EPA Provides $196 Million Loan for Indiana Water Projects

EPA Provides $196 Million Loan for Indiana Water Projects

SWIFIA funds will be used for drinking water and wastewater infrastructure improvements

November 22, 2024

Today at an event at the Indiana Statehouse, the head of the U.S. Environmental Protection Agency's (EPA) Water Office Bruno Pigott joined Indiana Finance Authority's Jim McGoff to announce a $196 million loan to improve drinking water and wastewater systems statewide. This funding will help address the demands of a growing population.

The State of Indiana intends to use this loan to finance drinking water and wastewater infrastructure improvement projects to better serve Indiana communities. This investment will help address aging infrastructure and expand services in communities experiencing growing needs. Projects that will receive funding are located throughout the state and are expected to benefit 134,000 Indiana residents.

EPA's State Infrastructure Financing Authority Water Infrastructure Finance and Innovation Act (SWIFIA) program provides loans exclusively to state financing authorities, also known as state revolving fund programs. This SWIFIA loan offers additional low-cost financing to Indiana's Clean Water and Drinking Water State Revolving Funds, that will help implement critical water infrastructure projects in the state.

"I want to congratulate the State of Indiana for securing a $196 million loan from EPA. Through our partnership, we will upgrade water infrastructure across the state to keep residents healthy, protect water resources, and create good-paying jobs while keeping water bills affordable," said EPA Principal Deputy Assistant Administrator for Water, Bruno Pigott. "The State of Indiana is ahead of the curve in securing EPA financing to advance water infrastructure goals and benefit 134,000 people across the state."

"The IFA is continually searching for alternative funding sources to keep pace with Indiana's increasing water-infrastructure needs," said Jim McGoff, Indiana Finance Authority chief operating officer and director of environmental programs. "EPA's SWIFIA program provides that additional source of funding, which will help communities across Indiana invest more than $400 million in their local water systems."

This loan will be Indiana Finance Authority's first SWIFIA loan and third loan through the EPA's Water Infrastructure Finance and Innovation Act (WIFIA) program, totaling more than $630 million in WIFIA financing to advance water infrastructure projects in Indiana. The SWIFIA loan will offer the authority further flexibilities by allowing deferment of principal payments for 20 years and substantial savings for Indiana residents. Savings from Indiana's first WIFIA loan totaled more than $130 million.

Since its creation, EPA's Water Infrastructure Finance and Innovation Act program has announced $21 billion in financing to support $45 billion in water infrastructure projects that are strengthening drinking water, wastewater, and stormwater infrastructure while creating over 150,000 jobs.

Learn more about the EPA's WIFIA Program and water infrastructure investments under the Bipartisan Infrastructure Law.

Background

Established by the Water Infrastructure Finance and Innovation Act of 2014, the WIFIA program is a federal loan program administered by the EPA. The WIFIA program aims to accelerate investment in the nation's water infrastructure by providing long-term, low-cost supplemental credit assistance for regionally and nationally significant projects. The WIFIA program has an active pipeline of pending applications for projects that will result in billions of dollars in water infrastructure investment and thousands of jobs.

EPA is currently in its 8th selection round for WIFIA financing. In this round, EPA is offering $6.5 billion through WIFIA, and $1 billion through SWIFIA, which is a loan program exclusively for State infrastructure financing authority borrowers. EPA is currently accepting letters of interest for WIFIA and SWIFIA loans. Learn more about submitting a letter of interest for a WIFIA loan.

In addition to WIFIA loans, there are many federal funding resources available for communities and utilities to improve vital water and wastewater resources. The Bipartisan Infrastructure Law is a once-in-a-generation investment in our nation's infrastructure and competitiveness.