United States
Environmental Protection Agency

Fiscal Year 2025

Justification of Appropriation

Estimates for the
Committee on Appropriations

Tab 12: Water Infrastructure Finance and Innovation Fund

EPA-190R24002	March 2024

www.epa.gov/cj


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Environmental Protection Agency

FY 2025 Annual Performance Plan and Congressional Justification
Table of Contents - Water Infrastructure Finance and Innovation Fund

Resource Summary Table	2

Program Projects in WIFIA	3

Ensure Clean Water	4

Water Infrastructure Finance and Innovation	5

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Environmental Protection Agency
FY 2025 Annual Performance Plan and Congressional Justification

APPROPRIATION: Water Infrastructure Finance and Innovation Fund

Resource Summary Table



(Dollars in Thousands)



FY 2023
Final
Actuals

FY 2024
Annualized
CR

FY 2025
President's
Budget

FY 2025
President's Budget
v.

FY 2024
Annualized CR

Water Infrastructure Finance and
Innovation Fund









Budget Authority

$322,118

$75,640

$80,000

$4,360

Total Workyears

35.7

38.4

40.0

1.6

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, $72,000,000, 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 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, up to $5,000,000 may be used for the cost of direct loans and for the cost of
guaranteed loansfor 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: Providedfurther, 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. In addition, for administrative expenses to carry out the direct and

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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, 2026.

Program Projects in WIFIA



[Dollars in Thousands)

Program Project

FY 2023
Final Actuals

FY 2024
Annualized
CR

FY 2025
President's
Budget

FY 2025 President's

Budget v.
FY 2024 Annualized
CR

Ensure Clean Water









Water Infrastructure Finance and Innovation

$31,386

$75,640

$80,000

$4,360

Not Specified









Not Specified

$290,732

$0

$0

$0

TOTAL WIFIA

$322,118

$75,640

$80,000

$4,360

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Ensure Clean Water

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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 2023
Final Actuals

FY 2024
Annualized
CR

FY 2025
President's
Budget

FY 2025 President's

Budget v.
FY 2024 Annualized
CR

II uhr Injrashnclnic i'inancc and
Innovation land

SMJXU

.S ~5.(,-/0

SS0.000

S-IJ60

Total Budget Authority

$31,386

$75,640

$80,000

$4,360

Total Workyears

36.1

38.4

40.0

1.6

Program Project Description:

Communities across the country find it difficult to obtain affordable financing to update aging
water infrastructure. Critical water infrastructure is vulnerable to flooding and other climate
change-related weather events. Additionally, people of color, indigenous groups, and low-income
communities often suffer disproportionately from lack of modern water infrastructure. 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
and inadequate systems that threaten public health and stifle economic growth. To help address
these challenges, Congress enacted the Water Infrastructure Finance and Innovation Act of 2014
(WIFIA).

Communities use WIFIA Program funds to leverage local dollars to maximize the impact of water
infrastructure projects that protect public health and deliver environmental benefits while
supporting local economies and creating jobs. As of December 2023, the Program has issued 120
loans to communities across the country totaling $19 billion in credit assistance to help finance
more than $43 billion for water infrastructure projects. WIFIA loans for these projects have saved
communities nearly $7 billion, which they can use to accelerate additional infrastructure
investment and keep rates affordable for water system users. These WIFIA-financed projects are
creating over 140,000 jobs and improved water infrastructure to benefit over 63 million people.
Additional projects in the WIFIA pipeline have been invited to apply for nearly $10 billion in
WIFIA assistance, which will stimulate more than $20 billion in additional infrastructure
investments once fully committed through loan agreements. These outcomes demonstrate that
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. WIFIA provides financing for the rehabilitation and
construction of water, wastewater, and stormwaters systems to address aging infrastructure, meet
regulatory requirements, and help improve long-term strategic, financial, and climate resiliency

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planning. The Program supports a broad borrower base, including underserved communities,
private companies, and small towns.

Communities often use WIFIA Program funds to supplement State Revolving Fund financing,
providing an additional source of low-cost capital to help meet the growing water infrastructure
needs of the United States while minimizing the financial costs to residents.

To date, WIFIA borrowers have received interest rates as low as 0.83 percent, with an average
interest rate of 2.5 percent. Terms include the option to bundle multiple projects under one loan
and master credit agreements, capitalize interest, backload repayment, and methods that preserve
senior debt capacity.

FY 2025 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.

Work in this program also directly supports progress toward the FY 2024-2025 Agency Priority
Goal: Reduce harmful lead exposure in drinking water through the replacement of lead service
lines in communities. By September 30, 2025, increase the number of lead service line
replacements funded to 500,000.1

The FY 2025 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 $80.0 million request to implement the program, $8.0 million is for the WIFIA
Program's administrative expenses, including staff salaries and contract support. For the past five
fiscal years, the number of projects selected to receive a WIFIA loan has been at least triple the
number selected in the program's first year in FY 2017, and since the Program's first loan closing
in 2018, the number of closed loans to monitor has already increased to 120. The WIFIA Program's
administrative expenses enable high quality underwriting and technical reviews that are required
to allow the WIFIA Program to properly mitigate risk. Furthermore, administrative expenses allow
for high-quality post-loan closing portfolio monitoring, including implementation and oversight
of Made in America requirements, and management that is critical to oversee the program's
burgeoning $30 billion2 portfolio of projects and ensure the program's long-term solvency. The
Agency's request for a sufficient administrative appropriation ensures the WIFIA Program's
ability to monitor its rapidly growing portfolio, make new loans lowering the risk to the
government, and meet the goals and requirements of Administration priorities (e.g., Justice40).

1	Based on available data, EPA estimates that on average 73,000 lead service line replacements have been funded annually. The
number of lead service line replacements funded will be tracked quarterly, but the two-year goal is to increase that number to
300%.

2	This number represents the amount of loans already made and still in process.

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The FY 2025 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). 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 $8.0 million
requests for management and operations administrative expenses.

Performance Measure Targets:

(PMINFRA-01) Billions of non-federal dollars leveraged by EPA's water infrastructure finance programs
(CWSRF, DWSRF and WIFIA). 							



FY
2018

FY
2019

FY
2020

FY
2021

FY
2022

FY
2023

FY
2024

FY
2025

Units

Target

8.0

8.0

8.0

8.0

9.0

9.5

9.5

9.5

Billions of
Dollars

Actual

9.7

10.3

10.2

12.1

14.6

11.4





(PM INFRA-07) Number of lead service line replacements funded.



FY
2018

FY
2019

FY
2020

FY
2021

FY
2022

FY
2023

FY
2024

FY
2025

Units

Target













:::,ooo

500,000

Lead
Service
Lines

Actual

















FY 2025 Change from FY 2024 Annualized CR (Dollars in Thousands):

•	(-$2.0) This net change to fixed and other costs is a decrease due to the recalculation of
base workforce costs, adjustments to provide essential workforce support, and changes to
benefits costs.

•	(+$4,362.0 / +1.6 FTE) This program change is an increase to support the growing demand
for WIFIA loans for communities. This investment also includes $309 thousand in payroll.

Statutory Authority:

Water Infrastructure Finance and Innovation Act of 2014.

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