Governor Hochul Highlights Over $108.8 Million for Local Water Infrastructure Projects Across New York State

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

Includes $66.5 Million Financing to Support Ongoing Construction of the Bay Park Conveyance Project in Nassau County

Governor Kathy Hochul today announced the Environmental Facilities Corporation Board of Directors approved over $108.8 million in financial assistance for water infrastructure improvement projects across New York State. The Board’s approval authorizes municipal access to over $88.9 million in low-cost short-term 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.

“New York State continues to provide unprecedented financial support to help communities upgrade water systems and improve water quality,” Governor Hochul said. “Providing funding and resources to help local governments get shovels in the ground for water infrastructure improvement projects is a top priority, and we'll continue working together to modernize our infrastructure and provide safe, reliable water systems for generations to come.”

Approved funding includes a $66.5 million financing package to Nassau County for the ongoing construction of the Bay Park Conveyance Project. It’s part of New York State’s $425.6 million financial commitment to a critical project that is strengthening resiliency and mitigating flooding at Nassau County’s clean water facilities and improving water quality in the Reynolds Channel.

The Board also took action to help ensure continued, long-term affordability of seven existing projects. The Board approved over $19.9 million in long-term interest-free financings to municipalities to provide savings on debt service for these projects.

The Board's approvals include financings through the Clean Water State Revolving Fund and Drinking Water State Revolving Fund, and grants already announced pursuant to the Water Infrastructure Improvement and Intermunicipal Grant programs.

Clean Water Projects:

• Nassau County — $33,298,765 short-term interest-free financing and $33,298,764 short-term market-rate financing for the planning, design and construction of effluent flow diversions from the South Shore Reclamation Facility to the Cedar Creek Water Pollution Control Plant to provide resiliency, flood mitigation and improve water quality in Reynolds Channel.
• Town of Newfield, Tompkins County — $551,907 short-term interest-free financing $377,609 short-term market-rate financing, and $183,969 WIIA grant for the planning, design and construction of collection system improvements.

Drinking Water Projects:

• City of Auburn, Cayuga County — $3,720,000 WIIA grant for the comprehensive rehabilitation of the Slow Sand Filtration Plant and Rapid Sand Filtration Plant, including structural, electrical, architectural, HVAC and process mechanical improvements.
• Village of Cuba, Allegany County — $4,300,000 short-term market-rate financing and $3,000,000 WIIA grant for the replacement of water main, installation of chlorine contact piping, well house improvements, water storage tank improvements, new emergency power equipment and installation of a control/monitoring system.
• Greenlawn Water District, Suffolk County — $3,000,000 WIIA grant for the construction of a new treatment process at the existing water treatment facility to remove 1,4-dioxane from the District's Well No. 8.
• Town of Lewisboro, Westchester County — $775,800 short-term market-rate financing and $1,163,700 WIIA grant for the installation of a Granular Activated Carbon (GAC) treatment system for the removal of perfluorinated alkyl substance, construction of a GAC treatment building, and replacement of booster pumps, jockey pump and high flow pump in-kind, and piping.
• Village of Pawling, Dutchess County — $1,169,867 short-term interest-free financing, $2,339,733 short-term market-rate financing and $1,280,400 WIIA grant for the development of five wells in the Lower Baxter Wellfield, construction of a treatment facility to treat the Lower Baxter Wells and the Umscheid Wells, and installation of distribution piping.
• South Huntington Water District, Suffolk County — $5,500,000 WIIA grant for the installation of an Advanced Oxidation Process treatment system for 1,4-dioxane removal and the replacement of an existing GAC treatment system with larger vessels.
• Town of Stafford, Genesee County — $1,065,000 WIIA grant for the creation of the new Water District No. 12 and installation of approximately 30,000 linear feet of water main.

Refinancing Completed Projects Will Achieve Long-Term Debt Service Savings

The Board approved long-term refinancing for seven existing projects totaling $19.9 million. 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.

Long-term interest-free financing was approved by the Board for clean water projects in Cooperstown in Otsego County, Coxsackie in Greene County, Homer in Cortland County, Kingston in Ulster County, Oakfield in Genesee County, and Tonawanda in Erie County, as well as a drinking water project by the Dutchess County Water and Wastewater Authority. Based on current market conditions, these long-term financings are projected to save ratepayers an estimated $37.8 million in interest payments and previously authorized grants over the life of the financings.

New York's Commitment to Water Quality

New York State's nation-leading investment in clean water infrastructure totals $5 billion since 2017. Under the leadership of Governor Hochul, the 2023-24 Enacted Budget includes $500 million in clean water funding. The Governor launched Community Assistance Teams this year to expand EFC's technical assistance program and help small, rural, and disadvantaged communities leverage this funding to address their clean water infrastructure needs. Any community that needs help with their water infrastructure needs is encouraged to contact EFC at efc.ny.gov/CAT.

The voter-approved $4.2 billion Clean Water, Clean Air and Green Jobs 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. Disadvantaged Communities will receive at least 35 percent of the benefits of Bond Act funding, with a goal of 40 percent.