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Valley Water Board Chair Tony Estremera statement on invitation to apply for WIFIA loan for Pacheco Reservoir Expansion Project

April 14, 2021
A photo of the existing dam at Pacheco Reservoir

Valley Water is pleased the U.S. Environmental Protection Agency invited our organization to submit a loan application for funding under the Water Infrastructure Finance and Innovation Act (WIFIA) for the proposed expansion of Pacheco Reservoir in Santa Clara County.

The primary goal of the Pacheco Reservoir Expansion Project is to help ensure a more reliable water supply for all our communities in Santa Clara County. The proposed project could boost Pacheco Reservoir’s operational capacity from 5,500 acre-feet to up to 140,000 acre-feet, enough to supply 1.4 million people with safe, clean water for one year in an emergency.

The Pacheco project aims to reduce the frequency and severity of water shortages during droughts, provide water supply during emergencies, and improve the habitat for the native steelhead population, a species federally listed as threatened. 

A long-term, low-cost supplemental WIFIA loan would result in significant financing cost savings for the Pacheco Reservoir Expansion Project and lessen the potential impacts to water rates in Santa Clara County.

Our Board of Directors is continuing to evaluate the Pacheco project and its various alternatives.

Please visit for more information about the proposed Pacheco Reservoir Expansion Project.

Valley Water manages an integrated water resources system that includes the supply of clean, safe water, flood protection and stewardship of streams on behalf of Santa Clara County's 2 million residents. The district effectively manages 10 dams and surface water reservoirs, three water treatment plants, an advanced recycled water purification center, a state-of-the-art water quality laboratory, nearly 285 acres of groundwater recharge ponds and more than 294 miles of streams. We provide wholesale water and groundwater management services to local municipalities and private water retailers who deliver drinking water directly to homes and businesses in Santa Clara County.