November 22, 2006

Department of Environmental Quality Director Steven E. Chester today announced four new loan commitments from the revolving fund programs. The State Revolving Fund and Strategic Water Quality Initiatives Fund provide low-interest financing for local units of government to make needed improvements to wastewater collection and treatment facilities, while assistance from the Drinking Water Revolving Fund finances improvements to public drinking water systems. The loans announced today total $13,605,000.

"We continue to make progress in protecting and enhancing Michigan's irreplaceable water resources," said Director Chester. "While funding needed infrastructure improvements, these loans also stimulate construction activity and represent a real investment in Michigan's environmental and economic future."

The funded SRF projects include:

• Two loans totaling $12,040,000 to Genesee County for the fourth and fifth in a series of projects to provide interceptor relief for the network of systems tributary to the Anthony Ragnone Wastewater Treatment Plant. The system serves 24 communities in Genesee, Saginaw, and Shiawassee counties. The relief sewers will eliminate sanitary sewer overflows currently occurring during wet weather.
• $1,160,000 in assistance to the city of Gladstone for improvements to the city's wastewater treatment plant. The funds will be used to construct a new sludge storage tank to enhance the city's ability to apply treated bio solids to forested property as a soil amendment.

These commitments bring SRF financing awarded to Michigan communities to date to nearly $2.4 billion. These projects are further examples of the commitments being made by local units of government in Michigan to ensure protection of the state's valuable water resources and the public health of its citizens.

The funded DWRF project entails:

• $405,000 to the village of Brooklyn. The loan will be used in conjunction
    with an earlier $1,690,000 loan for improvements to the village's drinking water system, including the replacement of deteriorated water mains and the construction of new mains to accomplish looping. A new elevated water tank is also being constructed while water meters are being purchased and installed throughout the system.

The improvements financed by these loans will ensure compliance with the requirements of the Safe Drinking Water Act and protect the public health of system users. Since the inception of Michigan's DWRF program in 1998, nearly $420 million in assistance has been tendered.

Program interest rates remain well below open market rates, with Fiscal Year 2007 loans at 1.625 percent in the SRF and 2.125 percent in the DWRF.

Editor's note: DEQ news releases are available on the department's Internet home page at www.michigan.gov/deq.

"Protecting Michigan's Environment, Ensuring Michigan's Future"

Revised November 22, 2006 by Pat Watson