Amarillo advances $1.1 billion CRMWA II groundwater pipeline to secure long-term supply

Amarillo advances $1.1 billion CRMWA II groundwater pipeline to secure long-term supplyThe City Council approved a memorandum of understanding with the Canadian River Municipal Water Authority to bring a 70-mile groundwater pipeline online by 2038, mitigating drought risks and rising chloride levels in the region's primary surface water source.

The 70-mile, 72-inch CRMWA II pipeline will increase groundwater delivery capacity from 65 MGD to 112 MGD.

Project costs have escalated from $340 million in 2014 to an estimated $1.1 billion today, with Amarillo's share projected at $450 million.

The MOU outlines a timeline targeting a 2034 debt issuance and a 2038 operational date.

CRMWA will phase in budget increases starting in 2026 to fund design work in cash and address critical repairs on existing 1968 infrastructure.

The pipeline will bypass 25 miles of vulnerable prestressed concrete pipe that is currently prone to catastrophic blowouts.

The Amarillo City Council approved a non-binding memorandum of understanding (MOU) on June 23 with the Canadian River Municipal Water Authority (CRMWA) and ten other member cities to develop a second major groundwater pipeline. The proposed 70-mile pipeline, known as CRMWA II, is designed to secure the region's long-term water supply against severe drought and deteriorating surface water quality. Drew Satterwhite, representing CRMWA, told the council that the project is driven by the declining usability of Lake Meredith, the authority's primary surface water source. Due to evaporation and a lack of downstream releases, chloride concentrations in the lake have doubled since 2001. The rising salinity requires CRMWA to blend the surface water with groundwater from Roberts County, but current infrastructure limits groundwater delivery to 65 million gallons per day (MGD). The CRMWA II project will feature a 72-inch pipeline capable of delivering up to 112 MGD directly to the Amarillo Regulating Reservoir. Satterwhite noted that the project will also provide critical redundancy for the authority's aging 1968 aqueduct. The original prestressed concrete pipe is prone to catastrophic blowouts rather than minor leaks, requiring up to ten days to repair a single segment while completely cutting off the sole water artery to member cities. The new pipeline will bypass 25 miles of this vulnerable 1968 pressure pipe. Estimated costs for the heavy civil infrastructure have skyrocketed over the past decade. Initially estimated at $340 million in 2014, the total project cost is now projected at $1.1 billion, factoring in inflation. Amarillo's share of the project is estimated at $450 million in today's dollars. Because CRMWA requires all eleven member cities to approve major debt issuances, the MOU serves as a consensus-building tool to align the cities' financial planning. The agreement establishes a shared timeline targeting a 2034 debt issuance to fund a four-year construction period, with the pipeline expected to come online by 2038. To prepare for the massive 2034 debt issuance, CRMWA will implement phased budget increases starting in October 2026. This ramp-up will generate cash to fund tens of millions of dollars in engineering and design work without requiring a separate bond issuance. It will also provide immediate funding to address critical repairs on the existing 400-mile pipeline system before the new debt service limits member cities' financial flexibility.