OCWD advances $117.7m budget as PFAS treatment costs surge 33%

OCWD advances $117.7m budget as PFAS treatment costs surge 33%The Orange County Water District expects to spend $6.4 million on PFAS operations and maintenance in the upcoming fiscal year, treating 119,000 acre-feet of groundwater as more wells come online and filter media requires more frequent replacement.

The proposed FY 2026-27 General Fund budget represents a $3 million (2.58%) increase over the current year.

PFAS O&M costs will jump from $4.8 million to $6.4 million, driven by a 19% increase in treated water volume.

The unit cost for PFAS treatment is projected to rise from $48 to $54 per acre-foot due to inflation and more frequent media changeouts.

Staff warned that treatment costs will continue to climb as additional wells come online, with the need for remediation expected to last "many, many decades."

The Orange County Water District (OCWD) is advancing a $117.7 million General Fund budget for fiscal year 2026-27, with escalating operations and maintenance (O&M) costs for PFAS treatment standing as the primary driver of the district's growing expenses. Presented during an April 9 Administration and Finance Issues Committee meeting, the proposed budget marks a $3 million, or 2.58%, increase over the current year. More than half of that increase stems from a $1.6 million surge in the district's share of PFAS O&M costs for groundwater producers, which will jump 33% from $4.8 million to $6.4 million. Staff attributed the rising PFAS expenses to two main factors: an increase in the volume of water requiring treatment and a higher unit cost for remediation. In the upcoming fiscal year, OCWD plans to treat 119,000 acre-feet of water for PFAS—a 19% increase from the current year's 100,000 acre-feet. This treated volume will account for 40% of the district's total projected pumping of 299,000 acre-feet. Simultaneously, the unit cost for PFAS treatment is projected to rise from $48 to $54 per acre-foot. Staff noted this is driven by general inflation and the need for more frequent filter media replacements as the treatment systems age. Responding to questions from Director Van Tran about the long-term financial trajectory of the cleanup, staff confirmed that costs will continue to climb. As additional wells come online and operate longer, media changeouts will become more frequent. Once all impacted wells are operational, baseline costs will stabilize but continue to rise steadily with inflation. Director Natalie Meeks questioned whether the need for PFAS treatment would eventually phase out due to changing regulations and usage. While staff noted that PFAS concentrations coming down the local river have been declining, they cautioned that the chemicals are still entering the ground. It will be "many, many decades in the future" before some wells might no longer require treatment. To potentially mitigate future expenses, the General Manager noted that OCWD maintains an active pilot system to test new resins pitched by vendors, though staff acknowledged that most alternatives have not proven more effective than current methods. Beyond PFAS, the budget increase is also driven by a $700,000 bump in maintenance and structure improvements, largely due to sediment removal behind the Prado Dam, which will increase from $1.1 million to $1.8 million next year. Despite the rising costs of remediation, the district's efforts continue to draw industry recognition. The General Manager announced that OCWD recently won two awards from the American Society of Civil Engineers for its PFAS treatment plants in Tustin and the City of Orange.