Chicago to replace 30,000 lead pipes with $336 million WIFIA loan
(UI) — On Nov. 3, U.S. Environmental Protection Agency (EPA) Assistant Administrator for Water Radhika Fox announced a $336 million Water Infrastructure Finance and Innovation Act (WIFIA) loan to the City of Chicago. With help from this financing, the water department will replace up to 30,000 lead pipes that deliver water to homes across the city while creating an estimated 2,700 jobs.
The Administration announced this WIFIA loan at a lead service line removal site in Chicago, Illinois with U.S. Senator Dick Durbin, U.S. Senator Tammy Duckworth, Chicago Mayor Brandon Johnson, and additional community leaders and stakeholders.
The City of Chicago will use the WIFIA loan to assist with replacing lead service lines serving single family homes and small multi-unit buildings citywide whenever there is a leak or break on a lead line or when performing water and sewer main updates. Although Chicago’s water is in compliance with state and federal safety regulations, the City is committed to replacing all the legacy lead lines to help ensure that the water system is lead-free for generations to come.
“Nine of the top 10 Chicago zip codes with the largest percentages of high lead levels were neighborhoods with majority Black and Latinx residents, so I am committed to prioritizing these communities along with our child care centers, and addressing this long-standing danger in an equitable and cost-effective manner,” Chicago Mayor Brandon Johnson said.
The WIFIA loan will be distributed over three years at $112 million a year. By offering the city flexible loan terms, the City of Chicago will be able to maintain affordable water rates while replacing lead service lines.
Chicago currently offers five replacement programs. The Equity Program replaces lead service lines for income-qualified residents; the Homeowner-Initiated Program waives up to $5,000 in permit fees; the Daycare Program replaces lines for licensed daycares; the Leaks and Breaks Program will replace lead lines whenever there is a leak or break on a resident’s line; and the Block-Long Program replaces lines when water or sewer mains are updated.
Established by the Water Infrastructure Finance and Innovation Act of 2014, the WIFIA program is a federal loan program administered by EPA. The WIFIA program’s aim is to accelerate investment in the nation’s water infrastructure by providing long-term, low-cost supplemental credit assistance for regionally and nationally significant projects. The WIFIA program has an active pipeline of pending applications for projects that will result in billions of dollars in water infrastructure investment and thousands of jobs.
“Far too many generations have suffered the devastating effects of lead contamination, with its most tragic consequences visited upon our children,” said U.S. Senator Dick Durbin. “The removal of lead pipes in Chicago is not just an investment in our infrastructure; it’s an investment in the future of our city, the well-being of our residents, and the foundation for a healthier, more equitable society.”
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