Lula is one step closer to a new sewer system.

The North Hall city has received its "Notice of No Significant Impact On the Environment" from the state Department of Natural Resources.

The notice signifies that Lula’s proposed 375,000-gallon-per-day facility is environmentally sound.

The study was done to determine if the project is eligible for a loan from the federal government.

"It’s part of the stimulus money," City Manager Dennis Bergin said. "It’s an additional requirement that the federal government requires. So we’re pleased to be that far down the line."

Following a 30-day period to receive comments, the DNR will make a final decision regarding the $8.7 million loan.

"It is the final and last hurdle to getting stimulus money," Bergin said. "We have done everything. You name it and we’ve got it."

The wastewater treatment facility will serve the Lula area, which is projected to nearly triple in population by 2020 due to the massive Hagen Creek and Cane Creek communities that are slotted for development nearby.

Bergin said Lula’s sewer project was timed well to receive stimulus money.

"We are very fortunate to be in that position," he said. "Not everybody else can be. But it was a matter of timing when the stimulus money became available and when we were completing everything else."

Lula was poised to ask for a state loan for the project when city officials realized the federal loan would be a real possibility.

"This allows us to build the plant to an enhanced production standard," Bergin said. "We can build a bigger better plant."

Bergin said almost all the preliminary work for the project is complete.

"I actually sent a note (Thursday) without exaggeration that said we can start (construction) in 21 days," Bergin said.

One of the reasons the project fell in line for stimulus money is because it was so close to being ready for construction.

"It will create immediate jobs and we can start immediately," Bergin said.