On Monday, the state water board announced that the Sites Reservoir project in Northern California did not receive federal approval.

However, the board noted that this setback is not permanent and can be addressed, Courthouse News Service reported.

The U.S. Army Corps of Engineers’ rejection adds to the hurdles faced by the $4 billion project, which is designed to capture water during the rainy season.

The reservoir is intended to hold up to 1.5 million acre-feet of water, enough to supply 3 million homes annually.

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Denial Stems from Document Disputes

The denial resulted from ongoing document disputes among the State Water Resources Control Board, Sites Project Authority, and the Corps of Engineers. The decision, effective Monday, follows a letter sent by the water board to the Sites Authority.

According to the water board, the certification application was denied without prejudice. The board stated, “State water board staff will continue to review plans and materials, and work with (the corps) and the authority towards the goal of expeditiously acting on the request for certification for this project once a subsequent certification application is received.”

The Sites Authority’s water quality certification request, submitted in March, was initially deemed pending by the water board. The corps requested additional information in April, including compliance documentation with the Endangered Species Act and other regulations.

By May, the corps had withdrawn the request due to insufficient information and notified the water board in July.

Despite the denial, the authority can still provide the required documents to the corps, potentially allowing for a decision without restarting the permit process.

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Previous Controversy Regarding Sites Reservoir Project

The Sites Reservoir project has previously faced controversy, with environmental groups suing in 2023 over concerns about impacts on the Sacramento River ecosystem and greenhouse gas emissions. The project was expedited by a law signed by Gov. Gavin Newsom in 2023, aiming to resolve environmental challenges within 270 days.

A judge ruled in favor of the project in June.

It remains unclear how Monday’s decision affects the project’s timeline, which originally planned for permitting to extend into next year, construction to begin in 2026, and full operations by 2032.

Other water projects in California also face challenges, including a ruling in June against the state’s Delta water conveyance tunnel project.

This ruling halted exploratory work until the certification process is completed and is currently under appeal.

Read more at Courthouse News Service.