New York Gov. Kathy Hochul announced that $176 million of funding is being made available to 13 communities across the state to improve critical water and sewer infrastructure. The loan forgiveness grants will help cover costs not fully paid for by federal grants, minimizing the financial burden of the vital projects on local ratepayers.
The funding was approved on Sept. 18 by the Environmental Facilities Corporation (EFC) Board of Directors. The awards include low-cost financing and state and federal grants. Under the $100 million Lead Infrastructure Forgiveness and Transformation (LIFT) program, the EFC approved $22.8 million in LIFT and federal Infrastructure Investment and Jobs Act (IIJA) funding. This funding will support replacing 2,790 lead pipes in Syracuse. It is part of a broader $469 million statewide campaign to remove lead from the water supply.
These low-interest, long-term financing options help communities afford essential projects and are necessary for the state to be prepared to meet the ongoing need for communities to repair, rehabilitate, and modernize aging infrastructure in the future. The EFC board also previously approved awarded grants from the Water Infrastructure Improvement program. This combined investment strategy ensures every dollar goes further in protecting public health and modernizing aging infrastructure across the state.
Projects in this round of funding will advance critical upgrades such as replacing lead service lines and removing emerging contaminants from drinking water. State officials anticipate the projects will protect public health and the environment, reduce future risks, support good-paying jobs, ensure access to safe drinking water, avoid costly rate increases, and prevent infrastructure failures. The following projects will be funded through the newly announced awards:
Capital Region
- Hudson – $66.6 million in grants and financing for the planning, design, and construction of new sanitary and storm sewers to replace existing combined sewers. The project will mitigate combined sewer overflows which negatively impact water quality in the Hudson River.
- Schenectady – $12.8 million grant and financing package for water treatment plant improvements, including site piping upgrades, the installation of a new fluoride chemical storage and treatment system, installation of three new production wells and associated well houses, and electrical improvements around the site.
Central New York
- Syracuse – $22.8 million in grants and financing, including a loan forgiveness LIFT grant, for the replacement of 2,790 lead service lines.
- Weedsport – $19 million grant and financing package for the replacement of 47,500 linear feet of drinking water main throughout the distribution system.
Finger Lakes
- Pembroke – $5 million grant for the formation of Water District No. 4, including installation of approximately 110,000 linear feet of drinking water mains and appurtenances including hydrants, valves, and service meters.
Long Island
- Albertson Water District – $5 million grant for the installation of a granular activated carbon treatment system for the removal of PFAs from existing Well No. 1.
- Jericho Water District – $5 million grant for new wellhead treatment of PFOA from the District’s Well No. 23 using granular activated carbon, demolition of the existing wellhouse, and construction of a new drinking water treatment building.
Mid-Hudson
- Peekskill – $10.4 million grant and financing package for the planning, design, and construction of resiliency improvements to the Riverfront pump station, gravity collection sewers, and sanitary sewer force mains.
North Country
- Harrietstown – $1.3 million grant for site investigations and preparation of a remedial investigation report to determine the nature and extent of the contamination contributing to source water contamination at the Adirondack Regional Airport from emerging contaminants, including PFAs.
- Cape Vincent – $5 million grant for the installation of approximately 29,000 linear feet of drinking water main and associated appurtenances to serve the new Water District No. 7.
Southern Tier
- Hornell – $1.2 million grant for the planning, design, and construction of a disinfection system and other improvements to the water pollution control plant. EFC previously provided $4.9 million in interest-free financing for the project.
Western New York
- Depew – $1.9 million grant and financing package for the planning, design and construction of sanitary sewer improvements to reduce inflow and infiltration to the sewer collection system.
The EFC Board also took action to help ensure continued, long-term affordability of existing projects through a transition in financing. Short-term financing is used to provide capital for the design and construction projects. Once project construction is completed, the projects typically refinance to long-term financing for up to 30 years. The projects offered long-term, interest-free financing will save municipalities interest expenses. Based on the current market, local ratepayers save an estimated $14.8 million in interest payments over the life of the financing. The projects named by the EFC for this refinancing are:
North Country
- Clayton – $5.6 million in long-term interest-free financing for the planning, design, and construction of wastewater collection and treatment improvements.
- Crown Point – $1.9 million in long-term interest-free financing for the replacement of existing drinking water distribution mains, which have reached the end of their useful life. The project will also include upgrades to the current water sources with new pumps, site piping and control buildings and water meter systems.
The newly announced funding and refinancing initiatives continue New York’s commitment to water quality and its nation-leading investments in water infrastructure. In the State Fiscal Year 2025, $3.4 billion in financial assistance has been given by the EFC.
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