EPA Announces $14 Million WIFIA Loan to Develop Drought Solutions in California

[U.S. EPA]

EPA Announces $14 Million WIFIA Loan to Develop Drought Solutions in California Media Contact: Michael Brogan, 415-295-9314, brogan....@epa.gov SAN FRANCISCO (July 11, 2024)  – Today, the U.S. Environmental Protection Agency announced a $14.8 million Water Infrastructure Finance and Innovation Act (WIFIA) loan to Palmdale Water District (PWD) in southern California. This WIFIA loan will assist the district’s regional advanced water augmentation program to expand the water supply by establishing a drought-proof drinking water supply for over 125,000 residents. “California is no stranger to drought impacts, and we are seeing a need for communities to invest in drought resilient water supply as they prepare for future climate stress,” said EPA Acting Assistant Administrator for Water Bruno Pigott. “We are thrilled to help the Palmdale Water District advance their project ensuring a plentiful and resilient water supply through EPA’s low-cost financing. The Biden-Harris Administration has been prioritizing critical water infrastructure projects across the country through the investing in America agenda.” The is developing an advanced water augmentation program to purify recycled water for potable use for its residents. By using recycled water, the district will create a reliable water supply and provide an alternative to the drought-affected Antelope Valley Basin. With this WIFIA loan, the district will construct a small-scale advanced water purification demonstration facility to conduct necessary water testing. They will also test an emerging technology, called direct air capture, which is designed to transform brine into a solvent. It will capture carbon dioxide, reduce greenhouse gas emissions, and lower operation and maintenance costs. The district will use information collected at the demonstration facility to complete planning, design and construction of the full-scale advanced water purification facility and new groundwater injection wells. “We are grateful to the EPA for awarding this loan for our Pure Water Antelope Valley Demonstration Facility,” said PWD General Manager Dennis D. LaMoreaux. “It gives us the funds needed to build a project that will enable us to be more drought-proof, have local control of our water, and improve the groundwater quality and quantity.” This is the first WIFIA loan under a master agreement that will commit a total of $145 million to develop its advanced water purification program. With this first loan, the district is expected to save $4 million in interest compared to traditional financing and create about 50 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 that are strengthening drinking water, wastewater, and stormwater infrastructure while creating over 140,000 jobs. Learn more about the EPA’s WIFIA Program and water infrastructure investments under the Bipartisan Infrastructure Law. Background Established by the Water Infrastructure Finance and Innovation Act of 2014, the WIFIA program is a federal loan program administered by the EPA. The WIFIA program aims to accelerate investment in the nation’s water infrastructure by providing long-term, low-cost supplemental credit assistance for regionally and nationally significant projects. The WIFIA program has an active pipeline of pending applications for projects that will result in billions of dollars in water infrastructure investment and thousands of jobs. The EPA is currently in its seventh selection round for WIFIA financing. In this round, the EPA is offering $6.5 billion through WIFIA, and $1 billion through SWIFIA, which is a loan program exclusively for State infrastructure financing authority borrowers. EPA is currently accepting letters of interest for WIFIA and SWIFIA loans. Learn more about submitting a letter of interest for a WIFIA loan. In addition to WIFIA loans, there are many federal funding resources available for communities and utilities to improve vital water and wastewater resources. President Biden’s Bipartisan Infrastructure Law is a once-in-a-generation investment in the nation’s water infrastructure. Learn about EPA’s Pacific Southwest Region. Connect with us on Facebook, Instagram, and X.

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