KBRA Releases Research – Los Angeles Water Treatment Plant Spill Shifts Debate From Sustainability to Maintenance

NEW YORK--(BUSINESS WIRE)--KBRA releases research discussing how the City of Los Angeles’ plans to meet sustainability and resiliency goals were undermined by a massive raw sewage spill at the city’s Hyperion Water Reclamation Plan (HWRP) in July 2021.

Los Angeles is at the vanguard of efforts to improve drought resiliency and reduce reliance on imported water. Officials plan to invest significant sums to fortify critical systems against climate risk while increasing water storage and rainwater reclamation, aiming to locally supply 70% of the city’s water and recycle 100% of its wastewater by 2035. In a major setback to these efforts, last year’s 17 million-gallon spill at HWRP temporarily shifted stakeholder attention away from the city’s ambitious One Water LA2040 Plan and toward the importance of daily operations and maintenance.

The report notes how environmental harm from an unexpected incident such as the HWRP spill has the potential to upend capital budgets, stakeholder engagement, and public trust. This incident highlights the overarching importance of emergency response planning and communication—as well as the regular inspection, repair, and replacement of critical facilities and equipment—to advancing environmental, social, and governance (ESG) goals.

Click here to view the report.

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KBRA is a full-service credit rating agency registered in the U.S., the EU and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.