Portland's water treatment plant costs soar past $2.5 billion, with project completion delayed by two years
The cost of Portland's new water filtration plant, one of the most expensive municipal projects in the city's history, has risen by an additional $450 million, bringing the total to over $2.5 billion, according to water officials. This massive project, which has been in the works for eight years, is now facing a two-year delay in completion. The primary reason for the delay is the city's pause in construction due to an appeal from neighbors and critics, as well as the need to address various legal and permitting issues.
The project, which aims to protect public health and comply with federal and state safe drinking water regulations, has faced controversy since its inception. Nearby residents and businesses have raised concerns about noise, air pollution, tree removal, and wildlife impacts. The city has requested a 24-month extension from the Oregon Health Authority for providing filtered water, citing delays during the construction season and the need to address unforeseen site conditions and weather delays.
The extension will shift the city's compliance deadline from 2027 to 2029 for installing the filtration needed to remove cryptosporidium, a parasite that causes diarrhea and can lead to severe symptoms in people with weakened immune systems. In the meantime, the Water Bureau will continue to monitor Portland's water for cryptosporidium, even though it is not currently treated for this parasite under federal drinking water regulations. The city, Multnomah County, and the Oregon Health Authority assure that water from the Bull Run watershed is safe to drink.
The project's rising costs can be attributed to additional contracting costs incurred during the pause in construction, permitting and legal costs associated with the land-use approval process, as well as rising labor and material costs. The City Council will determine how to cover the additional costs, which may include customer rate increases, federal loans, and long-term bonds. The project has secured two low-interest federal loans, which will help smooth out rising rates.
The Water Bureau has also changed the sequence of its capital projects to spread out the impact on ratepayers. The council will review the Water Bureau's budget, including the Bull Run project, in the coming weeks. The project is expected to account for about a third of the planned increases to the water portion of residents' bills, which have already seen a significant hike last summer. Despite the recent rate increase, Portland's water rates remain competitive compared to similar utilities nationwide.
The filtration plant will strengthen the water system, both on a daily basis and during emergencies. It will address risks such as the Camp Creek fire, which threatened the quality of the water supply, and heavy rains that can cause sediment issues. The project has faced legal challenges, with the Oregon Land Use Board of Appeals ruling that the county failed to determine the impact on natural resources. Opponents can still appeal to the Oregon Court of Appeals, and community groups have filed land use appeals, which were ultimately dismissed.
