The U.S. Environmental Protection Agency (EPA) has approved an $87 million loan under the Water Infrastructure Finance and Innovation Act (WIFIA) to assist the City of Joliet, Illinois, in transitioning its drinking water supply from groundwater to Lake Michigan. This initiative is part of a broader effort to modernize water infrastructure across the nation.
Jessica Kramer, EPA’s Assistant Administrator for Water, emphasized the importance of updating water systems: "Modernizing and maintaining water infrastructure is essential to ensuring clean and safe water for all Americans and advancing EPA’s Powering the Great American Comeback Initiative." She added that the WIFIA program benefits both communities and taxpayers by upgrading infrastructure while ensuring loan repayments support the U.S. Treasury.
The loan will aid Joliet in moving away from a stressed aquifer by enhancing its distribution system to minimize water loss as it transitions to using Lake Michigan's resources. This funding marks Joliet's third WIFIA loan, contributing to a total of $395 million in financing agreements.
The WIFIA program was established in 2014 and aims to accelerate investment in significant water projects nationwide by offering long-term, low-cost credit assistance. It partners federal funding with state, local, and private investments to boost infrastructure development worth billions.
Currently, EPA is accepting letters of interest for both WIFIA and State WIFIA (SWIFIA) financing as part of its ninth round of funding, which includes $6.5 billion available through WIFIA and $550 million through SWIFIA. The agency has outlined priority areas such as ensuring safe drinking water, addressing pollution, supporting innovation in the water sector, promoting economic growth, and advancing cooperative federalism.
To date, EPA’s WIFIA program has announced $22 billion for 141 projects nationwide, creating over 160,000 jobs.
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