Sacramento, Calif. receives $81M WIFIA loan

Dec. 22, 2021
The EPA’s WIFIA loan will finance nearly half of Sacramento County Water Agency’s System Pipe Realignment and Meter Installation Project.

Yesterday, the U.S. Environmental Protection Agency (EPA) announced an $81 million Water Infrastructure Finance and Innovation Act (WIFIA) loan to the Sacramento County Water Agency in northern California. The financed project will modernize water infrastructure to support a more reliable and climate-resilient water supply.

“The Sacramento County Water Agency’s project is critical to fighting drought and reducing climate change impacts,” said EPA Pacific Southwest Regional Administrator Martha Guzman. “The EPA is committed to helping communities pursue smarter water management strategies, and we are proud to help finance this project to benefit local residents for generations to come. This represents the future of water in the West.”

Sacramento County Water Agency’s Arden Service Area Distribution System Pipe Realignment and Meter Installation Project will reduce water loss and the frequency of waterline breaks by modernizing the aging water distribution infrastructure. Additionally, the project helps Sacramento County comply with current fire protection standards and water metering requirements by installing 30 miles of new distribution pipeline, 260 fire hydrants, and 3,000 new water meters. Improved leak detection and water conservation methods will reduce water use by an estimated 17 percent annually, increasing the community’s resiliency to the effects of climate change.

“The Sacramento County Water Agency (Agency) is appreciative of the opportunity to participate in EPA’s WIFIA program,” said Michael Peterson, Sacramento County Water Agency Director. “The funding from this program will allow the Agency to address critical water supply infrastructure needs.”

“The funded project will upgrade the Arden Service Area water distribution system by installing larger pipes to increase system capacity, improve fire flow, and bolster system reliability while making more efficient the operation and maintenance of the system,” continued Peterson. “The project also includes the installation of water meters for all service area connections, which will ensure the Agency meets compliance with California metering mandates. The WIFIA loan proceeds allow the Agency to implement the project in the most cost-effective manner possible while reducing the overall cost impact of the project to Agency customers. This funding allows the Agency to continue to implement our capital improvement plan and provide a high quality, reliable and flexible water supply.”

EPA’s $81 million WIFIA loan will finance nearly half of the $165 million project costs. Sacramento County Water Agency will save approximately $22 million through its WIFIA financing. Project construction and operation are expected to create an estimated 530 jobs and construction is expected to be completed in 2025.

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