Governor Hochul secures $185 million for New York water infrastructure
(UI) — Governor Kathy Hochul has secured over $185 million for water infrastructure projects across New York. The Environmental Facilities Corporation Board of Directors has given the green light to provide financial assistance for vital water infrastructure improvements throughout the state.
This approval allows municipalities to access more than $94.7 million in low-cost short-term financing along with previously announced grants. These funds will kickstart essential water and sewer infrastructure projects, including the development of treatment methods to eliminate emerging contaminants from drinking water.
To ensure the sustainability of ongoing projects, the Board has taken action to secure the long-term affordability of these initiatives. This effort involves a $189 million bond sale. When combined with previously authorized grants, this bond sale is projected to save municipalities an estimated $125 million in debt service payments across 25 projects statewide.
Governor Hochul emphasized New York's commitment to providing clean and safe water access, underscoring the significance of this historic investment in bolstering environmental resilience, public health, and economic development throughout communities in the state.
Funds approved in this allocation encompass over $44 million from the federal Bipartisan Infrastructure Law (BIL). This funding, dedicated to water and sewer infrastructure, is administered by the EFC through the State Revolving Funds. Notably, New York City will receive a $42 million long-term interest-free financing through BIL for the North River cogeneration and electrification project. This initiative is expected to save city ratepayers approximately $33 million over a 30-year span due to current market conditions. An additional $2 million BIL grant has been granted to Hicksville in Nassau County, specifically for a drinking water project designed to address emerging contaminants.
These approvals encompass financings through the Clean Water State Revolving Fund and the Drinking Water State Revolving Fund, as well as grants previously announced under the Water Infrastructure Improvement and Intermunicipal Grant programs.
Furthermore, the Board's approvals encompass long-term refinancing for six existing projects, totaling $90.6 million. Short-term financing supports the initial project design and construction. After project completion, short-term financing is generally refinanced into long-term financing lasting up to 30 years. This approach significantly reduces interest expenses for municipalities compared to independent financing.
Beyond the funding allocated for New York City, additional projects have been approved for long-term interest-free financing. These projects include those for the Albany Municipal Water Finance Authority in Albany County, the Village of Lake George in Warren County, the town of Pamelia in Jefferson County, and two projects for the City of Schenectady in Schenectady County. Based on existing market conditions, these long-term financing arrangements are projected to save ratepayers an estimated $103 million in interest payments and previously authorized grants over the financing term.
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