Since construction on the Anderson Dam Tunnel Project started in June 2022, Valley Water has achieved several key goals for this important public safety and water supply project. In September 2023, Valley Water released the Draft Environmental Impact Report (EIR) for the Anderson Dam Seismic Retrofit Project, which is necessary to obtain the required permits. In June 2024, Valley Water released a Partially Recirculated Draft EIR with updated information.
And in September 2024, our crews finished excavating a 1,736-foot-long tunnel next to Anderson Dam. The new, larger tunnel will help Valley Water release more water from the reservoir during an emergency.
Valley Water has also made significant progress in designing the retrofit project, securing environmental permitting and selecting a contractor. These steps are essential and must be finalized before construction begins.
However, Valley Water is facing challenges that will delay the start of construction of the retrofit project at Anderson Dam by a little less than one year. This means the phase to rebuild the dam will begin in January 2027 instead of April 2026.
The Federal Energy Regulatory Commission recently issued a new schedule for completing a required environmental document, which will extend the timeline by at least three months. As a result, construction will start about one year later, as crucial earthwork must be completed during the dry months, so rainfall does not impact the work areas at the base of the dam.
While this delay may be disappointing, it is also not uncommon for massive infrastructure projects such as this. It is imperative that we take the time necessary to do this project right, which is important for public safety and our local water supply.
Our agency anticipates that costs will rise by approximately $100 million due to estimated inflation caused by the delay. Cost increases also are not uncommon when large infrastructure projects experience delays. That being said, Valley Water will continue to look for ways to reduce costs on this project, such as pursuing grant funding and seeking cost-effective technical solutions with our project partners.
Building large water storage projects in California is difficult, but we are pleased with the progress we’ve made so far. We must continue to invest in updating our aging infrastructure for public safety and water supply needs to ensure it can continue to provide safe, clean water to Santa Clara County for our kids and grandkids.

Totally ridiculous that this takes 10 years to complete…and meanwhile it will be a good reason to continue to have water rates go up because of perceived ‘scarcity’ and of course additional costs as already mentioned in the article. Just like the BART extension to downtown SJ with its continuous delays, this is an example of government inefficiency and a lack of checks and balances due to the 1-party California state.
100 million is an enormous amount of money. Way beyond your explanation. I demand an audit. I call shenanigans.
$100M sounds like a lot of money for a 3-month delay that turns into almost a year due to when work can be scheduled. At first blush, I question the government’s decision to incur these additional costs. Money is not free. Tax-payers are on the hook to pay for this. What exactly is so important that we would all be willing to pay an additional $100M for this project? Can someone explain what exactly we are paying for here?
Such delays may be “not uncommon,” but still it’s a pathetic waste of $100 million so that the blood sucking lawyers and environmental engineering and consulting firms can feast on this project for another year. suggest appealing to the new administration to cut the delaying regulations to keep the project on schedule.
This explanation creates more questions than it answers. I think more specifics are needed. Which environmental document’s schedule got extended by three months? And for what purpose? Why does a three month extension for document completion translate into a nine month delay in construction? And I’m wondering why the EPA isn’t in charge if that environmental document rather that the Energy Commission.
In October, the Federal Energy Regulatory Commission (FERC) announced plans to prepare an Environmental Impact Statement (EIS) to meet federal environmental compliance requirements. This process is essential to support the issuance of a conditional surrender order for our project.
Unfortunately, FERC’s timeline for completing the EIS means that the order will be delayed by approximately three months. While this may seem like a short delay, it impacts the construction schedule significantly. The shorter timeframe would prevent us from completing necessary in-water work in the first year, effectively pushing the project timeline back by an entire year.
With respect to FERC’s oversight of the project, rather than the EPA, FERC is responsible for overseeing dams with hydroelectric power generation and issuing surrender licenses. When a project owner decides to discontinue hydropower operations, they must apply to FERC for a surrender license. Valley Water is working with FERC, and other state and federal regulatory partners, on the successful completion of the project.
We remain committed to moving this project forward and will continue to work closely with FERC to minimize delays and ensure compliance with all environmental requirements.
It sounds like the delays and increased costs are norm for such projects because there’s someone (the tax payers) sitting out there to pay for such increases. If the increased money had to come from the Valley Water District board and the management pockets would it happen?
Just checked my water rates based on the rate for the radiation problem Dec but these under /January usage,
2014 $3.50/CCF
2020 $10/CCF +$250%
2025 $15.01/CCF. +50%
Valley Water,
Thank you for all your hard work. I really appreciate the safe tap water, flood control, seismic retrofitting, concern for the natural world, courteous and helpful public-facers, confident and positive news voice and long-suffering.
Thank you so much for doing what I could not begin to do. For millions of us.
I especially appreciate care, attention to detail and wanting to get things right at the beginning. Not many public-servant projects around here are more important than keeping Anderson Reservoir from flooding us. Or than keeping us in clean water. (Everybody read HOW BIG THINGS GET DONE by Bent Flyvbjerg.)
Thanks again.
God help you.