Governor Hochul Highlights $273 Million to Make Local Water Infrastructure Projects Affordable Across New York State

Governor Hochul Highlights $273 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 $273 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 lead service line replacement and treatment processes to remove emerging contaminants from drinking water.

Today's announcement marks the first grant approved under the new Lead Infrastructure Forgiveness and Transformation program, following Governor Hochul's announcement last fall of this unprecedented $100 million initiative. EFC's Board approved funding for a $12.9 million project to replace nearly 2,500 lead pipes in Albany's water system. This is part of a larger $340 million effort across New York, using both state funding and federal funding to get the lead out. Albany is one of 12 communities receiving these loan forgiveness grants to cover costs not fully paid for by federal grants, helping to ensure local ratepayers in these communities will not bear the financial burden of these vital projects.

"Today's announcement is another large step towards ensuring that New Yorkers don't have to worry if the water coming out of the faucet is safe," Governor Hochul said. "Keeping New Yorkers safe is my top priority, and that's why I committed another $500 million for clean water in my executive budget. By helping communities fund essential upgrades to their water systems, we're protecting public health, the environment, and New Yorkers' wallets."

EFC's Board approved grants and financings to local governments from the Clean Water and Drinking Water State Revolving Funds - a mix of federal and state dollars dedicated to funding community water infrastructure projects - and state grants already announced pursuant to the state's Lead Infrastructure Forgiveness and Transformation and Water Infrastructure Improvement programs. Board approval is a critical step in the funding process and will allow communities to access these funds for project implementation.

Leveraging federal funding with the state's investments 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.

Environmental Facilities Corporation President & CEO Maureen A. Coleman said, "Healthy communities are strong communities, and that's why it's so important to invest in modern, resilient water infrastructure. By supporting these projects, we're not just protecting public health today - Governor Hochul is ensuring that future generations have access to reliable, safe water without placing a heavy financial burden on ratepayers."

New York State Department of Environmental Conservation Interim Commissioner Sean Mahar said, "Thanks to Governor Hochul's sustained commitments and an additional $500-million investment in the Executive Budget to safeguard communities and protect natural resources, New York State continues to help ensure the long-term affordability of new and existing municipal water quality projects. Building on the successful work advanced by DEC, EFC, and our many partners to improve water infrastructure statewide, the initiatives and investments announced today will promote environmental protection, protect the public from lead and emerging contaminant pollution, and prevent flooding by boosting resiliency and promoting sustainability."

State Health Commissioner Dr. James McDonald said, "Governor Hochul continues to make good on her commitment to providing safe and reliable drinking water for all New Yorkers. This latest announcement will help municipalities finance critical water infrastructure projects that will remove lead, protect from climate change and safeguard the health and wellbeing of their community today and for generations to follow."

New York Secretary of State Walter T. Mosley said, "Affordable clean water infrastructure provides the foundation for healthy, resilient and prosperous communities throughout the Empire State. Once again Governor Hochul's budget includes hundreds of millions to upgrade local water systems, which will create jobs, protect and preserve the environment and improve public health for communities around the state."

Senator Charles Schumer said, "Everyone deserves access to clean water and modern water systems. Now, thanks to my Bipartisan Infrastructure & Jobs Law, a historic $100 million is flowing to communities from Lockport to Long Island to upgrade water infrastructure - including major funding to replace lead service lines in Albany. These dollars will help give municipalities statewide the support they need to modernize critical water systems. It also means jobs, jobs, jobs, uplifting our communities and boosting the economy with long overdue projects to make New York's waters healthier and cleaner. I am proud to deliver this major funding and am grateful for Governor Hochul's partnership in the fight to turn the tide on our state's aging water infrastructure, create jobs for New Yorkers, and keep our communities safe and healthy."

Representative Paul Tonko said, "When I cast my vote for our Bipartisan Infrastructure Law, I was particularly proud of the measures we included to deliver more than $50 billion to help states and municipalities across the nation bolster their drinking water, wastewater, and stormwater infrastructure. Now, I'm thrilled to see more of those investments flowing to communities across New York State. With $273 million in state and federal funding committed to critical water infrastructure projects, including $12.9 million to replace nearly 2,500 lead service lines in the City of Albany, today's announcement marks a major step forward in our efforts to ensure every family has access to safe, clean drinking water. Going forward, I'm eager to see how these investments will empower our communities to protect public health, respond to the climate crisis, and bolster their local economies."

Representative Tom Suozzi said, "The Bipartisan Infrastructure Law, which I helped negotiate as part of the Problem Solvers Caucus, is once again providing the funding our local water districts need. These projects in Port Washington and Westbury are crucial investments that will not only safeguard and enhance our water infrastructure for future generations but also alleviate the financial strain on our local taxpayers."

Funding was approved for projects in the following regions:

Capital Region

• Albany Municipal Water Finance Authority
  • $1.3 million grant for the planning, design, and construction of stormwater improvements.
  • $12.9 million for the replacement of nearly 2,500 lead service lines. This includes a federal grant and interest-free financing, together with the state's new Lead Infrastructure Forgiveness and Transformation grant to forgive the interest-free financing.

Finger Lakes

• Village of Clyde - $2.4 million grant and financing package for the replacement of the pumps for two wells with new vertical turbine pumps, upgrades of the chemical feed system, and construction of a new treatment system and building.
• Village of Elba - $4.1 million in grants and interest-free financing for the design and construction of wastewater treatment plant and sanitary sewer system improvements.
• Town of Lyons - $4.4 million interest-free financing for the planning, design and construction of pump station upgrades in the sanitary sewer collection system.
• Town of Phelps - $587,160 grant and financing package for the extension of the water district to provide public drinking water to 25 properties that currently rely on private wells on White Road and Marbletown Road.

Long Island

• Greenlawn Water District - $1.4 million grant for the installation of two granular activated carbon adsorption vessels and all associated appurtenances to treat volatile organic compound contamination, specifically trichloroethene, at Wellhead No. 6.
• Port Washington Water District - $5 million grant for the construction of a granular activated carbon treatment system for the removal of PFOA and PFOS from Well No. 7.
• Westbury Water District - $5 million grant for the installation of two pairs of granular activated carbon adsorption vessels and all associated piping, valves and appurtenances to treat PFOA and PFOS at Well Nos. 15 and 18.

Mid-Hudson

• City of Newburgh - $44.9 million in grants and interest-free financing for the planning, design and construction of improvements to the combined sewage collection system and wastewater treatment plant.
• Village of Suffern - $852,000 grant and financing package for the rehabilitation of three existing granular activated carbon filter vessels that have been offline for 30 years.
• Town of Wawayanda - $1.4 million grant and financing package for the planning, design, and construction of a new ultraviolet disinfection system at the Robinn Meadows Wastewater Treatment Plant.

North Country

• Town of Ticonderoga - $34.2 million in grants and interest-free financing for the planning, design, and construction of upgrades to the collection system and wastewater treatment plant.

Southern Tier

• City of Norwich - $4 million in grant and interest-free financing for the planning, design, and construction of wastewater treatment plant upgrades.
• Town of Owego - $9 million grant and financing package for the planning, design, and construction of Sewer District No. 1 Water Pollution Control Plant improvements.
• Village of Sherburne - $3.7 million grant for the planning, design, and construction of wastewater treatment plant upgrades.

Western New York

• Buffalo Sewer Authority - $62.2 million in grants and financing for the planning, design, and construction of primary treatment and high-rate disinfection upgrades at the Bird Island Wastewater Treatment Plant.
• Erie County - $56 million grant and financing package for the planning, design and construction of improvements at the Southtowns Advanced Wastewater Treatment Facility.
• City of Lockport - $9.1 million in grants and interest-free financing for the planning, design, and construction of improvements to the Gulf Interceptor.

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 financing totaling nearly $10.7 million for projects undertaken in the City of North Tonawanda and Chautauqua County, both in Western New York.

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 $16 million in interest payments 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 FY25 Executive Budget announced by Governor Hochul, New York will have invested a record $6 billion in water infrastructure since 2017.

Governor Hochul's State of the State initiatives are ensuring ongoing coordination with local governments and helping communities to leverage these investments. Governor Hochul announced $435 million in grants to 102 projects in November, featuring increased awards for wastewater projects for smaller, 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 needing assistance with water infrastructure projects is encouraged to contact EFC.

Contact the Governor's Press Office