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Investing in water without raising costs: The value of WIFIA

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Investing in water without raising costs: The value of WIFIA

Just as your car needs periodic maintenance to keep running, the vast networks of water pipes, pumps and treatment plants in our communities require ongoing investment to remain strong and reliable. 

In fact, every time we pay a water bill, a portion of that goes to keep the water system healthy. Oftentimes, a water system issues bonds or obtains loans to help spread the costs of maintenance or expansion over many years, reducing the cost we as “customers” absorb.

Fortunately, in the United States federal financing programs help utilities manage burden on ratepayers. One of the most effective tools is the Water Infrastructure Finance and Innovation Act (WIFIA) program, which provides low-interest, long-term loans that allow communities to address infrastructure needs before they become more costly emergencies.

A recent example comes from EPA's announcement of a $109 million WIFIA loan to the Honolulu Board of Water Supply to finance the design and construction of a large-scale desalination facility that will strengthen water supply reliability for residents of Oahu.

Once completed, the facility is expected to produce approximately 1.7 million gallons of drinking water each day by treating seawater, an abundant resource for the island. The project will help diversify Honolulu's water sources and reduce pressure on groundwater aquifers, improving long-term water resilience.

“We are pleased to have partnered with the EPA on this WIFIA loan and appreciate their support,” Ernest Lau, manager and chief engineer of the Honolulu Board of Water Supply, said in a release. “This financing will assist in constructing the first seawater desalination facility for our island community.”

The WIFIA loan will help Honolulu assure a reliable water supply and system for future generations. It’s exactly the type of federal-local partnership that’s needed to keep water safe and affordable.

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