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California officials alarmed by soaring costs and delays in $2.7B Pacheco Reservoir expansion

Jacob Shelton May 22, 2025

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CORDOBA ANDALUSIA, SPAIN - OCTOBER 23: Detail of the water treatment plant in Belmez, on October 23, 2024 in Cordoba (Andalusia, Spain). The Sierra Boyera reservoir in Cordoba has a water treatment plant that will solve the water supply problems in the province. (Photo By Madero Cubero via Getty Images)

Santa Clara County, California – California state officials are expressing growing alarm over the ballooning costs and persistent delays plaguing the Pacheco Reservoir Expansion Project, a long-anticipated water infrastructure initiative now facing significant hurdles, according to The Mercury News.

Originally estimated at $969 million, the project’s price tag has nearly tripled to $2.7 billion. Despite initial funding commitments made seven years ago, including $504 million in state bond funding, the project has yet to secure key permits, water rights, or even complete half of its design.

The Pacheco Reservoir Expansion, a joint effort by Valley Water, the San Benito County Water District, and the Pacheco Pass Water District, aims to increase water reliability across the region in the face of climate change. The project would construct a 320-foot earthen dam on North Fork Pacheco Creek, boosting the reservoir’s capacity from 5,500 to 140,000 acre-feet—enough to supply 1.4 million residents with water for one year in an emergency.

However, during a meeting of the California Water Commission on Wednesday, members voiced serious doubts about the project’s viability and timeline. They noted that only 30 percent of the design has been completed and that critical permits and water rights remain outstanding.

Commissioner Jose Solorio warned that the state may need to reevaluate its investment. “Maybe down the road we do have to look at ways of lowering investments if there’s not sufficient progress in terms of viability,” he said.

Commissioner Sandra Matsumoto added, “As we move forward in time, the uncertainties should be decreasing. But I feel like the more we hear from the public, the more additional issues are coming up that make it sound less likely.”

Delays have been blamed on legal challenges from environmental groups, inflation, and newly discovered geological issues. Valley Water officials estimate they will have spent $132 million by next year, with 60 percent of the design completed.

Melanie Richardson, interim CEO of Santa Clara Valley Water District, emphasized the project’s importance for emergency preparedness. “It would provide a critical source of emergency storage in the event of an earthquake, a levee failure, or any other catastrophe,” she said.

But environmental advocates remain skeptical. “Valley Water continues to spend millions… on a project that is not feasible,” said Shani Kleinhaus of the Santa Clara Valley Bird Alliance.

Construction is now projected to begin in 2029 and finish by 2036, four years later than originally planned.

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