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Governor Hochul Announces $300 Million Investment to Make Water Infrastructure Projects Affordable Across New York State

Government and Politics

June 20, 2024

From: New York Governor Kathy Hochul
Approval of Financial Assistance Authorizes Municipal Access to the Capital Needed for Projects that Reduce Risks to Public Health and Improve Water Quality

Funding Empowers Communities to Affordably Invest in Lifesaving Infrastructure Improvements and Ensure New Yorkers Have Access to Clean, Safe Water

Governor Kathy Hochul on June 20th, announced the Environmental Facilities Corporation Board of Directors approved over $300 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 essential water and sewer infrastructure projects, including treatment processes to remove emerging contaminants from drinking water.

“Access to clean, safe water is crucial to building vibrant and healthy communities throughout New York,” Governor Hochul said. “New York State is providing major financial assistance to ensure our communities can invest in their water infrastructure to protect our vital natural resources, while reducing costs and making these projects affordable for the ratepayers who rely on them for safe drinking water."

The funding approved on June 20th, for 20 projects includes significant investments from the federal Bipartisan Infrastructure Law (BIL), the State Revolving Funds (SRFs), and the State’s Water Infrastructure Improvement (WIIA) grant program. Notably, the City of Auburn in Cayuga County was approved to receive over $91 million from BIL and WIIA for critical improvements at the city's wastewater treatment plant that was constructed in 1935. The project will upgrade systems that are past their useful life, improve water quality in the Great Lakes watershed and advance environmental justice in a disadvantaged community.

Environmental Facilities Corporation President & CEO Maureen A. Coleman said, “Under the leadership of Governor Hochul, New York State is empowering communities to invest in lifesaving infrastructure improvements and ensure all New Yorkers have access to clean, safe water. EFC strives to provide creative solutions for communities and ensure vital projects are affordable for local ratepayers.”

New York State Department of Environmental Conservation Interim Commissioner Sean Mahar said, “Governor Hochul continues to make generational investments in improving New York State’s water infrastructure. On June 20th’s announcement of the availability of more than $300 million for water infrastructure projects provides critical funding for municipalities making upgrades to address emerging contaminants and other threats to clean water. New York State continues to prioritize clean drinking water and DEC’s partnership with EFC on this and other funding opportunities will advance effective infrastructure improvements that bring long-lasting benefits to New Yorkers.”

New York State Health Commissioner Dr. James McDonald said, “This is yet another example of Governor Hochul’s commitment to clean waterways and drinking water for all New Yorkers. We are pleased to see this financial assistance provided to municipalities so they may begin construction on projects that will protect the water for their residents and protect public health.”

Secretary of State Walter T. Mosley said, “Under Governor Hochul’s leadership and continued financial support, communities are building stronger, more resilient water infrastructure that will benefit both present and future generations of New Yorkers. This significant investment will help communities across the State fund much-needed projects that not only improve water quality for their residents, but advance environmental justice, support economic development and combat climate change in historically disadvantaged communities.”

Senate Majority Leader Chuck Schumer said, “From Cayuga to Sullivan County, the funds are flowing from our Bipartisan Infrastructure Investment & Jobs Law to ensure safe, clean drinking water for families and communities across New York. This major federal investment will upgrade water and sewer systems in every corner the Empire State and help ensure clean drinking water for our communities. 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 critical federal funding with Governor Hochul to turn the tide on New York’s aging water infrastructure and keep our water systems safe and clean for all New Yorkers.”

State Senator Kirsten Gillibrand said, “Access to safe, clean water is an essential right that all New Yorkers deserve. This $300 million investment will fund critical water infrastructure projects to improve water quality and help bring clean, safe water to households across New York State. I’m proud to have fought to pass the Bipartisan Infrastructure Law that is funding many of these projects, and I will continue to fight for the resources needed to enhance public health and provide New Yorkers with reliable access to safe water.”

EPA Regional Administrator Lisa F. Garcia said, “It’s great to see New York State investing in critical water infrastructure projects throughout the state, thanks to funding from the historic Bipartisan Infrastructure Law and EPA’s State Revolving Funds. These projects deliver clean water and create jobs for a greener future. These investments will benefit New York communities, including historically underserved communities, for generations to come.”

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:

  • City of Auburn in Cayuga County - $25,000,000 grant, $41,491,103 interest-free financing, and $16,491,102 market-rate financing from BIL; and a $9,000,000 WIIA grant for the planning, design, and construction of biosolid and wastewater process improvements at the city's wastewater treatment plant to reduce combined sewer overflow events in the Great Lakes watershed.
  • Village of Broadalbin in Fulton County - $220,625 interest-free and $220,625 market-rate CWSRF financing for the planning, design, and construction of wastewater treatment plant effluent disinfection improve water quality in the Kennyetto Creek.
  • Village of Canisteo in Steuben County - $3,302,250 interest-free and $1,000,000 market-rate CWSRF financing; and a $1,097,750 WIIA grant for the planning, design, and construction of wastewater treatment plant improvements to improve water quality in the Canisteo River.
  • Village of Gouverneur in St. Lawrence County - $292,250 BIL grant for the planning, design, and construction of the second phase of collection system improvements on Dorwin Street to improve water quality in the Oswegatchie River.
  • City of Little Falls in Herkimer County - $3,551,000 grant and $2,069,000 interest-free financing from BIL; $1,000,000 market-rate CWSRF financing; and $1,890,000 WIIA grant for the planning, design, and construction of wastewater treatment plant upgrades to protect the water quality of the Mohawk River.
  • Village of Painted Post in Steuben County - $1,436,877 interest-free and $455,206 market-rate CWSRF financing; and a $207,917 WIIA grant for the planning, design, and construction of improvements to the village's wastewater treatment plant protect water quality in the Chemung River.
  • Village of Port Leyden in Lewis County - $356,500 grant and $201,380 interest-free financing from BIL; $176,870 interest-free financing and $356,500 grant from the CWSRF; and a $178,250 WIIA grant for the planning, design and construction of wastewater collection and treatment system improvements to improve the water quality of the Black River.
  • Town of Thompson in Sullivan County - $13,012,000 grant and $14,358,967 interest-free financing from BIL; $1,000,000 market-rate CWSRF financing; and a $6,383,930 WIIA grant for the planning, design, and construction of upgrades at the Kiamesha Lake Wastewater Treatment Plant to protect water quality in Kiamesha Creek, a trout stream in the Delaware River Basin.
  • Village of Vernon in Oneida County - $10,420,000 interest-free CWSRF financing and a $2,406,000 WIIA grant for the planning, design, and construction of wastewater treatment plant upgrades to improve the water quality of Sconondoa Creek.
  • Westchester County– Funding for four projects:
    • $13,503,000 interest-free and $13,503,000 market-rate CWSRF financing; and a $2,029,400 WIIA grant for the planning, design, and construction of engine and blower replacements at the Yonkers Joint Wastewater Treatment Plant to protect water quality in the Hudson River.
      • $10,373,895 interest-free and $10,373,894 market-rate CWSRF financing; and $6,203,611 WIIA grant for phase IV heating, ventilating and air conditioning equipment replacement, and odor control improvements at the Yonkers Joint Wastewater Treatment Plant to protect water quality in the Hudson River.
        • $3,666,875 interest-free and $3,666,875 market-rate CWSRF financing for repairs and upgrades to the Yonkers Joint Wastewater Treatment Plant secondary system to protect water quality in the Hudson River.
          • $3,759,165 interest-free and $3,759,164 market-rate CWSRF financing; and a $2,970,600 WIIA grant for the planning, design, and construction of sewer system repairs in the Peekskill, Ossining, Yonkers Joint, Blind Brook, Mamaroneck, and New Rochelle Sanitary Sewer Districts to protect water quality in the Hudson River and Long Island Sound.

Drinking Water Projects:

  • City of Batavia in Genesee County - $2,207,580 WIIA grant for improvements to the city's wastewater treatment plant to improve operation, maintenance, and water quality.
  • Village of Bath in Steuben County - $6,000,000 market-rate DWSRF financing and a $3,000,000 WIIA grant for the installation of approximately 18,000 feet of new and replacement water main and associated appurtenances along State Routes 54 and 415 that will enable the village to provide an adequate supply of water to residents and improve the resilience and security of the existing system.
  • Village of Garden City in Nassau County - $3,000,000 WIIA grant for the construction of a new advanced oxidation process treatment system for the removal of 1,4-dioxane at Well No. 9 that will improve water quality and supply.
  • City of Gloversville in Fulton County - $750,334 interest-free and $1,500,666 market-rate DWSRF financing; and a $3,000,000 WIIA grant for the construction of a new booster pump station at the South Eagle Street Tank, installation of new isolation valves and pressure relief valves along the transmission main, and replacement of treatment systems at the water treatment plant to modernize systems and improve water quality.
  • Jericho Water District in Nassau County - $6,862,200 WIIA grant for the installation of an advanced oxidation process treatment system for the removal of 1,4-dioxane and a granular activated carbon treatment system to remove PFOA and improve water quality.
  • Town of Tusten in Sullivan County - $4,500,000 market-rate DWSRF financing and a $3,000,000 WIIA grant for the replacement of a 200,000-gallon water storage tank with a 250,000-gallon water storage tank, improvements to Well Facilities Nos. 1, 2 and 3, replacement of water mains and appurtenances, and installation of a booster pump station and automatic flushing stations to address the town’s aging water system and allow the town to continue providing its residents with reliable high-quality drinking water.
  • Water Authority of Western Nassau County - $5,000,000 WIIA grant for the installation of a granular activated carbon treatment system at Station No. 15 to remove PFAS and improve water quality.

Refinancing Completed Projects Will Achieve Long-Term Debt Service Savings
The Board took additional action to help ensure continued, long-term affordability of existing projects. The Board approved long-term, interest-free financing totaling $32 million for projects located in the Village of Clyde, Village of Endicott, Village of Gouverneur, Town of Jasper, Village of Malone, Town of Orleans, Village of Philadelphia, Town of Rosendale, and Village of Sylvan Beach.

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 $41 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 $325 million in WIIA grant opportunities made available in January. Additional grant funding is available now through DEC’s Water Quality Improvement Project program and EFC’s new Green Resiliency Grant program. With $500 million allocated for clean water infrastructure in the 2024-2025 enacted State 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 smaller 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 that needs help with its water infrastructure is encouraged to contact EFC at https://efc.ny.gov/CAT.

The funding, in addition to other substantial water quality investments, includes 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, including $309 million made available to disadvantaged communities. Disadvantaged Communities will receive at least 35 percent of the benefits of Bond Act funding, with a goal of 40 percent.