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

Includes More Than $450 Million to Finance Clean Water Projects in New York City

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

Governor Kathy Hochul 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.”

This 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.

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.