SacSewer advances $597m Harvest Water program, seeks state funds to close $180m gap

SacSewer advances $597m Harvest Water program, seeks state funds to close $180m gapWith five major pipeline contracts wrapping up, the Sacramento Area Sewer District is turning its focus to closing a $180.9 million funding gap for its landmark agricultural recycled water project by pursuing state inflationary adjustments and new grants.

Five pipeline construction contracts are essentially complete, while the program's main pumping station has recovered five months of schedule delays for an expected April 2027 completion.

SacSewer has secured 81 On-Farm Connection Assemblies, representing approximately 29,500 acre-feet per year of recycled water demand.

The utility is actively petitioning the California Water Commission for $25 million to $50 million in inflationary adjustments to help bridge the program's $180.9 million funding gap.

The Sacramento Area Sewer District (SacSewer) is nearing the completion of major pipeline construction for its $597.2 million Harvest Water program, a massive agricultural recycled water initiative designed to deliver up to 32,500 acre-feet per year (AFY) to southern Sacramento County. During a March 11 meeting, Mike Crooks, Deputy Director of EchoWater Operations, reported that five pipeline construction contracts are "essentially complete" and in various stages of closeout. Meanwhile, the program's main pumping station, which previously faced equipment procurement and quality control delays, has recovered five months of schedule time and is now slated for completion in April 2027. Out of a total construction budget of $323.4 million, SacSewer has spent nearly $234 million to date. Crooks noted that the projected total change order rate at the completion of all construction is expected to be 6.8%. With physical infrastructure advancing, SacSewer is intensifying efforts to close a $180.9 million program funding gap. Jofil Borja, Manager of Legislative and Regulatory Affairs, informed the board that the utility formally requested inflationary adjustments from the California Water Commission (CWC) in February. SacSewer is seeking between $25 million and $50 million in adjustments for existing Proposition 1 and Proposition 4 funding. The utility is also working with the California Department of Fish and Wildlife to identify expanded ecosystem benefits that could qualify the program for additional state funding. Beyond the CWC, SacSewer is advancing a $15 million Phase 1 grant application through the State Water Resources Control Board's Water Recycling Funding Program, with a Phase 2 application planned to secure an additional $5 million to $15 million. On the operational side, customer recruitment has accelerated. Borja reported that SacSewer has secured 81 On-Farm Connection Assemblies, representing approximately 29,500 AFY of recycled water demand. This brings the utility near its ultimate delivery goals, with nine additional agreements closely anticipated. The program's broader impact on regional water resources was also discussed. Director Roger Dickinson inquired whether the project included capacity for groundwater banking. While staff clarified that Harvest Water does not directly incorporate a formal water banking framework, they confirmed that groundwater banking will become an important future element of SacSewer's overall water portfolio as the region pursues long-term sustainability.