Oceanside, Calif and Salt Lake City awarded WIFIA loans totaling more than $415M
WASHINGTON -- The U.S. Environmental Protection Agency (EPA) announced two new Water Infrastructure Finance and Innovation Act (WIFIA) loans at events in Oceanside, Calif. and Salt Lake City, Utah. EPA’s 27th and 28th WIFIA loans will provide more than $415 million to help the local communities finance important water infrastructure projects—supporting an innovative water reuse project in Oceanside and improving water quality and system resiliency in Salt Lake City.
“WIFIA is playing a critical role in President Trump’s commitment to upgrade our nation’s infrastructure, improve public health and environmental protections, and create good, local jobs,” said EPA Administrator Andrew Wheeler. “Over the past three years, including these two new loans, the Trump administration has helped finance over $40 billion dollars in clean water infrastructure, supporting 7,100 projects, and helping create 27,000 jobs across this great nation.”
Oceanside, California WIFIA Loan
EPA announced a $69 million WIFIA loan to help finance the Pure Water Oceanside Project. This innovative water reuse project will purify recycled water to create a new source of high-quality drinking water that is clean, safe, drought-proof and sustainable while benefitting the environment by reducing discharges into the ocean. The Project will supply Mission Basin with an additional 4.5 million gallons per day of highly purified water that will improve overall water quality in the aquifer, relieve over-pumping conditions and reduce discharges to the Pacific Ocean. The project will also reduce the demand for imported water by providing a local, drought-proof water supply produced by the city. This project will cost $158 million, and EPA’s WIFIA loan will finance nearly half of that figure. The remaining project funds will come from a combination of grants, water system revenue backed obligations, and system funds. The WIFIA loan will save the City of Oceanside an estimated $24 million compared to typical market financing. Project construction and operation are expected to create 622 jobs.
“EPA’s support for this project illustrates two agency priorities as we work to meet 21st century water demands—reusing the water that we have and revamping our nation’s water infrastructure,” said EPA Assistant Administrator for Water David Ross. “With WIFIA’s support, Pure Water Oceanside will be a landmark project as EPA looks to foster additional innovative water reuse strategies and infrastructure investments across the country.”
“By improving water infrastructure, we are improving the quality of life and public health in our communities,” said EPA Pacific Southwest Regional Administrator John Busterud. “Through the WIFIA loan program, EPA is happy to support the Pure Water Oceanside Project in ensuring access to clean and safe drinking water for decades to come.”
Salt Lake City WIFIA Loan
EPA also announced a $348.6 million WIFIA loan to the Salt Lake City Department of Public Utilities. This WIFIA loan will help finance the city’s Water Reclamation Facility Nutrient Project, which will update the existing water reclamation facility to help comply with new state regulatory requirements and increase the system’s resiliency to earthquakes and flooding. Salt Lake City will reconstruct its 55-year old water reclamation facility while implementing an additional treatment process to meet new regulatory total phosphorus limits and also improving system resiliency. The project will enable the city to meet the new, state limit on total phosphorus of 1 mg/L as required by January 1, 2025. At completion, the project will reduce nutrient discharges to the Great Salt Lake. In addition, the project will increase the system’s resiliency to seismic and flooding events. This project will cost $711.6 million, and EPA’s WIFIA loan will finance nearly half of that figure. The remaining project funds will come from a combination of revenue bonds and system funds. The WIFIA loan will save Salt Lake City an estimated $102 million compared to market financing. Project construction and operation are expected to create 440 jobs.
“Through WIFIA, EPA is playing a critical role in President Trump’s efforts to upgrade our nation’s infrastructure, improve public health and environmental protections, and create good, local jobs,” said Associate Deputy Administrator for EPA Doug Benevento. “This loan closing marks EPA’s 28th WIFIA loan and the first WIFIA loan in Utah. Nationally, the WIFIA program has now provided $6.1 billion in credit assistance to help finance $13 billion for water infrastructure while creating 27,200 jobs.”
“The reconstruction of Salt Lake City’s aging water reclamation facility and EPA’s financing tools provide an important win for the entire region,” said EPA Mountains and Plains Regional Administrator Greg Sopkin. “Together, we are improving the environmental and ecosystem health of the Great Salt Lake, improving the resiliency of the community’s vital wastewater services, saving the city and its ratepayers money, and creating jobs in the process.”
Learn more at epa.gov.