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EGLE awards $105 million in water and sewer infrastructure project loans to 13 communities
October 03, 2019
October 3, 2019
The Michigan Department of Environment, Great Lakes, and Energy (EGLE) is providing $105 million in loans to fund 16 municipal water and sewer projects to address infrastructure needs and ensure long-term water quality. The loans include $21 million in principal loan forgiveness to provide affordability assistance, implement green practices, and complete full-length lead service line replacements.
The 21st Century Infrastructure Commission has reported that there is an $800 million annual gap in funding water-related infrastructure needs. The Clean Water State Revolving Fund (SRF) and the Drinking Water Revolving Fund (DWRF) provide opportunities to help narrow that gap through low-interest loan financing for wastewater/stormwater improvements and drinking water improvements respectively.
The SRF was established in 1988 and has since provided low-interest loans totaling $4.95?billion for 601 projects in Michigan. The DWRF was established in 1997 and has since provided low-interest loans totaling $1.12 billion for 300 projects in Michigan. A portion of the SRF and DWRF is provided by the United States Environmental Protection Agency through capitalization grants.
Eight communities will receive assistance through the SRF program, including:
- Charter Township of Kinross -- A $6 million loan that includes $4.5 million in principal forgiveness for a food waste handling building at the Wastewater Treatment Plant.
- City of Lansing -- A $9.8 million loan for the Central Interceptor and Sycamore-Lindbergh Interceptor rehabilitation project.
- City of Muskegon -- An $11.5 million loan that includes $8.6 million in principal forgiveness for sewer repairs to maintain collection system structural integrity.
- City of South Haven -- A $420,000 loan that includes $315,000 in principal forgiveness for sewer improvements on Center Street.
- Grant Township -- A $1.8 million loan that includes $1.3 million in principal forgiveness for the replacement of lagoon liners and treatment equipment.
- Huron River Green Infrastructure Drainage District -- A $355,000 loan that includes $67,000 in principal forgiveness for street tree planting in the city of Ann Arbor to reduce nonpoint source pollutant loading into the Middle Huron River Watershed.
- Millers Creek Ann Arbor Drain Drainage District -- A $1 million loan that includes $235,000 in principal forgiveness for the Pepper Pike Stream modification project to reduce sediment loading and nonpoint source pollution into the Huron River.
- Ypsilanti Community Utilities Authority -- A $9.5 million loan for the replacement of the west tertiary filters and repairs to the incinerator at the Wastewater Treatment Plant.
Six communities, for a total of eight loans, will receive assistance through the DWRF program, including:
- City of Hamtramck -- A $755,000 loan that includes $151,000 in principal forgiveness for replacement of lead and galvanized service lines on private property.
- City of Kalamazoo -- A $1.7 million loan that includes $255,000 in principal forgiveness for full-length lead service line replacement in the city of Parchment.
- City of Muskegon -- A $2 million loan that includes $400,000 in principal forgiveness for replacement of water mains and lead service lines.
- East Lansing Meridian Water and Sewer Authority -- A $950,000 loan for water treatment plant improvements to heating, ventilation, and air conditioning equipment.
- Great Lakes Water Authority -- A $29.9 million loan for Phase 1 of a multi-phase construction project to improve efficiency and reliability in the transmission system involving the Northeast and Water Works Park Treatment Plants in the city of Detroit.
- Great Lakes Water Authority -- An $8.3 million loan for improvements to the raw sludge clarifiers and raw sludge pumping system at the Lake Huron Water Treatment Plant in Fort Gratiot Township of St. Clair County.
- Great Lakes Water Authority (on behalf of Detroit Water and Sewerage Department) -- A $16.5 million loan that includes $4.7 million in principal forgiveness for replacement of water mains and full-length lead service lines in the city of Detroit.
- City of Bay City -- A $5 million loan that includes principal forgiveness of $1 million for replacement of water main and lead service lines.
EGLE is committed to partnering with local communities and various stakeholders to support ongoing efforts to close the gap on water infrastructure funding, which is necessary to ensure long-term water quality.
For more information on the SRF loan program visit, Michigan.gov/CleanWaterRevolvingFund.
For more information on the DWRF loan program visit, Michigan.gov/DrinkingWaterRevolvingFund.