EPA announces $388M WIFIA loan for water reuse in San Diego County

June 4, 2021
East County Joint Powers Authority's Advanced Water Purification Project will produce purified water to meet up to 30 percent of East County’s drinking water demand, increasing reliability in the drought-prone region.

SANTEE, CA -- U.S. Environmental Protection Agency (EPA) Principal Deputy Assistant Administrator Radhika Fox announced a $388 million Water Infrastructure Finance and Innovation Act (WIFIA) loan to the East County Joint Powers Authority for its Advanced Water Purification Project. With EPA’s WIFIA loan, this innovative project will produce purified water to meet up to 30 percent of East County’s drinking water demand, increasing reliability in the drought-stressed region, while saving East County millions of dollars.

“EPA is proud to partner on this project, which uses proven technology to bolster drinking water supplies in this climate-stressed region,” said EPA’s Principal Deputy Assistant Administrator for Water Radhika Fox. “Water infrastructure is one of the best investments we can make to improve public health and the environment, create jobs, and address pressing challenges that face our communities.”

The Advanced Water Purification Project will create a new, local, sustainable drinking water source to reduce the region’s dependence on water imported from out of state and increase climate resilience. The project treats East County’s wastewater for reuse by producing purified water that is sent to the Lake Jennings Reservoir, the county’s local drinking water supply source. When fully operational, the project will treat up to 16 million gallons of wastewater per day. 

“The East County Advanced Water Purification Program is unique and forward thinking in so many ways,” said East County Chair and City of El Cajon Councilmember Steve Gobel. “One reason in particular is the unprecedented collaboration of four East San Diego County entities which have come together with the common goal of water reliability at a competitive cost to imported water and the treatment of wastewater. The low-cost WIFIA loan is instrumental in enabling this important Program to make financial sense to achieve these goals for the residents and communities we serve.”

“The East County Advanced Water Purification Program is an investment to stabilize East County’s drinking water and wastewater rates while also safe-guarding our future generations by ensuring they have a clean, pure, reliable and high-quality drinking water supply that is local, reliable, safe, drought-proof and environmentally sound,” said East County Program Administrator and Padre Dam Municipal Water District CEO/General Manager Allen Carlisle.

This project will cost $791 million and EPA’s WIFIA loan will finance nearly half of that figure, saving East County an estimated $140 million that supports stable water utility rates for customers. Project construction and operation are expected to create an estimated 2,500 local jobs.

With this WIFIA loan closing, EPA has announced 51 WIFIA loans that are providing nearly $10 billion in credit assistance to help finance almost $21 billion for water infrastructure while creating approximately 51,000 jobs and saving ratepayers nearly $4.5 billion. On March 31, 2021, President Biden announced the American Jobs Plan, which proposes to build on successful water infrastructure programs by investing an unprecedented $111 billion in water infrastructure. 

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