In the state of Florida, 90% of drinking water comes from groundwater in the Floridan aquifer. However, due to growing populations, increasing water demand, and the declining health of natural systems, it is estimated that aquifer depletion will cause a water shortage in Florida by the year 2035.

Polk Regional Water Cooperative

To address the anticipated water shortage in Polk County, Florida, 16 local governments have come together to create the Polk Regional Water Cooperative (PRWC). The cooperative has launched the Alternative Water Supply Program to provide a steady water source in central Florida and ease the burden on the Upper Floridan Aquifer, lakes, and wetlands through the engineering design and construction of two new water production facilities and a water distribution system. These facilities purify salt water from the Lower Floridan Aquifer via reverse osmosis water treatment. Upon completion, these projects will provide 10 million gallons of alternative water supply each day, with the potential to expand to 22.5 million gallons per day, and benefit over 637,000 people in the area.

Our team has been supporting PRWC’s Alternative Water Supply Program for five years, and recently, we helped them receive a highly competitive $305-million loan in Water Infrastructure Finance and Innovation Act (WIFIA) funding. The WIFIA program is run through the U.S. Environmental Protection Agency and helps to accelerate the nation’s water infrastructure investments by providing long-term, low-cost supplemental credit assistance for regionally and nationally significant projects. This loan saves the cooperative approximately $178 million in financing costs. However, this loan is only one part of a larger project story, which our team is proud to have supported from the very beginning.

The cooperative has launched the Alternative Water Supply Program to provide a steady water source in central Florida and ease the burden on the Upper Floridan Aquifer, lakes, and wetlands through the engineering design and construction of two new water production facilities and a water distribution system." Robert Beltran and Amy Tracy

Developing a Funding Plan

Our team joined the PRWC in its grassroots phase, and as the cooperative quickly grew, it was evident that funds, particularly some kind of loan, would be needed to support its initiatives. The PRWC first received a Clean Water State Revolving Fund (CWSRF) loan through the Florida Department of Environmental Protection and a grant from the water management district, which allowed our team to begin planning for the new facilities.

Shortly after, our team was responsible for supporting the funding work group that was established as a part of the PRWC. We facilitated collaborative discussion among government members to identify individual funding opportunities, the requirements of each, and how they worked together with other funding opportunities. Additionally, in our role as the engineering design firm, we helped to determine the scope of the project and what funds would be necessary to achieve its completion and subsequent maintenance and operations.

Finding the Right Funding Fit

As part of our role in the funding working group, we also explored options beyond traditional loans like public-private partnerships. Through our discussions, we determined the WIFIA loan, in addition to other grant sources,  was the best choice for the communities of the PRWC, which included representatives from larger and smaller regions.

With this defined goal, our team began consolidating the information needed for the WIFIA submission, including manuals, references, project plans, rate sheets, and a financial pro forma. We also attended a funding workshop in Atlanta, Georgia, to learn more about the process.

At the workshop we met with staff from the WIFIA program who encouraged us to send our loan submission, which was eventually accepted.

As we reflect on all the work that has gone into supporting the PRWC, the WIFIA loan feels like only a small step. Design, land acquisition, and deliverable milestones occurred in tandem with our work on the loan—which all worked to provide our team and the PRWC with a strong understanding of our task at hand, while building a stronger partnership with all contributing members. We look forward to continuing to support this cooperative and providing a reliable water source to communities in central Florida.