News Releases from Region 05
EPA selects Indiana Finance Authority to apply for $436M water infrastructure loan
For Immediate Release: No. 16-OPA071
CHICAGO – U.S. Environmental Protection Agency is inviting the Indiana Finance Authority to apply for a Water Infrastructure Finance and Innovation Act (WIFIA) loan of $436 million. The Indiana Finance Authority is one of twelve prospective borrowers selected to apply for WIFIA loans after submitting letters of interest to EPA in April 2017.
In fiscal year 2017, the WIFIA program received $25 million, including an additional $8 million in the Consolidated Appropriations Act of 2017 which was signed into law by President Donald Trump on May 5, 2017. This year’s projects will also leverage more than a billion dollars in private capital and other funding sources including EPA’s State Revolving Fund (SRF) loans, to help finance a total of $5.1 billion in water infrastructure investments. The selected projects demonstrate the broad range of project types that the WIFIA program can finance including wastewater, drinking water, stormwater, and water recycling projects.
“Rebuilding America’s infrastructure is a critical pillar of the President’s agenda,” said EPA Administrator Scott Pruitt. “These large-scale projects will improve water quality for 20 million Americans, especially those communities that need it the most – such as rural and urban communities.”
The WIFIA credit assistance will expand the reach of Indiana’s SRF programs and allow the Indiana Finance Authority to fund dozens of additional projects in communities across the state.
“Administrator Pruitt and EPA officials continue to make good on their promise to engage with local and state leaders in tangible ways," said Indiana Governor Eric J. Holcomb. "I am grateful for the partnership forged with the EPA and this new opportunity to unlock federal funds for important water infrastructure investments."
“We look forward to working in partnership with EPA to fully develop this additional financing tool and we believe it will provide enhanced flexibility and savings for the Indiana utilities that rely upon the SRF Loan Program for their infrastructure financing needs,” said Jim McGoff, chief operating officer and director of environmental programs for the Indiana Finance Authority.
The Water Infrastructure Finance and Innovation Act established by Congress in 2014 requires EPA to follow a selection framework that includes an assessment of letters of interest by performing an eligibility screening, a preliminary creditworthiness assessment, and an evaluation of the selection criteria. The WIFIA program selection criteria and respective weights are available in the WIFIA Handbook (Appendix C, page 53).
Established by the Water Infrastructure Finance and Innovation Act of 2014, the WIFIA program is a new federal loan and guarantee program at EPA that 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’s funding in President Trump’s fiscal year 2018 budget is $20 million, an amount that should fund approximately $1 billion in loans. For more information about the WIFIA program, visit: https://www.epa.gov/wifia