IEUA clears environmental hurdles for $1B Chino Basin recycled water exchange program

IEUA clears environmental hurdles for $1B Chino Basin recycled water exchange programThe Inland Empire Utilities Agency has recertified environmental impact reports for its landmark groundwater storage and exchange program following a 2022 legal challenge, keeping the project on track for final state funding awards in 2027.

The IEUA board unanimously certified a recirculated Program Environmental Impact Report to address court-ordered corrections from a 2022 lawsuit.

The core regional recycled water program expansion carries an estimated capital cost of $570 million, with a marginal water production cost of $3,800 per acre-foot before grants.

The overall program, which includes extraction facilities and a Metropolitan Water District interconnection, is estimated at $1.008 billion.

The agency has reduced planned replenishment wells from 16 to nine, saving an estimated $50 million.

Draft public benefit contracts with state agencies are complete, securing the framework to provide pulse flows for Northern California salmon.

On July 15, 2026, the Inland Empire Utilities Agency (IEUA) Board of Directors unanimously approved the recertification of the Chino Basin Program (CBP) Programmatic Environmental Impact Report (PEIR) and a Supplemental EIR for pulse flows. The approvals clear a significant legal hurdle for the massive water storage and exchange initiative, keeping the agency on track to secure critical state funding. The recertification directly addresses a December 2025 court writ stemming from a 2022 California Environmental Quality Act (CEQA) lawsuit filed by the City of Ontario. The court required IEUA to clarify the 25-year exchange term versus the 50-year facility lifecycle, adjust project objectives regarding state funding, and incorporate the California Department of Water Resources' analysis of the Northern California Feather River exchange impacts. During a detailed program update, the Chino Basin Program Manager reported that the regional recycled water expansion—which includes a 15 MGD Advanced Water Purification Facility (AWPF), pipelines, and recharge wells—is currently estimated at $570 million. When factoring in production facilities and a Metropolitan Water District (MWD) interconnection, the total program cost reaches an estimated $1.008 billion. The marginal cost to create the new supply is projected at $3,800 per acre-foot, without factoring in external grants or property taxes. Staff noted this cost aligns with similar pure water projects currently under development in Southern California. The CBP is designed to store advanced treated recycled water locally, allowing IEUA partners to reduce imported water purchases during "call years." In exchange, the state can release pulse flows from Lake Oroville to support migrating salmon in the Feather River. Staff confirmed that draft public benefit contracts with the California Department of Fish and Wildlife, the State Water Resources Control Board, and the Department of Water Resources are now complete. These agreements keep IEUA on schedule for a final Water Storage Investment Program (WSIP) funding hearing in late 2027. Project optimization is already yielding financial benefits. Based on test well data, the agency reduced the required number of replenishment wells from 16 to nine, securing an estimated $50 million in cost savings. Meanwhile, the AWPF is advancing under a progressive design-build contract led by J.F. Shea and Tetra Tech, with a demonstration facility currently under construction and slated to begin operations in February 2027. To support the execution of the CBP and the agency's broader $1.7 billion 10-year Capital Improvement Plan, the Board also approved a series of capacity-building procurements during the meeting. These included $7 million in master service contracts to seven firms for project controls services, and $15 million in contracts across dozens of prequalified firms for emergency and small construction projects.