Contra Costa targets WIFIA and federal grants for Canal Replacement Program

Contra Costa targets WIFIA and federal grants for Canal Replacement ProgramThe California utility is advancing a diversified funding strategy to offset ratepayer impacts for major infrastructure updates, though board members warn of fierce competition for limited state and federal dollars.

CCWD managed $12 million in active funding agreements in 2025, with $7.7 million remaining unspent for ongoing projects.

The district is engaging with the EPA to evaluate WIFIA loan eligibility for its Canal Replacement Program.

Recent federal funding includes a $71,000 Bureau of Reclamation grant to research the golden mussel life cycle.

The utility is awaiting potential award announcements to fund Advanced Metering Infrastructure (AMI) and Londa Gardens projects in 2026.

Contra Costa Water District (CCWD) is aggressively positioning its infrastructure projects for federal and state funding to offset ratepayer impacts, with a primary focus on financing its Canal Replacement Program (CRP). During a March 18, 2026, board meeting, Grant Specialist Katie Kelly reported that the district managed $12 million in active funding agreements throughout 2025. This portfolio included $10.9 million in grant funding and $1.1 million in funding matches across seven active federal and state agreements. By the end of 2025, the district had spent approximately 35% of these funds, leaving $7.7 million unspent for ongoing initiatives. To finance the CRP, staff are monitoring debt financing options and engaging with the Environmental Protection Agency to identify eligibility and programmatic requirements for a Water Infrastructure Finance and Innovation Act (WIFIA) loan. The district is also exploring funding through the Office of Local Defense Community Cooperation for the portion of the CRP located within the Military Ocean Terminal Concord (MOTCO), alongside potential congressionally directed spending requests. In 2025, CCWD submitted five funding applications totaling approximately $1.2 million. This resulted in a $71,000 partial award from the Bureau of Reclamation to fund UC Berkeley and UC Santa Barbara research on the life cycle of the invasive golden mussel. Looking ahead to 2026, the utility has already executed a grant agreement for a future water supply study and is awaiting potential award announcements for Advanced Metering Infrastructure (AMI) and Londa Gardens improvements. Despite the district's historical success in securing outside revenue, board members expressed caution regarding the future funding landscape. Vice President Martinez warned that competition for grants will become significantly more fierce as state budgets tighten over the next five years. He also noted that understaffed federal agencies are complicating the application process, making the district's internal grant strategy crucial for mitigating the financial impact of unfunded state mandates. To further its funding goals, General Manager Rachel Murphy confirmed that utility leadership will conduct a Capital Outreach Day in Sacramento to advocate directly for the Canal Replacement Program, golden mussel management, water affordability, and broader infrastructure funding.