New York Gov. Kathy Hochul announced a $288 million allocation earlier this month to make local water infrastructure projects more affordable across New York State. The funding is aimed at upgrading sewer systems and water treatment plants and replacing lead service lines through a mix of state and federal financing.
Hochul said the strategy is designed to accelerate long-delayed projects while limiting the impact on ratepayers. The funding package combines federal Infrastructure Investment and Jobs Act grants and loans, the state’s revolving funds, which provide low-interest financing, and the state’s Lead Infrastructure Forgiveness and Transformation program, which reduces loan debt for qualifying water projects.
The $288 million package is spread across a wide range of systems, regions and populations, with the largest shares directed toward lead pipe replacement and wastewater system upgrades. Major awards include funding for large municipal systems, like New York City, as well as smaller grants and loan forgiveness for rural and upstate communities.
The single largest allocation, $114 million, leverages a combination of state and federal grants, interest-free financing and loan forgiveness through the state’s Lead Infrastructure Forgiveness and Transformation program for eight New York City projects focused primarily on lead service line replacement in the Bronx, Queens and Brooklyn.
In the Capital Region, the city of Schenectady received $30 million in state and federal grants and low-cost financing to plan, design and construct improvements at its water resource recovery facility and in the lower State Street area. The state grant portion of the funding is supported by the Environmental Bond Act.
In Central New York, the village of Richfield Springs was awarded $23.5 million in state and federal grants and interest-free financing for comprehensive upgrades to its wastewater treatment plant and collection system. Officials say the project is critical to maintaining reliable service for the small community.
Additional funding was approved for dozens of projects statewide, including lead service line replacement and water main rehabilitation in Rochester and Albany; drinking water treatment plant upgrades in communities such as Warsaw and Indian Lake; and wastewater and sewer system improvements in Buffalo, Niagara Falls, Liberty and Champlain. Several smaller towns and villages will create or expand water districts and sewer systems with the funding.
In addition to the $288 million package, Hochul announced the Environmental Facilities Corporation board approved an additional $579 million bond sale to refinance existing drinking water and sewer projects in New York City. Officials said the refinancing will reduce long-term debt service costs and help keep water and sewer rates affordable.
State officials described the funding as part of a long-term effort to address aging water and sewer systems. New York has provided billions of dollars in water infrastructure assistance in recent years, including more than $3.8 billion in the current fiscal year, according to the governor’s office.
Photo by Russ McElroy from Pixabay
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