California's water tunnel to cost $20 billion. State officials say the benefits are worth it

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California Gov. Gavin Newsom's administration says it will cost more than $20 billion to build a giant tunnel to capture and store more water. Newsom inherited the project and changed it to be one big tunnel instead of two smaller ones. The new estimate released Thursday said Newsom's project would cost $20.1 billion.

FILE - A ship moves through the Sacramento-San Joaquin River Delta near Bethel Island, Calif., March 12, 2008. California Gov. Gavin Newsom ’s administration now says it will cost more than $20 billion to build a giant tunnel so the state can catch more water when it rains and store it to better prepare for longer droughts caused by climate change. FILE – A sign opposing a plan to build a giant tunnel to ship water to Southern California is displayed near Freeport, California , May 2, 2016.

Despite that rosy outlook, the tunnel remains one of the most controversial projects in recent memory. Environmental groups say its construction would have devastating impacts on the already vanishing ecosystem of the Sacramento-San Joaquin River Delta, the largest estuary on the West Coast that is home to endangered species of salmon and other fish.

State officials note the project now includes $200 million for grants to fund local projects in areas impacted by construction. Climate change is threatening that supply. A recent drought saw the three direst years on record, which dropped reservoirs around the state toand prompted mandatory rationing and even caused some hydroelectric power plants to shut down. State officials predict that by 2070 State Water Project deliveries will decline by 22% because of climate change.

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