WASHINGTON (May 25, 2023) – At an event today in San Francisco, California, U.S. Environmental Protection Agency (EPA) Assistant Administrator for Water Radhika Fox announced a $369 million Water Infrastructure Finance and Innovation Act (WIFIA) loan to the San Francisco Public Utilities Commission. With this investment, the Commission will create local jobs modernizing aging wastewater and stormwater infrastructure to enhance resiliency to seismic events and climate change and reduce the risk of combined sewer overflows.
“Bay area communities are experiencing the complex challenges of climate change — too little water for years on end and storms that deluge the region with too much water at once. EPA’s $369 million loan will upgrade San Francisco’s water infrastructure to better manage these events,” said EPA Assistant Administrator for Water Radhika Fox. “Water infrastructure investments are central to President Biden’s Investing in America agenda. Thanks to programs like WIFIA and the historic $50 billion for water under the Bipartisan Infrastructure Law, EPA is investing in essential water infrastructure across the country to address local needs while creating good-paying jobs.”
With EPA’s WIFIA loan, the Commission will increase the city’s stormwater management capacity and strengthen climate resiliency. Pump station improvements will ensure efficient and reliable transport of combined wastewater and stormwater flows to treatment facilities. Construction of the new Treasure Island Wastewater Treatment Plant will provide reliable service to residents and meet future recycled water demands. Implementing these wastewater projects will better protect public health and the local environment.
President Biden’s Investing in America agenda is rebuilding infrastructure and boosting U.S. competitiveness while creating good-paying jobs. In San Francisco, these infrastructure upgrades will create prevailing wage, family sustaining jobs. Such projects are subject to the City’s Local Hiring Ordinance, which mandates contractors to hire local residents to work at least of 30% of project hours by trade.
Assistant Administrator Fox was joined at the event by San Francisco Mayor London Breed, San Francisco Public Utilities Commission General Manager Dennis Herrera, and EPA Administrator for the Pacific Southwest Martha Guzman.
“This WIFIA loan is a great example of how government can invest in projects that will improve our water infrastructure, create jobs, and save money,” said U.S. Representative Kevin Mullin. “I applaud the EPA for awarding the San Francisco Public Utilities Commission this $369 million loan. Investing in infrastructure is a top priority, and President Biden’s Bipartisan Infrastructure Law has been a win-win-win for the American people, our economy and the environment.”
"The WIFIA loan is much more than a financial agreement – it's a testament to our city's proactive approach to the challenges of the future,” said Mayor London N. Breed. “This new financial agreement enables us to fund crucial projects that enhance our resilience, create jobs, and benefit all of our residents. Through continued investments in our water, wastewater, and power systems, we are not only ensuring a sustainable future for San Francisco, but also demonstrating our leadership in climate change adaptation."
"We’re proud to announce the closing of our third Water Infrastructure Finance and Innovation Act loan with the EPA, making the SFPUC one of the largest partners in this vital federal program to date,” said SFPUC General Manager Dennis Herrera. “These low-interest loans fund critical projects while keeping our costs down, so we can pass that savings on to our customers. That means we can make needed upgrades to aging infrastructure while keeping our rates competitive. These are crucial investments to improve seismic safety and adapt to droughts and storms as the climate changes. We look forward to our continued partnership with the EPA to showcase what’s possible with these kinds of smart investments.”
EPA estimates this WIFIA loan will reduce costs by approximately $110 million. It is the first WIFIA loan under a master agreement that will commit $791 million to accelerate the implementation the Commission’s Wastewater Resilience Program.
Learn more about EPA’s WIFIA Program and water infrastructure investments under the Bipartisan Infrastructure Law.
Background
Established by the Water Infrastructure Finance and Innovation Act of 2014, the WIFIA program is a federal loan program administered by EPA. 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 WIFIA program has an active pipeline of pending applications for projects that will result in billions of dollars in water infrastructure investment and thousands of jobs.
EPA is currently accepting letters of interest for WIFIA loans. Learn more about submitting a letter of interest for a WIFIA loan.
Contact: EPA Press Office (press@epa.gov)