On July 19, the Environmental Protection Agency (EPA) published details of 12 water/wastewater projects worth $5.1 billion that it selected to qualify for low-interest federal loans in the first round of its WIFIA program.
Four of the 12 projects chosen to submit loan applications are from California utilities and account for $2.5 billion in project costs—half the total. A single $436-million loan, about 20% of the available lending capacity, is being sought to support $890 million in State Revolving Fund lending in Indiana.
The Trump Administration’s expectation is that the Water Infrastructure Finance and Innovation Act (WIFIA) program will generate a spurt of private investment in the municipal water market. In fact, EPA states in its rollout document that $1 billion of the $5.1 billion in capital spending induced by the FY 2017 round of WIFIA loans will come from private investors.