Assistant to the Secretary for Rural Development Anne Hazlett today announced that the U.S. Department of Agriculture (USDA) is investing $267 million in 103 infrastructure projects to upgrade water and wastewater systems in rural communities. Included in this announcement, Tennessee State Director Jim Tracy announces seven projects in Tennessee with an investment of over $511 million in loans and over $6.1 million in grants.
“Having access to adequate clean water is vital to the prosperity of Tennessee’s rural communities” Tracy said. “We are grateful for Secretary Perdue’s commitment to be a strong partner addressing infrastructure needs.”
USDA is making investments in six Tennessee counties through the Water and Waste Disposal Loan and Grant program. The funds can be used to finance drinking water, storm water drainage and waste disposal systems for rural communities with 10,000 or fewer residents.
Below are some examples of USDA’s partnerships in water infrastructure:
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The Blountville Utility District in Sullivan County will receive a $500,000 loan and a $200,000 grant to replace asbestos cement lines along Highway 126 and County Hill Road. Over the years, these lines have developed leaks that are increasingly in need of repair. This is a cost overrun for a project. USDA Rural Development originally funded the project in FY 2017 with a $2,200,000 Rural Development WEP loan and $600,000 WEP grant. This project will serve 5,106 residential customers and 231 commercial customers.
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The city of Erin, Tenn., will use a $2.1 million loan and a $1.4 million grant to improve its wastewater treatment plant, nearly doubling its capacity. This will help the city recruit more industry. The plant serves the residents of Erin and Tennessee Ridge as well as businesses in the Houston County Industrial Park. However, it is obsolete and very expensive to operate. USDA’s investment will benefit 625 commercial and residential customers.
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The DeWhite Utility District in White County will use a $2.6 million loan and $900,000 grant for the replacement of waterlines which will transmit water at an appropriate flow and pressure to the residents who live in the western region of DeWhite Utility District's system. This waterline replacement project will address this problem by improving distribution system performance for its customers with a new 12-inch waterline in two places along Smithville Highway. This project will provide adequate potable water to 2,503 customers located in this area.
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The city of McKenzie in Carroll County will receive a $1 million loan and a $250,000 grant to replace equipment and make minor facility improvements at the waste water treatment plant (WWTP). Improvements include replace pump stations at the Keko, Como, and Booker locations, repair of the Manley Pump Station electrical system, and rehabilitation of 11,600 feet of line, perform 60 point repairs on the gravity sewer, replace five manhole frames and covers, perform 10 manhole rehabilitations, and reconnect 200 service lines. The work is being done meet a Consent Order by the Tennessee Department of Conservation which ordered a continued effort to reduce to inflow and infiltration, make improvements to the operational condition of the WWTP lab and installation/replacement of dual operating pumps in the system lift stations.McKenzie has a population of 5,310 and all residents will benefit from this project.
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The city of Mt. Pleasant located in Maury County will use a $6.8 million loan and a $2.5 million grant to modify the existing WWTP utilizing the Biomag process to increase the plant treatment capacity. This will allow for the decommissioning of the existing spray field and will utilize a significant amount of the existing WWTP infrastructure. The improvements will include new headworks, basin renovations and new pumps and mixers as needed. The existing lagoons will be used for stabilization/equalization ponds as needed. The remaining debt at State Revolving Loan will be paid off with loan only funds to alleviate the need for excessive rate increases to service existing and new debt.
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The city of South Fulton in Obion County will receive a $1.1 million loan and a $904,000 grant to rehabilitate the sewer collection system which has been experiencing severe infiltration and inflow. The completion of this project will alleviate health and sanitary issues that may arise in the future.
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The Walden’s Ridge Utility District (WRUD) in Hamilton County will receive a $600,000 loan to be used as a cost overrun to purchase the town of Signal Mountain's water system. Prior to the submittal of a purchase proposal in early March 2018, WRUD had an assessment completed on the assets of the town's water system. This assessment showed the assets to be worth more than originally anticipated, so WRUD deemed it necessary to increase the amount of its proposal by $600,000. With this increase it felt the offer would be more competitive with the submitted Tennessee American Water Company quote and in line with the true value. Original funding was a $4,000,000 Rural Development loan that was obligated in FY 2017.
In FY 2018, Congress provided a historic level of funding for water and wastewater infrastructure. The 2018 Omnibus spending bill includes $5.2 billion for USDA loans and grants, up from $1.2 billion in FY 2017. It also directs Agriculture Secretary Perdue to make investments in rural communities with the greatest infrastructure needs.
Rural community leaders can apply for these funds electronically by using the interactive RD Apply tool. They can also apply through one of USDA Rural Development’s state or field offices.
In April 2017, President Donald J. Trump established the Interagency Task Force on Agriculture and Rural Prosperity to identify legislative, regulatory and policy changes that could promote agriculture and prosperity in rural communities. In January 2018, Secretary Perdue presented the Task Force’s findings to President Trump. These findings included 31 recommendations to align the federal government with state, local and tribal governments to take advantage of opportunities that exist in rural America. Increasing investments in rural infrastructure is a key recommendation of the task force.
To view the report in its entirety, please view the Report to the President of the United States from the Task Force on Agriculture and Rural Prosperity (PDF, 5.4 MB). In addition, to view the categories of the recommendations, please view the Rural Prosperity infographic (PDF, 190 KB).
USDA Rural Development provides loans and grants to help expand economic opportunities and create jobs in rural areas. This assistance supports infrastructure improvements; business development; housing; community services such as schools, public safety and health care; and high-speed internet access in rural areas. For more information, visit www.rd.usda.gov/tn.