Approval of Financial Assistance Authorizes Municipal Access to the Capital Needed for Projects that Reduce Risks to Public Health and the Environment
Governor Kathy Hochul today announced the Environmental Facilities Corporation Board of Directors approved $164 million in financial assistance for water infrastructure improvement projects across New York State. The Board’s approval authorizes municipal access to over $156 million in low-cost short-term financing and previously announced grants to get shovels in the ground for critical water and sewer infrastructure projects in New York City, the City of Utica in Oneida County and the Town of Minerva in Essex County.
The Board also took action to help ensure continued, long-term affordability of two existing projects, approving interest-free financing totaling over $8 million to the Village of Akron in Erie County and the Village of Warsaw in Wyoming County to provide savings on debt service for these projects.
“My administration continues to tackle water quality issues head-on with strategic investments that will benefit New Yorkers for generations to come,” Governor Hochul said. “These funds are crucial to help communities modernize and protect critical infrastructure so that all New Yorkers have access to clean water.”
Environmental Facilities Corporation President & CEO Maureen A. Coleman said, “This $164 million infrastructure investment will deliver clean, safe water, while saving ratepayers money and creating good paying jobs. Investing in water infrastructure is critical to protecting communities from water pollution that threatens public health and the environment.”
New York State Department of Environmental Conservation Commissioner and EFC Board Chair Basil Seggos said, “I applaud Governor Hochul’s sustained commitment to invest in affordable and transformational infrastructure projects that improve water quality and help municipalities upgrade critical infrastructure. With $164 million in grants and financing, these resources will continue to protect water quality and maintain New Yorkers’ health and safety.”
New York State Health Commissioner Dr. James V. McDonald said, “I thank Governor Hochul and the Environmental Facilities Corporation for their leadership and partnership in making safe drinking water a public health priority. The financial assistance provided though the Environmental Facilities Corporation will help municipalities ensure their drinking water is safe and reliable.”
Secretary of State Robert J. Rodriguez said, “Once again New York is making nation-leading investments in clean water infrastructure together with the historic funding geared to help communities large and small to undertake projects that are vital to public health, quality of life, economic development and environmental protection. The Environmental Facilities Corporation’s approval of $156 million for New York City, the City of Utica in Oneida County, and the Town of Minerva in Essex County is key to providing the much-needed resources to build critical infrastructure projects to modernize aging systems.”
Senate Majority Leader Charles Schumer said, “Utica get out your shovels because the historic investments I secured in the Bipartisan Infrastructure & Jobs Law are flowing to critical water and sewer infrastructure improvements for the City of Utica and Oneida County. This $4.6 million federal investment will help keep our environments and the Mohawk River free of sewage overflow and bolster our communities water infrastructures resiliency. These federal dollars will add capacity to the city’s combined sewer system to support projects like the Wynn Hospital, that are transforming Utica’s downtown. I am proud to deliver this critical federal funding, and I applaud Governor Hochul for her leadership in turning the tide on Utica’s aging water infrastructure.”
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.
Project funding approved:
- City of Utica, Oneida County – $4.6 million grant and financing package for a sewer project that will make the city’s wastewater system more resilient during wet weather events and reduce risk of sewer overflows to the Mohawk River. Funding includes $3.4 million in interest-free financing and grant from federal Bipartisan Infrastructure Law funds. BIL funding for water and sewer infrastructure is administered by EFC through the State Revolving Funds.
- New York City Municipal Water Finance Authority – $150 million in short-term, market rate financing for the excavation and construction of Shafts 17B-1 and 18B-1 in City Tunnel No. 3, Stage 2 in Queens. This drinking water project will provide redundancy for the city’s water system and allow for better flow control and system management.
- Town of Minerva, Essex County – $1.5 million in short-term, market rate financing for the replacement of nearly 6,000 linear feet of water main across two drinking water project areas.
Refinancing Projects Will Achieve Long-Term Debt Service Savings
The Board approved long-term interest free financing totaling $8.2 million for wastewater treatment plant improvement projects in the Village of Akron in Erie County and the Village of Warsaw in Wyoming County. 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 $10.6 million in interest payments 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 $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.