Governor Hochul Highlights $234.5 Million for Local Water Infrastructure Projects Across New York State

Governor Kathy Hochul today announced the Environmental Facilities Corporation Board of Directors approved $234.5 million in financial assistance for water infrastructure improvement projects across New York State. The Board’s approval authorizes municipal access to over $226.8 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 flood mitigation measures that protect critical clean water systems from high water events.

“By investing in our state’s water infrastructure, we are laying the foundation for regional growth and prosperity while protecting our natural resources,” Governor Hochul said. “This financial assistance helps ensure that cost will not be a barrier as communities across the state continue to modernize treatment systems with vital infrastructure upgrades, helping usher in a healthier, more resilient future for New York.”

The Board also took action to help ensure continued, long-term affordability of three existing projects, approving long-term financing totaling over $7.7 million to municipalities to provide savings on debt service for these projects.

Of the projects approved for funding today, the Board approved $148 million for a clean water resiliency project that will support the city of Long Beach’s long-term recovery from devastation caused by Hurricane Sandy in 2012. This critical project will safeguard the city’s wastewater treatment systems with flood mitigation measures, convert the city’s water pollution control plant into a pump station and connect it with Nassau County’s South Shore Reclamation Facility. Together with the ongoing Bay Park Conveyance Project, the city’s undertaking will improve water quality of the Western Bays and Reynolds Channel. EFC is prefinancing the project to provide the city with the up-front capital needed to get the project constructed. These funds will be reimbursed by federal disaster grant programs.

The Board also approved a grant and interest-free financing package that includes $38 million in federal Bipartisan Infrastructure Law (BIL) funding for the Village of Bath in Steuben County. BIL funding for water and sewer infrastructure is administered by EFC through the State Revolving Funds. The project will modernize the village’s wastewater treatment plant to reduce pollution in the Chesapeake Bay Watershed and increase the plant’s capacity for future growth and development.

New York State Environmental Facilities Corporation President & CEO Maureen A. Coleman said, “EFC always stands ready to provide creative funding solutions to our partners in local government and further our mission of getting critical water quality infrastructure projects underway. EFC has already committed $300 million to support the Bay Park Conveyance Project that’s ongoing in Nassau County. Committing another $148 million to support the City of Long Beach in its disaster recovery underscores Governor Hochul’s commitment to providing communities with the resources they need to safeguard critical infrastructure and strengthen their ability to withstand the effects of climate change.”

New York State Department of Environmental Conservation Commissioner and Environmental Facilities Corporation Board Chair Basil Seggos said, “Governor Hochul is committed to making investments that safeguard New York’s water supplies, while also protecting our communities from pollution and the threats of severe weather. Today, New York State is supporting municipalities pursuing stronger, more modernized infrastructure projects that will enhance our ongoing efforts to protect water quality and ensure our communities are better equipped to withstand future storms and flooding.”

New York State Secretary of State Robert J. Rodriguez said, “Clean water infrastructure forms the foundation for green, healthy and resilient community development. Governor Hochul’s continued financial support for projects like these will promote sustainable economic development, relieve the fiscal strain that local governments are experiencing and further protect New York communities from the increasing threat of climate-related natural disasters.”

New York State Department of Health Commissioner Dr. James McDonald said. “Governor Hochul’s leadership, along with the work of the Environmental Facilities Corporation, ensures that our communities have the resources available to protect drinking water and public health now and for years to come. This new funding will help municipalities across New York improve their water systems as we continue to see more and more flooding and severe weather due to climate change.”

Senate Majority Leader Chuck Schumer said, “From Long Island and the Hudson Valley to the Finger Lakes and Western NY, the historic investments I secured in the Bipartisan Infrastructure & Jobs Law are flowing and getting shovels in the ground to ensure clean, safe drinking water and make critical upgrades for wastewater infrastructure projects across the Empire State. These long overdue projects won’t just help make New York’s water healthier and cleaner, but it also means lots of good paying jobs and a better future for communities across New York. I am proud to deliver this critical federal funding to boost these projects, and I applaud Governor Hochul for her leadership. Together, we are helping lay the foundation for an improved quality of life across the state, and I will never stop fighting to bring these federal dollars home to New York.”

Senator Kirsten Gillibrand said, “Clean water is an essential right that all New Yorkers and Americans deserve. These water infrastructure projects will help ensure that New Yorkers have safe, reliable access to drinking water, while also protecting critical wastewater treatment systems. I am proud to have worked to secure $38 million of this funding for the Village of Bath through the Bipartisan Infrastructure Law. I applaud Governor Hochul’s efforts to improve New York’s water infrastructure and I will continue to work so all New Yorkers have access to safe, clean water.”

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:

• Village of Bath, Steuben County – $23,712,500 short-term interest-free financing and $14,767,125 grant from BIL general supplemental funds, as well as $1,287,500 short-term interest-free financing and $2,722,500 CWSRF grant for the planning, design and construction of wastewater treatment plant improvements, including nutrient removal and disinfection upgrades.
• City of Long Beach, Nassau County – $148,926,731 short-term, market-rate financing to convert the City of Long Beach Wastewater Treatment Plant into a pump station to connect with the Nassau County South Shore Reclamation Facility.
• Village of Lyndonville, Orleans County – $576,437 short-term interest-free financing for the planning, design and construction of disinfection improvements at the village’s wastewater treatment plant.
• Village of Rhinebeck, Dutchess County – $5,500,000 short-term interest-free financing for the planning, design and construction of upgrades to the village’s wastewater treatment and collection system.
• Village of South Dayton, Cattaraugus County – $392,400 short-term interest-free financing and $357,600 short-term market-rate financing for the planning, design and construction of improvements to the village’s wastewater treatment plant and sanitary collection system.

Drinking Water Projects:

• Albertson Water District, Nassau County – $3,000,000 WIIA grant for the installation of new equipment at Well 3A for the treatment of emerging contaminants.
• Village of Little Valley, Cattaraugus County – $2,940,000 short-term interest-free financing and $3,010,000 DWSRF grant for the construction and installation of a new well supply and wellhouse, improvements to the existing well and replacement of approximately 30,000 linear feet of water mains in various areas of the village.
• Plainview Water District, Nassau County – Two WIIA grants totaling $6.4 million for the installation of new equipment at the Plainview Water District’s Plants No. 3 and 4 for the treatment of emerging contaminants.
• Town of Schodack, Rensselaer County – $709,200 WIIA grant for the installation of 5,700 linear feet of water main with valves, hydrants and other related appurtenances.
• Town of Willsboro, Essex County – $2,495,525 short-term interest-free financing, $4,991,048 short-term market-rate financing and $5,000,000 WIIA grant for the construction of a new water treatment plant.

Refinancing Completed Projects Will Achieve Long-Term Debt Service Savings
The Board approved long-term refinancing totaling $7.7 million for three existing projects. 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.

Projects approved for long-term interest-free financing include the City of Amsterdam in Montgomery County, the Town of Hume in Allegany County and the Village of Mayville in Chautauqua County. Based on current market conditions, these long-term financings are projected to save ratepayers an estimated $16.2 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 the $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.