EPA Announces $268 Million WIFIA Loan for Substantial Water Reuse Project in Virginia
PHILADELPHIA – Today, the U.S. Environmental Protection Agency announced a $268 million Water Infrastructure Finance and Innovation Act (WIFIA) loan to Hampton Roads Sanitation District (HRSD), which serves areas across southeast Virginia and the Eastern Shore. This is the third WIFIA loan, and part of a $1.3 billion agreement to implement the Sustainable Water Infrastructure for Tomorrow (SWIFT) Program, which will re-charge the Potomac Aquifer and help secure the drinking water supply for 1.9 million residents.
“EPA is working with local partners to address water challenges such as diminishing groundwater supplies and safely managing wastewater to protect our treasured ecosystems,” said EPA Principal Deputy Administrator for Water Bruno Pigott.
“With EPA financing, the Hampton Roads Sanitation District is tackling these challenges. They are upgrading water-treatment facilities to treat wastewater, re-charge the Potomac Aquifer and reduce wastewater discharges into Chesapeake Bay,” Pigott said. “All of this, while creating local jobs. Thanks to the Biden-Harris administration’s Investing in America agenda and unprecedented funding for water through the Bipartisan Infrastructure Law, we are seeing water infrastructure investments help communities across the country.”
Wastewater treatment facilities in parts of southeastern Virginia need upgrades to improve efficiency and save water. The Sustainable Water Infrastructure for Tomorrow (SWIFT) Program plans to utilize water reuse and advanced water treatment technologies to replenish the stressed Potomac Aquifer with highly treated water that meets drinking water standards. This program, funded in part by EPA’s WIFIA loans, will launch 20 construction projects to upgrade water infrastructure in the area.
Not only will these projects improve climate resilience and help ensure a sustainable drinking water supply. They will also improve the water quality of the Chesapeake Bay by reducing approximately 50 million gallons a day, of Hampton Roads Sanitation District’s wastewater discharges to the watershed.
“As we face increasing environmental challenges, HRSD’s SWIFT program represents an important step toward sustainable, ‘one water’ management,” said HRSD General Manager and CEO Jay Bernas. “This innovative initiative not only enhances our water quality, but also safeguards our community’s future for generations to come.”
This is the third WIFIA loan under a master agreement that will commit $1.3 billion, nearly half of Hampton Roads Sanitation District’s $2.9 billion initial SWIFT Program costs. The remaining costs will be funded by Virginia’s Clean Water State Revolving Fund financing under a similar agreement and borrower produced contributions. The WIFIA loan’s flexible structure, including the borrowers' ability to defer principal payments and structure the loan around other debt, helps the district manage program costs while securing additional funding sources.
Since its creation, EPA’s Water Infrastructure Finance and Innovation Act program has announced nearly $21 billion in financing to support $45 billion in water infrastructure projects that are strengthening drinking water, wastewater, and stormwater infrastructure while creating over 150,000 jobs.
Learn more about the EPA’s WIFIA Program and water infrastructure investments under the Bipartisan Infrastructure Law.
Background
Established by the Water Infrastructure Finance and Innovation Act of 2014, the WIFIA program is a federal loan program administered by the EPA. The WIFIA program aims to accelerate investment in the nation’s water infrastructure by providing long-term, low-cost supplemental credit assistance for regionally and nationally significant projects. The WIFIA program has an active pipeline of pending applications for projects that will result in billions of dollars in water infrastructure investment and thousands of jobs.
EPA is in its 8th selection round for WIFIA financing. In this round, EPA is offering $6.5 billion through WIFIA, and $1 billion through SWIFIA, which is a loan program exclusively for State infrastructure financing authority borrowers. EPA is accepting letters of interest for WIFIA and SWIFIA loans. Learn more about submitting a letter of interest for a WIFIA loan.
In addition to WIFIA loans, there are many federal funding resources available for communities and utilities to improve vital water and wastewater resources. President Biden’s Bipartisan Infrastructure Law is a once-in-a-generation investment in our nation’s infrastructure and competitiveness.