Water and Wastewater Construction Loans Awarded
Low-Interest Loans Help Fund Infrastructure Improvements
NASHVILLE – Governor Bill Haslam and Department of Environment and Conservation Commissioner Bob Martineau announced today that six communities, one county, two joint county/utility district projects, and one utility district have been approved to receive low-interest loans for water and wastewater infrastructure improvements.
“The State Revolving Fund Loan Program aids communities in addressing their current infrastructure needs, and helps to prepare for future needs,” said Haslam. “These water and wastewater projects help to foster healthy communities that can continue to grow.”
The 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.
The Department of Environment and Conservation administers the State Revolving Fund 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.
Through the SRF Loan 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. In addition, loans utilizing this year’s EPA grant funds include 20 percent principal forgiveness.
“Community investments in our drinking water and wastewater systems are vital to maintaining environmental and public health,” said Martineau. “These loans will help keep our communities moving forward, and the principal forgiveness provision helps local communities accomplish this work in difficult economic times.”
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.
SRF Wastewater Loans were approved for the following recipients:
City of Lewisburg (Marshall County) – The city of Lewisburg will receive $10 million for a green project that includes wastewater treatment plant upgrades and expansion from three million gallons per day to six million gallons per day, including sludge processing to convert from a Class B to a Class A facility. The project will be funded with a 20-year, $8 million loan with an interest rate of 2.43 percent and $2 million in principal forgiveness that will not have to be repaid.
City of Spring Hill (Maury/Williamson Counties) – The city of Spring Hill will receive $10 million for a green project that includes a wastewater treatment plant upgrade and expansion from two million gallons per day to five million gallons per day. The project will be funded with a 20-year, $8 million loan with an interest rate of 2.62 percent and $2 million in principal forgiveness that will not have to be repaid.
City of White House (Robertson/Sumner Counties) – The city of White House will receive $969,000 for a green project that includes collection system rehabilitation and replacement consisting of the rehabilitation of the low-pressure sewer collection system and the replacement of the motor control center. The project will be funded with a 20-year, $775,200 loan with an interest rate of 1.88 percent and $193,800 in principal forgiveness that will not have to be repaid.
SRF Drinking Water Loans were approved for the following recipients:
City of Alcoa (Blount County) – The city of Alcoa will receive $5 million for a green project that includes replacement of water storage reservoirs with energy efficient, solar-powered mixing and water- loss elimination components. The project will be funded with a 20-year, $4 million loan with an interest rate of 3.4 percent and $1 million in principal forgiveness that will not have to be repaid.
City of Erwin (Unicoi County) – The city of Erwin will receive $500,000 for a project that includes a railroad well water treatment plant upgrade. The project will be funded with a 20-year, $400,000 loan with an interest rate of 2.42 percent and $100,000 in principal forgiveness that will not have to be repaid.
Giles County/Fairview Utility District (Giles County) – The Giles County/Fairview Utility District will receive $1.25 million for a project that includes waterline extension in the Fairview Utility District service area. The project will be funded with a 20-year, $1 million loan with an interest rate of 1.53 percent and $250,000 in principal forgiveness that will not have to be repaid.
Giles County/Minor Hill Utility District (Giles County) – The Giles County/Minor Hill Utility District will receive $3 million for a project that includes waterline extension Phase 2 and 3. The project will be funded with a 20-year, $2.4 million loan with an interest rate of 1.62 percent and $600,000 in principal forgiveness that will not have to be repaid.
Griffith Creek Utility District (Marion/Grundy/Sequatchie Counties) – The Griffith Creek Utility District will receive $750,000 for a project that includes water system improvements at the Hwy 108 booster station, a new 150,000-gallon water storage tank, and two pressure-reducing valve stations on Pocket Road to replace the existing single station. The project will be funded with a 20-year, $600,000 loan with a zero percent interest rate and $150,000 in principal forgiveness that will not have to be repaid.
The following traditional Wastewater Loans were approved for the following recipients:
Henderson County – Henderson County will receive $464,851 as an increase to an existing $1.46 million, 20-year loan with an interest rate of 1.38 percent, for a project that includes wastewater treatment system improvements and upgrades to eliminate surface water discharges at four county schools.
City of Humboldt (Gibson County) – The city of Humboldt will receive a $1.32 million, 20-year loan with an interest rate of 1.5 percent, for a project that includes replacement of the Hawks Loop and West Main Street sewer lines.
City of Lewisburg (Marshall County) – The city of Lewisburg will receive a $2 million, 20-year loan with an interest rate of 2.43 percent for a green project that includes a wastewater treatment plant upgrade and expansion from three million gallons per day to six million gallons per day, including sludge processing to convert from a Class B to a Class A facility. This is a traditional SRF loan that supplements a $10 million, 20-year loan, which is being funded with the fiscal year 2010 EPA Capitalization Grant funding that includes principal forgiveness of 20 percent.
City of Spring Hill (Maury/Williamson Counties) – The city of Spring Hill will receive a $7.2 million, 20-year loan with an interest rate of 2.62 percent for a green project that includes a wastewater treatment plant upgrade and expansion from two million gallons per day to five million gallons per day. This is a traditional SRF loan that supplements a $10 million, 20-year loan, which is being funded with the fiscal year 2010 EPA Capitalization Grant funding that includes principal forgiveness of 20 percent.
Traditional loans do not include the 2010 EPA funding or the principal forgiveness provision.
Since its inception in 1987, Tennessee’s Clean Water State Revolving Fund Loan Program has awarded more than $1.14 billion in low-interest loans. Since its inception in 1996, Tennessee’s Drinking Water State Revolving Fund Loan Program has awarded over $173 million in low-interest loans. Combined, these programs award approximately $75 million annually to Tennessee’s local governments for water and wastewater infrastructure projects.
Any local government interested in the SRF Loan Program should contact the State Revolving Fund Loan Program, L&C Tower, 8th Floor, 401 Church Street, 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.
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