In 1988 a public law authorized the Secretary of the Interior to construct a concrete-lined canal parallel to a portion of the existing earthen All American Canal and to concrete line portions of the earthen Coachella Canal. It also authorized the Secretary to enter into a construction or funding agreement with one or more of the California contractors holding a delivery contract for Colorado River water.
Reclamation released a revised and updated Draft Environmental Impact Statement/Environmental Impact Report (EIS/EIR) for the Coachella Canal Lining Project in September 2000. The preferred alternative is to build a lined canal in the existing cross section (while bypassing the canal flow using temporary pipelines). This alternative was estimated to conserve 26,000 acre-feet per year.
The Bureau of Reclamation also released the final EIS/EIR for the All American Canal Lining Project in March 1994. The preferred alternative is the construction of a 23-mile parallel concrete-lined canal which is estimated to conserve 67,700 acre-feet per year.
In September 1998, the Governor signed a Senate Bill that authorized the appropriation of $235 million from the State general fund to assist with the implementation of California’s Colorado River Water Use Plan. The bill allocates $200 million for lining portions of the All American and Coachella canals and $35 million for conjunctive use programs for the benefit of Metropolitan Water District's member agencies.