NASHVILLE - Chattanooga has won approval for a $30 million low-interest loan to help the city address massive sewage overflows from its wastewater collection system, Gov. Bill Lee and state officials said Friday.
The money, provided by the state's Clean Water State Revolving Fund, is intended to help Chattanooga officials deal with the West Bank Outfall, where millions of gallons of raw sewage has spilled into the Tennessee River during heavy rains and overwhelmed the city-owned Moccasin Bend Sewage Treatment Plant.
Chattanooga is now building three massive, 10-million-gallon-each storage tanks or "equalization stations." They are designed to hold wastewater generated during large-storm events until it can be treated and discharged properly into the river.
Back in January, the entire project was estimated at $46.5 million when it came before the city council.
The 20-year state SRF loan carries a 1.17% interest rate and is intended to aid the city's ongoing efforts to improve critical infrastructure and protect health, safety and water quality, according to the state.
"We're really thankful," said Colleen Miller, spokeswoman for Chattanooga's Department of Public Works, further adding the city has won several prior loan awards. "We like them because the interest rates are low and save us money over time. We're quite fortunate to have received quite a few of them."
Miller noted the Chattanooga sewer system also serves seven surrounding cities and communities.
In a statement, Lee said the low-interest loans from the state's Clean Water State Revolving Fund "assist local communities with important infrastructure improvements. Low-interest loans directly address needs and will improve quality of life."
Tennessee Environment and Conservation Commissioner David Salyers called water and wastewater infrastructure "a critical need for communities. The low-cost loan program is an excellent financial tool for helping ensure our water resources are preserved for future generations."
Chattanooga's $30 million loan consumed most of the $33 million in the state's latest round of drinking water and wastewater infrastructure improvement loans announced this week.
The federal government provides 80% of money for the state's revolving fund program. The state kicks in 20%. Loan repayments are returned to the program and then used to fund future loans.
The city of Dyersburg received $2.5 million to improve its wastewater collection system while the town of Oliver Springs is getting $500,000 to address severe water loss issues through its water infrastructure system.
Tennessee's State Revolving Loan Program administers both clean water and wastewater grants and loans.