Over $120M for Local Water Infrastructure Projects

Governor Kathy Hochul today announced that the Environmental Facilities Corporation Board of Directors has approved over $120 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.

“Improving our water infrastructure is essential for building safe and healthy communities throughout New York,” Governor Hochul said. “This financial assistance makes all the difference in being able to provide safe drinking water to New Yorkers, protect our natural resources and ensure the projects are successful and affordable.”

The funding approved today includes significant investments from the federal Bipartisan Infrastructure Law (BIL) and the state’s Water Infrastructure Improvement (WIIA) grant program. The Village of Coxsackie in Greene County, Dutchess County Water and Wastewater Authority, Franklin Square Water District in Nassau County, and Village of Gowanda in Cattaraugus County will receive funding from both BIL and WIIA for projects that will safeguard drinking water and significantly improve water quality. BIL funding was also awarded to the Town of Yorkshire in Cattaraugus County.

Environmental Facilities Corporation President & CEO Maureen A. Coleman said, “Under the leadership of Governor Hochul, New York State continues to deploy funding from the federal Bipartisan Infrastructure Law faster than any other state in the nation. The coupling of federal grants with state grants is making a difference between a community in dire need of new water infrastructure and that community constructing and completing new infrastructure. Communities are encouraged to apply for the latest round of State water grants before the June 14 deadline.”

New York State Department of Environmental Conservation Interim Commissioner Sean Mahar said, “Investments in water infrastructure are essential to economic development in communities across the state and the more than $120 million announced today will provide local municipalities access to the tools they need to plan, construct, and implement essential improvements to clean water and drinking water infrastructure. Governor Hochul’s investments and EFC’s ongoing assistance to smaller and disadvantaged communities in applying for funding is helping safeguard public health, benefit the environment, and strengthen local economies.”

New York State Health Commissioner Dr. James McDonald said, “Under the leadership of Governor Hochul, New York State is taking action to protect drinking water – a basic necessity of good health. The financial assistance through the Environmental Facilities Corporation will allow these municipalities to make upgrades to their water systems that will help safeguard their communities. A special thanks to the Department of Health Bureau of Water Supply Protection who helped these projects come to fruition and for their continued work that has allowed New York State to lead the way in helping communities ensure quality drinking water for generations to come.”

New York Secretary of State Walter T. Mosley said, “Clean water infrastructure is vital to public health and New York State is making a historic infusion of funds available to address community infrastructure needs. The Environmental Facilities Corporation Board of Directors’ approval of $120 million will provide municipalities access to low-cost financing for critical projects that build stronger and more resilient communities and improve the quality of life for all New Yorkers.”

EPA Region 2 Administrator Lisa F. Garcia said, “The Bipartisan Infrastructure Law is a testament to our collective resolve to forge a future where environmental justice is not an aspiration, but a reality. With this historic funding, we are catalyzing essential water and sewer infrastructure projects, ensuring that every New Yorker has access to clean and safe water.”

Senator Kirsten Gillibrand said, “Clean water is an essential right that all New Yorkers and Americans deserve. These water infrastructure projects will improve water quality across the state, address emerging contaminants such as PFAS, and ensure that New Yorkers have reliable access to safe drinking water. I am proud to have worked to pass the Bipartisan Infrastructure Law that is helping fund these projects, and I will continue to fight for resources to improve and upgrade water infrastructure across the state.”

Representative Pat Ryan said, “Every Hudson Valley family deserves clean drinking water. From helping to eradicate PFAS from Dutchess County water to ensuring that parents in Greenwood Lake have the peace of mind that the water coming out of their faucet is clean and safe, this funding will be a game-changer for families across the Hudson Valley. I will keep fighting to ensure that Hudson Valley families never have to worry that toxins like PFAS ‘forever chemicals’ or lead from pipes are in their water.”

State Senator Pete Harckham said, “This infrastructure funding, including financial support to upgrade and rehabilitate the drinking water facilities in Mount Kisco, will allow municipalities statewide to invest in capital improvements and new technologies that will ensure that regulatory water treatment requirements are met. I thank Governor Hochul for making these essential infrastructure investments because making improvements to this infrastructure before it fails is both cost effective and responsible.”

Assemblymember Deborah Glick said, “With new stringent PFAS water regulations being put in place and emerging drinking water contaminants threatening water supplies, this $120 million investment of state and federal water infrastructure funding comes at a critical time. I am thankful for Governor Hochul and the Environmental Facilities Corporation for prioritizing clean water for New Yorkers and I look forward to further investments around the state.”

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:

• Village of Coxsackie, Greene County - $1,599,038 short-term interest-free financing and a $2,983,000 grant from BIL, as well as a $1,490,772 WIIA grant through the Clean Water, Clean Air, and Green Jobs Environmental Bond Act of 2022 for the planning, design, and construction of sanitary sewer collection and stormwater system improvements to reduce sanitary sewer overflows during storm events.
• Village of Gowanda, Cattaraugus County - $2,157,528 short-term interest-free financing and a $2,800,500 grant from BIL, as well as a $1,375,000 WIIA grant for the planning, design, and construction of wastewater treatment plant improvements.
• Village of Pulaski, Oswego County - $4,371,500 short-term interest-free financing and a $1,540,500 WIIA grant for the planning, design, and construction of upgrades to the wastewater treatment plant and collection system.
• Town of Yorkshire, Cattaraugus County - $1,629,500 BIL grant for the planning, design, and construction of the Yorkshire Corners Sewer District.

Drinking Water Projects:

• Albertson Water District, Nassau County - $4,428,409 WIIA grant for the installation of a Granular Activated Carbon (GAC) treatment system to remove PFOA and PFOS.
• Dutchess County Water and Wastewater Authority - $8,803,545 short-term market-rate financing, a $4,550,086 WIIA grant, and a $449,914 BIL grant for the installation of a new interconnection between the Greenfields Water District and the Hyde Park system to serve as an alternate water source due to the presence of PFOA, PFOS, and other contamination in the existing four wells in the Greenfield Water District.
• Franklin Square Water District, Nassau County - $3,000,000 WIIA grant and a $605,000 BIL grant for the installation of a GAC treatment system at Plant No. 1 and Well Nos. 1 and 2 for the removal of PFOS.
• Village of Garden City, Nassau County - $5,100,000 WIIA grant for the installation of new equipment at the village’s Golf Club Plant for the treatment of emerging contaminants detected in Well Nos. 13 and 14.
• Village of Greenwood Lake, Orange County - $2,000,000 short-term market-rate financing and a $3,000,000 WIIA grant for the redevelopment of existing wells, development of a new spring source, and rehabilitation of the existing water treatment plant.
• Village of Ilion, Herkimer County - $3,000,000 WIIA grant for Phase II of priority distribution improvements, including upgrade and replacement of watermain, valves, hydrants, and appurtenances. The Board additionally approved $4,564,527 short-term interest-free financing and $9,129,054 short-term market-rate financing for Phase III of the project.
• Village of Mount Kisco, Westchester County - $3,000,000 WIIA grant for upgrades to the water treatment plant, replacement of water main, and rehabilitation and improvements to four wells.
• Town of Orwell, Oswego County - $88,640 short-term interest-free financing, a $1,763,400 WIIA grant, and a $355,850 DWSRF grant for the installation of approximately two miles of new transmission main and a new pump station on County Route 2 to connect the Scholler Well Field in the Town of Richland to the existing Town of Orwell water system.
• City of Yonkers in Westchester County - $3,000,000 WIIA grant for the installation of approximately 2,600 linear feet of water main at Nepperhan Avenue.

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 financings totaling $43 million for projects located in the Village of Ilion in Herkimer County, Village of Liberty in Sullivan County, Village of Lima in Livingston County, Town of Moreau in Saratoga County, City of Newburgh in Orange County, Town of Riverhead in Suffolk County, and Village of Silver Creek in Chautauqua County.

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 $53 million in interest payments over the life of the financings.

Bond Sale Maximizes the Impact of the State Revolving Funds and Keeps Completed Projects Affordable
The Board authorized a proposed $254.5 million bond sale to refund certain prior series of bonds. The expected debt service savings will be passed on to 40 recipients to lower their debt service costs on previously bond financed projects. Refundings demonstrate EFC’s proactive financial management and benefits recipients as market conditions allow. The transaction is expected to close in September.

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. EFC is accepting WIIA grant applications until June 14. 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 to help support 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 is in addition to other substantial water quality investments. The voter-approved $4.2 billion Environmental Bond Act 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 Bond Act funding 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.