DEC Releases Environmental Bond Act Draft Guidelines for Infrastructure Projects that Protect Drinking Water from Harmful Algal Blooms

The New York State Department of Environmental Conservation (DEC) today released for public review and comment draft eligibility guidelines to implement funding under the Clean Water, Clean Air and Green Jobs Environmental Bond Act of 2022 (Bond Act). The Water Quality Improvement Project (WQIP) grant program, and others where applicable, will make Bond Act funding available on a competitive basis to eligible entities to implement projects that reduce the adverse impacts of harmful algal blooms (HABs) on water quality and associated uses.

"Investing in projects designed to decrease the negative environmental impacts of harmful algal blooms, or 'HABs,' is essential to DEC's sustained efforts to protect water quality and drinking water supplies for all New Yorkers," DEC Interim Commissioner Sean Mahar said. "The draft guidelines released today for public comment bolster the State's sustained commitment to invest in critical environmental projects and water infrastructure improvements under the Clean Water, Clean Air and Green Jobs Environmental Bond Act."

Funds for eligible projects may be used in conjunction with other available sources, such as federal funds and grants, State funding that will be repaid (i.e., State Revolving Fund loans), and local government or not-for-profit contributions. Funds may be used across other bondable eligible project types within the WQIP program, which specifically target nutrient reductions to improve water quality and reduce the frequency of HABs.

Municipalities including Indian Nations, soil and water conservation districts, not-for-profit corporations, and State agencies will be eligible for funding. Priority will be given to projects that directly protect drinking water supplies and water quality in respective watersheds, as defined in various U.S. Environmental Protection Agency (EPA)- and DEC-approved clean water plans including Total Maximum Daily Loads and Nine Element Watershed plans, as well as projects that support actions identified in New York State HAB Action Plans, DEC watershed program action agendas, and DEC-accepted Drinking Water Source Protection plans.

Examples of eligible projects may include but are not limited to:

• Construction and implementation of projects that directly improve water quality of drinking water supply intakes (extension/repositioning/addition of intakes), improved filtration or technology upgrade, improve internal lake circulation, reduce water stagnation, and act to promote sediment and nutrient fallout, among others;
• Construction and implementation of runoff reduction Best Management Projects on agricultural and non-agricultural lands that reduce stormwater and nutrient runoff and soil erosion;
• Replacement and repair of failing/failed septic systems to maximize their functional capacity and minimize their nutrient contributions;
• Creation of riparian buffers and wetlands or enhancement/restoration of existing riparian buffers and wetlands as nutrient and sediment reduction strategies; and
• Acquisition and conservation of lands to protect and maintain existing vegetated buffers along waterways and wetlands.

DEC will evaluate projects based on overall responsiveness and factors including project impact, project readiness, reasonableness of cost, climate and flood resiliency, environmental benefit, and other criteria. The full eligibility guidelines are available in the Environmental Notice Bulletin.

Public comments on the draft guidelines will be accepted until Friday, Jan. 10, 2025, at 5 p.m., and can be submitted in writing, by mail to: Stephanie June, NYSDEC, Division of Water, 625 Broadway, Albany, NY 12233-3502 or e-mail: [email protected].

Disadvantaged Communities  
The Bond Act requires that disadvantaged communities shall receive no less than 35 percent, with the goal of 40 percent, of the benefit of total Bond Act funds ($4.2 billion). Disadvantaged communities are those identified by the Climate Justice Working Group, pursuant to the Climate Act. Consistent with this Bond Act requirement, DEC will aim to prioritize 40 percent of grant awards to benefit disadvantaged communities.  

On Nov. 8, 2022, New York voters overwhelmingly approved the $4.2 billion Environmental Bond Act. State agencies, local governments, and partners will be able to access funding to protect water quality, help communities adapt to climate change, improve resiliency, and create green jobs. Bond Act funding will support new and expanded projects across the state to safeguard drinking water sources, reduce pollution, and protect communities and natural resources from climate change. Sign up for progress updates and find Bond Act-related information.