). During the public comment period, Restore the Delta representative Barbara Barragan-Perea cited independent economic forecasts projecting that the conveyance project's construction costs could reach a minimum of $60 billion, and potentially up to $100 billion when factoring in historical mega-project overruns, inflation, and ecological impacts. This represents a sharp increase from the state's official $20.1 billion estimate based on 2023 dollars. To contextualize the scale, a $60 billion price tag would rival California's entire $77 billion backlog of unmet statewide water infrastructure needs. Critics argue these funds would be better spent on cheaper alternatives like the $4 billion to $5 billion Sites Reservoir, water recycling, and groundwater storage. Barragan-Perea also voiced support for SB 827, a bill aimed at funding inner Delta levee improvements to protect long-term water supplies. Despite the cost warnings, administrative and regulatory work on the conveyance project continues to advance. Director Garza reported that the Delta Conveyance Design and Construction Authority (DCA) recently extended real estate services contracts with Associated Right-of-Way Services, Hamner, Jewell and Associates, and Bender Rosenthal. Furthermore, the DWR's Environmental Manager is scheduled to provide oral testimony at upcoming State Water Board hearings regarding changes to points of diversion, as well as participate in Delta Stewardship Council hearings on Delta Plan consistency appeals. The subcommittee also convened in closed session to discuss anticipated litigation strategies concerning MWD's Colorado River water rights and negotiations, though no final action was reported.