House-Senate Committee Releases WIFIA Infrastructure Legislation
Source American Water Works Assn.
In an important victory for U.S. water utilities and their customers, a House-Senate committee released legislation to create a pilot Water Infrastructure Finance and Innovation Authority that would lower the cost of renewing America’s aging water infrastructure.
The creation of a WIFIA is part of the larger Water Resources Reform and Development Act, which now advances for formal approval in the U.S. House and Senate. It is expected to be swiftly passed by both chambers and signed into law by President Barack Obama. WIFIA will provide low-interest federal loans to communities to reduce the cost of financing large water and wastewater infrastructure projects.
The pilot program limits WIFIA funding to 49 percent of projects and prohibits tax-exempt financing for the remaining portions.
If a utility saves just two percentage points on the interest rate for a 30‐year loan, it means 25% savings in the financing of a project. On large projects, the savings can amount to hundreds of millions of dollars that would otherwise be absorbed through customer bills over many years.
Source: American Water Works Assn.
