Intermunicipal Water Infrastructure Grants Program

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The Environmental Facilities Corporation (EFC) to provides grants to assist municipalities that are working together on water quality infrastructure projects. Intermunicipal Grants (IMG) are available for both drinking water and sewage treatment works, also referred to as clean water projects that serve multiple municipalities, such as a shared water quality infrastructure project or the interconnection of multiple municipal water systems.


IMG maximum award threshold has increased

  • The lesser of $30 million or 40% of net eligible project costs.
  • IMG grant awardees seeking SRF financing will only be eligible to apply for market-rate financing.

Eligible Applicants

  • Municipalities
  • County or town improvement districts
  • School districts (eligible for grants but not eligible for financing from the Clean Water State Revolving Fund)
  • Indian nations or tribes recognized by the state or the United States with a reservation wholly or partly within the boundaries of New York State
  • Public benefit corporations or public authorities that are empowered to construct and operate a water quality infrastructure project

Eligible Projects

Eligible projects include water quality infrastructure projects at municipally-owned sewage treatment works OR municipally-owned public water systems for construction, replacement or repair of infrastructure; or compliance with environmental and public health laws and regulations related to water quality.

Each IMG project must meet the following criteria:

  • Serve multiple municipalities;
  • Be a shared drinking water or sewage treatment infrastructure project, such as shared water quality infrastructure or the interconnection of multiple municipal water systems;
  • Have a valid and binding project Intermunicipal Agreement (IMA) between at least two cooperating municipalities related to financing of the IMG project;
  • Designate a “lead municipality” that applies on behalf of all cooperating municipalities;
  • Result in construction of the project;
  • Not have started construction before October 1, 2019;
  • Not have completed construction before November 1, 2021;
  • All contracts must include EFC terms and conditions;
  • Not have closed an SRF financing; and
  • Not be for the construction of water infrastructure that exclusively supports new development, whether residential or commercial.

Eligible Costs

These costs are eligible as long as those costs result in a completed eligible infrastructure improvement project.

  • Project planning
  • Design
  • Construction services

More About Eligibility for IMG


How Other Funding Sources Impact Intermunicipal Grants and Awards

Complementing Your Grant with Financing from State Revolving Funds

You are not required to obtain financing from the State Revolving Funds (SRF) if you are awarded a grant. However, if you apply and indicate that you are using SRF financial assistance for the balance of your projectand your project is eligible, it will be listed on the Intended Use Plan (IUP) for the Clean Water State Revolving Fund or the Drinking Water State Revolving Fund, as applicable. Projects that are included on the annual list of an IUP can apply for SRF financing, but IMG awardees are limited to market-rate financing only.

You do not need to be listed on the IUP to apply for an intermunicipal grant. If your project is already listed on an Intended Use Plan, your project is eligible for a  grant even if it is below the "hardship" subsidy line.

Funding From Other Agencies

Eligible projects that have received loans or grants through another funding agency are eligible for an Intermunicipal Grant. However, you should consult the other agency to see if the IMG award impacts your funding.

Grant awards are calculated based on the "net total eligible project costs" which means the total project costs less any awarded grants from other funding sources and any ineligible costs. Grant funds from another funding agency will impact the net project costs on the calculated grant award amounts. Please submit a copy of your award letter from other funding agencies with your WIIA/IMG Application. If you are awarded an IMG, and subsequently receive another grant for the same project, your grant would be recalculated to factor in any new co-funding (e.g. WQIP, CDBG). Loan financing from another funding agency would not affect the grant award amount.

Evaluation Criteria

In evaluating projects, EFC and DOH will consider factors such as the water quality improvement or reduction in risk to public health, consideration for Environmental Justice Areas, readiness to advance construction, level of demonstrated community support, and the benefits to multiple municipalities. 

Municipalities are not required to submit an engineering agreement at the time of their grant application. However, if you already have one for your project, please submit it with the application as a sign of the project's readiness to advance to construction.


All project contracts that are to be paid for with WIIA funds must comply with EFC's program requirements and must include the required contractual language from the applicable EFC bid packet. Any contracts, including those executed prior to grant application, that do not include the required contractual language will be disqualified from funding.


EFC is committed to promoting participation opportunities for New York State ("State") certified minority- and women-owned business enterprises ("MWBEs") and federal disadvantaged business enterprises ("DBEs"), and equal employment opportunities ("EEO") for minority group members and women in the performance of EFC contracts as well as contracts that receive financial assistance through EFC's various programs.

More about MWBE/DBE/EEO

The goal of the Service-Disabled Veteran-Owned Business Act is to encourage and support eligible SDVOBs to play a greater role in the state's economy by increasing their participation in New York State's contracting opportunities. 


Applicable only if the applicant is seeking either Clean Water or Drinking Water SRF Financing.

The utilization of iron and steel products that are produced in the United States is required for construction, alteration, maintenance, or repair of public water systems or treatment works funded wholly or in part by SRF financial assistance. 


Applicable only if the applicant is seeking either Clean Water or Drinking Water SRF Financing.

Requirements regarding prevailing wages, hours of work, and rates of pay are required for contracts in excess of $2,000 and are funded wholly or in part by SRF financial assistance.