The U.S. Environmental Protection Agency or EPA will provide a 34 million dollar federal loan to help upgrade a stormwater system in Daly City.
The project aims to reduce flooding in San Mateo County.
Planned upgrades include replacing an undersized canal, enlarging an existing tunnel, improving overflow systems to the lake and constructing a new outlet to the Pacific Ocean.
It will increase the county’s storm water capacity by redirecting runoff to Lake Merced.
The EPA said the upgraded system would also help stabilize water levels and improve the region’s water quality.
Construction and operations tied to the project are expected to create roughly 500 jobs.