ECUA deploys $28M in PFAS settlement funds for wellhead treatment, eyes $50M debt issuance in 2028

ECUA deploys $28M in PFAS settlement funds for wellhead treatment, eyes $50M debt issuance in 2028The Emerald Coast Utilities Authority is cash-funding its 2027 water and wastewater capital projects, relying on lawsuit payouts for PFAS mitigation before returning to the bond market to support a $478.9 million five-year capital plan.

ECUA has secured approximately $28 million from PFAS manufacturers, currently funding 10 to 11 treatment projects in the design phase.

The committee approved engineering contracts for GAC treatment modifications at the Carriage Hills and Lillian wells using settlement cash.

The utility's five-year capital improvement program totals $478.9 million, with $68.9 million budgeted for FY 2027.

While FY 2027 water and wastewater projects will be cash-funded, ECUA anticipates issuing roughly $50 million in new debt in 2028 as existing loans retire.

The Emerald Coast Utilities Authority (ECUA) in Pensacola, Florida, is aggressively deploying settlement funds to address per- and polyfluoroalkyl substances (PFAS) while preparing for major future debt issuances to support its broader capital needs. During a July 21, 2026, Citizens' Advisory Committee meeting, Director of Finance Justin Smith presented the utility's proposed five-year Capital Improvement Program (CIP), which totals $478.9 million. The FY 2027 capital budget is set at $68.9 million. Water and wastewater projects for the upcoming fiscal year will be entirely cash-funded, avoiding new borrowing in the near term. However, the utility's financial strategy will shift in 2028. With existing debt obligations from the Central Water Reclamation Facility and State Revolving Fund (SRF) loans scheduled to retire, ECUA anticipates issuing approximately $50 million in new debt in 2028, followed by additional issuances through 2033 to cover large-scale infrastructure needs. Separate from ratepayer-funded capital projects, ECUA is utilizing an estimated $28 million generated from lawsuit settlements with PFAS manufacturers, along with associated investment earnings. These funds are dedicated strictly to mitigating the chemicals in the groundwater supply. According to Smith, the utility currently has 10 to 11 PFAS-related projects in the design phase, with construction expected to begin over the next year. During the meeting, the committee advanced two specific PFAS treatment contracts funded entirely by the settlement reserve. The board approved a $52,500 engineering services contract with Municipal Engineering Services, Inc. (MESI) for piping design at the Carriage Hills Well, where two granular activated carbon (GAC) vessels will be installed. Director of Water Production Tom Dawson noted that the well has a capacity of 900 to 1,000 gallons per minute, and the project is expected to go to bid in eight to nine months. Additionally, the committee approved a $71,650 engineering services proposal from Arcadis for the Lillian Well. The well, which has seen its production capacity drop from 2,000 to 1,000 gallons per minute, currently utilizes four GAC vessels for iron removal. The Arcadis contract will design piping modifications to establish in-series flow, allowing two vessels to continue removing iron while repurposing the remaining two vessels for PFAS treatment.