[Federal Register Volume 84, Number 66 (Friday, April 5, 2019)]
[Notices]
[Pages 13657-13662]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-06731]
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ENVIRONMENTAL PROTECTION AGENCY
[FRL-9991-81-OW]
Notice of Funding Availability (NOFA) for Applications for Credit
Assistance Under the Water Infrastructure Finance and Innovation Act
(WIFIA) Program
AGENCY: Environmental Protection Agency (EPA).
ACTION: Notice of funding availability.
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SUMMARY: In the Consolidated Appropriations Act, 2019, signed by the
President on February 15, 2019, Congress provided $60 million in budget
authority for the Water Infrastructure Finance and Innovation Act of
2014 (WIFIA) program to cover the subsidy required to provide a much
larger amount of credit assistance. The Environmental Protection Agency
(EPA or the Agency) estimates that this budget authority may provide
approximately $6 billion in credit assistance and may finance
approximately $12 billion in water infrastructure investment, while
covering increased costs associated with implementing a larger program.
The purpose of this notice of funding availability (NOFA) is to solicit
letters of interest (LOIs) from prospective borrowers seeking credit
assistance from the EPA.
The EPA will evaluate and select proposed projects described in the
LOIs using the selection criteria established in statute and
regulation, and further described in this NOFA as well as the WIFIA
program handbook. This NOFA establishes relative weights that will be
used in the current LOI submittal period for the selection criteria and
outlines the process that prospective borrowers should follow to be
considered for WIFIA credit assistance.
In addition, the EPA reserves the right to make additional awards
under this announcement, consistent with Agency policy and guidance, if
additional funding is available after the original selections are made.
DATES: The LOI submittal period will begin on April 5, 2019 and end at
11:59 p.m. EDT on July 5, 2019.
ADDRESSES: Prospective borrowers should submit all LOIs electronically
via email at: [email protected] or via EPA's SharePoint site. To be granted
access to the SharePoint site, prospective borrowers should contact
[email protected] and request a link to the SharePoint site, where they can
securely upload their LOIs. Requests to upload documents should be made
no later than 5:00 p.m. EDT on July 1, 2019.
The EPA will notify prospective borrowers that their LOI has been
received via a confirmation email.
Prospective borrowers can access additional information, including
the WIFIA program handbook and application materials, on the WIFIA
website: https://www.epa.gov/wifia/.
SUPPLEMENTARY INFORMATION: For a project to be considered during a
selection round, the EPA must receive a LOI, via email or SharePoint,
before the corresponding deadline listed above. The EPA is only able to
accept emails of 25 MB or smaller with unzipped attachments (the EPA
cannot accept zipped files). If necessary due to size restrictions,
prospective borrowers may submit attachments separately, as long as
they are received by the deadline.
When writing a LOI, prospective borrowers are encouraged to fill
out the WIFIA LOI form and follow the guidelines contained on the WIFIA
program website: https://www.epa.gov/wifia/how-apply-wifia-assistance-0#materials. Prospective borrowers should provide the LOI and any
attachments as Microsoft Word documents or searchable PDF files,
[[Page 13658]]
whenever possible, to facilitate the EPA's review. Additionally,
prospective borrowers should ensure that financial information,
including the pro forma financial statement, is in a formula-based
Microsoft Excel document. Section V of this NOFA provides additional
details on the LOI's content.
The EPA will invite each prospective borrower whose project
proposal is selected for continuation in the process to submit a final
application. Final applications should be received by the EPA within
365 days of the invitation to apply.
The EPA will host a series of in-person sessions and webinars to
provide further information about submitting a LOI. The in-person
sessions and webinar schedule and registration directions can be found
on the WIFIA program website: www.epa.gov/wifia.
Prospective borrowers with questions about the program or interest
in meeting with the WIFIA program staff may send a request to
[email protected]. The EPA will meet with all prospective borrowers
interested in discussing the program, but only prior to submission of a
LOI.
Table of Contents
I. Background
II. Program Funding
III. Eligibility Requirements
IV. Types of Credit Assistance
V. Letters of Interest and Applications
VI. Fees
VII. Selection Criteria
I. Background
Congress enacted WIFIA as part of the Water Resources Reform and
Development Act of 2014 (WRRDA). Codified at 33 U.S.C. 3901-3914, WIFIA
authorizes a federal credit program for water infrastructure projects
to be administered by the EPA. WIFIA authorizes the EPA to provide
federal credit assistance in the form of secured (direct) loans or loan
guarantees for eligible water infrastructure projects.
The WIFIA program's mission is to accelerate investment in our
nation's water and wastewater infrastructure by providing long-term,
low-cost, supplemental credit assistance under customized terms to
creditworthy drinking water and wastewater infrastructure projects of
national and regional significance.
II. Program Funding
Congress appropriated $60 million in funding to cover the subsidy
cost of providing WIFIA credit assistance. The subsidy cost covers the
Federal government's risk that the loan may not be paid back. The EPA
anticipates that the average subsidy cost for WIFIA-funded projects
will be relatively low; therefore, this funding can be leveraged into a
much larger amount of credit assistance. The EPA estimates that this
appropriation will allow the Agency to provide approximately $6 billion
\1\ in long-term, low-cost financing to water and wastewater projects
and accelerate approximately $12 billion in infrastructure investment
around the country.
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\1\ This estimated loan volume is provided for reference only.
Consistent with the Federal Credit Reform Act of 1990 and the
requirements of the Office of Management and Budget, the actual
subsidy cost of providing credit assistance is based on individual
project characteristics and calculated on a project-by-project
basis. Thus, actual lending capacity may vary.
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Recognizing the need that exists in both small and large
communities to invest in infrastructure, Congress stipulated in statute
that the EPA set aside 15 percent of the budget authority appropriated
each year for small communities, defined as systems that serve a
population of less than 25,000. Of the funds set aside, any amount not
obligated by June 1 of the fiscal year for which budget authority is
set aside may be used for any size community. Regardless of whether the
EPA obligates these funds by June 1 of the fiscal year for which budget
authority is set aside, the EPA will endeavor to use 15 percent of its
budget authority for small communities.
In addition to assisting both large and small projects and
communities, WIFIA may be an attractive borrowing mechanism for a
variety of different borrower and credit types. The EPA anticipates
that municipalities, private entities, project financings, State
Revolving Fund programs, and tribes will benefit from the low cost and
debt structuring flexibilities that the WIFIA loans can offer.
III. Eligibility Requirements
The WIFIA statute and implementing rules set forth eligibility
requirements for prospective borrowers, projects, and project costs.
The requirements outlined below are described in greater detail in the
WIFIA program handbook.
A. Eligible Applicants
Prospective borrowers must be one of the following in order to be
eligible for WIFIA credit assistance:
(i) A corporation;
(ii) A partnership;
(iii) A joint venture;
(iv) A trust;
(v) A federal, state, or local governmental entity, agency, or
instrumentality;
(vi) A tribal government or a consortium of tribal governments; or
(vii) A state infrastructure financing authority.
B. Eligible Projects
The WIFIA statute authorizes the EPA to provide credit assistance
for a wide variety of projects. Projects must be one of the following
in order to be eligible for WIFIA credit assistance:
(i) One or more activities that are eligible for assistance under
section 603(c) of the Federal Water Pollution Control Act (33 U.S.C.
1383(c)), notwithstanding the public ownership requirement under
paragraph (1) of that subsection;
(ii) One or more activities described in section 1452(a)(2) of the
Safe Drinking Water Act (42 U.S.C. 300j-12(a)(2));
(iii) A project for enhanced energy efficiency in the operation of
a public water system or a publicly owned treatment works;
(iv) A project for repair, rehabilitation, or replacement of a
treatment works, community water system, or aging water distribution or
waste collection facility (including a facility that serves a
population or community of an Indian reservation);
(v) A brackish or sea water desalination project, including
chloride control, a managed aquifer recharge project, a water recycling
project, or a project to provide alternative water supplies to reduce
aquifer depletion;
(vi) A project to prevent, reduce, or mitigate the effects of
drought, including projects that enhance the resilience of drought-
stricken watersheds;
(vii) Acquisition of real property or an interest in real
property--
(a) If the acquisition is integral to a project described in
paragraphs (i) through (v); or
(b) Pursuant to an existing plan that, in the judgment of the
Administrator, would mitigate the environmental impacts of water
resources infrastructure projects otherwise eligible for assistance
under this section;
(viii) A combination of projects, each of which is eligible under
paragraph (i) or (ii), for which a state infrastructure financing
authority submits to the Administrator a single application; or
(ix) A combination of projects secured by a common security pledge,
each of which is eligible under paragraph (i), (ii), (iii), (iv), (v),
(vi), or (vii), for which an eligible entity, or a combination of
eligible entities, submits a single application.
C. Eligible Costs
As defined under 33 U.S.C. 3906 and described in the WIFIA program
[[Page 13659]]
handbook, eligible project costs are costs associated with the
following activities:
(i) Development-phase activities, including planning, feasibility
analysis (including any related analysis necessary to carry out an
eligible project), revenue forecasting, environmental review,
permitting, preliminary engineering and design work, and other
preconstruction activities;
(ii) Construction, reconstruction, rehabilitation, and replacement
activities;
(iii) The acquisition of real property or an interest in real
property (including water rights, land relating to the project, and
improvements to land), environmental mitigation (including acquisitions
pursuant to 33 U.S.C. 3905(8)), construction contingencies, and
acquisition of equipment; and
(iv) Capitalized interest necessary to meet market requirements,
reasonably required reserve funds, capital issuance expenses, and other
carrying costs during construction. Capitalized interest on WIFIA
credit assistance may not be included as an eligible project cost.
D. Threshold Requirements
For a project to be considered for WIFIA credit assistance, a
project must meet the following five criteria:
(i) The project and obligor shall be creditworthy;
(ii) A project shall have eligible project costs that are
reasonably anticipated to equal or exceed $20 million, or for a project
eligible under paragraphs (2) or (3) of 33 U.S.C. 3905 serving a
community of not more than 25,000 individuals, project costs that are
reasonably anticipated to equal or exceed $5 million;
(iii) Project financing shall be repayable, in whole or in part,
from state or local taxes, user fees, or other dedicated revenue
sources that also secure the senior project obligations of the project;
shall include a rate covenant, coverage requirement, or similar
security feature supporting the project obligations; and may have a
lien on revenues subject to any lien securing project obligations;
(iv) In the case of a project that is undertaken by an entity that
is not a state or local government or an agency or instrumentality of a
State or local government, or a tribal government or consortium of
tribal governments, the project that the entity is undertaking shall be
publicly sponsored; and
(v) The applicant shall have developed an operations and
maintenance plan that identifies adequate revenues to operate,
maintain, and repair the project during its useful life.
E. Federal Requirements
All projects receiving WIFIA assistance must comply, if applicable,
with federal requirements and regulations, including (but not limited
to):
(i) American Iron and Steel Requirement, 33 U.S.C. 3914, https://www.epa.gov/cwsrf/state-revolving-fund-american-iron-and-steel-ais-requirement;
(ii) Labor Standards, 33 U.S.C. 1372, https://www.dol.gov/whd/govcontracts/dbra.htm;
(iii) National Environmental Policy Act of 1969, 42 U.S.C. 4321 et
seq., https://www.epa.gov/nepa;
(iv) Floodplain Management, Executive Order 11988, 42 FR 26951, May
24, 1977, https://www.archives.gov/federal-register/codification/executive-order/11988.html;
(v) Archeological and Historic Preservation Act, 16 U.S.C. 469-
469c, https://www.nps.gov/archeology/tools/laws/ahpa.htm;
(vi) Clean Air Act, 42 U.S.C. 7401 et seq., https://www.epa.gov/clean-air-act-overview;
(vii) Clean Water Act, 33 U.S.C. 1251 et seq., https://www.epa.gov/aboutepa/about-office-water;
(viii) Coastal Barrier Resources Act, 16 U.S.C. 3501 et seq.,
https://www.fws.gov/ecological-services/habitat-conservation/cbra/Act/index.html;
(ix) Coastal Zone Management Act, 16 U.S.C. 1451 et seq., https://coast.noaa.gov/czm/about/;
(x) Endangered Species Act, 16 U.S.C. 1531 et seq., https://www.fws.gov/endangered/;
(xi) Federal Actions to Address Environmental Justice in Minority
Populations and Low-Income Populations, Executive Order 12898, 59 FR
7629, February 16, 1994, https://www.archives.gov/files/federal-register/executive-orders/pdf/12898.pdf;
(xii) Protection of Wetlands, Executive Order 11990, 42 FR 26961,
May 25, 1977, as amended by Executive Order 12608, 52 FR 34617,
September 14, 1987, https://www.epa.gov/cwa-404;
(xiii) Farmland Protection Policy Act, 7 U.S.C. 4201 et seq.,
https://www.nrcs.usda.gov/wps/portal/nrcs/detail/?cid=nrcs143_008275;
(xiv) Fish and Wildlife Coordination Act, 16 U.S.C. 661-666c, as
amended, https://www.fws.gov/;
(xv) Magnuson-Stevens Fishery Conservation and Management Act, 16
U.S.C. 1801 et seq., https://www.fisheries.noaa.gov/resource/document/magnuson-stevens-fishery-conservation-and-management-act;
(xvi) National Historic Preservation Act, 16 U.S.C. 470 et seq.,
https://www.nps.gov/archeology/tools/laws/NHPA.htm;
(xvii) Safe Drinking Water Act, 42 U.S.C. 300f et seq., https://www.epa.gov/ground-water-and-drinking-water;
(xviii) Wild and Scenic Rivers Act, 16 U.S.C. 1271 et seq., https://rivers.gov/;
(xix) Debarment and Suspension, Executive Order 12549, 51 FR 6370,
February 18, 1986, https://www.archives.gov/federal-register/codification/executive-order/12549.html;
(xx) Demonstration Cities and Metropolitan Development Act, 42
U.S.C. 3301 et seq., as amended, and Executive Order 12372, 47 FR
30959, July 14, 1982, http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning;
(xxii) New Restrictions on Lobbying, 31 U.S.C. 1352, https://www.epa.gov/grants/lobbying-and-litigation-information-federal-grants-cooperative-agreements-contracts-and-loans;
(xxiii) Prohibitions relating to violations of the Clean Water Act
or Clean Air Act with respect to Federal contracts, grants, or loans
under 42 U.S.C. 7606 and 33 U.S.C. 1368, and Executive Order 11738, 38
FR 25161, September 12, 1973, https://www.archives.gov/federal-register/codification/executive-order/11738.html;
(xxiv) The Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970, 42 U.S.C. 4601 et seq., https://www.gpo.gov/fdsys/pkg/FR-2005-01-04/pdf/05-6.pdf;
(xxv) Age Discrimination Act, 42 U.S.C. 6101 et seq., https://www.eeoc.gov/laws/statutes/adea.cfm;
(xxvi) Equal Employment Opportunity, Executive Order 11246, 30 FR
12319, September 28, 1965, https://www.dol.gov/ofccp/regs/compliance/ca_11246.htm;
(xxvii) Section 13 of the Clean Water Act, Public Law 92-500,
codified in 42 U.S.C. 1251, https://www.epa.gov/ocr/external-civil-rights-compliance-office-title-vi;
(xxviii) Section 504 of the Rehabilitation Act, 29 U.S.C. 794,
supplemented by Executive Orders 11914, 41 FR 17871, April 29, 1976 and
11250, 30 FR 13003, October 13, 1965, https://www.epa.gov/ocr/external-civil-rights-compliance-office-title-vi;
(xxix) Title VI of the Civil Rights Act of 1964, 42 U.S.C. 2000d et
seq., https://
[[Page 13660]]
www.epa.gov/environmentaljustice/title-vi-and-environmental-justice;
and
(xxx) Participation by Disadvantaged Business Enterprises in
Procurement under the Environmental Protection Agency statFinancial
Assistance Agreements, 73 FR 15904, March 26, 2008, https://www.epa.gov/resources-small-businesses.
Detailed information about some of these requirements is outlined
in the WIFIA program handbook. Further information can be found at the
links above.
IV. Types of Credit Assistance
Under WIFIA, the EPA is permitted to provide credit assistance in
the form of secured (direct) loans or loan guarantees. The maximum
amount of WIFIA credit assistance to a project is 49 percent of
eligible project costs. Each prospective borrower should list the
estimated total capital costs of the project, broken down by activity
type and differentiating between eligible project costs and ineligible
project costs in the LOI and application.
V. Letters of Interest and Applications
Each prospective borrower will be required to submit a LOI and, if
invited, an application to the EPA in order to be considered for
approval. This section describes the LOI submission and application
submission.
A. Letter of Interest (LOI)
Prospective borrowers seeking a WIFIA loan must submit a LOI
describing the project fundamentals and addressing the WIFIA selection
criteria.
The primary purpose of the LOI is to provide adequate information
to the EPA to: (i) Validate the eligibility of the prospective borrower
and the prospective project, (ii) perform a preliminary
creditworthiness assessment, (iii) perform a preliminary engineering
feasibility assessment, and (iv) evaluate the project against the
selection criteria. Based on its review of the information provided in
the LOI, the EPA will invite prospective borrowers to submit
applications for their projects. Prospective borrowers are encouraged
to review the WIFIA program handbook to help create the best
justification possible for the project and a cohesive and comprehensive
LOI submittal.
Prospective borrowers are encouraged to utilize the LOI form on the
WIFIA website and ensure that sufficient detail about the project is
provided for the EPA's review. The EPA will notify a prospective
borrower if its project is deemed ineligible as described in Section
III of this NOFA.
Below is guidance on what should be included in the LOI.
A. Prospective Borrower Information. In this section, the
prospective borrower describes the entity seeking WIFIA assistance,
including its legal name, address, website, Dun and Bradstreet Data
Universal Number System (DUNS) number, and employer/taxpayer
identification number.
In the case of a project that is undertaken by an entity that is
not a state or local government or an agency or instrumentality of a
state or local government, or a tribal government or consortium of
tribal governments, the project that the entity is undertaking must be
publicly sponsored. Public sponsorship means that the prospective
borrower can demonstrate, to the satisfaction of the EPA, that it has
consulted with the affected state, local, or tribal government in which
the project is located, or is otherwise affected by the project, and
that such government supports the proposed project. A prospective
borrower can show support by including a certified letter signed by the
approving state, tribal, or municipal department or similar agency;
governor, mayor or other similar designated authority; statute or local
ordinance, or any other means by which government approval can be
evidenced.
B. Project Plan. In this section, the prospective borrower provides
a general description of the project, including its location,
population served, permit number(s), purpose, design features, and
development schedule. The prospective borrower describes how the
project can be categorized as one of the project types eligible for
WIFIA assistance as described in the program handbook. The prospective
borrower includes other relevant information that could affect the
development of the project, such as community support, pending
legislation, or litigation. In this section, the prospective borrower
summarizes the status of the project's environmental review,
engineering report, operations and maintenance agreements, and other
approvals or analyses that are integral to the project's development.
C. Financing Plan. In this section, the prospective borrower
indicates the requested type and amount of WIFIA credit assistance. In
addition, the prospective borrower details the proposed sources and
uses of funds for the project. The discussion of proposed financing
should identify the source(s) of revenue or other security that would
be pledged to the WIFIA assistance. As part of the description of its
financial condition, the prospective borrower should include its year-
end audited financial statements for the past three years, as
available. Additionally, the prospective borrower describes the credit
characteristics of the project and how the senior obligations of the
project will achieve an investment-grade rating, as well as the
anticipated rating on the WIFIA instrument. The prospective borrower
should also include a summary financial pro forma, presented in a
formula-based Microsoft Excel document, as well as revenue and expense
projections for at least ten years.
D. Selection Criteria. In this section, the prospective borrower
describes the potential policy benefits achieved using WIFIA assistance
with respect to each of the WIFIA program selection criteria. These
criteria and their weights are enumerated in Section VII of this NOFA
and further explained in the WIFIA program handbook.
E. Contact Information. In this section, the prospective borrower
identifies the point of contact with whom the WIFIA program should
communicate regarding the LOI. To complete the EPA's evaluation, the
WIFIA program staff may contact a prospective borrower regarding
specific information in the LOI.
F. Certifications. In this section, the prospective borrower
certifies that it will abide by all applicable laws and regulations,
including NEPA, the Federal Water Pollution Control Act, the American
Iron and Steel requirements, and federal labor standards, among others,
if selected to receive funding.
G. SRF Notification. In this section, the prospective borrower
acknowledges that the EPA will notify the state infrastructure
financing authority in the state in which the project is located that
it submitted a LOI and provide the submitted LOI and source documents
to that authority. The prospective borrower may opt out of having its
LOI and source documents shared.
B. Application
After the EPA concludes its evaluation of the LOIs, a selection
committee will invite prospective borrowers to apply based on the
scoring of the selection criteria, while taking into consideration
geographic and project diversity. The selection committee may choose to
combine multiple LOIs or separate projects from a prospective borrower
based on the creditworthiness review and may offer less WIFIA
assistance than requested in the LOI.
An invitation to apply for WIFIA credit assistance does not
guarantee the EPA's approval, which remains subject to a project's
continued eligibility,
[[Page 13661]]
including creditworthiness, the successful negotiation of terms
acceptable to the EPA, and the availability of funds at the time at
which all necessary recommendations and evaluations have been
completed. However, the purpose of the EPA's LOI review is to pre-
screen prospective borrowers to the extent practicable. It is expected
that the EPA will only invite projects to apply if it anticipates that
those projects are able to obtain WIFIA credit assistance. Detailed
information needs for the application are listed in the application
form and described in the WIFIA program handbook.
VI. Fees
There is no fee to submit a LOI. The final fee rule, Fees for Water
Infrastructure Project Applications under WIFIA, 40 CFR 35.10080, was
signed by the EPA on June 19, 2017, and establishes the fees related to
the provision of federal credit assistance under WIFIA. Each invited
applicant must submit, concurrent with its application, a non-
refundable Application Fee of $25,000 for projects serving communities
of not more than 25,000 individuals or $100,000 for all other projects.
Applications will not be evaluated until the Application Fee is paid.
For successful applicants, this fee will be credited toward final
payment of a Credit Processing Fee, assessed following financial close,
to reimburse the EPA for actual engineering, financial, and legal
costs. In the event a final credit agreement is not executed, the
borrower is still required to reimburse the EPA for the costs incurred.
Borrowers may finance these fees with WIFIA credit assistance.
VII. Selection Criteria
This section specifies the criteria and process that the EPA will
use to evaluate LOIs and award applications for WIFIA assistance.
The selection criteria described below incorporate statutory
eligibility requirements, supplemented by the WIFIA regulations at 40
CFR 35.10055. The EPA has also identified the following strategic
objectives as priorities for this LOI submittal period:
(i) Readiness to proceed: In order to ensure the efficient use of
limited federal resources for infrastructure finance, a project's
readiness to proceed toward development, including loan closing and the
commencement of construction, is an Agency priority.
(ii) Provide for clean and safe drinking water: The EPA is working
to strengthen its implementation of the Safe Drinking Water Act to
ensure we protect and build upon the enormous public health benefits
achieved through the provision of safe drinking water throughout the
country. One of the Agency's highest priorities include reducing
exposure to lead and addressing emerging contaminants, including per-
and polyfluoroalkyl substances (PFAS), in the nation's drinking water
systems.
(iii) Repair, rehabilitate, and replace aging infrastructure and
conveyance systems: Many communities face formidable challenges in
providing adequate and reliable water and wastewater infrastructure
services. Existing water and wastewater infrastructure in some of these
communities is aging, and investment is not always keeping up with the
needs. The EPA estimates the national funding need for capital
improvements for such facilities totals approximately $740 billion over
the next 20 years. In many cases, meeting these needs will require
significant increases in capital investment.
(iv) Water reuse and recycling: The EPA is highlighting water reuse
and recycling as a new or innovative approach. The EPA recognizes that
reuse and recycling of water can play a critical role in helping
states, tribes, and communities meet their future drinking water needs
with a diversified portfolio of water sources. The practice can
alleviate the effects of drought and assure groundwater resource
sustainability and a secure water supply.
The EPA's priorities reflect water sector challenges that require
innovative tools to assist municipalities in managing and adapting to
our most pressing public health and environmental challenges. These
priorities are reflected in the scoring methodology of the selection
criteria below, described in greater detail in the WIFIA program
handbook.
The WIFIA selection criteria are divided into three categories that
represent critical considerations for selecting projects: Project
Impact, Project Readiness, and Borrower Creditworthiness. Each
criterion within a category can provide a range of points with the
maximum number of points indicated. Each category can provide up to 100
points out of a total of 300 available points, and the category-
specific and overall scores will help inform the selection committee's
deliberations within the overall WIFIA framework. For the Project
Readiness and Borrower Creditworthiness categories, criteria scores are
supplemented by points awarded from the preliminary engineering
feasibility analysis and preliminary creditworthiness assessment,
respectively, described in the WIFIA program handbook. In order to
reflect the EPA's priorities and give greater consideration to a class
of projects that reduce exposure to lead and address emerging
contaminants, including PFAS, in the nation's drinking water systems,
the EPA has added a criterion (ix) to the Project Impact category of
criteria in accordance with 40 CFR 35.10055(b). The criteria are as
follows:
Project Impact:
(i) 15 points: The extent to which the project is nationally or
regionally significant, with respect to the generation of economic and
public benefits, such as (1) the reduction of flood risk; (2) the
improvement of water quality and quantity, including aquifer recharge;
(3) the protection of drinking water, including source water
protection; and (4) the support of international commerce. 33 U.S.C.
3907(b)(2)(A); 40 CFR 35.10055(a)(1).
(ii) 5 points: The extent to which the project (1) protects against
extreme weather events, such as floods or hurricanes; or (2) helps
maintain or protect the environment: 33 U.S.C. 3907(b)(2)(F); 40 CFR
35.10055(a)(4); 40 CFR 35.10055(a)(5).
(iii) 5 points: The extent to which the project serves regions with
significant energy exploration, development, or production areas: 33
U.S.C. 3907(b)(2)(G); 40 CFR 35.10055(a)(6).
(iv) 10 points: The extent to which a project serves regions with
significant water resource challenges, including the need to address:
(1) water quality concerns in areas of regional, national, or
international significance; (2) water quantity concerns related to
groundwater, surface water, or other water sources; (3) significant
flood risk; (4) water resource challenges identified in existing
regional, state, or multistate agreements; or (5) water resources with
exceptional recreational value or ecological importance. 33 U.S.C.
3907(b)(2)(H); 40 CFR 35.10055(a)(7).
(v) 10 points: The extent to which the project addresses identified
municipal, state, or regional priorities. 33 U.S.C. 3907(b)(2)(I); 40
CFR 35.10055(a)(8).
(vi) 25 points: The extent to which the project addresses needs for
repair, rehabilitation or replacement of a treatment works, community
water system, or aging water distribution or wastewater collection
system. 40 CFR 35.10055(a)(12).
(vii) 10 points: The extent to which the project serves
economically stressed communities, or pockets of economically stressed
rate payers within otherwise non-economically
[[Page 13662]]
stressed communities. 40 CFR 35.10055(a)(13).
(viii) 20 points: The extent to which the project reduces exposure
to lead in the nation's drinking water systems or addresses emergent
contaminants. 40 CFR 35.10055(b).
Project Readiness:
(i) 50 points: The readiness of the project to proceed toward
development, including a demonstration by the obligor that there is a
reasonable expectation that the contracting process for construction of
the project can commence by not later than 90 days after the date on
which a federal credit instrument is obligated for the project under
[WIFIA]. 33 U.S.C. 3907(b)(2)(J); 40 CFR 35.10055(a)(9).
(ii) 30 points: Preliminary engineering feasibility analysis score.
33 U.S.C. 3907(a)(2); 33 U.S.C. 3907(a)(6); 40 CFR 35.10015(c); 40 CFR
35.10045(a).
(iii) 20 points: The extent to which the project uses new or
innovative approaches. 33 U.S.C. 3907(b)(2)(D); 40 CFR 35.10055(a)(3).
Borrower Creditworthiness:
(i) 10 points: The likelihood that assistance under [WIFIA] would
enable the project to proceed at an earlier date than the project would
otherwise be able to proceed. 33 U.S.C. 3907(b)(2)(C); 40 CFR
35.10055(a)(2).
(ii) 10 points: The extent to which the project financing plan
includes public or private financing in addition to assistance under
[WIFIA]. 33 U.S.C. 3907(b)(2)(B); 40 CFR 35.10055(a)(10).
(iii) 10 points: The extent to which assistance under [WIFIA]
reduces the contribution of Federal assistance to the project. 33
U.S.C. 3907(b)(2)(K); 40 CFR 35.10055(a)(11).
(iv) 10 points: The amount of budget authority required to fund the
Federal credit instrument made available under [WIFIA]. 33 U.S.C.
3907(b)(2)(E).
(v) 60 points: Preliminary creditworthiness assessment score. 33
U.S.C. 3907(a)(1); 40 CFR 35.10015(c); 40 CFR 35.10045(a)(1); 40 CFR
35.10045(a)(4); 40 CFR 35.10045(b).
In addition to the selection criteria score, the EPA is required by
33 U.S.C. 3902(a) to ``ensure a diversity of project types and
geographical locations.''
Following analysis by the WIFIA program staff, a final score is
calculated for each project. Projects will be selected in order of
score, subject to the requirement to ensure a diversity of project
types and geographical locations. To ensure diversity, the EPA will
establish a ceiling for each project type and geographical location.
The EPA will select projects in rank order up until the point that the
ceiling is reached. Thereafter, the next highest project that adds
diversity will be selected.
The scoring scales and guidance used to evaluate each project
against the selection criteria are available in the WIFIA program
handbook. Prospective borrowers considering WIFIA should review the
WIFIA program handbook and discuss how the project addresses each of
the selection criteria in the LOI submission.
Authority: 33 U.S.C. 3901-3914; 40 CFR part 35.
Dated: March 29, 2019.
Andrew R. Wheeler,
Administrator.
[FR Doc. 2019-06731 Filed 4-4-19; 8:45 am]
BILLING CODE 6560-50-P