September 2, 2025 CFSI Staff

California’s Sites Reservoir Project Secures Additional Funding

A major California water infrastructure project advanced this month with the approval of nearly $219 million in additional funding to offset inflation-driven construction cost increases.

The Sites Reservoir project – a proposed off-stream storage facility in the Sacramento Valley – will have a planned capacity of 1.5 million acre-feet of water, making it one of the largest new water storage projects in decades. By capturing excess flows from the Sacramento River during high-water events (after existing rights and environmental requirements are met), the project aims to bolster water supplies for both communities and agriculture.

Importance for Seafood and Food Production

Reliable water infrastructure is a critical factor in sustaining California’s food supply chain, including seafood processing and distribution facilities that rely on stable water access. With 30 local water agencies backing the project, representing millions of Californians and thousands of acres of food-producing farmland, Sites Reservoir is positioned as a key tool in balancing urban, agricultural, and environmental water needs.

Environmental Benefits

As an off-stream reservoir, Sites avoids many of the environmental concerns tied to traditional on-river dams. It will dedicate a portion of stored water to support native fish species, migratory birds, and habitats – a measure of particular relevance to the seafood industry given ongoing pressures on fisheries in the Sacramento-San Joaquin watershed and Delta. By releasing water during drier periods, Sites will also help manage salinity levels in the Delta, benefiting both aquatic life and downstream water quality.

Project Financing and Timeline

  • Total cost: Up to $6.8 billion
  • Proposition 1 funding: $1.094 billion
  • Federal contribution: $780 million
  • Construction start: 2026
  • Operations begin: 2032

For seafood producers, processors, and distributors, the Sites Reservoir represents long-term investment in water reliability, ecosystem support, and food supply stability – all crucial for sustaining California’s seafood economy.

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