Rep. Schrier Introduces Bipartisan Legislation to Fund Critical Local Water Infrastructure and Keep Customer Rates Affordable

WASHINGTON, DC – U.S. Representative Kim Schrier (D-WA) introduced the Water Infrastructure Finance and Innovation Act Amendments of 2023, a bipartisan bill to update and improve a loan program that funds critical water and wastewater infrastructure projects in Washington State. Representatives Dan Newhouse (R-WA), John Garamendi (D-CA), Doug LaMalfa (R-CA), Jim Costa (D-CA), Lori Chavez Deremer (R-OR), and Sharice Davids (D-KS) are co-leading this bill alongside Congresswoman Schrier. 

The Water Infrastructure Finance and Innovation Act of 2014 (WIFIA) established the WIFIA program, a federal credit program administered by the EPA and other agencies for eligible water and wastewater infrastructure projects. Under this program, eligible borrowers, including state, Tribal, and federal government entities, apply for low-interest, flexible loans to fund water infrastructure projects. These loans are invaluable resources that allow local governments to meet the infrastructure needs of their respective communities at an affordable rate.

WIFIA loans have had a significant impact throughout the country, and to date, the program has announced $19 billion to help finance 109 projects across the country, creating 60,000 jobs. In Washington state, King County, the City of Tacoma, and Seattle Public Utilities have all received WIFIA loans. Recently, King County was invited to apply for a $287 million WIFIA Master Agreement, which helped fund several projects including the NW Lake Sammamish Interceptor Upgrade, Sammamish Plateau Diversion Project, seismic upgrades, and a pump replacement.

Since entering Congress, Representative Schrier has consistently pushed to improve the WIFIA program and cosponsored previous legislation, including the WIFIA Improvement Act of 2020, to achieve much-needed reforms.

“Ensuring that we have reliable, clean water is essential to the stability and well-being of our communities,” said Rep. Schrier. “This bipartisan bill would allow our local water operators access to key loans that would provide affordable, secure financing for much-needed infrastructure projects.  I’m proud to introduce this commonsense legislation to help solidify vital water infrastructure in the Eighth District.”

Congresswoman Schrier’s legislation would improve WIFIA by extending funding for the program, expanding eligibility for the loans, and other common-sense reforms. More specifically, this legislation would:

• Broaden and restore WIFIA funding and financing eligibility to state entities and non-federal cost shares in federally involved projects. This includes state-led water storage projects, transferred works of the Bureau of Reclamation, and congressionally authorized Army Corps of Engineers (USACE) projects.
• Authorize the use of collaborative project delivery methods for WIFIA projects, allowing more flexibility and reducing the time and cost of the project.
• Allow certain federal water infrastructure loans to have maturity dates of up to 55 years.
• Reauthorize the USACE WIFIA program through FY2027.

“Representative Schrier’s bill would allow many irrigation districts in the rural West access to long term affordable loans from the WIFIA program for much needed infrastructure improvement construction on water projects that are crucial to the Yakima Basin and the West. We need all the tools in the toolbox, especially this one to help solve our future water supply problems,” said Urban Eberhart, Manager, Kittitas Reclamation District.

“Federal water projects play a significant role in our way of life throughout Central Washington,” said Rep. Newhouse. “Unfortunately, much of our water infrastructure is aging and in need of repair or maintenance. This legislation will improve the Water Infrastructure and Innovation Act (WIFIA) loan program to help our water managers' and operators' finance these critical projects, securing long-term success for this infrastructure. I am proud to lead on this legislation, which builds off of my previous bills to make public water projects eligible for low-interest, longer-term federal loans, and help ensure clean and consistent water and irrigation for the families in rural communities across the West for generations to come.”

“Our bipartisan legislation would unlock $11 billion in low-interest federal financing for western water projects, including modernizing California’s Central Valley Project,” said Rep. Garamendi. “We need all the federal and state resources we can get to meet western states’ future water supply needs and achieve a truly drought-resilient water system given climate change. I thank Congresswoman Schrier for leading the bill again this Congress to make smart federal investments to upgrade and modernize western states’ water supply. I look forward to helping her advance this critical bill.”

“It should be easier – not harder – to get water projects approved and funded. This bill allows for more localities to have a chance at receiving low-cost loans for important water projects and extends their loan maturity date to make them more affordable to operate. We will also cut red tape and allow project designers and builders to actually talk to each other and collaborate on their own projects. By implementing these changes, we will enable the building and creation of more water projects such as levees, treatment plants, and reservoirs,” said Rep.LaMalfa.

"We cannot ignore the devastating impacts of drought on California and the West. We must quickly and effectively invest in our crumbling water infrastructure so that we can conserve every drop of water possible," said Rep. Costa. "I am proud to co-sponsor this bipartisan legislation that will provide improved financing tools that allow us to better invest in our water system."

“I’m proud to support this bipartisan proposal to invest in one of our nation’s most crucial resources: our water. Oregon is one of many states that has experienced consecutive, devastating droughts. This investment is needed to secure funding for public water projects that will deliver water to farmers and ensure Oregonians have reliable access to clean drinking water for generations to come,” said Rep. Chavez DeRemer.

“Water infrastructure is critical to the health, safety, and wellbeing of our communities, but too often people don't think about it until it breaks. By making low-interest federal funding available and creating new, innovative ways to execute these water projects, we’re helping local officials plan and save before disaster strikes,” said Rep. Davids. “The Kansas Third has already taken advantage of these loans to repair and replace aging wastewater systems, and I look forward to making those opportunities available to more projects in our community.”

“The Columbia Basin Development League supports the amendments to WIFIA proposed by Representative Schrier and other co-sponsors.  The amendments directly respond to the need for water infrastructure funding that accounts for circumstances that have historically been excluded from funding access. Among other provisions, clarity provided by the amendments critically addresses eligibility issues that could make WIFIA a funding source for irrigation district projects within the Columbia Basin Project,” said Sara Higgins, Executive Director of the Columbia Basin Development League.

“On behalf of the Yakima Basin Joint Board (Joint Board), I write in full support of your amendment to the Water Resources Development Act of 2023 that, among other things, would amend the Water Infrastructure and Finance Innovation Act (WIFIA) program to extend repayment terms and expand eligibility to improve the use of WIFIA loans to help finance water infrastructure improvements in the Yakima River Basin in Washington State,” said Lori Brady, President of the Yakima Basin Joint Board.

“Many of the large irrigation projects in the West operated by our members are transferred works of the Bureau of Reclamation. Among other things the Water Infrastructure Finance and Innovation Act Amendments of 2023 would clarify that transferred works are indeed eligible for financing under WIFIA. This helps to ensure that the original Congressional intent for these projects to be eligible for WIFIA financing is carried out. In short, this bill will expand the financing toolbox for Reclamation projects in the Western U.S. We thank Congresswoman Schrier for co-sponsoring this important bipartisan legislation,” said Dan Keppen, Executive Director of the Family Farm Alliance.

“The Water Infrastructure Finance and Innovation Act (WIFIA) is one of the most important tools available to states and communities to finance critical clean water and drinking water infrastructure projects.  The Water Infrastructure Finance and Innovation Act Amendments of 2023 will expand the reach and flexibility of WIFIA and allow it to have a greater impact on water infrastructure development and provide support to communities in need. Additionally, the bill will reauthorize the U.S. Army Corps of Engineers WIFIA program (CWIFP), which will allow the Corps to provide needed improvements to non-federal dam projects nationwide and help protect downstream communities. ASCE’s 2021 Report Card for America’s Infrastructure graded drinking water, stormwater, and wastewater infrastructure as C-, D, and D+, respectively, citing major gaps in water infrastructure funding for aging systems. With the large backlog of water projects, it is critical that communities have many tools in the toolbox to provide innovative financing solutions. This legislation allows the critical WIFIA program to be used to its fullest potential,” said Maria Lehman, American Society of Civil Engineers President.

“APWA is proud to support this legislation because it gives more flexibility to public works professionals to best serve their communities. Additional flexibility for financing and eligibility will mean more localities with fewer resources will have the opportunity to make improvements to their water infrastructure and their quality of life,” said Scott Grayson, CEO of the American Public Works Association.

This legislation is endorsed by the Columbia Basin Development League, Yakima Basin Joint Board, American Society of Civil Engineers, Washington State Water Resources Association, Kittitas Reclamation District, Family Farm Alliance, National Rural Water Association, American Public Works Association, Northern California Water Association, Sacramento River Settlement Contractors, Association of California Water Agencies, Friant Water Authority, American Public Works Association, Sacramento River Settlement Contractors, San Luis & Delta-Mendota Water Authority, South Coast Water District, and the California Water Service.