$3 billion in loans available for dam improvement

The U.S. Army Corps of Engineers has invited 18 water infrastructure projects across 12 states to apply for a total of $3.19 billion in federal loans. This funding, part of the Corps Water Infrastructure Financing Program (CWIFP), will work to enhance dam safety, safeguard communities against flooding, and modernize critical water infrastructure.

The CWIFP, authorized by the Water Infrastructure Finance and Innovation Act of 2014, is a new federal financing program administered by the Army Corps of Engineers. The program received an $81 million boost through the 2021 Infrastructure Investment and Jobs Act and additional appropriations.

The program leverages funds to provide long-term, low-cost loans for eligible water and wastewater infrastructure projects. The Army Corps, traditionally known for its civil works projects, is now expanding its role to facilitate and finance projects run by state and local entities.

America’s aging water infrastructure is in need of repair. With many dams and water systems across the country nearing or exceeding their intended lifespans, these investments are an important step for ensuring public safety, maintaining water supply reliability and adapting to the challenges posed by climate change. The CWIFP is one piece in the broader national efforts to revitalize water infrastructure, creating jobs and protecting health and the environment in the process.

Through the program, the Army Corps can provide up to 49% of project costs, or up to 80% for projects serving economically disadvantaged communities. The Army Corps has not finalized any agreements yet, but it has invited 18 projects to apply for funding. Selected applicants now have one year to complete their full applications, after which the Army Corps will conduct detailed evaluations before making final funding decisions.

Michigan stands out among the invited states, with two significant projects totaling $763 million in potential federal financing. The larger of the two is Consumers Energy Company’s CE Dam Projects, invited to apply for $749 million to complete safety projects associated with six hydropower dams throughout the state. Additionally, the city of Ann Arbor has been invited to apply for $14 million to rehabilitate the century-old Barton Dam, which is crucial for the city’s drinking water supply and hydroelectricity generation.

While Michigan has the largest single project, California has more water infrastructure needs overall, with eight projects invited to apply for CWIFP funding totaling more than $2 billion. The Public Utilities Commission of San Francisco’s Dam Safety and Resilience Program is invited to apply for $622 million, while the Santa Clara Valley Water District’s Dam Safety Program could receive up to $660 million. Other notable California projects include the City of San Diego’s Dam Improvements ($243 million) and the City of Los Angeles’ Tinemaha Dam Replacement Project ($251 million).

A full list of projects across the nation can be found through the Army Corps’ website. Other notable examples include in North Carolina, where the City of Monroe’s Dam Improvements project is invited to apply for $17 million, while in Georgia, the Augusta-Richmond County’s Augusta Canal Dam Safety Improvements Project is invited for $45 million.

In addition to the confirmed selections, the Army Corps is still considering several other proposals for potential inclusion in the CWIFP. These pending projects include the Los Angeles County Reservoir Restoration Program in California ($75 million), the NYPA Hydro Facilities project in New York ($389 million), and The Rhode Island Dam Safety Loan Fund ($23 million). If approved, these projects would add about $488 million to the program’s total funding, further expanding its impact on national water infrastructure improvement efforts.

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