United States
Environmental Protection Agency
FISCAL YEAR 2023
Justification of Appropriation
Estimates for the Committee
on Appropriations
Tab 12: Water Infrastructure Finance and Innovation Fund
April 2022
EPA-190-R-22-001	www.epa.gov/cj

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Environmental Protection Agency
FY 2023 Annual Performance Plan and Congressional Justification
Table of Contents - Water Infrastructure Finance and Innovation Fund	
Program Projects in WIFIA	891
Water Quality Protection	892
Water Infrastructure Finance and Innovation	893
889

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890

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Environmental Protection Agency
FY 2023 Annual Performance Plan and Congressional Justification
APPROPRIATION: Water Infrastructure Finance and Innovation Fund
Resource Summary Table

(Dollars in Thousands)

FY 2021
Final
Actuals
FY 2022
Annualized
CR
FY 2023
President's
Budget
FY 2023
President's Budget
v.
FY 2022
Annualized CR
Water Infrastructure Finance and
Innovation Fund




Budget Authority
$79,800
$65,000
$80,344
$15,344
Total Workyears
32.8
28.4
40.0
11.6
Bill Language: Water Infrastructure Finance and Innovation Program Account
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 of 1974:Provided further, 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 (85FR39189)
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: Provided further, 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.
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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.
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,
$8,236,000, to remain available until September 30, 2024.
Note.—A full-year 2022 appropriation for this account was not enacted at the time the Budget was prepared; therefore,
the Budget assumes this account is operating under the Continuing Appropriations Act, 2022 (Division A of Public
Law 117-43, as amended). The amounts included for 2022 reflect the annualized level provided by the continuing
resolution.
Program Projects in WIFIA

[Dollars in Thousands)
Program Pro ject
FY 2021
Final Actuals
FY 2022
Annualized
CR
FY 2023
President's
Budget
FY 2023 President's
Budget v.
FY 2022 Annualized
CR
Ensure Clean Water




Water Infrastructure Finance and
Innovation
$79,800
$65,000
$80,344
$15,344
TOTAL WIFIA
$79,800
$65,000
$80,344
$15,344
892

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Water Quality Protection
893

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Water Infrastructure Finance and Innovation
Program Area: Ensure Clean Water
Goal: Ensure Clean and Safe Water for All Communities
Objective(s): Ensure Safe Drinking Water and Reliable Water Infrastructure

(Dollars in Thousands)

FY 2021
Final Actuals
FY 2022
Annualized
CR
FY 2023
President's
Budget
FY 2023 President's
Budget v.
FY 2022 Annualized
CR
II uhr Injrashnclnic i'inancc and
Innovation land
S
SfO.000
SfiOJ-l-l
S IxJ-l-l
Total Budget Authority
$79,800
$65,000
$80,344
$15,344
Total Workyears
32.8
28.4
40.0
11.6
Program Project Description:
Communities across the country are seeking affordable financing to update aging water
infrastructure. To help address these challenges, Congress enacted the Water Infrastructure
Finance and Innovation Act of 2014 (WIFIA).
The WIFIA Program leverages federal funds to finance water infrastructure projects that protect
public health and deliver environmental benefits while supporting local economies and creating
jobs. As of February 2022, the Program has issued 72 loans to communities across the country
totaling over $13 billion in credit assistance to help finance more than $28 billion for water
infrastructure projects. WIFIA loans for these projects have saved communities nearly $5 billion,
which they can use to accelerate additional infrastructure investment and keep rates affordable for
water system users. These WIFIA-financed projects have created over 82,000 jobs and improved
water infrastructure affecting over 37 million people. A further 87 projects have been invited to
apply for nearly $14 billion in WIFIA assistance, which will stimulate over $30 billion in
additional infrastructure investments once fully committed through loan agreements. WIFIA credit
assistance is an effective tool to help communities nationwide address water infrastructure needs.
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 and up to 80 percent of eligible
costs for small community borrowers starting with the FY 2021 appropriation. The program
supports a broad borrower base, including underserved communities, private companies, and small
towns. WIFIA complements the existing State 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. It provides 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.
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The WIFIA Program provides flexible terms for credit assistance and low interest rates which
stimulate investment while minimizing costs for ratepayers. Terms include the option to capitalize
interest, backload repayment, and methods that preserve senior debt capacity.
FY 2023 Activities and Performance Plan:
Work in this program directly supports Goal 5/Objective 5.1, Ensure Safe Drinking Water and
Reliable Water Infrastructure in the FY 2022 - 2026 EPA Strategic Plan.
The FY 2023 request builds on the Program's success accelerating water infrastructure investment
and enables the program to continue to offer support for small, overburdened, and underserved
communities. The requested $80 million— including $72 million in credit subsidy, will enable EPA
to provide up to $8 billion in direct credit assistance, which when combined with other funding
sources could help sustain over $16 billion in total infrastructure investment.
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 2023 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.
Sufficient management and operation funding levels allow the credit subsidy 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. These activities will help work toward meeting targets as part
of the Justice40 pilot program.
Performance Measure Targets:
(PMINFRA-01) Billions of non-federal dollars leveraged by EPA's water
infrastructure finance programs (CWSRF, DWSRF and WIFIA).
FY 2022
Target
FY 2023
Target
9
9
'For more information see EPA Fee Rule: https://www.federalregister.gov/documents/2017/06/28/2017-13438/fees-for-water-
iiifrastructure-pi'oject-applicatioiis-under-wifia
895

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FY 2023 Change from FY 2022 Annualized Continuing Resolution (Dollars in Thousands):
•	(+$298.0) 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.
•	(+$2,438.0 / +11.6 FTE) This program change is an increase to support operational
administrative resources needed to maintain the program's pace and quality of service to
its borrowers. This investment includes $2.12 million in payroll.
•	(+$12,608.0) This increase in credit subsidy resources reflects the growing demand for
WIFIA loans from communities.
Statutory Authority:
Water Infrastructure Finance and Innovation Act of 2014.
896

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