"A California appeals court has thrown a new complication in the way of the state's plan to build a 45-mile water tunnel in the Sacramento-San Joaquin River Delta. The court rejected the state Department of Water Resources' plan to issue bonds to pay for construction. Opponents of the tunnel project say the decision is a significant win. But the Newsom administration has another court case pending seeking to validate the state's authority to issue bonds."
"Kirsten Macintyre, a spokesperson for the department, said the court didn't say the Department of Water Resources lacks the authority to build the project or borrow funds to pay for it, but rather that the description the state presented in the case was "overly broad." "While DWR respectfully disagrees with that conclusion, we have taken additional steps to resolve the issue," she said in an email."
A California appeals court rejected the Department of Water Resources' plan to issue bonds to finance a 45-mile tunnel beneath the Sacramento-San Joaquin River Delta. The 3rd District Court of Appeal upheld a 2024 Sacramento County Superior Court ruling that the water agency lacked authority under a 1959 law to issue bonds for a new "unit" of the State Water Project and that it exceeded its delegated authority by planning to finance the tunnel through bonds. Opponents called the ruling a win for ratepayers and taxpayers. The department said the ruling did not deny authority to build or borrow but labeled the state's description overly broad and said it is taking additional steps; a separate validating court case remains pending.
Read at Los Angeles Times
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