The U.S. Environmental Protection Agency has announced a $170 million Water Infrastructure Finance and Innovation Act loan to Poseidon Resources in San Diego County, California, to support its Carlsbad Desalination Plant Intake Modification and Wetlands Project, which will help provide sustainable access to drinking water.
The U.S. Environmental Protection Agency has awarded a $170 million low-interest loan to reduce financing costs for environmental upgrades that enhance the Claude “Bud” Lewis Carlsbad Desalination Plant. U.S. Rep. Mike Levin, who represents coastal communities including Carlsbad, helped secure the funds that will save ratepayers up to $54 million compared to alternate financing strategies.
“As we continue to confront increasingly frequent and intense droughts, today’s announcement is an exciting step in our efforts to provide sustainable, reliable water supplies for San Diego County,” said Rep. Mike Levin. “This low-interest federal loan will not only allow the Carlsbad Desalination Plant to improve its efficiency and environmental practices but will also save local water ratepayers tens of millions of dollars. I will never stop fighting to improve our region’s water security at the most affordable price for ratepayers.”
This is great news!
As we continue to confront increasingly frequent and intense droughts, today’s announcement is an exciting step in our efforts to provide sustainable, reliable water supplies for San Diego County. https://t.co/OH6l76KZT2
— Rep. Mike Levin (@RepMikeLevin) March 24, 2023
The loan, from the federal Water Infrastructure Finance and Innovation Act (WIFIA), will help Poseidon Resources (Channelside) LP continue to provide local, sustainable, drought-proof water to the San Diego County Water Authority and its 24 member agencies while reducing costs of the current intake modification project.
“Saving ratepayers money while enhancing environmental protections is solid gold,” said Water Authority Board Chair Mel Katz. “The team effort between Poseidon, the Water Authority and Congressman Levin illustrates our commitment to find cost savings wherever we can while continuing to provide safe and reliable water supplies for our region.”
The San Diego County Water Authority added desalinated seawater to its supply portfolio in 2015 with the start of commercial operations at the nation’s largest seawater desalination plant. Photo: San Diego County Water Authority
The Carlsbad Desalination Plant is the largest, most technologically advanced and energy-efficient desalination plant in the nation, and it has produced more than 100 billion gallons of drinking water for San Diego County since operations began in December 2015.
“Since the beginning, Poseidon Resources’ mission has been to provide high-quality drinking water and a long-term sustainable solution for San Diego County while protecting ratepayers,” said Sachin Chawla, president of Poseidon Resources. “This infusion of low-interest capital and close partnerships with U.S. EPA and the Water Authority will further support modernizing Carlsbad’s Desalination Plant for future generations.”
Reverse osmosis is the heart of the Carlsbad Desalination Plant. During this process, dissolved salt and other minerals are separated from the water, making it fit for consumption. This reverse osmosis building contains more than 2,000 pressure vessels housing more than 16,000 reverse osmosis membranes. Photo: San Diego County Water Authority
The new intake and discharge facilities at the Carlsbad Desalination Plant will ensure the plant continues to meet California’s stringent Ocean Plan standards for protecting marine life. Work started in January 2023 and the new facilities are anticipated to be operational by December 2024. Except for a planned plant outage required near the end of the project to connect the new facilities to the existing intake system, construction is not expected to impact water production.
Diversifying and stretching precious water supplies is essential in the water scarce West.
EPA's # WIFIA loan to @CarlsbadDesal will upgrade the drinking water desalination plant to help address water shortages and protect critical marine habitats in the San Diego Bay. pic.twitter.com/NzMEXucb2Z
— U.S. EPA Water (@EPAwater) March 23, 2023
“Diversifying and stretching precious water supplies is essential in the water scarce West,” said EPA Assistant Administrator for Water Radhika Fox. “Our WIFIA loan to Poseidon Resources in San Diego County will be used for both upgrading the drinking water desalination plant to help address water shortages, stretch precious water supplies, and protect critical marine habitats in the San Diego Bay.”
Established by the Water Infrastructure Finance and Innovation Act of 2014, the WIFIA program is a federal loan and guarantee program administered by EPA. The WIFIA program’s aim is to accelerate investment in the nation’s water infrastructure by providing long-term, low-cost supplemental credit assistance for regionally and nationally significant projects.
The WIFIA program has an active pipeline of pending applications for projects that will result in billions of dollars in water infrastructure investment and thousands of jobs. With this WIFIA loan closing, EPA has announced 101 WIFIA loans that are providing $17 billion in credit assistance to help finance $37 billion for water infrastructure while creating 125,000 jobs and saving ratepayers over $5 billion.
Nearly a decade on, the Claude “Bud” Lewis Carlsbad Desalination Plant is a model of success not only for seawater reverse osmosis but also for visionary problem-solving.@WaterOnline https://t.co/ttXQvZQw1m#desalination @sdcwa #cawater #WaterResilience pic.twitter.com/ct0aQ3tKEX
— San Diego County Water Authority (@sdcwa) March 11, 2023
Four projects are being added to a waitlist as well. According to the EPA, as funds become available, $6.7 billion in WIFIA loans will help finance over $15 billion in water infrastructure projects to protect public health and water quality across 24 states.
“Far too many communities still face significant water challenges, making these transformative investments in water infrastructure so crucial,” said EPA Administrator Michael S. Regan in the EPA news release. “The WIFIA invited projects will deliver major benefits like the creation of good-paying jobs and the safeguarding of public health, especially in underserved and under-resourced communities. This program is a shining example of the public health and economic opportunities that will be achieved under President Biden’s Bipartisan Infrastructure Law.”
Mayor Todd Gloria, along with state and federal leaders, formally kicked off construction of Phase 1 of the city’s Pure Water program August 20. The project is intended to provide nearly 50% of the city’s drinking water by 2035 and reduce the need for imported water.
Helping the mayor celebrate the historic occasion in University City were Rep. Scott Peters, California Senate President Pro Tempore Toni G. Atkins, Environmental Protection Agency Administrator Michael S. Regan and California State Water Resources Control Board Chair E. Joaquin Esquivel.
The WIFIA Loan Program recently announced that it has reset the interest rates on two undrawn loan commitments originally made in mid-2018. The fixed rate on a $135 million loan to Orange County Water District and a $614 million loan to San Diego Public Facilities Financing Authority were reset downward from about 3.1 percent and 3.3 percent, respectively, to around 1 percent, reflecting the steady decline in the Treasury curve since the loans’ first-rate setting.
The U.S. Environmental Protection Agency has announced a $108 million Water Infrastructure Finance and Innovation Act (WIFIA) loan to the Stockton Public Financing Authority to help modernize the city’s wastewater treatment facility and reduce nitrogen discharges to the San Joaquin River. With this loan, EPA is supporting a regionally significant project that will improve water quality and support public health and the economies of the California Delta.
The City of San Diego announced Thursday it has refinanced a loan with the U.S. Environmental Protection Agency that city leaders say will save $293 million for taxpayers as the public utilities department begins work on Pure Water San Diego — the largest infrastructure project in the city’s history.
Oceanside has been awarded a $69 million loan to help finance the innovative Pure Water project that broke ground with a ceremony at the San Luis Rey Valley site in February.
The Water Infrastructure Finance and Innovation loan from the federal Environmental Protection Agency will cover nearly half of the project’s $158 million costs, city officials said. The 1.2 percent interest rate is expected to save an estimated $24 million over typical market financing costs.
The WIFIA Improvement Act of 2020 was recently introduced as a means for helping provide support for public water projects. The bipartisan legislation would make changes to the Water Infrastructure Finance and Innovation Act of 2014. The amendments would make water projects eligible for low-interest federal loans from the U.S. Environmental Protection Agency.
The U.S. EPA’s Water Infrastructure Finance and Innovation Act Loan Program was enacted in 2014 and became operational in 2017. WIFIA has now completed three solicitation rounds over the period 2017-2019, generating 90 competitively selected applications totaling $13.6 billion of loan volume, of which more than $5 billion has been closed.
The Water News Network is San Diego County’s source for water news and information.
