Tennessee awards more than $8.2 million in low-interest water, wastewater construction loans
NASHVILLE—Tennessee Gov. Bill Haslam and Department of Environment and Conservation Commissioner Bob Martineau on Tuesday announced that one community and one utility district have been approved to receive more than $8.2 million in low-interest loans for water and wastewater infrastructure improvements.
Oak Ridge received a $3 million state wastewater loan.
“It’s great to see local governments using this important program to help address critical drinking water and wastewater needs,” Haslam said in a press release. “Making these infrastructure improvements will benefit the health of these communities and economic growth.”
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, the press release said.
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 using U.S. Environmental Protection Agency grant funds can include a principal forgiveness component for water and wastewater projects.
“The State Revolving Fund Loan Program is a community investment to improve environmental and public health, while helping local communities move forward to 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 EPA provides grants to fund the program, and the state provides a 20 percent match, the press release said. Loan repayments are returned to the program and are used to fund future SRF loans.
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.
A drinking water loan was announced Tuesday for the following recipient:
- DeKalb Utility District (Cannon, Smith, and Wilson Counties)—The DeKalb UD will receive $2.5 million for a project that includes new water intake, raw water transmission line, water treatment plant, and finished water transmission and extension lines for distribution to the existing system project. The project will be funded with a 20-year, $2 million loan with an interest rate of 0.60 percent and $500,000 in principal forgiveness that will not have to be repaid.
A traditional wastewater loan was announced for the following recipient:
- City of Oak Ridge (Anderson and Roane Counties)—The City of Oak Ridge will receive $3 million for a project that includes engineering and inspection fees for the Turtle Park 1 and equalization basins projects and construction for the Turtle Park 1 and West End 1 projects. The project will be funded for 20 years, with the interest rate of 1.73 percent.
A traditional drinking water loan was announced or the following recipient:
- DeKalb Utility District (Cannon, Smith, and Wilson Counties)—The DeKalb UD will receive $2.75 million for a project that includes new water intake, raw water transmission line, water treatment plant, and finished water transmission and extension lines for distribution to the existing system project. The project will be funded with a 20-year, $2.75 million loan with an interest rate of 0.60 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, the press release said. Since its inception in 1996, Tennessee’s Drinking Water State Revolving Fund Loan Program has awarded more than $223 million in low-interest loans. Both programs combined award more than $80 million annually to Tennessee’s local governments for water and wastewater infrastructure projects.
Leave a Reply