Water Pollution Control Facility upgrade deemed major ‘economic development’

The renovation of a city’s water treatment facility, no matter how extensive, is generally not viewed as an economic development effort. But in Cedar Rapids’ case, the planned $277.5 million upgrade of the Water Pollution Control Facility (WPCF) is being seen as one of the largest economic development endeavors in Cedar Rapids history – and not just because of its eye-popping bottom line. City council member Tyler Olson made the landmark assertion, in so many words, during the May 14 council meeting, at which the council approved proposed plans, specifications, form of contract and estimated cost for the WPCF project. “When we discussed the Google project, council member (Dale) Todd mentioned it's one of the largest economic development projects that the city has taken on,” said Mr. Olson of the planned upgrade. “I mean, this is right up there. And that's what this is – it’s an economic development project, because communities that are optimistic about their future, that are growing and progressive, have to make this kind of investment. And it's because we have made this kind of investment over a decade that we have the industry, the commerce and the growing number of people living here that we do.” The Cedar Rapids Water Pollution Control Facility, at 7525 Bertram Rd. SE near Bertram, was constructed in the late 1970s and brought online in 1980. It is the state’s largest water treatment plant by volume and a vital facility for some of the area’s largest industrial companies. Cedar Rapids utilities director Roy Hesemann said the facility serves all of Cedar Rapids as well as Marion, Hiawatha, Robins, Palo and a small portion of Linn County – a population base of approximately 180,000. “This facility is rather unique, since we do not require industry to pretreat their waste to low domestic strength levels,” Mr. Hesemann told the council. “In essence, we are an industrial wastewater plant owned and operated by the city of Cedar Rapids. By treating the high-strength wastes, we treat the equivalent organic loadings of a city of 1.9 million people.” When plans for the latest upgrade were first made public in December 2021, Mr. Hesemann said that when the facility first came online, it utilized state-of-the-art technology, but that technology is now outdated and no longer supported by vendors. Major improvements made to the plant since 1980 have included anaerobic pre-treatment of wastewater, lime stabilization, ash lagoons, disinfection upgrades and odorous air scrubbing systems. After the flood of 2008 that knocked the treatment plant offline for 12 days, $85 million was spent on post-flood repairs, and another $20 million was invested in a flood control project to provide future protection. “These investments helped to extend the useful life of the facility,” Mr. Hesemann told the council in 2021. “But now’s the time to make generational upgrades.” Planning for the latest Water Pollution Control Facility upgrade began in 2015, including outreach meetings with key industrial and residential stakeholders. Mr. Hesemann said the primary elements of the project will incorporate improvements in the plant’s processing of solids, including Aerobic Granular Sludge Basins (AGS), which will facilitate organic waste processing in a smaller footprint; construction of anaerobic digestion facilities “where we'll have better destruction of biomass”; and a new system to capture biogas from all the waste entering the plant – gas that will be captured, scrubbed, and sold as a renewable natural gas, or RNG. The newly upgraded facility will be constructed using a modular design to allow for future expansion, Mr. Hesemann said, and “begins our journey of meeting the Iowa Nutrient Reduction Strategy” It will also provide steady work for local and regional contractors for the next four years. Other improvements will include various civil improvements, utilities, modifications, and additional backup generation capacity. “Our goal has always been to provide cost-effective, reliable treatment of industrial and residential wastewater to support our region's economy,” Mr. Hesemann said. “WPC(F) is an economic driver for the entire community, and this project will provide the resources to support our existing industry, and attract new industry, while being good stewards of the environment.” Various resources will be used to finance this project, including the Iowa DNR state revolving fund using both 20- and 30-year low interest loans, cash reserves, capacity charges from our partnering adjoining communities, and user fees. However, Mr. Hesemann said, user fees for both domestic and commercial customers are expected to remain “very reasonable and attractive” compared to other Iowa communities Officials have also applied for both an inflation reduction tax credit and an EPA climate pollution reduction grant to help fund the project, Mr. Hesemann said. Goals of the project, Mr. Hesemann said, include the ability to continue to provide cost-effective, reliable treatment for industry and residential customers that supports the region’s economy; replacing facilities nearing the end of their useful life; addressing environmental regulations; and incorporating the renewable natural gas system, which will bring additional revenue and new Renewable Identification Numbers (RINs) tax credits to the city. And by expanding the city’s water treatment capacity, the newly updated facility could help lure new industries to the area that generate large quantities of wastewater, which will in turn help spread the cost of improvements among all ratepayers, Mr. Hesemann said. Bids for the project will be let June 19. Construction is expected to begin later this summer and conclude in early 2029, Mr. Hesemann said. “I just can't overstate how cool this project has been,” council member Ashley Vanorny said. “It may not be at the top of anybody's thing that they think about when they wake up in the morning, but it's been a long time coming, and the tech behind it, the tremendous amount of effort for many years that your team has put into working on this, is to be celebrated. And it fits in really nicely to our climate plans as well.” Future upgrades are also being proposed for other portions of the treatment facility, Mr. Hesemann said in 2021. Those future projects could cost upwards of $400 million, but facility officials aren’t yet ready to plan those upgrades.