Swamp Stomp
Volume 17, Issue 6
The U.S. Environmental Protection Agency (EPA) stated that about $1 billion in loans are now available to be used towards water infrastructure projects under the new Water Infrastructure Finance and Innovation Act (WIFIA) program.
The type of loans the EPA’s WIFIA program will provide are long-term, low-cost credit assistance and will come in the form of direct loans and loan guarantees to creditworthy water projects. In addition to the State Revolving Funds and bond market, WIFIA is another way to receive funding on large infrastructure projects that cost at least $20 million. The WIFIA program is open to state, local, and tribal governments; private entities; partnerships; and State Revolving Fund programs. It has been estimated by EPA that funds appropriated to the WIFIA program can be leveraged at a ratio greater than 50 to one, this means the programs budget of $17 million could allow the EPA to make approximately $1 billion in loans and stimulate about $2 billion in total infrastructure investment.
“The launch of the Water Infrastructure Finance and Innovation Act program marks a huge step forward for modernizing our nation’s aging water infrastructure,” said EPA Administrator Gina McCarthy. “WIFIA gives us a new opportunity to provide billions of dollars in low-interest loans to communities to build large infrastructure projects, significantly accelerating investments that benefit our nation’s public health and water security for generations to come.”
The Environmental Protection Agency is only allowed to loan out the Water Infrastructure Finance and Innovation Act money on projects that improve water infrastructure. Some examples of projects that are able to receive loans from WIFIA are:
- drinking water treatment and distribution projects
- wastewater conveyance and treatment projects
- enhanced energy efficiency projects at drinking water and wastewater facilities
- desalination, aquifer recharge, alternative water supply, and water recycling projects
- drought prevention, reduction, or mitigation projects
To determine whether projects fall under Water Infrastructure Finance and Innovation Act funding, the Environmental Protection Agency will be considering the extent to which the project is nationally or regionally significant, helps maintain or protect public health or the environment, protects against extreme weather, and serves regions with significant water resource challenges. Selections will be made by the EPA on a competitive basis.
It has been estimated by the Environmental Protection Agency that the United States needs about $660 billion in investments that go towards drinking water, wastewater, and storm water infrastructure over the next 20 years.
To find out more information about the Water Infrastructure Finance and Innovation Act program visit www.epa.gov/wifia.
Do you think the EPA should be putting their resources towards water infrastructure? If not, what should the EPA be putting their time, money, and talents towards? Do you think the EPA’s estimates about the amount needed to be invested towards drinking water, wastewater, and storm water infrastructure in the next 20 years is correct? If not, why do you think the amount is too high or too low?
Source: “EPA Launches New Program With $1 Billion in Loans Available for Water Infrastructure Projects.” EPA. Environmental Protection Agency, 10 Jan. 2017. Web. 20 Jan. 2017.