The U.S. Environmental Protection Agency has announced a $34 million loan to help fund a major stormwater infrastructure project aimed at reducing flood risks in San Mateo County.
The financing, provided through the Water Infrastructure Finance and Innovation Act program, will support the Daly City Joint Powers Financing Authority’s Vista Grande Drainage Basin Improvement Project, according to Daly City officials.
EPA officials said the project will increase stormwater system capacity and reroute runoff to Lake Merced.
Planned upgrades include replacing an undersized canal, enlarging a tunnel, improving the overflow system, and constructing a new outlet to the Pacific Ocean.
“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.
City officials said the improvements are expected to enhance water quality and help stabilize lake levels while reducing flood risks in surrounding communities.
The loan’s low-interest and flexible terms are projected to save the authority about $2.6 million over time. Construction and ongoing operations are expected to create about 500 jobs, city officials said.
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