The U.S. Environmental Protection Agency finalized a $40 million federal loan on June 5 to help South Sioux City, Nebraska, break away from a neighboring city’s sewer grid and build its own modern wastewater treatment system.
The money, delivered through the EPA’s Water Infrastructure Finance and Innovation Act (WIFIA) program, will cover more than 60% of the cost for the town’s Wastewater Treatment Facility Expansion Project. Local officials plan to use the cash to map out, design, and construct a system that processes wastewater right at home.
Right now, South Sioux City has to ship its raw sewage to a nearby municipality for processing. By handling its own waste, the city expects to slice daily operating costs. In an unusual twist for a small community, the new plant will also capture biogas from the sewage and sell it directly to a nearby natural gas company. The revenue from those gas sales will be used to shield local households from steep rate hikes. Because the federal program offers low interest rates and flexible payment windows, the EPA estimates the deal will save South Sioux City $15 million over the lifespan of the loan.
Federal, state, and local representatives gathered online for a virtual press conference to announce the finalization of the deal.
“Small and rural communities are the backbone of America, and it is a priority for EPA that they have access to clean, safe, and reliable drinking water and wastewater services,” said EPA Assistant Administrator for Water Jess Kramer. “Congratulations to South Sioux City, Nebraska for securing this $40 million WIFIA Loan! This is just the beginning of a partnership that will reduce water bills, improve quality of life, protect the Missouri River, and advance economic opportunity for the region.”
EPA Region 7 Administrator Jim Macy noted that the facility will allow the town of 14,000 residents to handle its own future growth. “This project will increase capacity and certainty around wastewater services and advance economic opportunities for northeast Nebraska,” Macy said. “Treating wastewater with a modern facility that can grow with the community means greater local control for households and businesses.”
Nebraska Governor Jim Pillen emphasized the massive impact that hidden infrastructure has on public safety and regional finances. “Water, and water infrastructure that ensures its quality, are critical to Nebraska’s prosperity. Wastewater sanitation stands out as one of the most transformative, lifesaving public health innovations in over a century,” Pillen said. “I am grateful for this tremendous investment by our federal partners and honored to be part of announcing these federal resources coming to our state.”
The funding marks a long-term goal for state lawmakers who have watched the small community struggle with sewage logistics for years.
“Securing these funds will allow South Sioux City to make needed upgrades and expand their wastewater treatment plant,” said Senator Pete Ricketts. “I have toured this facility. As Governor and now as Senator, I have supported South Sioux City’s efforts. This $40 million granted under the Water Infrastructure Finance and Innovation Act (WIFIA) is a continuation of that support.”
U.S. Congressman Adrian Smith pointed out how these massive industrial projects trickle down to everyday routines. “Infrastructure shapes our daily lives, and few elements are more vital than water systems. I appreciate the administration’s collaboration with South Sioux City on this project, which will bring lasting benefits to families, businesses, and the entire community,” Smith said.
For local leaders in South Sioux City, the loan ends a complicated planning phase and sets up actual construction.
“I am truly thankful for the cooperation of the federal government, State of Nebraska, and the City of South Sioux City in working together to provide a basic wastewater service for our existing and ever-expanding community,” said South Sioux City Mayor Rod Koch. “We are grateful for our partnership in seeing this to success.”
City Administrator Lance Hedquist echoed that sentiment, focusing on the rare alignment of three separate levels of government. “It is remarkable of what can be accomplished when federal, state, and local officials work together to solve a wastewater issue that affects so many citizens and industries,” Hedquist said. “Thanks to all for this outstanding unified effort.”
The WIFIA loan program has injected roughly $24 billion into water, sewage, and storm infrastructure across the United States since handing out its first loan in 2018. The EPA currently has about $11 billion left in standard WIFIA funds, along with another $3 billion reserved specifically for state-level infrastructure banks. Small or rural communities can qualify to have up to 80% of their water projects covered by the program.
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