Processing Magazine

California to incentivize water recycling projects through low-interest loans

April 3, 2014

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The state of California has been looking for ways to cope with the severe drought it is facing. Amid instructions to consumers to restrict water usage and meetings with President Obama to discuss the problem, the state Water Resources Control Board has announced another move that aims to relieve water stress and contribute to water availability.

The board is providing low-interest financial terms to businesses and organizations that want to develop water recycling projects. Approximately $800 million will be available at a 1-percent interest rate, which is almost half the current interest rate for water recycling projects, the board said. The move has been approved by Governor Jerry Brown as one of several measures he called for in his Drought State of Emergency.

The goal of the project is to stimulate water recycling and to produce an extra 150,000 acre-feet of recycled water annually. Funds will be available for various water treatment facilities, water distribution systems and storage facilities, the board announced. Applications will be accepted until Dec. 2, 2015.

State water board chair Felicia Marcus commented that the board had been instructed by Gov. Brown to speed up funding for water system improvement projects that can be in operation soon. Offering favorable financial terms is a direct incentive for the launch of water recycling projects, which will not only relieve the current drought situation but will provide benefits to future generations as well, she added.