Senator Charles E. Schumer

FOR IMMEDIATE RELEASE: July 11, 2012

SCHUMER REVEALS 60 UPSTATE COMMUNITIES CURRENTLY INELIGIBLE FOR USDA RURAL DEVELOPMENT PROGRAMS COULD GAIN ACCESS THROUGH SENATE FARM BILL—CALLS ON HOUSE TO FOLLOW SUIT TO PROVIDE NEW FUNDING OPPORTUNITIES FOR WATER, SEWER & OTHER NEEDED PROJECTS

Schumer Pushes Senate-Passed Provision to Allow More Rural Communities to Apply for USDA Rural Development Loans & Grants, Which Totaled Over $2.1 Billion for NYS From 2004 to 2011 – Waste Water Programs & Community Facilities Grants Are a Boon for Infrastructure & Construction Jobs Upstate

Schumer Reveals List of At Least 60 New Rural Communities Now Eligible to Apply for Rural Development Funding, According to USDA – Urges House to Include Same Plan

Schumer: Proposal Could Spur Game-Changing Infrastructure Projects in More NY Rural Communities

Today, U.S. Senator Charles E. Schumer urged support for time-sensitive legislation that could make at least 60 new rural communities in Upstate New York eligible to apply for certain U.S. Department of Agriculture (USDA) Rural Development investments. Schumer called on the House of Representatives to adopt language that passed the Senate, on a significant bipartisan basis, which could provide a new source of funding for water, sewer and community facilities projects like hospitals, fire protection, public safety and schools across the Hudson Valley and Upstate New York. On the call, Schumer revealed a list of at least 60 new communities, according to the USDA, that are currently ineligible for USDA Rural Development programs that could now apply and compete for this game-changing funding source through the provision in the Senate Farm Bill.

Schumer highlighted that in Upstate New York, the Senate Farm Bill would most significantly expand eligibility for much needed infrastructure projects, like waste water and Community Facilities programs which create jobs, promote economic development and protect public health. The House is currently considering a Farm Bill in Committee that does not contain language to expand the definition of a rural community, and Schumer is urging that they adopt the Senate-passed provision as the process moves forward.

“The Senate Farm Bill opens the spigot for game-changing water-sewer projects and paves the way for funding job-creating and economy-boosting community infrastructure projects by helping at least 60 new rural communities across the Hudson Valley and Upstate New York gain access to the support of Rural Development Programs,” said Schumer. “That is why I’m calling on the House of Representatives, which is considering the Farm Bill in Committee this week, to adopt the Senate-passed provision and ensure that New York’s rural communities can be made eligible for the USDA’s rural investment programs. New York State has received billions of dollars in USDA rural development funding in recent years, demonstrating the critical role these programs play in Upstate New York. I’m thrilled that more struggling towns and rural communities can now apply and compete for these loans and grants, which are a boon for infrastructure, the local economy and construction jobs. Investing in water systems that improve water quality for residents, as well as community programs in hospitals, fire protection, public safety, and schools is critical to New York communities, andwill help enhance quality of life for residents and lead the way for further economic development in the region.”

Under current law, each Rural Development program has different definitions of what “rural” means in terms of eligibility. The Senate bill creates a single definition of rural for all USDA programs, specifically a city or town with fewer than 50,000 people, and which is not contiguous or adjacent to a city or town with more than 50,000. The bill also gives USDA greater authority to make common sense decisions as to which communities are rural in character, and therefore eligible to compete for USDA funding. Newly eligible communities still must apply, as is typical procedure under the USDA RD program. Schumer noted that because of this increased USDA flexibility, these 60 communities are the bare minimum of those that could be newly eligible.

Schumer was joined on the call by Town of Arcadia Supervisor Dick Colacino and Town of Wawarsing Supervisor Scott Carlsen, both from newly eligible municipalities that stand to benefit from potential new funding source, as he launched his push for the House of Representatives to swiftly take up and pass the Senate-passed Farm Bill. Schumer highlighted the massive economic development potential that expanding eligibility for USDA Rural Development funding would have for scores of Upstate New York communities, by opening a new funding source for water, sewer and community facilities grant programs. The expanded definition of a rural community or town would now include those with fewer than 50,000 people and that are not contiguous or adjacent to a city or town with more than 50,000. Currently, the waste water program has a population limit of 10,000, the Community Facilities program has a limit of 20,000.

The Senate-passed Farm Bill legislation also provides more flexibility for the USDA to determine if an area is ‘rural in character’ even if it doesn’t meet the eligibility requirements, which would expand potential eligibility even further. For that reason, Schumer encouraged rural communities to contact USDA to determine their eligibility, as this expanded definition and flexibility can benefit rural Upstate New York communities. In addition to the 60 communities now eligible to apply and compete for USDA rural development funding, the Senate Farm Bill includes criteria that prevents any community that could lose eligibility under the new definition from being removed from the program for at least three years, at which point they would only be removed should USDA take away their eligibility because they are no longer rural. Schumer noted that expanding eligibility to more rural communities is the first important step to supporting job-creating infrastructure projects in New York’s rural communities, and vowed to fight for increased funding to New York State in future years. For this reason, Schumer supported an amendment that passed as part of the Senate bill to make an extra $50 million available for backlogged sewer and water projects.

Schumer described two sections of the Rural Community Programs from which newly eligible Upstate New York towns and cities could stand to benefit:

Water and Waste Disposal Loans, Loan Guarantees, and Grants

The water and waste disposal loans, loan guarantees, and grants program is administered to improve the quality of life and promote economic development in rural America. Loans, grants, and loan guarantees are made to develop drinking water and wastewater systems, including solid waste disposal and storm drainage, in rural areas and in cities and towns. In 2011, the Rural Development water and environmental programs obligated 50 loan and grants for more than $42 million in New York State and leveraged over $27 million for a total investment of $70 million. Some of those notable projects included a wastewater treatment plant in the Village of Cayuga, the Town of Barre’s water district # 5 project, and the construction of the East Side pumping station in the Town of Webb.

Community Facilities Loans, Loan Guarantees, and Grants

Community Programs provide loans, grants and loan guarantees for projects to develop essential community facilities for public use in rural areas. This can include hospitals, fire protection, public safety, libraries, schools, day care centers as well as many other community?based initiatives. Loans, grants, and loan guarantees are available to assist in the development of essential community facilities in rural areas and towns, and are available to public entities such as municipalities, counties, and special?purpose districts, as well as non?profit corporations and tribal governments. In 2011, Rural Development Community Facilities programs obligated 38 loans and grants for more than $13.7 million and leveraged $5.6 million for a total investment of over $19 million in New York funding. Schumer highlighted that some of 2011’s most notable community facilities projects, including the construction of the Carthage Free Library, the purchase of Mercy Flight helicopters, and purchase of Keuka College countywide computer equipment.

Schumer and Town of Arcadia Supervisor Dick Colacino highlighted an example of the Senate Farm Bill’s potential to spur game-changing development projects in rural communities. In 2009, the Town of Arcadia was awarded a USDA $701,000 grant and $760,000 loan through the USDA Water and Environmental Program (WEP) to extend drinking water in their town through Water District #12. However, before Arcadia could obtain the money, the USDA changed their interpretation in 2010 of what constitutes an eligible “rural” town. The stumbling block was that in order to be eligible for this grant and loan program after 2010, the town had to have a population less than 10,000. But, because the USDA definition did not differentiate between the populations of the Town of Arcadia, 5,500, and the Village of Newark, 9,300, located within the town, Arcadia was considered to have a population of over 14,000 making it ineligible. The Village of Newark already has municipal water while municipal water is only available in portions of the Town of Arcadia. While water district #12 would be located entirely in the Town of Arcadia outside the Village of Newark, the USDA reversed course, deemed Arcadia ineligible in 2010 and withdrew its 2009 preliminary eligibility grant/loan determination. Without municipal water, Arcadia residents in Water District #12 are left to contend with well water high in iron and bacteria that is damaging to appliances and water heaters.

Schumer also highlighted that the Senate Farm bill fix raises the threshold to 50,000 residents, and if the House adopts the same provision, the Town of Arcadia could now apply and proceed with their water system build out. One resident wrote to the Town last year to say he is facing $18,000 upgrades in water softeners and filtration systems unless his home can get municipal water soon while another family wrote they have already made costly upgrades after black iron bacteria sediment and rust damaged their bathroom fixtures, dishwasher, and washing machine.

Similarly, Schumer noted, in 2009, the Town of Wawarsing was looking to upgrade its water pipes and applied for USDA’s Water and Waste Disposal Grant Program. A few months after applying, Wawarsing received a Preliminary Eligibility Determination letter, which generally assures funding. From there, the town went to work laying the groundwork for the $4.6 million project, spending a moderate amount of money and significant staff resources in anticipation of approximately $2 million from the USDA.

At the end of 2009, the USDA reversed a long-standing tradition that allowed communities just above statutory population levels to apply for the program, making communities like Wawarsing that would have been eligible for funding for the program in previous years, suddenly ineligible. Under the new eligibility in the Senate Bill, Wawarsing is once again eligible to apply and compete for funding through the Rural Development program.

Senator Schumer revealed the list below of at least 60 towns that could gain access to Rural Development funding, according to the USDA:

COUNTY	TOWN
Clinton	Plattsburgh
Franklin	Malone (town)
Greene	Catskill (town)
Saratoga	Town of Milton
Saratoga	Town of Moreau
Saratoga	Town of Wilton
Schenectady	Glenville
Warren	Town of Queensbury
Washington	Kingsbury (town)
Chautauqua	Dunkirk
Chautauqua	Pomfret
Erie	Evans
Niagara	Lockport
Orange	Blooming Grove
Orange	Chester
Orange	Cornwall
Orange	Goshen
Orange	Highlands
Orange	Monroe
Orange	Montgomery
Orange	New Windsor
Orange	Town of Newburgh
Orange	Wallkill
Orange	Warwick
Putnam	Kent
Sullivan	Fallsburg (town)
Sullivan	Mamakating (town)
Sullivan	Thompson (town)
Ulster	New Paltz(town)
Ulster	Saugerties(town)
Ulster	Shawangunk(town)
Ulster	Ulster (town)
Ulster	Wawarsing(town)
Westchester	Lewisboro
Westchester	New Castle
Westchester	North Castle
Ontario	Farmington
Wayne	Arcadia (town)
Broome	Chenango (town)
Broome	Union (town)
Broome	Vestal (town)
Chemung	Horseheads
Chemung	Southport
Steuben	Bath (town)
Tioga	Owego (town)
Tompkins	Town of Dryden
Tompkins	Town of Ithaca
Tompkins	Town of Lansing
Herkimer	German Flatts (town)
Jefferson	Fort Drum
Jefferson	Le Ray (town)
Madison	Sullivan (town)
Monroe	Ogden (town)
Monroe	Parma (town)
Monroe	Sweden (town)
Onondaga	Lysander
Onondaga	Van Buren
St. Lawrence	Canton (town)
St. Lawrence	Massena (town)
St. Lawrence	Potsdam (town)