Reclaimed Water Project Aims to Protect Potable Supply
Corpus Christi is advancing water sustainability through an agreement that shifts Valero Refining’s industrial cooling from potable water to treated
wastewater. This move will conserve potable water for residents and reshape industrial sourcing.
Under the plan, Valero may begin using millions of gallons of treated effluent each day for its refinery cooling towers within the next few years. By redirecting non-potable water to industry, the city aims to reduce drinking water strain and improve supply reliability.
“This is smart, forward-thinking,” said Paulette Guajardo, emphasizing that the agreement supports both economic development and water security.
City Council Approves 30-Year Agreement.
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Corpus Christi City Council approved the 30-year agreement during its January 13 meeting, authorizing pricing terms and infrastructure development needed to deliver reclaimed water at scale. Initial deliveries could reach up to 3 million gallons per day, treated to standards suitable for industrial operations.
Eventually, reclaimed water to Valero may reach 8 million gallons daily from the Greenwood Oso plants. This phased approach provides flexibility while keeping long-term conservation goals in focus.
Major Infrastructure Investment by Valero
To support the project, Valero must first design, fund, and construct extensive infrastructure improvements within three years. Specifically, these include new transmission lines and storage tanks necessary to transport and store treated wastewater.
Accordingly, city officials estimate the capital investment will range between $70 million and $100 million. Once completed, ownership of the assets will transfer to the city, thereby expanding public water infrastructure without requiring upfront municipal spending.
Meanwhile, Interim Corpus Christi Water COO Nick Winkelmann said timing is critical, stressing the need to offset potable water demand. In turn, supplying existing industrial customers with effluent water is considered one of the most effective ways to achieve that goal.
Part of a Broader Reclaimed Water Strategy
The Valero agreement is one component of a larger city initiative to generate up to 16 million gallons of treated effluent per day. Over time, reclaimed water sold to Valero could reach 8 million gallons daily from the Greenwood and Oso plants.
In addition to purchasing reclaimed water, Valero will reimburse the city for chemicals, electricity, and mutually agreed-upon treatment processes. The company will pay its proportional share of operating and maintenance costs, ensuring taxpayers do not bear the financial burden.
Notably, recycled water used for industrial purposes will be exempt from drought restrictions that apply to treated drinking water. Due to its economic importance and its investment in infrastructure, Valero will receive priority access to reclaimed water.
Financial Trade-Offs and Rate Impacts
Shifting Valero to reclaimed water may cut city revenue by $4.7 million, rising to $12.6 million. To offset losses, residential bills may rise by 30 cents per month, or 80 cents if reclaimed water reaches 8 million gallons per day.
City Councilman Gil Hernandez acknowledged the temporary revenue impact but stressed the long-term payoff. As reclaimed water is adopted by more users, the city expects to recapture value by selling conserved potable water elsewhere.
Long-Term Gains for Residents and Industry
Despite initial costs, city leaders view the Valero wastewater agreement as a strategic investment in resilience. By aligning industrial growth with sustainable water management, Corpus Christi can meet future demand without straining its drinking water supply.
City leaders say the partnership shows how cities and industry can jointly protect water resources now and in the long term.
