The U.S. Environmental Protection Agency announced a $186 million loan to Chattanooga, Tenn., for its wastewater compliance and sustainability project.
EPA announced the Water Infrastructure Finance and Innovation Act loan in a Dec. 8 news release, which said the agency is helping "Chattanooga improve its wastewater system's energy efficiency and resilience to extreme weather while saving ratepayers millions of dollars."
"As Chattanooga continues to grow in population, it’s more urgent than ever to provide effective wastewater services to protect this burgeoning community," EPA Assistant Administrator for Water Radhika Fox said in the news release. "At the same time, I'm excited EPA can partner with Chattanooga to create 3,000 jobs in construction and operation locally."
The city's wastewater compliance and sustainability project aims to modernize Chattanooga's Moccasin Bend Wastewater Treatment Plant, according to the news release. The treatment plant serves customers throughout Chattanooga, as well as in adjacent communities in Hamilton County, Tennessee, and Walker and Catoosa Counties in Georgia.
"The city of Chattanooga will improve storage and treatment capacity at the plant to provide resiliency during extreme weather events and support compliance with its consent decree," the news release said.
The city's project also aims to keep customer rates affordable by taking advantage of the WIFIA program's flexibility that will put off principal repayment until 2032, six years after construction is expected to be completed. Financing through a WIFIA loan is expected to save Chattanooga about $48 million, according to the release.
"Chattanooga's outdoor resources are our greatest competitive advantage, and innovative funding solutions are critical to ensuring we have the resources needed to preserve them for future generations," Chattanooga Mayor Tim Kelly said in the news release. "That's why I'm incredibly grateful for EPA's partnership on these low-interest loans, which will allow us to future-proof our sewer system and better protect our beloved waterways, all while maintaining low rates for Chattanooga residents."
The WIFIA program, established by an act of Congress in 2014, is a federal loan and guarantee program administered by EPA that aims to accelerate investment in the nation’s water infrastructure through long-term, low-cost supplemental credit assistance, the release reported.
