Governor Kathy Hochul today announced the Environmental Facilities Corporation Board of Directors approved over $265 million in financial assistance for water infrastructure improvement projects across New York State. The Board's approval authorizes municipal access to low-cost financing and previously announced grants to get shovels in the ground for critical water infrastructure projects. This financial assistance is advancing the clean water goals in Governor Hochul’s State of the State by helping communities modernize aging systems, safeguard drinking water supplies, and protect our State’s abundant natural resources.

"We are funding essential projects to upgrade our water infrastructure and protect the health of our communities,” Governor Hochul said. “Today we’re putting another $265 million out on the streets and building on the incredible progress we’ve made toward making sure every New Yorker has access to the clean, safe water they deserve.” 

The funding approved today includes significant investments from the federal Bipartisan Infrastructure Law (BIL) and the State’s Water Infrastructure Improvement (WIIA) grant program. Chemung County was approved to receive nearly $200 million in BIL grant and financing for the wastewater treatment plant consolidation project that’s underway, as well as a $25 million WIIA grant. The project involves modernizing and expanding the existing Milton Street Wastewater Treatment Plant that’s 35 years old, taking the 50-year-old Lake Street Wastewater Treatment Plant out of service, and consolidating the two facilities. The county’s sewer districts serve over 60,000 people and this crucial project is benefitting disadvantaged communities, bringing the county’s operations into compliance with State and federal regulations, and improving water quality in the Chemung River and the Chesapeake Bay Watershed.

The Board's approvals include financings through the Clean Water State Revolving Fund (CWSRF) and Drinking Water State Revolving Fund (DWSRF), and grants already announced pursuant to the WIIA program. BIL funding for water and sewer infrastructure is administered by EFC through the State Revolving Funds.

Clean Water Projects:

• Chemung County (Southern Tier) - $75,625,151 short-term interest-free financing, $75,625,151 short-term market-rate financing, $22,019,698 long-term interest-free financing, $25,000,000 grant from BIL funds, and a $25,000,000 WIIA grant for the planning, design, and construction for the consolidation of two county wastewater treatment plants.
• Village of Franklinville, Cattaraugus County (Western NY) - $1,235,333 WIIA grant and a $1,235,333 CWSRF grant for the planning, design, and construction of wastewater treatment facility and collection system improvements.
• City of Geneva, Ontario County (Finger Lakes) - $6,927,712 short-term interest-free financing and a $2,309,238 WIIA grant for the planning, design, and construction of upgrades at the city's wastewater treatment plant.

Drinking Water Projects:

• Village of Garden City, Nassau County (Long Island) - $3,120,000 WIIA grant for the construction of a new advanced oxidation process system to treat 1,4-dioxane in public water supply Well No. 7.
• Village of Rhinebeck, Dutchess County (Mid-Hudson) - $3,456,000 short-term market-rate financing and a $3,000,000 WIIA grant for the installation of a disinfection treatment system, reinstatement of the upflow clarifier and filtration units and the installation of two clarification units, installation of a mixing system in the water storage tank, and other water treatment plant improvements.
• Town of Tonawanda, Erie County (Western NY) - $3,000,000 WIIA grant for upgrades to the water treatment plan filtration system, including new filter media and underdrains, air/water backwash system, wash water pump, and filtration automation and control system upgrades.
• Westbury Water District, Nassau County (Long Island) - $3,000,000 WIIA grant for the installation of an advanced oxidation process system to treat 1,4 dioxane at Well 16.

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 $15 million for projects located in the Village of Dryden in Tompkins County (Central NY), Village of Franklinville in Cattaraugus County (Western NY), the City of Glens Falls in Warren County (Capital Region), and the Town of Sandy Creek in Oswego County (Central NY).

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 $19 million in interest payments over the life of the financings. 

Environmental Facilities Corporation President & CEO Maureen A. Coleman said, “EFC is delivering on Governor Hochul’s goal of ensuring that cost is not a barrier for communities that need to undertake vital drinking water and sewer projects. New York’s nation-leading water infrastructure investment programs, together with funding from the federal Bipartisan Infrastructure Law are providing tangible solutions to help modernize our crucial infrastructure and ensure local neighborhoods are healthy, resilient, and thriving.”

Department of Environmental Conservation Commissioner and EFC Board Chair Basil Seggos said, “DEC commends Governor Hochul for continuing to prioritize water quality with this latest $265 million in grants and financing to support water infrastructure improvement projects in municipalities across New York. Clean water projects included in this round of awardees focus on essential system upgrades to treat and remove emerging contaminants, improve water quality, and address threats to public health and the environment.”

Department of Health Commissioner Dr. James McDonald said, “Access to safe, clean water is an essential component of our mission to protect, improve and promote the health, productivity and wellbeing of all New Yorkers. I thank Governor Hochul for the State’s substantial and ongoing commitment to ensuring cost does not hinder communities around the state from making the necessary upgrades to safeguard public water systems.”

Secretary of State Robert J. Rodriguez said, “Governor Hochul continues to prioritize clean water infrastructure funding for our communities around the state. This investment will get shovels in the ground to accelerate the creation of more environmentally sustainable and resilient cities and towns for present and future generations. The EFC approval of $265 million is another important step in Governor Hochul’s commitment to helping communities modernize aging systems, safeguard drinking water supplies, and protect our State’s abundant natural resources.”

EPA Regional Administrator Lisa F. Garcia said, “President Biden’s Investing in America agenda continues to deliver for New York with this latest infusion of Bipartisan Infrastructure Law funds. I applaud the State of New York for its commitment to protecting our precious water resources, ensuring the highest water quality, and for supporting key water infrastructure projects that protect all of our communities, including historically underserved communities.”

New York's Commitment to Water Quality

New York State continues to increase its nation-leading investments in water infrastructure, including $325 million in grant opportunities made available in January. With Governor Hochul’s Executive Budget’s proposed $500 million over two years, New York will have invested a total of $5.5 billion in water infrastructure since 2017. This funding announced today complements Governor Hochul’s State of the State initiative to increase water infrastructure grants for small rural communities from 25 to 50 percent of net eligible project costs to help support smaller communities. To leverage these investments and ensure ongoing coordination with local governments, the Governor expanded EFC’s Community Assistance Teams to help small, rural, and disadvantaged communities leverage this funding and address their clean water infrastructure needs. Any community that needs help with their water infrastructure needs is encouraged to contact EFC at https://www.efc.ny.gov/CAT. 

The funding is in addition to other substantial water quality investments, including the voter-approved $4.2 billion Clean Water, Clean Air and Green Jobs Environmental Bond Act of 2022 which 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. The first round of funding under the Environmental Bond Act was awarded through the WIIA/IMG programs in December, when Governor Hochul announced $479 million in grants to 156 projects across New York State. Disadvantaged Communities will receive at least 35 percent of the benefits of Bond Act funding, with a goal of 40 percent.