In late April, EPA announced it was issuing its first-ever loan from the Water Infrastructure Finance and Innovation Act (WIFIA) program to King County, Washington, to help finance its Georgetown Wet Weather Treatment Station. Earlier that month, the agency released a formal Notice of Funding Availability (NOFA) for approximately $5.5 billion in credit assistance for water infrastructure projects under the second round of WIFIA program funding, financing that will help support approximately $11 billion in total infrastructure investment.
The King County project, designed to collect and treat up to 70 million gallons of wastewater and stormwater per day to avoid sewer overflows into the Duwamish River during bad weather, is estimated to cost $275 million and be completed in 2022. EPA’s WIFIA loan will help finance nearly half the cost – up to $134.5 million – and is projected to save the county up to $32 million in financing expenses. A second WIFIA loan, announced by EPA Administrator Scott Pruitt in April, will provide the state of Indiana with $436 million to offer revolving loans to local water entities to focus on drinking water and wastewater treatment projects. Additional loans from the initial round of funding are currently being finalized.
The second round of loan funding was made possible by the FY18 omnibus appropriations bill. That measure provided $63 million to the WIFIA program, including $55 million that can be leveraged into the projected total of $11 billion for water infrastructure loans and credit assistance.
The NOFA solicits letters of interest from prospective borrowers seeking credit assistance from EPA in this latest round. The agency said it will focus on projects that provide for clean and safe drinking water, including by reducing lead exposure in drinking water systems, as well as projects that repair, rehabilitate, and replace aging infrastructure and conveyance systems. However, all types of projects eligible for WIFIA assistance will be considered.
To help potential borrowers navigate the process, EPA has updated the WIFIA program website to include resources such as application materials (including a new letter of interest form) and an updated WIFIA program handbook.
Letters of interest from prospective borrowers seeking WIFIA loans will be accepted until 12:00 PM (noon) EDT on July 6, 2018.
For more information about WIFIA and the funding process, visit www.epa.gov/wifia.