State, NYC Announce Landmark Agreement for Newtown Creek and Other Sewage Treatment Plants

• by New York State Department of Environmental Conservation

ALBANY, NY (11/06/2008)(readMedia)-- New York State and New York City officials today announced a landmark agreement that represents a crucial step forward for upgrading the city's Newtown Creek Wastewater Treatment Plant and for ensuring compliance with environmental laws at all 14 of the city's wastewater treatments plants. The agreement also provides $10 million for community environmental benefit projects -- the largest such allocation in state history.

The state and the city worked collaboratively to develop a forward-looking approach for addressing wastewater treatment facilities, a critical issue for public health and waterways. With the completion of the agreement, the state and city pave the way to make fundamental changes by:

• Assuring that the city's upgrade of the Newtown Creek plant - the largest wastewater treatment plant in the state -- will continue under a strict set of deadlines.
• Committing New York City to completing a comprehensive environmental audit to assure compliance with environmental laws at its 14 in-city sewage treatment plants and its four largest combined sewer overflow (CSO) facilities, and to identify and correct any violations discovered during this audit. (Details below) This is the first time such a protocol has been established between the city and the state for the in-city wastewater treatment plants.
• Ensuring compliance by putting into escrow proceeds from a $27.4 million judgment against New York City for violations at the Newtown Creek plant. The penalty will be returned if the city meets certain construction milestones for the plant upgrade. The settlement also outlines an additional $16 million in penalties if requirements of the capital-management improvement program aren't met.
• Providing $10 million in local environmental benefits through a portfolio of projects (details below). This is the largest Environmental Benefit Project (EBP) in the state's history.

"Today's agreement will not only fix problems at the Newtown Creek plant, but also change the long-standing cycle of violations-and-penalties at all of the city's wastewater plants," said New York State Department of Environmental Conservation (DEC) Commissioner Pete Grannis. "This is a significant breakthrough. After years of trying, the city and state have come together and agreed on a sensible, forward-looking solution to ensure cleaner water, better compliance and healthier neighborhoods."

"We are extremely pleased to have reached an agreement with the state that will allow us to be in compliance - now and in the future -- as we complete the important work on the Newtown Creek Wastewater Treatment Plant," said NYC Department of Environmental Protection (DEP) Acting Commissioner Steven Lawitts. "The many components of this agreement highlight the challenges that cities around the country face in building costly and complex, but critically important infrastructure."

"This agreement represents a major step forward in the city's efforts to assure that the Newtown Creek Plant continues to serve the public appropriately while it's upgraded to comply with current wastewater treatment standards," said Corporation Counsel Michael A. Cardozo of the New York City Law Department. "The city also looks forward to working with the state in ensuring that its wastewater treatment construction upgrades proceed efficiently in the future -- and in compliance with all environmental requirements."

"This agreement is a new day in the relationship between the state and the city," said DEC General Counsel Alison Crocker. "I look forward to the more productive, efficient, and proactive relationship with the city that this agreement will bring. Protocols for a comprehensive audit, for permitting processes, and for construction management will allow our agencies to work together to prevent problems before they arise."

"My Greenpoint community has waited a long time for a sign of progress on this issue -- and we finally have one," said Assemblyman Joseph R. Lentol, whose district covers the Greenpoint neighborhood where the Newtown Creek sewage plant is located. "The plant will be improved. The state and city environmental agencies, working with effective environmental agencies and organizations, will be investing in important efforts to improve our communities. Education, enhanced natural resources, and vehicle engine retrofits offer measurable benefits for us all."

As part of the plan, the city will hire an independent contractor to conduct audits for the wastewater treatment plants and the CSO facilities. CSO facilities handle a mixture of storm water and domestic waste when the flow capacity of a sewer system is overwhelmed during rainstorms. The city will correct any violations discovered during the audits, without being subject to penalties.

The city will work closely with the state to ensure that critical capital wastewater projects are delivered effectively and efficiently. Both the state and the city believe these initiatives represent a proactive approach to future compliance and will result in significant benefits to the environment and local communities.

The city will fund a $10 million Environmental Benefit Project (EBP). The EBP funds will be administered through the City Parks Foundation, the New York State Energy Research and Development Authority and the Hudson River Foundation. These organizations will develop a portfolio of neighborhood projects - with input from community groups in and around the Greenpoint section of Brooklyn - to install green infrastructure; create or improve open space, public parks and waterfront access; create ecological stewardship and education programs; retrofit diesel buses and trucks; and implement energy efficiency programs in low-income housing.

The terms of the settlement are subject to approval by the New York City comptroller.

"This plan is the result of hard work by a number of people," Commissioner Grannis said, "but I want to especially express thanks to former DEP Commissioner Emily Lloyd, who helped negotiate the agreement before she left office. It's an agreement that will serve the people of the state and city well into the future."