Tennessee – Gov. Bill Lee and Tennessee Department of Environment and Conservation (TDEC) Commissioner David Salyers announced on Wednesday a $15.9 million loan to the City of Clifton aimed at overhauling its drinking water infrastructure. The funding will support the construction of a new drinking water treatment plant, addressing urgent needs in a community recently identified as having elevated levels of PFAS in its source water.
The loan, issued through the state’s Drinking Water State Revolving Fund Loan Program, comes with a 20-year repayment term and a low interest rate of 1.32%. As a designated disadvantaged community, Clifton qualifies for substantial financial relief—receiving nearly $5 million in standard loan forgiveness. In addition, due to the high levels of per- and polyfluoroalkyl substances (PFAS) found in its water supply, Clifton has secured an additional $5.2 million in loan forgiveness to invest in technology that will effectively treat and remove the harmful chemicals.
“Tennessee continues to support infrastructure investments for a growing state, including water quality improvements,” said Gov. Lee. “We are pleased these funds will make projects affordable to deliver important resources for Tennesseans across the state.”
Commissioner Salyers echoed the governor’s sentiments, highlighting the importance of the state’s revolving loan programs in empowering communities to address critical water needs. “Quality water infrastructure is vital for a community, and we are glad this program can assist Clifton,” Salyers said. “The low-interest loans make it possible for communities to make improvements they need and deserve.”
Tennessee’s Drinking Water State Revolving Fund Loan Program has played a central role in supporting public health and environmental stewardship since its creation in 1996, awarding over $300 million in low-interest loans to communities across the state. Combined with the Clean Water State Revolving Fund Loan Program, which has issued more than $2 billion since 1987, these programs offer communities financing options well below market rates—some as low as zero percent.
For the current fiscal year alone, TDEC has awarded more than $58.5 million in drinking water loans and over $75.7 million in clean water loans to help meet infrastructure needs statewide.
As Clifton prepares to build a new treatment facility and introduce advanced filtration technologies, city officials say the project represents a critical investment in public health and long-term environmental sustainability.