New funding available for water infrastructure projects

Funding is available on an ongoing basis for cities and other loan applicants

By Melissa Sparks-Kranz, legislative affairs lobbyist

The U.S. Environmental Protection Agency (EPA) recently announced the availability of $6.5 billion in long-term, low-cost supplemental loans for water and wastewater infrastructure projects through the Water Infrastructure Finance and Innovation Act (WIFIA) program, along with an additional $1 billion for states through a similar program. The EPA is currently accepting letters of interest for the two loan programs.

WIFIA offers long-term loans to help communities implement critical water infrastructure projects that protect public health, deliver environmental benefits, and support local economies for a lower cost. City officials can use WIFIA loans to fund the planning, design, and construction of a wide range of water infrastructure projects, including:

• Drinking water treatment and distribution projects.
• Wastewater conveyance and treatment projects.
• Stormwater, wastewater, and nonpoint source pollution management 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.

Applicants can combine multiple projects into a single loan. The program also provides additional financing flexibility, such as interest rate resets, debt sculpting, and fast disbursements.

This year, the WIFIA program will prioritize projects that invest in economically stressed communities, make rapid progress on lead service line replacement, address PFAS and emerging contaminants, strengthen climate resilience, and support water innovation and resilience efforts.

States, cities, tribes, utilities, and other public and private entities interested in applying can submit a letter of interest at any time to be considered for loan application. The WIFIA program has helpful resources online for submitting a successful letter of interest, including a checklist, webinars, and sample letter of interest materials.

For more information, view the full notices of funding availability, visit www.epa.gov/wifia for informational materials and upcoming webinars, or send an email to [email protected].