FOR IMMEDIATE RELEASE
August 25, 2025
Contact:
Ashley Castaneda, ashley@restorethedelta.org, 209-936-0901
DWR Push for Unlimited Bonding Authority and MWD’s Leadership Choice Undermine Public Accountability
Stockton, CA – Restore the Delta has obtained troubling details regarding the California Department of Water Resources’ (DWR) pursuit of financing authority for the Delta Conveyance Project (“DCP”), and urges accountability, oversight and due process in these efforts.
In order to secure financing for the Delta Conveyance Project, DWR has sought authority to issue bonds for the Delta Conveyance Project by integrating the DCP into the current bonding system for the State Water Project. To obtain this authority, DWR must “validate” their ability to issue bonds through legal pathways, referred to as a bond validation suit.
Several problems exist with the bonding, including the proposal for uncapped revenue pledged, the lack of a repayment timeline, and the plan to integrate this debt into the broader State Water Project. The plan would fold this new debt into the broader SWP system, threatening the fiscal integrity of one of California’s most critical water conveyance systems.
These actions carry significant risk for both ratepayers and taxpayers. In January 2024, a court ruled that DWR did not have unlimited bonding authority. Despite this, DWR continues to operate under the pretense that this authority will be granted. Adding to these concerns, the Governor and DWR is planning to reintroduce the DCP fast-tracking trailer bill, which would circumvent this judicial review and grant DWR unlimited authority to issue bonds with no clear repayment timeline.
Compounding these concerns is the lack of financial transparency. DWR is obligated to submit an annual comprehensive financial report for SWP bond repayment. Historically, these reports have been published each June 30. However, as of today, the fiscal year 2025 report has not been made available.
At the same time, Metropolitan Water District of Southern California (MWD) is preparing to move forward with the selection of a new General Manager on August 26, 2025. The General Manager oversees operations, strategic planning, and finances of the largest water wholesaler in California. One of the reported frontrunners includes Karla Nemeth, Director of the Department of Water Resources and an outspoken supporter of the widely opposed Delta Conveyance Project.
This selection process has occurred quietly behind closed doors, without public input or oversight, and appears to be directly tied to securing Metropolitan’s continued funding of the DCP.
“Ratepayers and taxpayers deserve leaders who are transparent and accountable,” continued Barrigan-Parrilla. “It is unacceptable for MWD to consider a candidate who has withheld financial disclosures, opposed independent audits, and attempted to circumvent both public opinion and the courts in pursuit of the Delta Conveyance Project.”
Restore the Delta calls on state and local water leaders to halt efforts to fast-track Delta Conveyance financing and to ensure Metropolitan’s General Manager selection process includes full public transparency and accountability.
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