Lee, TDEC Announce $19 Million Loan for Chattanooga Water Improvements
Gov. Bill Lee and Commissioner David Salyers of the Tennessee Department of Environment and Conservation (TDEC) today announced a $19 million loan for the City of Chattanooga to improve water infrastructure.
The loan is one of four approved by the Tennessee Local Development Authority, with loans for the Ocoee Utility District, Hiwassee Utilities Commission-Bradley County, and the Hiwassee Utilities Commission-McMinn County totaling $22.9 million.
“We are pleased to announce these loans as a way to make water infrastructure more affordable in local communities across Tennessee,” said Lee. “We are glad to assist Chattanooga and look forward to the improvements that will result from this program.”
“The State Revolving Fund Loan Program is an example of working with communities to meet important needs,” Salyers said. “This assistance will help make vital infrastructure happen, and we are glad these loans can be made available.”
The City of Chattanooga’s loan comes from the Clean Water State Revolving Fund Loan Program. The loan will address improvements to the wastewater treatment system and infiltration and inflow correction within the sewer collection system. The loan has a 20-year term at 0.88 percent interest.
Through the State Revolving Fund Loan Program, communities, utility districts, and water and wastewater authorities can obtain loans with lower interest rates than through private financing. These low interest rate loans can vary from zero percent to below market rate, based on each community’s economic health.
This fiscal year, TDEC has awarded $5.6 million in drinking water loans and $79.2 million in clean water loans to meet the state’s infrastructure needs. During fiscal year 2021, TDEC awarded $7,171,000 in drinking water loans and $77,568,000 in clean water loans for a total of $84,739,000.
Tennessee’s Clean Water State Revolving Fund Loan Program has awarded more than $2 billion in low-interest loans since its inception in 1987. The state’s Drinking Water State Revolving Fund Loan Program has awarded more than $300 million in low-interest loans since its inception in 1996.