Governor Bill Haslam and Tennessee Department of Environment and Conservation (TDEC) Commissioner Bob Martineau announced that nine communities and one Wastewater Authority have been approved to receive more than $34.9 million in low-interest loan for water and wastewater infrastructure improvements. Several of the loans will go to the city of Chattanooga and Hamilton County.
Local projects include:
City of Chattanooga (Hamilton County) – The City of Chattanooga will receive $1,000,000 for a Moccasin Bend Wastewater Treatment Plant Improvements project. The project will be funded with a 20-year, $900,000 loan with an interest rate of 1.53 percent and $100,000 in principal forgiveness that will not have to be repaid.
City of Chattanooga (Hamilton County) – The City of Chattanooga will also receive $17,100,000 for the Moccasin Bend Wastewater Treatment Plant Improvements project. The project will be funded with a 20-year, $17,100,000 loan with an interest rate of 1.53 percent.
Hamilton County Water and Wastewater Treatment Authority (Hamilton County) – The Hamilton County WWTA will receive $7,310,000 for the East Ridge Sewer Basin I/I Correction Project. The project will be funded with a 20-year, $7,310,000 loan with an interest rate of 1.74 percent.
Hamilton County WWTA (Hamilton County) – The Hamilton County WWTA will also receive a $1,560,000 planning and design loan relative to Sanitary Sewer Evaluation Survey and I/I Correction in Signal Mountain, Red Bank, Lookout Mountain, East Ridge, and unincorporated Hamilton County areas. The project will be funded with a 5-year, $1,560,000 loan with an interest rate of 0.82 percent.
City of Cleveland (Bradley County) – The City of Cleveland will receive $430,000 for a Water Distribution System Improvements project, including a drinking water storage tank and pump station. The project will be funded with a 20-year, $430,000 loan with an interest rate of 1.31 percent.
“The State Revolving Fund Loan Program provides support for infrastructure needs in communities across the state, which leads to cleaner water and a better quality of life,” said Haslam.
Earlier this month Governor Haslam announced the formation of a steering committee to develop a statewide plan for future water availability.
Known as TN H2O, the plan will include an assessment of the state’s current water resources and recommendations to help ensure Tennessee has an abundance of water resources to support future population and economic growth.
“This fund provides an opportunity for TDEC to help local communities provide clean drinking water for their residents,” Commissioner Martineau said. “Financial support is one tool the state can use to help ensure Tennessee’s water resources are preserved for future generations.”
Through Tennessee’s State Revolving Fund Loan Program (SRF), 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.
Tennessee’s Clean Water SRF Program has awarded more than $1.9 billion in low-interest loans since its inception in 1987. Tennessee’s Drinking Water SRF Program has awarded more than $302.2 million in low-interest loans since its inception in 1996.
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. 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.
Other recipients were:
City of Fayetteville (Lincoln County) – The City of Fayetteville will receive $1,000,000 for a city wide I/I Correction project. The project will be funded with a 20-year, $900,000 loan with an interest rate of 1.31 percent and $100,000 in principal forgiveness that will not have to be repaid.
City of Lenoir City (Loudon County) – The City of Lenoir City will receive $1,300,000 for an I/I Correction and Collection System Rehabilitation project.The project will be funded with a 20-year, $1,105,000 loan with an interest rate of 1.24 percent and $195,000 in principal forgiveness that will not have to be repaid.
City of Fayetteville (Lincoln County) – The City of Fayetteville will also receive $3,000,000 for a City wide I/I Correction project. The project will be funded with a 20-year, $3,000,000 loan with an interest rate of 1.31 percent.
City of Humboldt (Gibson County) – The City of Humboldt will receive $540,000 for Wastewater Treatment Plant Renovations and Improvements planning and design loan. The project will be funded with a 5-year, $540,000 loan with an interest rate of 0.29 percent.
Town of Oliver Springs (Anderson, Roane and Morgan Counties) – The Town of Oliver Springs will receive $185,000 for a Wastewater Treatment PlantImprovements project. The project will be funded with a 20-year, $185,000 loan with an interest rate of 0.61 percent.
City of Westmoreland (Sumner County) – The City of Westmoreland will receive a $210,000 planning and design loan relative to Wastewater Treatment Plant Improvements. The project will be funded with a 5-year, $210,000 loan with an interest rate of 0.11 percent.
Town of Brighton (Tipton County) – The Town of Brighton will receive $698,400 for Water Main Replacements project. The project will be funded with a20-year, $558,720 loan with an interest rate of 0.39 percent and $139,680 in principal forgiveness that will not have to be repaid.
Town of Parsons (Decatur County) – The Town of Parsons will receive $587,000 for a Water Treatment Plant Improvements project including additional flocculation and sedimentation basins as well as modifications to the disinfection treatment processes. The project will be funded with a 20-year, $587,000 loan with an interest rate of 0.82 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 https://www.tn.gov/environment/program-areas/wr-water-resources/water-quality/state-revolving-fund-program.html.