On Thursday, the U.S. Environmental Protection Agency (EPA) announced the availability of $6.5 billion in Water Infrastructure Finance and Innovation Act (WIFIA) funding for water systems, with an additional $550 million available to states. The agency also announced the approval of five WIFIA new loans.
On the available funding, EPA said interested entities can apply through WIFIA’s rolling application process.
The first WIFIA Notice of Funding Availability was issued during President Donald Trump’s first term. This funding represents the 9th round of financing with $6.5 billion available. Through a separate Notice of Funding Availability, $550 million is available to state infrastructure financing authorities through the SWIFIA program. EPA is currently accepting letters of interest for both.
For this new round of funding, EPA said it identified the following as priority areas that will advance it’s Powering the Great American Comeback Initiative, including:
- Ensuring safe drinking water and addressing pollution in our nation’s waterbodies;
- Unleashing American energy dominance;
- Advancing cooperative federalism by supporting local, regional, and state water priorities;
- Supporting innovation in the water sector; and
- Promoting economic growth and furthering America’s industrial resurgence.
“EPA’s WIFIA program provides a win-win for communities and American taxpayers,” said EPA’s Assistant Administrator for Water Jessica Kramer. “Communities use these competitive loans to upgrade water infrastructure to benefit residents and businesses while loan payments reimburse the U.S. Treasury.”
New Loans Approved
EPA also announced the following loans have been approved and said it will work with the recipients to formally close loan agreements.
Fort Worth, Texas – A $347 million loan will be used to upgrade wastewater collection and treatment and support beneficial water reuse. A newly designed and built water reclamation facility will meet the needs of a growing population while treating wastewater to be reused for industrial and irrigation purposes.
Pflugerville, Texas – A $176 million WIFIA loan will support multiple projects modernizing drinking water and wastewater infrastructure in this growing city. Work will include design and construction of a new wastewater treatment plant, expansion and consolidation of wastewater collection systems, and water main rehabilitation. This is the second WIFIA loan to the City of Pflugerville.
Joliet, Illinois – An $87 million loan will help transition the city’s drinking water supply from a stressed and unsustainable aquifer. Projects will include upgrading the distribution system to reduce water loss as the city prepares to begin using water from Lake Michigan. This is the third WIFIA loan for the City of Joliet under an agreement that will provide a total of $395 million in financing.
Ashland, Oregon – A $73 million WIFIA loan will help build a new drinking water treatment plant to provide a safer and more resilient supply of clean drinking water to this small, rural community.
Wilton Manors, Florida – A $28 million WIFIA loan will reduce the risk of pipeline failures, minimize water loss, and improve system reliability, particularly during emergencies such as storm events. Projects include replacing water mains, rehabilitating and replacing wastewater lift stations and force mains, and improving stormwater drainage systems.
About WIFIA
Established in 2014, the WIFIA program is an EPA-operated bank that provides supplemental, flexible, low-cost credit assistance to public and private borrowers for all types of drinking water, wastewater and stormwater projects. WIFIA offers long-term loans that can be combined with State Revolving Fund assistance, municipal bonds, and federal and state grants. They can help communities deliver more critical water infrastructure projects for a lower cost with less impact on rate payers.
Like a bank, the WIFIA program has funding available on an ongoing basis. This allows prospective borrowers to request financing on their schedule. Prospective borrowers can apply for and receive WIFIA loans at nearly any stage of project completion. They can even receive financing for planning and design-only loans.
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