Pete HahnloserThe U.S. Environmental Protection Agency (EPA) has provided a $188.3 million loan to the Toho Water Authority in central Florida that will enable the authority to upgrade water infrastructure in Polk and Osceola counties, helping to ensure a resilient water supply for more than 450,000 residents.
The Water Infrastructure Finance and Innovation Act (WIFIA) loan will support the Toho Water Authority’s One Water Program, which is designed to ensure clean and safe drinking water to a region anticipating rising water demand from continued growth. The program seeks to decrease dependence on fresh groundwater by expanding potable and non-potable water supplies.
With the WIFIA loan, the authority plans to expand several water treatment facilities, install a network of water mains and pump stations, reduce effluent discharges and meet the requirements of the state’s Central Florida Water Initiative to protect the environment.
“This loan will fund several key upgrades and expansions to the Tohopekaliga water infrastructure, including expanding multiple water treatment facilities and installing a series of water main and pump stations, which will reduce the communities’ reliance on the Upper Floridian aquifer’s supplies and improving the drinking water distribution system for this growing population,” EPA Acting Region 4 Deputy Administrator César Zapata said. “These improvements are not only about replacing outdated systems but also about implementing cutting-edge technologies that will enhance water quality, increase system resilience, and reduce operational costs.”
The low-interest loan, expected to save the authority $47 million, is part of a larger agreement between the EPA and the Toho Water Authority that commits $292 million in WIFIA assistance for the One Water Program. The construction and operation of the projects under this agreement will create around 1,750 jobs.
Created under the Water Infrastructure Finance and Innovation Act of 2014, the WIFIA program is a federal loan initiative managed by the EPA. The program’s goal is to boost investment in the nation’s water infrastructure by offering long-term, low-cost supplemental credit assistance for projects of regional and national importance.
Since its inception, the program has provided more than $20 billion in financing to support $44 billion in water infrastructure projects, improving drinking water, wastewater and stormwater systems while creating approximately 150,000 jobs. The Toho Water Authority previously received a $40 million WIFIA loan to help fund the Kissimmee Accelerated Gravity and Sewer Assessment and Rehabilitation Project, which is nearly complete and will reduce the number of emergency failures and inflow and infiltration into the existing system.
The EPA is currently in its seventh round of selecting projects for WIFIA financing. In this round, the agency is offering $6.5 billion through WIFIA and an additional $1 billion through sister program SWIFIA, which is specifically for state infrastructure financing authority borrowers. The EPA is now accepting letters of interest for both WIFIA and SWIFIA loans.
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