From the Ministry of Water Resources:
The California Department of Water Resources (DWR) filed a “validation complaint” in Sacramento County Superior Court regarding DWR's authority to, among other things, issue revenue bonds to finance the planning, design, construction and other capital costs of Delta production facilities . B. the Delta Conveyance Project, which the DWR approved in December 2023. Although DWR has existing legal authority to finance and construct the proposed project under the Central Valley Project Act, a validation measure is required to provide the necessary certainty of the financial community for the sale of revenue bonds.
DWR is pursuing this path in parallel with its appeal of the decision in its previous validation action to consider all possible avenues to expediently resolve the validation issue.
background
DWR proposes to issue revenue bonds to raise funds for environmental assessment, planning and construction of Delta production facilities.
The validation case will confirm DWR's authority to use fiscal bonds to fund the effort. Construction bonds are only issued when certain conditions precedent are met.
DWR derives its authority to issue bonds to finance the design and construction of the State Water Project (SWP) from the following laws of the State Legislature: the State Water Resources Development Bond Act of 1959 (Burns Porter Act), California Water Code Section 12930 et seq. et seq. and the Central Vally Project Act, California Water Code Section 11100 et seq. seq.
As with other revenue bonds issued to finance the SWP, these revenue bonds, if issued, would be repaid by participating SWP contractors.
Other insurance cover…
The California Department of Water Resources files a “validation lawsuit” for the Delta Tunnel in court
Dan Bacher writes: “On January 7, the California Department of Water Resources (DWR) filed a “validation action” in Sacramento County Superior Court regarding the DWR’s authority to issue tax bonds to cover planning, design, construction and other capital costs Funding Delta conveyances, such as the Delta Conveyance Project DWR, were approved in December 2023. On January 16 of last year, the Sacramento Superior Court ruled that DWR did not have the authority to issue tax bonds to finance the controversial Delta Conveyance Project, commonly referred to as the Delta Tunnel. DWR has appealed this decision: sacramento.newsreview.com/… The Delta Tunnel is a project opposed by several California Indian tribes, nearly every environmental group in the state and beyond, Southern California taxpayers, recreational anglers, commercial fishermen, conservationists and Delta – Businesses and water ratepayers in Southern California. …” Read more in Daily Kos.
