Unlocking Funding Opportunities: EMWD's Strategic Approach to Infrastructure Investment

As water affordability becomes increasingly important for customers, the ability to develop cost-effective infrastructure solutions to meet customer needs has never been more critical. The good news is, there are funding sources available that can help water agencies advance projects in a cost-effective way. Eastern Municipal Water District (EMWD), based in Southern California, has carved out a unique path to maximize these funding opportunities, securing over $700 million in the past two decades to support a broad range of infrastructure projects for water, wastewater, and recycled water.

Maximizing Value for Ratepayers through Strategic Funding Partnerships

Leveraging Relationships to Secure Funding

EMWD's success in securing external funding is a testament to its strategic approach and the strong relationships it has cultivated with various funding agencies and legislative partners. The district's General Manager, Joe Mouawad, emphasizes that these efforts are ultimately about providing cost-effective service to their customers. By working to identify and secure appropriate funding opportunities, EMWD aims to minimize the burden on its ratepayers and ensure that their tax dollars are being reinvested back into their communities.EMWD's long-standing partnership with the United States Bureau of Reclamation (USBR) is a prime example of the district's collaborative approach. In the 1990s, EMWD pursued a partnership with USBR to develop a pilot treatment facility for secondary treated wastewater, which laid the foundation for the district's expansive recycled water system. This partnership has continued to evolve, with USBR providing significant financial support for the backbone infrastructure of EMWD's recycled water system, which now accounts for more than one-third of the district's water supply portfolio.

Adapting to Changing Priorities and Regulations

While EMWD's funding success is impressive, the district acknowledges that the process is not without its challenges. One of the key hurdles is the shifting priorities of federal funding agencies, which can make it difficult to align local infrastructure needs with evolving national agendas. Mouawad emphasizes the importance of maintaining open communication and the ability to adapt to a changing environment.Another challenge is the evolving regulatory requirements that can impact the funding process. Infrastructure projects often take years to develop, and during that time, new regulations or administrative requirements may be enacted. To navigate these challenges, EMWD remains actively engaged with regulatory agencies, working to identify potential concerns early and collaborating to find shared solutions.

Establishing a Dedicated Funding Team

EMWD's success in securing external funding is also attributed to the resources and expertise of its dedicated grants, loans, and legislative advocacy teams. These specialized teams play a crucial role in identifying funding opportunities, navigating the application process, and maintaining compliance with the funding agreements. Mouawad acknowledges that the support of EMWD's Board of Directors, who have provided the necessary resources for these teams to thrive, has been instrumental in the district's funding achievements.

Starting Small, Aiming High

For other water agencies looking to emulate EMWD's success, Mouawad's advice is to start small and view each funding opportunity as a steppingstone to larger successes. By demonstrating the ability to effectively utilize smaller grants, agencies can build trust with funding partners and open the door to more significant funding opportunities in the future. Maintaining a long-term strategic focus and a commitment to accountability are also key factors in securing and maximizing external funding sources.

Investing in the Future: EMWD's Capital Improvement Plan

As one of California's fastest-growing regions, EMWD is investing heavily in its infrastructure to accommodate future development. The district's five-year capital improvement plan totals $785 million, with the goal of ensuring that the necessary infrastructure is in place to support the growth and needs of its nearly 1 million customers across its 601-square mile service area.By leveraging external funding sources, EMWD is able to undertake these critical infrastructure projects without placing the full burden on its ratepayers. The district's strategic approach to funding has allowed it to reinvest tax dollars back into the communities it serves, ultimately benefiting its customers and contributing to the long-term sustainability of the region.