NASHVILLE, Tenn. (TN Government Release) – Tennessee Gov. Bill Lee and the Tennessee Department of Environment and Conservation (TDEC) Commissioner David Salyers announced Monday a $48 million loan for the City of Memphis to address water infrastructure.
The loan is one of a group of loans approved by the Tennessee Local Development Authority covering Memphis, Johnson City and Lebanon totaling $68.7 million.
This Clean Water State Revolving Fund loan will address wastewater treatment plant improvements and upgrades to secondary treatment at the T.E. Maxson Wastewater Treatment Facility. The loan has a 20-year term at 0.47 percent interest.
“The State Revolving Fund Loan Program serves our state well, and we are pleased to announce this funding for Memphis,” Lee said. “These loans show our commitment to modernizing infrastructure, and this should be of major assistance to the community.”
“We look forward to the improvements this loan can bring to Memphis and its wastewater treatment plant,” Salyers said. “This program has consistently helped communities across our state, and this loan will be a key step for improved infrastructure for the city.”
Through the State Revolving Fund Loan Program, communities, utility districts, and water and wastewater authorities can obtain loans with lower interest rates than through private financing. These low interest rate loans can vary from zero percent to below market rate, based on each community’s economic health.
In addition to the Memphis loan, the SRF program awarded a $15 million clean water loan to Johnson City, and both a $4.3 million clean water loan and a $1.4 million drinking water loan to Lebanon.
TDEC 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 to the federal funding. Loan repayments are returned to the program and are used to fund future SRF loans.
This fiscal year, TDEC has awarded $1,485,000 in drinking water loans and $100,300,000 in clean water loans to meet community infrastructure needs in Tennessee.
Tennessee’s Clean Water State Revolving Fund Loan Program has awarded more than $2 billion in low-interest loans since its inception in 1987. The state’s Drinking Water State Revolving Fund Loan Program has awarded more than $300 million in low-interest loans since its inception in 1996.