Newsom announces new funding boost for Sites Reservoir project

California Governor Gavin Newsom has announced that the Sites Reservoir project will receive an additional $219 million in funding from the California Water Commission. The new funds are intended to address increased costs resulting from delays, inflation, and anticipated construction expenses.

“We can’t wait to protect our state from water shortages – there are 40 million Californians depending on us. I am pleased to see the Sites Reservoir project move forward with additional funding, and urge the Legislature to continue to make our state’s water future a priority. Each day that we delay these projects costs our state more money. The Legislature has an opportunity to make history by fast-tracking critical water infrastructure that will ensure we are resilient against droughts and can continue delivering necessary water – a basic human right — to all Californians,” said Governor Gavin Newsom.

The Sites Reservoir is designed to capture excess water from the Sacramento River during wet periods and store it for use during dry spells. When completed, it will have a capacity of up to 1.5 million acre-feet, which could supply over 4.5 million homes for one year. This project is part of California’s broader strategy to secure its water supply amid increasing climate variability and ongoing drought concerns.

With this latest funding allocation, the Sites Reservoir is now eligible for $1.094 billion in Proposition 1 funds. The total estimated cost of the project stands at approximately $6.8 billion, with about $780 million expected from federal sources.

Governor Newsom has previously taken steps to streamline approval processes for such projects, including measures that helped overcome legal challenges under CEQA (California Environmental Quality Act). More details about the Sites Reservoir initiative are available at build.ca.gov.

The need for expanded storage comes as California experiences greater swings between drought and flood due to a warming climate. A recent State Water Project Adaptation Strategy outlines several actions aimed at protecting California’s water resources through improvements in infrastructure and management.

In addition to advancing the Sites Reservoir, Governor Newsom has proposed legislation to expedite work on another major effort: the Delta Conveyance Project. This initiative aims to enhance reliability in moving water across regions while maintaining environmental protections. According to state officials, if operational during last year’s atmospheric river events, the Delta Conveyance Project could have captured enough water for nearly 9.8 million people’s annual needs.

These efforts form part of a comprehensive approach by state leaders seeking long-term solutions for supplying water to California’s population of roughly 40 million residents.