William J. Fazioli | CEO and executive director, Rhode Island Infrastructure Bank
1. In November, Rhode Island voters approved Question 4, $53 million in bonds for the green economy. What part will the Rhode Island Infrastructure Bank play in deploying that money? Question 4 included an additional $10 million for the Municipal Resilience Program. The bank is the fiscal agent and granting authority for that program in partnership with the R.I. Department of Environmental Management and The Nature Conservancy [in] Rhode Island. We have provided over $24 million in municipal grants for resilience projects since 2020, but the demand for funding continues to exceed available resources. That is why we are developing a financial framework to provide a recurring source of funds for resiliency projects across the state.
2. What part, if any, can the infrastructure bank play in alleviating the housing crisis? In partnership with the R.I. Department of Housing, the bank recently awarded $2.8 million to support affordable housing projects in Rhode Island, including Providence, Pawtucket and Coventry. In addition, through the Municipal Infrastructure Grant Program, RIIB often supports housing development and looks forward to continued collaboration with other state agencies to enable infrastructure investments that support residential development.
3. While the bank’s focus seems to be mainly municipal projects, what can it do for the private sector, including businesses and nonprofits? RIIB has expanded [its] scope to allow financing for nonprofit associations to promote clean and efficient energy projects. Most recently, the bank approved a $2.5 million loan to the Boys & Girls Clubs of Providence as part of its building renovations on Branch Avenue. Also, RIIB provided $4.5 million in grants to small businesses to support energy efficiency projects. And our Commercially Assessed Clean Energy Program is an excellent financing option for Rhode Island businesses looking to invest in renewable or energy efficiency projects, without incurring large upfront expenses.
4. Can you give an overview of the financial status of the Rhode Island Infrastructure Bank? Assets, income, amount of loans and grants made? And how it compares with previous years? RIIB’s financial status is exceptionally strong. At the close of fiscal 2024, net assets exceeded $1 billion, which is a $75 million increase from the prior year. In addition, our core revolving loan program maintains AAA ratings from S&P [500] and Fitch Ratings. This solid financial condition allows us to provide the most attractive interest rates and financing terms. Since its inception, the bank has provided over $2.5 billion in financial assistance to Rhode Island entities for projects that protect the environment while also supporting responsible economic development. The total amount of loans outstanding as of fiscal 2024 exceeds $1.3 billion and has supported critical investments in the Narragansett Bay Commission, Providence Water, along with numerous smaller entities such as the Shannock Water District and Pascoag Utility District. The bank is completely self-funded and covers all operating expenses through our own revenues.
5. Has the infrastructure bank’s focus evolved over the years, and how will it change in the coming years? RIIB’s lending capacity now includes 14 programs ranging from clean water and drinking water, as well as municipal roads, clean energy, community septic and resiliency projects. A cornerstone of our success has been the revolving loan fund model that provides a recurring source of capital. We plan to expand this approach to address other capital needs facing our clients. We have recently been distributing significant amounts of federal grant and loan funds, channeled through the Bipartisan Infrastructure Law, to address PFAS – per- and polyfluoroalkyl substances – contamination, a growing issue impacting many public drinking water systems in Rhode Island. By the end of 2025, we anticipate the nearly $40 million in grants and low-cost loans will be obligated to address emerging contaminants.