More Than $22 Million in Water and Wastewater Construction Loans Awarded

Thursday, August 17, 2017 | 1:26pm

Tennessee Gov. Bill Haslam and Tennessee Department of Environment and Conservation (TDEC) Commissioner Bob Martineau today announced that two communities, one utility district and one water authority have been approved to receive more than $22 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,” said Haslam.

Tennessee’s Clean Water State Revolving Fund Loan Program has awarded more than $1.8 billion in low-interest loans since its inception in 1987. Tennessee’s Drinking Water State Revolving Fund Loan Program has awarded more than $300.5 million in low-interest loans since its inception in 1996.

“Clean water is the lifeblood of our communities,” Martineau said. “Investments in our drinking water are essential to maintaining environmental and public health.”

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.

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.

Three Wastewater Loans were announced today for the following recipients:

Hallsdale-Powell Utility District (Knox County) - Hallsdale-Powell Utility District will receive $1 million for the Beaver Creek Interceptor Improvement Project. The project includes the replacement of approximately 11,500 linear feet (LF) of 36-inch diameter interceptor sewer with a new 48-inch diameter interceptor sewer and new manholes; rehabilitation/replacement of approximately 16,700 LF of 6-inch through 24-inch diameter existing collector sewers and associated manholes; and the installation of approximately 425 LF of new collector sewer and associated manholes. The project will be funded with a 20-year, $900,000 loan with an interest rate of 1.93% and $100,000 in principal forgiveness that will not have to be repaid.

Town of Troy (Obion County) - Town of Troy will receive $625,725 for an Infiltration & Inflow Corrections and Collection System Rehabilitation project. The project will be funded with a 20-year, $531,866 loan with an interest rate of 0.81% and $93,859 in principal forgiveness that will not have to be repaid

Water Authority of Dickson County (Dickson County) - Water Authority of Dickson County will receive $1,340,185 for a Water Meter Replacements project. The proposed new water meters will be automatic reading meters, which will result in substantial energy costs savings. The project will be funded with a 20-year, $268,037 loan with an interest rate of 1.03% and $1,072,148 in principal forgiveness that will not have to be repaid.

Two Traditional Wastewater Loans were announced today for the following recipients:

Hallsdale-Powell Utility District (Knox County) - Hallsdale-Powell Utility District will also receive $12,100,000 for the Beaver Creek Interceptor Improvement project.  The project includes the replacement of approximately 11,500 linear feet (LF) of 36-inch diameter interceptor sewer with a new 48-inch diameter interceptor sewer and new manholes, rehabilitation/replacement of approximately 16,700 LF of 6-inch through 24-inch diameter existing collector sewers and associated manholes, and the installation of approximately 425 LF of new collector sewer and associated manholes.  The project will be funded with a 20-year, $12,100,000 loan with an interest rate of 1.93%.

Water Authority of Dickson County (Dickson County) - Water Authority of Dickson County will also receive $4,059,815 for the Water Meter Replacements project described above. The project will be funded with a 20-year, $4,059,815 loan with an interest rate of 1.03%.

Two Drinking Water Loans were announced today for the following recipients:

The City of Paris (Henry County) - The City of Paris will receive $1,000,000 for a Water Treatment Plant Improvements project (Phase I).  The project will be funded with a 20-year, $800,000 loan with an interest rate of 1.18% and $200,000 in principal forgiveness that will not have to be repaid.

Town of Troy (Obion County) - Town of Troy will receive $699,950 for Water System Improvements.  The project will be funded with a 20-year, $524,962 loan with an interest rate of 0.39% and $174,988 in principal forgiveness that will not have to be repaid

Two Traditional Drinking Water Loans were announced today for the following recipients:

The City of Paris (Henry County) – The City of Paris will also receive $750,000 for Water Treatment Plant Improvements and Volunteer Drive Water Tank Rehabilitation.  The project will be funded with a 20-year, $750,000 loan with an interest rate of 1.18%.

The City of Paris (Henry County) – The City of Paris will also receive $500,000 for Water Treatment Plant Improvements (Phase II).  The project will be funded with a 20-year, $500,000 loan with an interest rate of 1.18%.

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 www.tn.gov/environment/srf