Chattanooga, Cleveland secure Tennessee DEC’s loans for clean water projects

The Tennessee Department and Environment and Conservation (TDEC) has sanctioned millions in loans for clean water and wastewater projects in Chattanooga and Cleveland cities.

Chattanooga and Cleveland will join other three cities who together will receive a total of $66.8m low-interest loans that aim to promote clean water and drinking water infrastructure.

Chattanooga has been sanctioned two loans totalling $24m for inflow and infiltration correction for Dobb Branch Sewer improvements and inflow and infiltration correction for the South Chickamauga Sewer Basin.

The $3m first loan is with federal funding in the amount of $2,700,000 and an additional $300,000 in principal forgiveness which the city does not require to repay.

A companion loan is funded from the State Revolving Fund at $21m and both the loans can be repaid over the next 20 years at an interest rate of 2.05%.

Separately, the City of Cleveland has been awarded a loan increase in the amount of $379,500 for its collection system expansion. The amount is meant for the installation of almost 7,750 linear feet of sewer lines to replace septic tanks. The project is being funded from the State Revolving Fund at an interest rate of 1.56%. The loan can be repaid over the next 20 years.

TDEC Commissioner David Salyers said: “These programs help communities make updates they need in infrastructure, and we are glad we can assist in this way.

“Abundant, clean water is important to quality of life in Tennessee, and this program is an excellent way to make such improvements affordable.”

Since its inception in 1987, the Clean Water State Revolving Fund Loan Program in Tennessee has awarded over $2bn in loans, WTVC NewsChannel 9 reported.

Similarly, Tennessee’s Drinking Water State Revolving Fund Loan Program has given more than $300m in low-interest loans since its inception in 1996.

---

Third party source:

https://newschannel9.com/news/local/chattanooga-cleveland-to-get-millions-in-clean-water-wastewater-loans-from-tdec

Other sources:

https://www.chattanoogan.com/2019/2/19/385076/Chattanooga-Cleveland-Get-Wastewater.aspx

https://smokeybarn.com/springfield-gets-19m-water-wastewater-loan-in-addition-to-haslams-7-mil/

https://www.timesfreepress.com/news/breakingnews/story/2019/feb/19/state-grants-24-million-loans-clean-water-projects-chattanooga/488980/

Chattanooga, Cleveland to get millions in clean water, wastewater loans from TDEC

Chattanooga and Cleveland are among five cities in Tennessee that will receive money from the Tennessee Department and Environment and Conservation (TDEC) for low-interest loans to promote clean water and drinking water infrastructure improvements.

Tennessee’s Revolving Fund Loan Program maintains priority ranking lists for both the Drinking Water State Revolving Fund and the Clean Water State Revolving Fund. Over $90 million is loaned annually to cities, utility districts, and energy or water/waste water authorities, with projects appearing on the priority ranking lists for planning, design, and construction of eligible water and wastewater projects.

Chattanooga

Chattanooga will get two loans totaling $24 million for inflow and infiltration correction for Dobb Branch Sewer improvements and inflow and infiltration correction for the South Chickamauga Sewer Basin.

The first loan is for $3 million with federal funding in the amount of $2,700,000 and an additional $300,000 in principal forgiveness that will not have to be repaid.

A $3 million cap applies to the federal funding in the clean water loan program. A companion loan is funded from the State Revolving Fund at $21 million. Both loans have a 20-year repayment period at an interest rate of 2.05 percent.

Cleveland/Bradley County

Meanwhile, the City of Cleveland will get a loan increase in the amount of $379,500 for its collection system expansion to include the installation of approximately 7,750 linear feet of sewer lines to replace septic tanks. The project is funded from the State Revolving Fund with a 20-year repayment period and an interest rate of 1.56 percent.

“These programs help communities make updates they need in infrastructure, and we are glad we can assist in this way,” said Salyers. “Abundant, clean water is important to quality of life in Tennessee, and this program is an excellent way to make such improvements affordable.”

Through the State Revolving Fund 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 also include a principal forgiveness component.

Tennessee’s Clean Water State Revolving Fund Loan Program has awarded more than $2 billion in low-interest loans since its inception in 1987. Tennessee’s Drinking Water State Revolving Fund Loan Program has awarded more than $300 million in low-interest loans since its inception in 1996.

The Department of Environment and Conservation administers the State Revolving Fund 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.