1. AASHTO – Standing committee on water transportation: Arkansas waterways commission
Deidre smith, director
February 27, 2018

2. WATER INFRASTRUCTURE FINANCE & INNOVATION ACT (WIFIA)
BACKGROUND
• Passed as part of Water Resources Reform and Development Act (WRRDA) of 2014
EPA Implemented Guidelines for Investment in the Nation’s Water and Wastewater Infrastructure
• Congress appropriated $25 million for credit subsidy for FY 2017 which allowed EPA to select its first 12 projects
Provides Long-term, Low-cost, Supplemental Credit Assistance Loans
$25 Million in Appropriations
$2.3 Billion in Loans
$5.1 Billion in Infrastructure Investment
Leverages federal funding since Congress only needs to appropriate money to cover estimated losses and the remainder of the funding is borrowed from and repaid to Treasury
A small amount of federal funds can support a larger amount of infrastructure investment

3. Eligibility $5 Million $20 Million Eligible Borrowers:
Eligible Project Size:
Loan Scope:
Minimum for Small Communities
$5 Million
Minimum for Large Communities
$20 Million
A project consists of all construction necessary to complete the building or work regardless of the number of contracts or assistance agreements involved
All contracts and assistance agreements awarded must be closely related in purpose, time and place
Generally, must involve new construction or work
WIFIA can fund a combination of projects through each loan, given the projects: o Share a common security pledge o Serve a common purpose
Have similar construction time frames
Local, state, tribal and federal government entities
Partnerships and joint ventures
Corporations and trusts

4. CREDIT TERMS CREDIT WORTHINESS Criteria that will be examined:
Projects applying for WIFIA loans must be creditworthy and demonstrate a reasonable assurance of repayment of the loan over the term of the loan
5 Years = Maximum time that repayment may be deferred after substantial completion of the project
35 Years = Maximum final maturity date from substantial completion
49% = Maximum portion of eligible project costs that WIFIA can fund
Interest rate will be equal to or greater than the U.S. Treasury rate of a similar maturity
Projects must be creditworthy
Criteria that will be examined:
The terms, conditions, financial structure and security features of the proposed financing
The dedicated revenue source that will secure or fund the project obligation
The financial assumptions upon which the project is based
The financial soundness, credit history, and outlook of the prospective borrower

5. Steps needed USACE AASHTO / SCOWT CONGRESS INDUSTRY STATE LEGISLATION
Develop Implementation Guidelines
Compile a list of 30 projects from various states having waterborne commerce that may utilize WIFIA.
WRDA: Extend the Water Infrastructure Finance Innovation Act (WIFIA) past 2019 or make permanent
Decide if they want to assess a fee on shipments or use an existing tax for repayment purposes.
Create a coalition or group comprised of state or other public entities and private industries to apply for loan and oversee the collection and disbursement of monies collected.
Create the legislative authority of the coalition or group comprised of state or other public entities and private industries to accept state funding when/if available.
Administer the WIFIA Loan Program
Create By-Laws / Rules / Policies concerning coalition or group and vote on Officers to oversee account.
Appropriate funds for the WIFIA Program

6. How can you help? Contact your Congressional Delegates:
Support WIFIA language in WRDA 2018 to make permanent or extend current Bill
Secure Appropriations for WIFIA Funding
AASHTO Standing Committee on Water Transportation
Send a list of projects that could be eligible for WIFIA Financing
Include project scope and approximate $ of project
Educate stakeholders and industry leaders
Federal funding is not keeping up with demand
Fix as fails is becoming failure to fix
Deidre Smith (501) or (501)