Water and Wastewater Construction Loans Awarded
Nashville, Tenn. – Governor Phil Bredesen has announced seven low-interest loans totaling more than $8.7 million have been awarded through the State Revolving Fund (SRF) Loan Program to fund much-needed water and wastewater construction projects in five Tennessee communities. The Department of Environment and Conservation administers the Clean Water and Drinking Water SRF Loan Programs for the State of Tennessee.
SRF loan recipients, whose loan amounts and projects are detailed below, include the Bon Aqua-Lyles Utility District, Maury County Water System, Watauga River Regional Water Authority and cities of Newport and Lebanon, Tenn.
“I’m always pleased to see local governments take advantage of this low-interest loan program,” said Bredesen. “Investments in our drinking water and wastewater infrastructure are key to maintaining public health and keep our communities moving forward in terms of economic and community development opportunities.”
The SRF Loan Program provides low-interest loans to help communities, utility districts, and water authorities finance water and wastewater projects that protect Tennessee’s ground and surface waters. Loans are used to finance the planning, design, and construction of water and wastewater facilities. Through this program, communities, utility districts, and water authorities can obtain loans with lower interest rates than most can obtain through private financing. Interest rates for the loans can vary from zero percent to market rate based on each community’s economic index.
The funding order of projects is determined by the SRF Loan Programs’ Priority Ranking Lists that rank potential projects according to the severity of their pollution problems, compliance with state and federal rules and regulations, or protection of public health. Environment and Conservation administers the Clean Water and Drinking Water SRF Loan Programs in conjunction with the Tennessee Local Development Authority. Through 2006, the U.S. Environmental Protection Agency has provided seed money for the loan programs, and the state has provided the 20 percent matching funds.
Details of the SRF loans announced today include:
Drinking Water SRF Loans:
- Bon Aqua-Lyles Utility District, Hickman County – The Utility District is receiving two loans totaling $5 million for Phase I and Phase II Water System Improvements. Each is a 20-year loan in the amount of $2.5 million with an interest rate of 1.21%. The Phase I improvements include construction of membrane filtration units and a chemical feed/laboratory facility at the existing water treatment plant site. Phase II consists of the construction of approximately 26,000 linear feet of water transmission lines and a booster pump station that will allow the utility to purchase water from the Water Authority of Dickson County.
- Maury County Water System – The Water System is receiving a total of $2.25 million, including a $600,000 increase to an existing $3.6 million, 20-year loan with an interest rate of 2.42% and a new 20-year loan at the same rate in the amount of $1.65 million. The loan increase is for a project that involves constructing approximately 11 miles of water transmission lines and a pump station upgrade in the southern and western areas of Maury County and 4.5 miles of lines and a pump station along with an elevated storage tank in the northern part of the county. The new loan will also allow the system to construct approximately 8,000 linear feet of water lines, a pump station and a water storage tank.
- City of Newport, Cocke County – Newport will receive a 20-year loan in the amount of $800,000 with an interest rate of 2.15% for the construction of approximately 30,000 linear feet of water transmission lines and relocating the existing Dark Hollow Pump Station, which serves the residents of the Hartford Community.
- Watauga River Regional Water Authority, Carter County – The Water Authority will receive a $300,000, 5-year loan with an interest rate of 1.08% to plan for the design and construction of a 4 million gallon per day membrane filtration water treatment plant located on Wilbur Lake, a 3 million gallon water storage tank, and approximately $34,000 linear feet of water distribution lines to provide drinking water to the seven member entities of the Watauga River Regional Water Authority.
Wastewater SRF Loans:
- City of Lebanon, Wilson County – Lebanon will receive an increase in the amount of $397,340 to an existing $4.4 million, 20-year loan with an interest rate of 2.35% for the construction of collection systems to the Georgetown, Horne Springs and South Fork Subdivisions.
Since its inception in 1987, Tennessee’s Clean Water State Revolving Fund Loan Program has awarded over $777,900,000 in low-interest loans. Since its inception in 1996, Tennessee’s Drinking Water State Revolving Fund Loan Program has awarded over $103,000,000 in low-interest loans. Both programs combined award approximately $75,000,000 annually for water and sewer infrastructure projects in Tennessee.
Any local government interested in the SRF Loan Programs should contact the State Revolving Fund Loan Program, 8th Floor, L&C Tower, 401 Church Street, Nashville, TN 37243, or call (615) 532-0445. Information about SRF Loan Programs may be found on online at www.tdec.net/srf.
For more information contact:
Office (865) 594-5442