EPA Announces $156 Million Loan to Improve Drinking Water Infrastructure in Pflugerville, Texas

EPA Announces $156 Million Loan to Improve Drinking Water Infrastructure in Pflugerville, Texas

November 15, 2024

DALLAS, TEXAS (November 15, 2024) - Today, the U.S. Environmental Protection Agency (EPA) announced a new $156 million Water Infrastructure Finance and Innovation Act (WIFIA) loan to the City of Pflugerville, Texas, to support drinking water infrastructure upgrades and continue to ensure that the entire community can rely on clean, safe drinking water.

"Upgrading water infrastructure is one of the best ways to support vibrant communities. Clean, safe, and reliable water nurtures healthy residents and protects the environment while construction work on these upgrades creates good-paying jobs," said EPA's Principal Deputy Assistant Administrator for Water Bruno Pigott.

"Congratulations to Pflugerville for securing this $156 million EPA loan with more to investments to come. Through this loan program and unprecedented funding under the Bipartisan Infrastructure Law, EPA is working with local partners across the country to address community needs and create new opportunities through water," Pigott said.

This WIFIA loan will enable the city to plan, design and construct three drinking-water projects. The city will expand its water treatment plant and increase the capacity of the existing drinking water distribution system by upsizing pipes, constructing a new secondary Colorado River Raw Water Line, and upgrading pump stations. Together, these projects will help the city meet current and future demand.

With this loan, EPA and the City of Pflugerville are also announcing a $462 million master agreement, which will facilitate future low-cost WIFIA financing to support upcoming drinking water and wastewater projects. Through WIFIA financing, the city will save up to $6.5 million in interest costs. By securing a $462 million master agreement, the city increases its funding certainty to implement critical projects outlined in its 10-year capital improvement program plan and will have the flexibility to draw loan funds at any time during construction to reimburse for project costs. As a result, the city can make critical water system upgrades while keeping water bills affordable for the community. Additionally, the projects will create about 1,200 jobs.

"The City of Pflugerville is monumentally excited to partner again with the EPA WIFIA team to provide funding for critical water and wastewater infrastructure projects that will continue to serve our community for decades to come," said Brandon Pritchett, Public Utility Director for the City of Pflugerville.

"With this partnership, the city can move forward on key projects, while saving the City of Pflugerville a substantial amount of money on the interest paid on the debt for these massive, legacy infrastructure projects," he continued. "Pflugerville has a phenomenal working relationship with the EPA WIFIA team, and we are thrilled to continue to work with them as we expand our water and wastewater systems."

This is the second WIFIA loan to the city. In 2022, the City of Pflugerville was awarded the first WIFIA loan, totaling $52 million, to support the Wilbarger Creek Regional Wastewater Treatment Facility.

Since its creation, EPA's WIFIA program has announced nearly $21 billion in financing to support $45 billion in water infrastructure projects that are strengthening drinking water, wastewater, and stormwater infrastructure while creating approximately 150,000 jobs.

Learn more about the 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 the EPA. The WIFIA program aims 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 in its eighth selection round for WIFIA financing. In this round, EPA is offering $6.5 billion through WIFIA, and $1 billion through SWIFIA, which is a loan program exclusively for State infrastructure financing authority borrowers. EPA is currently accepting letters of interest for WIFIA and SWIFIA loans. Learn more about submitting a letter of interest for a WIFIA loan.

In addition to WIFIA loans, there are many federal funding resources available for communities and water systems to improve vital drinking water and wastewater infrastructure. For example, President Biden's Bipartisan Infrastructure Law is providing a once-in-a-generation investment in our nation's water infrastructure.

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