The U.S. Environmental Protection Agency (EPA) has announced a $225 million loan to the City of San Diego, Calif., to support its Stormwater Capital Improvement Program.
Provided through the Water Infrastructure Finance and Innovation Act, the loan will help San Diego with its project to protect water quality, reduce flood risk, and restore natural habitats while supporting resiliency to the impacts of climate change.
“These innovative projects harness the power of green technology to protect public health and the environment,” said EPA Deputy Assistant Administrator for Water Bruno Pigott. “By investing in its water infrastructure, EPA is helping San Diego protect its communities from potential flooding and prevent runoff of untreated stormwater into local waterways.”
The Stormwater Capital Improvement Program will use traditional infrastructure and green infrastructure to reduce flood risk and ensure that water flowing into local tributaries is clean and safe for San Diego’s 1.4 million residents. The city is using the loan’s flexible terms to finance the design and construction of nearly 80 projects that are planned through the Stormwater Capital Improvement Program.
These projects will redirect captured stormwater through existing, traditional drainage passageways as well as implement new, multi-benefit green technologies that will use the city’s natural environment to filter stormwater and reduce untreated runoff that enters the Pacific Ocean. The city’s green infrastructure projects will make additional important community outcomes possible, including the restoration of critical wetland habitats for plants and animals, reducing the heat-island effect, community beautification, and creating green space.
“Our storm drain system is largely underground and out of sight, but the implications of this aging infrastructure failing are massive — from serious flooding in our neighborhoods to pollution of our bays and the ocean,” said City of San Diego Mayor Todd Gloria. “While replacing storm drains and upgrading pump stations doesn’t capture the public’s attention like fixing potholes, these major investments in critical infrastructure are incredibly important to our neighborhoods and quality of life.”
This is the agency’s third WIFIA loan to the City of San Diego. The city will save approximately $63 million by financing with a WIFIA loan and capitalizing on EPA’s flexibility to match WIFIA loan repayment amounts with a revenue source that grows over time. Construction under this loan is expected to be completed in 2027 and construction and operation are estimated to create approximately 1,500 jobs. This is the first loan under a new master agreement that will commit over $350 million in WIFIA assistance to the City of San Diego.
