Newsom’s Signature Water Tunnel Is Set Back by California Court Ruling

In a decision that could complicate Gov. Gavin Newsom’s push to build a giant water tunnel and remake California’s water system, a state appeals court has rejected the state’s plan for financing the project.

The 3rd District Court of Appeal ruled against the state Department of Water Resources’ plan to issue billions of dollars in bonds to build the 45-mile tunnel beneath the Sacramento-San Joaquin River Delta.