More Than $15 Million in Water and Wastewater Construction Loans Awarded
Low-Interest Loans Help Fund Infrastructure Improvements
NASHVILLE – Tennessee Gov. Bill Haslam and Department of Environment and Conservation Commissioner Bob Martineau today announced that four communities have been approved to receive more than $15 million in low-interest loans for water and wastewater infrastructure improvements.
“We are pleased to be in a position to help address critical drinking water and wastewater infrastructure needs at the local level, making improvements that will benefit the health of these communities and economic growth,” Haslam said.
The State Revolving Fund (SRF) Loan Program provides low-interest loans that help communities, utility districts, and water and wastewater authorities finance projects that protect Tennessee’s ground and surface waters and public health. Loans are used to finance the planning, design and construction of water and wastewater facilities.
The Department of Environment and Conservation administers the SRF Loan Program for the state of Tennessee in conjunction with the Tennessee Local Development Authority. The U.S. Environmental Protection Agency provides grants to fund the program, and the state provides a 20 percent match. Loan repayments are returned to the program and are used to fund future SRF loans.
Through the SRF Program, communities, utility districts, and water and wastewater authorities can obtain loans with lower interest rates than most can obtain through private financing. Interest rates for loans can vary from zero percent to market rate based on each community’s economic index. Loans utilizing the 2010 EPA grant funds include more than 20 percent principal forgiveness for water and wastewater projects, 2011 EPA grant funds include 30 percent principal forgiveness for water and 10 percent principal forgiveness for wastewater projects, and 2012 EPA grant funds include 20 percent principal forgiveness for water and wastewater projects.
“The State Revolving Fund loan program is an important tool that assists in much needed infrastructure improvements, while keeping local communities moving forward as they prepare for future needs,” Martineau said.
The funding order of projects is determined by the SRF Loan Program’s Priority Ranking Lists that rank potential projects according to the severity of their pollution and/or compliance problems or for the protection of public health.
Wastewater loans were announced today for the following recipients:
City of Camden (Benton County) – The city of Camden will receive $2 million for a green project that includes replacement of water meters. The project will be funded with a 20-year, $1.6 million loan with an interest rate of 0.72 percent and $400,000 in principal forgiveness that will not have to be repaid.
City of Etowah (McMinn County) – The city of Etowah will receive $1 million for a project that includes collection system rehabilitation. The project will be funded with a 20-year, $800,000 loan with an interest rate of 0.56 percent and $200,000 in principal forgiveness that will not have to be repaid.
City of Fayetteville (Lincoln County) – The city of Fayetteville will receive $972,360 for a project that includes infiltration inflow corrections at the Tanyard Branch, Laten Bottom and Winchester Highway interceptors and system-wide, including storm water cross-connection elimination. The project will be funded with a 20-year, $732,187 loan with an interest rate of 1.17 percent and $240,173 in principal forgiveness that will not have to be repaid.
City of Fayetteville (Lincoln County) – The city of Fayetteville will receive an additional $4.3 million for a project that includes infiltration inflow corrections for sewer rehabilitation at the Liberty, Pitts, Tanyard Branch, Winchester Highway, Laten Bottom facilities, in addition to other system-wide efforts. The project will be funded with a 20-year, $3.87 million loan with an interest rate of 1.17 percent and $430,000 in principal forgiveness that will not have to be repaid.
Drinking water loans were announced today for the following recipients:
City of Camden (Benton County) – The city of Camden will receive $1.25 million for a project that includes waterline relocation along Highway 70. The project will be funded with a 20-year, $1 million loan with an interest rate of 0.72 percent and $250,000 in principal forgiveness that will not have to be repaid.
City of Lebanon (Wilson County) – The city of Lebanon will receive $2.5 million for a project that includes water treatment plant improvements at its disinfection by-products facility. The project will be funded with a 20-year, $1.75 million loan with an interest rate of 1.29 percent and $750,000 in principal forgiveness that will not have to be repaid.
A traditional wastewater loan was announced today for the following recipient:
City of Camden (Benton County) – The city of Camden will receive a $1.85 million, 20-year loan with an interest rate of 0.72 percent for a project that includes wastewater treatment plant improvements for secondary treatments.
A traditional drinking water loan was announced today for the following recipient:
City of Lebanon (Wilson County) – The city of Lebanon will also receive a $1.2 million, 20-year loan with an interest rate of 1.29 percent for a project that includes water treatment plant improvements at its disinfection by-products facility.
Since its inception in 1987, Tennessee’s Clean Water State Revolving Fund Loan Program has awarded more than $1.27 billion in low-interest loans. Since its inception in 1996, Tennessee’s Drinking Water State Revolving Fund Loan Program has awarded more than $207 million in low-interest loans. Both programs combined award more than $80 million annually to Tennessee’s local governments for water and wastewater infrastructure projects.
Any local government interested in the SRF Loan Program should contact the State Revolving Fund Loan Program, L&C Tower, 8th Floor, 401 Church Street, Nashville, TN 37243, or call (615) 532-0445. Additional information about the SRF Loan Program may be found online at www.tn.gov/environment/srf.
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