A proposed “Water Infrastructure Finance and Innovation Act” (WIFIA) took a major step forward last week when the U.S. Senate approved a WIFIA pilot program as part of a larger Water Resources Development Act (WRDA) reauthorization bill (S. 601). The WIFIA pilot passed as Title X of S. 601, which won Senate approval on a vote of 83 – 14.
As approved by the Senate, Title X authorizes $50 million per year for five years each to EPA and the Army Corps of Engineers to offer low-interest WIFIA loans for water and wastewater infrastructure projects expected to cost at least $20 million (or $5 million for water systems serving 25,000 or fewer people). EPA and the Corps would each select loan recipients through a nationwide competitive process, and the funds would not be routed through State Revolving Fund (SRF) programs.
WIFIA is based on the existing TIFIA program that offers similar low-interest loans for major transportation projects. The U.S. Department of Transportation, which operates TIFIA, reports that each federal dollar put into the program is leveraged into approximately $10 worth of project loans. Based on this leverage ratio, a $100 million appropriation to WIFIA could generate $1 billion worth of loans to support water infrastructure projects.
WIFIA encountered no strong opposition in the Senate, though senators did attach an amendment to require the use of American-made iron, steel and manufactured goods on all projects that receive WIFIA funding. Similar “Buy American” rules apply to TIFIA and were also added to the water infrastructure funds Congress made available through the 2009 economic stimulus legislation.
The House of Representatives is expected to consider its own WRDA legislation by the end of the summer, and AMWA will be in touch with House members to encourage WIFIA’s inclusion. But regardless of the course the House takes, WIFIA’s presence in S. 601 gives the program the chance to be a part of the final WRDA legislation House and Senate negotiators will try to hammer out later this year.
A summary of the Senate-approved WIFIA title is available on AMWA’s Legislative Information webpage.