By Fritz Durst, Chair, Sites Authority Board of Directors
and Robert Kunde, Chair, Reservoir Committee
In 2025, the Sites Reservoir Project emerged as one of the state’s most rapidly advancing water‑storage initiatives. Building on a strong foundation of milestones over the past few years, we advanced permitting, funding, contracting, and other key planning objectives—each one an essential component to moving the Project toward construction and delivering a 21st‑century, climate‑resilient water storage solution for all of California. As we look back on the progress we made in 2025, we are energized about the big milestones ahead in 2026.
Launched Construction Procurement
To kick off the year, we launched a competitive procurement process to select a Construction Manager at Risk (CMAR) to construct the up to $3 billion reservoir and roads package. A short list of qualified respondents was asked to submit detailed proposals and participate in interviews with the Authority and after a rigorous selection process, we selected Barnard Construction Company, Inc. for the first, pre-construction planning contract.
Expanded Federal Investment
There continues to be strong, bipartisan support for Sites Reservoir. The Project was allocated $129 million through the Department of the Interior and $134 million from the Water Infrastructure Improvements for the Nation Act (WIIN Act). With this investment, the Project has received a total of $798 million in federal contributions to date. It also brings the Bureau of Reclamation closer to achieving their 16% participation goal.
Awarded Additional Prop 1 Funding
Over the summer, the California Water Commission unanimously approved an additional $218.9 million in inflationary funding for Sites Reservoir, making the Project eligible for up to $1.094 billion in Water Storage Investment Program (WSIP) funding. The Project also received $10.9 million in early WSIP funding to support the Authority’s work on permitting and environmental documents, which helps meet the public benefit requirements of Proposition 1. Both decisions represent confidence in the significant progress being made to begin construction in late 2026 and be operational by the end of 2033.
Secured Key Permits
While our permitting process is not complete, we are encouraged that we received three key project permits in the last year:
- The Construction Biological and Conference Opinion from the U.S. Fish & Wildlife Service that analyzes potential impacts of the Project on federally listed endangered and threatened species
- The Master Streambed Alteration Agreement issued by the California Department of Fish and Wildlife, a key permit required to modify local waterways in the construction site
- The Section 106 Programmatic Agreement under the National Historic Preservation Act, which analyzes the Project’s impact on historic properties
Progressed in the Water Right Process
The Authority continued its efforts to secure a water right through the water right hearing process with the State Water Resources Control Board (State Board). Public hearings concluded in June, and the Authority provided additional information requested in October by the State Board Administrative Hearing Officer (AHO). We hope the AHO will issue a draft water right order early in 2026, which will then be passed to the State Board for consideration.
Advanced the WIFIA Loan Process
The Authority continued to collaborate with the U.S. Environmental Protection Agency on documents for their Water Infrastructure Finance and Innovation Act (WIFIA) loan, including advancing our financing strategy by issuing an Interim Funding Program Request for Qualifications (RFQ) for upcoming design and construction phases, which has attracted strong interest from a broad range of firms for interim financing.
Advanced Agreements with Local Partners
Our local collaboration remains strong, too. The Authority worked with representatives from Glenn, Colusa, and Yolo counties to draft Developer Agreements that standardize work across the Project area and Impact Alleviation Agreements to avoid or mitigate potential community impacts. In collaboration with participants, the Authority advanced multiple drafts of the contracts that help move the Project from planning to construction. We also advanced local Facility Use Agreements with Glenn-Colusa Irrigation District and the Tehama-Colusa Canal Authority.
Established a Construction Workforce Policy
As we move toward construction, the Authority developed a Construction Workforce Policy that acknowledges the shared interests between the local community, labor interests, and the Authority. As part of the CMAR procurement process, the policy establishes expectations for workforce hiring, temporary housing during construction, and considerations for agricultural needs. It recognizes the longstanding relationships among local communities, contractors, and labor partners, and aims to align shared interests to support a construction program built on collaboration, stability, and a skilled regional workforce.
Purchased Critical Land
The Authority purchased more than 1,260 acres of land in critical areas for upcoming pre-construction activities. This is in addition to the more than 800 acres purchased last year and the more than 180 acres in negotiation. Ultimately, the Authority will need to purchase about 15,000 acres of land in the Project area.
Looking Ahead in 2026
We’re ready and eager to build on the progress made in 2025 and continue collaboration with regional and statewide partners to advance Sites Reservoir to construction. In the coming year, we will focus on securing our water right and remaining permits, onboarding our selected Reservoir and Roads CMAR contractor, selecting a Conveyance CMAR contractor, completing additional real estate acquisitions, preparing for the start of construction, and advancing contracts to participants that help move the Project from planning to construction. Each milestone brings us closer to delivering a 21st century reservoir that will provide water reliability, operational flexibility, and environmental benefits for generations to come.
For the latest updates, please visit sitesproject.org.
January 2026 began with a major milestone for the Sites Reservoir Project: the U.S. Bureau of Reclamation issued a Record of Decision, confirming the Project’s compliance with the National Environmental Policy Act. This federal approval marks a significant step forward, reinforcing the Project’s readiness to move through final planning and toward construction.
To learn more, see the following releases:
- Sites Project Authority | Press Release
- Department of the Interior | Press Release
- Northern California Water | Press Release
