Where: Town of Carbonado, Pierce County, Washington

Problem: A small water system needed interim financing to replace an aging water system.

Solution: RCAC’s Loan Fund provided a $1.3 million environmental infrastructure loan.

The Town of Carbonado is located in Pierce County, Washington, approximately 50 miles southeast of Seattle. Once a coal-mining town, it is now a bedroom community for Tacoma. Recent census data places the town’s population at 610 with a median household income (MHI) of $48,846, well below the state’s non-metro MHI of $60,049. The small, rural community’s water distribution system was aging and needed to be replaced.

The major construction project included replacing the old asbestos water lines and distribution system, while also replacing the sewer system. Two separate projects were bid as one to save costs but will be financed separately. U.S. Department of Agriculture is providing both grant and loan funds but required the town to obtain interim financing for the loan portion.

RCAC provided a $1.3 million environmental loan for the water system project, ensuring that the town can complete the upgrades timely and reduce the maintenance costs and water loss due to leaky, aging lines. The new system will enable the town to meet its water needs for the foreseeable future.