The U.S. Environmental Protection Agency (EPA) announced on October 24, 2024, a $268 million Water Infrastructure Finance and Innovation Act (WIFIA) loan to Hampton Roads Sanitation District (HRSD), which serves areas across southeast Virginia and the Eastern Shore.
This is the third WIFIA loan, part of a $1.3 billion agreement to implement the Sustainable Water Infrastructure for Tomorrow (SWIFT) Program, which will re-charge the Potomac Aquifer and help secure the drinking water supply for 1.9 million residents.
“EPA is working with local partners to address water challenges such as diminishing groundwater supplies and safely managing wastewater to protect our treasured ecosystems,” said EPA Principal Deputy Administrator for Water Bruno Pigott in a press release.
Wastewater treatment facilities in parts of southeastern Virginia need upgrades to improve efficiency and save water. The SWIFT Program plans to utilize water reuse and advanced water treatment technologies to replenish the stressed Potomac Aquifer with highly treated water that meets drinking water standards.
This program, funded in part by EPA’s WIFIA loans, will launch 20 construction projects to upgrade water infrastructure in the area.
Not only will these projects improve climate resilience and help ensure a sustainable drinking water supply, they will also improve the water quality of the Chesapeake Bay by reducing approximately 50 million gallons a day, of HRSD’s wastewater discharges to the watershed.
“As we face increasing environmental challenges, HRSD’s SWIFT program represents an important step toward sustainable, ‘one water’ management,” said HRSD General Manager and CEO Jay Bernas in a press release. “This innovative initiative not only enhances our water quality, but also safeguards our community’s future for generations to come.”
This is the third WIFIA loan under a master agreement that will commit $1.3 billion, nearly half of HRSD’s $2.9 billion initial SWIFT Program costs.
The remaining costs will be funded by Virginia’s Clean Water State Revolving Fund financing under a similar agreement and borrower produced contributions. The WIFIA loan’s flexible structure, including the borrowers' ability to defer principal payments and structure the loan around other debt, helps the district manage program costs while securing additional funding sources.
