Governor Hochul Highlights $665 Million to Make Local Water Infrastructure Projects Affordable Across New York State

Governor Kathy Hochul today announced the Environmental Facilities Corporation Board of Directors approved $665 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 vital environmental infrastructure projects, including treatment processes to remove emerging contaminants from drinking water.

"No one in New York should ever fear that they don't have access to clean water," Governor Hochul said. "With this funding, we are safeguarding the health and well-being of New Yorkers, providing critical resources to local economies, creating jobs and protecting our natural resources."

Today's investment includes more than $450 million in low-cost financing for New York City, fully funding the city's request for financial assistance for 13 sewer projects. The action reinforces the State's key role in advancing the City's clean water goals and minimizing the financial impact of these crucial projects on local ratepayers. EFC is committed to ensuring the City's water infrastructure improvements are affordable. In addition to the funding approved today, EFC executed a $717 million bond sale earlier this year to fund ongoing and completed projects, saving city ratepayers $183 million.

Environmental Facilities Corporation President & CEO Maureen A. Coleman said, "Since day one, Governor Hochul has insisted upon, and EFC has taken actions to make sure New Yorkers can afford safe drinking water and reliable clean water systems. Today's $665 million investment in dozens of environmental infrastructure projects is a continuation of that commitment. From the North Country to New York City and beyond, EFC's financial assistance will get shovels in the ground for critical projects that safeguard public health and improve water quality while protecting the pockets of New Yorkers."

Department of Environmental Conservation Interim Commissioner Sean Mahar said, "Thanks to the continued leadership of Governor Hochul and her historic investments in clean water, today's funding will directly assist municipalities with upgrading and improving water infrastructure across the state and a testament to the state and local partnerships necessary to safeguard our water resources. In particular, the more than $454 million to improve New York City's wastewater overflow operations in the Gowanus area of Brooklyn will directly address water quality impairments in the area and augment the city, State, and federal actions to ensure the protection of public health and the environment. DEC commends our colleagues at EFC for advancing this critical funding which provides communities with affordable options to protect clean water for all New Yorkers."

State Health Commissioner Dr. James McDonald said, "Governor Hochul continues to follow through on her commitment to ensure New Yorkers have access to clean drinking water. The financial support in this latest announcement will greatly alleviate the financial burden on municipalities looking to make critical upgrades to their water systems including the removal of harmful contaminants. Clean drinking water is the cornerstone of good health and New York State will continue to work with communities to ensure it is protected today and into the future."

Secretary of State Walter T. Mosley said, "New York State continues to make historic investments in clean drinking water infrastructure to create environmentally, economically and socially sustainable communities. I applaud Governor Hochul's commitment of $665 million in grants and low-cost finance to improve critical water infrastructure and create stronger and more resilient communities for generations to come."

EPA Regional Administrator Lisa F. Garcia said, "The Biden-Harris Administration's Bipartisan Infrastructure Law continues to deliver a significant boost for critical water infrastructure projects in New York and across the country. Record-level state and federal investments will ensure safer drinking water quality and deliver state-of-the-art wastewater treatment systems to protect the health of our communities and our precious ecosystems."

Senate Majority Leader Charles Schumer said, "From Albany to Ulster County, funds are flowing from our Bipartisan Infrastructure & Jobs Law to ensure safe, clean drinking water for families, and making critical upgrades to keep the NY's beautiful waterways free of sewage overflow. This major federal investment will upgrade drinking water and sewer systems in every corner of the Empire State, all while producing a steady stream of good-paying jobs. For too long, cities and rural communities across NY have dealt with aging water infrastructure, but now, thanks to the historic federal funding I secured, we are finally turning the tide. I am proud to deliver this whopping $77 million in BIL funding with Governor Hochul to keep our water systems safe and clean for all New Yorkers."

Representative Paul Tonko said, "I've often said every life and every job depends on water; that basic fact is why I've worked for years in Congress to scale up federal investments in clean water initiatives. I was deeply proud to advance the Bipartisan Infrastructure Law to address America's crumpling water systems, and I'm thrilled to see these critical dollars continue flowing to our communities. I will continue working to ensure all New Yorkers have access to safe, clean water."

Representative Adriano Espaillat said, "Clean water is vital to all communities and today's announcement ensures residents in my district have access to safe drinking water, free of contaminants, that they can rely on. Thank you Governor Hochul and members of the Environmental Facilities Corporation Board of Directors for investing this significant funding and vital resources to improve clean water for all New Yorkers, regardless of their income."

Representative Pat Ryan said, "Families across the Hudson Valley should be certain the water coming out of the faucet is safe to drink. I'm proud these projects, fueled by investments from the historic Bipartisan Infrastructure Law, will help deliver safe drinking water, create quality union jobs, and build climate resilient infrastructure that protects our communities for generations to come. I'll keep fighting to bring home federal investments to ensure all Hudson Valley families have access to clean water."

Representative Dan Goldman said, "Getting contaminants out of our drinking water is not a problem that we can just keep pushing back - it requires immediate action. I applaud Governor Kathy Hochul for her efforts to expedite this process, providing municipalities with the funding they have sorely-needed to clean their waterways and water supplies - including through the Gowanus Canal combined sewer overflow abatement project. Together, we're ensuring that our communities' health and safety always comes first."

The board approved grants and financing to local governments from the Clean Water and Drinking Water State Revolving Funds (CWSRF and DWSRF), grants already announced pursuant to the Water Infrastructure Improvement (WIIA) program, and funding from the federal Bipartisan Infrastructure Law (BIL). Leveraging the State's investments with BIL funding will continue to empower local communities to make critical system improvements to safeguard public health, protect the environment, bolster communities' climate readiness, and promote economic development. BIL funding for water and sewer infrastructure is administered by EFC through the State Revolving Funds. Under Congress, BIL funding is targeted to disadvantaged communities.

Clean Water Projects:

• Albany Municipal Water Finance Authority - $1,680,000 grant and $1,680,000 interest-free financing from BIL for the planning, design, and construction of stormwater improvements.
• City of Amsterdam - $8,758,500 grant and $7,041,500 interest-free financing from BIL, and a $4,300,000 WIIA grant for the design and construction of wastewater treatment plant improvements.
• Village of Holley - $2,061,338 interest-free and $783,016 market-rate financing from the CWSRF, and a $405,646 WIIA grant for the planning, design, and construction of wastewater treatment plant upgrades and disinfection improvements.
• City of Kingston - $4,080,000 BIL grant for the planning, design, and construction of wastewater treatment plant and outfall upgrades.
• New York City Municipal Water Finance Authority - $454,275,734 financing from the CWSRF for the planning, design, and construction of projects associated with the Wards Island, Bowery Bay, Jamaica, Coney Island, Red Hook, and Owls Head water resource recovery facilities; the Gowanus Canal combined sewer overflow abatement project; and various pumping stations.
• Oneida County - $10,538,500 grant, $7,701,000 interest-free and $817,750 market rate financing from BIL; $817,750 interest-free financing from the CWSRF, and a $6,625,000 WIIA grant for the planning, design, and construction of a collection system rehabilitation project.
• Town of Poughkeepsie - $3,303,958 interest-free and $7,732,138 market-rate financing from the CWSRF, and a $691,904 WIIA grant for the planning, design, and construction associated with the relocation of a pump station.
• Village of Remsen - $152,500 grant and $278,500 interest-free financing from BIL, and $256,892 market-rate financing from the CWSRF for the planning, design, and construction of a wastewater treatment disinfection facility.
• Town of Savannah - $151,232 grant and $425,632 interest-free financing from BIL, $149,984 interest-free and $597,536 market-rate financing from the CWSRF, and a $75,616 WIIA grant for the planning, design, and construction of a disinfection system at the wastewater treatment plant.
• Village of Sherburne - $8,887,500 grant and $9,862,500 interest-free financing from BIL, $10,000,000 market-rate financing from the CWSRF, and a $8,729,104 WIIA grant for the planning, design and construction of wastewater treatment plant upgrades.
• Village of Tivoli - $6,696,575 grant and $8,971,191 interest-free financing from BIL for the planning, design, and construction of improvements to the wastewater collection and treatment system.

Drinking Water Projects:

• Town of Beekmantown - $838,166 market-rate financing from the DWSRF and a $3,000,000 WIIA grant to identify locations for new wells, development of two to three new groundwater supply wells, construction of a water treatment plant equipped with chemical disinfection, and transmission mains to connect the wells to the water treatment plant.
• Carle Place Water District - $4,589,400 WIIA grant for the installation of two granular activated carbon (GAC) absorption treatment systems and associated appurtenances at Wells 3 and 4 to treat perfluorooctanoic acid (PFOA) and perfluorooctane sulfonic acid (PFOS) contamination.
• Town of Elizabethtown - $1,815,000 grant and $1,901,000 interest-free financing from the DWSRF for the installation of two new production wells, construction of a water treatment plant equipped with chemical disinfection for the new wells, rehabilitation of an existing water treatment plant utilizing chemical disinfection for the existing wells, and miscellaneous water system improvements including the installation of meter vaults, transmission main from the proposed wells to the new treatment plant, and related site piping.
• Village of Endicott - Financial assistance for two projects:
  • $4,491,285 interest-free and $8,982,568 market-rate financing from the DWSRF, and a $5,000,000 WIIA grant for additional water treatment to remove iron, manganese and 1,4-dioxane contamination.
  • $2,924,087 interest-free financing from the DWSRF and two WIIA grants totaling $4,386,131 for the development of a new water source to replace an existing contaminated water source.
• Village of Frankfort - $3,385,000 interest-free financing from the DWSRF and a $3,000,000 WIIA grant for various upgrades to the water distribution system and well site.
• Village of Hamburg - $5,000,000 WIIA grant for the installation of a new 1.25-million-gallon water storage tank, new transmission mains of approximately 6,000 linear feet, and a new pump station.
• Village of Mineola - $5,000,000 WIIA grant for the installation of a new GAC filtration system to remove PFOA and PFOS at Well No. 1.
• Village of Odessa - $708,392 BIL grant and a $2,996,295 WIIA grant for a two-phase project. Phase I includes the installation of approximately 20,000 feet of replacement 6, 8, 10 and 12-inch C-900 PVC water main and associated appurtenances. Phase II includes the development of a new water treatment plant for filtration of existing sources, the replacement of well pumps, and the installation of all associated treatment equipment and controls.
• Roslyn Water District - $2,984,700 WIIA grant for the installation of a GAC treatment system at Plant No. 5 to remove PFAS.
• Suffolk County Water Authority - $1,850,000 BIL grant for the installation of 21,000 linear feet of water main in the Hamlet of Calverton.

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 more than $24 million for projects undertaken by the City of Kingston, Town of Rockland, and Villages of Copenhagen, Hammondsport, Ilion, and South Glen Falls.

Short-term financing provides capital for design and construction of projects. Once project construction is completed, the short-term financing is typically refinanced with long-term financing for up to 30 years, saving municipalities significant interest expenses versus financing on their own. This is in addition to the benefit of EFC-administered grants. Based on current market conditions, these long-term financings are projected to save local ratepayers an estimated $38 million 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 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 FY24 Enacted 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 small, 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 that needs help with its water infrastructure is encouraged to contact EFC.

Contact the Governor's Office