Contact: MaryAnna Peavey, Grants & Loans Bureau Chief, maryanna.peavey@deq.idaho.gov
BOISE – The Idaho Department of Environmental Quality (DEQ) today announced the award of a $38,000,000 low-interest wastewater construction loan and $2,527,566 in Legislative Supplemental Funding to the City of Sandpoint in Bonner County, Idaho.
The funding will be used for phase one of wastewater infrastructure upgrade project. Liquid treatment and supporting infrastructure will be upgraded, including aeration basins, secondary clarifiers, and standby power generators.
The Idaho State Legislature authorized DEQ to receive and distribute the legislative supplemental funds to construct drinking water and wastewater infrastructure improvements per Idaho House Bill No. 455 sections 4 and 5 (2025).
DEQ is authorized by state law to make loans to assist in constructing public wastewater systems. Since the annual cost of wastewater service for residential customers exceeds 1.5% of the median household income, the City of Sandpoint qualifies for a disadvantaged loan which 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 2% interest rate, is payable over 30 years, and has $3,016,332 in principal forgiveness. The favorable terms represent a $34,463,713 savings to the community when compared to average costs for municipal general obligation debt issuances.