MARYSVILLE, Calif. (Sept. 3, 2025) – Yuba Water Agency’s board of directors yesterday approved a loan of up to $80 million for the City of Wheatland and Olivehurst Public Utility District’s joint Regional Wastewater Transmission and Treatment Facilities Project, a transformative effort to modernize and regionalize wastewater service in South Yuba County.
“This project is critical to protecting our groundwater and surface water while ensuring safe, affordable wastewater treatment for communities in the south part of the county,” said Gary Bradford, Yuba Water board director and county supervisor for Wheatland, Plumas Lake and the surrounding areas. “It’s an incredible opportunity to be able to support a project that I think will be truly transformational and support the region’s future economic growth.”
The first phase of the project, estimated at $155 million, will enable wastewater from the City of Wheatland to be treated by OPUD’s existing treatment plant and fund some modernization of OPUD’s facilities. A future, second phase, estimated to cost approximately $40 million, will extend wastewater and water lines along 40 Mile Road.
Without this project, Wheatland’s existing wastewater treatment plant, built in the 1960s and nearing the end of its working life, is expected to fail within three years. Wheatland estimates that constructing a new, stand-alone treatment facility would cost more than $250 million and add approximately $1,000 a month to Wheatland utility bills, an unaffordable burden on Wheatland’s approximately 1,300 ratepayers. The regional approach keeps costs manageable, with Wheatland rates only expected to increase by a few dollars per month, instead. Meanwhile, OPUD will be making better use of the capacity at their facility, and they do not expect to have rates for their customers increase as a result.
“Wheatland residents have faced the very real prospect of catastrophic rate increases if we were forced to replace our treatment plant on our own,” said Wheatland City Manager Bill Zenoni. “This regional project and our partnership with OPUD, Yuba County and Yuba Water provide a sustainable and affordable path forward and reliable service for years to come.”
Combined with a recently approved $75 million grant from the State Water Resources Control Board, $13.5 million in direct contributions from Wheatland and OPUD and other anticipated funding, the Yuba Water loan approval allows the project to move forward to the construction bidding phase, with a goal to break ground on construction later this year or in early 2026. Final loan terms will be developed and finalized later this year, once all other funding opportunities have been realized.
In addition to protecting water quality and reducing long-term costs for residents, the regional system will ensure regulatory compliance and provide the infrastructure necessary to support an estimated 9,000 jobs and development expected in South Yuba County. The project also creates the potential for Beale Air Force Base to connect to the regional system in the future.
Although Yuba Water is not a municipal water or wastewater provider, the agency is Yuba County’s Groundwater Sustainability Agency and has the expertise and resources to support this complex project, which will protect groundwater and surface water by eliminating discharges into the Bear River during high flows.
During yesterday’s meeting, Yuba Water’s board also authorized staff to research the potential for Wheatland, OPUD and Yuba County to form a new regional wastewater authority in the future, which could be formed through a joint powers agreement.
Learn more about this project at engage.yubawater.org/south-county-regional-wastewater.