MDEQ Awards $80 Million in Loans for Infrastructure Projects

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Posted: Monday, November 5, 2018 7:38 pm | Updated: 7:40 pm, Mon Nov 5, 2018.

LANSING, MICH. -- The Michigan Department of Environmental Quality is providing $80 million in loans to fund municipal water and sewer projects to improve water quality and protect public health. The loans include nearly $1.8 million in principal loan forgiveness for employing green practices or for meeting affordability criteria.

The Governor’s 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 is an opportunity to help narrow that gap by providing low‑interest loan financing for necessary wastewater and stormwater improvements.

With interest rates below those otherwise available on the open market, and principal loan forgiveness opportunities, funding infrastructure projects through state-administered loan programs allows communities to pass the savings along to their system customer base.

Communities receiving assistance are:

  • Great Lakes Water Authority - $17.5 million for rehabilitation of prioritized sections of the aged 12-mile-long Detroit River Interceptor from Alter Road to the Water Resource Recovery Facility, formerly known as the Wastewater Treatment Plant.
  • Great Lakes Water Authority - $16.3 million for rehabilitation of the Central Offload Facility at the Water Resource Recovery Facility.
  • Huron River Green Infrastructure Drainage District - $415,000 with $50,000 in principal forgiveness funds for street tree planting to reduce nonpoint source pollution and help the Middle Huron River watershed meet its total maximum daily load restriction for phosphorus, total suspended solids and bacterial contamination.
  • Monroe County - $12 million for upgrades and repairs at the Bedford Township Wastewater Treatment Plant, Smith and Lewis Pump Station, Smith and Douglas Pump Station and Monroe Road Pump Station. This is the first of two loans for this two-segment project.
  • Monroe County - $1.5 million for rehabilitation of sewers by lining and replacement of two pump stations at Edwards/Glidersleeve Roads and South Huron Drive at Labo Park.
  • City of Saline - $4.2 million with $300,000 in principal forgiveness for odor control improvements, pump replacement and the installation of a generator at the Sauk Trail pump station.

The Drinking Water Revolving Fund provides low-interest loan financing for necessary public drinking water facility improvements. Communities receiving assistance are:

  • City of Highland Park - $6 million with $1.4 million in principal forgiveness funds for replacement of existing water main and installation of new water main looping along with the necessary appurtenances for the drinking water system to address substantial water loss and for cross contamination risk as well as stagnant water.
  • Village of Lake Orion - $6 million for replacement of existing 4, 6 and 8‑inch water mains with new 8‑inch high-density polyethylene pipe. The project has two phases. Phase one will replace 15,815' of pipe in 2018 with the remaining 10,118' of pipe to be replaced in 2019.
  • City of St. Joseph - $16.1 million for extensive capital improvements at the water treatment plant and replacement of deteriorated water main along Wallace Avenue and Stadium Drive to increase reliability, flows and pumping efficiencies as well as to enhance the quality and protection of the drinking water supply.

The SRF was established in 1988 and has since provided low-interest loans totaling $4.85 billion. The DWRF was established in 1997 and has since provided low-interest loans totaling $980 million. A portion of the SRF and DWRF is provided by the U.S. Environmental Protection Agency through capitalization grants. The MDEQ is working on various proposals to improve the SRF and DWRF based on the recommendations of the 21st Century Infrastructure Commission, as well as stakeholder feedback, in order to enhance opportunities for communities to access capital funds necessary to improve Michigan’s water-related infrastructure.

SOURCE: Michigan Department of Environmental Quality

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