Environment DEC
From the September 2005 issue
Governor Announces $132 Million for Water Projects
Governor George E. Pataki announced more than $132 million in low-interest, long-term loans to 26 communities throughout New York State for projects that prevent water pollution and protect local drinking water supplies. The loans are provided through the New York State Revolving Funds (SRF), regarded as a leader among the nation's SRF Programs.
Water pollution that occurs
through outdated water and
landfill systems can affect
the state's swimming areas
"We have made unprecedented progress in protecting and enhancing our precious water resources in communities throughout New York State," said Governor Pataki. "With these low-interest rate loans, we are partnering with communities to ensure that their residents and future generations have clean, safe water."
The low-interest, long-term financing announced includes 22 projects funded through the Clean Water SRF and four projects funded through the Drinking Water SRF. Borrowers of Clean Water SRF loans receive an effective interest rate of 1.94 percent, and Drinking Water SRF financing recipients receive an effective interest rate of 2.59 percent.
Bonds Provide Funds
This financing is made from the proceeds of bonds issued by the New York State Environmental Facilities Corporation (EFC) on behalf of its borrowers. These bonds are not obligations of the State of New York. By issuing bonds and leveraging its capital, 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 triple-A by all three major rating agencies, 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 the long-term SRF financing.
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, these communities can move forward with important water projects."
Clean Water Program
Improvements to the Liverpool
Pump Station will improve the
quality of Onondaga Lake
The Clean Water SRF, administered by 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 rate. Since the program's inception in 1989, the state has provided communities with more than $11.2 billion in Clean Water SRF financing for 1,248 projects that prevent water pollution.
Drinking Water Program
The Drinking Water SRF, administered by EFC and the State Department of Health, offers grants, short-term interest-free and long-term low-interest rate loans to public water suppliers for eligible drinking water infrastructure projects. Long-term loans are issued by EFC at a subsidized interest rate that is generally one-third the prevailing rate. Since its formation in 1996, New York's Drinking Water SRF has provided more than $1.48 billion in grants and reduced interest rate financing for 473 drinking water improvement projects throughout New York State.
