The U.S. Environmental Protection Agency (EPA) recently announced the application timeline for low interest loans to support water infrastructure projects. Beginning September 6, letters of interest (LOI) may be submitted by prospective borrowers looking to develop projects through the Water Infrastructure Finance and Innovation Act (WIFIA) program and the State Infrastructure Financing Authority WIFIA (SWIFIA) program. A total of $5.5 billion will be available for WIFIA projects for fiscal year 2022. SWIFIA loans will have a total of $1 billion available to prospective borrowers.
The current round of funding will prioritize four project areas that include supporting one water innovation and resilience and addressing PFAS and emerging contaminants. Increasing investment in economically stressed communities will also be prioritized as part of President Biden’s Justice40 initiative. The goal is to ensure 40 percent of benefits from federal investments are delivered to underserved communities. Projects to make rapid progress on lead service line replacement will also be a central focus.
“Water infrastructure provides the foundation for healthy and vibrant communities by delivering safe drinking water and returning our treated wastewater to the environment,” EPA Assistant Administrator for Water Radhika Fox said in a press release. “In too many communities, these essential pipes and pumps are decades old and need to be upgraded. That’s why EPA is providing $6.5 billion in low-cost financing through WIFIA and SWIFIA that can help revitalize our water systems while creating good paying jobs and delivering significant economic benefits, especially in underserved and overburdened communities.”
EPA has also announced changes to the way the agency will be reviewing LOIs, which will be on a rolling basis for the current funding availability. The shift to a rolling selection process is in response to market conditions such as cost inflation and supply chain challenges. As LOIs will be reviewed in the order they are received, EPA is encouraging prospective buyers to make submissions early in the availability period.