Over $153M Available for Local Water Infrastructure Projects

Governor Kathy Hochul today announced more than $153 million was made available to help more than two dozen communities across New York State advance critical water and sewer infrastructure projects. The Environmental Facilities Corporation Board of Directors approved low-cost financing and state and federal grants to help local governments undertake critical upgrades — such as removing emerging contaminants from drinking water — without passing high costs on to ratepayers. These investments protect public health and the environment, reduce future risks, and support good-paying jobs.

“Strong communities start with strong infrastructure,” Governor Hochul said. “Clean water is a basic human right, which is why we’re prioritizing investments that ensure safe, affordable water for New Yorkers while protecting local taxpayers. These targeted grants and low-cost financing will empower communities to protect public health and our environment while building a more resilient future for generations to come.”

EFC’s Board approved federal grants and financing to local governments from the Clean Water and Drinking Water State Revolving Funds – a mix of federal and state dollars dedicated to financing community water and sewer infrastructure projects. Funding from the federal Infrastructure Investment and Jobs Act continues to bolster the State Revolving Funds and accelerate progress on essential clean water and drinking water projects.

The State Revolving Funds are New York’s primary financial mechanism for advancing its clean water goals, delivering over $1 billion annually to communities statewide to construct clean water infrastructure. The State Revolving Funds can save communities as much as 75 percent in interest payments compared to borrowing in the municipal bond market. Repayments of principal and interest to EFC provide recurring revenue to EFC so it can offer financing to additional communities to rehabilitate, replace and modernize aging infrastructure in the State.

Fully funded State Revolving Funds are necessary for New York to be prepared to meet the ongoing need for communities to repair, rehabilitate and modernize aging infrastructure in the future. Access to affordable financing increases investment in water infrastructure, which can prevent costly catastrophic system failures and alleviate pressure on utilities to raise rates, providing relief to many families already struggling to pay their water bills.

The Board also approved previously awarded State grants from the Water Infrastructure Improvement program. EFC Board approval is a critical step in the funding process and will allow communities to access these funds and begin construction. Leveraging federal funding with State investments maximizes the impact of each dollar spent, empowering local communities to make critical system improvements they need to keep their residents safe and ensuring cost is not a barrier for project implementation.

Environmental Facilities Corporation President & CEO Maureen A. Coleman said, “These Board approvals ensure that no community is left behind when it comes to clean water. Under Governor Hochul’s leadership, EFC continues to make projects affordable, delivering lasting financial solutions that protect public health and keep water service within reach for every New Yorker.”

New York State Department of Environmental Conservation Commissioner Amanda Lefton said, “Investing in water and sewer infrastructure to ensure all communities have access to clean water is a top priority for Governor Hochul and DEC. From Brooklyn to Brookhaven to Buffalo, municipalities need resources to develop, improve, and implement affordable projects to remove contaminants and improve aging sewers and the Clean Water and Drinking Water State Revolving Funds help bridge the funding gaps that enable communities statewide to address and meet critical infrastructure needs.”

State Health Commissioner Dr. James McDonald said, “Today’s announcement is a testament to Governor Hochul’s commitment to ensuring safe and affordable drinking water for all New Yorkers. The Department of Health’s Bureau of Water Supply Protection will continue to work with our state and local partners to protect public health and help facilitate these critical infrastructure projects from initial design to the twist of the tap.”

Secretary of State Walter T. Mosley said, “New York State continues to be a leader when it comes to investments in clean water infrastructure to build projects that are vital to public health, quality of life, economic development and environmental sustainability. This $153 million investment will safeguard drinking water, strengthen resiliency, combat climate change and create green jobs for generations to come.”

Senator Charles Schumer said, “Everyone deserves access to clean drinking water. These major federal investments will ensure families from Ellicott to Port Washington have safe drinking water and our beautiful waterways stay clean, all while creating new good-paying jobs, jobs, jobs. I am proud to deliver millions in federal funding and will fight to preserve funding to modernize drinking water and water-sewer systems in the upcoming budget. I am grateful for Governor Hochul’s partnership in the fight to turn the tide on our state’s aging water infrastructure to keep our communities safe and healthy.”

Senator Kirsten Gillibrand said, “New Yorkers deserve safe, clean water that doesn’t come at an unreasonable price. Low-cost financing and targeted grants like these will not only save local ratepayers money, but also help communities modernize aging infrastructure and protect public health. I have always been a fierce advocate for investing in infrastructure that benefits New Yorkers, and I will continue working to bring home the funding that delivers the critical improvements our communities need.”

Representative Paul Tonko said, “Clean, safe drinking water is not a privilege for the wealthy few — it’s a fundamental right for every American. That’s why I’ve fought throughout my career to secure strong investments in water quality and water infrastructure here in the Capital Region and across our nation. Today’s announcement is yet another example of our Bipartisan Infrastructure Law paying dividends for our neighborhoods, delivering lasting benefits for environmental protection and public health here in New York and beyond. Going forward, I’ll continue working to ensure every community has access to the resources they need to guarantee safe, affordable water for all.”

Representative John W. Mannion said, “Investing in and maintaining strong infrastructure is what good government delivers for the people, which is why securing these dollars has been a top priority for me in the New York State Senate and in Congress. The $5 million for the City of Oneida’s Glenmore Dam Reservoir is a major win for our region, protecting public health and the environment, strengthening our water supply, and saving ratepayers money for years to come. I’ll keep fighting to bring the resources and state and federal partnerships our communities need to thrive. I commend Governor Hochul for her leadership and her commitment to delivering results for Central New York and the Mohawk Valley.”

State Senator Harckham said, “Access to clean water is a basic human right, and ensuring its affordability is a fundamental responsibility of government. This $153 million investment is a smart, forward-looking commitment to our communities that will improve public health, strengthen sanitation systems, create good-paying jobs, and drive economic growth. I thank Governor Hochul, the EFC, and my colleagues in the legislature for prioritizing funding for this critical issue.”

Assemblymember Deborah J. Glick said, “This funding delivers much needed assistance for communities facing significant water challenges. By combining state and federal resources, this funding will help local governments replace outdated infrastructure, address harmful contaminants, and ensure residents have safe, reliable water. I’m grateful to Governor Hochul for her continued commitment to protecting New Yorkers and supporting the investments our municipalities so urgently need.”

Funding was approved for projects in the following regions:

Capital Region

• Town of Poestenkill - $4 million in grants for the development of Water District No. 2.

Central New York

• City of Oneida - $5 million grant for improvements at the Glenmore Dam Reservoir Site.

Finger Lakes

• Town of Castile - $2.7 million for the replacement of approximately 20,940 linear feet of watermains, valves, hydrants and appurtenances for the Gardeau Water District and for the service area outside of the existing water district boundary.
• Village of Geneseo - $2.7 million grant and interest-free financing package for the construction of sanitary sewer collection system improvements.
• Monroe County - $2.4 million in grants for the construction of secondary clarifier improvements at Monroe County's Frank E. Van Lare Water Resource Recovery Facility, and design and construction of improvements to the Genesee Valley Pump Station and Force Main.

Long Island

• Town of Hempstead - $7.8 million grant for the construction of an advanced oxidation process and granular activated carbon treatment system for the removal of 1,4-dioxane and volatile organic compounds from the East Meadow Water District Well Nos. 5 and 11.
• Village of Mineola - $5 million grant for the installation of two granular activated carbon adsorption treatment systems and associated appurtenances at Well No. 6 to treat PFOA and PFOS contamination.
• 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 Sandy Hollow Wells 1 & 2.
• Town of Riverhead - $1.3 million grant for the installation of granular activated carbon for the removal of PFAS at Plant No. 5.

Mid-Hudson

• Town of East Fishkill - $5 million grant for the installation of an ion exchange treatment system at the Hopewell Hamlet Water District to remove PFAS, construction of a new well at the Beekman wellfield, and installation of interconnections throughout the town to interconnect several water districts.
• Town of Newburgh - $1 million grant for the construction of inflow and infiltration improvements to the Meadow Hill gravity sanitary sewer system. This grant was funded by the Clean Water, Clean Air, and Green Jobs Environmental Bond Act of 2022.

Mohawk Valley

• Village of St. Johnsville - $13.7 million grant and interest-free financing package for the planning, design, and construction of wastewater treatment plant improvements.

North Country

• Village of Brownville - $19.5 million grant and financing package for the Installation of an approximately 500,000-gallon water storage tank, demolition of the existing aged water storage tank, replacement of approximately 28,000 linear feet of aged water main and associated appurtenances, and installation of variable frequency drives for Well Nos. 1, 2 and 3.
• Town of Dannemora - $5.9 million grant and financing package for the construction of wastewater treatment plant improvements at the Lyon Mountain Wastewater Treatment Plant.
• Town of Hounsfield - $1.1 million in financing for the construction of the Route 12F Sewer District No. 1 force main.
• Village of Lake Placid - $12.5 million grant and interest-free financing package for the planning, design, and construction of improvements to the wastewater treatment plant.
• Village of Rouses Point - $8 million grant and financing package for the construction of a new membrane water filtration plant having a capacity of 1 million gallons per day, and construction of a new water pump station to pump raw water to the new water treatment plant.
• Village of Turin - $7 million grant and interest-free financing package for the replacement/installation of approximately 17,200 linear feet of water main and associated appurtenances, extension of public water to serve 20 existing residences, replacement of water meters, demolition of the existing elevated water storage tank, installation of a new water storage tank, water treatment plant upgrades, and development of additional source capacity.

Southern Tier

• Village of Endicott - $286,725 grant for the planning, design, and construction of sanitary sewer improvements.

Western New York

• Village of Akron - $6.5 million grant and interest-free financing package for improvements to an existing Crittenden Road water storage tank.
• Village of Cassadaga - $9.5 million grant and financing package for the development of a new groundwater well or installation of treatment to address elevated methane and iron in existing Well No. 5, which has been removed from service due to water quality issues.
• Town of Ellicott - $10 million grant and interest-free financing package for the extension of public water service to the Fluvanna area, which includes approximately 34,000 linear feet of water mains, valves, hydrants, and service meters.
• Town of Westfield - $555,600 grant for the creation of the NYS Route 5 Water Benefit District No. 2, including installation of approximately 23,000 linear feet of water mains, a chlorine booster station, hydrants, valves, and meters

Refinancing Completed Projects Will Achieve Long-Term Debt Service Savings
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 interest-free financings are projected to save local ratepayers an estimated $25.9 million in interest payments over the life of the financings.

The Board approved long-term financing for projects undertaken by communities in the Finger Lakes:

• Village of Newark - $430,423 in long-term interest-free financing for the planning, design, and construction of wastewater treatment plant disinfection improvements.
• Village of Perry - $6.5 million in long-term interest-free financing for the design and construction of wastewater treatment plant improvements.
• Village of Waterloo - $9.2 million long-term interest-free financing for improvements to the drinking water treatment plant, including a building expansion to support the installation of horizontal pressure filters and granular activated carbon filters and other miscellaneous upgrades, the demolition of the existing aged water storage tank, and the installation of a new water storage tank and associated equipment, and the installation of two new interconnections between the Village and the Town of Seneca Falls water systems.

New York's Commitment to Water Quality
New York State continues to increase its nation-leading investments in water infrastructure. Governor Hochul recently announced over $20 million in grant awards through EFC’s Green Innovation and Wastewater Infrastructure Engineering Planning Grants. The next round of EFC’s Water Infrastructure Improvement and Intermunicipal Water Infrastructure Grants is now open at www.efc.ny.gov. This round reflects New York’s continued leadership in investing in affordable, community-driven clean water solutions.

With $500 million allocated for clean water infrastructure in the FY26 Enacted Budget announced by Governor Hochul, New York will have invested a total of $6 billion in water infrastructure since 2017. Any community needing assistance with water infrastructure projects is encouraged to contact EFC. New Yorkers can track projects benefiting from EFC’s investments using the interactive project impact dashboard.