Environmental Protection Agency announces $6.5 billion in available financing for water infrastructure projects
Author
Charlotte Mitchell Duyshart
Rachel Yeung
Upcoming Events
Related News
Key Takeaways
On September 6, the Environmental Protection Agency (EPA) announced $6.5 billion in funding for the Water Infrastructure Finance and Innovation Act (WIFIA) program. The WIFIA program is a federal loan program designed to accelerate water and wastewater infrastructure investment by providing long-term, low-cost supplemental loans for regionally and nationally significant projects, including many county water infrastructure projects.
How can WIFIA financing help counties?
Counties invest over $134 billion annually to build and maintain America's water and wastewater infrastructure. Counties frequently tackle water infrastructure needs, particularly when managing flooding threats and other water-related challenges. Significant federal investment is crucial for supporting their ongoing efforts and responding to water infrastructure demands.
The EPA is responding to demands by prioritizing investments in the following areas:
- Increasing investment in disadvantaged communities and improving health and livability
- Making progress on lead service line replacement
- Addressing PFAS and emerging contaminants
- Strengthening climate resilience in the water sector
- Supporting water innovation and resilience
The WIFIA program helps finance larger water infrastructure projects, primarily those with an anticipated cost of $20 million or more. Additionally, small communities with populations of 25,000 or less can receive funding for projects with a minimum cost of $5 million. Among the WIFIA benefits, single loans can be used for multiple projects.
County success stories
Counties across the U.S. have already seen impressive results from WIFIA funding:
Orange County, Calif.: The county completed its Ground Water Replenishment System Expansion, enhancing its drought-proof drinking water supply and reducing reliance on imported water. By lowering interest rates, the county saved an additional $75 million.
Sedgwick County, Kan.: The Northwest Water Treatment Facility in Wichita benefited from WIFIA by accelerating the project timeline by seven years, significantly improving the reliability of drinking water for residents.
Pierce County, Wash.: Tacoma's Electrical Distribution System Replacement project modernized the city’s sewer utility treatment plant. WIFIA’s deferred loan repayment option allowed the city to clear existing state-revolving fund loans before repaying the WIFIA loan.
How can counties apply?
The EPA is currently accepting letters of interest (LOI) from eligible applicants. WIFIA loans are available year-round, however, LOIs submitted on or after October 1, 2024, will be reviewed based on the scoring criteria in the most recent Notice of Funding Availability (NOFA).
For more information to apply, click here.
Additional Resources
Advocacy
U.S. House and Senate pass WRDA 2024, legislation moves to conference committee process
The Water Resources Development Act (WRDA) is the authorizing legislation for the U.S. Army Corps of Engineers, which allows the Corps to conduct studies, construct projects and research activities to improve U.S. waterways.
Related News
Counties Celebrate Key Permitting Inclusions in SPEED Act
NACo issued the following statement in response to the passage of the Standardizing Permitting and Expediting Economic Development (SPEED) Act (H.R. 4776), which advanced out of the U.S. House Committee on Natural Resources on November 20.
House Natural Resources Committee advances Standardizing Permitting and Expediting Economic Development (SPEED) Act
On November 20, the U.S. House Committee on Natural Resources advanced the Standardizing Permitting and Expediting Economic Development (SPEED) Act (H.R. 4776), which would make important changes to streamline federal permitting and strengthen county involvement in decision-making by amending the National Environmental Policy Act. Counties support commonsense permitting reforms, and NACo secured provisions in the SPEED Act that would guarantee counties a seat at the table during federal environmental reviews.
U.S. Environmental Protection Agency releases new definition of the “waters of the United States”
On November 17, the U.S. Environmental Protection Agency and U.S. Army Corps of Engineers released a proposed rule defining what constitute the “waters of the United States” and are subject to federal regulation under the Clean Water Act. The new definition is narrower than previous rules and codifies the decision of U.S. Supreme Court in the 2023 case Sackett v. EPA.