Governor Phil Bredesen has announced that two communities and one utility district will receive low-interest loans totaling more than $8 million from the State Revolving Fund Loan Program to fund much-needed water and wastewater construction projects. The Department of Environment and Conservation administers the SRF Loan Program for the state of Tennessee.

In Polk and Bradley counties, the Ocoee Utility District will receive a $1.8 million, 20-year loan, with an interest rate of 1.19 percent, for the South waterline extensions and Spring Place Road water line replacement.

“Investment in our water infrastructure is important to our community,” State Representative Kevin Brooks said. “This low-interest loan to the Ocoee Utility District represents a significant partnership between the state and local community that will be a great benefit.” State Senator Dewayne Bunch and State Representative Eric Watson also represent the area served by the Ocoee Utility District in the General Assembly.

“I am pleased to see local governments accessing this important program,” Bredesen said. “The State Revolving Fund loan program is a tool to help communities address their current infrastructure needs and to allow them to prepare for future needs.”

The U.S. Environmental Protection Agency awards annual grants to fund the SRF Loan Program, with the state providing the required 20 percent match.  Loan repayments are returned to the program and used to fund future projects.

 “Community investments in our drinking water and wastewater systems are vital to maintaining environmental and public health,” Environment and Conservation Commissioner Jim Fyke said. “These loans will help keep our communities moving forward.”

The SRF Loan Program provides low-interest loans that help communities, utility districts and water and wastewater authorities finance projects that protect Tennessee’s ground and surface waters and public health. Loans are used to finance the planning, design and construction of water and wastewater facilities. Through this 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 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 Priority Ranking Lists that rank potential projects according to the severity of their pollution and/or compliance problems and for the protection of public health.