Senate bill encourages P3s for desalination projects

Blanche Attorney General Nomination Advanced By Senate Panel
"As communities throughout Texas continue to face devastating drought conditions, it's crucial that we make investments in water infrastructure improvements to ensure our state has enough water to meet demands," said Texas Republican Sen. John Cornyn about a bipartisan bill to promote more desalination projects.
Al Drago/Bloomberg

Delivering costly and complicated desalination projects through public-private partnerships would be encouraged under a bipartisan Senate bill.

Processing Content

The Desalination Reauthorization Act includes a provision that would allow P3s to be fully eligible for federal desalination project grants.

The measure more broadly extends the Bureau of Reclamation's programmatic authority to fund local desalination projects and research, which is set to expire Dec. 16. Without reauthorization, Congress would have to approve every new desalination project individually.

The bill bans the Bureau of Reclamation from administratively capping project grants to ensure that large-scale facilities can receive the full 25% federal cost-share that is allowed under the bureau's construction program. It would also fund competitive grants for pilot projects aimed at lowering desalination expenses and limiting environmental impacts.

Sen. John Cornyn, R-Texas, and Sen. Alex Padilla, D-Calif., sponsored the bill. Texas and California are among top states affected by water shortages and, along with Florida, states with the most desalination projects. Texas has more than 100 plants, according to the Texas Desalination Association, which was unavailable to comment by press time.

Desalination, a process that removes salt and other minerals from seawater or brackish water, is touted by supporters as "proof of water supply alternatives." But they face high capital costs, complex permitting processes and environmental impacts tied largely to the high energy use and the concentrated brine left over from the desal process. Much of the investment now comes from public funds and municipal bonds.

"As communities in Texas' Gulf Coast region and the Rio Grande Valley continue to face devastating drought conditions, it's crucial that we make investments in water infrastructure improvements to ensure our state has enough water to meet demands," Cornyn said in a statement.

Less than 5% of U.S. desalination projects are P3s, according to Seven Seas Water Group, but some of the largest ones, including Claude "Bud" Lewis Plant in Carlsbad, Calif., and the Kay Bailey Hutchison Plant in El Paso, Texas, have been delivered through P3s.

The Association of California Water Agencies, OceanWell, and South Coast Water District endorsed the bill. The trade group WateReuse Association declined to comment on the bill other than to say that it supports P3s and desalination grants through the Bureau of Reclamation.

The bill has been referred to the Committee on Energy and Natural Resources.


For reprint and licensing requests for this article, click here.
Public-private partnership Washington DC Infrastructure Politics and policy
MORE FROM BOND BUYER
Load More