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DEQ awards $7.3 million to city of Cottonwood 

March 18, 2024 

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 $7,391,856 low-interest wastewater construction loan to the city of Cottonwood in Idaho County, Idaho. 

The funding will be used to expand the current reuse system, construct new headworks, and upgrade the existing lagoon. 

DEQ is authorized by state law to make loans to assist in the construction of public wastewater systems. Since the annual cost of residential wastewater services exceeds 1.5% of the median household income, the city of Cottonwood 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 U.S. Environmental Protection Agency, carries a simple 1.75% interest rate, is payable over 30 years, and has a $2,913,696 principal forgiveness. The favorable loan terms represent a $4,425,615 savings to the community when compared to average costs for municipal general obligation debt issuances. 

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