EPA Administrator Scott Pruitt made a pair of visits to Capitol Hill in late April and early May to offer testimony on EPA’s FY19 budget request, but he used both appearances to tout the potential of the agency’s Water Infrastructure Finance and Innovation Act (WIFIA) program.
In Pruitt’s appearances before two House subcommittees April 26, he expressed hopes to use WIFIA to support as much as $4 billion worth of funding annually for communities to remove lead service lines. Pruitt repeatedly highlighted EPA’s “goal of eradicating lead from our drinking water within ten years,” and told lawmakers that he believes this goal can be achieved “largely through the utilization of [funding from the] WIFIA program.”
Pruitt’s written statement to the Environment Subcommittee referenced the Trump administration’s FY19 request of $20 million for WIFIA, which Pruitt said could “provide up to $2 billion in credit assistance” and support $4 billion in total infrastructure investments when local matching funds are factored in. Pruitt’s statement went on to say that “WIFIA complements the SRF [State Revolving Fund] programs as an additional innovative and flexible source of low-cost capital for communities of all sizes.”
Pruitt offered additional details in his remarks to the Environment Subcommittee, explaining his “goal to prioritize [WIFIA] applications for critical water infrastructure over the next ten years to hopefully see roughly $4 billion per year dedicated to the replacement of lead service lines in order to reduce lead in our drinking water.” Later, in response to a question, Pruitt declared, “There is no safe level of lead in our drinking water,” and said EPA has estimated the total cost of replacing the nation’s lead service lines to be $45 billion. “I really believe we can prioritize funding in the WIFIA program up to $4 billion per year over a ten-year process … and achieve tremendous results,” Pruitt said.
He returned to Capitol Hill on May 16 to appear before a Senate Appropriations subcommittee, and used this opportunity to tell senators that EPA is working to educate more communities about funding opportunities through WIFIA.
Similar to his House testimony in April, Pruitt told senators, “WIFIA complements the SRF [State Revolving Fund] programs as an additional innovative and flexible source of low-cost capital for communities of all sizes.” He went on to say that EPA hopes to use the next round of WIFIA loans to help communities replace lead service lines.
In response to a question during the hearing about communities embrace of WIFIA, Pruitt said, “a lot of communities across the country just simply are not aware of the opportunity” offered by the program. In response, Pruitt said EPA is working with state governors and others to educate potential applicants about the program.
“The agency has to do more to advance awareness” about WIFIA and solicit a range of different applications, such as those that bundle projects together, Pruitt said.
Earlier in April EPA released a Notice of Funding Availability for the next round of WIFIA funding. EPA said this round will focus in part on projects that provide for clean and safe drinking water, including by reducing lead exposure in drinking water systems, but all types of projects eligible for WIFIA assistance will be considered. EPA subsequently extended the initial application deadline for the next round of WIFIA loans until July 31. As much as $5.5 billion in financing will be made available for water and wastewater projects through this round of loans, and EPA has scheduled two upcoming webinars to educate potential applicants about the program.