Portland seeks 2-year deadline extension as Bull Run filtration cost jumps to $2.56B

PORTLAND, Ore. (KATU) — The city of Portland’s multibillion-dollar water filtration project has increased in estimated cost once again.

City officials announced on Thursday that the Bull Run Filtration Project is now projected to cost $2.56 billion after a $450 million increase. That price is well above the original $500 million estimated cost when Portland City Council approved the project in 2017.

They are also asking the Oregon Health Authority to extend the September 2027 deadline to have the filtration plant operational by two years.

“The 24-month extension would account for delays caused by the land use process and provide flexibility to address unforeseen site conditions and weather delays,” the Portland Water Bureau said in a statement. “The additional time will allow the City to deliver this critical project without compromising construction safety or the integrity of the facility.”

According to Portland Water Bureau, the increase in projected cost and request for an extension is a result of delays in the permitting process.

Multnomah and Clackamas counties approved the bureau’s land use permits in November 2023, months after applications were filed, which delayed construction by two months.

Neighbors of the east Multnomah County site then appealed to the State’s Land Use Board of Appeals (LUBA) on two occasions, which resulted in a lengthy legal process and further delayed the construction schedule by a total of seven additional months.

Critics have argued the project is a threat to the area’s natural resources and environment and have also said the city’s decision to create such a large treatment plan is unnecessary.

The project is a result of a 2009 federal rule that requires certain water providers to treat water for cryptosporidium — a parasite sometimes found in water.

Under federal law, water providers have a choice on how to treat their water for cryptosporidium, but the Portland City Council landed on filtration as the preferred method in 2017 over a cheaper alternative of UV lighting.

Officials with the Portland Water Bureau have stood by their claim that filtration is the most cost-effective and sustainable option for providing clean water.

The Bull Run Filtration Project will introduce a new filtration facility and pipelines and is expected to be the largest filtration facility in Oregon.

“Portland is planning for the future. The seismic and weather-ready upgrades of the Filtration Project will provide reliable, consistent, safe and high-quality water to our customers, particularly following a major earthquake, landslide, wildfire or major storm,” Mayor Keith Wilson said. “We are doing everything we can to expedite the delivery of this crucial investment in Portland’s economic viability and the public health and safety of our people.”

According to the Portland Water Bureau, the city has been identifying and implementing fiscal strategies to keep the project cost as low as possible, including two Water Infrastructure Finance and Innovation Act loans to help offset costs for customers.

“Our number one priority now is the Bull Run Filtration Project. The magnitude of investment requires careful attention to every detail of this megaproject from top management and our skilled technical team,” said Director of Public Utilities Ting Lu. “We have reached a critical moment in construction and we will finish strong. Our customers are counting on us to deliver this project that’s critical to protecting their health and guarding against the risk of wildfire and extreme weather.”

Staff with the Portland Water Bureau are expected to propose annual adjustments to water and sewer rates to City Council for the upcoming fiscal year as part of the budget process, and rates are expected to be finalized in May.

“As we move into the annual budget process, our responsibility is to fund this project in a way that is responsible and sustainable,” Deputy City Administrator for Public Works Priya Dhanapal said. “We know these decisions have real impacts on customers, which is why we are prioritizing cost control, financing strategies, and transparency about the choices ahead. We are committed to minimizing impacts on monthly bills while delivering the safe, reliable water system our region depends on.”

According to the Portland Water Bureau, more than 7,000 feet of new pipelines have been installed to date.