Wastewater infrastructure protects public health, safeguards water quality, and supports economic development by collecting and treating sewage from residential, commercial, and industrial sources across the United States. From collection systems that transport wastewater through underground pipes to treatment plants that remove pollutants before discharge and biosolids management facilities that convert waste into beneficial products, wastewater projects require specialized financing that addresses regulatory mandates, operational complexity, and substantial capital requirements. CBO Financial structures comprehensive funding solutions for wastewater infrastructure by integrating EPA water quality programs, Community Development Financial Institutions lending, New Markets Tax Credit equity, and municipal finance expertise. Whether rehabilitating aging sewer systems, upgrading treatment plants to meet nutrient removal standards, or implementing green infrastructure to reduce combined sewer overflows, strategic financing structures can modernize essential infrastructure while advancing environmental justice and climate resilience across the United States and its territories.
Federal Financing Programs for Wastewater Infrastructure
Multiple federal programs provide essential capital for wastewater system development and improvements:
The National Clean Investment Fund (NCIF) supports wastewater infrastructure projects that reduce greenhouse gas emissions through energy-efficient treatment processes, biogas recovery and utilization, and renewable energy integration. What NCIF financing includes is energy-efficient aeration systems, anaerobic digesters that produce renewable energy, nutrient recovery technologies, and advanced treatment processes that reduce the carbon intensity of wastewater operations, through construction loans, equipment financing, and working capital.
The Clean Communities Investment Accelerator (CCIA) prioritizes wastewater investments in underserved communities where inadequate sanitation creates public health hazards, environmental contamination, and economic barriers. Through EPA community change grant application programs and lending facilities, community financial institutions can finance sewer system extensions, septic-to-sewer conversions, decentralized treatment solutions, and green infrastructure serving environmental justice communities.
For wastewater systems serving qualified low-income communities, tribal lands, or economically distressed regions with failing infrastructure, NMTC services financing provides substantial equity that enables comprehensive system upgrades addressing consent decree requirements, regulatory violations, and public health emergencies in communities lacking adequate sanitation.
Who Can Access Wastewater Infrastructure Financing
CBO Financial structures wastewater infrastructure financing for diverse public and private sector operators:
Municipal Sewer Authorities and Districts upgrading wastewater treatment plants, rehabilitating collection systems, or expanding service areas can access specialized public finance through CDFI fund bond guarantee program partnerships and municipal bond markets, with structures accounting for sewer user fees, consent decree requirements, and long-term debt obligations.
Small and Rural Communities lacking centralized sewer systems or operating failing package treatment plants require financing that addresses limited rate bases, high per-capita costs, and technical capacity constraints while meeting Clean Water Act requirements and protecting groundwater resources.
Tribal Wastewater Systems is developing sanitation infrastructure on tribal lands where significant portions of homes lack basic plumbing, and can access financing respecting tribal sovereignty while providing capital for facilities addressing critical public health needs in Native American communities.
Regional Sewer Authorities serving multiple municipalities through shared treatment facilities and interceptor sewers require complex financing, coordinating among participating communities, balancing capital contributions, and allocating capacity rights among member jurisdictions.
Industrial Pretreatment Facilities implementing on-site wastewater treatment to meet municipal discharge permits, reduce sewer fees, or comply with categorical pretreatment standards can structure financing recognizing operational cost savings, regulatory compliance value, and potential water reuse opportunities.
Wastewater Infrastructure Project Types We Finance
Our financing expertise encompasses the complete spectrum of wastewater infrastructure applications:
Wastewater Treatment Plant Upgrades implementing advanced treatment processes for nutrient removal, enhanced disinfection, or emerging contaminant treatment require substantial capital financing for biological nutrient removal systems, membrane bioreactors, ultraviolet disinfection, activated carbon filtration, and process control automation meeting increasingly stringent National Pollutant Discharge Elimination System permit requirements.
Collection System Rehabilitation and Replacement, addressing inflow and infiltration, eliminating sanitary sewer overflows, and replacing aging infrastructure through pipe rehabilitation, maintenance hole reconstruction, pump station upgrades, and force main replacement, requires multi-year capital programs with financing supporting phased implementation and emergency response capacity.
Combined Sewer Overflow (CSO) Abatement projects, including storage tunnels, high-rate treatment facilities, green infrastructure implementation, and real-time control systems that reduce untreated discharges during wet weather, require comprehensive financing for capital-intensive solutions that address Clean Water Act consent decrees and long-term control plans.
Decentralized Wastewater Systems, including cluster systems, community drainfields, and advanced on-site treatment technologies serving areas where centralized sewers are impractical or cost-prohibitive, require financing for distributed infrastructure, operation and maintenance agreements, and the establishment of a management entity.
Biosolids Management and Resource Recovery systems, including anaerobic digestion, thermal processing, composting, land application programs, and nutrient recovery technologies that convert wastewater treatment byproducts into renewable energy, fertilizers, or soil amendments, require financing accounting for regulatory compliance, market development, and beneficial use opportunities.
CBO Financial’s Wastewater Infrastructure Financing Approach
With specialized expertise in water quality infrastructure and municipal finance, CBO Financial provides comprehensive advisory services for wastewater projects:
Consent Decree and Regulatory Compliance Structuring develops financing strategies to address EPA or state enforcement actions, consent-decree schedules, and compliance deadlines, while coordinating with regulators, legal counsel, and engineers to ensure projects meet mandated requirements within specified timeframes.
Affordability and Rate Impact Analysis creates comprehensive financial models that evaluate user fee requirements, affordability metrics, low-income assistance programs, and phasing strategies that balance infrastructure needs with the community’s ability to pay, supporting applications for disadvantaged community grants and subsidized financing.
Energy Optimization and Resource Recovery evaluates energy-efficient treatment technologies, combined heat and power systems, anaerobic digestion with biogas recovery, nutrient recovery processes, and renewable energy integration that reduce operating costs while qualifying for EPA clean energy programs and utility incentives.
Integrated Capital Stack Design combines EPA water infrastructure programs, CDFI lending, NMTC equity, Clean Water State Revolving Funds, federal appropriations, USDA rural utility programs, municipal revenue bonds, and traditional debt to create optimal funding structures addressing the substantial capital requirements of wastewater systems while minimizing rate increases.
Green Infrastructure and Nature-Based Solutions integrates bioretention systems, permeable pavements, green roofs, wetland restoration, and stream daylighting to manage stormwater at the source while providing multiple environmental benefits, requiring financing that accounts for distributed implementation, maintenance partnerships, and long-term performance monitoring.
Wastewater Infrastructure Financing Across All U.S. Regions
CBO Financial structures wastewater infrastructure financing throughout the United States, from dense urban systems managing combined sewers to rural communities implementing first-time sanitation, and from coastal areas addressing sea level rise to agricultural regions managing nutrient loads. Our team understands regional variations in:
- Water quality impairments, including nutrient pollution, combined sewer overflows, and emerging contaminants
- State discharge standards, total maximum daily load requirements, and watershed-based permitting approaches
- Consent decree prevalence, enforcement priorities, and compliance assistance programs across EPA regions
- Climate adaptation needs include increased precipitation, flooding, sea level rise, and infrastructure vulnerability
- Funding availability through State Revolving Funds, congressional appropriations, and state grant programs
We also serve U.S. territories including Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands, where wastewater infrastructure faces significant challenges including hurricane damage, aging systems, coral reef protection requirements, limited treatment capacity, and substantial portions of communities lacking adequate sanitation, requiring comprehensive infrastructure investments to meet federal standards while building climate resilience in vulnerable island environments.
Modernize Your Wastewater Infrastructure
Whether you’re addressing regulatory compliance requirements or planning comprehensive system upgrades, CBO Financial can accelerate your wastewater infrastructure development. Our team will evaluate your system’s regulatory obligations, treatment capacity needs, collection system condition, and financial constraints to identify optimal financing structures and connect you with capital providers experienced in wastewater infrastructure and municipal finance.
Request a wastewater infrastructure consultation to discuss your financing needs for your system. Our consultants will assess your compliance challenges, infrastructure condition, rate structures, applicable funding programs, and develop a comprehensive strategy to secure capital for your wastewater infrastructure investment.