At a recent event featuring U.S. Representative Terri Sewell (D-Ala.), U.S. Environmental Protection Agency (EPA) Acting Regional Administrator Jeaneanne Gettle announced a $171 million Water Infrastructure Finance and Innovation Act (WIFIA) loan to the Birmingham Water Works Board in Alabama.
EPA said the loan will support improvements to the drinking water supply that supports 770,000 residents in the City of Birmingham.
“Water is essential to healthy, thriving communities. That’s why EPA’s $171 million low-interest loan is so important for the residents and businesses in Birmingham. It will help upgrade aging water infrastructure, including reducing watermain breaks and removing legacy lead pipes, while reducing project costs,” said Gettle. “Through the WIFIA program and unprecedented investments from the Bipartisan Infrastructure Law, EPA is upgrading water infrastructure to benefit communities across the country. These efforts are strengthening drinking water systems, upgrading wastewater management, and creating good-paying jobs in the process.”
With the WIFIA loan, the Birmingham Water Works Board will secure a more reliable source of drinking water when it makes improvements to the Lake Purdy Dam. The city will also make progress towards upgrading its drinking water infrastructure so that it is not only more efficient, but also more protective of public health. The city will replace lead service lines, which are pipes connecting people’s homes and businesses to water mains. Replacing lead pipes is a critical step for reducing risk of lead exposure, and a priority for the Biden-Harris Administration.
For years, the City of Birmingham has struggled with water loss from aging infrastructure. This loan will allow them to complete a major upgrade of its distribution system to prevent water loss and safely store treated drinking water for distribution to its customers. By preventing over 250 water main breaks annually, residence and businesses will experience improved service while lowering the Board’s maintenance costs.
“This is great news for the residents of Birmingham,” said U.S. Representative Terri A. Sewell (AL-07). “Not only will this loan improve the city’s water supply and ensure safe drinking water, but it will save the city money and create more than a thousand jobs. I thank the Biden-Harris Administration for continuing to invest in the Magic City.”
“As Chairwoman of the Birmingham Water Works Board, I am honored to accept the EPA WIFIA loan that will deliver vital resources and support crucial improvements to our system that will benefit our entire service area,” said Tereshia Huffman, Chair of the Birmingham Water Works Board. “It is our charge to always improve the dependability, supply and quality of water in our system for the people we serve, and this loan grants us the ability to address needs in the near and long term.”
This is EPA’s first WIFIA loan in the State of Alabama and it will benefit 15 percent of the state’s population. In addition, the Board will save approximately $50 million by financing with a WIFIA loan, and the project’s construction and operation will create about 1,200 jobs.
Since 2018, the EPA’s WIFIA program has announced over $20 billion in financing to support more than $44 billion in water infrastructure projects that are strengthening drinking water, wastewater, and stormwater infrastructure while creating over 148,000 jobs.
The EPA is currently in its seventh selection round for WIFIA financing. In this round, the 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 currently accepting letters of interest for WIFIA and SWIFIA loans.
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