Water Infrastructure Finance and Innovation Act Program
On this page:
- Background
- Eligibility
- Available Technical Assistance
- Connections to Other EPA, Federal or Non-Governmental Efforts
Background
The Water Infrastructure Finance and Innovation Act program is a federal loan program operated by EPA headquarters that provides supplemental, flexible, low-cost credit assistance to public and private borrowers for all types of wastewater, drinking water and stormwater projects. The WIFIA program offers long-term loans that can be combined with Clean Water and Drinking Water State Revolving Fund assistance, municipal bonds, and federal and state grants to help communities deliver more critical water infrastructure projects for a lower cost with less impact on rate payers.
Like a bank, the WIFIA program has funding available on an ongoing basis. This allows prospective borrowers to request financing on their schedule. A rolling selection process allows EPA to provide year-round access to WIFIA funding and quicker selection decisions to prospective borrowers.
The WIFIA program’s loan process has three main phases – project selection, project approval, and project monitoring. More detailed information about the WIFIA loan process can be found in the Program Handbook or on the WIFIA loan process webpage.
Eligibility
Who is generally eligible to apply?
The WIFIA program offers broad eligibility and can provide financing to a variety of public and private credit-worthy borrowers, including:
- Local, state and tribal government entities
- Partnerships and joint ventures
- Corporations and trusts
- Clean Water and Drinking Water State Revolving Fund programs
The WIFIA program can fund a variety of water infrastructure projects that support clean and safe water access and help communities address a variety of challenges, including regulatory compliance, water quality or quantity issues, climate resilience and mitigation, lead service line replacement and aging infrastructure.
The WIFIA program can fund development and implementation activities for eligible projects, including:
- Projects that are eligible for the Clean Water SRF, notwithstanding the public ownership clause. Examples include wastewater, stormwater management, green infrastructure and nonpoint source projects.
- Projects that are eligible for the Drinking Water SRF. Examples include source, treatment, storage, transmission and distribution, and partnership projects.
- Projects that enhance energy efficiency in the operation of a public water system or a publicly owned treatment works.
- Brackish or seawater desalination, aquifer recharge, alternative water supply and water recycling projects.
- Drought prevention, reduction or mitigation projects.
- Acquisition of property if it is integral to the project or will mitigate the environmental impact of a project.
- A combination of projects secured by a common security pledge or submitted under one application by an SRF program.
Eligible project development and implementation activities include:
- Project planning and design
- Project development
- Construction
- Land and/or equipment acquisition
- Financing-related costs
WIFIA loans can fund projects whose costs exceed $5 million for small communities serving 25,000 or fewer people and $20 million for larger communities serving more than 25,000 people. The WIFIA program can fund a maximum of 49 percent of eligible project costs for large communities and up to a maximum of 80 percent of eligible project costs for small communities.
To learn more about the WIFIA program’s eligibilities and program features, review the Program Handbook.
How can projects funded by this program incorporate adaptation and resilience considerations?
The WIFIA program can fund a wide variety of projects related to climate resilience and mitigation. Since 2018, the WIFIA program has provided billions in loans to borrowers for climate resilience and mitigation projects. Examples of funded projects include:
- The Coachella Valley Water District (CVWD)in California received $59 million in WIFIA funding for its stormwater channel improvement project, which will increase CVWD’s capacity to capture and transport stormwater. As a result, this project will reduce stormwater runoff to nearby properties and save CVWD almost $10 million over the life of the WIFIA loan.
- The Toho Water Authority in Florida received a $188 million WIFIA loan for their One Water Program, which will incorporate alternative potable and non-potable water supply sources to offset groundwater demands. With this WIFIA loan, Toho will reduce reliance on fresh groundwater supplies while meeting customer demands and protecting the environment. By using WIFIA financing, Toho is expected to save $47 million.
- The City of Joliet in Illinois received two WIFIA loans, totaling over $300 million, for the Alternative Water Source program. The city’s primary water source will be unable to support regional demand by 2030. With this loan, the city will modernize its existing water distribution system, including building new pumping facilities and replacing deteriorating and undersized water mains. These improvements will reduce water loss in the system from over 30 percent to below 10 percent. WIFIA financing will save the city an estimated $71 million.
- The Silicon Valley Clean Water (SVCW) in California utilized a $74 million WIFIA loan for rehabilitation and expansion of the wastewater treatment plant and its energy system. As part of the project, SVCW will expand its energy system to harness biogas from food waste, offset energy requirements for the treatment plant, and reduce reliance on fossil fuels. By securing a WIFIA loan, SVCW will save an estimated $18 million.
For more information on the WIFIA program’s projects, visit our Closed Loans webpage.
Available Technical Assistance
WIFIA program staff can meet with prospective borrowers who have questions about WIFIA funding, want to discuss their project or are interested in learning more about the program. Additionally, the WIFIA program can provide technical assistance to prospective borrowers, particularly disadvantaged and small communities, that need support to complete their Letter of Interest (LOI) package.
There are various resources available on the WIFIA program website, including the Program Handbook and presentations and fact sheets.
Connections to Other EPA, Federal or Non-Governmental Efforts
As mentioned above, the WIFIA program can fund a maximum of 49 percent of eligible project costs for large communities and up to a maximum of 80 percent of eligible project costs for small communities. Therefore, all WIFIA projects are co-funded with other federal, state, local and private sources. The most common co-funding sources for WIFIA projects are the Clean Water State Revolving Fund and Drinking Water State Revolving Fund. To learn more, check out this fact sheet on how communities can use both WIFIA and SRF funding to accelerate water infrastructure projects.
Outside of EPA, the WIFIA program has co-funded several projects with the Bureau of Reclamation’s WaterSMART program. The WIFIA program can also co-fund with programs from other federal agencies, including the U.S. Department of Agriculture and the Federal Emergency Management Agency.
Of note – no more than 80 percent of the funding for a WIFIA project can be from federal sources.