On Friday, August 2, 2019, the Tualatin Valley Water District (TVWD) closed a long-term loan at 2.39%, which saves $138.4 million in financing costs for the construction of a water supply system that will reliably deliver high-quality water to the region by 2026. Customers will see the savings in the form of lower than anticipated rate increases. In 2017, rates were projected to increase by 8% to 10% per year through 2026. With WIFIA funding now in place, water rates are estimated to increase by less than 4% per year. TVWD’s current proposed rate increase is 3.6% per year effective November 1, 2019 and November 1, 2020. By 2026 when the new water supply is operational, a typical single-family residential customer who uses 5,236 gallons per month will be saving about $20 per month compared to what they would have paid without the WIFIA loan program.
The Willamette Water Supply System (WWSS) includes: intake facilities, over 30 miles of pipes, a water treatment plant, and two storage reservoirs to serve 400,000 residents and businesses in Washington County. The $1.3 billion system is being built to the highest seismic safety standard to recover quickly after a major earthquake. The investments in the system will provide reliable, quality drinking water for generations to come, and during construction the program is providing fuel for the local economy. The EPA estimates the program will create 4,168 jobs through substantial completion in 2026. To date, 96 percent of all WWSS expenditures, over $117.5 million, have been spent in the local economy.
“Receiving federal support is a testament to the merits and importance of adding an additional drinking water supply to the region,” said Bernice Bagnall, President of the TVWD Board of Commissioners. “The WIFIA loan saves our customers millions in repayment costs and the system construction is providing jobs for the local economy.” President Bagnall added, Oregon’s congressional delegation deserves our thanks for leading Congress to create the WIFIA program and for strongly supporting the Willamette Water Supply System. Through the initial partnership with the City of Hillsboro, the system design was developed based on a commitment to sharing costs. Additional partnerships with Washington County, local municipalities, regional and state agencies have resulted in savings, minimized disruptions and maximized investments for future generations.
The WIFIA program was created by Congress in 2014 with the leadership of Senators Jeff Merkley, Ron Wyden, and Representatives Suzanne Bonamici, Earl Blumenauer, Kurt Schrader, and Peter DeFazio to accelerate investments in the nation’s water and wastewater infrastructure by using a competitive process to provide low-cost supplemental credit assistance to creditworthy water and wastewater projects of national and regional significance. The WWSS was one of 39 projects selected from 62 letters of interest received in the 2018 round.
“The WWSS is a critical regional water project that will save Washington County residents money and help ensure that residents have access to clean, safe, and reliable water for generations to come—while also creating thousands of jobs in the process,” Senator Jeff Merkley said. “I created this program after hearing from Oregonians that water infrastructure is one of the top issues facing their communities. This program continues to be a great model for delivering results through local and federal collaboration without the need for additional tax dollars.”
The EPA has additional information available at: https://www.epa.gov/newsreleases/epa-announces-water-infrastructure-loans-tualatin-valley-water-district-and-city