Water and Wastewater Construction Loans Awarded
Low Interest Loans Help Fund Infrastructure Improvements
NASHVILLE – Governor Phil Bredesen and Department of Environment and Conservation Commissioner Jim Fyke announced today that two communities and one utility district have been approved to receive low-interest loans for water and wastewater infrastructure improvements.
“I am pleased to see local governments accessing this important program,” said Bredesen. “The State Revolving Fund loan program is a tool to help communities address their current infrastructure needs and allow them to prepare for future needs.”
The 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 State Revolving Fund (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. In addition, loans utilizing this year’s EPA grant funds include 20 percent principal forgiveness.
“Community investments in our drinking water and wastewater systems are vital to maintaining environmental and public health.” Environment and Conservation Commissioner Jim Fyke said. “These loans will help keep our communities moving forward, and the principal forgiveness provision helps local communities accomplish this work in difficult economic times.”
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.
SRF Wastewater Loans were announced today for the following recipients:
Metropolitan Lynchburg/Moore County – Metropolitan Lynchburg/Moore County will receive just over $1.6 million to correct infiltration and inflow problems in the collection system and for wastewater treatment plant improvements. The project will be funded with a 20-year, $1.3 million loan with an interest rate of 0.00 percent and $323,000 in principal forgiveness that will not have to be repaid.
Town of Smyrna (Rutherford County) – The town of Smyrna will receive $600,000 for a green repurified water line and associated pump station. The project will be funded with a 20-year, $480,000 loan with an interest rate of 1.94 percent and $120,000 in principal forgiveness that will not have to be repaid.
An SRF Drinking Water Loan was announced today for the following recipient:
Hallsdale-Powell Utility District (Knox/Union Counties) – The Hallsdale-Powell Utility District will receive approximately $3.8 million for a green stream crossing restoration/bank stabilization and waterline replacement and relocation project. The project will be funded with a 20-year, $3.1 million loan with an interest rate of 0.87 percent and $769,400 in principal forgiveness that will not have to be repaid.
The following traditional SRF Wastewater Loan was announced today:
Town of Smyrna (Rutherford County) – The Town of Smyrna will receive a $12 million, 15-year loan with an interest rate of 1.63 percent for a collection system extension and pump station.
Traditional loans do not include the 2010 EPA funding or the principal forgiveness provision.
Since its inception in 1987, Tennessee’s Clean Water State Revolving Fund Loan Program has awarded more than $1.11 billion in low-interest loans. Since its inception in 1996, Tennessee’s Drinking Water State Revolving Fund Loan Program has awarded more than $163 million in low-interest loans. Both programs combined award approximately $75 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.