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EPA will charge fees for financial assistance to water infrastructure projects
Kirill Abbakumov   on Wednesday, August 9, 2017 at 8:00:00 am

On June 28, 2017, the Environmental Protection Agency (EPA) has published a final rule that establishes fees related to the provision of federal credit assistance under the Water Infrastructure Finance and Innovation Act of 2014 (WIFIA) in order to recover EPA’s cost of providing credit assistance to entities seeking to develop water infrastructure, as well as to cover the costs associated with the program.

WIFIA authorizes EPA to provide direct loans and loan guarantees to water infrastructure projects and to charge fees to recover all or a portion of the agency's cost of providing credit assistance and the costs of retaining expert firms, including financial, engineering, and legal services, in the field of municipal and project finance to assist in the underwriting and servicing of Federal credit instruments. This action applies to entities seeking credit assistance under the WIFIA program for the development and construction of a water infrastructure project.

EPA is establishing an application fee, credit processing fee, servicing fee, optional supplemental fee, and fee for extraordinary expenses to cover these costs to the extent not covered by congressional appropriations. To effectively administer the program, EPA will incur both internal administrative costs (staffing, program support contracts, and other costs) as well as the costs of retaining expert firms, including legal, engineering, and financial services, in the field of municipal and project finance, to assist in the underwriting of the federal credit instrument.

A detailed summary and breakdown of various fees can be found in the Federal Register.