Private Sector Companies Eligible For Water Reuse Funding
By Sara Jerome,
@sarmje
It is easier than ever for private companies to finance water reuse projects, according to white paper released by the WateReuse Association.
The Water Resources Reform and Development Act of 2014 enables private sector companies to obtain government loans to try industrial water reuse projects, according to the white paper by the association, a non-profit working to promote sustainable water practices.
Previously, it had been difficult for private sector companies to get access to this kind of funding.
"While public water utilities have long had access to government subsidized financing through the Clean Water State Revolving Fund (CWSRF), industries have had to finance their industrial water treatment and reuse systems primarily through a combination of commercial loans and the issuance of corporate bonds," the report said.
Compared to public utilities, the private sector had been at a "distinct disadvantage" when it came to financing water reuse projects, according to the white paper. The legislation helps "level the playing field" between the private and public sector, the white paper said.
There are a few things borrowers should know before they pursue financing, according to the white paper.
"Before approaching a state CWSRF program, potential borrowers should come prepared with an understanding of how the program works. Borrowers should keep in mind that while there are federally mandated requirements that all states must adhere to, each state program may have additional policies that potential borrowers must follow in order to receive funding," the white paper said.
President Obama signed the WRRDA in June. "This bill will help towns and cities improve their commerce, but it’s also going to help them prepare for the effects of climate change — storms, floods, droughts, rising sea levels — creating more adaptability, more resilience in these communities," he said at the time.
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