The U.S. Environmental Protection Agency (EPA) (Washington, DC) recently announced the availability of ~$1 billion in credit assistance for water infrastructure projects under its new Water Infrastructure Finance and Innovation Act (WIFIA) program.
According to the agency, the program will provide long-term, low-cost credit assistance in the form of direct loans and loan guarantees to creditworthy water projects.
WIFIA provides another option for financing large infrastructure projects—generally worth at least $20 million—in addition to the U.S. State Revolving Fund program and bond market. WIFIA is available to state, local, and tribal governments; private entities; partnerships; and State Revolving Fund programs.
The EPA estimates that funds appropriated to the WIFIA program can be leveraged at a ratio greater than 50 to one, which means the $17-million program budget could allow EPA to make ~$1 billion in loans. This could stimulate about $2 billion in total infrastructure investment, the EPA says.
“The launch of the Water Infrastructure Finance and Innovation Act program marks a huge step forward for modernizing our nation’s aging water infrastructure,” says Gina McCarthy, administrator at the EPA.
“WIFIA gives us a new opportunity to provide billions of dollars in low-interest loans to communities to build large infrastructure projects, significantly accelerating investments that benefit our nation’s public health and water security for generations to come,” she adds.
Projects that the WIFIA program could enable the EPA to provide assistance for include drinking water treatment and distribution projects; wastewater conveyance and treatment projects; enhanced energy efficiency projects at drinking water and wastewater facilities; desalination, aquifer recharge, alternative water supply, and water recycling projects; and drought prevention, reduction, or mitigation projects.
The EPA says it will evaluate projects using criteria such as the extent to which the project is nationally or regionally significant, helps maintain or protect public health or the environment, protects against extreme weather, and serves regions with significant water resource challenges.
The agency adds that it will make selections on a competitive basis.
Overall, the EPA estimates that the United States needs ~$660 billion in investments for drinking water, wastewater, and stormwater infrastructure over the next 20 years.
For more information, visit www.epa.gov/wifia.