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The water system in San Jose is one of the largest and most technically sophisticated in the U.S. The leaders of security, business resiliency, and information systems at San Jose Water believe that protecting it from cyber and physical threats is primarily a twofold challenge.
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The additional water storage was to have been shared among residents across the Bay Area in Alameda, Santa Clara and other counties to reduce water shortages during droughts. But the project’s costs have grown steadily, from $980 million in 2018 to nearly $1.6 billion today.
Finally, the eight major water agencies that had formed a partnership to build the project couldn’t agree on which should shoulder the most financial risk and pay for additional cost overruns if they came up. Contra Costa Water District was unwilling to accept much risk, yet still would own and control the reservoir, other partners said.
“The project just is no longer viable,” she added. The failure is a major setback for the eight water agencies — each of which contributed $4.4 million and thousands of hours of staff time.