The District of Columbia Water and Sewer Authority (DC Water) is set to get a federal loan of $156 million to improve the water and sewer infrastructure around the city.
The announcement came from Michael Regan, administrator of the US Environmental Protection Agency (EPA) on Thursday, April 15.
Given under the Water Infrastructure Finance and Innovation Act (WIFIA), the EPA loan will cover around half of the $319 million spending needed for DC Water’s Comprehensive Infrastructure Repair, Rehabilitation and Replacement Program.
The loan will save the District approximately $30 million in interest due to the low-interest rate compared to a commercial loan.
“EPA’s WIFIA program demonstrates that investments in water infrastructure—just like those called for under the American Jobs Plan—can help our nation build back stronger while supporting lower income communities and communities of color,” Regan said. “DC Water’s improvement projects will revitalize water infrastructure in this historic city and EPA’s WIFIA loan will provide significant cost-savings—providing a win-win for local communities.”
Speaking at Thursday’s event, Mayor Muriel Bowser emphasized that it is especially critical right now for the city to be able to continue its infrastructure projects without an additional financial burden for residents who are affected by the pandemic. “We thank the Biden Administration and Administrator Regan for recognizing this need and for investing in our shared goal to build back better,” she added.
“Today’s news will have a real impact on District residents and visitors. With this federal loan, DC Water will be able to improve service, pass on savings to their customers and put greater investment into clean infrastructure,” said US Congresswoman Eleanor Holmes Norton, who was also present at the event.
DC’s stormwater management systems will also be upgraded thanks to the loan, to make the Anacostia and Potomac Rivers “fishable and swimmable again,” according to Norton.
The savings will be passed on to more than 700,000 residents of the city, including low-income families and communities of color, through service improvements.
As part of the water infrastructure improvements, DC Water is planning to work on new water mains to improve drinking water quality and reduce service disruptions resulting from breaks in aged pipes.