Bruno Pigott, the head of the U.S. Environmental Protection Agency’s (EPA) Water Office, partnered with Jim McGoff from the Indiana Finance Authority on Friday to unveil a $196 million loan aimed at enhancing drinking water and wastewater systems across the state. This financial support will play a crucial role in meeting the needs of Indiana’s growing population.
The state plans to allocate these funds to projects that will modernize drinking water and wastewater infrastructure, ensuring improved services for communities across Indiana. This investment is particularly vital in addressing the challenges posed by aging facilities and expanding services in areas experiencing increased demand. The funded projects will span various locations throughout the state, benefiting approximately 134,000 residents.
The EPA’s State Infrastructure Financing Authority Water Infrastructure Finance and Innovation Act (SWIFIA) program specializes in providing loans to state financing authorities, also referred to as state revolving fund programs. This particular SWIFIA loan will enhance Indiana’s Clean Water and Drinking Water State Revolving Funds, facilitating the execution of essential water infrastructure initiatives within the state.
This marks the Indiana Finance Authority’s first SWIFIA loan and its third loan under the EPA’s Water Infrastructure Finance and Innovation Act (WIFIA) program, contributing to a total of over $630 million in WIFIA financing aimed at advancing water infrastructure projects in Indiana. The SWIFIA loan will also provide the authority with greater flexibility by allowing a 20-year deferment on principal payments, resulting in significant savings for residents in Indiana. Savings from the state’s inaugural WIFIA loan amounted to more than $130 million.
Since its inception, the EPA’s Water Infrastructure Finance and Innovation Act program has secured $21 billion in financing, which supports $45 billion in water infrastructure projects. These efforts are essential for reinforcing drinking water, wastewater, and stormwater systems, while also creating over 150,000 jobs in the process.