A bipartisan federal bill filled with millions of dollars for water and wastewater projects in Santa Barbara County, including the Los Olivos septic-to-sewage initiative, has passed a key committee in the House of Representatives.
Rep. Salud Carbajal, D-Santa Barbara, announced that the House Transportation and Infrastructure Committee advanced the Water Resources Development Act of 2026.
The bill will be considered by the full House and Senate for final passage.
Carbajal said he’s proud to have the federal funding allotment in the bill to strengthen water infrastructure throughout the Central Coast.
“As the bill moves toward final consideration, I will continue working to ensure this essential investment is delivered to our communities,” said Carbajal, a senior member of the House Transportation and Infrastructure Committee.
The bill includes $30 million for the Los Olivos Community Services District‘s septic-to-sewer project.
In 2018, Los Olivos voters seeking to maintain local control overwhelmingly approved the CSD’s formation to solve a nitrate problem contaminating groundwater and concerning regulators. The solution? Eliminate septic tanks and handle wastewater differently.
“This investment gives Los Olivos a once-in-a-generation opportunity to build the solution our community has long supported while ensuring that local decisions remain in local hands,” said Julie Kennedy, board president for the Los Olivos Community Services District. “It allows us to move forward with a project that reflects the needs and priorities of the people who live and work here.”
Since voters approved the district’s formation, the CSD board has spent years analyzing collection, treatment and disposal methods.
The CSD proposes sending the waste about 3.5 miles to connect to Solvang’s wastewater system. The city would then treat and dispose of the LOCSD’s wastewater at its regional facilities.
Once the CSD pinpoints costs of the final solution, owners of the approximately 370 parcels would vote whether to proceed. That vote is likely to occur in 2027.
The federal funding is expected to help reduce the financial burden for property owners when the community switches from septic tanks to a wastewater treatment solution.
Other funding proposals listed in the bill include:
- $6.3 million for Lompoc’s modernization of the city’s water treatment plant and construction of a stormwater treatment and flood control system
- $3.2 million for the Summerland Sanitary District to upgrade water and wastewater infrastructure
- $2 million for Solvang to improve its water and water supply infrastructure, including the distribution systems
- A procedural step that could unlock federal funding in the future for the Lower Mission Creek Flood Control Project
Another project elsewhere in Carbajal’s district could get help from the bill with $25 million included to replace metal pipes for Ojai’s stormwater collection system. If passed, the bill also would authorize Morro Bay’s seawall repair and harbor enhancements project.