EPA SOLICITING LETTERS OF INTEREST FOR $1 BILLION IN LOANS AVAILABLE FOR WATER INFRASTRUCTURE PROJECTS THROUGH THE WATER INFRASTRUCTURE FINANCE AND INNOVATION ACT

The U.S. Environmental Protection Agency (EPA) announced the availability of approximately $1 billion in credit assistance for water infrastructure projects under the new Water Infrastructure Finance and Innovation Act (WIFIA) program. The WIFIA program is a federal credit program administered by EPA for eligible water and wastewater infrastructure projects.

The WIFIA program can fund development and implementation activities for eligible projects:

• Drinking water treatment and distribution projects that are eligible for the Drinking Water SRF
• Drought prevention, reduction, or mitigation projects
• Enhanced energy efficiency projects at drinking water and wastewater facilities
• Brackish or seawater desalination, aquifer recharge, alternative water supply, and water recycling projects
• Acquisition of property if it is integral to the project or will mitigate the environmental impact of a project
• Wastewater conveyance and treatment projects that are eligible for the Clean Water SRF
• A combination of projects secured by a common security pledge or submitted under one application by an SRF program

Eligible borrowers are:

• Local, state, tribal, and federal government entities
• Partnerships and joint ventures
• Corporations and trusts

WIFIA application process is three phases:

• Phase 1: Project Selection: EPA announces the amount of funding it will have available and solicits letters of interest from prospective borrowers. In the letter of interest, prospective borrowers demonstrate their projects eligibility, financial creditworthiness, engineering feasibility, and alignment with EPA’s policy priorities. Based on this information, EPA selects projects which it intends to fund and invites them to continue to the application process.
• Phase 2: Project Approval: Each invitee submits an application for WIFIA credit assistance. Using this information, the WIFIA program conducts a detailed financial and engineering review of the project. Based on that review, the WIFIA program proposes terms and conditions for the project and negotiates them with the prospective borrower until they develop a mutually agreeable term sheet. The Administrator demonstrates project approval by executing the project’s term sheet.
• Phase 3: Negotiation and Closing: Based on the term sheet, the WIFIA program finalizes the terms of credit assistance to a prospective borrower.  At closing, the Administrator and the prospective borrower execute the credit agreement, which is the binding legal document that allows the borrower to receive WIFIA funds.

For more details please visit the EPA/WIFIA website here. or sign up for the WIFIA information sessions.

The CA-NV Section, AWWA is documenting our members’ interest and participation in the WIFIA program by compiling copies of intent letters from the Phase 1 application process. To participate in this documentation, simply email a copy of your intent letter to info@ca-nv-awwa.org. We appreciate your participation with this project.

Funding opportunity for watershed groups

Watershed groups that are grassroots, non-regulatory entities are eligible for the Bureau of Reclamation WaterSMART Phase II Grants. These grants provide up to $100,000 for 2-year programs ($50,000/year) to address critical water supply needs, water quality, and ecological resilience. The purpose of this program is to support established watershed groups in implementing on-the-ground watershed management projects. Funding will support the following types of primary projects:

• Improving stream channel structure and complexity: activities that improve channel structure and complexity to improve or maintain habitat and restore conditions supporting a healthy river channel, protect and stabilize stream or river banks, decrease sediment, and improve water quality and temperature
• Restoring or enhancing floodplains: activities that reconnect floodplains to the current channel to provide floodplain habitat, reduce flood risk downstream, and improve water quality and temperature
• Restoring or enhancing vegetation: activities that restore vegetation to improve the health of water sources and riparian ecosystems, reduce erosion, reduce flood risk, increase drought resilience, improve water quality and temperature, and restore habitat
• Controlling invasive species: activities to prevent or mitigate the impacts of invasive species likely to negatively impact the river, stream, or riparian ecosystem
• Improving ecological resilience through water conservation activities: activities that conserve water through small-scale water delivery system improvements to improve ecological resilience
• Improving ecological resilience through water management activities: water management activities that benefit aquatic and riparian ecosystems within the watershed
• Addressing water quality through mitigation: activities that prevent or remediate downstream contamination from agriculture, forestry operations, wildfires, and mining

Applicants must provide 50% of the project costs via non-federal cash or in-kind contributions. The deadline for the application is February 15.