For immediate release March 28, 2006

WATER AND WASTEWATER CONSTRUCTION LOANS AWARDED
NINE COMMUNITIES RECEIVE LOW-INTEREST LOANS TO MAKE INFRASTRUCTURE IMPROVEMENTS

Nashville, Tenn. - Governor Phil Bredesen has announced that nine communities and utility districts will receive low-interest loans totaling more than $55 million through the State Revolving Fund (SRF) Loan Program to fund much-needed water and wastewater construction projects. The Department of Environment and Conservation administers the SRF program for the State of Tennessee.

SRF recipients, whose loan amounts and projects are detailed below, include Maury County, Ocoee Utility District, West Cumberland Utility District, Hallsdale-Powell Utility District, Hendersonville Utility District, and the cities of Englewood, Ripley, Rockwood and Sweetwater.

"I am always pleased to see local governments accessing this important program," said Environment and Conservation Commissioner Jim Fyke. "Community investments in our drinking water and wastewater systems are vital to maintaining environmental and public health. These loans will help keep our communities moving forward."

The SRF Loan program provides low-interest loans that help communities, utility districts and water authorities finance water and wastewater projects that protect Tennessee's ground and surface waters. Loans are used to finance planning, design and construction of water or wastewater facilities. Through this program, communities, utility districts and water authorities can obtain loans with lower interest rates than most can obtain through private financing. Interest rates for the loans can vary from zero percent to market rate, based on each community's economic index.

The funding order of projects is determined by the SRF Loan Program's project priority lists, which rank potential projects according to the severity of their pollution problems, compliance or protection of public health. Environment and Conservation administers SRF programs in conjunction with the Tennessee Local Development Authority. Through 2005, the U.S. Environmental Protection Agency provided seed money for the loan programs and the state provided matching funds.

Details of the SRF loans announced today include:

Drinking Water Loans

• Maury County - A $3.6 million 20-year loan with an interest rate of 2.42% for approximately 11 miles of water mains and a pump station upgrade in the southern and western areas of the county. The project also includes 4.5 miles of water main, a pump station and a 750,000-gallon elevated storage tank in Northern Maury County.
• Ocoee Utility District, Bradley County - A $750,000 loan increase to an existing 20-year loan with an interest rate of 1.18% for water line extensions, including approximately 36,700 linear feet for the Ball Play Road Water Line extension and 19,600 linear feet for the Highway 64 water line replacement.
• West Cumberland Utility District, Maury County - A $2.3 million 20-year loan with an interest rate of 1.21% for construction of a water treatment plant with a capacity of one million gallons per day and a high service main in Pleasant Hill, Tenn. The plant will have its raw water intake on Lake Alice in order to provide a stable, adequate supply of safe drinking water to the service main in Cumberland, Putnam and White Counties.

Wastewater Loans

• City of Englewood, McMinn County - A $223,900 20-year loan with an interest rate of zero percent for renovation and additions to the existing wastewater treatment plant to address operational problems and phase one of sewer system rehabilitation work.
• Hallsdale-Powell Utility District, Knox County - A $44 million 20-year loan with an interest rate of 0.82% to increase the capacity of the Beaver Creek Wastewater Treatment Plant from 5.6 million to 9.7 million gallons per day.
• Hendersonville Utility District, Sumner County - A $109,694 loan increase to an existing 20-year loan with an interest rate of 2.94% for rehabilitation of the existing sewer collection system.
• City of Ripley, Lauderdale County - A $2.5 million loan increase to an existing 20-year loan with an interest rate of 0.78% for construction of a new lagoon wastewater treatment plant with a capacity of 3.1 million gallons per day, a force main to transport wastewater from two existing industries to a pump station at the existing wastewater treatment facility, and an effluent force main and outfall.
• City of Rockwood, Roane County - A $300,000 loan increase to an existing 20-year loan with an interest rate of 1.98% for improvements to the City of Rockwood's existing wastewater treatment plant. The improvements will include a primary clarifier, grit removal system and sludge dewatering system.
• City of Sweetwater, Monroe County - A $2 million 20-year loan with an interest rate of 2% for combined sewer separation, including the elimination of direct stormwater connections from sanitary sewers and construction of new stormwater outfalls within the City of Sweetwater.

Since its inception in 1987, Tennessee's Clean Water State Revolving Fund Loan Program has awarded over $772,000,000 in low-interest loans. Since its inception in 1996, Tennessee's Drinking Water State Revolving Fund Loan Program has awarded over $92,000,000 in low-interest loans. Both programs combined award approximately $75,000,000 annually to Tennessee's local governments for water and sewer infrastructure projects.

Any local government interested in the SRF loan programs should contact the State Revolving Fund Loan Program, 8th Floor, L&C Tower, 401 Church Street, Nashville, TN 37243, or call (615) 532-0445. Information about SRF loan programs may be found on online at www.tdec.net/srf.

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For more information contact:

Dana Coleman
(615) 253-1916 (Office)