The U.S. Environmental Protection Agency in October announced a $268 million Water Infrastructure Finance and Innovation Act (WIFIA) loan to Hampton Roads Sanitation District (HRSD), which serves areas across southeast Virginia and the Eastern Shore.
This is the third WIFIA loan, and part of a $1.3 billion agreement to implement the Sustainable Water Infrastructure for Tomorrow (SWIFT) Program, which will re-charge the Potomac Aquifer and help secure the drinking water supply for 1.9 million residents.
Wastewater treatment facilities in parts of southeastern Virginia need upgrades to improve efficiency and save water. The SWIF) program plans to utilize water reuse and advanced water treatment technologies to replenish the stressed Potomac Aquifer with highly treated water that meets drinking water standards. This program, funded in part by EPA’s WIFIA loans, will launch 20 construction projects to upgrade water infrastructure in the area.
“As we face increasing environmental challenges, HRSD’s SWIFT program represents an important step toward sustainable, ‘one water’ management,” said HRSD General Manager and CEO Jay Bernas. “This innovative initiative not only enhances our water quality, but also safeguards our community’s future for generations to come.”
According to EPA, the projects will create jobs, improve climate resilience and help ensure a sustainable drinking water supply in the region. The SWIFT program aims to improve the water quality of the Chesapeake Bay by reducing Hampton Roads Sanitation District’s wastewater discharges to the watershed by approximately 50 million gallons a day.
This is the third WIFIA loan under a master agreement that will commit $1.3 billion, nearly half of Hampton Roads Sanitation District’s $2.9 billion initial SWIFT Program costs. The remaining costs will be funded by Virginia’s Clean Water State Revolving Fund financing under a similar agreement and borrower produced contributions. The WIFIA loan’s flexible structure, including the borrowers’ ability to defer principal payments and structure the loan around other debt, helps the district manage program costs while securing additional funding sources.
“EPA is working with local partners to address water challenges such as diminishing groundwater supplies and safely managing wastewater to protect our treasured ecosystems,” said EPA Principal Deputy Administrator for Water Bruno Pigott. “With EPA financing, the Hampton Roads Sanitation District is tackling these challenges. They are upgrading water-treatment facilities to treat wastewater, re-charge the Potomac Aquifer and reduce wastewater discharges into Chesapeake Bay.”
Since its creation, EPA’s Water Infrastructure Finance and Innovation Act program has announced nearly $21 billion in financing to support $45 billion in water infrastructure projects that are strengthening drinking water, wastewater and stormwater infrastructure while creating more than 150,000 jobs.
Learn more about the EPA’s WIFIA Program and water infrastructure investments under the Bipartisan Infrastructure Law. EPA is in its 8th selection round for WIFIA financing. In this round, EPA is offering $6.5 billion through WIFIA, and $1 billion through SWIFIA, which is a loan program exclusively for State infrastructure financing authority borrowers. EPA is accepting letters of interest for WIFIA and SWIFIA loans. Learn more about submitting a letter of interest for a WIFIA loan.
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