$62M to Upgrade Albany County Sewage Plants

Governor Kathy Hochul said on May 21 that Albany County will receive nearly $62 million in state-directed federal grant money and low-cost financing to upgrade its North and South wastewater treatment plants. The funding was approved by the New York State Environmental Facilities Corporation board as part of a broader $113 million package for water and sewer projects statewide. State officials said the Albany County money will help modernize facilities built in the 1970s, reduce odors and emissions, and protect water quality in the Hudson River. The new package comes in addition to a $25 million state grant awarded in December for the same effort. ### Which plants are getting the money? Albany County’s Water Purification District operates two wastewater treatment facilities — the North Treatment Plant at 1 Canal Road in Menands and the South Treatment Plant at 209 Church Street in the Port of Albany. County records say the district provides wastewater transportation and treatment services to eight member communities and serves a population of more than 200,000. The May 21 state announcement said both plants date to the 1970s and need comprehensive upgrades. The work is aimed at modernizing operations at the two sites rather than building a new facility, according to the governor’s office and county materials. ### What exactly did the state approve? The Environmental Facilities Corporation board approved a financing package that includes nearly $62 million in grant support and low-cost borrowing for Albany County. The state described board approval as a milestone that allows local governments to enter into agreements and access money for approved projects. The May 21 announcement did not break out the exact split between grant dollars and subsidized financing in the Albany County package. State officials said the funding is being provided through New York’s Clean Water State Revolving Fund and related water infrastructure programs, which combine state and federal support for sewer and wastewater projects. ### Why is the total larger than $62 million? A separate $25 million state grant was awarded in December 2025 to support the same Albany County plant modernization effort. Governor Hochul’s office said the new financing package is in addition to that earlier grant and is intended to further reduce costs for local ratepayers. The December award was part of a statewide round of Water Infrastructure Improvement and Intermunicipal Grant funding. In that announcement, state officials said the Albany County project would help ensure reliable wastewater treatment service for the eight communities served by the county district and improve Hudson River water quality. ### What problems are officials trying to fix? State officials said the planned upgrades are intended to address aging equipment and long-term operating needs at the county’s North and South plants. The governor’s office said the work will improve emissions and odors while protecting water quality in the Hudson River. Albany County’s Water Purification District says it is responsible for maintaining state and federal compliance at the two plants. County materials also show the district has an active capital improvements plan and ongoing industrial pretreatment responsibilities tied to environmental permits and wastewater discharges. ### Who pays for this, and what happens next? New York State said the funding mix is designed to limit the burden on local sewer users by pairing grants with below-market financing. The Clean Water State Revolving Fund, which the state cited as one source for the package, provides low-cost assistance for municipal wastewater and sewer projects. The next step is for Albany County to enter into formal agreements that will let it draw on the approved funds. The Environmental Facilities Corporation said board approval is the point in the process when municipalities can move toward accessing project financing, and Albany County’s Water Purification District lists a May 2024 engineering report and a March 2025 sludge processing improvements document among its current capital planning materials.