New York Gov. Kathy Hochul announced $176 million in financial assistance for water infrastructure improvement projects that reduce potential risks to public health and the environment, including the first projects in New York State to receive clean water infrastructure funding under the Bipartisan Infrastructure Law in the Town of Liberty and City of Newburgh.
The Environmental Facilities Corporation Board of Directors approved low-cost financing and previously announced grants authorizing municipal access to the capital needed to get shovels in the ground for critical drinking water and sewer projects. The board also approved long-term financing conversions that provide debt interest relief for municipalities on completed projects.
"New York continues to provide unprecedented financial support to help communities upgrade water systems and improve water quality," Hochul said. "Combined with our state's nation-leading clean water investments, this first round of Bipartisan Infrastructure Law funding will help modernize water infrastructure in Liberty and Newburgh and improve water quality throughout these communities."
Of the funding announce, the Town of Liberty in Sullivan County and the City of Newburgh in Orange County will receive the first funding from the Bipartisan Infrastructure Law for clean water infrastructure in New York State. Approved Bipartisan Infrastructure Law funding for the Town of Liberty includes a $6.9 million grant and $6.9 million short-term interest-free financing as part of an $18 million financial assistance package that also includes a $4.5 million Water Infrastructure Improvement grant. The funding will be used to expand and upgrade the Swan Lake Wastewater Treatment Plant.
The Board also approved Bipartisan Infrastructure Law funding for the City of Newburgh, including a $3.5 million grant and $2.5 million interest-free financing as part of a $17 million financial assistance package that also includes grants from the Water Infrastructure Improvement program and the Clean Water State Revolving Fund. The funding will help the city undertake a $31 million project that will increase the ability of the city's wastewater treatment plant to treat wet weather flows and protect water quality in the Hudson River.
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 program.
Overview of NY SRF Funding
New York received nearly $207 million in clean water funding awarded from the Bipartisan Infrastructure Law to the Clean Water State Revolving Fund (CWSRF) for clean water infrastructure improvements, as announced recently by the U.S. Environmental Protection Agency. This is the first installment of nearly $427 million in Bipartisan Infrastructure Law funding going to New York for clean and drinking water infrastructure this year.
The Bipartisan Infrastructure Law will infuse the Environmental Facilities Corporation's SRF financing programs with additional funding annually for five years. An additional $482 million is expected in 2023 for clean and drinking water infrastructure. These grants supplement nearly $125 million in regular federal funding to New York's CWSRF program in federal fiscal year 2023. The Environmental Facilities Corporation estimates the CWSRF can provide approximately $1.2 billion in interest-free or low-interest rate financing and grants for clean water project costs during Fiscal Year 2023.
An additional $220 million is expected to be awarded to New York from the Bipartisan Infrastructure Law to the DWSRF for drinking water projects later this fall, supplementing $45 million in regular federal funding for drinking water infrastructure this year. The Department of Health estimates the DWSRF can provide approximately $438 million in interest-free or low-interest rate financing and grants for drinking water project costs during Fiscal Year 2023. Visit the Environmental Facilities Corporation's website to learn more about water infrastructure funding opportunities.
Clean Water Project Funding Approved
- City of Newburgh in Orange County - $2,568,662 in short-term interest-free financing and $3,559,825 grant from Bipartisan Infrastructure Law General Supplemental funds, $5,577,500 WIIA grant, and $5,577,500 Clean Water State Revolving Fund grant to improve the combined sewage collection system and wastewater treatment plant.
- Town of Liberty in Sullivan County - $6,916,000 short-term interest-free financing and $6,916,000 grant from Bipartisan Infrastructure Law General Supplemental funds, and $4,500,000 WIIA grant to expand and upgrade the Swan Lake Wastewater Treatment Plant.
- Town of Herman in St. Lawrence County - $2,000,000 in short-term interest-free financing for wastewater collection and treatment system improvements.
- Village of Adams in Jefferson County - $3,094,942 in long-term interest-free financing and $252,779 WIIA grant to upgrade the water pollution control facility and collection system.
- Town of Ausable in Clinton County - $5,348,808 in long-term interest-free financing and $669,949 WIIA grant to rehabilitate the collection system and wastewater treatment plant.
- Town of Chautauqua in Chautauqua County - $1,822,856 in long-term interest-free financing to decommission the Chautauqua Heights Sewer District Treatment Plant, and to construct a pump station and force main.
- New York City Municipal Water Finance Authority - $97,436,193 in long-term interest-bearing financing to plan, design and construct flood protection and resiliency measures at various wastewater treatment plants and pump stations throughout New York City as part of the Storm Mitigation Loan Program.
- Suffolk County - $6,793,302 in long-term interest-free financing for the effluent pump station rehabilitation project at the Bergen Point Wastewater Treatment Plant as part of the Storm Mitigation Loan Program.
Drinking Water Project Funding Approved
- South Huntington Water District in Suffolk County - $715,500 emerging contaminants grant and $750,000 WIIA grant to construct a new advanced oxidation process treatment system to remove 1,4-Dioxane and other volatile organic compounds at plant No. 10
- City and Town of Poughkeepsie in Dutchess County - A funding package for a joint project to improve operation of a shared water treatment facility, including upgrades to the existing ultraviolet disinfection system, replacement of the uninterruptable power supply system and improvements to the HVAC system in the pipe gallery.
- City of Poughkeepsie - $1,081,157 in short-term market-rate financing and $1,621,568 WIIA grant that includes the city's share of $2,952,600 award to the Poughkeepsie Joint Water Board.
- Town of Poughkeepsie - $902,918 in short-term market-rate financing and $1,331,032 WIIA grant that includes the town's share of $2,952,600 award to the Poughkeepsie Joint Water Board.
- New York City Municipal Water Finance Authority - $9,110,530 in long-term interest-free financing to stabilize the Kensico Reservoir shorelines surrounding Shaft 18 as part of the Storm Mitigation Loan Program.
- City of Hornell in Steuben County - $3,792,500 in long-term interest-free financing and $160,654 WIIA grant for water system upgrades to the water treatment plant's No. 1 clarifier and storage tank, construction of a new storage tank, reservoir improvements and a supervisory control and data acquisition system.
- City of Mechanicville in Saratoga County - $2,925,000 in long-term interest-free financing and $616,492 Drinking Water State Revolving Fund grant to connect the city to the Saratoga County Water Authority system.
New York's Commitment to Water Quality
New York continues to increase investments in clean water infrastructure. Under the leadership of Governor Hochul, the 2022-23 Enacted Budget authorizes an additional $1.2 billion, for a total of $4.2 billion, for the landmark Clean Water, Clean Air, and Green Jobs Environmental Bond Act. This historic initiative, to be taken up by voters in the ongoing general election, includes funding to update aging water infrastructure and protect water quality; reduce air pollution and lower climate-altering emissions; restore habitats; strengthen communities' ability to withstand severe storms and flooding; preserve outdoor spaces and local farms; and ensure equity by investing at least 35 percent, with a goal of 40 percent, of resources in disadvantaged communities.
In addition, the Budget included another $500 million in clean water infrastructure funding, bringing the State's total clean water investment to $4.5 billion since 2017. It also includes a record $400 million Environmental Protection Fund to support climate change mitigation and adaptation efforts, improve agricultural resources to promote sustainable agriculture, protect our water sources, advance conservation efforts, and provide recreational opportunities for New Yorkers.
Quotes from Government Leaders
"Today's announcement underscores Governor Hochul's commitment to distribute the investment from the Bipartisan Infrastructure Law efficiently and equitably," said New York State Environmental Facilities Corporation President and CEO Maureen A. Coleman. "I encourage all communities to work with the Environmental Facilities Corporation to learn how they may benefit from this historic level of financial resources for clean water infrastructure."
New York State Department of Environmental Conservation Commissioner and Environmental Facilities Corporation Board Chair Basil Seggos underscored the importance of water infrastructure to communities and the economy.
"Water infrastructure is critical for our economy, environment, and our communities," Seggos said. "Governor Hochul's sustained commitment to investing in infrastructure upgrades and improvements is building stronger and healthier communities and creating jobs across the state. The significant funding announced today will help ensure municipalities have the resources they need to replace and update aging water systems and safeguard water quality."
Senate Majority Leader Charles Schumer said the funding provided by the BIL has begun to flow and will not only create jobs but improve the quality of life for communities in New York.
"From the City of Newburgh to Chautauqua County, this $176 million will make critical upgrades to our aging water infrastructure, ensure our families have safe drinking water free of lead, PFAS, and other toxic contaminants, and keep our rivers and lakes free of sewer overflows," Schumer said. "It also means jobs, jobs, jobs, uplifting our communities with long overdue projects to make New York's waters healthier and cleaner. I am proud to deliver this historic federal investment to turn the tide on New York's aging water infrastructure."
