Washougal nabs $22.5M loan for biosolids facility construction

The Washington State Department of Ecology (DOE) has awarded the city of Washougal a low-interest $22.5 million loan for the City’s biosolids facility construction project.

The funding is part of the DOE’s 2025 Water Quality Combined Funding Program, which is distributing $309 million to dozens of Washington cities and jurisdictions for 136 clean-water projects and infrastructure investments, according to the DOE.

“The Council and staff were very pleased to learn that we had been awarded this Clean Water loan,” Washougal City Manager David Scott said. “We were not surprised that we ranked very highly on the loan list because we knew that we had a very strong application, but there is always some uncertainty until the list is announced.”

The City plans to pay for the $34.5 million project with the DOE loan, $11 million from its wastewater fund, and $1.9 million in direct federal appropriations, according to Scott.

“This loan is very significant for the funding of the project,” he said. “The loan is provided at very low interest, making it more affordable for our community. The very favorable terms of our loan are 1.6% interest for 30 years. The federal Drinking Water and Wastewater Infrastructure Act of 2021 provided significantly more funding for clean water projects than had previously been available, making this loan possible.”

The DOE stated in a news release that its clean-water project funding comes from a mix of state and federal dollars, including approximately $40 million from the Infrastructure Investment and Jobs Act that President Joe Biden signed into law, Nov. 15, 2021.

“Our top priority is to support communities. Across Washington, we are using innovative ideas to help put money to work faster and with greater benefits,” DOE Water Quality Program Manager Vince McGowan stated in a news release. “We are excited to support clean-water pilot projects that are already proving successful and to continue trying new approaches.”

Washougal’s current biosolids management strategy relies on the storage and treatment of biosolids within four large sewage lagoons that encompass more than 12 acres at the City’s wastewater treatment plant, Washougal Public Works Director Trevor Evers said during a March 2024 Washougal City Council workshop.

The project will construct a facility that will turn solid waste generated from the City’s wastewater treatment process into land-applied, Class-B fertilizer via an aerobic digester. Once the treatment plant is running, the City will decommission its existing lagoon storage system.

The upgrades “are needed to increase the facility’s capacity to process wastewater and address operational issues that have impeded the plant’s ability to meet permit requirements and respond to odor nuisances,” according to a project description.

In March, the Washougal City Council approved a $26 million construction agreement with Woodland-based Stellar J Corp., for construction, which is underway and scheduled to be completed by August 2026, Scott said.

The project is undergoing an environmental justice assessment, required for grant or loan projects worth more than $12 million as mandated under the state’s Healthy Environment for All Act, which addresses environmental health disparities in overburdened communities and for vulnerable populations.

“We are in the process of developing the assessment for this project and welcome any additional conversations about this work,” said DOE Communications Manager Colleen Keltz. “Ecology will finish the assessments for these projects in the coming months prior to finalizing the project’s funding agreement.”

The DOE also awarded the City a $278,131 for its “Q” Street infiltration pond retrofit project, which will redirect stormwater runoff from a 22-acre drainage basin currently lacking proper flow control and treatment to an underutilized infiltration pond; and a $498,445 grant for restoration efforts to enhance water quality and protect habitat along Campen Creek.