State investment guards water supplies against extreme weather
$590 million in grants and loans boost eight major water infrastructure projects serving over 1 million people across California
SACRAMENTO - Fortified by state investment to strengthen and expand California’s water infrastructure, eight major, state-funded projects completed or broke ground across California in just the past three months—including water recycling, wastewater treatment and desalination facilities—that benefit over 1 million people. Collectively, the projects add about 2.9 billion gallons annually to the state’s water supplies, enough water for roughly 20,000 homes per year.
The State Water Resources Control Board provided nearly $590 million in grants and low-interest loans for these projects, nearly 37% of their total cost. Over $470 million of this support was made available through the Clean Water and Drinking Water State Revolving Funds, major financing instruments that combine state and federal dollars for water infrastructure investments nationwide.
The projects improve local water systems across California to increase wastewater recycling, keep sewage away from groundwater, remove forever chemicals from drinking water and desalinate brackish river water.
These recent infrastructure achievements illustrate how the state is advancing greater water security and resilience to climate change through sustained investment, year on year. During the past fiscal year alone (July 1, 2024 to June 30, 2025), the State Water Board invested $2 billion to support new projects in 390 communities. When these projects complete in the years to come, they will benefit nearly half the state’s population.
Since 2019, the board has distributed over $11 billion in financial assistance.
“As we build the water and wastewater infrastructure California needs to prepare for a hotter, drier climate with more extreme weather, state investment is accelerating projects in large towns and cities, as well as small, rural communities,” said State Water Board Chairman, E. Joaquin Esquivel. “Major state and federal infrastructure commitments in recent years have enabled the board to offer significant levels of grants and low-interest financing that keep vital projects affordable. The board will continue to act as the engine for distributing these investments year on year, so communities will have the water they need in the future.”
San Luis Obispo
In October, the city of San Luis Obispo finished the wastewater upgrade of its Water Resource Recovery Facility.
More information on the permitting process and access to related documents can be found on the regional board’s program page.
The upgrade replaced aging equipment and improved secondary treatment and disinfection technologies to meet state and federal standards.
Benefit: 46,000 people receive improved wastewater services.
State Water Board support: $140 million, low-interest loan
“The SLO Water Plus project is the largest capital improvement the city has ever undertaken, and the State Water Board’s financing and technical support were instrumental,” said Miguel Barcenas, the city’s Utilities Deputy Director. “The low-interest loan is keeping our wastewater rates low, lower than expected.”
With the Cerro San Luis Obispo Mountain in background, the existing 1945 sewer treatment plant is on the right, and on the left is the construction of the new SLO facility with new membrane bioreactor.
Monterey Peninsula
In October, Monterey One Water opened the Advanced Water Purification Facility, which will add 2,250 acre feet of recycled water per year to water supplies on the Monterey Peninsula, enough to serve 6,750 households.
Benefit: 92,000 people enjoy the security and broader rate distribution of a water system with greater capacity.
State Water Board support: $15 million grant
San Francisco
In September, the San Francisco Public Utilities Commission completed the new Headworks Facility as part of critical upgrades to San Francisco’s largest wastewater treatment facility, the Southeast Treatment Plant. The new facility keeps odors within the plant and increases the plant’s capacity to manage extreme weather events.
Benefit: 623,000 people receive improved wastewater services.
State Water Board support: $112 million, low-interest loan
San Mateo
In September, the Estero Municipal Improvement District completed a $552 million upgrade and expansion of the San Mateo Wastewater Treatment Plant. The upgrades increase system capacity to manage large storm events and prevent sewer system overflows that threaten public health and the San Francisco Bay.
Benefit: 160,000 people receive improved wastewater services and greater protection from sewer system overflows.
State Water Board support: $137 million, low-interest loan
Irvine
In September, Irvine Ranch Water District completed a new treatment system that removes per- and polyfluoroalkyl chemicals (PFAS), called “forever chemicals,” from local groundwater. The system can process up to 3,200 gallons of water per minute.
Benefit: 38,000 people receive water free of PFAS.
State Water Board support: $2.8 million grant, one of seven similar projects the board supports through the Orange County Water District
Antioch
In September, the city of Antioch completed the Antioch Brackish Water Desalination Plant, which will help this Delta community adapt to climate change by facilitating the capture, treatment and use of water directly from the San Joaquin River. The plant can produce up to 6 million gallons of drinking water per day, or enough to sustain an amount equal to 20,000 households per year.
Benefit: 110,000 people enjoy the security and broader rate distribution of a water system with greater capacity.
State Water Board support: $60 million, low-interest loan.
West Lake Tahoe
In September, the Tahoe City Public Utilities District opened the West Lake Tahoe Regional Water Treatment Plant, an upgraded facility that can treat 1 million gallons of lake water per day.
Benefits: 5,400 residents now have a permanent, drought-resilient source of drinking water and fire protection.
State Water Board support: $19.7 million, low-interest loan.
Yucca Valley
Groundbreaking ceremony for new sewage collection system for Yucca Valley.
In August, the Hi-Desert Water District broke ground on a new sewage collection system—the second phase of a 10-year, wastewater infrastructure construction of a 32-mile pipeline to the district’s wastewater treatment plant.
Benefits: 5,400 people in Yucca Valley will connect to sewer services.
State Water Board support: $103 million in grants that save individual property owners at least $30,000 in assessment costs
Visit the board’s website for more information about funding programs through its Division of Financial Assistance.
The State Water Board’s mission is to preserve, enhance and restore the quality of California’s water resources and drinking water for the protection of the environment, public health, and all beneficial uses, and to ensure proper resource allocation and efficient use for the benefit of present and future generations.
