Governor Hochul Announces $41 Million Approved for Clean Water Systems and Local Drinking Water Infrastructure Projects Statewide

Governor Kathy Hochul has announced the Environmental Facilities Corporation Board of Directors approved $41 million in funding that includes low-cost loans and previously awarded grants, enabling the recipients to access these loan and grant funds and move their water and sewer infrastructure projects forward.

The Board also approved an $879 million leveraged bond financing to provide capital for various wastewater and drinking water projects for the New York City Municipal Water Finance Authority (NYCMWFA) and to refund certain prior bonds. Refunding bond sales deliver additional savings for EFC's municipal partners by refinancing the original bonds that funded their projects at an even lower interest rate. The transaction is estimated to save $18 million for New York City ratepayers over the next 10 years.

"The State of New York is steadfast in our commitment to providing communities with the resources needed to make upgrades to water and sewer systems," Governor Hochul said. "These critical projects will help protect the health and safety of residents, the environment, and quality of life as we work together to assist residents in every corner of the state with access to safe, clean water and reliable sewer services."

Environmental Facilities Corporation President and CEO Maureen A. Coleman said, "Today's announcement highlights EFC's proactive approach to maximizing resources and stretching dollars for water infrastructure investments. Refunding bonds helps make New York's State Revolving Funds some of the most efficient and effective in the nation. The deal will free up capital to support additional infrastructure projects while providing interest rate relief to one of our biggest borrowers. Governor Hochul's commitment to clean water has been demonstrated yet again in her Executive Budget with unprecedented state funding for clean water infrastructure. We must ensure also that we maintain the high level of federal Clean Water State Revolving Funds the state receives. That is why it is critical that our municipal partners participate in the Clean Watersheds Needs Survey that opens next month."

Department of Environmental Conservation (DEC) Commissioner and EFC Board Chair Basil Seggos said, "Governor Hochul recognizes the challenges municipalities face in accessing resources to make necessary improvements to local water infrastructure. New York State is making generational investments to help communities across the state address long-standing needs to upgrade and improve aging water infrastructure. New York's Clean Water and Drinking Water State Revolving Funds, and grants provided through the Water Infrastructure Improvement Act, provide municipalities with the financing needed to complete these critical projects that protect public health and the environment."

New York State Health Commissioner Dr. Mary T. Bassett said, "New York's significant fiscal commitment to improving source water quality and drinking water statewide is demonstrated in the wastewater and drinking water projects being funded here today. The impact of these necessary upgrades will be measured in overall public health for years to come, and I urge eligible communities to take advantage of this assistance."

The Board's approval includes financing through the Clean Water State Revolving Fund ("CWSRF") and Drinking Water State Revolving Fund ("DWSRF") and grants pursuant to the Water Infrastructure Improvement Act (WIIA). Visit EFC's website to learn more about water infrastructure funding opportunities.

Municipal participation in the Environmental Protection Agency (EPA) Clean Watersheds Needs Survey (CWNS) starting in March is critical as it impacts how much federal CWSRF funding will be allocated to New York State to fund future clean water infrastructure projects. Municipalities will be asked to submit to EFC documentation of their community's wastewater infrastructure needs for submittal to EPA.

Clean Water Project Funding Approved:

• Village of East Syracuse in Onondaga County - $87,156 WIIA grant and $1,009,052 in long-term, interest-free financing for the second phase of an infiltration/inflow correction and sanitary sewer overflow mitigation project.
• Village of Franklinville in Cattaraugus County - $5,050,000 in short-term, interest-free financing for wastewater treatment facility and collection system improvements.
• New York City Municipal Water Finance Authority - $284,783,326 in long-term leveraged financing to design and construct various combined sewer overflow, wastewater collection system, and treatment plant improvement projects.
• Suffolk County - $4,644,642 WIIA grant and $3,400,000 in short-term, market-rate financing to plan, design and manage construction of the Suffolk County Coastal Resiliency Initiative to sewer parcels currently using onsite systems in the Carlls River and Forge River watersheds
• City of Troy in Rensselaer County -$1,825,000 CWSRF grant and $6,179,184 in short-term, interest-free financing for the design and construction of combined sewer overflow abatement projects in the city, and in support of the Albany Pool Combined Sewer Overflow Long Term Control Plan.
• Village of Williamsville in Erie County -$1,612,500 WIIA grant for sewer collection system improvements.
• Town of Yorkshire in Cattaraugus County -$1,285,000 WIIA grant, $963,750 in short-term, interest-free financing and $2,891,250 in short-term, market-rate financing to plan, design and construct the Yorkshire Corners Sewer District.

Drinking Water Project Funding Approved:

• Town of Cairo in Greene County - $1,607,457 in long-term, interest-free financing to develop additional groundwater source capacity; improve the Park Well site and existing finished water storage tank, distribution system upgrades and installation of new water meters and meter reading equipment.
• Town of Crawford in Orange County -$2,311,680 WIIA grant, $711,329 in short-term, interest-free financing and $1,422,658 in short-term, market-rate financing for the construction of two production wells and a water treatment building, and installation of approximately 6,100 linear feet of water main to connect the treatment facility to the distribution system.
• New York City Municipal Water Finance Authority - $150,000,000 in long-term leveraged financing for the design and construction of the Croton Water Filtration Plant and associated facilities.
• Village of Nyack in Rockland County -$3,000,000 WIIA grant to replace approximately 13,000 linear feet of water main.
• Oyster Bay Water District in Nassau County -$286,000 Intermunicipal Grant (IMG) for an emergency interconnection between the Oyster Bay Water District and Locust Valley Water District.
• Westchester Joint Water Works in Westchester County - $3,200,000 IMG for the construction of a new ultraviolet light disinfection facility at the Rye Lake Pump Station.

Governor Hochul's FY 2023 Executive Budget proposes more than half a billion dollars in direct investment into clean water initiatives, including:

• $500 million in clean water infrastructure funding, bringing the State's total clean water investment to $4.5 billion since 2017
• $400 million -- a record level of funding for the Environmental Protection Fund (EPF) -- to support critical projects that work to mitigate the effects of climate change, improve agricultural resources, protect water sources, advance conservation efforts, and provide recreational opportunities.
• $4 billion for the landmark Clean Water, Clean Air, and Green Jobs Environmental Bond Act. If approved by voters this fall, this historic initiative will provide the support New York State needs to restore critical environmental habitats; reduce flood risks; conserve additional lands and open spaces; protect and improve our water resources; and invest in climate change mitigation projects that will reduce pollution and lower carbon emissions.