C-WIN Submits Damning Testimony on the DCP
FOR IMMEDIATE RELEASE
Project is Overvalued, Under-Analyzed, and a Massive Blow to Ratepayers and the Environment
The California Water Impact Network has submitted written testimony and a detailed report to a State Water Board hearing excoriating Governor Newsom’s proposed Delta Water Conveyance Project (DCP).
“Our testimony and full report were prepared by ECOnorthwest, a leading environmental economics research firm, and it documents how the DCP simply doesn’t pencil out,” said Carolee Krieger, C-WIN’s executive director. “ECONorthwest estimates that if it ends up getting built, the DCP could cost anywhere from $60 to over $100 billion.” That is 3-5 times higher than the approximately $20 billion that the Department of Water Resources has been falsely claiming.
“Like the MAGA budget, the DCP represents a massive transfer of money from working Americans to powerful corporations and wealthy plutocrats,” said Gomberg. “The DCP will basically exist to provide guaranteed revenues for Southern California water agencies and to maximize profits for almond and pistachio producers in Kern County, with most of the costs borne by Southern California ratepayers and taxpayers. Their children and grandchildren will still be paying the interest and operating costs of this massive boondoggle decades from now.”
The ECONorthwest testimony, prepared by Dr. Mark Buckley, details multiple flaws with the DCP, including:
Cost Overruns and Affordability
The Oroville spillway restoration was supposed to cost $200 million. It ended up costing $1.1 billion – 450% higher. Estimated costs for the California High Speed Rail were $33 billion, with real costs now standing at about $128 billion and rising. DWR’s low-ball cost estimate for the DCP similarly fails to account for multiple sources of uncertainty and financial risks. With inevitable cost overruns and water rates rising quickly, the DCP could force many households, both urban and rural, to choose between paying for water and other basic needs.
Opportunity Costs
A project that could end up costing well over $60 billion negates the possibility of other investments in conservation, local supplies such as recycled water and stormwater capture, and retirement of agricultural land.
Overestimated Municipal Water Demand
Urban water use is steadily declining as Californians become more waterwise. Moreover, California’s population growth is slowing in part due to climate change-induced cost of living impacts, including increased insurance rates. The cherry-picked forecast water demand scenario used to justify the DCP therefore has no basis in reality.
Fishery Collapse
Economic losses from salmon fishery impacts would range between present value $1.1 and $2.6 billion over the lifetime of the DCP.
The ECOnorthwest report also documents flaws in DWR’s assessment of seismic benefits and agricultural impacts, further undermining their justifications for the DCP.
“It is time to put this fever dream to bed and the ECONorthwest report proves why,” said Gomberg.
Read the full testimony and report.
CONTACT
Max Gomberg
maxgombergca@gmail.com
Christina Speed
C-WIN Communications Director
info.cwin@gmail.com
www.c-win.org
The California Water Impact Network is a state-wide organization that advocates for the equitable and sustainable use of California’s freshwater resources for all Californians.