The U.S. Environmental Protection Agency has approved a $40 million Water Infrastructure Finance and Innovation Act (WIFIA) loan for South Sioux City, Nebraska, to fund upgrades and expansions to its wastewater treatment infrastructure.
The city, which currently transports its wastewater to a neighboring city for treatment, will use the financing to plan, design, and construct its own wastewater treatment facility. The project is expected to lower operating costs over time and give the city greater control over its wastewater services. As part of the project, South Sioux City also plans to collect and sell biogas to a nearby natural gas facility, generating revenue that will help offset rate increases for residents and businesses.
With a population of roughly 14,000, South Sioux City was able to finance more than 60% of total project costs through the WIFIA loan. The program's flexible repayment terms allow the city to spread payments gradually over time, reducing the financial impact on wastewater bills. According to the EPA, the loan is projected to save the city $15 million over its lifetime.
Federal, state, and local officials expressed support for the project, noting its potential benefits for public health, economic development, and environmental protection, particularly for the Missouri River.
Since issuing its first loan in 2018, the WIFIA program has announced approximately $24 billion in financing for water infrastructure projects nationwide, supporting more than 170,000 jobs. The EPA says it currently has around $11 billion in financing available for additional projects, with up to 80% financing available for small and rural communities. The agency is accepting letters of interest for both WIFIA and State WIFIA funding.
