The U.S. Environmental Protection Agency (EPA) announced a $14.8 million Water Infrastructure Finance and Innovation Act (WIFIA) loan to Palmdale Water District (PWD) in southern California. This loan will support the district’s regional advanced water augmentation program, aimed at establishing a drought-proof drinking water supply for over 125,000 residents.
“California is no stranger to drought impacts, and we are seeing a need for communities to invest in drought-resilient water supply as they prepare for future climate stress,” said EPA Acting Assistant Administrator for Water Bruno Pigott. “We are thrilled to help the Palmdale Water District advance their project ensuring a plentiful and resilient water supply through EPA’s low-cost financing. The Biden-Harris Administration has been prioritizing critical water infrastructure projects across the country through the investing in America agenda.”
The district is developing an advanced water augmentation program to purify recycled water for potable use. By using recycled water, the district aims to create a reliable water supply and provide an alternative to the drought-affected Antelope Valley Basin.
With this WIFIA loan, PWD will construct a small-scale advanced water purification demonstration facility to conduct necessary water testing. They will also test an emerging technology called direct air capture, designed to transform brine into a solvent that captures carbon dioxide, reduces greenhouse gas emissions, and lowers operation and maintenance costs. Information collected at the demonstration facility will be used to complete planning, design, and construction of the full-scale advanced water purification facility and new groundwater injection wells.
“We are grateful to the EPA for awarding this loan for our Pure Water Antelope Valley Demonstration Facility,” said PWD General Manager Dennis D. LaMoreaux. “It gives us the funds needed to build a project that will enable us to be more drought-proof, have local control of our water, and improve groundwater quality and quantity.”
This is the first WIFIA loan under a master agreement committing a total of $145 million to develop PWD's advanced water purification program. With this initial loan, the district expects to save $4 million in interest compared to traditional financing and create about 50 jobs.
Since 2018, the EPA’s WIFIA program has announced over $20 billion in financing supporting more than $44 billion in water infrastructure projects that strengthen drinking water, wastewater, and stormwater infrastructure while creating over 140,000 jobs.
The WIFIA program was established by the Water Infrastructure Finance and Innovation Act of 2014 as a federal loan program administered by the EPA. It aims to accelerate investment in national water infrastructure by providing long-term, low-cost supplemental credit assistance for significant projects. The EPA is currently in its seventh selection round for WIFIA financing, offering $6.5 billion through WIFIA and $1 billion through SWIFIA loans exclusively for State infrastructure financing authority borrowers.
In addition to WIFIA loans, numerous federal funding resources are available for communities and utilities aiming to improve vital water and wastewater resources under President Biden’s Bipartisan Infrastructure Law.
