Water treatment facilities represent essential infrastructure for public health, environmental protection, and community development across the United States. From drinking water treatment plants ensuring safe potable water supplies to wastewater treatment facilities protecting rivers and coastal waters, and stormwater management systems reducing pollution and flooding, water infrastructure projects require specialized financing that accounts for regulatory compliance, operational complexity, and long asset lifespans. CBO Financial structures comprehensive funding solutions for water treatment facilities by integrating EPA water infrastructure programs, Community Development Financial Institutions lending, New Markets Tax Credit equity, and municipal finance expertise. Whether upgrading aging water systems, implementing advanced treatment technologies, or developing water reuse facilities, strategic financing structures can address infrastructure gaps while supporting environmental justice and climate resilience objectives across the United States and its territories.
Federal Financing Programs for Water Infrastructure Projects
Multiple federal programs provide essential capital for water treatment facility development and upgrades:
The National Clean Investment Fund (NCIF) supports water infrastructure projects that reduce greenhouse gas emissions through energy-efficient treatment processes, renewable energy integration, and resource recovery systems. NCIF check financing covers energy-efficient pumping and aeration systems, biogas recovery from wastewater treatment, and innovative technologies reducing the carbon footprint of water and wastewater operations through construction loans, equipment financing, and working capital facilities.
The Clean Communities Investment Accelerator (CCIA) deploys capital to underserved communities where water infrastructure investments can address environmental justice concerns, reduce waterborne disease risks, and improve quality of life. Through EPA’s thriving communities grant programs and lending facilities, community financial institutions can finance drinking water system improvements, decentralized wastewater treatment, and green infrastructure serving disadvantaged communities lacking adequate water services.
For water treatment facilities serving qualified low-income communities, tribal nations, or economically distressed areas with aging infrastructure, NMTC advisory financing provides substantial equity, enabling projects that would be financially unfeasible through conventional municipal bonds alone, supporting critical infrastructure serving vulnerable populations.
Who Can Access Water Treatment Facility Financing
CBO Financial structures water infrastructure project financing for diverse public and private sector stakeholders:
Municipal Water and Sewer Authorities upgrading drinking water treatment plants, wastewater treatment facilities, or collection and distribution systems can access specialized public finance through CDFI Bank of America partnerships and traditional municipal bond markets, with financing structures accounting for rate-based recovery, regulatory compliance mandates, and debt service coverage requirements.
Rural Water Systems and Cooperatives serving small communities, unincorporated areas, or agricultural regions require financing that addresses limited rate bases, seasonal demand variations, and challenges in achieving economies of scale while meeting Safe Drinking Water Act and Clean Water Act requirements.
Tribal Water Systems, which develop or upgrade water infrastructure on tribal lands, can access specialized financing that respects tribal sovereignty while providing capital for facilities that address significant infrastructure gaps and public health concerns in Native American communities.
Private Water Utilities implementing treatment plant upgrades, system expansions, or the acquisition of distressed municipal systems require investor-owned utility financing structures that account for regulated returns, capital expenditure cycles, and long-term service obligations.
Industrial and Commercial Facilities implementing on-site water treatment, wastewater pretreatment, or water reuse systems to reduce municipal discharge fees, comply with discharge permits, or secure water supplies can structure financing recognizing operational cost savings and regulatory compliance benefits.
Water Treatment Facility Project Types We Finance
Our financing expertise encompasses the complete spectrum of water infrastructure applications:
Drinking Water Treatment Plants that remove contaminants, disinfect water supplies, and ensure compliance with Safe Drinking Water Act standards through filtration, advanced oxidation, membrane treatment, or other processes require capital-intensive financing for treatment equipment, process controls, chemical systems, residuals handling, and distribution infrastructure.
Wastewater Treatment Facilities, ranging from primary treatment to advanced nutrient removal and disinfection systems that protect receiving waters while meeting National Pollutant Discharge Elimination System permits, require comprehensive project finance covering biological treatment systems, clarifiers, disinfection equipment, biosolids management, and effluent monitoring.
Water Reuse and Reclamation Facilities that treat wastewater to standards enabling irrigation, industrial process use, groundwater recharge, or indirect potable reuse create drought-resilient water supplies, requiring advanced treatment financing for membrane bioreactors, reverse osmosis, advanced oxidation, and distribution systems serving non-potable or reclaimed water users.
Decentralized and packaged treatment systems serving individual communities, developments, or institutions where centralized infrastructure is impractical or cost-prohibitive provide scalable solutions that require financing for modular treatment equipment, operation and maintenance agreements, and distributed infrastructure deployment.
Green Infrastructure and Stormwater Management systems, including bioswales, permeable pavement, rain gardens, green roofs, and constructed wetlands, that reduce combined sewer overflows and improve water quality require financing that accounts for distributed implementation, maintenance requirements, and multiple environmental co-benefits beyond traditional gray infrastructure.
CBO Financial’s Water Infrastructure Financing Approach
With specialized expertise in environmental infrastructure and municipal finance, CBO Financial provides comprehensive advisory services for water treatment projects:
Regulatory Compliance and Permit Navigation coordinates with environmental engineers, regulators, and legal counsel to ensure facility designs meet Safe Drinking Water Act, Clean Water Act, and state-level requirements, while structuring financing that accounts for consent decrees, enforcement actions, and compliance schedules to drive project timelines.
Rate Study and Affordability Analysis develops comprehensive rate models to project revenue requirements, evaluate affordability impacts on low-income households, and structure financing that balances infrastructure needs with the community’s ability to pay, supporting applications for disadvantaged community designations and grant funding.
Energy Efficiency and Resource Recovery Integration evaluates energy-efficient treatment technologies, renewable energy opportunities, biogas recovery systems, and nutrient recovery processes that reduce operating costs while qualifying for EPA clean energy financing and utility incentive programs.
Integrated Capital Stack Design combines EPA financing programs, CDFI lending, NMTC equity, State Revolving Funds, USDA rural utility programs, federal appropriations, municipal bonds, and traditional debt to create optimal funding structures addressing the substantial capital requirements of water infrastructure while minimizing rate impacts.
Public-Private Partnership Structuring develops design-build-operate-finance agreements, concession arrangements, or service contracts that transfer project risks to private-sector partners while ensuring public oversight, rate protection, and service quality for communities lacking the technical or financial capacity for direct facility ownership.
Water Infrastructure Financing Across All U.S. Regions
CBO Financial structures water treatment facility financing throughout the United States —from urban systems serving millions to rural communities with small treatment plants —and from arid regions requiring water reuse to coastal areas managing sea-level rise impacts. Our team understands regional variations in:
- Water quality challenges, including emerging contaminants, agricultural runoff, and source water protection issues
- State drinking water and wastewater regulations, discharge standards, and infrastructure funding programs
- Climate impacts, including drought, flooding, sea level rise, and extreme weather, are affecting infrastructure resilience.
- Aging infrastructure replacement needs, combined sewer overflow systems, and lead service line replacement
- Regional water scarcity, water rights frameworks, and opportunities for water reuse and conservation
We also serve U.S. territories including Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands, where water infrastructure faces unique challenges including hurricane damage vulnerability, coral reef protection requirements, saltwater intrusion, limited freshwater resources, and aging systems requiring comprehensive upgrades to meet federal standards while building resilience against tropical storms and climate change impacts affecting island water security.
Advance Your Water Infrastructure Project
Whether you’re conducting preliminary engineering studies or ready to finalize financing for the construction of a water treatment facility, CBO Financial can accelerate your infrastructure development. Our team will evaluate your system’s regulatory requirements, treatment technology needs, rate structures, and community characteristics to identify optimal financing structures and connect you with capital providers experienced in water infrastructure and municipal finance.
Request a water infrastructure project assessment to discuss your treatment facility financing needs. Our consultants will analyze your water quality challenges, regulatory compliance requirements, applicable funding programs, and develop a comprehensive strategy to secure capital for your water infrastructure investment.