Credit Assistance Under the State Infrastructure Financing Authority Water Infrastructure Finance and Innovation Act (SWIFIA) Program - FY 2024
| Agency: | U.S. Environmental Protection Agency |
|---|---|
| CFDA: | 66.958 |
| Office: | Office of Water Office of Wastewater Management |
| Multipart Grant: | No |
| Next Due: | Rolling |
|---|---|
| Solicitation Date: | 09/09/2024 |
| Match Required: | Yes |
| Match Type: | Unspecified |
| Actual Funds: | $1,000,000,000 (Estimated) |
Summary:
The purpose of this program is to provide on-parity senior loans to help state infrastructure finance authorities lend to multiple projects throughout their states. This program is intended to accelerate investment in the nation’s water, wastewater, and stormwater infrastructure by providing long-term, low-cost, supplemental credit assistance under customized terms to creditworthy water infrastructure projects of national and regional significance. This program is implementing the following five key priorities of the funding agency:
- Increasing investment in economically stressed communities: the funding agency encourages the submission of projects that address the ever-increasing needs of economically stressed and disadvantaged communities to ensure they benefit from investments in water infrastructure, and therefore improve the health and livability of these communities
- Making rapid progress on lead service line replacement: the funding agency encourages the submission of drinking water infrastructure projects that will help make rapid progress on replacing lead service lines in order to reduce exposure to lead and improve public health
- Addressing perfluoroalkyl and polyfluroralkyl substances (PFAS) and emerging contaminants: the funding agency encourages the submission of projects that focus on reducing people's exposure to PFAS and other emerging contaminants through drinking water and/or projects that help address discharges of emerging contaminants from wastewater and/or stormwater systems
- Strengthening climate resilience in the water sector: the funding agency supports projects that create a more resilient water infrastructure to address the impacts of extreme weather, including projects that protect against drought and projects that protect and diversity a community's sources of water
- Supporting one water innovation and resilience: the funding agency encourages the submission of water infrastructure projects that are new and innovative in regard to energy efficiency, as well as water infrastructure projects that are more resilient to all threats, whether they are natural disasters, climate change, or threats such as bio-terrorism and cyber-attacks
Funding will support combinations of projects, in which each is eligible for assistance under Section 603(c) of the Federal Water Pollution Control Act or Section 1452(a)(2) of the Safe Drinking Water Act. Eligible project types are:
- Wastewater projects that are eligible for assistance under Section 603 of the Federal Water Pollution Control Act, notwithstanding the public ownership requirement under paragraph (1) of that subsection
- Drinking water projects described in section 1452(a)(2) of the Safe Drinking Water Act
- Projects that enhance energy efficiency in the operation of a public water system or a publicly owned treatment works
- Projects for repair, rehabilitation, or replacement of a treatment works, community water system, or aging water distribution or waste collection facility
- Brackish or seawater desalination projects, including chloride control, a managed aquifer recharge project, a water recycling project, or a project to provide alternative water supplies to reduce aquifer depletion
- Projects to prevent, reduce, or mitigate the effects of drought, including projects that enhance the resilience of drought-stricken watersheds
- Acquisition of real property or an interest in real property for either an eligible project described above or for the mitigation of environmental impacts of water resources infrastructure projects that would otherwise be eligible for funding through this program
- Combinations of eligible projects
Refer to pages 13-14 of the NOFA file for additional information regarding eligible projects.
All federal cross-cutter provisions apply to this program.
Eligible project costs are those associated with the following activities:
- Development-phase activities, including planning, feasibility analysis, revenue forecasting, environmental review, permitting, preliminary engineering and design work, and other pre-construction activities
- Construction, reconstruction, rehabilitation, and replacement activities
- Acquisition of real property or an interest in real property, environmental mitigation, construction contingencies, and acquisition of equipment
- Capitalized interest necessary to meet market requirements, reasonably required reserve funds, capital issuance expenses, and other carrying costs during construction
Optional webinars and optional office hours are scheduled for this program. Refer to the Application section for details.
Program Office Notes:
The program officer stated that the program handbook, attached as the Guide file, as well as the letter of interest form, attached as the LOI file, are up to date.
Last Updated: April 03, 2025
Eligibility Notes:
Eligible applicants are state infrastructure financing authorities, which, for the purposes of this program, are defined as the state entities established or designated by the governors of states to receive a capitalization award provided by, or otherwise carry out the requirements of, Title VI of the Federal Water Pollution Control Act or Section 1452 of the Safe Drinking Water Act.
Applicants must submit a single application for the proposed project, which must consist of a combination of projects. Multiple discrete construction projects may be funded through a single loan if they are secured by a common security pledge, as detailed on page 15 of the Guide file.
Priority will be given to projects that support improved water infrastructure in economically stressed and disadvantaged communities.
Eligible Applicants:
State GovernmentApplication Notes:
Mandatory letters of interest (LOIs) will be accepted beginning on October 1, 2024, and on a rolling basis.
LOIs must be submitted via the funding agency's SharePoint site. To receive access to the site, applicants must email the appropriate address provided in the Contact section and request access. Once the LOI has been uploaded to the SharePoint site, applicants should email the appropriate address provided in the Contact section with the subject line "[Name of Prospective Borrower] - [Name of Project] - Letter of Interest Submitted."
LOIs must include:
- Loan information
- Contact information
- Certifications
- Supporting documents:
- Intended use plan (IUP)
- State revolving fund (SRF) operating agreements with the funding agency's regional office
- Documentation of the priority setting system (if applicable)
- Bond indentures (if applicable)
The following are required in order to submit an application:
- Unique Entity Identifier (UEI) number
- SAM (System for Award Management) registration
Applicants may obtain a UEI number and verify or renew SAM registration status at www.ecivis.com/sam.
Optional webinars for this program are scheduled as follows:
How to Apply Webinar:
October 8, 2024
2:00 p.m. - 3:00 p.m. ET
Register: events.gcc.teams.microsoft.com
How to Apply Webinar:
October 17, 2024
2:00 p.m. - 3:00 p.m. ET
Register: events.gcc.teams.microsoft.com
Loans to State Infrastructure Financing Authorities Webinar:
November 12, 2024
2:00 p.m. - 3:00 p.m. ET
Register: events.gcc.teams.microsoft.com
Using the WIFIA and SRF Programs to Finance Water Infrastructure Projects Webinar:
January 14, 2025
3:00 p.m. - 4:00 p.m. ET
Register: events.gcc.teams.microsoft.com
Additionally, optional office hours for this program are scheduled as follows:
September 11, 2024
3:00 p.m. - 4:00 p.m. ET
Register: events.gcc.teams.microsoft.com
October 9, 2024
3:00 p.m. - 4:00 p.m. ET
Register: events.gcc.teams.microsoft.com
November 13, 2024
3:00 p.m. - 4:00 p.m. ET
Register: events.gcc.teams.microsoft.com
December 11, 2024
3:00 p.m. - 4:00 p.m. ET
Register: events.gcc.teams.microsoft.com
January 8, 2025
3:00 p.m. - 4:00 p.m. ET
Register: events.gcc.teams.microsoft.com
February 12, 2025
3:00 p.m. - 4:00 p.m. ET
Register: events.gcc.teams.microsoft.com
March 12, 2025
3:00 p.m. - 4:00 p.m. ET
Register: events.gcc.teams.microsoft.com
April 9, 2025
3:00 p.m. - 4:00 p.m. ET
Register: events.gcc.teams.microsoft.com
May 14, 2025
3:00 p.m. - 4:00 p.m. ET
Register: events.gcc.teams.microsoft.com
June 11, 2025
3:00 p.m. - 4:00 p.m. ET
Register: events.gcc.teams.microsoft.com
July 9, 2025
3:00 p.m. - 4:00 p.m. ET
Register: events.gcc.teams.microsoft.com
August 13, 2025
3:00 p.m. - 4:00 p.m. ET
Register: events.gcc.teams.microsoft.com
Refer to pages 3-4 of the NOFA file as well as pages 64-66 of the Guide file for information regarding LOI evaluation criteria.
Applicants submitting successful LOIs will be invited to submit final applications within eight weeks of submitting LOIs.
Refer to the NOFA, Guide, Overview, LOI, and OfficeHours files for additional application information.
| Match Required: | Yes |
|---|---|
| Match Type: | Unspecified |
| Actual Funds: | $1,000,000,000 (Estimated) |
Match Notes:
Applicants must provide at least 51 percent of the total project costs. Applicants will be evaluated according to the extent to which the project financing plan includes public or private financing during the letter of interest (LOI) evaluation process.
Projects must be creditworthy and have a dedicated source of revenue. Loans must be repaid using a dedicated source of repayment or a security pledge that is the same in all material respects as the security pledged to the project's senior obligations. Dedicated revenue sources include such sources as taxes, rate revenue, transfers pledged from state or local governments, municipal general obligation pledges, general recourse corporate financing, project revenues, or other revenues that are pledged for the purpose of paying debt service.
Projects must include a rate covenant, coverage requirement, or similar security feature supporting the project obligations.
Applicants invited to submit final applications must provide a non-refundable application fee. The fee will be $25,000 for projects serving less than 25,000 people, and $100,000 for all other applications. Upon loan execution, applicants must also pay a credit processing fee generally ranging from approximately $100,000 to $300,000. The funding agency may charge additional fees when necessary, as detailed on page 70 of the Guide file.
Funding Notes:
Approximately $1 billion is expected to be available to support credit assistance in the form of secured (direct) loans or loan guarantees through this program. The funding agency expects to accelerate approximately $2 billion in infrastructure investment through this program.
The project must have eligible project costs that are reasonably anticipated to equal or exceed $20 million.
In addition to loan funding, the funding agency has made $5 million available to cover the subsidy costs of providing assistance.
Funds will be provided on a reimbursement basis.
Applicants may request one of the following loan structures:
- Funding agency accepts the applicant's existing capital market debt indenture
- Applicant accepts the funding agency's standard terms
In general, the funding agency prefers that all projects achieve substantial completion within five years of loan closing or the start of project construction.
The maximum maturity date from the date of first loan disbursement is 35 years. Repayment may be deferred for up to five years after substantial completion of the project. Interest rates will be equal to or greater than the U.S. Treasury rate for loans of a similar maturity at the date of closing.
The minimum debt service coverage ratio and additional bonds test is 1.0, as detailed on page 61 of the Guide file.
Applicants may request reimbursement of costs incurred prior to receiving credit assistance, as well as costs incurred prior to financial close, including the value of any integral in-kind contributions. Such costs will be approved on a case-by-case basis. Refer to pages 18-19 of the Guide file for details.
Funds may not be used for:
- Supplanting existing funding resources
- Debt principal payments
- Capitalized interest on credit assistance
- Construction contingency reserve funds for cost over-runs during construction
- Retainage from payments to designers or constructors
- Operating and maintenance reserve funds
- Completed projects
Contacts:
Amelia Letnes
(202) 564-5627
letnes.amelia@epa.gov
Program Staff
wifia@epa.gov
Agency Address
U.S. Environmental Protection Agency (EPA)
WIFIA Program
Office of Water
Office of Wastewater Management
1200 Pennsylvania Avenue, NW
Washington, D.C. 20460
Contact Notes:
Questions should be directed to the program contacts provided. The preferred method of contacting Amelia Letnes is via email.
Letters of interest (LOIs) must be submitted via the funding agency's SharePoint site. To receive access to the site, applicants must email [email protected] and request access. Once LOIs are submitted online, applicants must email [email protected] to confirm its receipt.
The agency address provided is for reference purposes only.
Files:
NOFA File: US16471_NOFA_FY2024.pdf (201.9 Kb)Guide File: US16471_Guide_FY2024.pdf (1.2 Mb)
Other Pre-Award File: US16471_Overview_FY2024.pdf (183.5 Kb)
Other Pre-Award File: US16471_LOI_FY2024.pdf (1.1 Mb)
Other Pre-Award File: US16471_Webinar_FY2024.pdf (133.3 Kb)
Other Pre-Award File: US16471_OfficeHours_FY2024.pdf (140.1 Kb)
File Notes:
The NOFA file contains the full solicitation for this program. The Guide file contains detailed program information and application instructions. The Overview file contains general program information, including information regarding pre-application webinars and office hours. The LOI file contains the required LOI form for submission. The Webinar file contains information regarding an additional optional webinar scheduled for this program. The OfficeHours file contains a list of additional office hours scheduled for this program. Additional program resources can be found online at www.epa.gov.
April 3, 2025
A list of additional office hours scheduled for this program has been released and appended to the OfficeHours file. The Application section has been updated accordingly.
December 27, 2024
A list of additional office hours scheduled for this program has been released as attached as the OfficeHours file. The Application section has been updated accordingly.
October 30, 2024
Information regarding an additional optional webinar scheduled for this program has been released and attached as the Webinar file. The Application section has been updated accordingly.
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Environment/Natural ResourcesWastewater
Water Supply/Quality