Westborough Gets $24M for Wastewater Treatment
Wednesday, April 17, 2013
“We had previously obtained two percent funding,” said Jack Goodhall, Town Engineer. “We started the construction under that funding and applied for the zero percent funding as soon as it was available. We let the state know that we were interested in the zero percent funding when it became available,” he said.
The Patrick-Murray Administration announced that the Town of Westborough qualified for a zero percent interest rate loan from the Massachusetts Water Pollution Abatement Trust (MWPAT) to help finance the town's $53 million wastewater treatment plant upgrade. The Clean Water State Revolving Fund (SRF) interest-free loan of more than $24.2 million, available under the "O'Leary Provision," will save Westborough $5.4 million in interest payments over the 20-year life of the loan.
Environmental requirements met
The O'Leary Provision was passed by the legislature in 2008. The law reduces the standard SRF loan interest rate of 2 percent down to zero percent, provided that the proponent meets certain prescribed criteria, such as the abatement of nutrient-rich wastewater discharges to the environment.
In addition to the SRF interest-free savings, the project previously qualified for principal forgiveness under the federal American Recovery and Reinvestment Act (ARRA), saving an additional $6 million. In total, the town is saving $11.4 million on this project during the life of the loan.
"Communities often need to upgrade wastewater treatment plants and sewer systems to protect the environment and the public health, but these projects can place an enormous financial burden on the ratepayers," said Energy and Environmental Affairs Secretary Rick Sullivan. "But the combination of the SRF 'O'Leary Provision' and the ARRA funding has produced a tremendous result for Westborough - a healthier Assabet River at a much lower cost to the community."
"The health and economic well-being of those who live in Westborough are inextricably linked to the success of this treatment facility upgrade," said Treasurer Steven Grossman. "This loan demonstrates our ongoing commitment to funding low-cost infrastructure projects that eliminate environmental threats across the Commonwealth."
New plant will conform to EPA permit requirements
The Westborough facility treats wastewater from the town and discharges the treated effluent to the Assabet River. The Assabet is listed as a "distressed waterway" due to severe eutrophication as a result of excessive nutrients, such as phosphorous and nitrogen, in the waterway. In 2005, the U.S. Environmental Protection Agency (EPA) imposed strict phosphorous and copper discharge limits on the town. This project will upgrade the treatment plant to enable it to achieve compliance with that EPA permit.
"Nutrient pollution in the wastewater discharged to the Assabet River causes algal blooms and slowly degrades the water quality of the river," said Commissioner Kenneth Kimmell of the Massachusetts Department of Environmental Protection (MassDEP). "Zero percent SRF loans are the state's capital investment in restoring natural resources and maintaining the ecological well-being of waterways like the Assabet as a place that people want to visit and enjoy."
Besides the $24.2 million zero percent interest loan and the $6 million in ARRA principal forgiveness, the remaining $22.8 million cost for the treatment plant upgrade is being funded through a separate 2 percent interest, 20-year SRF Clean Water loan.
Legislators and department heads respond
"I greatly appreciate the leadership of the Patrick-Murray Administration and their steadfast efforts to find cost-effective solutions to upgrade water infrastructure and alleviate water pollution in Westborough," said Senator Jamie Eldridge. "This grant will enable the Assabet River to improve its water quality standards and reduce the buildup of phosphorous and nitrogen that flows from the Westborough Wastewater Treatment Plant and improve the oxygen supply for fish and wildlife."
"The benefits of this loan will last far into the future. Westborough will save more than $5 million in interest payments and will also benefit from improved environmental outcomes for the entire water basin and the Assabet River," said Representative Carolyn Dykema. "Investing in our water infrastructure is a critical component of growing our economy and I'm pleased that this partnership among local, state and federal officials will bring the Westborough wastewater treatment plant upgrade to fruition."
"I am all too familiar with wastewater issues and the negative economic impact federal requirements can have on our cities and towns," said Representative Danielle W. Gregoire. "In a time when unexpected financial pressures can crush our municipalities, it is appropriate for the Commonwealth to step in and help to relieve those pressures when possible. We must continue to invest in our communities and protect our environment and this zero percent loan makes it possible for the Town of Westborough to do both without negatively impacting ratepayers."
"With this interest-free loan coupled with the additional savings, Westborough will be able to modernize their wastewater treatment plant with a minimal financial burden to the town," said Representative Matthew A. Beaton. "I'm pleased to see this project move forward and commend all those involved in securing the needed resources to update the facility."
"The towns of Westborough, Shrewsbury and Hopkinton worked with the state to obtain the best financing possible and, with a combination of ARRA funding and the zero percent loan, the towns achieved an annual cost reduction of $661,321. For Westborough alone, this is a $251,302 savings per year," said Westborough Town Manager Jim Malloy. "The combination of these savings reduced the projected rate increase for this project by approximately 9 percent, which is a direct savings to the ratepayers in all three communities."
To qualify for a zero percent interest SRF loan under the O'Leary Provision, communities must: address nutrient-rich wastewater discharges to the environment; conduct a comprehensive wastewater management planning process; ensure that the project is consistent with any regional water resource management plan; implement ordinances to prevent the wastewater system from creating uncontrolled growth or sprawl; and the community cannot be subject to any state or federal nutrient-related consent order.
Construction on the plant that serves Westborough, Shrewsbury and Hopkinton is scheduled for completion by year-end.
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