The U.S. Environmental Protection Agency (EPA) celebrated Water Week 2022 by announcing two Water Infrastructure Finance and Innovation Act (WIFIA) loans totaling $308 million to the City of Joliet, Ill.
EPA’s WIFIA loans will support Joliet’s Alternative Water Source Program, which will tap into Lake Michigan as a sustainable source of drinking water to benefit the city and neighboring communities.
“Water Week 2022 is focused on elevating clean water as a national priority and EPA’s WIFIA program is a powerful investment tool that is helping achieve that goal in Joliet and communities across the country,” said EPA Assistant Administrator for Water Radhika Fox. “Clean, reliable, and affordable water is essential to everyone, and this project will help the city transition from counting on a depleted aquifer to a much more reliable and sustainable source of water.”
An Illinois State Water Survey projection has indicated that local aquifers will be unable to support the city’s maximum daily water demand by 2030.
The City of Joliet’s two WIFIA loans will support the planning, design, and program management costs for the Alternative Water Source Program and the modernization of the city’s existing water distribution system. These projects will enable a new connection to Lake Michigan as a primary water source while also identifying and replacing lead service lines and reducing the system’s water loss from over 30 percent to under 10 percent—saving 2.5 million gallons per day.
The City of Joliet will save approximately $112 million by financing with WIFIA loans. Project construction and operation for these first two loans are expected to create over 5,000 jobs. These two WIFIA loans are part of a master agreement that will commit over $340 million in WIFIA financial assistance to the City of Joliet for the Alternative Water Source Program. This arrangement with EPA provides the City of Joliet quick access to long-term, committed financing at attractive terms, enabling the City of Joliet to reduce cost impacts to customers.
“We are pleased to close on this loan. Federal financing at a low interest rate reduces cost impacts to our residents,” said Joliet Mayor Bob O’Dekirk. “As we work to bring Lake Michigan water to Joliet and the region by 2030, this loan will finance development costs enabling continuation of this critical infrastructure project. The City of Joliet is committed to upgrading our water distribution system. These improvements will conserve water and reduce water loss, allowing us to receive Lake Michigan water and provide a sustainable, reliable, and high-quality water source to our residents for generations to come.”
