Governor Hochul Announces $265 Million Investment to Make Water Infrastructure Projects Affordable Across New York State

Includes $30 Million in Grants from the Federal Bipartisan Infrastructure Law to Inventory Lead Service Lines in Drinking Water Systems in 30 Communities

Approval of Financial Assistance Authorizes Municipal Access to the Capital Needed for Projects that Reduce Risks to Public Health and the Environment

Governor Kathy Hochul today announced the New York State Environmental Facilities Corporation (EFC) Board of Directors approved $265 million in financial assistance for water infrastructure improvement projects across the state. The Board's approval authorizes municipal access to low-cost financing and grants to get shovels in the ground for critical water and sewer infrastructure projects. Of the project funding approved today, $30 million in grants from the federal Bipartisan Infrastructure Law (BIL) will help 30 communities across the state to inventory lead service lines in drinking water systems, a vital first step for starting replacement projects and protecting public health.

“Improving our water infrastructure is essential for building safe and healthy New York communities,” Governor Hochul said. “This financial assistance makes all the difference in being able to provide safe drinking water to New Yorkers, protect our natural resources, and ensure the projects are successful and affordable.”

The Board approved grants and financings to local governments from BIL, the Clean Water and Drinking Water State Revolving Funds (CWSRF and DWSRF), and grants already announced pursuant to the Water Infrastructure Improvement (WIIA) program. Leveraging BIL funding with the State’s investments will continue to empower local communities to make critical system improvements to safeguard public health, protect the environment, bolster communities’ climate readiness, and promote economic development. BIL funding for water and sewer infrastructure is administered by EFC through the State Revolving Funds.

Environmental Facilities Corporation President & CEO Maureen A. Coleman said, “Thanks to Governor Hochul’s sustained commitment to making generational investments and bolstering efforts to replace lead service lines and address pollution, communities statewide are taking steps to ensure access to safe drinking water and modernize aging wastewater systems. Today’s announcement of $265 million for water infrastructure projects provides critical funding for municipalities making upgrades to address lead service lines and other threats to clean water and public health.”

New York State Department of Environmental Conservation Interim Commissioner Sean Mahar said, “The State’s more than $265 million investment announced today will provide local municipalities with the resources they need to design and implement essential water infrastructure improvements statewide. I applaud Governor Hochul’s sustained, generational investments to improve New York State’s water infrastructure and EFC’s ongoing assistance to small and disadvantaged communities to help address historic inequities, further safeguard public health, benefit the environment, and strengthen local economies.”

Health Commissioner Dr. James McDonald said, “Access to clean, safe drinking water is fundamental to protecting public health. Governor Hochul’s investment in reducing lead service lines in community drinking water systems and upgrading aging wastewater systems is a huge step toward reducing risks to public health today and in the future.”

Secretary of State Walter T. Mosley said, “The continued funding commitments for water infrastructure underscore the Governor’s priority for building healthy communities by modernizing water systems that are critical to environmentally sustainable communities. The financial assistance of $265 million approved by the Environmental Facilities Corporation will help localities, in need of grants and low-cost financing, put shovels in the ground to replace aging water infrastructure across the state so New Yorkers can have access to clean drinking water for years to come.”

U.S. Environmental Protection Agency Regional Administrator Lisa F. Garcia said, “Many communities across New York have struggled with the daunting expense of fixing aging sewage and drinking water infrastructure, including finding and replacing lead service lines. EPA and New York are making historic investments to change that. With support from federal and state funding and the Bipartisan Infrastructure Law, New York communities are now better equipped to upgrade sewer systems, improve drinking water plants and replace lead pipes to protect our kids and ensure public health and better quality of life.”

Senate Majority Leader Charles Schumer said, “There is nothing more important than keeping New York’s drinking water safe for our children and families. Now, thanks to our Bipartisan Infrastructure Investment & Jobs Law, a major $30 million is flowing to support water infrastructure projects across the state. This project will ensure that people across the state have access to safe drinking water—while helping improve public health, protect the environment and bolster economic development. I led the charge in the Bipartisan Infrastructure Law to deliver the funding to get the lead out, because no amount of toxic lead exposure is safe for our children. I thank Governor Hochul for her commitment to ensuring that all New Yorkers have access to clean water.”

Representative Adriano Espaillat said, “Clean drinking water is vital to the health, safety, and well-being of communities across our state. I am appreciative to Governor Hochul and the NYS Environmental Facilities Corporation board of directors for their initiative to further expand and improve clean water infrastructure and related projects around the state. Today’s announcement reaffirms our collaborative efforts at the local, state, and federal levels of government to improve the lives of all New Yorkers.”

Clean Water Projects:

• Town of Bath - $2,580,413 grant and $1,124,789 interest-free financing from BIL; a $1,249,790 WIIA grant from the Clean Water, Clean Air, and Green Jobs Environmental Bond Act; and $3,798,175 market-rate financing from the CWSRF for the planning, design, and construction of the Lake Salubria collection sewer extension in the town.
• Town of Bellmont - $376,750 interest-free financing from the CWSRF and a $92,250 WIIA grant for the planning, design, and construction of equipment at the Brainardsville Sewer District Wastewater Treatment Facility.
• Village of Brownville - $1,724,500 interest-free financing from the CWSRF and a $275,500 WIIA grant for the planning, design, and construction of effluent disinfection and other improvements at the village's wastewater treatment plant.
• Buffalo Sewer Authority - $3,333,000 grant and $3,147,000 interest-free financing from BIL for the planning, design, and construction of sewer system real time control sites.
• Village of Catskill - $7,569,500 grant and $3,853,187 interest-free financing from BIL, and a $3,716,313 WIIA grant for the planning, design, and construction of collection system and wastewater treatment plant upgrades to eliminate combined sewer overflows in the village.
• Town of De Kalb - $1,305,500 grant from BIL; $1,250,000 grant, $1,144,500 interest-free and $1,000,000 market-rate financing from the CWSRF; and a $1,250,000 WIIA grant for the planning, design, and construction of wastewater treatment plant and collection system improvements.
• Village of Herkimer - $3,275,200 grant and $2,676,200 interest-free financing from BIL; a $4,997,750 WIIA grant; and a $4,997,750 CWSRF grant for the planning, design, and construction of collection system and wastewater treatment plant upgrades. This project will also be funded with a $4,033,100 Sewer Overflow and Stormwater Reuse Municipal Grant.
• Town of Martinsburg - $1,366,200 interest-free and $378,400 market-rate financing from the CWSRF; a $148,814 WIIA grant; and a $106,586 WIIA grant from the Bond Act for the planning, design, and construction of wastewater treatment plant and collection system improvements.
• Town of Moriah - $4,286,498 interest-free and $2,500,000 market-rate financing from the CWSRF, and a $3,577,469 WIIA grant for the planning, design, and construction of collection system upgrades.
• Town of Newfane - $3,401,325 interest-free and $3,401,325 market-rate financing from the CWSRF, and a $1,849,350 WIIA grant for the planning, design, and construction of wastewater treatment plant process upgrades.
• Rensselaer County - $2,240,680 interest-free and $2,240,679 market-rate financing from the CWSRF, and a $307,250 WIIA grant for the planning, design, and construction of wastewater treatment plant improvements.
• Saratoga County - $15,195,476 interest-free and $15,195,476 market-rate financing from the CWSRF, and a $5,087,500 WIIA grant for the planning, design, and construction of wastewater treatment plant ammonia removal upgrades.
• Village of Sodus - $287,953 interest-free and $591,330 market-rate financing from the CWSRF, and a $67,717 WIIA grant from the Bond Act for the planning, design, and construction of disinfection improvements at the wastewater treatment plant.
• City of Syracuse - $3,240,500 grant and $3,240,500 interest-free financing from BIL for the planning, design, and construction of sanitary sewer improvements to reduce inflow and infiltration to the sanitary sewer system.
• Town of Thompson - $6,939,000 grant and $5,337,679 interest-free financing from BIL; $416,800 market-rate financing from the CWSRF; and a $3,363,899 WIIA grant for the planning, design, and construction of upgrades to the Emerald Green Wastewater Treatment Plant.
• Town of Webb - $706,023 interest-free and $1,706,023 market-rate financing from the CWSRF, and a $470,683 WIIA grant for the planning, design, and construction of wastewater treatment plant upgrades.
• Westchester County - $8,120,525 interest-free and $8,120,524 market-rate financing from the CWSRF for the planning, design, and construction of the Peekskill Wastewater Treatment Plant digester, aeration, and heating system.

Drinking Water Projects:

• Town of Alexander - $136,000 WIIA grant for the creation of Water District No. 6, including installation of approximately 94,400 linear feet of water mains, hydrants, valves, and appurtenances.
• Village of Delanson - $236,129 interest-free and $472,258 market-rate financing from the DWSRF, and a $1,060,455 WIIA grant for the installation of new Granular Activated Carbon filters at the water treatment plant for the removal of disinfection byproducts precursors.
• Dix Hills Water District - $3,000,000 WIIA grant for the installation of an Advanced Oxidation Process treatment system for 1,4-dioxane removal and the replacement of Granular Activated Carbon media in the existing vessels.
• City of Glen Cove - $3,000,000 WIIA grant for the design and construction of a new treatment process at the existing water treatment facility at the Duck Pond Road site to remove dichlorofluoromethane (Freon-22) from Wells 30 and 31.
• Village of Hamilton - $2,244,000 WIIA grant for the construction of a new drinking water well source and well house.
• Town of Louisville - $1,409,471 market-rate financing from the DWSRF and a $1,213,215 WIIA grant for the replacement of all five existing aged filters with a new ultrafiltration treatment system, including associated controls and SCADA upgrades at the water treatment plant.
• Village of Marathon - $465,000 WIIA grant for the installation of two water main crossings of the Tioughnioga River and associated appurtenances.
• City of Oneonta - $2,000,000 grant and $3,072,625 interest-free financing from BIL, and a $3,000,000 WIIA grant for upgrades to the water treatment plant and storage and distribution system.
• Town of Scio - $255,000 grant and $765,000 interest-free financing from BIL; $100,000 interest-free and $200,000 market-rate financing from the DWSRF, and a $1,530,000 WIIA grant for the installation of a new water storage tank to replace the existing tank on Davis Hill Road, and replacement of approximately 5,000 linear feet of aged water main, including appurtenant hydrants and valves.
• Village of South Blooming Grove - $1,759,115 interest-free and $3,518,228 market-rate financing from the DWSRF, and a $4,702,657 WIIA grant for the construction of a new pump station at the Mangin Road storage, treatment, and pumping site, construction of a 400,000-gallon elevated steel water storage tank to replace the existing Fort Worth storage tanks, construction of two wells and associated appurtenances, and replacement of approximately one mile of existing water main and appurtenances.
• Town of Vestal - $991,610 WIIA grant for the installation of approximately 3,900 linear feet of new water main, including associated hydrants, valves, and restoration on Old Vestal and Bunn Hill Roads.
• Westbury Water District - $8,976,000 WIIA grant for the design and construction of a new treatment process at the existing water treatment facility to remove nitrate, volatile organic compounds, 1,4-dioxane and perfluorooctanoic acid from Well Nos. 10 and 14.
• Village of Woodridge - $5,000,000 grant and $3,800,000 interest-free financing from BIL for the replacement of water main, construction of a new water storage tank, replacement of the existing slow sand filters with an ultrafiltration system, rehabilitation of the existing sludge settling lagoon, and a new SCADA system.
• City of Yonkers - $2,593,128 WIIA grant for the replacement of approximately 300 linear feet of the Wendover Transmission Main where it crosses below the Saw Mill River Parkway.

The Board also approved approximately $30 million for lead service line inventory projects for the following municipalities:

• City of Albany
• Town of Amenia
• City of Auburn
• Village of Bath
• Village of Catskill
• Village of Delhi
• Village of Herkimer
• City of Hudson
• Village of Ilion
• Village of Liberty
• City of Little Falls
• City of Lockport
• Village of Malone
• Village of New Paltz
• City of Newburgh
• City of Niagara Falls
• City of Ogdensburg
• City of Oneonta
• Village of Penn Yan
• City of Port Jervis
• Village of Potsdam
• City of Poughkeepsie
• City of Schenectady
• City of Syracuse
• City of Troy
• Upper Mohawk Valley Water Authority
• Village of Walton
• Village of Warwick
• City of Watervliet
• Village of Westfield

Refinancing Completed Projects Will Achieve Long-Term Debt Service Savings

The Board also took action to help ensure continued, long-term affordability of existing projects. The Board approved long-term, interest-free financing totaling over $20 million for projects undertaken by the Town of Rockland, the Village of Tupper Lake, and the Water Authority of Great Neck North.

Short-term financing provides capital for design and construction of projects. Once project construction is completed, the short-term financing is typically refinanced to long-term financing for up to 30 years, saving municipalities significant interest expenses versus financing on their own. Based on current market conditions, these long-term financings are projected to save local ratepayers an estimated $26.6 million in interest payments over the life of the financings.

New York's Commitment to Water Quality

New York State continues to increase its nation-leading investments in water infrastructure, including more than $2.2 billion in financial assistance from EFC for local water infrastructure projects in State Fiscal Year 2024 alone. With $500 million allocated for clean water infrastructure in the FY24 Enacted Budget announced by Governor Hochul, New York will have invested a total of $5.5 billion in water infrastructure between 2017 and this year.

Governor Hochul’s State of the State initiatives are helping to ensure ongoing coordination with local governments and ensure communities can leverage these investments. The Governor increased WIIA grants for wastewater projects from 25 to 50 percent of net eligible project costs for small, disadvantaged communities. The Governor also expanded EFC’s Community Assistance Teams to help small, rural and disadvantaged communities leverage this funding and address their clean water infrastructure needs.

REF: New York State