Tennessee Gov. Bill Haslam and Tennessee Department of Environment and Conservation Commissioner Bob Martineau announced that five communities and one Water and Wastewater Authority have been approved to receive more than $60 million in low-interest loans for water and wastewater infrastructure improvements.
“It is important for our communities to address current infrastructure needs and prepare for future needs,” Gov.
Haslam said. “The funds available through the State Revolving Fund Loan Programs help fulfill these needs while protecting public health.”
The low-interest loans are channeled through two separate programs: Tennessee’s Clean Water State Revolving Fund Loan Program (CWSRF) and Tennessee’s Drinking Water State Revolving Fund Loan Program (DWSRF). 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 $284 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.
“These loans will keep our communities moving forward,” Martineau said. “The loans and principal forgiveness help fulfill infrastructure needs that will protect public health and help communities foster economic development, especially in rural communities.”
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.
The Tennessee 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.
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.
Wastewater loans from federal cap grants were announced for the following recipients:
The City of Franklin (Williamson County)-The City of Franklin will receive $1,822,741 for a new system-wide SCADA (Supervisory Control and Data Acquisition) system. SCADA is a system for remote monitoring that enhances water and wastewater system oversight and control. The project will be funded with a 15-year, $1,822,741 loan with an interest rate of 0.89%.
The City of Greenbrier (Robertson County)-The City of Greenbrier will receive $1,500,000 for a Wastewater Treatment Plant Upgrades project. The project will be funded with a 20-year, $1,275,000 loan, with an interest rate of 0.32%, and $225,000 in principal forgiveness that will not have to be repaid.
Jackson Energy Authority (Madison County)-The Jackson Energy Authority will receive $2,000,000for an Infiltration and Inflow Correction project. The project will be funded with a 20-year, $2,000,000 loan with an interest rate of 1.25%.
Traditional low-interest wastewater loans were announced for the following recipients:
The City of Chattanooga (Hamilton County)-The City of Chattanooga will receive $42,500,000 for a WWTP Improvements and Collection System Rehabilitation project. The project will be funded with a 20-year, $42,500,000 loan with an interest rate of 1.29%.
The City of Franklin (Williamson County)-The City of Franklin will receive an additional $1,677,259for a new system-wide SCADA (Supervisory Control and Data Acquisition) system. SCADA is a system for remote monitoring that enhances water and wastewater system oversight and control. The project will be funded with a 15-year, $1,677,259 loan with an interest rate of 0.89%.
The City of Greenbrier (Robertson County)-The City of Greenbrier will receive an additional$2,227,000 for a Wastewater Treatment Plant Upgrades project. The project will be funded with a 20-year, $2,227,000 loan with an interest rate of 0.32%.
Traditional drinking water loans were announced for the following recipients:
The City of Cleveland (Bradley County) – The City of Cleveland will receive $3,725,000 for a new water transmission main project. The project will be funded with a 20-year, $3,725,000 loan with an interest rate of 1.11%.
The City of Fayetteville (Lincoln County) – The City of Fayetteville will receive $5,050,000 for a water distribution system improvements project. The project will be funded with a 20-year, $5,050,000 loan with an interest rate of 1.12%.
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.