$ 2 million will help restart a program that provides residents and businesses with hundreds of loans while an estimated 45,000 or more systems fail each year.
More Oregonians will have the chance to borrow to repair leaky sewage plants under a renewed state program. (Wikimedia Commons)
The invisible price of a failing sewage treatment plant at home is a bad smell.
The very visible sign is the softening of the soil on the underground sewage tank, resulting in leaks in waterways and repair and replacement costs that can range from $ 25,000 to $ 65,000. These are costs that are usually borne by the home or business owner.
A loan program from the state Department of the Environment (DEQ) and nonprofit lender Craft3 receives new funding to help. They have received $ 2 million from Oregon Legislature to distribute to people who need help paying the corrections starting this month.
This will resume a program that began in 2016 and ran out of money last year.
But Oregon’s aging and ailing septic systems problem affects far more people than there are credit enough to help.
According to DEQ and the Environmental Protection Agency (EPA), there are an estimated 450,000 wastewater treatment plants in use in the state. According to the EPA, ten to 20% of the wastewater treatment plants that often supply households that cannot be connected to a local sewage system fail every year.
That means an additional 45,000 to 90,000 wastewater treatment plants are added to the inventory of the failed systems each year. There is no formal count of the total number of systems that have failed in Oregon.
Between 2016 and 2020, DEQ and Craft3 issued loans to repair just over 180 septic tanks. Many were in rural and coastal parts of the state.
Deb Mailander, national on-site program manager for DEQ, wrote in an email: “Fewer water quality issues are in the vicinity of the home than wastewater treatment. For people living in rural areas, functioning wastewater treatment plants are critical to protecting public health and the state’s waters. “
About a third of households in Oregon rely on sewage treatment plants to move waste from their kitchens and bathrooms to underground tanks, according to DEQ. There it can be stored and bacteria can break down most of it. Many of these systems are now 50 or more years old and require extensive upgrading or replacement.
Some are affected by forest fires. According to Karen Lewotsky, director of the water program at Oregon Environmental Council, extreme heat can melt the plastic now used in the leach lines, which dump water from the tanks into the earth after the waste has decomposed.
Lewotsky said the loan program is “an investment that is justified not only from a rural equity perspective, but also from a public health perspective.”
Leaks from defective sewage treatment plants can cause feces, E. coli and nitrate to enter bodies of water and coastal habitats and affect drinking water, which makes animals and people sick.
The loan program between DEQ and Craft3 initially started in 2016 and ran for four years before the money ran out. During that time, DEQ and Craft3 raised more than $ 3.6 million in 187 loans. That is around 47 new or improved wastewater treatment plants per year.
“In a perfect world, banks would give people home equity loans in exchange,” said Adam Zimmerman, CEO of Craft3 in Portland.
But not everyone will qualify for this funding round. Many of the Craft3 loans go to people who would otherwise not receive a loan from a conventional bank due to poor or poor creditworthiness.
“There is no viable way to provide such loans,” said Zimmerman.
A third of household recipients of Craft3 loans between 2016 and 2020 had low incomes, defined as those who earned 80% or less of a region’s median income. The loans are available to homeowners, RV parks, and small businesses.
To be eligible for the loan, a septic system must be at least 25 years old, fail, or the home or business owner must be directed by local health authorities to repair it.
The average loan made between 2016 and 2020 was around $ 20,000. All loans also include a reserve of $ 2,000 to cover future maintenance.
The lowest income applicants have priority, according to Zimmerman, and some of the beneficiaries will never have to make payments. For some who need to repair the sewage treatment plant as a condition of selling their homes, they can repay the loan on transfer of ownership to new owners.
In a leaflet about the septic tank loan program, DEQ wrote that failing sewage treatment plants and the resulting wastewater are the most common cause of complaints they receive from the public about water quality.
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