Danville Utilities has received substantial grants and low-interest loans to support major capital improvement projects aimed at enhancing service reliability and supporting regional growth. These projects include the expansion of the Southside Pumping Station, replacement of a critical gas main loop, and an inventory survey of lead and copper water pipes.
"We are thrilled to receive this significant funding, which will enable us to make essential upgrades to our infrastructure," said Jason Grey, director of Danville Utilities. "These projects are crucial for supporting our community's growth and ensuring the reliability of our services."
Expansion of Southside Pumping Station
Danville Utilities will undertake a $30 million project to expand the Southside Pumping Station's capacity from 7.6 million gallons of wastewater per day to 11 million gallons per day, addressing projected economic development growth.
This project is funded by a $10.5 million low-interest loan from the Virginia Department of Environmental Quality's Clean Water Revolving Loan program, with an interest rate of 0.5%. Additionally, a $4.5 million grant will be used for principal forgiveness under this loan program.
Preliminary engineering has been completed, and the expansion is expected to take four to five years. Danville Utilities will apply for an additional $15 million in funding this summer.
Replacement of a main gas loop
Last month, Danville Utilities received a $10 million grant to replace the leak-prone ductile iron gas main loop serving Goodyear Boulevard, Gypsum Road, and South Main Street. The current main, which serves Goodyear Tire & Rubber, will be replaced with a higher capacity steel gas main, resolving one of the most problematic areas for leaks in Danville Utilities' service network. The replacement will occur in three phases.
Lead and copper water pipe inventory
A third grant of $500,000 from the Virginia Department of Health will fund an inventory survey of lead and copper water pipes. This survey is scheduled to be completed by October, ensuring the community's water infrastructure meets safety and regulatory standards.
Electric vehicle fast charger
A fourth grant of $76,580 from the Department of Energy’s Energy Efficiency and Conservation Block Grant Program will cover the installation of a DC fast charger at the Danville Visitor Center at 645 River Park Drive.
DC fast chargers are currently the fastest charging option available for electric vehicles. They can charge a vehicle in less than an hour. The charger would be managed by a third party and charge rates that would cover electric costs for anyone using the fast charger.
Total funds
In total, Danville Utilities has secured $15.1 million in grants and $10.5 million in low-interest loans. The utility has also applied for an additional $45.5 million in grants and $33.9 million in low-interest loans to further support various capital improvement projects.
About Danville Utilities
Danville Utilities provides natural gas, water, wastewater and telecommunications services in Danville and distributes electricity to approximately 42,000 customer locations in a 500-square-mile service territory covering Danville, the southern third of Pittsylvania County, and small portions of Henry and Halifax counties.