United States
Environmental Protection Agency
FISCAL YEAR 2019
Justification of Appropriation
Estimates for the Committee
on Appropriations
Water Infrastructure Finance and Innovation
Fund
February 2018
EPA- 190-R-18-001	www.epa.gov/ocfo

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Environmental Protection Agency
2019 Annual Performance Plan and Congressional Justification
Table of Contents - Water Infrastructure Finance and Innovation Fund	
Resource Summary Table	587
Program Projects in WIFIA	587
Water Quality Protection	588
Water Infrastructure Finance and Innovation	589
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Environmental Protection Agency
FY 2019 Annual Performance Plan and Congressional Justification
APPROPRIATION: Water Infrastructure Finance and Innovation Fund
Resource Summary Table
(Dollars in T
lousands)

FY 2017
Actuals
FY 2018
Annualized
CR
FY 2019
Pres Budget
FY 2019 Pres
Budget v.
FY 2018
Annualized CR
Water Infrastructure Finance and
Innovation Fund




Budget Authority
$3,597.7
$12,932.0
$20,000.0
$7,068.0
Total Workyears
9.6
12.0
12.0
0.0
Bill Language: WIFIA
For the cost of direct loans and for the cost of guaranteed loans, as authorized by the Water
Infrastructure Finance and Innovation Act of 2014, $17,000,000, to remain available until
expended: Provided, That such costs, including the cost of modifying such loans, shall be as
defined in section 502 of the Congressional Budget Act of1974: Providedfurther, That these funds
are available to subsidize gross obligations for the principal amount of direct loans, including
capitalized interest, and total loan principal, including capitalized interest, any part of which is to
be guaranteed, not to exceed $2,073,000,000.
In addition, fees authorized to be collected pursuant to sections 5029 and 5030 of the Water
Infrastructure Finance and Innovation Act of 2014 shall be deposited in this account, to remain
available until expended, for the purposes provided in such sections.
In addition, for administrative expenses to carry out the direct and guaranteed loan programs,
notwithstanding section 5033 of the Water Infrastructure Finance and Innovation Act of 2014,
$3,000,000, to remain available until September 30, 2020.
Program Projects in WIFIA

[Dollars in Thousands)
Program Project
FY 2017
Actuals
FY 2018
Annualized
CR
FY 2019 Pres
Budget
FY 2019 Pres
Budget v.
FY 2018 Annualized
CR
Water Quality Protection




Water Infrastructure Finance and
Innovation
$3,597.7
$12,932.0
$20,000.0
$7,068.0
TOTAL WIFIA
$3,597.7
$12,932.0
$20,000.0
$7,068.0
*For ease of comparison, Superfund transfer resources for the audit and research functions are shown in the Superfund
account.
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Water Quality Protection
588

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Water Infrastructure Finance and Innovation
Program Area: Water Quality Protection
Goal: Core Mission
Objective(s): Provide Clean and Safe Water

(Dollars in Thousands)

FY 2017
Actuals
FY 2018
Annualized
CR
FY 2019 Pres
Budget
FY 2019 Pres
Budget v.
FY 2018 Annualized
CR
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Innovation i'unil"
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Total Budget Authority
$3,597.7
$12,932.0
$20,000.0
$7,068.0
Total Workyears
9.6
12.0
12.0
0.0
*The FY 2017 Appropriations Act (P.L. 115-31) provided the WIFIA program with $10 million; this funding
supplemented $20 million previously provided in FY 2017 by a Continuing Resolution (P.L. 114-254).
Program Project Description:
The Nation is facing the challenge of finding sustainable financing for aging water infrastructure.
Dependable, available drinking water and sanitation in communities relies on working, modern
infrastructure, but leaking water collection and distribution systems, and inadequate drinking water
and wastewater treatment continue to plague communities across the country. To help address this
priority, Congress enacted the Water Infrastructure Finance and Innovation Act of 2014 (WIFIA).1
The WIFIA program was designed to stimulate capital market investment, not supplant it, by
structuring WIFIA loans in a way that makes investment in projects attractive to market
participants. The WIFIA program directly supports the Agency's goal to ensure waters are clean
and safe through improved water infrastructure.
The WIFIA program is authorized to provide and service direct loans and loan guarantees to cover
up to 49 percent of eligible costs for drinking water and wastewater infrastructure projects of
regional or national significance. The WIFIA program is designed to offer credit assistance with
flexible terms in order to attract private participation, encourage new revenue streams for
infrastructure investment, and allow public agencies to get more projects done. The WIFIA
program requires a small appropriation compared to its potential loan volume. The first round of
selections for the $30 million from the FY 2017 appropriations has the potential, when combined
with other funding sources, to spur up to $5 billion in total infrastructure investment. With $20
million in FY 2019 appropriations, EPA could potentially provide up to $2 billion in credit
assistance, which could spur up to $4 billion in total infrastructure investment.2 This makes the
WIFIA program credit assistance a powerful new tool to help address a variety of water
infrastructure needs.
For the FY 2017 appropriated funds, EPA issued a Notice of Funding Availability on
January 10, 2017, requesting prospective borrowers to submit Letters of Interest (LOI). EPA
1	WIFIA is a subtitle within the Water Resources Reform and Development Act of 2014 (WRRDA).
2	This approximation is based on estimated notional subsidy costs from FY17 projects. Actual subsidy cost will be determined
on a loan-by-loan basis.
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received 43 LOIs for direct loans by the April 10, 2017 deadline. On July 19, 2017, EPA
announced the 12 projects selected to continue with the application process.3 The selected projects
encompassed the broad range of project types that the WIFIA program can finance including
wastewater, drinking water, stormwater, and water recycling projects. Due diligence and
underwriting activities will continue into FY 2018 with the expectation that funds will be obligated
for water infrastructure projects in FY 2018.
Eligible assistance recipients include, amongst others, corporations and partnerships, municipal
entities, and State Revolving Fund (SRF) programs. The WIFIA program will complement the
existing SRF programs as an additional source of low-cost capital to help meet the United States'
growing water infrastructure needs and address key priorities. Entities with complex water and
wastewater projects are attracted to the WIFIA program and EPA will work to provide assistance
to a diverse set of projects.
FY 2019 Activities and Performance Plan:
Work in this program directly supports Goal 1/Objective 1.2, Provide Clean and Safe Water in
EPA's FY 2018 - 2022 Strategic Plan. The FY 2019 request of $20 million includes the funds
necessary to finance WIFIA drinking water and wastewater infrastructure projects (following the
requirements of the Federal Credit Reform Act of 1990 and OMB Circulars A-ll and A-129).
While the WIFIA program provides expansive project eligibilities, particular project attributes will
be emphasized in the project selection process. These attributes will be identified in the Notice of
Funding Availability, published after appropriations, and may include attributes such as the extent
of private financing, the ability to serve regions with significant water resource challenges, the
regional or national significance, the likelihood that the project can proceed at an earlier date due
to WIFIA financing, and the extent to which the project uses new or innovative approaches, among
others.
Of the total $20 million request to implement the WIFIA program, $3 million is for EPA's
management and operation administrative expenses, including contract support and associated
payroll for 12 FTE. The request level coupled with the fee expenditure authority allows EPA to
undertake the independent aspects of loan intake and origination; project technical evaluation,
including credit review, engineering feasibility review, and loan term negotiation; risk
management; portfolio management and surveillance; and loan servicing for an initial set of
projects. The funds associated with the management and operation of the program will be available
for two years.
The FY 2019 budget also includes authority to use fee revenue as outlined in Water Resources
Reform and Development Act (WRRDA), Sections 5029(a), 5030 (b), and 5030(c). EPA plans to
collect fees in FY 2019. Fee revenue is for the cost of contracting with expert services such as
financial advisory, legal advisory, and engineering firms. The WIFIA program fee expenditure
authority would be in addition to the $3 million request for management and operations
administrative expenses.
3 For more information: https://www.epa.gov/wifiaAvifia-fy-2017-selected-projects-suiiimarv-factsheets.
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Performance Measure Targets:

FY 2018
FY 2019
(INFRA-01) Billions of non-federal dollars leveraged by EPA water
Target
Target
infrastructure finance programs (CWSRF, DWSRF and WIFIA).
8
8
Work under the Infrastructure Assistance: Drinking Water State Revolving Fund, Infrastructure
Assistance: Clean Water State Revolving Fund, and the Water Infrastructure Finance and
Innovation program projects all support performance measure (INFRA-01) Number of non-federal
dollars leveraged by EPA water infrastructure finance programs (CWSRF, DWSRF and WIFIA).
FY 2019 Change from FY 2018 Annualized Continuing Resolution (Dollars in Thousands):
•	(+$675.0) This change to fixed and other costs is an increase due to the recalculation of
base workforce costs for existing FTE due to adjustments in salary, essential workforce
support, and benefit costs.
•	(+$6,393.0) This program change reflects an increase in the WIFIA program. This change
represents an increase to the amount of credit subsidy funding available to make loans
under this program.
Statutory Authority:
Water Resources Reform and Development Act of 2014, Title V, Subtitle C. Further Continuing
and Security Assistances Appropriations Act, 2017, P.L. 114-254.
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