Salus February 2020 www.epa.gov/wifia email: wifia@epa.gov Publication Number: 830R20001 WIFIA PROGRAM ------- A MESSAGE FROM OUR DIRECTOR I am excited to present the Water Infrastructure Finance and Innovation Act (WIFIA) program's first Annual Report, Since 2014, the WIFIA program has grown from an idea for how we can help communities finance crucial water infrastructure projects to a multi-billion dollar program. In building this new program, our operating principles have been to employ creativity, demonstrate flexibility, and continuously adapt to meet water sector needs. This new Environmental Protection Agency (EPA) loan program is tailored to assist communities across the country by providing low-cost financing to help implement their high priority water infrastructure projects. With loans totaling $9 billion in the pipeline, we have a lot to look forward to, Over the next five years, we will focus on the following priorities: • Attracting and selecting a diverse set of projects in communities across the country; • Building and maintaining positive and long-term relationships with our borrowers and stakeholders by focusing on great customer service; and • Offering an outstanding value proposition to the industry by creating a flexible, customized loan product that complements other sources of capital like the State Revolving Funds and bond market. I want to thank our borrowers who have provided tremendous feedback on how to improve our processes and have served as resources to other prospective borrowers. We could not have achieved such early success without your early recognition of the value of this program. JORIANNE JERNBERG DIRECTOR, WIFIA PROGRAM CONGRESS CREATED WIFIA TO ADDRESS GROWING WATER INFRASTRUCTURE NEEDS In 2014, Congress passed the Water Infrastructure Finance and Innovation Act to establish a new federal loan and guarantee program at the EPA to help meet the growing water infrastructure needs in communities across the county. u OUR MISSION Accelerate investment in our nation's water and wastewater infrastructure by providing long-term, low-cost supplemental credit assistance under customized terms to creditworthy water and wastewater projects of national and regional significance. Over the past three years, Congress increased the program's lending capacity from $2.5 billion in 2017 to $6 billion in 2019 due to stakeholder support, strong interest from prospective borrowers, and the program's success in closing loans. Prospective borrowers demonstrated their need for low-cost financing by submitting letters of interests for 156 projects requesting over $21 billion in WIFIA loans. The WIFIA program has successfully closed 14 loans and has an active pipeline of pending applications for projects that will result in billions of dollars in water infrastructure investment and thousands of new jobs. The WIFIA program can finance a wide range of water and wastewater projects, including traditional water and wastewater treatment plants and conveyance systems, water recycling and desalination plants, drought prevention and mitigation projects, stormwater management, green infrastructure, non-point source pollution control, and source water protection. Eligible WIFIA borrowers include local, state, tribal, and federal government entities, partnerships and joint ventures, corporations and trusts, and State Revolving Fund programs. 2019 WIFIA ANNUAL REPORT ------- WIFIA LOANS SAVE BORROWERS MONEY From April 2018 to December 2019, the WIFIA program has closed fourteen loans totaling over $3.5 billion in 10 states, saving borrowers $1.2 billion compared to issuing bonds and improving water infrastructure for over 20 million people. Our current borrowers include local government entities, utilities, a State infrastructure financing authority, and a joint powers authority. The 14 WIFIA loans, ranging in size from $20.7 million to $699 million, are financing the rehabilitation and construction of water, wastewater, and stormwater systems to address aging infrastructure, meet regulatory requirements, and improve communities' long-term strategic planning. FISCAL YEAR 2019: EPA SELECTED 38 NEW PROJECTS TO APPLY FOR WIFIA LOANS Together, the selected borrowers are invited to apply for WIFIA loans totaling approximately $6 billion to help finance over $12 billion in water infrastructure investments. THE SELECTED PROJECTS BENEFIT f 18 STATES & 24 MILLION PEOPLE HH vvvvvvvvvv iiiitiiiit REQUESTED LOAN AMOUNT TO SUPPORT AGENCY PRIORITIES Repair, rehabilitate, and replace aging infrastructure: $4.4 BILLION Reduce lead and emergent contaminants in drinking water: $2.6 BILLION Water reuse or recycling project component: $1.4 BILLION o 2019 WIFIA ANNUAL REPORT 2 ------- BORROWER SPOTLIGHTS • -,» ¦:/"I": APRIL 2018: KING COUNTY GROUNDBREAKING KING COUNTY LOCATION: Seattle, Washington WIFIA LOAN AMOUNT: $134.5 million In April 2018, the WIFIA program closed its first loan to King County just 5.5 months after the borrower applied. King County is constructing a new Wet Weather Treatment Station to treat up to 70 million gallons of combined rain and wastewater a day, that would have otherwise discharged directly to the Duwamish River without treatment during storm events. BALTIMORE CITY DEPARTMENT OF PUBLIC WORKS LOCATION: Baltimore, Maryland WIFIA LOAN AMOUNT: $202 million Baltimore is the first borrower to receive a loan for multiple projects. The 14 projects will repair, rehabilitate, and replace existing wastewater conveyances, update treatment plants, and manage stormwater. These projects will eliminate sanitary sewer overflows. INDIANA FINANCE AUTHORITY LOCATION: 20 communities across Indiana WIFIA LOAN AMOUNT: $436 million 2019 WIFIA ANNUAL REPORT The Indiana Finance Authority is the first State Revolving Fund to borrow directly from WIFIA. This loan will help finance 23 wastewater and drinking water projects. The projects will serve over 1.2 million people in both Indianapolis and small and medium Indiana communities facing challenges with adequate and reliable water infrastructure. ------- BORROWER SPOTLIGHTS SILICON VALLEY CLEAN WATER LOCATION: Redwood City, California WIFIA LOAN AMOUNT: $218 million The Regional Environmental Sewer Conveyance Upgrade Program will rehabilitate aging wastewater infrastructure and construct new facilities to improve the system's reliability and protect the San Francisco Bay. This borrower is the first Joint Powers Authority, allowing four separate entities with unique needs and resources, to participate in a WIFIA loan. A TUALATIN VALLEY WATER DISTRICT & CITY OF HILLSBORO LOCATION: Beaverton and Hillsboro, Oregon WIFIA LOAN AMOUNT: $387.7 million (TVWD), $250.5 million (COH) The Tualatin Valley Water District and the City of Hillsboro will jointly implement the Willamette Water Supply System project. Each borrower received a separate loan to implement the project together. This project will accommodate current and future populations in both areas and provide a water supply that is resilient against natural disasters, such as earthquakes. n CITY OF OAK RIDGE LOCATION: Oak Ridge, Tennessee WIFIA LOAN AMOUNT: $20.7 million The WIFIA program and Tennessee Drinking Water State Revolving Fund will jointly finance the Oak Ridge Water Treatment Plant. The City of Oak Ridge will design and construct a new ultrafiltration membrane drinking water treatment plant to replace the existing 80-year old conventional treatment plant, which is currently at capacity and beyond its useful life. 2019 WIFIA ANNUAL REPORT ------- ACCOMPLISHMENTS TO DATE CLOSED 14 LOANS e TOTAL FINANCING $3.5 BILLION TOTAL SAVINGS $1.2 BILLION % of projects supporting Clean Water Act and Safe Drinking Water Act compliance 57% INVITED 89 PROJECTS TO APPLY FOR FINANCING Population served by selected projects 62 MILLION $ Total fin $13 inancing requests over BILLION FUNDS REQUESTED BY PROJECT TYPE DRINKING WATER I WASTEWATER I WATER RECYCLING COMBINED* $3.9 BILLION $6.6 BILLION $1.3 BILLION $1.7 BILLION ¥ GARNERED NATIONAL INTEREST & ~ includes projects that have wastewater and drinking water components Selected Project Letter of Interest Submited LOANS CLOSED FROM APRIL 2018 TO DECEMBER 2019 King County, $134.5 million City of Omaha, $69.7 million Orange County Water District, $135 million San Francisco Public Utilities Commission, $699 million City of San Diego, $614 million Metropolitan St. Louis Sewer District, $47.7 million Baltimore City Department of Public Works, $202 million Miami-Dade County, $99.7 million Silicon Valley Clean Water, $218 million Tualatin Valley Water District, $387.7 million City of Hillsboro, $250.5 million Narragansett Bay Commission, $268.7 million Indiana Finance Authority, $436 million City of Oak Ridge, $20.7 million 2019 WIFIA ANNUAL REPORT 5 ------- |