Gov. Bill Lee and the Tennessee Department of Environment and Conservation (TDEC) are on a mission to improve water infrastructure. They've just announced a $400,000 boost to the Town of Dandridge's water treatment capabilities, granted through a State Revolving Fund Loan Program. This effort, as part of a larger initiative, aims to help communities address pressing water infrastructure concerns.
In a statement obtained by tn.gov, the loan, one of five approved by the Tennessee Local Development Authority, is included in a package totaling $16.2 million. While the City of Fayetteville and the Town of White Pine also benefit from similar loans, it's the residents of Dandridge, struggling for so long with inadequate water systems, that will see some relief. The funds are directed at infiltration and inflow corrections, notably the rehabilitation or replacement of sewer lines and manholes.
"Water infrastructure can be a challenging issue for a community, and this program provides crucial funding for improvements," said Gov. Lee. TDEC Commissioner David Salyers added, "One of the most important issues facing a community is dependable water service, and these loans can help address those needs." According to a statement obtained by tn.gov, these efforts underscore a commitment by local authorities to ensure the longevity and reliability of water services.
Dandridge's loan stems from the Clean Water State Revolving Fund Loan Program and comes with favorable terms—a five-year period at an interest rate of 2.38 percent, accompanied by a significant edge; $200,000 of the principal is forgiven, softening the financial blow on the town's shoulders. For communities facing high infrastructure costs, the State Revolving Fund Loan Program offers a much-needed solution, providing loans at lower rates than the private market.
Throughout the fiscal year 2024, TDEC's dedication to water intervention is palpable. They awarded upwards of $31 million in drinking water loans and an additional $71 million plus for clean water loans to address state infrastructure demands. In total, since the inception of Tennessee's Clean Water State Revolving Fund Loan Program in 1987, and the Drinking Water State Revolving Fund Loan Program in 1996, more than $2 billion and $300 million, respectively, in low-interest loans have funneled into vital water infrastructure improvements across the state, as noted by tn.gov.
