San Bernardino Valley, Fontana Water Company and Cadiz Sign Agreement for Perchlorate Treatment in Cactus Basins

Rhea-AI Summary

Cadiz Inc. (NASDAQ: CDZI) has formed a strategic partnership with San Bernardino Valley Municipal Water District and Fontana Water Company (FWC) to address perchlorate contamination in the Rialto-Colton Groundwater Basin. Through its subsidiary ATEC Water Systems, Cadiz will provide specialized water filtration systems to FWC as part of the Cactus Basins Recharge Program.

The initiative is tied to a 200,000 acre-foot water supply agreement between FWC and Cadiz signed in 2024. The program aims to enhance groundwater replenishment and improve water quality in San Bernardino County, supporting the region's efforts to reduce dependence on imported State Water Project water and improve drought resilience.

The partnership represents a significant step in addressing water security challenges in San Bernardino County through a coordinated approach to water infrastructure investment, focusing on local water reuse, groundwater recharge, and contamination cleanup.

Positive

• Partnership enables implementation of critical Cactus Basins Recharge Program
• Leverages existing 200,000 acre-foot water supply agreement with FWC
• Expands Cadiz's water treatment business through ATEC Water Systems subsidiary
• Supports regional water security and reduces dependence on imported water

Negative

• Project implementation depends on parties finalizing binding definitive agreement
• Success contingent on effective treatment of perchlorate contamination
• Faces risks and uncertainties related to water infrastructure development

Cadiz to provide perchlorate treatment to support Cactus Basins Recharge Program as part of region-wide effort to expand groundwater banking.

SAN BERNARDINO, Calif., Sept. 5, 2025 /PRNewswire/ -- San Bernardino Valley Municipal Water District, Fontana Water Company (FWC), and Cadiz Inc. announced today an innovative partnership to address perchlorate contamination in the Rialto-Colton Groundwater Basin. The agreement launches a bold effort to support San Bernardino Valley's proposed Cactus Basins Recharge Program as part of a regional effort to expand groundwater replenishment, improve water quality, and support long-term water supply reliability in San Bernardino County.

Under the agreement, Cadiz will provide specialized water filtration systems to FWC for the treatment of perchlorates to be located at FWC's facilities. These systems are designed to mitigate any potential migration of perchlorate contamination that may occur when San Bernardino Valley commences operation of the Cactus Basins Recharge Program. Cadiz will provide the treatment through the company's wholly-owned subsidiary, ATEC Water Systems, as part of a 200,000 acre-foot water supply agreement between FWC and Cadiz signed in 2024.

"The Cactus Basins Recharge Program is a critical part of our plan to enhance water supply reliability for San Bernardino Valley," said Heather Dyer, CEO/ General Manager for San Bernardino Valley. "We are looking forward to exploring potential opportunities offered through this unique public-private partnership that could address legacy perchlorate contamination while also providing critical groundwater supply benefits to the communities depending on the Rialto-Colton Groundwater Basin."

"One of the most exciting aspects of this partnership for Cadiz is that by deploying cost-effective advanced treatment technology, we can unlock low-cost water supplies for the whole region," remarked Susan Kennedy, CEO of Cadiz. "San Bernardino Valley's leadership on this is a blueprint for a collaborative approach to sustainable groundwater management across Southern California."

"To maintain affordability for our customers, we have to work together to solve water resource issues cost-effectively at a regional level," FWC Vice President, Marty Zvirbulis said. "This creative approach to addressing water quality in the Rialto-Colton Groundwater Basin opens the door to cost-effective integration of water supply resources and groundwater banks across the whole region."

San Bernardino County faces a growing threat to its long-term water security due to physical and climate-related risks and variability in State Water Project (SWP) deliveries combined with significant challenges related to sustainable replenishment of groundwater resources. To address these challenges, the County is supporting local efforts to develop a coordinated approach to water infrastructure investment in the region to maximize local water reuse, recharge groundwater basins, clean up impaired groundwater and reduce reliance on imported water from the Sacramento-San Joaquin Delta in any given year.

San Bernardino Valley has been investing in local water supply infrastructure including storage and recharge projects as part of a unified, integrated strategy to improve drought resilience, maximize value of imported water during dry years through storage of wet year water, and support sustainable and equitable access to clean water across all parts of its service area.

The Cactus Basins Recharge Program would spread imported State Water Project (SWP) water at the existing Cactus Basins for recharge of the Rialto-Colton groundwater subbasin. Groundwater would then be withdrawn via existing wells to augment potable water supplies in the San Bernardino Valley service area. However, planning to utilize Cactus Basins for groundwater recharge has been delayed due to concerns over the potential for water contaminant migration to FWC existing wells.

About San Bernardino Valley Municipal Water District
San Bernardino Valley Municipal Water District was formed in 1954 as a regional agency to plan a long-range supplemental water supply for the San Bernardino Valley. San Bernardino Valley imports water into the service area through participation in the State Water Project, manages groundwater storage within boundaries and provides roughly 25 percent of the region's water needs through deliveries to retail water agencies that serve the cities and communities of Bloomington, Colton, Fontana, Grand Terrace, Highland, Loma Linda, Mentone, Redlands, Rialto, San Bernardino, and Yucaipa. For more information, please visit https://www.sbvmwd.com/.

About Fontana Water Company
Fontana Water Company, a division of San Gabriel Valley Water Company, is a private water utility which has provided safe, clean and reliable water service to the City of Fontana for over 75 years. For more information, please visit https://www.fontanawater.com/.

About Cadiz, Inc.
Founded in 1983, Cadiz, Inc. (NASDAQ: CDZI) is a California water solutions company dedicated to providing access to clean, reliable and affordable water for people through a unique combination of water supply, storage, pipeline and treatment solutions. Cadiz's Mojave Groundwater Bank (MGB) project is a one-million-acre-foot groundwater storage facility and 2.5-million-acre-foot water supply project in the eastern Mojave Desert. For more information, please visit https://www.cadizinc.com    

Forward-Looking Statements

This release contains "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words such as "would," "will," "intends," "anticipates," "believes," "estimates," "projects," "expects," "planned" and "plans". These include statements regarding the planned partnership among Cadiz, San Bernadino Valley and FWC, which is dependent on the parties entering into a definitive binding agreement, and the benefits to be derived from such partnership. Such statements are subject to risks and uncertainties, and actual results may differ materially from any future results expressed or implied by the forward-looking statements. Risks and uncertainties include those described in the Company's filings made with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2024, and subsequent filings. The Company undertakes no obligation to update forward-looking statements except as required by law.

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SOURCE Cadiz, Inc.

FAQ

What is the purpose of Cadiz's partnership with San Bernardino Valley and Fontana Water Company?

The partnership aims to address perchlorate contamination in the Rialto-Colton Groundwater Basin through specialized water filtration systems, supporting the Cactus Basins Recharge Program for groundwater replenishment.

How does this agreement relate to CDZI's existing water supply contract with Fontana Water Company?

The perchlorate treatment agreement is part of a larger 200,000 acre-foot water supply agreement between Cadiz and Fontana Water Company signed in 2024.

What is the Cactus Basins Recharge Program?

It's a program to spread imported State Water Project water at existing Cactus Basins to recharge the Rialto-Colton groundwater subbasin, enhancing local water supply reliability.

How will this partnership benefit San Bernardino County's water security?

The partnership will help improve drought resilience, maximize use of imported water through storage, and support sustainable access to clean water by addressing contamination issues and expanding groundwater banking capabilities.

What role will Cadiz's ATEC Water Systems play in this agreement?

ATEC Water Systems, Cadiz's subsidiary, will provide specialized water filtration systems to Fontana Water Company for treating perchlorates at their facilities.