The Metropolitan St. Louis Sewer District’s (MSD) Project Clear is among 39 new projects invited by the Environmental Protection Agency (EPA) to apply for Water Infrastructure Finance and Innovation Act (WIFIA) loans.

The $278 million loan would go towards Deer Creek Watershed and Lemay Service Area System improvements, an EPA press release said.  The agency anticipates $6.7 billion in loans will be distributed across 24 states.

“Far too many communities still face significant water challenges, making these transformative investments in water infrastructure so crucial,” EPA Administrator Michael S. Regan said in the release. “The WIFIA-invited projects will deliver major benefits like the creation of good-paying jobs and the safeguarding of public health, especially in underserved and under-resourced communities. This program is a shining example of the public health and economic opportunities that will be achieved under President [Joe] Biden’s Bipartisan Infrastructure Law.”

Four additional projects were added to a waiting list as of Dec. 7, the release said.

A $5 million budget was provided by Congress to fund direct or guaranteed loans to state infrastructure financing authority borrowers for 2021, an EPA notification of funding listed on the Federal Register said. The WIFIA program uses the funds to “cover the subsidy required to provide a much larger amount of credit assistance.”

The projects, according to the EPA, will help modernize water infrastructure for 25 million Americans and generate up to 49,000 jobs.  Selected borrowers will also receive financing tools to address public health and environmental challenges in their communities, the release said.

The EPA has made efforts to diversify its WIFIA loan invitations by putting $1.2 billion in funding aside for underserved communities, the release said. Additionally, three communities with populations less than 25,000 were invited to apply for loans totaling $62 million.