Tuesday May 21, 2024
SJV Water —
The controversial Delta Conveyance Project will cost $20.1 billion according to a new cost-benefit analysis released by the state on Thursday. That’s up from the previous cost projection of $16 billion.
Almost all of that increase is because of inflation, said David Sunding, emeritus professor at UC Berkeley, who led the benefit-cost analysis, in a media briefing.
The benefits will likely far outweigh the costs, said Sunding. For every $1 spent, $2.20 will be generated by the project, according to the analysis.
The Delta Tunnel would take Sacramento River water beneath the Sacramento-San Joaquin Delta to thirsty towns and farms further south and relies on the end users footing the bill. The Department of Water Resources (DWR) is the agency overseeing the project.
The tunnel would also help to maintain water operations in the case of an earthquake, said Sunding. An earthquake along one of California’s major faults could significantly impact the State Water Project and the delta in which case the new tunnel would compensate for those losses.