July 10, 2023
Contact: MaryAnna Peavey. Grants and Loans Bureau Chief, MaryAnna.Peavey@deq.idaho.gov
BOISE — The Idaho Department of Environmental Quality (DEQ) today announced the award of a $1,000,000 low-interest drinking water construction loan to Yellow Pine Water Users Association, Valley County.
The funding will be used for phase one, which consists of intake modification, construction of a new water treatment facility and modification to the existing storage reservoir, water main replacements, and easements.
DEQ is authorized by state law to make loans to assist in the construction of public drinking water systems. Since the annual cost of drinking water service for residential customers exceeds one and one-half percent of the median household income, Yellow Pine Water Users Association qualifies for a disadvantaged loan that carries favorable repayment terms.
The loan from DEQ’s State Revolving Loan Fund, which is capitalized annually by grants from the United States Environmental Protection Agency, carries a simple 1.50% interest rate, is payable over 30 years, and has a $500,000 principal forgiveness. The favorable loan terms represent a $1,030,974 savings to the community when compared to average costs for municipal general obligation debt issuances.