EPA approves $40 million WIFIA loan for South Sioux City wastewater expansion
The U.S. Environmental Protection Agency has approved a $40 million Water Infrastructure Finance and Innovation Act (WIFIA) loan to support major upgrades and expansion work at South Sioux City’s wastewater treatment facility, a project aimed at increasing treatment capacity, improving operational reliability and supporting future economic growth.
The project will allow the city to treat wastewater locally rather than transporting flows to a neighboring community for treatment. Planned improvements include the design and construction of expanded treatment systems intended to reduce long-term operating costs while protecting the Missouri River and surrounding waterways.
EPA officials said the project highlights the importance of water infrastructure investment in smaller communities. “Small and rural communities are the backbone of America, and it is a priority for EPA that they have access to clean, safe, and reliable drinking water and wastewater services,” said EPA Assistant Administrator for Water Jess Kramer in a press release.
The city also plans to collect and sell biogas generated at the facility to a nearby natural gas operation, creating a potential revenue stream to help offset future rate increases for customers.
South Sioux City Mayor Rod Koch said the investment will help meet the needs of the community’s continued growth. “I am truly thankful for the cooperation of the federal government, State of Nebraska, and the City of South Sioux City in working together to provide a basic wastewater service for our existing and ever-expanding community,” Koch said.
According to EPA, the WIFIA loan will finance more than 60% of the project’s total costs for the community of approximately 14,000 residents. The agency estimates the low-interest financing will save the city roughly $15 million over the life of the loan.
Since launching in 2018, EPA’s WIFIA program has announced more than $24 billion in financing for drinking water, wastewater and stormwater infrastructure projects nationwide.