WASHINGTON (April 28, 2020) — The US Environmental Agency (EPA) announced today a $192.2 million Water Infrastructure and Innovation Act (WIFIA) loan to Seattle Public Utilities in Washington State to help finance the Ship Canal Water Quality Project. This project will reduce combined sewer overflows to support public health, ecosystems, and the economy in the Seattle metropolitan area.

The Ship Canal Water Quality Project will build a storage tunnel to reduce the number and volume of combined sewer overflows that enter the Lake Washington Ship Canal from Ballard, Fremont, Wallingford, and Queen Anne. The project includes a 29 million-gallon storage tunnel, six structures to divert combined sewage away from existing outfalls into the tunnel, five drop structures to move combined sewage into the storage tunnel, and odor control systems.

“This loan helps us meet our commitments to protect local water bodies and public health,” said Mami Hara, General Manager, Seattle Public Utilities. “The project will keep 75 million gallons of polluted stormwater and sewage out of the Lake Washington Ship Canal, Salmon Bay, and Lake Union each year. The WIFIA loan also supports our goals of providing more affordable services by saving an estimated $66 million in financing costs over traditional bond funding.”

The Ship Canal Water Quality Project’s eligible construction costs are $561 million. EPA’s WIFIA loan will finance a portion of that figure—up to $192.2 million. Additionally, the Washington Department of Ecology’s Clean Water State Revolving Fund will provide a $25 million loan toward the project. Construction and operation are expected to create nearly 1,300 jobs.

This is the second WIFIA loan closing in Washington state and both loans are supporting this important project. Seattle Public Utilities is the owner and operator for the project pursuant to a Joint Project Agreement with King County. WIFIA is also currently working with King County, a repeat borrower, to provide financing for their portion of this project.

For more information about the WIFIA program, visit www.epa.gov/wifia.