Bredesen Announces Recovery Act Funds for Water Projects
Wednesday, July 15, 2009 | 04:55am
EPA Awards $77 Million for Clean Water and Drinking Water Projects Across Tennessee
NASHVILLE – Governor Phil Bredesen and Department of Environment and Conservation Commissioner Jim Fyke announced today that the U.S. Environmental Protection Agency has awarded Tennessee $77 million through the American Recovery and Reinvestment Act for clean water and drinking water projects across the state.
The ARRA funding will allow the Tennessee Department of Environment and Conservation to make a combination of low-interest loans and grants to Tennessee communities through the State Revolving Fund loan program for infrastructure improvements to wastewater and drinking water systems. In addition, the state will receive $458,806 to implement water quality management planning projects. These projects include grants to three Tennessee development districts to conduct green infrastructure needs analysis for communities to use in future State Revolving Fund efforts.
“I’m pleased to be able to provide Tennessee communities with the funding they need to make critical drinking water and wastewater infrastructure improvements,” said Bredesen. “These Recovery Act funds will have a direct and positive impact on the quality of water Tennesseans rely on and enjoy.”
Tennessee received nearly $57 million from EPA for the Clean Water State Revolving Fund to fund planning, design and construction of wastewater facilities and more than $20 million for the Drinking Water State Revolving Fund to fund planning, design and construction of drinking water facilities. By leveraging Recovery Act funds with existing SRF loan funding, Environment and Conservation will be providing 40 percent of the funding communities receive as principle forgiveness that does not need to be repaid. The remaining 60 percent will be in the form of a low-interest loan. The debt forgiveness or grant provision is a requirement of the Recovery Act and was made possible by the Tennessee General Assembly’s passage of HB2294.
“The debt forgiveness provision of these Recovery Act State Revolving Fund loans is vital, as it allows communities to accomplish this important work during difficult economic times,” added Fyke. “We look forward to working with our local partners to get this work started.”
Now that the federal funding is in place, the department will send application packages to eligible communities. The completed application packages must be approved by the Tennessee Local Development Authority prior to recipients receiving funding.
There are extensive reporting requirements for ARRA in addition to the requirements of the State Revolving Fund program. Additionally, all ARRA funds through the SRF program must be obligated by Feb. 17, 2010, and utilities, water authorities or communities must have a signed construction contract or must have begun construction by the same date.
Information on this program, including the list of prioritized SRF projects across Tennessee and details about the water quality management planning projects, is available at Tennessee Department of Environment and Conservation Recovery Act Web page at www.tn.gov/environment/recovery.
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