November 5 , 2009
GOVERNOR PATERSON ANNOUNCES SECOND MAJOR INFLUX OF AID TO COMMUNITIES FOR PROTECTING WATER INFRASTRUCTURE
More than $700 Million Directed to New York in Past Year
Federal Trend of Reduced Support Dramatically Reversed
Governor David A. Paterson today hailed the signing of an EPA appropriations bill that includes a dramatic increase in aid to local communities for water infrastructure projects. These projects will address looming infrastructure needs – reversing the trend of steep declines in federal aid that had jeopardized communities’ ability to protect public health, lakes, streams and rivers.
President Obama signed the appropriations bill on Friday, which approved $2.1 billion for Clean Water State Revolving Loan Funds (CWSRF) across the nation, along with another $1.38 billion for Drinking Water State Revolving Loan Funds (DWSRF). Based on the traditional federal funding formulas, New York will receive $228.9 million for clean water and $88.6 million for drinking water.
This is the second major influx of federal money to New York for water infrastructure since Governor Paterson formed the Clean Water Collaborative last year precisely to focus attention on the State’s needs and to support municipalities in getting federal aid for upgrades and repairs. In April, the EPA awarded New York $432 million in American Recovery and Reinvestment Act (ARRA) funding – the largest grant provided to a state in EPA history – for clean water projects.
“This funding will help protect our environment and will support thousands of jobs across the State at a time when we need it most,” Governor Paterson said. “As we have made clear, New York’s water infrastructure needs have been mounting at the same time federal aid has been declining. In fact, the federal government was slated to zero out the municipal loan program by 2011. But thanks to President Obama and our congressional delegation, New York is now receiving a major down payment to begin carrying out vital projects.”
In addition to increasing CWSRF funding by more than 200 percent from fiscal year 2009 funding levels, Congress also required states to offer a portion of their funding as grants, negative interest loans or principal forgiveness, thereby continuing an initiative incorporated in ARRA. Congress also requires states to use 20 percent of their clean water and drinking water appropriation for “green innovation” projects that boost water and energy efficiency and implement pollution controls.
New York State Department of Environmental Conservation (DEC) Commissioner Pete Grannis said: “This is tremendous news for New York, for our environment, for our economy and for our communities across the State. Governor Paterson, our congressional delegation and the Clean Water Collaborative have delivered. DEC and the Environmental Facilities Corporation are eager to use this funding to support local economies by creating jobs and at the same time protecting our invaluable rivers, streams and lakes.”
New York State Department of Health Commissioner, Richard F. Daines, M.D., said: “The ability to provide quality drinking water is essential to the public health and economic welfare of the people of New York. This increase in funding for drinking water system improvement projects will not only assist in this most important endeavor, but it will also help us to continue job creation and retention initiated under ARRA. We thank President Obama, our congressional delegation and Governor Paterson for their continued support.”
Matthew Millea, Acting President of the New York State Environmental Facilities Corporation, said: “On behalf of all present and future State Revolving Fund (SRF) clients, I would like to extend our sincere thanks to Governor Paterson and New York’s congressional delegation for fighting to include this important funding in the 2010 Federal Budget. As Governor Paterson has stated on many occasions, New York’s water infrastructure needs are real, significant and urgent. Clearly, our representatives in Washington have made increasing funding for the SRF programs a priority, and they should be applauded by all New Yorkers for their support of these important programs.”
New York’s Needs
At the request of State Assemblyman Bob Sweeney, the DEC compiled a report that found sewage-treatment infrastructure around the State is aging out and in need of an estimated $36.2 billion in repairs over the next 20 years. A similar State Health Department study estimated that drinking water infrastructure statewide is in need of approximately $38 billion in repairs over 20 years.
In response, Governor Paterson formed the Clean Water Collaborative (a public-private partnership) in August 2008 to raise awareness of the issue (http://www.dec.ny.gov/press/45931.html), and since then DEC has developed a successful program to foster federal investment in water treatment systems.
Aging wastewater infrastructure is tied directly to the quality of New York State’s waters. A DEC study documented the correlation between wastewater infrastructure and water quality, finding that water quality declines when infrastructure is kept in place beyond its design life or is inadequately maintained. Many of New York's sewage and wastewater facilities are past their design lives; 30 percent of the sewer pipes across the state were installed just after World War II, and a quarter of wastewater treatment plants are more than 30 years old. More than 200 state municipalities are facing Clean Water Act violations because of sewage overflows and other problems often related to aging infrastructure.
Meanwhile, federal assistance has plummeted. In 1987, the federal government provided $2.4 billion in loans to states for wastewater infrastructure projects. By 2008, that support plunged to $687 million. In New York, federal assistance fell from $227 million in 1991 to $75.1 million in 2007. An EPA report issued prior to the start of the Obama administration stated that funding for the loan program would be set to end in 2011.
The conservative cost estimate of repairing, replacing and updating New York’s drinking water infrastructure is $38.7 billion over the next 20 years. In 1996, the DWSRF was created by the federal and New York State governments to provide low-interest loans and grants for water system improvement projects. Since that time, New York State has invested over $2.6 billion in drinking water infrastructure through the DWSRF; however, the annual capitalization grant for the program had dropped from a high of $64 million in 2004-05 to $36 million over the last four years. The announced increase to $88.6 million is welcome news for New York.
State Revolving Loan Funds
The CWSRF and the DWSRF provide low-cost loans and grants to communities throughout the State for the construction, replacement and improvement of water infrastructure. Combined, these programs have provided more than $12 billion total in financial assistance to hundreds of cities, towns and villages in New York.
