EFC Awards $434 Million
for Water Infrastructure Projects
ALBANY—The New York State Environmental Facilities Corp. Board of Directors approved on Aug. 7 a total of $434 million for water infrastructure projects statewide, including $361 million in low-cost financing to New York City and $22.7 million for projects in the Hudson Valley.
Among a host of New York City projects, funding will go towards the excavation and construction of Shafts 17B-1 and 18B-1, which are part of City Tunnel No. 3, Stage 2 in Queens. The project will provide redundancy for the water system and allow for better flow control and management.
In addition, funding is earmarked for the construction of a second water conveyance tunnel from the Kensico Reservoir to the Catskill/Delaware Ultraviolet Disinfection Facility in Eastview. Completion of this project will enhance operational resiliency and redundancy for the water supply system.
Also securing financing are improvements to the Hillview Reservoir that are necessary to cover the 900-million-gallon storage reservoir, the final location where chemical treatment is provided upstream of the city’s distribution system. The reservoir provides secondary treatment for at least 90% of the city’s water supply, and 50% of the City of Yonkers’ water supply.
The Town of Warwick in Orange County has secured $16 million in state grant and interest-free financing for the planning, design, and construction of upgrades to the Wickham Sewer District No. 1 Wastewater Treatment Plant that was built in the 1980s. The project will replace many components in poor or non-operational condition and improve treatment to protect water quality in the Longhouse Creek.
Other Hudson Valley-based projects that are receiving funding are: the Town of Amenia has netted $3.9 million in state grant and low-cost financing for upgrades to its drinking water treatment plant, groundwater source and the storage and distribution systems. The upgrades will improve system reliability and reduce the risk of unplanned failures. The Village of Pawling was awarded $2.8 million in state and federal grants for development of five wells in the Lower Baxter Wellfield, construction of a treatment facility to treat the Lower Baxter and Umscheid Wells, and replacement of 2,000 linear feet of water main. The project is helping the village provide an adequate and reliable supply of potable water to users. EFC previously awarded interest-free financing to the project.
Published: August 12, 2026.
