The U.S. Environmental Protection Agency (EPA) announced on August 7, 2024, a $171 million Water Infrastructure Finance and Innovation Act (WIFIA) loan to the Birmingham Water Works Board in Alabama.
The EPA’s loan supports improvements to the drinking water supply that supports 770,000 residents in the city of Birmingham.
With this WIFIA loan, the Birmingham Water Works Board will secure a more reliable source of drinking water when it makes improvements to the Lake Purdy Dam.
The city will also make progress towards upgrading its drinking water infrastructure so that it is not only more efficient, but also more protective of public health.
The city will replace lead service lines, which are pipes connecting people’s homes and businesses to water mains. Replacing lead pipes is a critical step for reducing the risk of lead exposure.
For years, the city of Birmingham has struggled with water loss from aging infrastructure. This loan will allow them to complete a major upgrade of its distribution system to prevent water loss and safely store treated drinking water for distribution to its customers.
By preventing over 250 water main breaks annually, residents and businesses will experience improved service while lowering the Board’s maintenance costs.
This is the EPA’s first WIFIA loan in the state of Alabama and it will benefit 15% of the state’s population.
In addition, the Board will save approximately $50 million by financing with the WIFIA loan, and the project’s construction and operation will create about 1,200 jobs.
Since 2018, the EPA’s WIFIA program has announced over $20 billion in financing to support more than $44 billion in water infrastructure projects across the U.S.
