State invests $78M for clean drinking water infrastructure projects

ALBANY | The Environmental Facilities Corporation Board of Directors has approved $78 million in financial assistance for water infrastructure improvement projects throughout the state, including the Capital Region, Finger Lakes, New York City, North Country, Southern Tier and Western New York regions. These investments will help communities large and small undertake projects that are vital to public health, quality of life, economic development and environmental protection. In the North Country, a Village of Lake Placid project upgrading its antiquated wastewater facility was approved for long-term interest-free financing. "Improving our water infrastructure is essential for building safe and healthy New York communities," Gov. Hochul said. "This financial assistance makes all the difference in being able to provide safe drinking water to New Yorkers, protect our natural resources and ensure the projects are successful and affordable." 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 state's Water Infrastructure Improvement (WIIA) and Intermunicipal Grant (IMG) programs. Funding from the federal Bipartisan Infrastructure Law (BIL) for water and sewer infrastructure is administered by EFC through the State Revolving Funds. The Board's approval authorizes municipal access to capital to get shovels in the ground for critical water and sewer infrastructure projects. Clean Water Projects: Albany Municipal Water Finance Authority (Capital Region) – $2,127,250 short-term interest-free financing and $4,254,500 grant from BIL general supplemental funds, as well as a $3,625,000 WIIA grant for the planning, design, and construction of combined sewer overflow abatement projects constructed in the Cities of Troy, Albany and Cohoes in support of the Albany Pool Combined Sewer Overflow Long Term Control Plan. Village of Endicott in Broome County (Southern Tier) – $75,295 WIIA grant for the construction of collection system improvements. Drinking Water Projects: New York City Municipal Water Finance Authority – $50,000,000 short-term market-rate financing for the construction of a second water conveyance tunnel from the Kensico Reservoir to the Catskill/Delaware Ultraviolet Disinfection Facility in Eastview. Village of Portville in Cattaraugus County (Western NY) – $1,622,559 short-term interest-free financing and $785,971 grant from BIL general supplemental funds, as well as a $3,000,000 WIIA grant for improvements to well sources and treatment buildings; chlorine treatment and fluoridation treatment system processes and the north storage tank; replacement of the south storage tank reservoir, aged and undersized watermains, valves and hydrants; and installation of telemetry and new water meters. City of Rochester in Monroe County (Finger Lakes) – $3,000,000 WIIA grant for the replacement of approximately 1,100 lead, lead-lined and galvanized water services. Refinancing Completed Projects Will Achieve Long-Term Debt Service Savings The Board also took action to help ensure continued, long-term affordability of existing projects. This includes approving an $847 million bond sale to refinance various wastewater and drinking water projects and refunding prior bonds issued for the New York City Municipal Water Finance Authority (NYCMWFA). Refunding bonds delivers additional savings for New York City ratepayers by refinancing the original bonds that funded their projects at an even lower interest rate. The transaction is estimated to save $149 million for New York City ratepayers over the next 30 years. In addition to the bond sale on behalf of New York City, the Board approved $10 million in long-term interest-free financing for three existing projects in the Village of Lake Placid in Essex County (North Country), the Village of Sherman in Chautauqua County (Western NY) and the Town of Woodhall in Steuben County (Southern Tier). 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 ratepayers an estimated $15 million in interest payments over the life of the financings. Senate Majority Leader Charles Schumer said, "Clean drinking water is a right for everyone, which is why I sent major federal dollars flowing to New York in our Bipartisan Infrastructure & Jobs Law to upgrade our aged drinking water and sewer infrastructure. Today's funding adds to the millions to build out clean and drinking water systems and ensures families, children and seniors in every corner of the Empire State can have contaminant-free water. From the Capital Region to Western New York, more of our neighbors will have clean drinking water as we create jobs, jobs, jobs. I am proud to deliver this critical federal funding with Governor Hochul to turn the tide on New York's aging water infrastructure."

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State invests $78M for clean drinking water infrastructure projects

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