A&O Shearman advised the U.S. Environmental Protection Agency (EPA) on a USD251 million Water Infrastructure Finance and Innovation Act (WIFIA) loan to the Las Virgenes-Triunfo Public Financing Authority in Los Angeles and Ventura Counties, California.
The financing supports the Pure Water Project, an estimated USD500m initiative to upgrade aging drinking water infrastructure and advance water reuse technologies. The project is being developed through the Las Virgenes–Triunfo Joint Powers Authority, which is longstanding partnership between Las Virgenes Municipal Water District and the Triunfo Water and Sanitation District.
The Pure Water Project will construct an advanced water purification facility to transform recycled water into a safe drinking water supply for western Los Angeles and eastern Ventura Counties. The project will also upgrade the Tapia Water Reclamation Facility, construct approximately 20 miles of new pipelines, and complete improvements to water pump stations and the Las Virgenes Reservoir. Construction, which uses a progressive design-build structure, began in spring 2026 and is anticipated to be completed by 2029, with operations expected to begin in 2030.
The EPA's WIFIA loan is a critical component of a broader USD335m state and federal financing package that also includes USD84m in loans and grants through the California State Water Resources Control Board.
When fully operational, the project is expected to provide up to 30% of the region's drinking water supply from a local, drought-resilient source, eliminating the community's complete reliance on imported water from Northern California. The project is also designed to alleviate demand on Northern California water supplies, increasing availability for Central Californian agriculture.
“This critical water infrastructure financing will help strengthen long-term water security for communities in the U.S.’s second-largest metropolitan area for years to come. A financing of this complexity—one that involves the WIFIA Loan, State Revolving Funds and other sources, and a complex, multi-stakeholder joint powers authority JPA structure—required the kind of structuring advice and tailoring of documentation that our team does best."
Paul Epstein
Partner
The A&O Shearman team was led by New York-based Energy, Natural Resources, and Infrastructure partner Paul Epstein and associates Kaja Niewiarowska and Rachel Goldberg.