WIFIA Series - Article 2 of 4
Changes in climate, such as more persistent drought and increased stormwater runoff, can have significant effects on the infrastructure and operations of water utilities. Communities across the State of California are proactively addressing anticipated climate impacts and incorporating changes into their water systems, including constructing new infrastructure, relocating existing infrastructure, increasing system efficiency and resiliency, and planning for future impacts from climate change.
One resource available to water systems and communities as they address the impacts of climate change is the Water Infrastructure Finance and Innovation Act (WIFIA) program, a government bank at the U.S. Environmental Protection Agency (EPA) that provides long-term, low-cost financing to borrowers for drinking water, wastewater, and stormwater infrastructure projects.
The WIFIA program can fund a variety of projects related to climate resilience and climate mitigation. Climate resilience is a water system’s ability to maintain function despite climate-related stress and to adapt to be better prepared for future events. Climate mitigation refers to actions limiting the severity and rate of future climate change by reducing greenhouse gas emissions and advancing nature-based solutions. One of the WIFIA program’s funding priorities is projects that support climate resilience and mitigation. Examples of water infrastructure projects related to climate resilience and climate mitigation are listed in the table below.
| Climate Resilience Projects | Climate Mitigation Projects |
| Building infrastructure to manage combined sewer system overflows | Installing wind or solar systems that provide power to treatment facilities |
| Installing flood walls, backup generators, or storage tanks at treatment facilities | Capturing methane gas to produce renewable energy and power treatment facilities |
| Constructing stormwater infrastructure | Producing biogas from wastewater solids or other sources to power treatment facilities |
| Conserving water supplies through water reuse and water recycling | Incorporating energy efficient upgrades
(e.g., smart meters) |
| Building or rehabilitating dams and reservoirs | Generating hydroelectric power to offset energy requirements |
The WIFIA program has provided financing to many borrowers throughout California for their climate resilience and climate mitigation projects. Several examples are described below.
- Building infrastructure to manage combined sewer system overflows: the San Francisco Public Utilities Commission (SFPUC) utilized a $369 million WIFIA loan to implement stormwater projects and construct infrastructure to ensure efficient and reliable transport of combined flows to the treatment facilities. This loan is the first under a WIFIA master agreement that commits $791 million to SFPUC for wastewater resilience projects.
- Constructing stormwater infrastructure: The Coachella Valley Water District (CVWD) received $59 million in WIFIA funding for its stormwater channel improvement project, which will increase the District’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.
- Conserving water supplies through water reuse and water recycling: The Orange County Water District (OCWD) received a $135 million WIFIA loan to expand its groundwater replenishment system to replenish the Orange County Groundwater Basin and reduce OCWD’s need for imported water. This water reuse project provides an additional 30,000 acre-feet per year drought-proof water supply. Upon loan closing in 2018, OCWD was on track to save an estimated $16 million with WIFIA financing. In 2020, OCWD took advantage of lower interest rates, completed an interest rate reset, and saved an additional $75 million.
- Building or rehabilitating dams and reservoirs: The United Water Conservation District received a $13 million loan for the planning and design costs of modernizing the Santa Felicia Dam. Once modernized, the Santa Felicia Dam will increase resiliency to seismic events, improve flood protection, and expand drinking water supply. This planning and design loan is the first loan under a WIFIA master agreement, which commits $100 million to United Water for the Santa Felicia Dam modernization project.
- Producing biogas from wastewater solids or other sources to power treatment facilities: Silicon Valley Clean Water (SVCW) 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.
- Incorporating energy efficient upgrades: The Inland Empire Utilities Agency (IEUA) received over $196 million in WIFIA funding for regional wastewater system improvements, including expanding its water recycling plants and incorporating energy efficient equipment. IEUA was a repeat WIFIA borrower for this transaction, which streamlined the loan process. Utilizing WIFIA financing will save IEUA approximately $153 million over the life of the loan.
For more information about all WIFIA-financed projects in California, visit the WIFIA program’s Closed Loans table.
Like a bank, the WIFIA program has funding available on an ongoing basis. This allows prospective borrowers to request financing on their own schedule. When a prospective borrower is ready, they can submit a letter of interest to the WIFIA program to begin the financing process.
Contact the WIFIA team today to learn more about WIFIA financing and how to submit a letter of interest. Visit the WIFIA program website and contact WIFIA staff directly at wifia@epa.gov.
ABOUT THE WIFIA PROGRAM
The WIFIA program is a government bank operated by the U.S. EPA that provides supplemental, flexible, low-cost credit assistance to public and private borrowers for various types of wastewater, drinking water, and stormwater projects. The WIFIA program offers long-term loans that can be combined with 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.
Jorianne Jernberg is the director of the WIFIA Management Division. In this capacity, she is spearheading the implementation of a Federal infrastructure bank at EPA – overseeing the origination, underwriting, negotiation, and monitoring of water, wastewater, and stormwater projects around the country. Prior to joining EPA, Jorianne served as the head of risk management and financial operations at the TIFIA program within the Department of Transportation where she was responsible for a team conducting a wide range of financial, programmatic, and credit functions.
Dallas Shattuck serves as a Senior Program Manager for the U.S. EPA’s Water Infrastructure Finance and Innovation Act program, where she focuses on program processes, policy, and stakeholder engagement. Previously, Dallas spent over 4 years working on the Drinking Water State Revolving Fund team at U.S. EPA. Dallas has a M.A. in Environmental Resource Policy from the George Washington University and B.S. degrees in Chemistry and Criminal Justice from Saint Francis University.
