Communities financing from Ohio EPA to improve water infrastructure

Jun. 28—SOUTHEAST OHIO — Communities in Southeast Ohio are receiving approximately $9.9 million in low-interest and principal forgiveness funding from Ohio EPA to improve wastewater and drinking water infrastructure and make other water quality improvements. Funding infrastructure projects and improving water quality across the state continues to be a priority of Governor Mike DeWine's administration. These loans (financed though the state's revolving fund) were approved between Jan. 1 and March 31. The lower interest rates will save these communities more than $3.6 million.

"By investing in drinking water and wastewater infrastructure, we are working toward a better quality of life for all Ohioans," said Governor DeWine. "Water issues exist everywhere, and these infrastructure projects help ensure that these community-level, basic public services are safe and reliable for generations to come."

Statewide, Ohio EPA awarded approximately $269.8 million in loans during the first quarter of 2022, including more than $6 million in principal forgiveness. Combined, Ohio communities will save approximately $43.8 million when compared to market-rate loans. The projects are improving Ohio's surface water quality and the reliability and quality of Ohio drinking water systems. This funding includes assistance to local health districts to help low-income property owners repair or replace failing household sewage treatment systems.

Ohio EPA financed approximately $797 million for public works projects in 2021, saving communities more than $166 million in interest when compared to market-rate loans.

For the first quarter of 2022, the following Southeast Ohio projects are receiving funding:

Powhatan Point is receiving $2 million to replace three rotating biological contractors and convert final disinfection from chlorine to ultraviolet treatment.

South Point is receiving $1.8 million to replace water lines south of 4th Street. A new well also will be installed.

Jefferson County is receiving $1.5 million to construct a new precast concrete activated sludge package treatment plant adjacent to the existing plant. The loan includes $50,000 in principal forgiveness, meaning this amount does not have to be repaid.

Wellston is receiving $1 million to replace the water main and service line on New York and Broad Streets, including hydrants and service reinstatements. The loan includes $519,557 in principal forgiveness, meaning this amount does not have to be repaid.

Gallia County Rural Water Association is receiving $866,907 to construct an additional standpipe storage tank.

Matamoras is receiving $52,500 to finance a sewer system evaluation study.

The Nature Conservancy is receiving $827,600 in two loans from the Water Resource Restoration Sponsor Program (WRRSP) for two projects to protect 120 acres of riparian habitat of Mill Creek and 164 acres of headwater tributaries to Long Lick Run. Through the WRRSP, the Northeast Ohio Regional Sewer District in Cleveland is directing a portion of the interest to be repaid on its Shoreline Storage Tunnel project loan be used for the wetland restoration project.

Health departments, districts, and county commissions in the following counties are receiving $150,000 in principal forgiveness loans for the repair and replacement of household sewage treatment systems: Athens, Belmont, Coshocton, Harrison, Hocking, Jackson, Meigs, Monroe, Ross, Scioto, and Tuscarawas counties. Vinton county is receiving $125,000.

Created in 1989, the Water Pollution Control Loan Fund (WPCLF) helps communities improve their wastewater treatment systems. The Water Supply Revolving Loan Account (WSRLA), started in 1998, provides loans for improvements to community drinking water systems and nonprofit, noncommunity public water systems. Both programs offer below-market interest rate loans, which can save communities a substantial amount of money compared to a market-rate loan.

Ohio EPA's state revolving fund (SRF) loans are provided to communities to build and upgrade wastewater and drinking water infrastructure, upgrade home sewage treatment systems, better manage storm water, address combined sewer overflows, and implement other water quality-related projects. Financial assistance helps support planning, design, and construction activities and enhances the technical, managerial, and financial capacity of these systems. WPCLF loans also make possible the restoration and protection of some of Ohio's highest quality water bodies through the fund's Water Resource Restoration Sponsor Program.

Ohio's SRF loan programs are partially supported by annual federal capitalization grants and have grown substantially over time because of the revolving nature of the loan issuance and payments back into the fund. The SRF programs are managed by Ohio EPA's Division of Environmental and Financial Assistance, with assistance from the Ohio Water Development Authority. Ohio EPA is responsible for program development and implementation, individual project coordination, and environmental and other technical reviews/approvals of projects seeking funds. The Ohio Water Development Authority provides financial management of the SRF funds.

More information about the SRF loan program is available at: epa.ohio.gov/divisions-and-offices/environmental-financial-assistance/financial-assistance/defa-financial-assistance.

Information provided by Ohio EPA