WIFIA Series - Article 4 of 4
There is rarely a “perfect” funding source to address every water system challenge. Instead, water systems typically utilize a variety of funding sources to address their drinking water, wastewater, and stormwater infrastructure needs. Some of these potential funding sources are the Water Infrastructure Finance and Innovation Act (WIFIA) program, the Clean Water and Drinking Water State Revolving Fund (SRF) programs, and the Bureau of Reclamation (Reclamation) Title XVI funding program.
The WIFIA program was designed to be a supplemental lender, as WIFIA funding can only fund up to 49% of a project’s costs. As a result, the WIFIA program compliments other forms of financing to accelerate water infrastructure projects for communities. The WIFIA program acts as a “patient investor”, leveraging the federal government’s long-term lending horizon and offering flexible loan terms. For example, the City of Sunnyvale received a $220 million WIFIA loan, took advantage of the WIFIA program’s flexible loans terms, and created a customized repayment schedule that wraps around a $168 million SRF loan. As the patient investor, principal payments on the WIFIA loan do not begin until 30 years after project completion.
Complications can arise when multiple funding entities are involved in a project, such as duplicative requirements and different reporting schedules. To minimize these complications, the WIFIA program, California SRF programs (administered by the California State Water Resources Control Board), and Reclamation Title XVI program work together to streamline processes and collaborate on project requirements. The programs work regularly at the programmatic level to share information and ensure coordination, where needed. For example, the WIFIA program meets quarterly with the California SRF programs to discuss the status of co-funded projects and potential future projects and legal and post-loan closing logistics. These cooperative efforts increase efficiency, reduce burden, and maximize benefits to water systems utilizing WIFIA, SRF, and Reclamation Title XVI funding.
The WIFIA program has co-funded dozens of projects across the country with the SRF and/or Reclamation Title XVI programs. Specifically in California, the WIFIA program has co-funded approximately 20 projects with the SRF programs and 6 projects with the Reclamation Title XVI program.
For co-funded projects, the WIFIA program, California SRF programs, and Reclamation Title XVI program designate a lead agency for the environmental review and coordinate on environmental consultations. For example, with the City of Morro Bay, the WIFIA team led the required environmental consultations. The California SRF was able to use the WIFIA program’s environmental review documentation, reports, and consultations and was a concurring party on the Memorandum of Agreement executed under the National Historic Preservation Act. When Morro Bay receives Reclamation Title XVI funding for this project, Reclamation will be able to use consultations completed earlier by the WIFIA program. Similarly, for the City of Oceanside’s project, the WIFIA program used Oceanside’s California Environmental Quality Act environmental review documentation, required by the California SRF, and environmental documentation, reports, and consultations completed by Reclamation to avoid duplication of effort and expedite the WIFIA program’s environmental review process.
For more information on the WIFIA programs’ environmental review process, visit the WIFIA website.
Like a bank, the WIFIA program has funding available on an ongoing basis. This allows prospective borrowers to request financing on their 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.
Thank you to our colleagues at the California State Water Resources Board and Bureau of Reclamation for your collaboration on this article.
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.
