The U.S. Environmental Protection Agency (EPA) has announced a $272 million Water Infrastructure Finance and Innovation Act (WIFIA) loan to Columbia, Tennessee, to expand its drinking water system and improve supply reliability for the city and nearby rural communities.

The financing will support Columbia’s Long Term Water Supply Program, which includes construction of a new raw water intake structure and transmission main, along with improvements to the city’s existing water treatment plant.

The upgrades are intended to increase drinking water capacity to meet demand associated with population and economic growth while improving reliability for customers throughout Columbia Power & Water Systems’ service area.

The WIFIA financing also will provide the city with flexible repayment options. According to EPA, the financing structure is expected to save Columbia millions of dollars over the life of the loan.

EPA said its WIFIA program has announced approximately $24 billion in financing for water infrastructure projects since issuing its first loan in 2018. The program supports drinking water, wastewater and stormwater projects through long-term financing.

EPA said approximately $11 billion in WIFIA financing remains available for additional water infrastructure projects, including projects in small and rural communities. The agency also has about $3 billion available through its State WIFIA program for loans to state infrastructure financing authorities.