The U.S. Environmental Protection Agency announced on October 24 a $268 million Water Infrastructure Finance and Innovation Act (WIFIA) loan to Hampton Roads Sanitation District (HRSD), which serves areas across southeast Virginia and the Eastern Shore.
This is the third WIFIA loan, and part of a $1.3 billion agreement to implement the Sustainable Water Infrastructure for Tomorrow (SWIFT) Program, which will re-charge the Potomac Aquifer and help secure the drinking water supply for 1.9 million residents.
“The EPA is working with local partners to address water challenges such as diminishing groundwater supplies and safely managing wastewater to protect our treasured ecosystems,” said EPA Principal Deputy Administrator for Water Bruno Pigott.
Wastewater treatment facilities in parts of southeastern Virginia need upgrades to improve efficiency and save water. The Sustainable Water Infrastructure for Tomorrow (SWIFT) Program plans to utilize water reuse and advanced water treatment technologies to replenish the stressed Potomac Aquifer with highly treated water that meets drinking water standards. This program, funded in part by the EPA’s WIFIA loans, will launch 20 construction projects to upgrade water infrastructure in the area.
These projects improve climate resilience and help ensure a sustainable drinking water supply and also improve the water quality of the Chesapeake Bay by reducing approximately 50 million gallons a day of Hampton Roads Sanitation District’s wastewater discharges to the watershed.
This is the third WIFIA loan under a master agreement that will commit $1.3 billion, nearly half of Hampton Roads Sanitation District’s $2.9 billion initial SWIFT Program costs. The remaining costs will be funded by Virginia’s Clean Water State Revolving Fund financing under a similar agreement and borrower produced contributions. The WIFIA loan’s flexible structure, including the borrowers' ability to defer principal payments and structure the loan around other debt, helps the district manage program costs while securing additional funding sources.
Since its creation, the EPA’s Water Infrastructure Finance and Innovation Act program has announced nearly $21 billion in financing to support $45 billion in water infrastructure projects that are strengthening drinking water, wastewater, and stormwater infrastructure while creating more than 150,000 jobs.
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