New York state approves $273 million for local water infrastructure improvements

(UI) — Governor Kathy Hochul has announced that the Environmental Facilities Corporation (EFC) Board of Directors has approved $273 million in financial assistance for water infrastructure improvements across New York.

The funding will help municipalities access low-cost financing and grants for critical water and sewer projects, including lead service line replacements and treatment processes aimed at removing emerging contaminants from drinking water.

This announcement marks the first grant approved under the new Lead Infrastructure Forgiveness and Transformation program, which was introduced by Governor Hochul last fall as part of a $100 million initiative.

The EFC Board has approved funding for a $12.9 million project to replace nearly 2,500 lead pipes in Albany's water system. This project is part of a broader $340 million effort across the state, combining both state and federal funds to eliminate lead from the water supply. Albany is one of 12 communities receiving these loan forgiveness grants, which will cover costs not fully paid for by federal grants, alleviating the financial burden on local ratepayers.

Governor Hochul emphasized the importance of ensuring safe drinking water for all New Yorkers: “Today’s announcement is another large step towards ensuring that New Yorkers don’t have to worry if the water coming out of the faucet is safe,” she said. “Keeping New Yorkers safe is my top priority, and that’s why I committed another $500 million for clean water in my executive budget. By helping communities fund essential upgrades to their water systems, we're protecting public health, the environment, and New Yorkers' wallets.”

The EFC's Board approved grants and financings from the Clean Water and Drinking Water State Revolving Funds, which combine federal and state dollars to support local water infrastructure projects. The funds will allow communities to implement projects that will safeguard public health, protect the environment, and strengthen climate resilience.

Maureen A. Coleman, president & CEO of EFC, noted the critical role of investing in water infrastructure: “Healthy communities are strong communities, and that’s why it’s so important to invest in modern, resilient water infrastructure. By supporting these projects, we're not just protecting public health today – Governor Hochul is ensuring that future generations have access to reliable, safe water without placing a heavy financial burden on ratepayers.”

The funding will support various projects across the state, including the following:

Capital Region:

• Albany Municipal Water Finance Authority: $12.9 million for lead service line replacement, part of a $340 million effort.
• Albany Municipal Water Finance Authority: $1.3 million for stormwater improvements.

Finger Lakes:

• Town of Phelps: $587,160 for extending water to 25 properties.

Long Island:

• Port Washington Water District: $5 million for PFOS/PFOA removal.
• Westbury Water District: $5 million for PFOS/PFOA treatment.

Mid-Hudson:

• City of Newburgh: $44.9 million for sewage system and plant upgrades.

North Country:

• Town of Ticonderoga: $34.2 million for wastewater treatment and collection upgrades.

The EFC Board also approved $10.7 million in long-term financing for projects in the City of North Tonawanda and Chautauqua County. This refinancing will save local ratepayers an estimated $16 million in interest payments over the life of the loans.

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