Delta Conveyance Project Benefit-Cost Analysis (2024) evaluates the economic justification for modernizing California’s State Water Project through a new conveyance tunnel in the Sacramento–San Joaquin Delta. The analysis compares the project against a “no-project” scenario under future climate change, sea-level rise, and seismic risks.
The study estimates a benefit-cost ratio of about 2.2, meaning benefits are more than double the costs, with total benefits of roughly $38 billion. Key benefits include improved water supply reliability, reduced shortages, enhanced water quality, and resilience to earthquakes and climate impacts.
Costs include capital construction, long-term operation and maintenance, and residual environmental impacts over a 100-year lifecycle.
Overall, the analysis concludes the project is economically viable and critical for sustaining water supply for millions of users and supporting long-term economic stability.
