Council member proposes EPA-backed financing for biosolids digester projects

Honolulu City Council members are exploring innovative funding options to enhance local infrastructure, particularly in wastewater management, during a recent special executive management meeting. The discussion highlighted the potential benefits of utilizing federal programs, specifically the Environmental Protection Agency's (EPA) Water Infrastructure Finance and Innovation Act (WIFIA) loans.

Council member Nishimoto emphasized the importance of seeking alternatives to traditional financing methods, which often lead to significant debt service burdens. He referenced a successful case from San Francisco, where the Public Utilities Commission secured a $699 million WIFIA loan for a biosolids digester facility. This project not only improved operational efficiency and reliability but also significantly reduced costs, saving the city $432 million over the loan's lifetime by negotiating lower interest rates.

Nishimoto urged the administration to engage with the EPA to explore similar funding opportunities, especially given the current financial landscape. He noted that previous administrations had opted against pursuing such loans due to a temporary surplus of funds but stressed that the city's circumstances have changed.

The council's commitment to investigating these funding avenues reflects a proactive approach to managing infrastructure needs without over-relying on debt. As discussions continue, the focus remains on leveraging federal resources to ensure sustainable development and improved services for the Honolulu community.