NASHVILLE – Tennessee Gov. Bill Lee and the Tennessee Department of Environment and Conservation (TDEC) Commissioner David Salyers today announced a $15 million loan for Johnson City to address water infrastructure needs.

This Clean Water State Revolving Fund loan will help Johnson City address rehabilitation of sewer interceptors, including replacement of 21,000 linear feet of the Lower Brush Creek collection system. The loan has a 20-year term at 1.25 percent interest rate.

“The State Revolving Fund Loan Program serves our state well, and we are pleased to announce this funding for Johnson City,” 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 Johnson City,” Salyers said. “This program improves infrastructure across our state, and this should benefit Johnson City in a meaningful way.”

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.

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.