Tennessee Governor Bill Haslam and Tennessee Department of Environment and Conservation (TDEC) Commissioner Bob Martineau last week announced that two communities and three utility districts have been approved to receive more than $12.1 million in low-interest loans for water infrastructure improvements. 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 State Revolving Fund Loan Program helps communities address current infrastructure needs and prepare for future needs, improving the health of our communities and their ability to grow,” Haslam 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 utilizing EPA grant funds can include a principal forgiveness component.
“Community investments in our drinking water and wastewater systems are vital to maintaining environmental and public health,” Martineau said. “These loans will help keep our communities moving forward, and the principal forgiveness provisions help local communities accomplish this work in difficult economic times.”
TDEC 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.
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.
Drinking Water Loans were announced last week for the following recipients:
Cookeville Boat Dock Road Utility District (Putnam County) – The Cookeville Boat Dock Road Utility District will receive $750,000 for a Green – Waterline Replacements project. The project will be funded with a 20-year, $562,500 loan, with an interest rate of 1.22%, and $187,500 in principal forgiveness that will not have to be repaid.
First Utility District of Tipton County (Tipton County) – The First Utility District of Tipton County will receive $843,602 for a new 300,000 gallon elevated water storage tank. The project will be funded with a 20-year, $632,701 loan, with an interest rate of 0.73%, and $210,901 in principal forgiveness that will not have to be repaid.
City of Lebanon (Wilson County) – The City of Lebanon will receive $904,000 for water distribution system improvements (WL extensions along Franklin Road/Holloway Drive/Legends Drive, and Briskin Lane). The project will be funded with a 20-year, $587,600 loan, with an interest rate of 1.71%, and $316,400 in principal forgiveness that will not have to be repaid.
City of Paris (Henry County) – The City of Paris will receive $2,500,000 for WTP improvements and Volunteer Drive water tank rehabilitation. The project will be funded with a 20-year, $1,875,000 loan, with an interest rate of 1.29%, and $625,000 in principal forgiveness that will not have to be repaid.
Traditional Drinking Water Loans were announced today for the following recipients:
DeKalb Utility District (DeKalb, Cannon, Smith, and Wilson Counties) – DeKalb Utility District will receive a loan increase of $4,250,000 for Construction of a new water treatment plant with a new water intake, raw water transmission and finished water transmission lines to connect to the existing water distribution system These additional funds will increase the total loan to $7,000,000. The project will be funded for a 20-year term with an interest rate of 0.60%.
First Utility District (Tipton County) – First Utility District will receive $686,833 for a new 300,000 gallon elevated water storage tank. This loan will be funded for a 20-year term with an interest rate of 0.73%.
City of Lebanon (Wilson County) – The City of Lebanon will receive $1,217,000 for water distribution system improvements (WL extensions along Franklin Road/Holloway Drive/Legends Drive, and Briskin Lane). The project will be funded with a 20-year, $686,833 loan with an interest rate of 1.71%.
City of Paris (Henry County) – The City of Paris will receive $950,000 for WTP improvements and Volunteer Drive water tank rehabilitation. The project will be funded with a 20-year, $950,000 loan with an interest rate of 1.29%.
Since its inception in 1987, Tennessee’s Clean Water State Revolving Fund Loan Program has awarded more than $1.6 billion in low-interest loans. Since its inception in 1996, Tennessee’s Drinking Water State Revolving Fund Loan Program has awarded more than $270 million in low-interest loans. Both programs combined award more than $90 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.
