Governor Hochul Secures $185 Million Investment for Critical Water Infrastructure Projects Statewide
Governor Kathy Hochul today announced the Environmental Facilities Corporation Board of Directors approved over $185 million in direct financial assistance for water infrastructure improvement projects across New York State. The Board's approval authorizes municipal access to over $94.7 million in low-cost short-term financing and previously announced grants to get shovels in the ground for critical water and sewer infrastructure projects, including treatment processes to remove emerging contaminants from drinking water.
The Board also took action to help ensure continued, long-term affordability of existing projects. This includes a $189 million bond sale which, when combined with previously authorized grants will save municipalities an estimated $125 million in debt service payments for 25 projects statewide.
“New York is committed to providing reliable access to clean and safe water,” Governor Hochul said. “This historic investment is a key step towards bolstering our environmental resiliency, public health, and economic development in communities across the state.
The funding approved today includes over $44 million from the federal Bipartisan Infrastructure Law (BIL). BIL funding for water and sewer infrastructure is administered by EFC through the State Revolving Funds. New York City was approved to receive a $42 million long-term interest-free BIL financing for the North River cogeneration and electrification project that’s underway. Based on current market conditions, this interest-free financing is projected to save city ratepayers an estimated $33 million over 30 years. A $2 million BIL grant was also approved for Hicksville in Nassau County for a drinking water project to treat emerging contaminants.
Environmental Facilities Corporation President & CEO Maureen A. Coleman said, “The significant investment announced today underscores Governor Hochul’s commitment to providing access to clean, safe water in New York State, improving quality of life and opening the door to future opportunities. EFC’s efforts are designed to build local capacity and position communities to successfully and affordably undertake their critical water and sewer projects. EFC is focused on helping communities by serving as a resource – whether the need is for technical or financial assistance.”
New York State Department of Environmental Conservation Commissioner and EFC Board Chair Basil Seggos said, “This substantial investment approved today will support statewide efforts to upgrade aging infrastructure and safeguard vital drinking water supplies for future generations. Governor Hochul is advancing generational investments to improve New York State's water quality by ensuring local communities have the resources and technical expertise to fund these essential projects, which will protect public health and support safe, clean water supplies in the years to come.”
New York State Health Commissioner Dr. James McDonald said, “This significant investment will enhance the state’s infrastructure and improve the quality of life for all New Yorkers. Access to clean drinking water is paramount to public health and this critical initiative will help ensure the safety and wellbeing of residents throughout the state.”
Secretary of State Robert J. Rodriguez said, “Clean and accessible drinking water is a key priority for communities across the state. New York continues to make proactive investments – including over $185 million dollars – to provide support for improvements to critical water infrastructure. These investments within our cities and towns will help to sustain and improve our water infrastructure for generations to come.”
Senate Majority Leader Charles Schumer said, “The historic investments I secured in the Bipartisan Infrastructure & Jobs Law are flowing and getting shovels in the ground to ensure clean safe drinking water and make critical upgrades for wastewater infrastructure projects across the Empire State. These long overdue projects won’t just help make New York’s water healthier and cleaner, but it also means lots of good paying jobs and a better future for communities across New York. I am proud to deliver this critical federal funding to boost these projects, and I applaud Governor Hochul for her leadership. Together, we are turning the tide on New York’s aging water infrastructure.”
Representative Grace Meng said, "As New York's Representative on the Regional Leadership Council in Congress, I am elated to see funding directed to improve our state's critical water and sewage infrastructure. The funding approved includes $44 million in federal dollars provided by the Bipartisan Infrastructure Law passed by House Democrats two years ago. I have long worked to champion water infrastructure improvements and I'll continue to work with the Biden Administration and my colleagues in New York to ensure this unprecedented infrastructure bill is delivering for New York."
Representative Adriano Espaillat said, “I commend Governor Hochul on today’s announcement allocating federal funding I helped secure in Congress through the Bipartisan Infrastructure Act, to bolster water projects and resources to communities across our state. This funding will be directed to assist clean water and drinking water projects, among others, to ensure the safety and well-being of my constituents and all New Yorkers. Importantly, it will foster disaster resilient infrastructure, stormwater management, and the integration of future-looking climate change projections into New York’s drainage systems.”
The Board's approvals include financings through the Clean Water State Revolving Fund and Drinking Water State Revolving Fund, and grants already announced pursuant to the Water Infrastructure Improvement and Intermunicipal Grant programs.
Clean Water Projects:
- Village of Carthage, Jefferson County – $231,750 short-term, interest-free financing and $561,375 WIIA grant for the planning, design and construction of collection system improvements. The Village also will receive a $1,726,900 Sewer Overflow and Stormwater Reuse Municipal grant.
- Town of Cherry Creek, Chautauqua County – $1,573,000 short-term, interest-free financing for the planning, design and construction of sanitary sewer and wastewater treatment improvements at the town's water pollution control facility.
- Village of Depew, Erie County – $202,500 short-term, interest-free financing, $877,500 short-term market-rate financing and $458,750 WIIA grant for the planning, design and construction of sanitary sewer improvements to reduce inflow and infiltration in the village's collection system.
- City of Peekskill, Westchester County – $750,000 WIIA grant for the planning, design and construction of sanitary sewer main improvements at Lower South Street, including installation of a new pump station and force main to reduce inflow and infiltration to Westchester County’s Peekskill Wastewater Treatment Plant.
Drinking Water Projects:
- Carle Place Water District, Nassau County – $5,000,000 WIIA grant for the installation of an advanced oxidation process treatment system and a granular activated carbon treatment system at Well No. 5 for the removal of 1,4-dioxane.
- Garden City Park Water District, Nassau County – $4,363,200 WIIA grant for the installation of an advanced oxidation process treatment system for the removal of 1,4-dioxane and a granular activated carbon system for the removal of PFOA and PFOS.
- Genesee County – $1,213,600 IMG for improvements to the county water supply to allow for an additional 2.4 million gallons per day through the Monroe County Water Authority water supply.
- Hampton Bays Water District, Suffolk County – $2,724,000 WIIA grant for the installation of two 12" water transmission mains across the Shinnecock Canal and the Shinnecock Bay.
- Hicksville Water District, Nassau County – $3,000,000 WIIA grant and $2,000,000 BIL-Emerging Contaminants (EC) grant for the installation of advanced oxidation process and granular activated carbon treatment system at Plant No. 6 wells 6-1R and 6-2 for the removal of 1,4-dioxane, PFOA and PFOS.
- Plainview Water District, Nassau County – $13,840,200 WIIA grant for the installation of an advanced oxidation process treatment system and a granular activated carbon treatment system at Plant No. 5, Well Nos. 5-1, 5-2, 5-3 and 5-4 for the removal of 1,4-dioxane, PFOA and PFOS.
- Saratoga County Water Authority, Saratoga County – $10,000,000 short-term market-rate financing for the construction of an additional 5-million-gallon water storage tank adjacent to the existing 5-million-gallon water tank at the Cordero Drive Tank site.
- South Farmingdale Water District, Nassau County – $3,000,000 WIIA grant for the installation of an advanced oxidation process treatment system and a granular activated carbon treatment system at the Plant No. 6 facility for the removal of 1,4-dioxane from Well No. 6-2
- South Huntington Water District, Suffolk County – $3,435,075 WIIA grant for the installation of an advanced oxidation process treatment system for 1,4-dioxane removal and the installation of Filtrasorb F-300AR carbon for PFAS removal in existing granular activated carbon vessels.
- City of Troy, Rensselaer County – $35,657,000 short-term market-rate financing and $3,000,000 WIIA grant for the replacement of existing transmission mains with new mains from Church Street to the Melrose Pretreatment Facility (approximately 5,500 linear feet each), as well as the reinforced concrete pipe from the Melrose Pretreatment Facility to the Rock Tunnel at Gate House 2 (approximately 2,500 linear feet).
- Village of Wurtsboro, Sullivan County – $1,047,600 WIIA grant for the construction of approximately 1,100 linear feet of 8-inch ductile iron pipe water main on Sullivan Street to Kingston Avenue, replacement of 8 water service connections and the replacement of the 300,000 gallon above-ground water storage tank in the village.
Refinancing Completed Projects Will Achieve Long-Term Debt Service Savings
The Board approved long-term refinancing for six existing projects totaling $90.6 million. 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.
In addition to the financing provided to NYC, additional projects approved for long-term interest-free financing include the Albany Municipal Water Finance Authority in Albany County, the Village of Lake George in Warren County, the town of Pamelia in Jefferson County and two projects for the City of Schenectady in Schenectady County. Based on current market conditions, these long-term financings are projected to save ratepayers an estimated $103 million in interest payments and previously authorized grants over the life of the financings.
New York's Commitment to Water Quality and Current Funding Opportunities
New York State's nation-leading investment in clean water infrastructure totals $5 billion since 2017. Under the leadership of Governor Hochul, the 2023-24 Enacted Budget includes the $500 million in clean water funding. The Governor launched Community Assistance Teams this year to expand EFC's technical assistance program and help small, rural, and disadvantaged communities leverage this funding to address their clean water infrastructure needs. Any community that needs help with their water infrastructure needs is encouraged to contact EFC at efc.ny.gov/CAT.
The voter-approved $4.2 billion Clean Water, Clean Air and Green Jobs Environmental Bond Act is advancing historic levels of funding to update aging water infrastructure and protect water quality, strengthen communities' ability to withstand severe storms and flooding, reduce air pollution and lower climate-altering emissions, restore habitats, and preserve outdoor spaces and local farms. Disadvantaged Communities will receive at least 35 percent of the benefits of Bond Act funding, with a goal of 40 percent.
Share your ideas for how the Bond Act could help your community and environment. Complete the short survey at https://bit.ly/BondActSurvey to submit project ideas and other feedback. The survey deadline is Sept. 15.