The Idaho Department of Environmental Quality has awarded Sandpoint $40.5 million to fund upgrades to the city’s wastewater treatment plant, the agency announced May 15. The award represents a significant step forward in a project voters approved last fall and one that city leaders say is critical to the long-term function of Sandpoint’s water infrastructure.
Of the total award, $38 million comes as a low-interest loan, with the remaining approximately $2.5 million provided as a grant through Legislative Supplemental Funds. In March, the city had requested an additional $22 million from DEQ to fully cover the costs of the project’s first phase, meaning the latest award moves the city substantially closer to that goal while leaving a remaining funding gap to address.
Phased Approach and Alternative Treatment Method
Sandpoint Public Works Director Ellis explained the project’s phased structure at a City Council meeting in March, noting that future construction phases remain part of the plan. “One of the commitments that we made to the public with that bond election was to pursue funding, and this was one of the funding sources that we targeted,” Ellis said.
Even as funding solidifies, city officials are still working to determine the final design of the plant. Mayor Jeremy Grimm and city staff hosted DEQ Director Jess Byrne in early May to make the case for an alternative treatment approach known as “wet weather treatment.” If approved, the method would allow Sandpoint to construct a smaller facility — one Grimm says could reduce project costs by roughly $10 million.
The push for an alternative method stems from a persistent problem with infiltration and inflow, a condition in which groundwater and snowmelt enter the city’s sewer collection pipes. The city has already spent around $10 million trying to reduce that problem, but on high-flow days, the volume of water moving through the plant can still spike dramatically — from a typical 2 to 3 million gallons up to around 10 million gallons on peak days.
Under the wet weather treatment model, the heavily diluted high-flow water would receive primary filtration and disinfection rather than full treatment. “Because (I&I water) is so diluted, we can simply run it through pre-filtration and then disinfection, and it still meets the requirements for what we put in the river,” Grimm said in late April.
Following the early May meeting with DEQ leadership, Grimm expressed cautious optimism, though no immediate decision is expected. “They did not point out any specific technical reasons or objections to what we would like them to consider,” Grimm told the council on May 6. He noted the agency is working through a backlog of more than 60 permits, and a formal resolution on Sandpoint’s request is still some time away.
Bond Approval and Cost Impact on Utility Ratepayers
Sandpoint residents approved a $130 million bond for the wastewater plant in November 2025 by a wide margin. When the bond was presented to voters, city officials pledged to aggressively pursue grants and low-interest financing to reduce the financial burden on utility customers, who ultimately bear responsibility for repaying borrowed funds. The DEQ award reflects that commitment in action.
Grimm has indicated he does not expect any physical construction to begin until 2027, meaning the city still has time to secure remaining funding and finalize design decisions before breaking ground.
The outcome of the DEQ permitting process — particularly whether Sandpoint receives approval for the wet weather treatment approach — could significantly shape both the size of the facility and the final cost to ratepayers. City officials plan to continue engaging with DEQ as the permitting backlog works through the queue.
For additional coverage of local infrastructure and government decisions across Bonner County, see related reporting on the district’s maintenance of LPOSH facilities, another significant capital asset issue facing area government bodies.