March 10, 2004

The DEQ announced eight new loan commitments today from the State Revolving Fund (SRF) and five new commitments from the Drinking Water Revolving Fund (DWRF). Using federal capitalization grants and a required state match, the SRF provides low-interest financing for local units of government to make needed improvements to wastewater collection and treatment facilities, while assistance from the DWRF finances improvements to public drinking water systems. In addition, two loan commitments were made from the Strategic Water Quality Initiatives Fund (SWQIF); the first assistance tendered using funds from the November 2002 passage of Michigan’s Great Lakes Water Quality Bond Initiative. These 15 loans total over $56 million.

The funded SRF projects include:

• Two loans to the city of Lansing totaling $14,275,000. These represent the most recent in a series of loans to finance the separation of sewers in the city and eliminate the discharge of untreated combined sewage to the Grand River. To date, Lansing has received nearly $127 million in SRF financing for its Long Term Combined Sewer Overflow Control Program.

• $3,770,000 for the continuation of combined sewer separation in the city of Port Huron. The city has received eight prior loans for this ongoing project, bringing Port Huron’s total SRF assistance to date to nearly $52 million.

• $1,220,000 to the city of Warren to finance the third segment in a series of projects to upgrade facilities at the Warren Wastewater Treatment Plant to insure adequate treatment of wastewater flows.

• $2,165,000 to the city of St. Joseph to complete the separation if it’s combined sewers. Using this assistance, and earlier financing received in a 2002 SRF loan, the city will eliminate the overflow of combined sewage to the St. Joseph River.

• $1,405,000 to Clinton Charter Township in Macomb County for the rehabilitation of sanitary sewers as part of a program to eliminate sanitary sewer overflows.

• $9,605,000 to the city of East Lansing for a Combined Sewage Retention and Treatment Basin. This assistance will allow the city to complete its Long Term Combined Sewer Overflow Control Program and eliminate the overflow of untreated combined sewage to the Red Cedar River.

• $3,470,000 to the city of Marquette for the upgrade of wastewater pumping stations and the replacement of a deteriorating forcemain. These commitments bring total SRF financing awarded to Michigan communities to date to nearly $2 billion.

These loans underscore the strong local commitment that is evident in Michigan to ensure protection of the state’s valuable water resources and the public health of its citizens.

The funded DWRF projects include:

• $835,000 in loan assistance to Huron County and the village of Elkton to replace deteriorating water mains and accomplish looping of dead ends in the village’s water distribution system.

• A $1,520,000 loan to the city of Brighton to rehabilitate portions of its drinking water treatment facility and replace portions of its distribution system.

• A $13,900,000 loan to the city of Muskegon. This loan will finance the upgrade and expansion of the city’s drinking water treatment facility, along with improvements to its storage, pumping, and distribution systems. • $805,000 in loan assistance to the city of Ann Arbor for the replacement of water mains and the provision of city water service to two subdivisions.

• $2,315,000 in loan assistance to the city of Port Huron for the replacement of water mains in areas of the city undergoing combined sewer separation.

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 in these communities. Since the inception of Michigan’s DWRF program in 1998, nearly $300 million in assistance has been tendered.

The DEQ is also announcing the first loan commitments from the SWQIF. Created by the passage of Proposal 2 in November of 2002, funding from this program can be used to accomplish the removal of storm water or groundwater from sanitary sewer leads. The city of Ann Arbor will receive $875,000 in loan assistance and the Charter Township of Clinton will receive $270,000. Both communities will use the assistance to remove household footing drains from their sanitary sewer systems, thereby relieving hydraulic overloading of the sewers that has resulted in basement back ups and the discharge of raw sewage to the state’s waterways.

DEQ Director Steven E. Chester noted that these programs continue to represent the primary source of financial assistance available to local governments and underscored the fact that revolving loan fund programs continue to be the most effective means of providing assistance for critical water and wastewater infrastructure needs.

“As the wastewater and drinking water infrastructures in Michigan continue to age, the demand for assistance like that provided by the revolving fund programs will continue to grow,” said Director Chester. “Federal and state revolving fund mechanisms deliver more infrastructure construction per investment dollar. I am particularly pleased that fiscal resources made available by Michigan voters in November of 2002, under Proposal 2, are now being used to assist local units of government and reduce the costs incurred by system-users for critical infrastructure improvements.”

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

Revised March 10, 2004 by Pat Watson