The U.S. Environmental Protection Agency (EPA) announced a $272 million Water Infrastructure Finance and Innovation Act (WIFIA) loan to the city of Columbia, Tennessee, to help expand its drinking water capacity.
Known as “Muletown,” the city of Columbia has a population of about 50,000. EPA said the new WIFIA loan will help the city implement expansions to its drinking water system, increasing capacity and system reliability to deliver safe drinking water throughout the city and nearby rural communities.
“We are proud to proactively take steps to complete this necessary project to ensure the long-term viability of clean drinking water in our region,” said Jack Baxter, interim CEO and president of Columbia Power & Water Systems. “Capitalizing on the most advantageous available financing, such as the WIFIA loan, we are locking in future savings for our ratepayers.”
LA financing authority gets WIFIA loan for drinking water upgrades
The city of Columbia will use the WIFIA financing for its Long Term Water Supply Program, which will expand its drinking water system to continue providing water for its growing regional population. This project includes construction of a new raw water intake structure, transmission main, and improvements to the system’s existing water treatment plant. Through these upgrades the city will increase drinking water supply reliability for its customers and provide water to rural communities within the city’s service area.
EPA’s WIFIA loan enables Columbia to meet increased demands due to population and economic growth while delivering for its communities and businesses. The program will provide Columbia flexibility through the ability to customize repayment schedules – saving the city millions over the life of the loan. Additionally, the project is expected to drive meaningful economic impact and support a substantial number of jobs during the construction process and beyond.
“Working on this WIFIA Loan with Columbia, Tennessee, has helped advance the Trump EPA’s goal of making sure water is working for Main Street USA,” said EPA Assistant Administrator for Water Jess Kramer. “Ensuring safe drinking water is critical to supporting growing populations and growing economies like in Columbia. This $272 million WIFIA loan will help us do just that and continues to prove that we can protect public health while bolstering local economies.”
EPA waiving WIFIA fees for small communities
Since issuing its first loan in 2018, EPA’s WIFIA program has announced $24 billion in financing for water infrastructure projects that are strengthening drinking water, wastewater, and stormwater infrastructure while creating over 177,000 jobs. Through its flexible financing features and competitive interest rates, WIFIA helps communities save money, and even accelerate water infrastructure investments.
WIFIA has approximately $11 billion in flexible financing available to support additional water infrastructure projects across the country, including in small communities and rural America where WIFIA can finance up to 80% of project costs. To help small communities access WIFIA funding, the agency recently announced a commitment to waive WIFIA application and credit processing fees.
Additionally, the agency’s State WIFIA program has approximately $3 billion available for loans to state infrastructure financing authorities. EPA is currently accepting letters of interest for funding through WIFIA and State WIFIA.
Source: U.S. EPA
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