Nearby Bell Buckle, Tennessee will have a little help with their drinking water.
Tennessee Gov. Bill Haslam and Tennessee Department of Environment and Conservation (TDEC) Commissioner Bob Martineau today announced that six communities have been approved to receive more than $23.9 million in low-interest loans for water and wastewater infrastructure improvements.
From the low interest loan, the Town of Bell Buckle will receive $294,000 for a Distribution System - Water Main line Replacements project. The project will be funded with a 20-year, $235,200 loan with an interest rate of 0.27 percent and $58,800 in principal forgiveness that will not have to be repaid.
Governor Haslam stated, "Abundant, clean water is critical to the quality of life in Tennessee, and these low-interest loans will help local communities provide needed infrastructure updates to ensure our supply of water is available for future generations."
Tennessee's Clean Water State Revolving Fund Loan Program has awarded more than $1.9 billion in low-interest loans since its inception in 1987. Tennessee's Drinking Water State Revolving Fund Loan Program has awarded more than $303.25 million in low-interest loans since its inception in 1996.
"Clean water is one of our most valuable resources and these loans help ensure communities have the access they need," said Martineau.
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.
