Infrastructure Update: Federal Grants & Engineering Progress

I want to take a moment to provide residents with an update on the City’s ongoing wastewater infrastructure improvements. These efforts are part of a long-term plan to strengthen critical systems, meet regulatory requirements, and plan responsibly for the future.

The City’s work is supported by significant federal grant funding and ongoing coordination with our engineering firm, Freese and Nichols, as well as our Infrastructure Task Force. While infrastructure projects can be complex and take time, steady progress is being made.

Here’s a clear update on where things stand:

Federal Funding Secured

Runaway Bay has been awarded over $9.4 million in federal funding to support wastewater system improvements:

• $1.75 million: EPA STAG Clean Water funding (FY 2024)

• $6.7 million: U.S. Army Corps of Engineers (USACE) Section 5138 Texas Environmental Infrastructure Program

• $1 million: Additional EPA STAG funding awarded in January 2026

These funds were secured through the federal appropriations process with support from Congressman Ronnie Jackson.

EPA Grant Status (Reimbursement Program)

The EPA STAG program operates as a reimbursement grant, meaning:

• Eligible project costs are reimbursed at 80% federal / 20% local match

• Funds can reimburse eligible work performed prior to final approval

• The City must apply, meet federal requirements, and receive EPA approval before reimbursement begins

Key milestones:

• EPA implementation guidance released mid-2024

• Freese and Nichols engaged by City Council in June 2025

• A comprehensive preliminary facility assessment was completed

• The EPA has approved the City’s application and project scope

• A second task order was approved in December 2025

Design work is now underway on:

• WWTP Chlorine Building

• Jim Walters Lift Station

• Port O’Call Lift Station

The 50% design submittal for the Chlorine Building is scheduled for February 5, 2026.

 Good News on Electrical Upgrades

Freese and Nichols also confirmed that Oncor’s upgrades to 3-phase power related to these facilities have been approved for reimbursement under the EPA grant program.

US Army Corps of Engineers (USACE) Status

• The USACE approved Runaway Bay’s Section 5138 Letter Report in November 2025

• The City is finalizing the Project Partnership Agreement (PPA)

• Federal funding is projected to become available in Q2 of 2026

Unlike the EPA program, USACE funding cannot reimburse work completed prior to final approval, which is why engineering work under this program will begin after funds are released.

Initial USACE-funded efforts are expected to include:

• A comprehensive facility assessment

• A long-term capital improvement plan

• A rate study to support sustainable infrastructure planning

What This Means for Residents

✔️ Major federal funding is secured

✔️ Engineering work is actively underway

✔️ Projects are being prioritized based on professional assessments

✔️ The City is following federal compliance requirements

✔️ Long-term planning is focused on reliability, safety, and fiscal responsibility

This work is part of a multi-year effort to develop a responsible master plan for Runaway Bay’s infrastructure, focused on public health, regulatory compliance, and long-term reliability.

My goal is to ensure that today’s decisions are guided by careful planning, professional expertise, and fiscal responsibility,. With the support of our Infrastructure Task Force, engineering partners, and federal funding, we are taking deliberate steps to assess our systems, prioritize improvements, and plan responsibly.

I will continue to share updates as milestones are reached.

— Mayor Herman White