Bredesen Announces Recovery Act Funding for City of Crossville
Thursday, November 12, 2009 | 05:11am
Award Represents Final State Revolving Fund Project to Use Recovery Act Funding
NASHVILLE – Governor Phil Bredesen and Department of Environment and Conservation Commissioner Jim Fyke announced today a $5 million low-interest loan for the city of Crossville in Cumberland County. The loan is funded through a combination of the American Recovery and Reinvestment Act of 2009 and the State Revolving Fund loan program, and will fund a drinking water construction project. Forty percent of the funding is in the form of principal forgiveness, which does not have to be repaid.
This award represents the final project to be awarded Recovery Act funding through the State Revolving Fund in Tennessee.
“The Recovery Act has provided funding that will help communities fund 38 drinking water and wastewater infrastructure improvements across the state, benefitting public health and the environment,” said Bredesen. “The principal forgiveness provision of the Recovery Act is an important aspect of the program, allowing communities to begin projects even during these difficult economic times.”
Crossville will receive $5 million to harvest raw water from Lake Tansi and construct a water line to transfer the water into Meadow Park Lake and to the Meadow Park Water Treatment Plant serving the city of Crossville. This project will be funded with a 20-year, $3 million loan with an interest rate of 2.83 percent and $2 million in principal forgiveness that will not have to be repaid.
This drinking water loan is in addition to $5 million in funding already approved for the city of Crossville for wastewater treatment plant improvements.
“The vital Reinvestment Act dollars for water infrastructure improvements will greatly aid in protecting the health and safety of thousands of folks working and living in Crossville,” said U.S. Representative Lincoln Davis. “As someone who has spent his whole life in rural Tennessee and understands our needs, it pleases me to see that the economic recovery and reinvestment dollars are being used to help fund this worthwhile project and stimulate local job growth in our communities.”
The Tennessee Department of Environment and Conservation administers the State Revolving Fund Loan Program in conjunction with the Tennessee Local Development Authority. For the calendar year 2009, EPA provided $77 million in Recovery Act funding for the loan program and the state was not required to provide matching funds. In order to extend Recovery Act funding to a larger group of projects, however, Tennessee combined it with an equal amount of funding from the existing State Revolving Fund, which by law, cannot be used for another purpose.
“I am always pleased to see local governments and utility districts access this program to help finance the planning, design and construction of water and wastewater facilities,” said Fyke. “Investments in our drinking water and wastewater systems are vital to the health of our communities, and we look forward to working with communities to move forward with these important projects.”
The Tennessee General Assembly supported statutory changes allowing the debt forgiveness provision, which was required to receive Recovery Act funding from the U.S. Environmental Protection Agency through the State Revolving Fund program.
“This program allows important water and wastewater projects to move forward, protecting both Tennessee waters and public health,” said Senator Charlotte Burks. “Not only does it provide communities like Crossville with loans at interest rates lower than most could get through private financing, under the Recovery Act this year, 40 percent of the project costs are covered through the debt forgiveness provision.”
This is the last grant/loan expected to be approved under the State Revolving Fund program using Recovery Act funding. The previously announced projects can be found at:
Additional information about the State Revolving Fund Loan Program can be found at www.tn.gov/environment/srf.
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