The City of Oak Ridge has received a $2 million state wastewater loan, officials said Friday.
The loan is for the city’s Infiltration and Inflow Correction project. It will be used to rehabilitate approximately 30,000 linear feet of sewer line, a state press release said. The project will be funded with a 20-year, $1,860,000 loan with an interest rate of 1.89 percent and $140,000 in principal forgiveness that will not have to be repaid, Tennessee officials said.
The loan was announced Friday by Tennessee Governor Bill Haslam and Tennessee Department of Environment and Conservation Commissioner Bob Martineau. They said that three communities have been approved to receive more than $9.3 million in low-interest loans for water and wastewater infrastructure improvements.
“The State Revolving Fund Loan Program helps citizens enjoy a better quality of life by assisting communities with current and future infrastructure needs for improved environmental health,” Haslam said.
Tennessee’s Clean Water State Revolving Fund Loan Program has awarded more than $1.7 billion in low-interest loans since its inception in 1987, the press release said. Tennessee’s Drinking Water State Revolving Fund Loan Program has awarded more than $296.2 million in low-interest loans since its inception in 1996.
“Drinking water infrastructure is a priority for TDEC and the residents of Tennessee,” Martineau said. “This program enables local communities to provide this vital resource year after year.”
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 Environmental Protection Agency grant funds can include a principal forgiveness component.
TDEC administers the SRF Program 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, 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 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.
Here are the recipients of the two wastewater loans:
- The City of Oak Ridge (Anderson and Roane counties)—The City of Oak Ridge will receive $2,000,000 for an Infiltration and Inflow Correction project, which will rehabilitate approximately 30,000 LF of sewer line. The project will be funded with a 20-year, $1,860,000 loan with an interest rate of 1.89 percent and $140,000 in principal forgiveness that will not have to be repaid.
- The City of Paris (Henry County)—The City of Paris will receive $1,500,000 for a WWTP Improvements and Collection System Rehabilitation project. The project will be funded with a 30-year, $1,275,000 loan with an interest rate of 1.48 percent and $225,000 in principal forgiveness that will not have to be repaid.
A traditional wastewater loan was announced for the following recipient:
- The City of Paris (Henry County)—The City of Paris will also receive $3,600,000 for a WWTP Improvements and Collection System Rehabilitation project. The project will be funded with a 30-year, $3,600,000 loan with an interest rate of 1.48 percent.
A drinking water loan was announced for the following recipient:
- The City of Parsons (Decatur County)—The City of Parsons will receive $1,000,000 for a Water Treatment Plant Upgrades and Improvements project. The project will be funded with a 20-year, $800,000 loan with an interest rate of 0.94 percent and $200,000 in principal forgiveness that will not have to be repaid.
A traditional drinking water loan was announced for the following recipient:
- The City of Parsons (Decatur County)—The City of Parsons will receive $1,250,000 for a Water Treatment Plant Upgrades and Improvements project. The project will be funded with a 20-year, $1,250,000 loan with an interest rate of 0.94 percent.
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 http://tn.gov/environment/topic/wr-srf-state-revolving-fund-program#sthash.XRnskyKu.dpuf.
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