The Los Angeles Department of Water and Power (LADWP) is implementing a historic settlement agreement with Honeywell that will significantly advance the remediation of groundwater in the San Fernando Basin (SFB). Per the 2019 settlement, Honeywell is designing, funding, and constructing groundwater treatment facilities. LADWP and Honeywell sought to avoid the fragmented, short-term approaches to groundwater contamination cleanup used in the past in this basin. The two parties, working with the US EPA, cooperated to develop a more coordinated and robust long-term approach to tackle the pollution issues without resorting to litigation.
Once constructed, Honeywell will pay LADWP to operate the facilities for as long as needed to meet the remedial action objectives of this portion of the second interim remedy for the North Hollywood Operable Unit (NHOU), which is part of the San Fernando Valley Superfund Site. LADWP estimates that the avoided cost of replacement water will provide up to $717 million in cost savings to its ratepayers over the next 50 years.