Announcement from WaterNow and the Pacific Institute
WaterNow and Pacific Institute are excited to announce that we are now accepting applications for our new Catalyzing Water Efficiency Investments through Debt Financing Project Accelerator. The deadline to apply is March 27, 2026.
The program provides 250 hours of pro-bono technical assistance to public drinking water providers in California and Colorado to increase the reach and impact of their water efficiency programs. Assistance from WaterNow and Pacific Institute through the Accelerator can include:
- Determining the rate savings from debt financing efficiency incentives
- Evaluation of potential water savings from larger-scale investments in incentives
- Comparison of the potential cost of debt financing incentives with the cost of other water supply options
- Developing a range of target spending levels and associated water savings
- Developing language to include in capital plan(s) and bond issuances to ensure water efficiency incentives can be paid for with bond proceeds
- Support to apply for a State Revolving Fund loan to finance efficiency incentives
- Development of a target water savings to inform needed budget
- Documenting how larger-scale water efficiency serves as a source of local supply
- Facilitating discussions with internal finance staff and/or bond counsel to overcome concerns with using debt to finance water efficiency incentives
- Recommendations on how to implement scaled water efficiency investments
Cities and water utilities with established water efficiency incentive programs and a strong commitment to meeting their water efficiency goals by scaling incentives are encouraged to apply. The complete list of Accelerator eligibility criteria is available here. The application can be found here.
Communities across the U.S. have significantly improved their water efficiency over the last several decades. For many, the reduction was substantial enough to offset population growth. While this progress is commendable, new research from the Pacific Institute shows there is significantly more cost-effective water savings available. Research also shows that many efficiency measures are cheaper than new water sources and offer additional social and environmental benefits. Yet, realizing these savings will require additional investment in efficiency measures.
A major barrier is water utility reliance on annual operating budgets to pay for efficiency programs. Several years ago, in response to a WaterNow initiative, the Governmental Accounting Standards Board clarified that water efficiency incentives can be financed like other long-term assets. This enables communities to raise the upfront cash needed to invest in efficiency measures at larger scale. Today, a handful of utilities are now debt financing their water efficiency programs, but there remains a significant opportunity to expand this innovative financing strategy in communities across the U.S.
WaterNow and Pacific Institute’s new Accelerator will help more utilities leverage this opportunity and realize the full water savings and other benefits of efficiency incentives. Selected applicants will be announced by April 30, 2026, and projects will be completed by May 2027.
