The city of Oak Park Heights will lose a major taxpayer in a few years when the Allen S. King power plant closes in 2028. It's also facing a massive expense after learning this year that both of its drinking water wells tested above state guidelines for per- and polyfluoroalkyl substances (PFAS).

It might be possible that one of the financial hits could help kickstart a fix to the other, however. The City Council voted Tuesday night to apply for money set aside for cities that are losing a power plant to start designing a water treatment system.

"We're trying to get ahead of the game," Council Member Mike Runk said.

The city qualifies for funds from a state Department of Employment and Economic Development grant known as the Community Energy Transition Grant because Xcel Energy plans to close the King power plant as it switches to more renewable energy sources.

The plant provides about 30% of tax revenue for Oak Park Heights, or about $1.5 million in 2024. It also employs 77 people.

After Tuesday night's vote, Oak Park Heights will apply for $440,000 to start designing a water treatment plant that would sit north of City Hall. The city would also use $110,000 from its own water funds.

The combined $550,000 would pay for a feasibility study and pre-design work on the water treatment plant, including a preliminary survey, soil borings, a preliminary environmental review and about 30% of the design work.

Jim Kremer, a city resident who spoke at the meeting, questioned why the city should spend the money at all when PFAS levels found in the city's wells are measured in the parts per trillion. It seems like a solution in search of a problem, he said, saying the city would be better off focusing on economic development.

City officials responded that they've seen PFAS numbers grow in other Washington County cities.

"We've known for years that the plume is out there, it's just a matter of time," Mayor Mary McComber said, referring to contamination in the metro-area aquifers that supply many cities with their drinking water.

PFAS in water supplies

Oak Park Heights is only the latest in Washington County to find PFAS in its drinking water wells.

State health experts for years have tracked a plume of PFAS-contaminated water deep underground that feeds city drinking water wells in places like Oakdale, Woodbury and Lake Elmo. The plume flows away from four dump sites where 3M dumped PFAS-contaminated waste starting in the 1950s.

The family of chemicals known as PFAS are sometimes referred to as "forever chemicals" due to the super strong carbon-flourine bonds that define them; these bonds prevent the chemical from breaking down naturally. They're found not only in drinking water, but in other places in the environment and in thousands of consumer products from dental floss to nonstick cookware to firefighting foam.

The city's two water wells test at 2.68 and 2.6 parts per trillion for the PFAS chemical known as PFOA. That's higher than the state's guidelines, but still below the federal limit of 4 parts per trillion. The federal limit is enforceable and, if reached, would require the city to clean the water. City officials said Tuesday that it's important to start now because it's unlikely that the PFAS levels will drop in the city wells.

A water treatment plant could cost anywhere from $13 million to $20 million, according to the city's website.

The state attorney general reached an $850 million settlement with 3M in 2017, and that money has helped pay for water treatment plants in other cities like Woodbury and Cottage Grove. It's not clear that any of those funds will be left for places like Oak Park Heights, however, which only recently discovered PFAS in its drinking water.

Oak Park Heights has joined a nationwide class-action lawsuit against DuPont and 3M; the companies settled for $1.19 billion and $12.5 billion, respectively, but it's not yet known how much money Oak Park Heights would see from either lawsuit, according to city officials.

For now, city residents can use home filters to clean their own water.