A proposed Water Infrastructure Finance and Innovation Act (WIFIA) took a major step forward last week when the Senate Environment and Public Works (EPW) Committee approved legislation to establish a new $500 million WIFIA pilot program.
The committee approved the WIFIA pilot program as Title X of S. 601, the “Water Resources Development Act” (WRDA). The title would authorize $50 million per year each for EPA and the Army Corps of Engineers for five years to be used to offer low-interest loans for major water infrastructure projects. The program would complement, not replace, the existing Clean Water and Drinking Water State Revolving Funds (SRFs) and would make funding available only to projects (or compilations of projects) expected to cost more than $20 million. EPA and the Army Corps would each select loan recipients following a nationwide application process and based on a set of prescribed criteria (such as creditworthiness, national or regional significance and potential to improve water quality or quantity). WIFIA funds would not be allocated or divided by state.
AMWA has contributed to the development of WIFIA over the past several years and sent the EPW Committee a letter of support. The committee-approved bill includes several AMWA priorities, such as not giving preference to communities that supplement WIFIA loans with private financing, not requiring the use of “green infrastructure” and making loans available to a wide range of water infrastructure repair, replacement and rehabilitation projects, as well as water recycling and desalination efforts. Additionally, the pilot program would not cap the number of projects eligible to participate.
There are several provisions in the bill AMWA hopes to work with Congress to improve. These include limiting WIFIA loans to funding no more than 49 percent of a project’s total cost and a provision requiring projects receiving WIFIA loans to abide by Davis-Bacon prevailing wage rates.
During consideration of the bill, Sen. Jeff Merkley (D-Ore.) thanked the committee for including the WIFIA title and said it has received an “enthusiastic reaction” from across the country. Last month, Sen. Merkley sponsored similar WIFIA legislation as S. 335.
EPW Chairman Barbara Boxer (D-Calif.) said S. 601 could receive a vote on the Senate floor as early as mid-April. The House of Representatives, meanwhile, is currently developing its own WRDA legislation, but the House proposal reportedly does not include a WIFIA title at this point.
AMWA members may wish to download a longer summary of the WIFIA title that was sent to the association’s Legislative Committee.