Federal initiative provides resources for water infrastructure investment

Feb. 10, 2015
With an estimated $600 billion needed over the next 20 years for water infrastructure upgrades, many communities are left wondering how to pay for it. President Obama recently announced the Build America Investment Initiative to increase investment by facilitating collaboration between state and local governments and private sector investors. This private money allotted for infrastructure projects holds tremendous potential to infuse much needed capital into the market.


By Angela Godwin

Investment of private money into water and wastewater infrastructure projects -- typically through some sort of public-private partnership -- holds tremendous potential to infuse much needed capital into the market. These partnerships are nothing new and there are many examples of very successful PPP's operating across the United States. But they can be tricky. A lot of preparation and due diligence is required to ensure that the partnership is structured fairly and executed properly. This can be extremely daunting to water and wastewater utilities, particularly given the traditional lack of guidance at the federal level. But it looks like that's about to change.

Last month, President Obama announced the Build America Investment Initiative, a government-wide effort to increase infrastructure investment by facilitating collaboration between state and local governments and private sector investors. Ultimately, the initiative aims to "expand the market for public-private partnerships (PPPs) and put federal credit programs to greater use."

On the heels of that news, EPA made its own announcement that, under the Build America Investment Initiative, it is setting up a dedicated resource for water, wastewater and stormwater systems. Dubbed the Water Infrastructure and Resiliency Finance Center, it will "serve as a resource for communities, municipal utilities, and private entities as they seek to address water infrastructure needs with limited budgets."

To meet that objective, the Center will explore a variety of non-traditional funding sources, including PPP's, and seek to expand the use of federal credit programs. The Center will also provide support to communities looking to utilize these mechanisms. This includes expanding technical assistance, learning opportunities, workshops, case studies and toolkits for financing alternatives.

"In short," said EPA Administrator Gina McCarthy, "it's a way to make federal money extend further so that we can take care of some of the infrastructure challenges -- in this case, most notably our water and wastewater infrastructure."

McCarthy underscored the significance of the Center, saying that it's important "not just to communities, but to EPA in terms of providing some core public health protections especially those in a changing climate."

McCarthy acknowledged that, given the age of our nation's water infrastructure, a tremendous investment will be needed. "That means we need to leverage the resources we're already investing," she said, "and make sure that we're bringing the private sector to the table so that every federal dollar we spend can be spent most effectively, and spread so that communities can address this significant need."

For more information on EPA's Water Infrastructure and Resiliency Finance Center, visit water.epa.gov/infrastructure/ waterfinancecenter.cfm.

Angela Godwin
Chief Editor, WaterWorld

More WaterWorld Current Issue Articles
More WaterWorld Archives Issue Articles

Sponsored Recommendations

WIN-911 Alarm Notification Software Enables Faster Response

March 15, 2024
Alarm notification software enables faster response for customers, keeping production on track

Automated Fresh Water Treatment

March 15, 2024
SCADA, Automation and Control for Efficient and Compliant Operations

Digital Transformation Enables Smart Water

March 15, 2024
During this webinar we will discuss factors driving the transformation to digital water, water industry trends, followed by a summary of solutions (products & services) available...

Smart Water Solutions: Transforming the Water Universe

March 15, 2024
Water is our most valuable resource, and efficient and effective water and wastewater handling is crucial for municipalities. As industry experts, you face a number of challenges...