Water Quality Funding
2018 State of the Environment Report (WQ)

Water-quality improvements can carry significant costs, which is why DWQ provides low-cost and no-cost funding for wastewater infrastructure and water-quality projects in the state. The Clean Water State Revolving Loan Fund (SRF) receives, on average, a combined $8 million each year from state and federal funding, with an additional $15 million, on average, from loan repayments. The financial assistance program helps communities leverage or supplement funding for water-quality improvement activities.

Wastewater treatment plant construction and upgrades are vitally important for reducing the nutrient pollution in Utah waters from population growth. The state’s aging wastewater treatment infrastructure, stricter water-quality standards to protect Utah waters, and population growth mean many communities will continue to turn to DWQ’s low- or no-cost funding program for assistance with plant upgrades and construction.

Central Valley Reclamation Facility

The Central Valley Water Reclamation Facility received approval for a loan package of $65.1 million for the construction of a new, advanced wastewater reclamation facility. The financing package will support approximately 30 percent of the total financial need for the project. The new treatment facility will incorporate advanced treatment technologies, including nutrient and energy-recovery systems. Since Central Valley is the largest wastewater treatment facility in the state, the proposed treatment improvements will have the single largest impact on improvements to water quality in the state.

South Salt Lake City

South Salt Lake City received approval for a $9.24 loan for the construction of new advanced wastewater reclamation facilities. The Water Quality Board also authorized a supporting $2 million grant in recognition of the financial burden involved in covering the city’s share of the capital improvements at the Central Valley Water Reclamation Facility.

Duck Creek

The Kane County Water Conservation District received approval for construction-assistance financing of approximately $4 million for development of sewers and a wastewater treatment system for the Duck Creek community in Kane County. The proposed project and financing includes the purchase of wastewater infrastructure from the Forest Service, extending sewers into the community, and upgrading the existing lagoon treatment system to meet the needs of community growth over the next 30 years. This project will help Duck Creek overcome serious challenges from malfunctioning septic systems in the town’s center that have affected its ability to protect public health.

Salem City

The Water Quality Board purchased $20 million in revenue bonds from Salem City to finance a new, advanced water-reclamation facility. The new facility will replace the City’s 30-year-old lagoon-treatment system. The twenty-first-century-technology treatment works will support the community’s rapid growth as well as its need for practical, balanced wastewater management. The treatment system will also meet or exceed water-quality improvements needed to protect Utah County’s important surface waters. A groundbreaking ceremony was held on August 2, 2018, and attended by DWQ Division Director Erica Gaddis and division staff.  Construction is well underway and expected to be completed in 2020.

Salem City is currently under construction of a new $21 million Wastewater Treatment Facility. This project is the result of many hours of dedicated service by Salem City Staff and City Council, our consulting engineering firm, and especially the staff of the Utah Division of Water Quality. As with any project of this size, there are unexpected twists and turns in the road and we had our share … About halfway through planning, it became clear that the economy was so good here in Utah that construction costs had escalated well beyond our original planning estimates created a few years prior. The DWQ Staff and Water Quality Board jumped into motion, and with hard work and collaboration, we were able to acquire the additional funds needed with extended loan terms that kept the project affordable. Without the additional funding, I am not sure if the project could have proceeded. Salem City is excited to be part of such a great state and do our part in protecting the future of water quality for generations to come.”

–Bruce Ward, Salem City Engineering Director

Provo City

Provo City received approval for a $75.8 million loan for the construction of a new, advanced wastewater reclamation facility. In addition, the Water Quality Board authorized a supporting grant of $2 million in recognition of the financial burden the city faces in replacing much of its aging sewer and wastewater treatment infrastructure. The board’s financing package will support approximately 50 percent of the total project financial need. The project will support the community’s rapid growth for the next 20 years and will incorporate advanced treatment technologies to help protect Utah Lake water quality. Utah Lake is currently listed as impaired for nutrient-related water-quality problems.

Logan City

Logan City received approval for a low-interest loan of $20 million to support its proposed new wastewater reclamation plant. This loan, together with other financing from the Board and the Permanent Community Impact Board, will fund 65 percent of the $150 million project. The project will support projected Cache Valley growth for the 30-year life of the plant and will employ advanced treatment technologies to improve water quality in Cutler Reservoir and the Bear River watershed, important water resources currently listed as impaired for nutrient-related water quality problems.

We would like to express our appreciation to John Mackey and the Engineering section of the DWQ for their continued support of the Logan City wastewater treatment plant project. When the project reached a critical point in September after construction costs came in much higher than expected, the project was in doubt.  Financing was already stretched to our capacity, but with the timely assistance of the DWQ Engineering section staff, we were able to move ahead without unnecessary delays or failure of the project.Issa Hamud and myself are very grateful that the DWQ Engineering staff recommended to the Water Quality Board that they authorize an additional low-interest loan of $20 Million for the project.  As you know, that was approved in September. This loan, together with other financing from the Water Quality Board and the Permanent Community Impact Board, will fund 65 percent of the $150 million project. We are also thankful to the Water Quality Board for their action to support Logan’s situation while improving our regional water quality.”

–Holly H. Daines, Mayor, City of Logan

Wellington City

Wellington City received financial assistance from the Water Quality Board for emergency repair of a failing sewer main located in U.S. Highway 6. The board provided an emergency advance of $96,000 to expedite these repairs, prevent disruption of this critical transportation corridor, and mitigate risks of a sewage discharge. In advancing these funds, the board asked the city to accelerate its plans to improve its aging sewerage infrastructure and correct similar identified deficiencies in the system.