From the Department of Water Resources:
The California Department of Water Resources (DWR) filed a “validation action” with the Sacramento County Superior Court regarding DWR’s authority to, among other things, issue revenue bonds to finance the planning, design, construction and other capital costs of Delta conveyance facilities, such as the Delta Conveyance Project DWR approved in December 2023. Although DWR has existing legal authority to finance and construct the proposed project under the Central Valley Project Act, a validation action is necessary to provide the requisite assurance to the financial community for the sale of revenue bonds.
DWR is pursuing this path in parallel with its appeal of the decision issued in its previous validation action to explore all possible paths to resolve the validation question with expediency.
Background
DWR proposes to issue revenue bonds to raise funds for the environmental review, planning and construction of Delta conveyance facilities.
The validation case will confirm DWR’s authority to use revenue bonds to fund the effort. Bonds for construction will not be issued unless and until specific conditions precedent are satisfied.
DWR derives its authority to issue bonds to finance planning and construction of the State Water Project (SWP) under the following acts of the State legislature: The State Water Resources Development Bond Act of 1959 (Burns Porter Act), California Water Code section 12930 et. seq., and the Central Vally Project Act, California Water Code section 11100 et. seq.
As is the case with other revenue bonds issued to finance the SWP, these revenue bonds, if issued, would be repaid by participating SWP contractors.
Other coverage …
CA Department of Water Resources files delta tunnel ‘validation action’ with court
Dan Bacher writes, “On January 7, the California Department of Water Resources (DWR) filed a “validation action” with the Sacramento County Superior Court regarding DWR’s authority to issue revenue bonds to finance the planning, design, construction and other capital costs of Delta conveyance facilities, such as the Delta Conveyance Project DWR approved in December 2023. On January 16 of last year, the Sacramento Superior Court ruled that DWR lacks the authority to issue revenue bonds to finance the embattled Delta Conveyance Project, commonly referred to as the Delta Tunnel. DWR has appealed that decision: sacramento.newsreview.com/… The Delta Tunnel is a project opposed by several California Indian tribes, nearly all environmental groups in the state and beyond, Southern California ratepayers, recreational anglers, commercial fishermen, conservationists, Delta businesses and Southern California water ratepayers. … ” Read more from the Daily Kos.
CDWR Complaint Efiled EndorsedFrom the archives …
This is not the first time DWR has filed this action. Here’s an archive of coverage of the bond validation action:

DWR issues an official notification of validation action for Delta Conveyance Program bond financing
From the Department of Water Resources: The Department of Water Resources (DWR) has issued a Notice of Validation Action for Delta Conveyance Program bond financing. This provides an official notification of the “validation action” DWR filed with the Sacramento County Superior Court in January regarding DWR’s authority to, among other things, issue revenue bonds to finance the planning, design, construction and other capital costs of Delta conveyance facilities, such as the Delta Conveyance Project DWR approved in December 2023. Read the […]

DWR: Validation action filed regarding financing of approved Delta Conveyance Project
From the Department of Water Resources: The California Department of Water Resources (DWR) filed a “validation action” with the Sacramento County Superior Court regarding DWR’s authority to, among other things, issue revenue bonds to finance the planning, design, construction and other capital costs of Delta conveyance facilities, such as the Delta Conveyance Project DWR approved in December 2023. Although DWR has existing legal authority to finance and construct the proposed project under the Central Valley Project Act, a validation action […]

SJV WATER: Court ruling against bond financing for controversial Delta tunnel won’t impede project, state says
By Jesse Vad, SJV Water A recent court ruling may have thrown a wrench in the state’s funding plans for the controversial and expensive Delta Conveyance Project – a tunnel to move Sacramento River water 45 miles beneath the ecologically sensitive Sacramento-San Joaquin Delta. In January, the Sacramento Superior Court denied the state Department of Water Resources’ (DWR) request to finance the project through bonds. Tunnel opponents hailed the ruling as a blow to the project. But state staff say […]

COURTHOUSE NEWS: California judge rules state can’t issue bonds to finance Delta tunnel project
The so-called “Delta Conveyance Project” would include a 36-foot wide tunnel extending about 45 miles to divert enough water from the Sacramento River for 5.2 million people to use. By Alan Riquelmy, Courthouse News Service The controversial Delta Conveyance Project took a major financial hit this week, after a Sacramento County judge ruled California can’t issue bonds to fund the project. Sacramento County Superior Court Judge Kenneth C. Mennemeier issued a narrow ruling Tuesday about the bonds for the project, […]

THIS JUST IN … Court sides with counties and agencies, dismissing DWR’s attempt to “validate” bond resolutions to finance controversial Delta tunnel project
Press release on behalf of the counties of San Joaquin, Contra Costa, Solano, Yolo, Butte and Plumas, and related water agencies On January 16, 2024, the Sacramento County Superior Court denied the Department of Water Resources’ (DWR) request for an order “validating” bond resolutions that would have financed the Delta Tunnel project known as the Delta Conveyance Project (DCP). Like its failed predecessors, the DCP would divert water from the Sacramento River near the Delta communities of Hood and Courtland […]