WIFIA Solutions for a Once-in-a-Generation Project

I have a “once-in-a-generation” project.

Communities across the country are undertaking critical “once-in-a-generation” projects that will modernize water infrastructure, ensure compliance with current and future regulatory requirements, and prepare for the future. These projects are complex and will likely require multiple sources of funding. Given the complexity, communities will spend several years completing project planning, design, and construction. Most importantly, the significant investment needed for “once-in-a-generation” projects will have an immediate impact on current ratepayers.

How Can WIFIA Funding Help?

Using WIFIA program flexibilities can help communities plan for and fund once-in-a-generation projects. By spreading loan payments out gradually over a longer term using WIFIA financing, communities can reduce the impact on current ratepayers while locking in funding, bundling critical projects for accelerated implementation, and providing funding certainty.

The WIFIA program offers several solutions to help communities address these large projects:

• Sculpted Repayment Schedule: Borrowers can customize their repayments to match their anticipated revenues and expenses for the life of the loan. This flexibility provides borrowers with time they may need to phase-in rate increases to generate revenue to repay the loan. The WIFIA program offers repayment terms of up to 35 years after project completion. Borrowers may also defer repayments for up to 5 years after project completion and make interest-only payments for additional years.
• Lock in Funding Early: Communities can lock in WIFIA financing early and all at once, providing funding certainty for critical water infrastructure projects. WIFIA loans can be the first money in the project, without matching funds secured. The WIFIA program offers expeditious loan closing in as little as 4 months (or at the borrower’s preferred speed).
• Project Bundling Options: The WIFIA program has a few options for bundling projects, depending on borrower needs.
  • Borrowers can bundle several projects into a single loan (pdf) (337.21 KB). Bundling projects streamlines processes and saves borrowers time and money by only closing one loan, instead of separate loans for each individual project. This option can be extremely advantageous for communities looking to complete large, complex projects.
  • The WIFIA program also offers a master agreement (pdf) (418.07 KB), which is an umbrella contract between EPA and a borrower that provides an upfront commitment of loan proceeds and a common set of legal and financial terms under which a borrower can close multiple WIFIA loans over time. Master agreements are helpful for borrowers with several projects that are in different phases, have different schedules, or are in different stages of the environmental review process. By evaluating the credit and negotiating the legal framework upfront, the WIFIA program and the borrower can close each loan under a master agreement faster and for lower cost than multiple loans outside of a master agreement.
• Draw Funds as Needed: WIFIA loans are an “up to” amount, and borrowers are not required to draw down all the funding – only what is needed. This is helpful for borrowers that might secure other funding sources (e.g., grants) after closing the WIFIA loan. There are also no draw requirements, and borrowers can request reimbursement on their schedule. Borrowers can request disbursements as often as once per month but can also request a single disbursement up to one year after project completion.

Hear What Our Borrowers Are Saying:

“We are grateful to the EPA for awarding this WIFIA loan to Metro Water Services. The Process Advancements Project at the Omohundro and KR Harrington Water Treatment plants is the result of many years of strategic, long-term planning and this WIFIA loan marks a milestone in making these plans a reality for our community. Proper investment in infrastructure is necessary to ensure Nashville’s ability to provide safe, clean, and reliable water and waste services to our community now and in the future. The Process Advancements Project funded by WIFIA allows MWS to proactively address aging infrastructure, expand capacity, reduce flood risk and incorporate the use of new treatment technologies for enhanced water quality at our water treatment facilities – preparing them for the next generation.” – Scott Potter, Director (2023), Metro Water Services, Nashville, Tennessee

"This loan enables Weber Basin Water Conservancy District to uphold our commitment to providing safe, reliable water to a growing population. Our partnership with the EPA provides the financial flexibility to construct these critical infrastructure projects, ensuring we meet the needs of our communities today and safeguard resources for future generations.” – Scott Paxman, General Manager and CEO (2025), Weber Basin Water Conservancy District, Utah