Projected Economic Benefits of the Northern Pipeline
Northern Pipeline investment could support construction work and recurring regional employment through operations, supplier purchases, and household spending, according to Greene Economics.
Greene Economics projects Northern Pipeline investment would generate construction work and recurring economic activity across San Bernardino, Kern, and Riverside counties. For the Mojave Groundwater Bank, a water supply and groundwater storage project involving Cadiz, the study estimates 46–56 regional jobs and approximately $17 to $21 million in annual economic output during long-term pipeline operations. Operating expenditures, supplier purchases, and household spending drive those projected benefits.
Summary
- Greene Economics projects employment and economic activity from Northern Pipeline conversion and operations across San Bernardino, Kern, and Riverside counties.
- Northern Pipeline construction could support an average of 1,089 regional jobs annually over two years, including supplier and household-spending effects, according to Greene Economics.
- During Northern Pipeline operations, Greene Economics estimates 46–56 regional jobs annually, including direct, indirect, and induced employment effects.
- Northern Pipeline investment would support work at the project and spending with regional suppliers and businesses.
Construction Investment Creates Demand for Regional Work
The construction and job estimates build on the Northern Pipeline’s existing steel pipe. The study assumes two years of investment in supporting facilities, including booster pumping stations, energy facilities, pipeline cleaning and inspection, and associated engineering and management. Existing pipe would also be rehabilitated and replaced in certain locations where needed.
The Greene Economics study estimates an average of 1,089 regional jobs annually over two construction years. That estimate includes direct project-related work and additional employment supported by supplier demand and household spending.
Northern Pipeline Operations Are Projected to Support Long-Term Regional Jobs
Greene Economics projects 46–56 jobs annually from Northern Pipeline operations across San Bernardino, Kern, and Riverside counties. This estimate includes people working in activities directly connected with operations and employment supported elsewhere in the regional economy.
The model’s direct component is 19–23 jobs, including onsite pipeline staff and jobs supporting the natural-gas energy needed for operations. Suppliers and household spending created by operations support the remaining projected jobs.
The low and high operational estimates reflect scenarios using operating costs 10 percent below and above the base estimate.
Supplier Purchases Extend the Pipeline’s Economic Contribution
Regional suppliers and household purchases account for part of the Northern Pipeline’s projected economic contribution. Greene Economics uses the IMPLAN regional economic model to estimate three related effects:
- Direct effects: Employment and activity connected with the project, including construction, engineering, planning, management, and operational support.
- Indirect effects: Activity among regional businesses supplying goods and services to those project-related activities.
- Induced effects: Activity supported when workers spend income earned through the direct and indirect work.
Together, these categories explain why the study’s regional employment totals exceed its direct-job estimates. The regional total captures this broader employment contribution; it is not a Cadiz hiring target.
For operations, the study estimates approximately $17 million–$21 million in annual regional economic output. Output measures modeled economic activity; it is not the same as wages paid to workers, project profit, or cash distributed to local governments.
Project Investment Funds the Work Behind Regional Jobs
Engineering, equipment purchases, and construction turn project investment into regional work. The Northern Pipeline federal review describes the conversion facilities, and the July 2026 BLM decision approved water conveyance across BLM-managed lands. Greene Economics used expenditure inputs supplied by Fenner Gap Mutual Water Company to estimate the jobs and economic activity associated with Northern Pipeline construction and operations.
The Lytton Rancheria investment provides for up to $51 million in financing for Mojave Groundwater Bank development and construction, including equipment deposits. Cadiz plans to combine additional equity with grants, municipal financing, and low-interest debt. In February 2026, EPA selected the Northern Pipeline project to apply for WIFIA financing of up to $194 million.
Greene Economics evaluated the Northern Pipeline conversion and operations. A separate 2011 economic impact report by Dr. John Husing evaluated the broader conservation and storage project then proposed, including the Southern Pipeline connection to the Colorado River Aqueduct. It estimated approximately $878 million in economic activity and 5,986 job-years over four years of design and construction. A job-year represents one year of employment.
Northern Pipeline’s Projected Benefits Extend Beyond Construction
The Northern Pipeline’s economic contribution would continue after construction through operating work, supplier purchases, and spending by workers’ households. Greene Economics projects that this recurring activity would support 46–56 regional jobs and approximately $17 to $21 million in annual economic output across San Bernardino, Kern, and Riverside counties. Investment in the Mojave Groundwater Bank’s Northern Pipeline would support both the work of converting existing infrastructure and the regional businesses involved in its ongoing operation.
Frequently Asked Questions
Which Counties Does the Economic Study Cover?
The Greene Economics study models Northern Pipeline conversion and operating effects across San Bernardino, Kern, and Riverside counties in California. Its employment and economic-output estimates describe that combined region.
Are the Projected Operational Jobs All Onsite Positions?
No. Greene Economics’ estimate of 46–56 annual jobs from Northern Pipeline operations includes direct, indirect, and induced regional effects. The direct component includes energy-related employment as well as project operations, so even that smaller category is broader than onsite pipeline staffing.
How Many Construction Jobs Could the Northern Pipeline Support?
Greene Economics estimates an average of 1,089 regional jobs annually over two years of Northern Pipeline construction. The estimates reflect anticipated spending over two construction years and include direct project work, supplier activity, and household spending.
What Does the Northern Pipeline Economic Study Cover?
Greene Economics evaluates Northern Pipeline conversion and operations, including supporting facilities. Its estimates exclude other pipelines and wellfield infrastructure. A separate 2011 study by Dr. John Husing estimated approximately $878 million in economic activity and 5,986 job-years over four years of design and construction for the broader project then proposed, including the Southern Pipeline connection to the Colorado River Aqueduct.
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