Governor Paterson Announces $4.45 Million in Economic Recovery Funding for Clean Water Projects

Stimulus Grants for the Town and the Village of Cuba Help to Keep Cuba Lake Beautiful While Reducing Costs to Local Taxpayers

ALBANY, NY (08/17/2009)(readMedia)-- Governor David A. Paterson and U.S. Representative Eric Massa (NY-29) today announced that the Town of Cuba and the Village of Cuba in Allegany County will receive $4.45 million in American Recovery and Reinvestment Act (ARRA) funding for two long-awaited clean water infrastructure improvements. The grants, along with $3 million from the Clean Water State Revolving Fund, will finance $7.45 million in projects, overhauling the current sewer systems, improving the region's economic viability and protecting Cuba Lake.

"Keeping our waters clean, especially a beautiful natural resource such as Cuba Lake must be a priority. By using federal stimulus funds for these essential clean water projects, we substantially reduced the burden on local taxpayers and guaranteed that the projects would start now, and bring their benefits to the Town and Village of Cuba sooner," Governor Paterson said. "Having the Town and Village share the same sewage treatment plant is precisely the type of cooperation and cost-savings we are working to promote. I would like to thank President Obama and the New York State Congressional Delegation for not only their efforts to obtain funding for New York, but also for their foresight to include environmental and water infrastructure projects within the Economic Recovery Package."

"Creating jobs while improving our infrastructure is exactly why I voted for the American Recovery and Reinvestment Act," said Congressman Eric Massa. "I'm proud to help deliver these funds to the Town and Village of Cuba to improve their water infrastructure and protect Cuba Lake. This investment in our community will pay off for years to come, and I'm glad that we could direct these Recovery funds toward such a worthy program."

New York State Environmental Facilities Corporation Acting President Matthew Millea said: "We are proud to partner with Town of Cuba and Village of Cuba to create job opportunities during these difficult times and ensure the future economic vitality of this region. Governor Paterson and New York's Congressional Delegation have worked hard to secure this funding and call attention to the State's clean water infrastructure needs."

The New York State Environmental Facilities Corporation will provide financing for the entirety of each of these important water quality projects.

Town of Cuba Project

The Town's total project cost of $5.3 million will be funded with a combination of a zero-percent Clean Water State Revolving Fund loan of $1.9 million, and a principal forgiveness grant of $3.4 million from federal stimulus funds, which is more than 60 percent of the project costs. The Environmental Facilities Corporation (EFC) has designated the Town as a "hardship community," and thus the community will benefit from zero-percent financing for full term of its loan, which will likely run thirty years.

Upon project completion, the Town's wastewater collection system will service 395 homes and 35 businesses, allowing property owners to disable existing on-site septic systems. As a result, many older and failing septic systems will no longer introduce partially treated sewage and nutrients into Cuba Lake. In an effort to improve government efficiency, the Town will connect its new collection and sewer systems to the Village's treatment facility. For local residents and businesses, the upgrades are vital to the long-term growth and preservation of the Lake's thriving tourism industry. Construction began June 26, 2009; the Town anticipates that the project will be complete by May of next year.

Village of Cuba Project

The Village's project costs of $2.1 million will be funded with a combination of a low-cost loan from the Clean Water State Revolving Fund and a principal forgiveness grant of $1.05 million from federal stimulus funds, which is fifty percent of the project's total cost.

The Village will replace and upgrade a significant portion of its sanitary sewer collection system and wastewater treatment facility, including weatherization, replacement of the primary pump station, and improvements to the clarifier and trickling filter. Currently, the Village experiences significant rain and groundwater infiltration into its collection system, which overwhelms the waste treatment plant, and leads to the discharge of partially-treated sewage into New Oil Creek, which flows into the Allegany River. New collection piping and equipment upgrades to the wastewater treatment plant will diminish harmful sewer overflows, improve plant efficiency and further protect the water quality of New Oil Creek and Cuba Lake. The Village expects to begin construction on February 1, 2010.

Environmental Facilities Corporation Staff are working closely with a New York State Energy Research and Development Authority (NYSERDA) sponsored energy-efficiency consultant to identify additional energy conservation and "green" upgrades to the Village's wastewater treatment facility. The Village may be eligible for further grant dollars from the Recovery Act and the State's Regional Greenhouse Gas Initiative if it identifies additional energy-efficiency improvements.

New York State received an historic $432 million grant from the American Recovery and Reinvestment Act for the Clean Water State Revolving Fund. To date, Governor Paterson has announced 33 projects that will benefit from this notable program, totaling over $300 million. The Act requires states to direct twenty percent of their Recovery Act funding to water quality projects that use innovative approaches to energy and water efficiency, incorporate "green" infrastructure, and use innovative treatment technologies. For more information about the American Recovery and Reinvestment Act and the Clean Water State Revolving Fund program, please visit www/.recovry.ny.gov and www.nysefc.org/recovery.

###

The following quotes were provided in support of the Allegany County clean water projects:

U.S. Senator Charles Schumer said: "Updating our aging water infrastructure is a critical part of economic growth in Allegany County. This funding through the Economic Recovery Act will ensure that our water infrastructure is up to snuff to provide safe, quality drinking water to residents and create jobs in the process."

U.S. Senator Kirsten Gillibrand said: "This is a great investment for Allegany County. Upgrading wastewater removal systems is critical to public health, environmental quality, and to our economic recovery. These federal dollars will help support job creation for the area and make critical infrastructure improvements in the Village of Cuba, and at the beautiful Cuba Lake. I will continue working with Senator Schumer and the entire New York Delegation to make sure New York gets its fair share from the federal government."New York State Department of Environmental Conservation Commissioner and EFC Board Chairman Pete Grannis said: "Cuba Lake is a jewel of the Southern Tier and the projects announced today will replace aging septic systems and infrastructure to help improve the lake's water quality and enhance the community. We appreciate the work of Governor Paterson and our Congressional delegation to deliver this stimulus money to communities like the Town and Village of Cuba so that we can continue to build upon the progress being made to protect the environment, improve aging infrastructure, and create jobs."

New York Energy Research and Development Authority President Francis J. Murray, Jr. noted the dual opportunity to leverage federal economic stimulus funds by New York State Energy Research and Development Authority co-founding of engineering studies and equipment that will improve the environment and keep New York State waters clean and healthy. "Under Governor Paterson's leadership, New York State agencies and authorities have been maximizing the value of stimulus dollars by investing in projects that create good-paying jobs, protect the environment and reduce the impact on local property taxes. Working alongside the New York State Environmental Facilities Corporation, New York State Energy Research and Development Authority will continue to provide technical guidance and funding to local governments to ensure that these plants are constructed to the most energy efficient standards, thereby improving their economic and environmental performance."

Senator Catherine Young said: "The investment in this infrastructure project will help grow the economy, and protect people and our natural resources. This partnership between local, state and federal governments has garnered great results. The town and village especially deserve kudos for working cooperatively."

Assemblyman Joseph Giglio said: "Funding from the American Recovery and Reinvestment Act to assist the Town and the Village of Cuba to improve their wastewater treatment systems makes possible exactly the sort of projects that were envisioned when the stimulus program was enacted. These efforts will create jobs in various fields, help to improve water quality for residents and result in more efficient operation of both systems. I am pleased to see the culmination of the efforts by all of our local and state officials to improve the delivery of services to the citizens of Cuba."

Allegany County Legislator William G. Dibble said: "I represented Cuba in my first year in office. Over the years I have seen the bacteria levels rise to unsafe levels by mid-summer. I congratulate those who assisted and located the funding to make Cuba Lake safe again. This is a great day for Cuba Lake, the Village and Town of Cuba and Allegany County. Thanks again."

Town of Cuba Supervisor Barbara Deming said: "This is a monumental occasion for the Town and Village of Cuba. It is the culmination of a great amount of work by many people. At times it seemed to be an exercise in futility, but perseverance won, and the project came together. The Sewer District will not only benefit Cuba Lake, it puts the necessary infrastructure in place for the prime property along Rt. 305 and at the interchange of I86 for commercial development. There are too many people to thank individually. You know who you are, so I thank you collectively. You can all be proud of your effort and hard work to make Cuba a better place to work and live.

Town of Cuba Mayor Thomas Taylor said: "The ARRA funding is the boost that Cuba needs to efficiently repair our wastewater collection and treatment system. These repairs will greatly reduce inflow and infiltration by not having to treat rainwater, which has been infiltrating into our system for decades. Although small improvements have been made every year, by receiving this stimulus funding we will be able to adequately upgrade our system. This will improve water quality as well as save money by reducing the amount of energy consumed by the wastewater treatment facility."