Board OKs $195 million loan cap for Washington County reuse project, approves 40-year, 0.5% terms

The Utah Board of Water Resources voted unanimously June 26 to authorize up to $195 million — equal to 47.2% of Phase 1 costs — for a multi‑phased water reuse and advanced purification project proposed by the Washington County Water Conservancy District.

The board’s action authorizes a loan at 0.5% interest amortized over 40 years, with estimated annual payments of $5,540,000. The motion passed on a roll call vote with all board members recorded as voting in favor.

The district’s plan is a multi‑phased program intended to produce roughly 24,000 acre‑feet per year of treated reuse water by 2042. Phase 1, which staff and the applicant expect to complete by about 2030, focuses on reuse for agricultural and secondary irrigation and includes more than 60 miles of new pipeline, three reservoirs, upgraded reclamation facilities and other conveyance and storage. Phase 2 would add a 21,000,000‑gallon‑per‑day advanced water purification facility, Warner Valley Dam and additional storage and pipelines to treat reuse water to drinking‑water standards when demand requires it.

Tom Cox, project manager for the Division of Water Resources staff, told the board the overall project estimate is $1,360,000,000 and that Phase 1 is estimated at $413,000,000. Cox…