Ordinance authorizing an agreement for the Provision and Sale of Recycled Water from the Greenwood Wastewater Treatment Plant to Valero Refining - Texas, L.P.

The City Council is considering an ordinance to authorize a 30-year agreement with Valero Refining – Texas, L.P. for the provision and sale of recycled water from the Greenwood Wastewater Treatment Plant (GWWTP). This agreement will allow Valero to use up to 8 million gallons per day (MGD) of Type II reclaimed water for its industrial cooling operations. Valero will undertake significant capital investments, including designing, constructing, and funding a 24-inch transmission pipeline, a 10-million-gallon storage tank at GWWTP, and associated right-of-way, which will be dedicated to the City upon completion. Valero will purchase the recycled water at the City's raw water cost adjustment rate and reimburse the City for associated operational costs. The agreement prioritizes Valero's supply due to its economic importance and infrastructure investment, and Valero's recycled water use will be exempt from drought restrictions.

This agreement supports industrial water conservation and reduces demand on potable and raw water supplies, contributing to regional water-supply resiliency. Residents may see a slight increase in water bills if this transition from treated water sales to recycled water sales occurs today, due to an estimated revenue loss for the city, but the long-term benefits include enhanced water security.

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