EPA recently opened applications for $7.5 billion in water infrastructure financing.
The U.S. Environmental Protection Agency reported last week that funding for $7.5 billion of Water Infrastructure Finance and Innovation Act (WIFIA) is open for local governments to apply. The WIFIA program offers long-term loans to help communities implement critical water infrastructure projects at a lower cost. These projects protect public health, deliver environmental benefits, create over 60,000 good-paying jobs, protect waterways, including drinking water sources, and support local economies.The WIFIA program provides its borrowers with creative, affordable financing options. It can fund the planning, design, and construction of a wide range of water infrastructure projects and offers the ability to combine multiple projects into a single loan. By streamlining the funding process, communities can accelerate their infrastructure projects. The WIFIA program offers interest rate resets, debt structuring, and fast disbursements, benefits not traditionally offered with other financing sources. For example, borrowers may defer repayment for up to five years after construction completion and 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.Examples of previously funded projects:
- Orange County Water District (California) customers have a more drought-proof drinking water supply and are less reliant on imported water due to the completion of the Groundwater Replenishment System Expansion project. When interest rates lowered in 2020, the district was able to lower its interest rate, saving it an additional $75 million in financing costs.
- City of Wichita (Kansas) residents benefit from more reliable drinking water because of its new Northwest Water Treatment Facility. Due to WIFIA financing, the project was initiated seven years sooner than originally planned and now delivers clean drinking water to the community.
- City of Tacoma Sewer Utility (Washington) customers have a more reliable, resilient wastewater treatment system because of the completion of the Electrical Distribution System Replacement Project, which modernized the treatment plant’s electrical system. By deferring WIFIA loan repayment for four years after construction completion, the city can pay off existing state-revolving fund (SRF) loans prior to repaying their WIFIA loan.
Learn more about the WIFIA program and this funding announcement.
