Federal Court Backs Controversial Water Contract Shift in California’s Central Valley

Signed water contract looms over the San Francisco Bay Delta, symbolizing a controversial court ruling that prioritizes agribusiness while threatening the region's fragile ecosystem.
Signed water contract looms over the San Francisco Bay Delta, symbolizing a controversial court ruling that prioritizes agribusiness while threatening the region's fragile ecosystem.

Ruling Exempts Bureau from Environmental Reviews, Sparking Debate Over Water and Wildlife

A federal court ruling on July 14, 2025, upheld the U.S. Bureau of Reclamation’s conversion of temporary water contracts to permanent repayment contracts in California’s Central Valley, bypassing environmental reviews under the National Environmental Policy Act and Endangered Species Act.

U.S. District Judge Jennifer Thurston, a Biden appointee, sided with the Bureau’s interpretation of the 2016 Water Infrastructure Improvements for the Nation Act, which mandates contract conversions upon request and limits agency discretion.

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The decision, announced by Acting Assistant Attorney General Adam Gustafson, benefits agricultural giants like Westlands Water District, allowing faster debt repayment and funding for water storage.

Environmental groups, including the Center for Biological Diversity, argue it locks in water deliveries, threatening the San Francisco Bay Delta’s ecosystem, salmon migration, and public health.

Attorney Bob Wright signaled a potential appeal, highlighting the ruling’s far-reaching environmental stakes.

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