Corpus Christi rejects federal grant application for Inner Harbor desal plant

Corpus Christi rejects federal grant application for Inner Harbor desal plantIn a contentious 5-4 vote, the city council declined to pursue up to $120 million in Bureau of Reclamation funding, citing incomplete environmental studies and the lack of final project approval.

The council denied authorization to apply for a US Bureau of Reclamation WaterSMART grant, missing out on a funding pool that recently saw its $30 million per-project cap removed.

Opponents argued applying was premature pending a peer-reviewed far-field study on the plant's brine discharge impacts on local bays and estuaries.

In a separate action, the council approved a $107.5 million Guaranteed Maximum Price for Phase 2 of the Reclaimed Water for Industrial Use Project.

The city is concurrently advancing alternative water supplies, including a letter of intent with AquaTech for an existing industrial desalination facility.

The Corpus Christi City Council narrowly rejected a motion to apply for a major federal grant to support its planned Inner Harbor Seawater Desalination Treatment Plant during a contentious June 30, 2026, meeting. In a 5-4 vote, the council denied staff authorization to work with consultant WSP on an application for the US Bureau of Reclamation's WaterSMART desalination construction program. The grant opportunity featured an estimated total program funding pool of $120 million following the recent removal of a historic $30 million per-project cap. The decision highlighted deep divisions over the estimated $1 billion Inner Harbor project. Supporters on the council argued it was financially prudent to seek federal dollars to offset costs for ratepayers and industrial users. However, opponents argued that applying for the grant was premature, as the council has not yet formally approved the project's construction and is still awaiting final environmental data. A central point of contention remains the project's far-field modeling study, which will assess the environmental impact of the plant's brine discharge on the local bay system. While a draft report from consultant Spheros Environmental was recently submitted to the city, the document is still undergoing technical review and has not yet been subjected to a peer review by independent marine biologists. Several council members cited this missing data, alongside unresolved questions about the city's firm water demand, as reasons to halt the grant application. While the desalination grant application was denied, the council took decisive action on another major water supply initiative, unanimously approving an ordinance for the Reclaimed Water for Industrial Use Project. The council authorized a $107,531,622 Guaranteed Maximum Price (GMP) with Construction Manager-At-Risk Reytec Construction Resources for Phase 2 construction services. The reclaimed water project includes the construction of a transmission main, a pump station, and a wet well at the Oso Water Reclamation Plant. Once completed in May 2027, the infrastructure will convey 11 million gallons per day of treated effluent from the Oso facility to the Greenwood Wastewater Treatment Plant, where it will be distributed to industrial users, including Valero and potentially Citgo and Howard Energy. The city's Chief Operating Officer of Water, Nick Winkleman, noted during a water supply update that industrial partners are already funding and constructing necessary conveyance lines to take effluent from the city's treatment plants, which will significantly offset potable water demand. Corpus Christi is also actively pursuing several alternative water sources as surface water levels remain strained, with combined western reservoirs sitting at just 16% capacity. Winkleman reported that the city expects to execute a non-binding letter of intent this week with AquaTech regarding the CC Polymers desalination facility, which could be modified to produce potable water. Additionally, the city is advancing the Evangeline Groundwater Program, though that project is currently subject to a contested case hearing with the San Patricio County Groundwater Conservation District.