Environment DEC
From the March 2005 issue
Governor Pataki Announces $136 Million for Water Projects
Governor George E. Pataki announced nearly $136 million in low-interest, long-term loans to 20 communities throughout New York State for 29 projects to prevent water pollution and protect local drinking water supplies. The loans are provided through the New York State Revolving Funds (SRF) programs, regarded as a leader among the nation's SRF Programs.
"New York State is a national leader in protecting and enhancing our precious water resources and ensuring that quality drinking water is available for New Yorkers," said Governor Pataki. "These low-interest loans enable us to partner with communities throughout the state to help prevent water pollution and ensure that New York residents have access to safe, clean drinking water for generations to come."
The financing announced includes $130,081,493 million from the Clean Water SRF for 25 projects and $5,847,039 million from the Drinking Water SRF for four projects. Borrowers of Clean Water SRF loans receive an effective interest rate of 2.11 percent, and Drinking Water SRF financing recipients receive an effective interest rate of 2.81 percent.
DEC Acting Commissioner Denise M. Sheehan said, "Governor Pataki is committed to helping local communities protect New York's pristine natural resources. By providing these low-interest loans, communities from Long Island to Buffalo can move forward with important water projects."
Environmental Facilities Corporation
Financing is available to upgrade
wastewater treatment plants from the
proceeds of bonds issued by the EFC
This financing is made from the proceeds of bonds issued by the New York State Environmental Facilities Corporation (EFC) on behalf of its borrowers. By issuing bonds and leveraging capital, the EFC is able to provide two to three times more capital for water, sewer and water quality protection projects.
The corporation's bonds are rated AAA by all three major rating agencies, thus enabling the corporation to obtain much lower interest rates than if borrowers sold their own bonds. Most of the funding recipients announced today previously received interest-free, short-term SRF loans, which are being converted into long-term SRF financing.
EFC President Thomas J. Kelly said, "Thanks to Governor Pataki's support for programs like the SRF, communities throughout the state can undertake critical water and sewer projects at an affordable cost to their residents. With the financing announced, the Governor continues to demonstrate his unwavering commitment to building quality communities."
Clean Water SRF
The Clean Water SRF, administered by the EFC and the State Department of Environmental Conservation (DEC), offers short-term, interest-free loans and long-term, reduced interest rate financing for eligible water pollution prevention projects. Long-term loans are issued by EFC at a subsidized interest rate of one half the prevailing interest rate. The state has provided communities with more than $11 billion in Clean Water SRF financing for projects that prevent water pollution.
Drinking Water SRF
The Drinking Water SRF, administered by the EFC and the State Department of Health, offers a significant financial incentive for public water suppliers to finance needed drinking water infrastructure improvements with grants and short-term, interest free and long-term, low interest rate loans. Long-term loans are issued by the EFC at a subsidized interest rate that is generally one-third of the prevailing interest rate.
Since its formation in 1996, New York's Drinking Water SRF has provided more than $1.4 billion in grants and reduced interest rate financing for drinking water improvement projects throughout New York State.
