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OWASA says Clearwell will proceed; PFAS treatment deferred as agency funds research
Summary
OWASA officials told the Orange County Board that they will move forward with a Clearwell project (potentially through 2031) while deferring a separate PFAS treatment project. OWASA reported a five-year $250 million CIP, recent multi-year rate increases, and $1.5 million secured for PFAS research.
OWASA Board Chair Michael Hughes told the Orange County Board of Commissioners on Feb. 17 that OWASA will proceed with construction of a Clearwell while deferring a separate PFAS treatment project, citing site constraints, deferred regulations and the need to plan for PFAS residuals and landfill leachate management. “If started now, the Clearwell project would run through 2031,” Hughes said.
Hughes outlined OWASA’s five-year Capital Improvement Program, which totals about $250 million; roughly $200 million of that amount is tied to two major projects discussed in the presentation. He reviewed recent water-rate history — 5% in FY2022, 16% in 2023, 9% in 2024, 15% in 2025 and 7% in 2026 — and said OWASA generates approximately $55 million in annual gross revenue and about $10 million in net revenue.
On PFAS, Hughes said OWASA’s staff has been successfully managing treatment to meet proposed regulatory limits in treated water, and that raw water at Cane Creek Reservoir contained about 110 parts per trillion of PFAS while treated water is being reduced to roughly seven parts per trillion under current processes. He said OWASA organized a working group with public and environmental health experts and that the group secured $1.5 million in research funding to study PFAS distribution across Chatham and Orange counties.
OWASA Secretary Johnny Randall described operational responses during Tropical Storm Chantal, including large floodwater management at University Lake and cleanup and temporary measures to pump sewage after a sewer line break. Randall also discussed collaborative work using wildlife corridor mapping to inform streamside stabilization projects.
Board members asked for additional detail on how the Clearwell/PFAS sequencing would affect rates and project timelines. OWASA Deputy Director Stephen Winters said OWASA has been increasing rates to build fund balance ahead of major expenditures and that no borrowing has occurred yet for these projects; staff are assessing how deferring PFAS will affect rate pressure.
Why it matters: the Clearwell and PFAS work account for a large share of OWASA’s near-term capital needs; the Board will follow OWASA’s planning as project timing, funding and regulatory clarity evolve.
