Federal WIFIA loan fortifies Florida Keys’ water resilience

The Florida Keys Aqueduct Authority (FKAA) is significantly enhancing the resilience and reliability of its drinking water system, thanks to a substantial $147 million Water Infrastructure Finance and Innovation Act (WIFIA) loan from the U.S. Environmental Protection Agency (EPA).

Announced in February, the federal investment allows FKAA to undertake vital upgrades to fortify its infrastructure against hurricanes, saltwater intrusion, and emerging contaminants, ensuring safe and reliable water for over 82,000 residents and more than five million visitors each year.

“Our entire service area is uniquely dependent on a single, 130-mile linear transmission pipeline that stretches across the Florida Keys, spanning more than 40 bridges that connect the island chain,” said FKAA Executive Director Greg Veliz. “A disruption in any section of this pipeline doesn’t just affect one neighborhood; it affects entire communities south of the break.”

Future-proofing coastal systems

The funding allows FKAA to upgrade high-risk sections of the drinking water system. This includes adding cathodic protection to prevent saltwater corrosion and subaqueous transmission lines that route pipes beneath channels, helping ensure continuous service.

“Together, these improvements are a big step toward ensuring the long-term sustainability and security of drinking water for all the communities in the Keys, even as environmental challenges continue to intensify,” said Veliz.

The investment includes a $100 million upgrade to the J. Robert Dean Water Treatment Facility, installing advanced membrane and ion exchange technologies to comply with new EPA PFAS regulations. The loan also will fund storage tank upgrades to boost emergency water supply.

“This investment is about much more than just replacing aging infrastructure — it’s about preparing our water system for the future,” Veliz said. “We’re addressing today’s challenges and tomorrow’s threats in a proactive, strategic way.”

Investing in water

The WIFIA loan is the second for FKAA, bringing their total WIFIA financing to approximately $200 million.

“Federal programs like WIFIA give local utilities the resources to act proactively, addressing vulnerabilities before they become major crises,” Veliz said. “We strongly encourage federal leaders to continue and expand support for these programs.”

The WIFIA program, established in 2014, resulted from sustained advocacy from the American Water Works Association (AWWA), which championed dedicated water infrastructure financing for several years.

WIFIA loans include the benefit of deferred principal payments, which are projected to save FKAA approximately $29.5 million over the loan’s duration while allowing the utility to significantly accelerate vital drinking water system projects.

“Our key message is this: investment in water infrastructure is an investment in national security, public health, and economic stability,” said Veliz.