Important News

Interior approves Record of Decision for Sites Reservoir, authorizes Reclamation cost share for California water storage

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Key takeaways

  • The Department of the Interior approved the Record of Decision for the Sites Reservoir Project (01/23/2026).
  • The Bureau of Reclamation is authorized to provide up to 25% of the total cost for the 1.5 million acre-foot off‑stream reservoir near Maxwell, west of the Sacramento River.
  • The project is intended to capture and store water during wet periods for use in dry years to support communities, agriculture, and the environment.
  • The decision is tied to Executive Order 14181; Interior says operational changes tied to the order delivered more than 200,000 acre‑feet of additional water to the Central Valley Project within one year.
  • The Record of Decision finalizes Reclamation’s selected alternative from the environmental review and allows the agency to proceed consistent with applicable federal laws and regulations.
  • Interior says the decision follows years of technical studies, public input, and coordination with state, local, and tribal partners.

Follow Up Questions

What does Executive Order 14181 require and how does it change federal water project decision-making?Expand

Executive Order 14181 directs multiple Cabinet secretaries to prioritize expanding water supplies for California by maximizing deliveries from federal and state projects. It directs the Secretary of the Interior (through the Bureau of Reclamation) and the Secretary of Commerce to override activities that “unduly burden” increased deliveries, to operate the Central Valley Project (CVP) to deliver more water and hydropower to “high‑need communities,” and to expedite or revise ESA (Section 7) and NEPA procedures (including seeking exemptions) to speed projects and approvals. In practice it elevates delivery and storage as administration priorities, authorizes issuance of new Records of Decision, and directs officials to identify and remove regulatory hurdles—effectively shifting federal decision‑making toward faster, delivery‑focused actions subject to applicable law and appropriations.

What is the Bureau of Reclamation and what does authorizing "up to 25% of the total cost" mean for who pays and how the project is financed?Expand

The Bureau of Reclamation (USBR) is an Interior Department agency that builds and operates large western U.S. water projects (dams, reservoirs, canals, hydroelectric plants) and delivers water for irrigation, municipal, and power uses. DOI’s announcement authorizes Reclamation to contribute up to 25% of the Sites Reservoir project’s total cost—meaning the federal share is capped at 25% but requires specific appropriations and a formal cost‑share agreement. The remaining ~75% would be expected from non‑federal partners (state, local water agencies, or project sponsors) under repayment and funding arrangements; federal authorization does not itself obligate payment until funds are appropriated and contracts are executed.

What is an "off‑stream" reservoir and how does Sites Reservoir operate differently from a conventional on‑river dam?Expand

An “off‑stream” reservoir stores water away from the main river channel (typically in a separate basin) that is filled by pumping or diverting water during high flows and released later for use. Sites Reservoir will be off‑stream west of the Sacramento River and is operated by capturing wet‑period flows (or conveyed water) into its basin, then releasing or conveying water to users in dry periods—unlike an on‑river dam that impounds and releases flows directly on the river channel and more directly changes river hydrology and timing.

What is the Central Valley Project and how would additional water from Sites be allocated among communities, agriculture, and environmental uses?Expand

The Central Valley Project (CVP) is the federal water project managed by the Bureau of Reclamation that stores and conveys water across California’s Central Valley to farms, cities, and other users and produces hydropower. How Sites water would be allocated depends on contracts, state and federal water law, and project operating rules: typically a mix of firm contract holders (irrigation districts, water agencies), municipal and industrial contractors, and environmental/instream flows. Allocation rules would be set in project contracts, Reclamation’s operating plans and the Project’s ROD; environmental flows and regulatory limits (state water quality and ESA constraints) also affect deliveries.

What environmental reviews, permits, or legal challenges remain before construction can begin, and what is the expected timeline?Expand

The Sites ROD finalizes the preferred alternative from Reclamation’s environmental review, but construction cannot start until remaining permits, financing, and any appeals or litigation are resolved. Pending actions typically include required federal and state permits, local approvals, final design and construction contracts, and Congressional appropriations for federal share. The DOI press release and Reclamation’s materials do not give a fixed construction start date; Reclamation news indicates continued coordination and that work will proceed consistent with federal law, but an exact timeline depends on funding, permits, and possible legal challenges.

How were state, local, and tribal partners consulted during the project's review, and what additional approvals or funding commitments are needed from them?Expand

Interior and Reclamation say the Sites review included years of technical studies, public input, and coordination with state, local, and tribal partners. Reclamation’s NEPA process and project documents list public comment periods, tribal consultations, and coordination with State agencies; further approvals or funding needed include final cost‑share agreements, state and local permits, and commitments from non‑federal sponsors to fund the project’s non‑federal share.

What are the estimated total project costs, who is expected to cover the remaining funding share, and how will water operations and governance be managed once the reservoir is built?Expand

DOI’s press release did not state a single total project cost; independent project documents and Reclamation materials have previously estimated Sites capital costs in the multi‑billion‑dollar range. DOI authorized up to 25% federal cost‑share; the remaining share is expected from state/local project sponsors and other non‑federal partners under cost‑share agreements and contract commitments. Operations and governance would be set by Reclamation’s contracts, the project’s operating plan and ROD, and joint operating agreements with state and local agencies—allocations and long‑term governance typically involve a board of project partners, water‑service contracts, and Reclamation oversight.

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