Governor Kathy Hochul today signed into law legislation making it easier and more affordable for New Yorkers to upgrade to advanced septic systems that significantly reduce water pollution, protect public health, and improve water quality. The Governor also announced a $30 million investment for Round 5 of the successful State Septic System Replacement Fund Program to help homeowners upgrade or replace failing septic systems, particularly those impacting water bodies designated as priority areas.

“Access to clean water is a basic right, and communities from Montauk to Buffalo deserve safe, reliable water infrastructure,” Governor Hochul said. “Long Island’s water resources are vital to the people who live there, to the local economy, and to the plants and animals that call the island home. I am committed to protecting the health of all New Yorkers, and this bill is a promise to future generations that we will keep building a more resilient, sustainable state while ensuring clean water for all.”

The $30 million in grants announced today are awarded by the New York State Environmental Facilities Corporation, in coordination with the Departments of Health and Environmental Conservation, and are part of the State’s nation-leading commitment to modernize aging water and sewer systems. New York State will provide funds to counties to reimburse eligible property owners for a portion of the cost of replacing cesspools and septic systems and installing more environmentally effective systems, like enhanced septic systems.

Under the new law, eligible property owners can be reimbursed 50 percent of eligible costs up to $10,000 for the installation of a conventional system, or up to 75 percent of eligible costs up to $25,000 for the installation of an enhanced septic system, to help make these more enhanced systems equal or even more affordable than the regular systems. Counties may also set graduated incentive reimbursement rates for septic system projects to maximize program participation and pollution reduction goals.

Outdated or failing septic systems are a significant contributor to nutrient pollution in New York, fueling harmful algal blooms (HABs) and negatively impacting water quality. Investing in an enhanced septic system, though often more costly than conventional wastewater treatment, is crucial to help improve water quality on Long Island. These advanced systems are specifically designed to significantly reduce nitrogen, helping to also mitigate the environmental and public health impacts of phosphorus and per- and polyfluoroalkyl (PFAS) substances, ultimately improving water quality and combating HABs.

Today’s bill signing in Suffolk County builds on the Governor’s record investments in clean water. These investments are part of New York’s broader strategy to maximize the impact of state and federal infrastructure dollars, ensuring every region benefits from cleaner water, safer systems, and long-term sustainability. A total of two thirds – or $20 million – of the funds announced today will go directly to support projects in Suffolk County, helping to safeguard the region’s sole source aquifer and other waterbodies.

New York State Department of Environmental Conservation Commissioner Amanda Lefton said, “Governor Hochul’s record of support for protecting Long Island water quality is indisputable and continues to build with today’s investments. Replacement of inadequate septic systems prevents pollution from entering our sensitive waterways and creates a lasting improvement to water quality throughout the state. The new law increasing the affordability of enhanced septic replacements and the new $30 million in funding will incentivize a common-sense and effective approach to reducing contamination and protecting New York’s water quality.”

New York State Environmental Facilities Corporation President and CEO Maureen A. Coleman said, “Long Island’s water quality is vital—not just for the environment, but for public health, improved quality of life, and thriving local economies. That’s why EFC has committed over $1 billion in grants and low-interest financing the last two years to help Long Island modernize its water infrastructure and protect its sole-source aquifer. With this new $30 million investment and through Governor Hochul’s leadership, we’re making it easier for homeowners and businesses statewide to replace aging septic systems and reduce harmful pollution. This is a smart, local solution with long-term benefits.”

New York State Health Commissioner Dr. James McDonald said, “All New Yorkers deserve the peace of mind that the water they have access to is safe and free from pollutants. Today’s $30 million investment into the State Septic System Replacement Fund Program, paired with the legislation signed by Governor Hochul, reduces the financial burden of making these important infrastructure upgrades that will ensure more communities are protected from harmful water contamination. This is a commonsense investment in the health of all New Yorkers.”

State Senator Pete Harckham said, “Septic system upgrades across New York are essential for protecting our waterways, public health, and the environment—but they can be costly. This new law, which will reimburse installation of new systems, including enhanced treatment units, will allow homeowners to make improvements without breaking the bank while safeguarding nearby aquifers and other fragile drinking water resources. Thank you, Governor Hochul, New York State Department of Environmental Conservation and bill sponsor Assemblymember Rececca Kassay, for their leadership on this initiative.”

Assemblymember Rebecca Kassay said, “Most New Yorkers want to do their part to protect our environment, but sometimes budgetary restrictions prevent families from following through on those efforts. Outdated or failing septic systems are a major source of nutrient pollution across New York, especially on Long Island, contributing to harmful algal blooms, fish kills, and water quality degradation. While advanced septic technologies are significantly more effective at treating wastewater, their cost often puts them out of reach for many families—unless supported by state funding. I am proud to work with the Governor and our colleagues to deliver this solution that not only further protects our water, but also addresses Long Island’s affordability issues.”

Suffolk County Executive Ed Romaine said, “The septic Grant will play a critical role in Suffolk County efforts to protect our water, our bases and estuaries. I appreciate New York State’s efforts to help us achieve this goal.”

Suffolk County Legislature Minority Leader Jason Richberg said, “This bill is a commonsense investment in our communities’ health and resilience that will put Suffolk County on the cutting edge of environmental protection and economic opportunity. Aging septic systems are one of the biggest threats to Long Island’s environment, and cleaner, more efficient systems mean fewer pollutants leaching into our groundwater and waterways. Every dollar spent here delivers cleaner water for our families, stronger support for local businesses, and real savings on long-term maintenance. In my district, the high costs associated with removing outdated septic tanks often deter homeowners and small businesses from upgrading to enhanced systems. Boosting reimbursement levels will help lift that financial barrier and empower working families and Main Street entrepreneurs to take control of their waste management. It’s not just about septic tanks—it’s about safeguarding our quality of life, looking out for our small businesses, and honoring our responsibility to future generations.”

Citizens Campaign for the Environment Executive Director Adrienne Esposito said, “This critical septic bill is the solution to sewage pollution in our bays and harbors. Public change happens through education and incentivizing change. This important legislation will incentivize the public to replace old, antiquated septic and cesspool systems with new systems that treat sewage! This program is already a success in Nassau and Suffolk counties, now we can amplify that success even more. We are thrilled that Governor Hochul is signing this crucial clean water legislation into law and thank her for her continuing commitment to clean water. CCE also thanks Senator Harckham and Assemblywoman Rebecca Kassay for getting this bill passed this year.”

The Nature Conservancy’s New York Executive Director Bill Ulfelder said, “The Nature Conservancy commends Governor Hochul for signing legislation to make clean water septic systems affordable for homeowners and for providing critical funding to clean water projects. The State’s expanded Septic System Replacement Fund will go even further in Suffolk County thanks to local funding for water infrastructure projects, overwhelmingly approved by Suffolk County voters last year. Essential to public health, water infrastructure projects safeguard clean drinking water, enhance quality of life, and prevent pollution from reaching our bays, harbors, lakes, and rivers. The Nature Conservancy thanks bill sponsors Senator Harckham and Assemblymember Kassay for championing the program’s expansion and to Governor Hochul and the Environmental Facilities Corporation for advancing this important grant program.”

New York League of Conservation Voters President Julie Tighe said, “Everyone deserves clean water. Aging septic systems and cesspools are contaminating groundwater and waterways, especially on Long Island — the expansion of the Septic System Replacement Fund coupled with the Governor’s $30 million investment is a major win for public health. We applaud Governor Hochul for signing this critical measure as well as Senator Harckham and Assemblymember Kassay for their leadership in advancing it through the Legislature.”

In 2017, New York State launched a comprehensive, multi-year clean water infrastructure initiative to improve water quality and to assist homeowners with the cost to replace aging septic systems in targeted communities across New York. This rebate program was created to give homeowners and small businesses an incentive to replace and upgrade aging septic systems and eliminate cesspools that can harm water quality and threaten public health by releasing pathogens or nutrient pollution such as nitrogen and phosphorus.

This includes areas with existing or potential public water supply intakes, as well as those already experiencing water quality impairments directly attributable to failing septic systems. To ensure the most efficient and impactful allocation of funds DEC and DOH along with participating counties collaborate closely to identify and prioritize eligible waterbodies. This coordinated approach maximizes the program’s effectiveness in protecting and improving New York’s water resources.

A list of eligible counties and water bodies for the current round (Round 4) is available on EFC’s website here. Eligible waterbodies for Round 5 will be posted once counties have been notified of their funding amount. Homeowners and businesses should reach out to their county representative listed on EFC’s website to determine if their properties are eligible.

Long Island is almost entirely dependent on a sole-source aquifer and helping water providers protect this valuable and unique groundwater source is vital to ensuring millions of people in Nassau and Suffolk counties have clean water to drink. The announcements today complement the recently announced Long Island Watershed Program’s efforts to expand watershed protection on the island. The Long Island Watershed Action Agenda is a transparent blueprint aimed to achieve water quality improvements, aquatic habitat conservations, groundwater protection, and the public engagement necessary to ensure success in protecting the surface, coastal, and ground waters of Nassau and Suffolk counties.

New York’s Commitment to Water Quality

New York State continues to increase its nation-leading investments in water infrastructure, including more than $2.2 billion in financial assistance from EFC for local water infrastructure projects in State Fiscal Year 2024 alone. The next round of EFC’s Water Infrastructure Improvement and Intermunicipal Water Infrastructure Grants is now open at www.efc.ny.gov. Governor Hochul has announced $325 million for this round.

With $500 million allocated for clean water infrastructure in the FY26 Enacted Budget announced by Governor Hochul, New York will have invested a total of $6 billion in water infrastructure between 2017 and this year. Any community needing assistance with water infrastructure projects is encouraged to contact EFC. New Yorkers can track projects benefiting from EFC’s investments using the interactive project impact dashboard.