EPA is aiming to begin issuing loans through the Water Infrastructure Finance and Innovation Act (WIFIA) pilot program during the 2017 fiscal year, the agency said in a “Budget in Brief” document released on February 9 in conjunction with President Obama’s FY17 budget request.
According to EPA’s document, WIFIA will serve as “another tool in support of drinking water and wastewater infrastructure projects,” and will “supplement the existing State Revolving Fund programs, helping to meet the United States’ water infrastructure needs and address key priorities.”
“In FY 2017, the EPA will begin to fund WIFIA projects,” the document says.
President Obama’s FY17 budget seeks funding to support loans through WIFIA, with $15 million allocated for that purpose. According to EPA, “$15 million in credit subsidy translates into a potential loan capacity of nearly $1 billion to eligible entities for infrastructure projects.” Congress had previously authorized WIFIA to receive up to $35 million in FY17.
The President’s budget also seeks an additional $5 million for use by the Office of Water to implement and operate the WIFIA program.
Congress passed WIFIA in 2014 as a five-year pilot program aimed at major water infrastructure projects expected to cost more than $20 million. In previous years President Obama has requested, and Congress has approved, several million dollars to allow EPA to set up WIFIA, though this marks the first time that funding for actual loans is included in the White House budget.