San Francisco, CA — The California Water Association (CWA) today announced it has been selected as the beneficiary of a prestigious $50 million grant award, to reach $100 million with matching funds, from the Grid Resilience and Innovation Partnerships (GRIP) program under the U.S. Department of Energy (DOE) to accelerate electric grid resilient projects. The grant program will be implemented across CWA members’ local utility service areas in partnership with Generac Power Systems.
The aim of the grant is to advance clean energy solutions across water utility infrastructure to enhance grid reliability, conserve resources, and protect air quality for communities throughout California. In collaboration with Generac, diverse union contractors, local community-based organizations (CBO,) and workforce development partners, CWA member water utilities will install clean battery storage systems at water treatment sites across the state. These microgrids will allow water utilities to utilize reliable, clean energy solutions to deliver uninterrupted water service, even during extreme heat and other stressors to the state electric grid.
“Part of our dedication to being a responsible corporate citizen means investing in innovative energy solutions that help protect our planet, yet they are often costly to implement,” said Martin A. Kropelnicki, Chairman & CEO of California Water Service (Cal Water), CWA’s largest member company. “This grant from the Department of Energy will help regulated water utilities like Cal Water provide cleaner energy, reduce the strain on the electrical grid, and improve water system resiliency during emergencies and periods of peak demand, benefiting our communities while supporting customer affordability.”
Transforming Grid Resilience with Water Utilities
The partnership between CWA and Generac began after California’s extreme heatwave in September 2022, which put the electric grid under unprecedented stress. During that event, water utilities were called upon to manually activate backup diesel generators to avoid service disruptions. Recognizing the need for cleaner, more efficient solutions, CWA and Generac designed an innovative strategy to install resilient microgrids on water treatment sites across the state. These clean microgrids will be powered by battery energy storage systems. This groundbreaking project will lead to installation of microgrids across approximately 100 water utility sites, with at least 55% of those investments benefiting Disadvantaged Communities (DACs).
“Generac is excited to be partnering with CWA on these groundbreaking investments for California and the water utilities,” said Jeff Pontius, Vice President of Strategy and Development at Generac. He added, “These projects will demonstrate the clean and resilient benefits available to critical facilities, and the grid, by leveraging behind the meter microgrids.”
Commitment to Affordability, Justice, and Equity
The project prioritizes affordability and environmental justice by focusing investments incommunities most affected by climate impacts. As part of this effort, $4.4 million will be invested directly into DACs, with 70% of non-BESS construction work awarded to Minority- and Women-Owned Businesses (MWBEs), ensuring community-centered economic impact. While infrastructure investments can be costly, the funds provided through this program will help mitigate rate impacts on water customers while improving local operating systems.
In alignment with the federal Justice40 initiative, this program will foster partnerships with local organizations to promote energy equity and create approximately 200 union construction jobs and 33 direct positions, along with scholarships and internships to inspire careers in clean energy. The project also delivers significant environmental benefits, reducing annual greenhouse gas emissions by an estimated 20,800 metric tons. Together, these actions will reinforce the project’s commitment to advancing equity, economic opportunity, and sustainability in the communities it serves.
“Our water utilities are ready to lead the way in creating a resilient, clean energy future in California,” said Jennifer Capitolo, Executive Director of the California Water Association. “This project will not only strengthen grid operations but also deliver long-term benefits to the communities we serve, including improved air quality, local job creation, and rate stability.”
A Model for Nationwide Replication
The GRIP-funded project offers a blueprint for scaling clean energy solutions across the U.S., with the potential to transform critical infrastructure in other regions. By combining microgrid technology with advanced data-driven optimization, the CWA / Generac project will pave the way for more equitable and sustainable grid operations nationwide.
With the coalition of eight water utilities, diverse union contractors, and community-based partners already in place, the project team is ready to mobilize. Together, they will deliver a resilient, equitable, and scalable energy solution that ensures reliable water service even in the face of future climate challenges.
About the California Water Association
The California Water Association (CWA) represents 89 private regulated water utilities throughout California, providing safe, reliable water to over 6 million customers.
For more information, contact:
Sarah Musiker
Director, External Affairs
California Water Association
Email: news@calwaterassn.com
