EPA Announces $34 Million WIFIA Loan to Improve Stormwater Management in San Mateo County, California
DALY CITY, Calif. (April 7, 2026) – U.S. Environmental Protection Agency (EPA) is announcing a $34 million Water Infrastructure Finance and Innovation Act (WIFIA) loan to the Daly City Joint Powers Financing Authority to increase the capacity of its stormwater management system to reduce the risk of flooding that impacts communities in San Mateo County, California.
“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 EPA Pacific Southwest Region Water Division Director Tomás Torres. “EPA’s low-interest, flexible water infrastructure financing helps communities make investments in protecting public health and natural resources while uplifting local economies.”
The Daly City Joint Powers Financing Authority will use WIFIA financing for its Vista Grande Drainage Basin Improvement Project, which will increase capacity and reroute stormwater runoff to Lake Merced. This project will include replacing an undersized canal, enlarging its tunnel, upgrading the existing overflow system to Lake Merced, and building a new outlet structure to the Pacific Ocean. These stormwater system improvements will help stabilize Lake Merced’s surface levels and improve regional water quality.
EPA’s WIFIA program will provide the Daly City Joint Powers Financing Authority flexibility to draw funds as needed and access cash on hand to pay for project components, which reduces upfront project costs. As a result, EPA’s WIFIA financing will save the Authority approximately $2.6 million over the life of the loan. Construction and operations will create an estimated 500 jobs.
"This Water Infrastructure Financing and Innovation Act loan represents a critical investment in Daly City and the region’s infrastructure and environmental stewardship,” said City Manager Thomas J. Piccolotti. “The Vista Grande Drainage Basin Improvement Project will enhance system reliability, protect water quality, and support our community for generations to come. We appreciate the EPA’s partnership in helping advance this vital work."
EPA’s WIFIA program provides a powerful financial tool that can significantly accelerate investments in water infrastructure to protect human health and the environment while saving communities millions of dollars. Since issuing its first loan in 2018, EPA’s WIFIA program has announced $23 billion in financing water infrastructure projects that are strengthening drinking water, wastewater, and stormwater infrastructure while creating over 172,000 jobs. Through its flexible financing features and competitive interest rates, WIFIA helps communities save money, and even accelerate water infrastructure investments.
WIFIA funding is available to support additional water infrastructure projects, including up to $6.5 billion available to water systems and another $550 million available to State infrastructure financing authorities. EPA is currently accepting letters of interest.
Learn more about EPA's WIFIA Program and water infrastructure investments, including how to submit a letter of interest.
Background
Established by the Water Infrastructure Finance and Innovation Act of 2014, the WIFIA program is a federal loan program administered by EPA. The WIFIA program aims to accelerate investment in the nation’s water infrastructure by providing long-term, low-cost supplemental credit assistance for regionally and nationally significant projects. The WIFIA program has an active pipeline of pending applications for projects that will result in billions of dollars in water infrastructure investment and thousands of jobs.
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