We're Investing in our Water Future and Reducing Costs with WIFIA Loans
We secured two low-cost WIFIA loans from the Environmental Protection Agency (EPA)to help finance important and necessary improvements to Portland’s water system, including improved corrosion control, a new filtration facility, and related pipelines.
The WIFIA program was created by Oregon Senator Jeff Merkley, passed by Congress in 2014, and officially launched in 2017. The program is designed to speed investment in water infrastructure by providing low-cost loans for nationally and regionally significant projects like the Bull Run Treatment Projects.
WIFIA Loans Have a Low, Fixed Interest Rate
- Based on rate projections, the WIFIA loans will save Portland ratepayers at least $387 million of repayment costs over the loan terms.
- Our first WIFIA loan has a 1.89% interest rate that will remain locked in for the life of the loan. Our second WIFIA loan has a 4.49% interest rate.
WIFIA Loans Give Us Flexible Financing
- WIFIA offers a flexible repayment schedule that will allow water rate increases to be phased in over a longer period of time.
- We have up to 35 years after substantial completion of the project to repay the loans, saving ratepayers money by allowing for smaller payment amounts over the life of the loan.
- The EPA will allow delaying loan repayment until after the filtration facility is substantially completed in 2027.
- Payments on the loans will not need to begin until after ratepayers are already getting the benefits of the new facilities
WIFIA Loans Help Create Jobs
- The Bull Run Treatment Projects are expected to create 4,700 to 7,500 direct construction jobs.
- Construction contracts will include both contracting and workforce equity commitments.
- Construction contracts will promote training and work opportunities for minorities and women in the construction industry.
WIFIA Loan Amounts
- The WIFIA loans cover up to 49 percent of eligible project costs
- The total allowable WIFIA loan amount includes the direct program budgets for improved corrosion control ($21 million) and the filtration facility and pipelines ($1,941 million).
Other eligible costs include inflation, indirect costs, bond reserves and interest costs, and a contingency amount
Financial Assistance Program
We will continue to assist those who struggle to afford their bill through the expanded low-income assistance program. If you’re having trouble affording your bill, our Financial Assistance program may be able to help.
Learn more about rate affordability and these important long-term investments
Bull Run Treatment Projects
We are making two important improvements to our water supply from Bull Run to help keep our water safe and abundant for generations to come. Improved Corrosion Control Treatment was brought online in 2022 to further adjust the chemistry of our water and help reduce potential levels of lead at the tap. Bull Run Filtration will be in operation in 2027 and will remove the microorganism Cryptosporidium and other potential contaminants from our water. Both projects are required under state and federal law.