Water and Wastewater Construction Loans Awarded
Wednesday, April 28, 2010 | 10:45am
Six Communities Receive Low Interest Loans to Supplement Infrastructure Improvements
NASHVILLE – The Tennessee Department of Environment and Conservation announced today that four communities and two utility districts will receive additional low-interest loans totaling more than $6.5 million through the State Revolving Fund Loan Program to fund much-needed water and wastewater construction projects. Each of these loans supplements or expands previous SRF funding for these projects.
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. Through this 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 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 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:
· Crossville (Cumberland County) – A $500,000, 20-year loan with an interest rate of 2.78 percent for wastewater treatment plant improvements to achieve and maintain compliance with permitted flows. This is a traditional SRF loan that supplements a $5 million, 20-year loan approved for this project in 2009, which utilized both Recovery Act and State Revolving Fund monies and included $2 million in principal forgiveness.
· LaFollette (Campbell County) – A $1.5 million increase to an existing 20-year traditional SRF loan with an interest rate of 0.80 percent for wastewater treatment plant improvements, including construction of a new screening unit, a membrane filtration unit, an ultraviolet (UV) disinfection unit, and the rehabilitation, conversion, and upgrading of additional units at the plant.
· White House (Robertson and Sumner Counties) – A $360,000, 20-year loan with an interest rate of 1.74 percent for a new pump station and sewer collectors at Copes Crossing to eliminate the old Tyree Springs Lift Station. This is a traditional SRF loan that supplements a $1 million, 20-year loan approved for this project in 2009, which utilized both Recovery Act and State Revolving Fund monies and included $400,000 in principal forgiveness.
· Hallsdale-Powell Utility District (Union and Knox Counties) – A $3.5 million increase to an existing 20-year traditional SRF loan with an interest rate of 0.82 percent to increase capacity of the Beaver Creek Wastewater Treatment Plant from 5.6 to 9.7 million gallons per day.
SRF Drinking Water Loans were announced today for the following recipients:
· Jellico (Campbell County) – A $459,555, 20-year loan with an interest rate of 0.69 percent for water source and storage improvements including construction of two new raw water wells, approximately 9,500 linear feet of raw water transmission lines, and re-activation of the old city water storage tank. This is a traditional SRF loan that supplements a $1.35 million, 20-year loan approved for this project in 2009, which utilized both Recovery Act and State Revolving Fund monies and included $540,000 in principal forgiveness.
· Madison Suburban Utility District (Davidson County) – A $413,240, 20-year loan with an interest rate of 2.78 percent for water treatment plant improvements including automation and integration of processes equipment and the conversion from chlorine gas to liquid bleach. This is a traditional SRF loan that supplements a $1.1 million, 20-year loan approved for this project in 2009, which utilized both Recovery Act and State Revolving Fund monies and included $440,000 in principal forgiveness.
All of the loans announced today are traditional SRF loans, which do not include Recovery Act funding or the principal forgiveness provision. The Department of Environment and Conservation administers the SRF Loan Program in 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.
Since its inception in 1987, Tennessee’s Clean Water State Revolving Fund Loan Program has awarded more than $1.08 billion in low-interest loans. Since its inception in 1996, Tennessee’s Drinking Water State Revolving Fund Loan Program has awarded more than $156 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.
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