For Release: Thursday, April 24, 2008
Grannis Announces Initiative to Promote Smart Growth and Energy Efficiency Through Clean Water Funding Programs
Improvements Include More Public Information on Projects
To modernize New York State's drinking water and clean water loan programs, Department of Environmental Conservation Commissioner Pete Grannis announced today that energy efficiency and smart growth will be included as factors to help prioritize funding decisions. And in another upgrade, the state will launch an initiative to provide more transparent information regarding the use of the funds.
"One of DEC's priorities is to foster green and healthy communities," Grannis said. "These programs support critical municipal infrastructure, and we need to maximize their benefit by promoting good land use and efficient energy use along with protection of water quality."
New York uses the Clean Water and Drinking Water State Revolving Loan Funds (SRFs) to evaluate and financially support infrastructure for wastewater collection and treatment systems and drinking water systems. Both programs employ a point system to prioritize proposed municipal projects for funding, using a range of public health and water quality factors. Going forward, the programs will incorporate wise land use and energy conservation as factors. This effort will involve an interagency rulemaking team spearheaded by DEC and involving the Environmental Facilities Corp. (EFC) and the state Department of Health (DOH).
In addition, the initiative will serve as a follow-up to the Governor's executive order establishing a smart growth cabinet and directing all agencies to review programs that impact land use and economic development.
"By making sure that the state is funding energy-efficient upgrades at treatment plants," Grannis said, "we can contribute to Governor Paterson's effort to reduce statewide electricity demand by 15 percent by 2015, and reduce the pollution that causes climate change."
"Safe, healthy drinking water is our highest priority," said State Health Commissioner Richard F. Daines, M.D. "Water system improvements that increase energy efficiency while improving water quality will further enhance the public's health by reducing pollution associated with energy consumption."
"The state must be an energizing force for smart growth. The alignment of state fiscal resources with smart growth principles is a priority," said Secretary of State Lorraine Cortes-Vazquez "This is a major step forward."
"New York's Clean Water and Drinking Water State Revolving funds are the most successfully run water finance programs in the nation," said EFC's Acting President, Matthew Millea. "Since 1990, EFC has provided municipalities with over $11 billion in low cost financial assistance, and an additional $1.3 billion in direct interest subsidies, for over 1,800 water supply and water pollution control projects. I look forward to continuing our long-standing partnership with DEC as we work to ensure that the state supports projects that are cost efficient, environmentally sustainable, and built where we most need them."
"This initiative will bring a more sophisticated approach to funding water-related infrastructure plans," said James Tierney, DEC Assistant Commissioner for Water and Watersheds.
A recent DEC report found that 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. DEC has established a new executive staff position to focus on this looming public need.
As a result of the initiative, Commissioner Grannis has directed DEC and EFC to:
- Work in partnership with DOH to reexamine the regulations governing the clean water funding programs and to issue preliminary options for modifying these programs by Sept. 1.
- Solicit public input by holding stakeholder sessions around the state on the issues of energy efficiency and smart growth as they relate to the SRF programs.
- Consult with municipalities and municipal organizations regarding enhancing the SRF programs to address land use, smart growth, and energy efficiency.
- Initiate a rulemaking process for the DEC regulations affecting these programs and consult with partner agencies regarding similar efforts with respect to their jurisdictions.
- Post fact sheets on each project funded by the revolving loan funds on the EFC web site, along with a statewide map of all projects by Sept. 1.
