More Than $63.6 Million in Water and Wastewater Construction Loans Awarded
Tennessee Governor Bill Haslam and Department of Environment and Conservation Commissioner Bob Martineau today announced that eight communities have been approved to receive more than $63.6 million in low-interest loans for water and wastewater infrastructure improvements.
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.
“Preparing for potential growth is critical to attracting new jobs, and this program helps local entities address water and wastewater infrastructure needs that help strengthen and improve communities for future needs,”Haslam said.
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 EPA grant funds can include a principal forgiveness component.
“The State Revolving Fund Loan Program is a community investment to improve the environment and public health, while keeping local communities moving forward as they prepare for future needs,” Martineau said.
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.
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 Etowah (McMinn County) – The City of Etowah will receive $1,000,000 for a project that includes Sewer System Rehabilitation. The project will be funded with a 20-year, $950,000 loan with an interest rate of 0.68% and $50,000 in principal forgiveness that will not have to be repaid.
Lincoln County – Lincoln County will receive $3,558,000 for a project that includes installation of new septic tank effluent pumping (STEP) systems along the Huntsville HWY (US HWYS 231 7 431) south of the City of Fayetteville and transport of wastewater to the City of Fayetteville’s Wastwater Treatment Plant for treatment. The project will be funded with a 20-year, $3,380,100 loan with an interest rate of 0.91% and $177,900 in principal forgiveness that will not have to be repaid.
City of Murfreesboro (Rutherford County) – The City of Murfreesboro will receive $4,000,000 for a project that includes Expansion of the Sinking Creek Wastewater Treatment Plant from 16.0 MGD to 20.0 MGD. The project will be funded with a 20-year loan with an interest rate of 1.30%.
Drinking Water Loans were announced today for the following recipients:
City of Cleveland (Bradley County) – The City of Cleveland will receive $2,500,000 for a project that includes Green – Water Meter Replacements. The project will be funded with a 20-year, $2,500,000 loan with an interest rate of 1.50 percent and $500,000 in principal forgiveness that will not have to be repaid.
City of Sweetwater (Monroe County) – The City of Sweetwater will receive $2,444,000 for a project that includes Green – Water Treatment Plant Improvements. The project will be funded with a 20-year, $1,833,000 loan with an interest rate of 0.99 percent and $611,000 in principal forgiveness that will not have to be repaid.
Town of Troy (Obion County) – The Town of Troy will receive $2,098,000 for a project that includes Green – 700 GPM Water Treatment Plant. The project will be funded with a 20-year, $1,573,500 loan with an interest rate of 0.49 percent and $524,500 in principal forgiveness that will not have to be repaid.
Traditional Wastewater Loans were announced today for the following recipients:
City of Etowah (McMinn County) – The City of Etowah will also receive a $500,000 loan for a project that includes Sewer System Rehabilitation. The project will be funded for 20 years, with an interest rate of 0.68 percent.
City of Murfreesboro (Rutherford County) – The City of Murfreesboro will also receive a $32,500,000 loan for a project that includes Expansion of the Sinking Creek Wastewater Treatment Plant from 16.0 MGD to 20.0 MGD. The project will be funded for 20 years, with an interest rate of 1.30 percent.
Traditional Drinking Water Loans were announced today for the following recipients:
City of Kingsport (Hawkins and Sullivan County) – The city of Kingsport will receive a $15,000,000, 20-year loan with an interest rate of 1.78 percent for a project that includes Raw Water Intake and Transmission Improvements.
City of Ridgely (Lake County) – The City of Ridgely will receive an increase of $34,804 to an existing $810,000, 20-year loan which brings the total to $844,804 with an interest rate of 0.01% for a project that includes Replacement of Two Existing Wells with Two New Wells.
Since its inception in 1987, Tennessee’s Clean Water State Revolving Fund Loan Program has awarded more than $1.6 billion in low-interest loans. Since its inception in 1996, Tennessee’s Drinking Water State Revolving Fund Loan Program has awarded more than $250 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 Loans, should contact the State Revolving Fund Loan Program, Tennessee Tower, 12th Floor, 312 Rosa L. Parks Avenue, 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.