A total of 43 letters of interest have been sent by prospective borrowers to the United States Environmental Protection Agency's or EPA's excellent Water Infrastructure Finance and Innovation Act or WFIA program. These letters are for projects meant to update the water infrastructure of the United States. The Water Infrastructure Finance and Innovation Act program of the EPA will offer a credit of $1 billion. The money will enable a $2 billion financing in investments related to water infrastructure.
The Notice of Funding Availability or NOFA was issued by the EPA in January, 2017. This was done to solicit the letters of interest from interested borrowers who wants the Water Infrastructure Finance and Innovation Act credit assistance. The EPA, for its first round of project selection, announced the availability of about $17 million to offer credit assistance. The EPA has estimated that the budget authority will offer about credit assistance of about $1 billion and financing in the region of $2 billion when it comes to water infrastructure investment.
Letters have been sent to the EPA by entities who seek loans for the Water Infrastructure Finance and Innovation Act program. These entities are spread all over the nation, thus demonstrating high demand from a number of businesses who want to invest in local communities and the economy.
Credit assistance from the Water Infrastructure Finance and Innovation Act can be utilized to finance a broad range of projects. These include seawater desalination, drought mitigation and water treatment. Water recycling can also be funded. More than 75 percent of the prospective borrowers have indicated their hope to co-finance their projects along with other funding tools provided by EPA, Clean Water State, or Drinking Water Revolving Funds. The Water Infrastructure Finance and Innovation Act works separately, but in coordination with State Revolving Fund schemes to offer subsidized financing for big dollar value projects. When the benefits of SRF and Water Infrastructure Finance and Innovation Act are combined, more number of communities could benefit financing and innovative loans.
According to Pruitt, an administrator of the EPA, this program, due to it being a partnership between private, local and federal agencies, will assist to increase the number of water infrastructure systems. These will be done to meet demands of the growing communities. The investment will provide impetus to companies, states and municipalities to solve actual environmental problems. Partnerships between private and public entities will solve a number of environmental problems present in the communities. Safe and clean water is one of them.