Governor and legislators reach deal on budget package with Delta Tunnel language removed

Governor Gavin Newsom, Senate President pro Tempore Toni G. Atkins, and Assembly Speaker Anthony Rendon on the evening of June 26 reached an agreement on the 2023-24 state budget that excludes the 45 mile-long Delta Tunnel project from the trailer bill language.

Neither Newsom or Atkins mentioned the removal of the Delta Tunnel language in their comments upon the reaching the deal, even though it was the most controversial legislation in the package.

“In the face of continued global economic uncertainty, this budget increases our fiscal discipline by growing our budget reserves to a record $38 billion, while preserving historic investments in public education, health care, climate, and public safety,” said Governor Gavin Newsom in a statement. “We’ve attached new accountability measures for transit and homelessness investments. And we are accelerating our global leadership on climate by fast-tracking the clean energy projects that will create cleaner air for generations to come.” 

“We started our budget process this time around with tough economic challenges, but one overarching goal: to protect California’s progress,” said Senate President pro Tempore Toni G. Atkins (D-San Diego). “This budget does exactly that — it allows us to close the budget gap, make targeted new investments, and provide services and resources for Californians and our communities without cuts to core programs or dipping into our reserves, and in fact builds those reserves.”

Responding to the reaching of the agreement, Barbara Barrigan-Parrilla, Executive Director of Restore the Delta, stated, “We are pleased the tunnel was removed from the Design and Build trailer bill, and that the trailer bill for changing voting quorums for the Delta Stewardship Council was dropped. However, this play by the Governor makes it clear that he and DWR will seek to change any rules to move the tunnel forward while excluding the region.”

“It is time for him and DWR to drop the project and to get busy on meaningful reforms and projects to restore the Delta and secure California’s water future,” she emphasized. 

She also thanked Senator Susan Eggman and Assemblyman Carlos Villapudua for their hard work on removing the Delta Tunnel language from Governor Newsom’s trailer bills. 

Attorney Osha Meserve, a long time opponent of the Delta Tunnel project, said the language in the final trailer bill language “appears to eliminate any benefit to the Delta Tunnel.” 

“The fact that the governor would try to change environmental laws to expedite the construction of the Delta Tunnel shows what a loser project it,” Meserve commented.  

Deirdre Des Jardins of California Water Research says she is glad that the language for the trailer bills exempts the Delta Tunnel from the streamlining provision. However, she noted that the streamlining provisions still do apply to the Proposition 1 funded projects and many infrastructure projects.

“Oxford researcher Bent Flyvbjerg has found that infrastructure projects have predictable management biases, including optimism bias, overconfidence bias, and strategic misrepresentation,” said Des Jardins. “If you like the High Speed Rail project, then you'll love the infrastructure projects built with the Governor's streamlining.” 

Gia Moreno, a Chicana and Native American grassroots activist against the Delta Tunnel from Hood, ground zero for the project’s construction, is also relieved that tunnel language was removed from the trailer bills. However, she remains very concerned about the Governor’s continued push for the project. 

“I was really concerned about Newsom’s attempt to jam the trailer bills through and to take out environmental protections in regard to the tunnel  and also other future projects because we don’t know what the consequences will be in the future,” said Moreno, who was on the Delta Conveyance Authority Stakeholder Engagement Committee before it was disbanded. “It looks very much like Governor Newsom, the Delta Conveyance Authority and DWR are not looking to the future, but are instead just looking at their immediate wants.” 

“It appears like they’re rushing the project through and are winging it because when we ask them questions about the consequences of the project on communities like Hood, they don’t always have answers. When we ask them questions about what happens if the levees next to the intakes break or if the tunnel cracks, they keep reiterating that it won’t happen without considering any plans for if there is a failure,” Moreno concluded. 

Legislative opponents of the tunnel project were also glad the Delta Conveyance Project was removed. 

“The tunnel idea has consistently failed and if tried again, it will fail again,” said Senator Susan Eggman (SD 5). “It’s time to bury the Delta tunnel idea once and for all.” 

Assemblymember Carlos Villapudua (AD 13) stated, “I’m grateful for the tremendous efforts of the Legislature and the Delta Caucus to find common ground with the Administration on a budget that advances important causes while protecting our beautiful Delta. Supporting this delicate ecosystem has been, and will always be, a top priority of mine.” 

The Delta Conveyance Project would divert water from the Sacramento River in the North Delta at Hood before it flows through the Delta to export to agribusiness operations in the San Joaquin Valley and Southern California water agencies. Independent scientists, Tribal leaders and fish advocates say the construction of the underground tunnel would drive already imperiled populations of salmon, steelhead and other fish species closer to extinction.

Environmental justice advocates on Friday said they were “profoundly disappointed” with the passage of the Governor’s trailer bill, SB 149.

“SB 149 allows streamlined approval of projects without meaningful ways for communities to exercise their judicial right to combat potentially harmful projects,” according to a statement by the Center on Race, Poverty and the Environment. “Policies such as these put environmental justice communities at a disadvantage, weakening their primarlly tool to combat projects that could detrimentally impact their public health, safety and well being. We want to thank our legislative allies for working with EJ groups to help mitigate or negate environmental and public health impacts in disadvantaged communities.”

Although the Delta Tunnel language was removed, environmental justice advocates said they were “profoundly disappointed” with the passage of the Governor’s trailer bill, SB 149 on June 30.

“SB 149 allows streamlined approval of projects without meaningful ways for communities to exercise their judicial right to combat potentially harmful projects,” according to a statement by the Center on Race, Poverty and the Environment. “Policies such as these put environmental justice communities at a disadvantage, weakening their primarlly tool to combat projects that could detrimentally impact their public health, safety and well being. We want to thank our legislative allies for working with EJ groups to help mitigate or negate environmental and public health impacts in disadvantaged communities.”

The agreement included support for the associated budget trailer and the following policy bills:

AB 122 – Joshua Tree (Committee on Budget)
AB 124 – Green Bank and Energy (Committee on Budget)
AB 126 – Clean transportation (Reyes)
SB 145 – Caltrans Advanced Mitigation and I-15 Wildlife Crossings (Newman)
SB 146 – Progressive Design Build, Job Order Contracting, NEPA Assignment (Gonzalez and Friedman)
SB 147 – Fully Protected Species (Ashby)
SB 149 – Expedited Judicial Review, Administrative Record Reform (Caballero and Becker)
SB 150 – Equity (Durazo, Smallwood Cuevas, Gonzalez, Cortese, and L. Rivas)
In a tweet, Delta United posted the new #Budget Trailer bills that were posted last night. As these were just posted, they cannot be voted on today, but it could be as soon as Friday.

Many political insiders believe that Governor Newsom attempted to ram through his last minute legislative language to expedite the construction of the Delta Tunnel and other water and infrastructure projects in order to serve the wishes of his agribusiness, building industry, real estate and other Big Money donors.

For example, Stewart and Lynda Resnick, billionaire agribusiness tycoons and major promoters of the Delta Tunnel and increased water pumping from the Sacramento-San Joaquin River Delta, have donated a total of $431,600 to Governor Gavin Newsom since 2018, including $250,000 to Stop The Republican Recall Of Governor Newsom and $64,800 to Newsom For California Governor 2022.

Newsom received a total of $755,198 in donations from agribusiness in the 2018 election cycle, based on the data from http://www.followthemoney.org. That figure includes a combined $116,800 from Stewart and Lynda Resnick and $58,400 from E.J. Gallo, combined with $579,998 in the agriculture donations category.