March 22, 2007

Department of Environmental Quality Director Steven E. Chester today announced sixteen new loan commitments from the state's revolving fund programs. The State Revolving Fund (SRF) and Strategic Water Quality Initiatives Fund (SWQIF) 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 (DWRF) finances improvements to public drinking water systems. The loans announced today total $74,170,000.

"We continue to make progress in protecting and enhancing Michigan's irreplaceable water resources," said Director Chester. "These funds stimulate needed infrastructure improvements and represent a real investment in Michigan's environmental and economic future."

The funded SRF/SWQIF projects include:

*  $26,000,000 to the city of Lansing for continuation of its long term
   sewer separation plan that will eventually eliminate overflows of
   combined sewage into the Grand River.

*  A loan of $3,040,000 to the city of Port Huron for an additional
   segment of its efforts to complete separation of its combined sewers.

*  $7,730,000 of assistance to Tuscola County to finance improvements
   to the village of Caro's wastewater collection and treatment system.

*  Financing of $17,010,000 to the city of Marquette for wastewater
   treatment plant improvements and replacement of portions of its sewer
   system.

*  $3,040,000 to the city of Richmond to fund the construction of an
   equalization basin and the replacement of an interceptor sewer.

*  A loan of $1,400,000 to the village of Saranac for the upgrade of its
   wastewater treatment plant and the rehabilitation of portions of its
   sewer system.

*  $965,000 to the city of Ann Arbor, the fourth in a series of loans, for
   continuation of its footing drain disconnection program. The program
   will accomplish the removal of groundwater from the city's sanitary
   sewer system and help prevent sanitary sewer overflows and
   basement back-ups.

These commitments bring SRF financing awarded to Michigan communities to date to over $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 projects include:

*  $3,900,000 to the city of Mt. Clemens to be used for improvements to
   the city's water treatment facility and distribution system.

*  A loan of $2,295,000 to the Ypsilanti Community Utilities Authority for
   the replacement of and looping of watermains in Ypsilanti Township.
   The city of Ypsilanti also received a loan of $375,000 for the
   replacement of mains within the city.

*  $1,180,000 in assistance to the village of Pentwater for the installation
   of Arsenic removal facilities to meet new federal drinking water
   standards, the replacement of watermains and the rehabilitation of an
   elevated storage tank.

*  $935,000 to West Bloomfield Township in Oakland County for the first
   of a two phase project to upgrade its drinking water distribution
   system.

*  A loan of $2,950,000 to the city of Escanaba for improvements to its
   water treatment and storage facilities.

*  $450,000 to Barry County to assist Yankee Springs Township with the
   installation of Arsenic removal facilities.

*  Loan assistance of $950,000 to Watersmeet Township in Gogebic
   County for the construction of a new well and storage tank.

*  $1,950,000 to the city of Port Huron for another segment of its long
   term watermain replacement program.

The improvements financed by these loans will help 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, over $430 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/SWQIF 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 March 22, 2007 by Pat Watson