EPA Meets with Water Systems During Water Week
WASHINGTON – Earlier this week, as part of annual Water Week, when water professionals gather to discuss priority issues impacting the industry, U.S. Environmental Protection Agency (EPA) Senior Advisor for Water Jessica Kramer joined a roundtable to discuss the Water Infrastructure Financing and Innovation Act (WIFIA). The WIFIA program provides borrowers with flexible, affordable financing options to support water updates in communities. It funds planning, design, and construction of water infrastructure projects and can finance a combination of projects in a single loan.
“Water is essential to Powering the Great American Comeback. Through this low-cost loan program, EPA is accelerating investments in water infrastructure that support healthy Americans while creating jobs and reducing the cost of living,” said Kramer. “It is inspiring to hear from practitioners around the country about the incredible work they are doing to benefit the American public. I want to congratulate each of these water executives for delivering multiple benefits to their communities, and I look forward to more progress in the coming years.”
By streamlining the funding process, water systems can accelerate infrastructure projects to benefit communities. The WIFIA program offers interest rate resets, sculpted repayments, and fast disbursements, benefits not traditionally offered with other financing sources. For example, borrowers may defer repayment for up to five years after construction is complete and then customize their repayment schedule through the 35-year loan term. This flexibility provides borrowers with immediate funding to implement projects, while helping to keep rates more affordable.
At this week’s roundtable, EPA included seven existing WIFIA borrowers.
The Narragansett Bay Commission in Narragansett, Rhode Island, and the Toho Water Authority in Kissimmee, Florida, have used multiple WIFIA loans for relatively large-scale projects in their communities. With WIFIA loans, the Narragansett Bay Commission is upgrading its wastewater infrastructure to address combined sewer overflows, protect water quality, and increase system reliability. The Toho Water Authority received WIFIA loans to rehabilitate and replace sewer mains and manholes, as well as incorporate new potable and non-potable water supply sources to offset groundwater demand.
Other roundtable participants included East County Advanced Water Purification Joint Powers Authority in California, which is using a WIFIA loan to help fund a water reuse project that will meet up to 30% of East San Diego County’s drinking water demand. The Tualatin Valley Water District and the City of Hillsboro in Oregon are working together to increase drinking water capacity and enhance water system reliability in case of an earthquake. The Metropolitan Sewer District in Jefferson County, Kentucky, is upgrading its water quality treatment center to process wastewater and generate Class A biosolids for productive reuse. In Johnson County, Kansas, they are using a WIFIA loan to rebuild aging infrastructure to meet future water quality requirements. And in Springfield, Massachusetts, a WIFIA loan is helping to accelerate dozens of water infrastructure projects and ensure reliable drinking water and wastewater to customers.
Background
Established by the Water Infrastructure Finance and Innovation Act of 2014, the WIFIA program is a federal loan program administered by EPA. The WIFIA program aims to accelerate investment in the nation’s water infrastructure by providing long-term, low-cost supplemental credit assistance for regionally and nationally significant projects. The WIFIA program has an active pipeline of pending applications for projects that will result in billions of dollars in water infrastructure investment and thousands of jobs. EPA accepts requests for WIFIA financing on an ongoing basis. Learn more about submitting a letter of interest for a WIFIA loan.