Background on the Ohio Water Development Authority

The Ohio Water Development Authority (OWDA) provides financial assistance for environmental infrastructure from the sale of municipal revenue bonds through loans to local governments in Ohio and from the issuance of industrial revenue bonds for qualified conduit projects in Ohio. The following are the key points of OWDA’s operations and is provided for background context to the Board.

OWDA “By the Bullets”

• Awarded more than $24 billion since 1968 to local governments, with more than $1.7 billion in 2024 alone
• Consists of eight board members, 20 employees, and various consultants
• Rated AAA/Aaa in the bond market, and is self-funded
• 78% of OWDA’s awardees do not have a debt rating, with OWDA offering substantial savings to those communities
• Supported projects in all 88 counties, 84 in 2024 alone
• Excellent customer service, a community can apply and receive an award from OWDA’s Fresh Water Program within the same month

What is OWDA?

OWDA was created by the Ohio General Assembly in 1968 as a public agency to provide funding to public water and wastewater construction projects throughout Ohio.  OWDA was initially allocated $100 million towards its mission.  OWDA has taken that original allocation, combined with U.S. EPA funding, to ultimately award more than $24 billion to local governments to improve the lives of Ohio’s residents through December 2024.  While $24 billion has been awarded in total, $1.7 billion was awarded in 2024, and $1.8 billion in 2023 alone.  Most awards come from OWDA’s three main programs.  The 1968 legacy program is called the “Fresh Water Program”; and OWDA financially manages the Water Pollution Control Loan Fund and Drinking Water Assistance Fund, with OEPA serving as the administrative manager selecting the projects to award.

Who is OWDA?

OWDA consists of an eight-member Board and is supported by 20 employees.  Five of the eight members are appointed by the Governor, with the advice and consent of the State Senate. No more than three of the five Governor’s appointed members can be of the same political party.  There are three designees, each representing the Directors of the Ohio Environmental Protection Agency (OEPA), Ohio Department of Natural Resources (ODNR), and the Ohio Department of Development (Development). In February 1969, the Board established the position of Executive Director who is directly responsible to the Board and manages the staff of the Authority. Historically, in 1969, the OWDA staff consisted of three positions, Executive Director, Assistant Executive Director, and Administrative Specialist. Currently, those 20 employees range from financial experts to engineers, with additional support from a financial advising firm, legal firms, and financial institutions.

How does the OWDA operate?

Originally, the OWDA provided low-interest loans out of that initial allocation of $100 million and federal funds allocated for projects; and upon repayment, leveraged those funds on the bond market.  OWDA continues this model utilizing bonds when additional cash for awards is needed.  Over the decades, all three of OWDA’s major programs have gained a AAA/Aaa rating, by S&P Global Ratings and Moody’s Investor Service, respectively, which is the highest possible rating available.  This enables OWDA’s ability to offer low borrowing costs and pass the savings onto our awardees, who mainly consist of Ohio’s local governments, to meet water and wastewater infrastructure needs.  OWDA is self-funded. OWDA receives a service fee for each loan provided, and in turn that fee funds OWDA’s operations.  Approximately 78% of OWDA’s borrowers do not have a debt rating, as they have never gone to the bond market.  As such, OWDA’s loans are cheaper than what is available to communities throughout the state.  For example, a community with an “A” rating, which is a generous assumed rating for a community with no rating, would save approximately $175,000 on a $3 million, 20-year loan through OWDA.

Where is OWDA’s Impact?

In 2024, OWDA awarded funding in 84 of Ohio’s 88 counties, and has projects in all 88 of Ohio’s counties.  The project totals can be found in the annual report.

What are the main programs?

Most awards come from OWDA’s three main programs. 

Fresh Water Program: Created by OWDA in 1992, the Fresh Water Loan Program provides financial assistance for planning, design and construction of drinking water, wastewater, and storm water projects.  During 2024, the OWDA awarded Fresh Water loans totaling $250,322,058; consisting of:

• 51 water construction loans for $142,807,227;
• 29 sewer construction loans for $83,126,105;
• one storm construction loan for $200,509;
• 18 water planning and design loans for $9,285,741;
• 19 sewer planning and design loans for $14,303,759; and,
• one storm planning a design loan for $598,717.

Water Pollution Control Loan Fund (WPCLF): The program, administered by Ohio EPA and OWDA, started in 1989 from a capitalization grant provided by the federal government through the Clean Water Act. The Ohio EPS is the administrative manager selecting the projects awarded, while OWDA financially manages the program. The WPCLF offers below market-rate loans to Ohio's communities to undertake improvements to their wastewater collection and treatment systems. During 2024, the WPCLF awarded 194 construction projects totaling $684,069,573 and 43 planning and design projects totaling $54,371,820.   

Drinking Water Assistance Fund (DWAF): The DWAF Program was created in 1998 with a capitalization grant from the US EPA, under the Safe Drinking Water Act Amendments of 1996, to provide funds to public water systems for the cost of facility improvements to meet Safe Drinking Water Act standards.  The Ohio EPA is the administrative manager selecting the projects awarded, while OWDA financially manages the program. During 2024, the DWAF awarded 108 construction loans totaling $393,082,707 and 44 planning and design loans totaling $208,921,935.

When does OWDA make the awards?

For OWDA’s “Fresh Water Program”, a community can apply to OWDA by the first of a month, and the project can be on the agenda for a loan that same month.  Once a year, OEPA solicits nominations for potential projects to be funded by the Water Pollution Control Loan Fund and Drinking Water Assistance Fund.  The submissions are evaluated by OEPA; and when a project is ready to proceed, OWDA staff evaluates the information and places the project on the monthly agenda for Board consideration.