On Friday, Dec. 3, 2021, the United States Environmental Protection Agency (EPA) announced in a press release that two Valley Water projects are invited to apply for loans from the Water Infrastructure Finance and Innovation Act (WIFIA).
The Valley Water projects invited to apply for WIFIA loans include the proposed Pacheco Reservoir Expansion Project (up to $1.2 billion), and the Safe, Clean Water and Natural Flood Protection Program. Three projects under the Safe, Clean Water and Natural Flood Protection Project would benefit from the WIFIA funding, including the Almaden Lake Improvement Project ($25 million), the Coyote Creek Flood Protection Project ($24 million), and the Sunnyvale East and West Channels Flood Protection Project ($25 million).
Now that these projects have been formally invited by the EPA to apply for a WIFIA loan, Valley Water’s next step is to prepare and submit the full loan application in spring 2022. The loans will eventually need to be approved by the Valley Water Board of Directors.
A long-term, low-cost supplemental WIFIA loan would result in significant financing cost savings to Valley Water for the Pacheco Reservoir Expansion Project and reduce the potential impacts to water rates in Santa Clara County.