June 11, 2004

The Department of Environmental Quality announced four new loan commitments today from the State Revolving Fund and five new commitments from the Drinking Water Revolving Fund. 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. These nine loans total nearly $63 million.

The funded SRF projects include:

• Three loans to the city of Detroit totaling $34,520,000 for improvements at
   the city’s wastewater treatment plant to ensure the adequate treatment of
   wastewater before discharge to the Detroit River.

• A loan of $9,220,000 for the construction of an equalization basin at the
  wastewater treatment plant owned and operated by the South Huron Valley
  Utilities Authority, located in Brownstown Township. The treatment facility
  serves the cities of Flat Rock, Gibraltar, and Woodhaven, the village of
  South Rockwood, and Huron, Van Buren, and Brownstown Townships.

These commitments bring total SRF financing awarded to Michigan communities to date to $2 billion. These projects 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:

• Loan assistance of $7,370,000 to the village of Ontonagon to refinance
  existing debt incurred for the upgrade and consolidation of a number of
  local public water supplies. The revamped regional system serves residents
  of Ontonagon, White Pine and Silver City, and portions of Ontonagon and
  Carp Lake Townships.

• A $6,330,000 loan to the city of Ypsilanti to replace deteriorated portions of
  its water distribution system.

• A $420,000 loan to the city of Port Huron. This loan represents the sixth in
  a series of loans to finance the replacement of water mains in the city,
  bringing total DWRF assistance to nearly $20 million.

• Loan assistance of $3,690,000 to the city of Beverly Hills for the
  replacement of deteriorated water mains.

• Loan assistance of $1,065,000 to Sanilac County to finance the looping of
  water mains to eliminate dead ends, and the replacement of aged
  distribution piping in the village of Carsonville.

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, over $300 million in assistance has been tendered.

"These funds ease the financial burden of necessary system improvements through below market interest rates," said DEQ Director Steven E. Chester. "These programs give communities the assurance that continued funding capabilities will exist for years to come."

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

Revised June 11, 2004 by Pat Watson