New York State has approved low-cost financing and grants to advance major water and sewer infrastructure projects in communities across the state.
The funding is intended to address aging systems, emerging contaminants, and climate resilience while reducing the financial impact on local communities. In the announcement, the largest of the $269 million in awards focus on wastewater treatment upgrades, combined sewer overflow reduction, and lead service line replacement.
Funding for the approved water and sewer projects comes from a mix of state and federal sources rather than a single state budget appropriation. Federal Infrastructure Investment and Jobs Act dollars combined with state supported Clean Water and Drinking Water State Revolving Funds provide low interest and interest free financing that communities repay over time. State grants, funded through the Environmental Bond Act and the Lead Infrastructure Forgiveness and Transformation initiative, are also used to reduce or forgive portions of project costs not covered by federal aid. Together, these funding sources allow major infrastructure projects to move forward while limiting direct state spending and easing the burden on ratepayers.
Among the largest projects approved, the town of Rotterdam in the Capital Region received $51.8 million, including $34 million for high priority drinking water distribution and well field improvements and $17.8 million for wastewater treatment plant upgrades.
The town of Peru secured $25.6 million to replace its wastewater treatment plant. The upgrade, which includes expanded effluent disinfection capacity and allowances for future growth, had been delayed while funding was finalized and is now expected to move forward.
The city of Utica received $24.1 million for multiple combined sewer overflow improvement projects aimed at reducing pollution and system failures. While smaller in scale than a tunnel project previously discussed by the city, the work will be completed in phases over time and is expected to limit ratepayer impacts.
Albany received $21.6 million across two sewer system projects to reduce combined sewer overflows and improve collection infrastructure. Also in the Capital Region, Troy was awarded $16.7 million to replace more than 1,100 lead service lines, one of the largest lead removal efforts included in this round of funding.
Other significant investments include $12.7 million in interest free financing for wastewater treatment plant upgrades in the Finger Lakes village of Phelps and $10.5 million in grants and interest free financing for a drinking water system overhaul in the village of Cattaraugus in Western New York.
In New York City, $6.9 million was approved for the Jefferson Houses Cloudburst Project in East Harlem, which will manage stormwater through green infrastructure while reducing heat impacts and adding recreational space. In the Mid Hudson region, Poughkeepsie received more than $7 million in grants, loans, and loan forgiveness for stormwater management and lead service line inventory work, setting the stage for future replacement projects.
The funding package also includes long term interest free refinancing for completed projects, including $12.7 million for Rome’s Railroad Street interceptor sewer project. The refinancing is projected to save communities an estimated $18.8 million in interest costs over time.
Most of the funding is going to wastewater treatment plant rebuilds, sewer system upgrades, and lead service line replacement, using a mix of federal and state dollars to modernize aging infrastructure and keep rate increases in check.
Photo by Daina Krumins from Pixabay
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