Pete HahnloserThe ongoing maintenance and upkeep of water infrastructure is key to the delivery of clean water to communities across the nation, which is why the U.S. Environmental Protection Agency (EPA) is announcing an additional $7.5 billion in funding available through the Water Infrastructure Finance and Innovation Act (WIFIA) program.
This program will provide long-term loans to assist communities with essential water infrastructure projects. These projects are designed to protect water resources such as drinking water, stimulate local economies and generate over 60,000 well-paying jobs – all at a reduced cost.
For this round of funding, the EPA is focusing on:
- Boosting investment in disadvantaged communities to improve health and quality of life.
- Accelerating the replacement of lead service lines.
- Tackling PFAS, or “forever chemicals,” and other emerging contaminants.
- Improving climate resilience in the water sector.
- Promoting innovation and resilience in water systems.
The WIFIA program offers flexible and affordable financing options, covering the planning, design and construction of various water infrastructure projects. It also allows multiple projects to be bundled into a single loan, streamlining the funding process and enabling communities to expedite their projects.
The program also provides unique benefits such as interest rate resets, customized debt structuring and rapid disbursements, all of which are uncommon with other funding sources. Borrowers can delay repayment for up to five years after completing construction and tailor their repayment schedule over a 35-year loan term.
This eighth round of available funding includes $6.5 billion through the WIFIA program and an additional $1 billion through the State Water Infrastructure Financing Authority (SWIFIA). The EPA is currently accepting letters of interest for both WIFIA and SWIFIA loans.
- Customers of the Orange County Water District in California now have a more drought-resistant drinking water supply and reduced dependence on imported water, thanks to the completion of the Groundwater Replenishment System Expansion project. When interest rates dropped in 2020, the district was able to secure a lower rate, saving $75 million in financing costs.
- In Wichita, Kan., residents enjoy more reliable drinking water from the new Northwest Water Treatment Facility, a project launched seven years earlier than planned due to WIFIA financing that now provides clean water to the community.
- Tacoma Sewer Utility in Washington has enhanced the reliability and resilience of its wastewater treatment system through the Electrical Distribution System Replacement Project, which modernized the plant’s electrical system. The city deferred WIFIA loan repayments for four years after project completion, allowing it to pay off existing state-revolving fund loans before beginning WIFIA loan payments.
More information on this round of WIFIA funding is available on the EPA website.
Photo by Swanky Fella on Unsplash
