Ask an Expert

In this month’s feature, BC subject matter expert Shelby Smith covers how the Water Infrastructure Finance and Innovation Act (WIFIA) program works.

Question: I read that the EPA is offering $6.5 billion in new funding to accelerate water and wastewater infrastructure projects through the WIFIA program. What can you tell me about this funding opportunity?

Answer: WIFIA loans offer a low, fixed interest rate with flexible financial terms. Loans can be used to cover up to 49% of eligible projects costs including feasibility planning through design, construction, program management fees, costs for applying for the loan, and other financing costs. For this funding year, up to 80% of eligible project costs for small communities may be covered.

Broad eligibility

The program has several categories of eligible borrowers including local, state, tribal, federal government entities, and other specified groups. Private borrowers are eligible but must have public sponsors and must demonstrate that they support the affected state, local, or tribal government.

Eligible projects vary from wastewater conveyance and treatment projects to desalination, aquifer recharge, water recycling projects and beyond. Eligible project cost depends on community size: Minimum project cost is $20 million for large communities and $5 million for smaller communities (fewer than 25,000 population).

For a full listing of eligible borrowers and projects, please refer to the EPA’s WIFIA Program Fact Sheet.

Project readiness and priorities

To obtain WIFIA funding, the EPA seeks projects that are “ready to proceed.” These are projects that are planned one to three years out and will be incurring construction costs, or may be incurring construction costs at about the time the loan closes.

The EPA’s 2021 priorities are projects tied to economically stressed communities, protecting against extreme weather events, aging infrastructure and conveyance systems, lead and emerging contaminants in water systems, or innovative approaches.

Getting connected
EPA staff are approachable and ready to help. We’ve connected clients to EPA WIFIA experts for one-on-one meetings to present project ideas; ask questions; and obtain input on project eligibility, financial benefits, delivery methods, and other technical considerations for their project or group of projects.