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SFPUC says biosolids project wins $625 million WIFIA loan as SSIP work continues
Summary
The San Francisco Public Utilities Commission heard an SSIP update Sept. 26 including schedule delays on several projects and approval of a major federal WIFIA loan: a $625 million loan for the biosolids digester project, the largest single WIFIA allocation announced, officials said.
Karen Kubik, director of the wastewater capital program at the San Francisco Public Utilities Commission, told commissioners Sept. 26 that the Sewer System Improvement Program (SSIP) is continuing despite schedule delays on several projects and that the agency has secured major financing for its biosolids project.
“Phase 1 is a $2.9 billion program across 70 projects,” Kubik said, adding that the program has expended $463 million and is about 19.2 percent complete. She identified recently designated “red dot” projects — those with schedule delays of more than six months or cost increases exceeding 10 percent — including a 20‑month delay at Cayuga Avenue stormwater detention, cost increases under analysis for Folsom area stormwater work, and a deferral of permanent barriers at Seventeenth and Folsom to allow property‑owner coordination.
Kubik said the agency submitted its biosolids digester facilities project to the Environmental Protection Agency’s WIFIA program and was selected for a $625 million loan, which she described as the single largest WIFIA allocation nationwide. The funding is intended to support construction of digesters and associated energy‑recovery facilities that reduce the SSIP’s land and equipment footprint.
She also reviewed the headworks project at the Southeast Plant, work at the Bruce Flynn pump station, and multiple construction projects underway including outfall rehabilitation near Pier 33–35. Kubik said the headworks scope includes complex hydraulics and site preparation; contractors’ bids for the first site‑prep package were expected shortly.
On workforce metrics, Kubik reported that San Francisco residents accounted for 35 percent of all hours on active SSIP contracts — exceeding the 30 percent requirement — generating roughly $6.7 million in wages and benefits. She said apprentices accounted for 72 percent of required apprentice hours, with 155 apprentices working nearly 44,000 hours and earning about $2.1 million in wages and benefits; 41 percent of apprentices reside in District 10.
Kubik said staff will return in October to present a capital prioritization plan as the agency considers Phase 2 and Phase 3 choices, including whether to pursue a Phase 2a and how to balance affordability and program scope.
The commission did not take formal action on SSIP at the meeting; Kubik said the agency will bring contract approvals and sole‑source requests back to the commission as those items are ready for decision.
