The U.S. Environmental Protection Agency (EPA) has announced a $251 million Water Infrastructure Finance and Innovation Act (WIFIA) loan to the Las Virgenes-Triunfo Public Financing Authority in California to support drinking water treatment improvements and advance water reuse.

The funding will support the Pure Water Project, which will construct an advanced water purification facility to treat recycled water for the Las Virgenes-Conejo region of Los Angeles and Ventura counties. The project is expected to provide the region's first local water supply while increasing capacity and system reliability for approximately 105,000 customers.

The project is designed to reduce reliance on imported water supplies from Northern California while improving drought resilience and emergency response capabilities. EPA said reducing demand on those supplies could also increase water availability for agricultural users in Central California.

The project will advance the goals of EPA's Water Reuse Action Plan 2.0 by applying advanced treatment and purification technologies to create a reliable local source of drinking water. The improvements are also intended to strengthen the region's ability to maintain water supplies during droughts, wildfires and other disruptions.

The WIFIA financing includes deferred principal payments following substantial completion of construction. According to EPA, the financing structure is expected to save the Las Virgenes-Triunfo Public Financing Authority approximately $13.6 million over the life of the loan and reduce impacts on customer water bills.

EPA said the WIFIA program has announced approximately $24 billion in financing for water infrastructure projects since its first loan in 2018.