Community Corner

San Mateo: Clean Water Program Earns Multi Million-Dollar EPA Loan Approval

Construction on the state-of-the-art treatment plant began in September 2019 and is expected to conclude in 2024.

October 20, 2020

Ratepayers benefit from Federal financing, tens of millions in interest saved

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SAN MATEO, Calif. – The City of San Mateo, in partnership with Foster City, has succeeded in its application for a $277 million Water Infrastructure Finance and Innovation Act loan from the U.S. Environmental Protection Agency to support the Clean Water Program.

The Clean Water Program is a $1 billion, 10-year capital infrastructure improvement program to repair, replace, and upgrade aging sewage conveyance and wastewater treatment infrastructure, serving approximately 170,000 residents in San Mateo, Foster City, Crystal Springs County Sanitation District, and portions of Hillsborough, Belmont, and San Mateo County. This infrastructure improvement program will help ensure heavy rainstorms don’t contaminate San Mateo’s streets, creeks, lagoons, beaches, and ultimately, San Francisco Bay.

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The WIFIA loan will save residents and ratepayers up to $55.4 million in interest costs as the loan will fund nearly half of the critical upgrades and expansion of San Mateo’s wastewater treatment plant.

On Monday, Oct. 19, 2020, San Mateo City Council gave staff approval to proceed with the finalization of the loan agreement. A second WIFIA loan offer from the EPA of $85 million is still being considered.

The Clean Water Program, San Mateo Public Works Department’s largest initiative, is one of only six programs in the Bay Area, and 39 such programs across the country, shortlisted for the federal WIFIA loan. The loan will help to pay for the modernization of the City’s wastewater treatment plant, which will improve the quality of water discharged into the San Francisco Bay. Construction on the state-of-the-art treatment plant began in September 2019 and is expected to conclude in 2024.

“As we sought funding solutions for our $1 billion program, the WIFIA funding became vital to our funding structure and we are thankful for the encouragement from our City Council and the advocacy of our federal partners to see it through,” said Brad Underwood, San Mateo’s Public Works director.

To view the complete council agenda item, visit: City Council Oct. 19, 2020

About the Clean Water Program

The Clean Water Program is a comprehensive plan to upgrade San Mateo’s wastewater collection system and wastewater treatment plant to provide reliable service for years to come.

The $1 billion initiative launched in 2015 to modernize the San Mateo sewer system, a response to a Cease and Desist Order from the State of California mandating a sewer system upgrade to eliminate sewer overflows from entering the San Francisco Bay.

The Clean Water Program is intended to meet the following goals: to replace the aging pipes and facilities that have reached or are nearing their lifespan of 50-60 years; to meet current and future regulatory requirements and increase system capacity during heavy rains; and to align with long-term sustainability goals. Improvements to the wastewater treatment plant and sewer collection system will protect public health and the health of San Francisco Bay.

Visit the Clean Water Program website for more information.

About WIFIA

Established by the Water Infrastructure Finance and Innovation Act of 2014, the WIFIA program is a federal loan and guarantee program at the EPA that aims to accelerate investment in the nation’s water infrastructure by providing long-term, low-cost supplemental credit assistance for regionally- and nationally-significant projects.

EPA’s WIFIA loans allow large and small communities across the country to implement projects to address two national water priorities – providing for clean and safe drinking water, including reducing exposure to lead and other contaminants, and addressing aging infrastructure.

According to the EPA's estimate of national drinking water and wastewater needs, more than $743 billion is needed for water infrastructure improvements. The EPA’s WIFIA program plays an important part in fulfilling this need and in the President’s Infrastructure Plan, which calls for expanding project eligibility.

Visit the WIFIA website for more information about the program.

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This press release was produced by the City of San Mateo. The views expressed here are the author’s own.

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