Governor Hochul Highlights Over $428 Million to Make Local Water Infrastructure Projects Affordable Across New York State

LongIsland.com

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

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Governor Kathy Hochul today announced the Environmental Facilities Corporation Board of Directors approved over $428 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 and sewer infrastructure projects, including treatment processes to remove emerging contaminants from drinking water and improvements that will modernize aging systems.

“Properly functioning water systems are crucial to New Yorkers’ quality of life – from the water flowing from taps to the numerous lakes and streams that provide amazing recreational opportunities,” Governor Hochul said. “These grants and low-interest loans help protect public health and the environment, reduce pressure on communities to raise funds quickly for essential upgrades, and minimize the financial impact of these crucial projects on local ratepayers.”

EFC’s Board approved grants and financings to local governments from the Clean Water and Drinking Water State Revolving Funds – a mix of federal and state dollars dedicated to financing community water infrastructure projects. The State Revolving Funds provide financing at below-market rates, empowering communities to undertake critical sewer and wastewater projects at a much lower cost than traditional financing. Funding from the federal Bipartisan Infrastructure Law for water and sewer infrastructure is administered by EFC through the State Revolving Funds.

The Board additionally approved grants already announced pursuant to the state’s Water Infrastructure Improvement program. Leveraging federal funding with the state’s investments allows local communities to invest in system improvements that safeguard public health, protect the environment, bolster communities’ resiliency, and promote economic development.

Environmental Facilities Corporation President & CEO Maureen A. Coleman said, “The $428 million announced today is a significant investment in New York’s communities and environment. The State Revolving Funds and state water grants are proven programs that help communities meet their present water infrastructure needs and plan for long-term success.”

Board approval is a critical step in the funding process. It allows communities to close a project funding agreement and access these dollars for project implementation.

Funding was approved for projects in the following regions:

Central New York

  • Village of Homer - $4 million financing for the installation of a new 400,000-gallon drinking water storage tank, the decommissioning of two aged water storage tanks, and installation of approximately 1,850 linear feet of water main and a booster pump station to serve new users.
  • Village of Pulaski $12.3 million grant and financing package for the replacement of approximately 20,000 linear feet of aged drinking water main and associated appurtenances. The funding includes a grant from the Clean Water, Clean Air and Green Jobs Environmental Bond Act of 2022.

Finger Lakes

  • Livingston County Water and Sewer Authority - $8.75 million grant and interest-free financing package for the planning, design, and construction of pump station improvements around Conesus Lake. A portion of this funding is from the Bipartisan Infrastructure Law.
  • Village of Albion $10.2 million grant and financing package for several upgrades to the existing water treatment plant, including upgrading the sludge thickening system, sedimentation system, and filtration system.

Long Island

  • Village of Sands Point - $5 million grant for the construction of a granular activated carbon treatment system for the removal of PFOA and PFOS from Wells No. 3 and 4. This grant is from the Bipartisan Infrastructure Law.

Mid-Hudson

  • Village of Goshen $5.3 million grant and financing package for the replacement of existing filters to enhance water treatment; construction of a new pump station; and connection of the water treatment plant backwash waste discharge to the sanitary sewer system. A portion of this funding is from the Bipartisan Infrastructure Law.
  • Town of New Windsor $14.8 million grant for the construction of an expansion to the Caesars Lane wastewater treatment plant.
  • Town of Poughkeepsie - $5.3 million grant and financing package for the planning, design, and construction of sewer improvements within the Hudson Heritage Sewer District.
  • Rockland County

-$6.6 million financing for the construction of sanitary sewage pump station upgrades.

-$6.6 million financing for the construction of sludge thickener upgrades at the Sewer District No. 1 wastewater treatment plant.

-$7.1 million financing for the construction of influent screening improvements at the Sewer District No. 1 wastewater treatment plant.

-$6.81 million financing for the construction of new mechanical bar screens at the Cherry Lane, Pinebrook, and Saddle River pump stations.

Mohawk Valley

  • Village of Poland - $840,000 grant for the construction of a new chlorination/control building, raising the existing drinking water wells and replacing well pumps and pitless units, installation of a new electrical service, and improvements to the instrumentation, controls, and telemetry system.

North Country

  • Development Authority of the North Country $5 million grant for the replacement of 13,000 linear feet of existing drinking water transmission main and associated appurtenances on the Army Water Line from Booster Pump Station 1 to Route 11 along Patterson Road.

Western New York

  • Chautauqua County - $24.2 million grant and interest-free financing package for the planning, design, and construction of new collection sewers around Chautauqua Lake for the second phase of the West Side Extension project. A portion of this funding is from the Bipartisan Infrastructure Law.
  • Village of Depew $2.1 million grant and financing package for the planning, design, and construction of sanitary sewer improvements to reduce inflow and infiltration in the collection system.
  • Town of Pomfret $5 million grant for the formation of the North End Water District Phase 2 project to serve approximately 100 existing residential and commercial properties that currently rely on private wells. This drinking water project includes installation of 64,000 linear feet of water mains and a booster pump station.

Refinancing Completed Projects Will Achieve Long-Term Debt Service Savings

The Board also approved long-term financing totaling over $294 million. This action helps ensure continued, long-term affordability of existing projects across the state. 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 of up to 30 years, saving municipalities significant interest expenses they would have incurred if they had financed the projects on their own.

The Board approved long-term financing for projects in the following regions:

  • Capital Region: Albany Municipal Water Finance Authority, Town of Berlin, City of Cohoes, City of Troy, City of Watervliet
  • Central New York: City of Oswego
  • Finger Lakes: Village of Bergen, Town of Gorham
  • Mid-Hudson: Dutchess County Water and Wastewater Authority, City of Kingston, City of Middletown, Village of Millerton, Village of Suffern
  • Mohawk Valley: Village of Poland, Village of Schoharie, Village of Sharon Springs
  • North Country: Development Authority of the North Country, Town of Minerva, Village of Speculator
  • Southern Tier: Village of Cayuga Heights, Chemung County, Village of Horseheads, Village of Oxford, Village of Walton
  • Western New York: Village of Brocton, Village of Depew, Town of Ellicottville

Based on current market conditions, these long-term financings are projected to collectively save local ratepayers across the state an estimated $260 million in interest payments over the life of the financings.

Department of Environmental Conservation Interim Commissioner Sean Mahar said, “I applaud Governor Hochul’s sustained, generational investments in clean water and critical infrastructure projects for municipalities statewide. The $428 million in grants and financing announced today will bring more projects closer to completion and help protect the health of the public, as well as New York’s lakes, rivers, and other natural resources. Thanks to EFC’s ongoing assistance to rural, smaller, and disadvantaged communities, these projects are advancing to benefit New Yorkers.”

State Health Commissioner Dr. James McDonald said, “Governor Hochul is delivering on her commitment to make safe drinking water a public health priority. By providing financial assistance to municipalities for water infrastructure upgrades, we are improving health equity and ensuring New Yorkers have access clean and safe drinking water which is foundational to good health.”

Secretary of State Walter T. Mosley said, “The Governor’s nation-leading investment in clean water infrastructure is helping create stronger and more resilient communities throughout the state. The $428 million investment will get shovels in the ground to support sustainable economic growth, a higher quality of life and improved public health for present and future generations of New Yorkers.”

Majority Leader Chuck Schumer said, “Everyone deserves access to clean water and modern water systems. Now, thanks to my Bipartisan Infrastructure & Jobs Law, a whopping $28 million is flowing to communities from Western NY to Long Island to upgrade water infrastructure. These dollars will help give municipalities statewide the support they need to modernize critical water systems. It also means jobs, jobs, jobs, uplifting our communities and boosting the economy with long overdue projects to make New York's waters healthier and cleaner. I am proud to deliver this major funding and am grateful for Governor Hochul’s partnership in the fight to turn the tide on our state’s aging water infrastructure, create jobs for New Yorkers, and keep our communities safe and healthy.”

Senator Kirsten Gillibrand said, “Access to clean water is vital for public health and economic development in communities across our state. I applaud the governor for these strategic investments in high-quality water infrastructure across the state, made possible in part by the Bipartisan Infrastructure Law that I fought to pass. I will continue to fight for federal resources to support New York’s infrastructure.”

Representative Tom Suozzi said, “The reason I fought so hard for the bipartisan infrastructure bill was to secure essential funding to protect our drinking water without imposing additional cost on our residents. This $5 million grant for the Village of Sands Point is a crucial step toward eliminating harmful forever chemicals.I will always fight to bring even more resources to water districts across Long Island and Queens.”

Representative Pat Ryan said, “Clean water is vital for our families’ health and for our environment to thrive. I’m proud that these projects, in part powered by the historic Bipartisan Infrastructure Law, will help ensure that families in Goshen, Poughkeepsie, and New Windsor have clean and safe water, create quality jobs, and build resilient infrastructure that will serve our communities for generations to come. I’m looking forward to continuing to work with partners at every level of government to bring home landmark investments and deliver the clean air, water, and soil that every Hudson Valley family deserves.”

Representative Tim Kennedy said, “Our community can’t thrive without clean water. This $2.1 million in funding will make a real difference for residents in the Village of Depew by upgrading outdated sewage infrastructure, mitigating overflows that threaten public health and the environment. Thanks to investment in our water resources with support from the Bipartisan Infrastructure Law, Western New York will be a better place to call home for people, families, businesses, and our environment alike.”

EPA Regional Administrator Lisa F. Garcia said, “For over 30 years, EPA has supported local water infrastructure projects in New York through our State Revolving Fund, and we continue to do so with great success thanks to a historic boost from the Bipartisan Infrastructure Law. I applaud the State of New York for supporting communities in their efforts to address challenges like emerging contaminants and aging water infrastructure. These are efforts that improve people’s health and create economic opportunity.”

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 FY25 Enacted Budget announced by Governor Hochul, New York has invested a total of $5.5 billion in water infrastructure between 2017 and this year.

Governor Hochul’s State of the State initiatives are ensuring ongoing coordination with local governments and helping communities to leverage these investments. Governor Hochul announced $435 million in grants to 102 projects in November, featuring increased awards for wastewater projects for smaller, 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. Any community needing assistance with water infrastructure projects is encouraged to contact EFC.