CITY OF Charlie Hales, Mayor Amanda Fritz, Commissioner PORTLAND, OREGON Nick Fish, Commissioner Dan Saltzman, Commissioner Steve Novick, Commissioner AprilS, 2014 The Honorable Barbara Boxer The Honorable Bill Shuster Chairwoman Chairman Committee on Environment & Public Works Committee on Transportation & Infrastructure 410 Dirksen Senate Office Building 2165 Rayburn House Office Building Washington, DC 20510 Washington, DC 20515 RE: Support for the Water Infrastructure Finance & Innovation Act Dear Chairwoman Boxer and Chairman Shuster: The City of Portland writes to express its strong support for your efforts to include the Water Infrastructure Finance & Innovation Act (WIFIA) pilot program within the final legislation of the Water Resources Development Act (WRDA). As you know, WIFIA was introduced by Oregon Senator Jeff Merkley as a new federal funding opportunity to provide low-interest loans for major water and wastewater infrastructure projects. The program, modeled after the successful Transportation Infrastructure Financing and Innovation Act (TIFIA), would leverage $50 million in annual appropriations over fiveyears. The approach leverages federal funding to give local agencies access to more affordable financing for infrastructure projects that meet needs of communities large and small while generating jobs. The WIFIA approach is highly cost-effective, without being a burden on federal taxpayers. While the City of Portland already benefits from borrowing rates comparably lower than most of our peers in the state, this bill would create additional options for all utilities that could not otherwise borrow or obtain enough financing through state revolving loan funds (SRF). The program could also provide savings for those who can only access the more expensive private markets. This would result in better drinking water systems regionally, and would provide Portland with additional capital financing tools. WIFIA helps preserve existing SRF programs by providing a new source of funding for large­ scale projects over $20 million. This would appropriately target additional financing tools to larger utilities. Also, smaller utilities could participate, either teaming with coalitions on their own, or through applications made directly by states to be distributed through the SRF. It is important to emphasize that WIFIA is intended to complement existing SRF programs, not compete with them. Lastly, WIFIA provides critical funding for aging infrastructure. SRFs are intended to support compliance and health protection, but there is a significant and critical need to replace and · upgrade aging infrastructure. The American Water Works Association estimates that $1 trillion is needed over the next 25 years to replace and expand aging water infrastructure nationwide. WIFIA will provide a mechanism to begin to address these critical needs. · We believe this approach makes sense, and we respectfully request that a robust WIFIA pilot program be made part of the final WRDA legislation. Thank you for your consideration. Sincerely, &u-·ffi- Charlie Hales Amanda Fritz Nick Fish Mayor Commissioner Commissioner 1}\l() Dan Saltzman Steve Novick Commissioner Commissioner cc: Senator JeffMerkley .