EPA announces $34M WIFIA loan for Daly City stormwater upgrades

The U.S. Environmental Protection Agency has announced a $34 million Water Infrastructure Finance and Innovation Act (WIFIA) loan to the Daly City Joint Powers Financing Authority to expand stormwater system capacity and reduce flood risk in San Mateo County, California.

The funding will support the Vista Grande Drainage Basin Improvement Project, which aims to reroute stormwater runoff to Lake Merced while upgrading key infrastructure. Planned improvements include replacing an undersized canal, enlarging an existing tunnel, enhancing the overflow system to the lake and constructing a new outlet to the Pacific Ocean. The project is designed to reduce flooding, stabilize lake levels and improve regional water quality.

“This project will deliver critical water infrastructure upgrades to better protect San Mateo County communities from flooding, stabilize Lake Merced’s water levels and improve regional water quality,” said Tomás Torres, Water Division Director for EPA’s Pacific Southwest Region, in a press release. “EPA’s low-interest, flexible water infrastructure financing helps communities make investments in protecting public health and natural resources while uplifting local economies.”

EPA estimates the WIFIA loan will save the authority approximately $2.6 million over the life of the project while supporting roughly 500 jobs. For stormwater professionals, the investment highlights the growing role of innovative financing in advancing large-scale drainage and watershed management projects, particularly those integrating flood control with water quality and ecosystem benefits.