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Lee, TDEC Announce $44.1 Million in Loans for Nashville Water Infrastructure Improvements

Thursday, May 21, 2020 | 02:40pm

Tennessee Gov. Bill Lee and the Tennessee Department of Environment and Conservation (TDEC) Commissioner David Salyers today announced three loans totaling $44.1 million for the Metropolitan Government of Nashville and Davidson County to improve water infrastructure.

The three loans for Nashville are among six approved by the Tennessee Local Development Authority, with a loan for the Town of Caryville and the Caryville-Jackson Utilities Commission for $493,000 and two loans for the Town of Huntland totaling $3.9 million, making the six loans total $48.5 million.

“Loans from this program address important infrastructure needs in communities across Tennessee,” Lee said. “We look forward to the improvements this assistance will bring.”

“These loans enhance quality of life,” Salyers said. “We are pleased we can provide this help, which should have a big impact in these communities.” 

The loans for Nashville include:

  • A $5 million loan from the Drinking Water State Revolving Fund. This project is a green project based on eligibility requirements established by the EPA, with at least 20 percent of the total project cost dedicated to eligible green components. The loan addresses water distribution system improvements. It has a 20-year term at 0.65 percent interest. The Metropolitan Government of Nashville and Davidson County received an interest rate reduction of 0.3 percent for meeting the EPA green project eligibility requirements.
  • A $27,493,000 loan, also for the green project, from the Drinking Water State Revolving Fund Program to address water distribution system improvements. This loan has a 20-year term at .95 percent interest.
  • A loan for $11.6 million from the Clean Water State Revolving Fund Program to address infiltration and inflow correction within the Shelby Park Sewer Basin. The loan has a 20-year term at .95 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 $37,374,000 in drinking water loans and $150,479,900 in clean water loans to meet the state’s infrastructure needs. During fiscal year 2019, TDEC awarded $13,345,300 in drinking water loans and $83,324,500 in clean water loans for a total of $96,669,800.

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.