More Than $77.4 Million in Water and Wastewater Construction Loans Awarded
NASHVILLE – Tennessee Gov. Bill Haslam and Department of Environment and Conservation Commissioner Bob Martineau today announced that two communities and one utility district have been approved to receive more than $77.4 million in low-interest loans for water and wastewater infrastructure improvements.
“I am pleased to see local governments using this important program to help address critical drinking water and wastewater needs, making infrastructure improvements that will benefit the health of these communities and economic growth,” Haslam said.
The State Revolving Fund (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.
Through the SRF 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. Loans utilizing EPA grant funds can include a principal forgiveness component for water and wastewater projects.
“The State Revolving Fund Loan Program is a community investment to help maintain environmental and public health, while helping local communities prepare for future needs,” Martineau said.
The Department of Environment and Conservation administers the SRF 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.
Wastewater Loans were announced today for the following recipient:
Hallsdale-Powell Utility District (Knox County) – The Hallsdale-Powell Utility District will receive $4,000,000 for a project that includes Green-Infiltration and Inflow Correction (Phase I- Construction of the Dry Gap Overflow Storage Tank and planning for the Norris, Pebble Creek and Railroad Overflow Storage Tanks). The project will be funded with 20-year loan of $3,800,000 with an interest rate of 1.74% and $200,000 in principal forgiveness that will not have to be repaid.
Hallsdale-Powell Utility District (Knox County) – The Hallsdale-Powell Utility District will also receive $4,116,400 for the project that includes Green- Infiltration and Inflow Correction (Phase I- Construction of the Dry Gap Overflow Storage Tank and planning for the Norris, Pebble Creek and Railroad Overflow Storage Tanks). The project funding will be a 20-year loan with an interest rate of 1.74%.
A Drinking Water Loan was announced today for the following recipient:
Athens (McMinn County) – The City of Athens will receive $2,550,000 for a project that includes the construction of a 12-inch raw water line from the raw water pump station to an existing one million gallon storage tank, water treatment improvements and a 12-inch distribution main. The project will be funded with a 20-year loan of $2,040,000 with an interest rate of 1.69 percent and $510,000 in principal forgiveness that will not have to be repaid.
A traditional Wastewater Loan was announced today for the following recipient:
City of Chattanooga (Hamilton County) – The City of Chattanooga will receive $66,800,000 for a project that includes WWTP Improvements - Advanced Treatment (Replacing / Upgrading influent pumps); Collection System Rehab (Friars Branch and Du Pont Pump Station & Sewer Rehab; Collegedale and Orchard Knob Pump Station Improvements; Chattanooga Creek 4, Dobbs Branch 3, South Chattanooga Creek 1 & 5 Tannery Flats, Chattanooga Creek Interceptor, and Highland Park Sewer Basins). The project funding will be a 20 year loan with an interest rate of 1.67 percent.
Since its inception in 1987, Tennessee’s Clean Water State Revolving Fund Loan Program has awarded more than $1.5 billion in low-interest loans. Tennessee’s Drinking Water State Revolving Fund Loan Program has awarded more than $228 million in low-interest loans since 1996. Both programs combined award more than $80 million annually to Tennessee’s local governments for water and wastewater infrastructure projects.
Any local government interested in the SRF Loans, should contact the State Revolving Fund Loan Program, Tennessee Tower, 12th Floor, 312 Rosa L. Parks Avenue, 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.