The U.S. Environmental Protection Agency announced the awarding of an $81 million loan to California's Yucaipa Valley Water District in California as a part of the Water Infrastructure Finance and Innovation Act.
The move is aimed at modernizing the district's recycled and drinking water facilities while offsetting the impacts of drought and climate change in the region and ensuring reliable water supplies for the area's 65,000 residents, according to a Feb. 22 news release.
“California and the western United States are suffering from the impacts of extreme drought including dwindling water resources, which require long-term, resilient water infrastructure investment,” EPA Assistant Administrator for Water Radhika Fox said in the release. “EPA is thrilled to be able to invest in resilient water infrastructure technologies to ensure a dependable water supply for the 65,000 people in Yucaipa and Calimesa.”
The loan is the initial portion of a larger WIFIA financing package valued at more than $120 million, which will help to accelerate the project's implementation, according to the release.
“The Yucaipa Valley Water District is grateful, proud and excited to be awarded a WIFIA loan from the U.S. Environmental Protection Agency,” District General Manager Joseph Zoba said in the release. “This funding is needed to expand the micro- and molecular filtration processes at our drinking water facility and wastewater treatment plant, expand the recycled water system and build new renewable energy systems to power our most important facilities. This investment in our water and energy infrastructure will benefit existing customers and provide the foundation necessary to build a resilient and sustainable Yucaipa Valley.”
By securing the loan, the Yucaipa Valley Water District will save approximately $24.5 million, and the project's construction and operation under the initial loan are estimated to create approximately 500 jobs, the release reported.
According to the release, the WIFIA program is a federal loan and guarantee program administered by the EPA and established by the Water Infrastructure Finance and Innovation Act of 2014.
"The WIFIA program’s aim is 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 release said.
