DWR: Validation action filed regarding financing of approved Delta Conveyance Project

From the Department of Water Resources:

The California Department of Water Resources (DWR) filed a “validation action” with the Sacramento County Superior Court regarding DWR’s authority to, among other things, issue <a class="glossaryLink" aria-describedby="tt" data-cmtooltip="

revenue bonds

A <strong>revenue bond</strong> is a municipal bond that is supported by the revenue from a specific project, such as a toll bridge, highway or local stadium. They are used to finance income-producing projects and are secured by that specified revenue source.

” href=”https://mavensnotebook.com/glossary/revenue-bonds/” data-mobile-support=”0″ data-gt-translate-attributes=”[{“attribute”:”data-cmtooltip”, “format”:”html”}]” tabindex=”0″ role=”link”>revenue bonds to finance the planning, design, construction and other capital costs of Delta conveyance facilities, such as the Delta Conveyance Project 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 action is necessary to provide the requisite assurance to the financial community for the sale of revenue bonds.

DWR is pursuing this path in parallel with its appeal of the decision issued in its previous validation action to explore all possible paths to resolve the validation question with expediency.

Background
DWR proposes to issue revenue bonds to raise funds for the environmental review, planning and construction of Delta conveyance facilities.

The validation case will confirm DWR’s authority to use revenue bonds to fund the effort. Bonds for construction will not be issued unless and until specific conditions precedent are satisfied.

DWR derives its authority to issue bonds to finance planning and construction of the State Water Project (SWP) under the following acts of the State legislature: The State Water Resources Development Bond Act of 1959 (Burns Porter Act), California Water Code section 12930 <a class="glossaryLink" aria-describedby="tt" data-cmtooltip="

evapotranspiration

<strong>Evapotranspiration (ET)</strong> is the sum of evaporation and plant transpiration from the land surface to atmosphere. Evaporation accounts for the movement of water to the air from sources such as the soil, canopy interception, and waterbodies.Transpiration accounts for the movement of water within a plant and the subsequent loss of water as vapor through its leaves. Evapotranspiration is an important part of the water cycle.Click here for more on evapotranspiration.

” href=”https://mavensnotebook.com/glossary/evapotranspiration/” data-mobile-support=”0″ data-gt-translate-attributes=”[{“attribute”:”data-cmtooltip”, “format”:”html”}]” tabindex=”0″ role=”link”>et. seq., and the Central Vally Project Act, California Water Code section 11100 et. seq.

As is the case with other revenue bonds issued to finance the SWP, these revenue bonds, if issued, would be repaid by participating SWP contractors.

Other coverage …

CA Department of Water Resources files delta tunnel ‘validation action’ with court

Dan Bacher writes, “On January 7, the California Department of Water Resources (DWR) filed a “validation action” with the Sacramento County Superior Court regarding DWR’s authority to issue revenue bonds to finance the planning, design, construction and other capital costs of Delta conveyance facilities, such as the Delta Conveyance Project DWR approved in December 2023. On January 16 of last year, the Sacramento Superior Court ruled that DWR lacks the authority to issue revenue bonds to finance the embattled Delta Conveyance Project, commonly referred to as the Delta Tunnel. DWR has appealed that decision: sacramento.newsreview.com/… The Delta Tunnel is a project opposed by several California Indian tribes, nearly all environmental groups in the state and beyond, Southern California ratepayers, recreational anglers, commercial fishermen, conservationists, Delta businesses and Southern California water ratepayers. … ” Read more from the Daily Kos.