United States
Environmental Protection Agency
FISCAL YEAR 2022
Justification of Appropriation
Estimates for the Committee
on Appropriations
Tab 11: Water Infrastructure Finance and Innovation Fund
May 2021
EPA-190-R-21-002	www.epa.gov/cj

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Environmental Protection Agency
FY 2022 Annual Performance Plan Congressional Justification
Table of Contents - Water Infrastructure Finance and Innovation Fund
Program Projects in WIFIA	708
Water Quality Protection	709
Water Infrastructure Finance and Innovation	710
705

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706

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Environmental Protection Agency
FY 2022 Annual Performance Plan and Congressional Justification
APPROPRIATION: Water Infrastructure Finance and Innovation Fund
Resource Summary Table

(Dollars in Thousands)

FY 2020
Actuals
FY 2021
Enacted
FY 2022
Pres Budget
FY 2022 Pres
Budget v.
FY 2021 Enacted
Water Infrastructure Finance and
Innovation Fund




Budget Authority
$40,760.6
$65,000.0
$80,108.0
$15,108.0
Total Workyears
27.6
28.4
40.0
11.6
Bill Language: Water Infrastructure Finance and Innovation Fund
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, $72,108,000, 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 $12,500,000,000: Providedfurther, That of the funds made available
under this heading, $5,000,000 shall be used solely for the cost of direct loans andfor the cost of
guaranteed loans for projects described in section 5026(9) of the Water Infrastructure Finance
and Innovation Act of 2014 to State infrastructure financing authorities, as authorized by section
5033(e) of such Act: Provided further, That the use of direct loans or loan guarantee authority
under this heading for direct loans or commitments to guarantee loans for any project shall be in
accordance with the criteria published in the Federal Register on June 30, 2020 (85 FR 39189)
pursuant to the fourth proviso under the heading "Water Infrastructure Finance and Innovation
Program Account" in division D of the Further Consolidated Appropriations Act, 2020 (Public
Law 116-94): Provided further, That none of the direct loans or loan guarantee authority made
available under this heading shall be available for any project unless the Administrator and the
Director of the Office of Management and Budget have certified in advance in writing that the
direct loan or loan guarantee, as applicable, and the project comply with the criteria referenced
in the previous proviso: Providedfurther, That, for the purposes of carrying out the Congressional
Budget Act of 1974, the Director of the Congressional Budget Office may request, and the
Administrator shall promptly provide, documentation and information relating to a project
identified in a Letter of Interest submitted to the Administrator pursuant to a Notice of Funding
Availability for applications for credit assistance under the Water Infrastructure Finance and
Innovation Act Program, including with respect to a project that was initiated or completed before
the date of enactment of this Act.
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.
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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,
$8,000,000, to remain available until September 30, 2023.
Program Projects in WIFIA

[Dollars in Thousands)
Program Project
FY 2020
Actuals
FY 2021
Enacted
FY 2022 Pres
Budget
FY 2022 Pres
Budget v.
FY 2021 Enacted
Water Quality Protection




Water Infrastructure Finance and Innovation
$40,760.6
$65,000.0
$80,108.0
$15,108.0
TOTAL WIFIA
$40,760.6
$65,000.0
$80,108.0
$15,108.0
708

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Water Quality Protection
709

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Water Infrastructure Finance and Innovation
Program Area: Water Quality Protection

(Dollars in Thousands)

FY 2020
Actuals
FY 2021
Enacted
FY 2022 Pres
Budget
FY 2022 Pres
Budget v.
FY 2021 Enacted
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Innovation land
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Tolal Budget Authority
$40,760.6
$65,000.0
$80,108.0
$15,108.0
Total Workyears
27.6
28.4
40.0
11.6
Program Project Description:
Communities across the country are facing the challenge of finding sustainable and affordable
financing to update aging water infrastructure. In addition, critical water infrastructure is
vulnerable to flooding and other climate change-related weather events. Our nation's health and
wellbeing are dependent on equitable access to drinking water, wastewater, and stormwater
systems; however, thousands of communities nationwide are burdened by aging systems that
threaten public health. Too many communities whose residents are predominantly of color,
indigenous, or low-income suffer disproportionately from lack of modern water infrastructure. To
help address these challenges, Congress enacted the Water Infrastructure Finance and Innovation
Act of 2014 (WIFIA).
With a small expenditure of federal funds, the WIFIA Program creates powerful leverage resulting
in significant funding for water infrastructure projects that protect public health and deliver
environmental benefits while supporting local economies and creating jobs. Since 2017, the
WIFIA Program has maximized $255 million in federal funding appropriated by Congress to offer
communities $24.5 billion in credit assistance that, once fully committed through loan agreements,
will stimulate over $49 billion in infrastructure investments. Water utilities have responded, in
only four years, WIFIA has received 223 Letters of Interest from borrowers in 43 states and
territories.
The WIFIA Program is delivering results. As of May 1, 2021, the Program has issued 50 loans to
communities across the country totaling over $9 billion in credit assistance to help finance nearly
$20 billion for water infrastructure projects. WIFIA loans for these projects have saved
communities more than $4 billion, which they will use to accelerate additional infrastructure
investment and keep rates affordable for water system users. These WIFIA financed projects are
creating over 49,000 jobs and serving over 31 million people. This demonstrates that WIFIA credit
assistance is an effective tool to help address a variety of water infrastructure needs to support all
manner of communities nationwide.
The WIFIA Program provides and services direct loans to cover up to 49 percent of eligible costs
for water infrastructure projects of regional or national significance. The Program is able to lend
its support to a diverse borrower base, including economically-stressed and disadvantaged
communities, as well as private companies, and its lending complements the existing State
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Revolving Fund Programs as an additional source of low-cost capital to help meet the growing
water infrastructure needs of the United States and address key national infrastructure priorities.
The Program supports financing for the rehabilitation and construction of water, wastewater, and
stormwater systems to address aging infrastructure, meet regulatory requirements, and help
improve communities' long-term strategic, financial, and climate resiliency planning. The
Program encourages new revenue streams for infrastructure investment and allows public agencies
to complete more projects.
The WIFIA Program is borrower-focused, with a number of flexible terms for credit assistance to
stimulate investment while minimizing costs for ratepayers. These flexibilities are designed to
increase and accelerate investment in critical water infrastructure projects and include low interest
rates. To date, WIFIA borrowers have received interest rates as low as 0.83 percent, with an
average interest rate of 1.60 percent. Borrowers also have the options to capitalize interest,
backload repayments, and preserve their senior debt capacity.
To help drive progress, between FY 2020 - FY 2021, the Agency will increase by $16 billion the
non-federal dollars leveraged by EPA water infrastructure finance programs (i.e., Clean Water
State Revolving Fund (CWSRF), Drinking Water State Revolving Fund (DWSRF), and WIFIA).
During FY 2018 and FY 2019, EPA increased the non-federal dollars leveraged by EPA water
infrastructure finance programs by $20 billion. The success is due to the collaborative efforts of
EPA, states, and local communities. As of March 2021, over $17.5 billion has been leveraged in
FY 2020 and FY 2021.
FY 2022 Activities and Performance Plan:
The FY 2022 request builds on the Program's success accelerating water infrastructure investment
that provides for clean and safe water, and it enables the Program to continue to offer support for
small and disadvantaged communities while promoting EPA's commitment to environmental
justice. With the requested $80 million, including $72 million in credit subsidy, EPA could provide
up to $8 billion in direct credit assistance, which when combined with other funding sources could
help spur over $16 billion in total infrastructure investments.
Of the total $80 million request to implement the Program, $8 million is for EPA's management
and operation administrative expenses, including contract support and associated program payroll.
The requested funding 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.
The FY 2022 budget request also includes authority to use fee revenue as outlined in the Water
Resources Reform and Development Act, Sections 5029(a), 5030 (b), and 5030(c).1 Fee revenue
is for the cost of contracting with expert services such as financial advisory, legal advisory, and
engineering firms. The fee expenditure authority for the Program is in addition to the $8 million
request for management and operations administrative expenses.
'For more information see EPA Fee Rule: https://www.federalregister.gov/documents/2017/06/28/2017-13438/fees-for-water-
infrastructure-proiect-applications-under-wifia.
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Sufficient management and operation funding levels allow the credit subsidy to finance a high
level of infrastructure investment. The level of management and operation funding is directly
attributable to the number of projects funded and the level of credit subsidy utilized to finance a
high level of infrastructure investment High quality underwriting and technical reviews allow EPA
to properly mitigate risk, which in turn allows the credit subsidy to support a greater number of
projects. Additionally, high quality portfolio monitoring and management is critical to ensuring
the Program's long-term solvency. Stable funding is critical to ensuring that America's water
infrastructure financing needs are met.
Considering recent economic uncertainty resulting from the COVID-19 pandemic, the Program
has been monitoring sector level and borrower specific developments. As utilities consider impacts
on capital plans, the Program has prepared for the potential impacts of COVID-19 throughout
2021. However, the Program has not identified significant changes in demand from borrowers.
WIFIA lending is more important than ever during this period of economic uncertainty, as the
Program has been able to provide important flexibilities to communities in the form of no carrying
costs, flexible repayment schedules, and significant interest rate savings.
Performance Measure Targets:
(PMINFRA-01) Billions of non-federal dollars leveraged by EPA water
infrastructure finance programs (CWSRF, DWSRF and WIFIA).
FY 2021
Target
FY 2022
Target
8.0
8.0
FY 2022 Change from FY 2021 Enacted Budget (Dollars in Thousands):
•	(+$130.0) This change to fixed and other costs is an increase due to the recalculation of
base workforce costs for existing FTE due to annual payroll increases, adjustments to
provide essential workforce support, and changes to benefits costs.
•	(+$2,370.0 / +11.6 FTE) This increase of resources and FTE supports work in loan
servicing and operations, which includes pre-closing financial, technical, and legal
reviews, as well as post-closing portfolio management and monitoring, to maintain the
Program's pace and quality of service to its borrowers. This investment also includes
$2,052.0 thousand in payroll costs and essential workforce support costs for the increase
in FTE.
•	(+$12,608.0) This increase in resources supports the growing demand for WIFIA loans
from communities.
Statutory Authority:
Water Infrastructure Finance and Innovation Act of 2014.
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