Meeting TMDL Requirements in Maryland through Alternative Financing. Presented by: Dale Lehman, PE, CFM March 26, 2014

Transcription

1 Meeting TMDL Requirements in Maryland through Alternative Financing Presented by: Dale Lehman, PE, CFM March 26, 2014

2 Chesapeake Bay Visible Sediment Plumes

3 Regulatory Framework for Water Quality in Maryland National Pollutant Discharge Elimination System (NPDES) Municipal Separate Storm Sewer System (MS4) Permit Chesapeake Bay Total Maximum Daily Load issued by EPA in December 2010 Significant reduction in Nitrogen, Phosporus, and Sediment loads Water quality treatment of 20% of existing developed areas Deadlines are looming : 60% reduction by 2017; 100%by 2025 Meeting TMDL requirements is a stated requirement of communities NPDES MS4 permit Non-compliance with requirements is a Clean Water Act Violation Source:

4 Chesapeake Bay Watershed Largest of 130 U.S. estuaries 64,000 square miles and 150 major rivers Encompasses portions of six states and DC 16 million residents in proximity to Bay Developed area with varied land uses Multiple ecosystem stressors First large-scale ecosystem restoration 4

5 Regulatory Framework for Water Quality in Maryland Map of Maryland showing communities with NPDES permits that will have Chesapeake Bay TMDL pollutant reduction requirements Requires billions of dollars for communities to comply with Chesapeake Bay TMDL requirements

6 How Can Communities Afford to Comply? Capital Improvement Program funding increases through increased bond sales Grants/loans through organizations such as Chesapeake Bay Trust Cost Share programs Volunteer efforts, in-kind services exchange Create a designated funding stream through a stormwater utility, user fee, etc. Alternative Financing Opportunities For large municipalities shown on previous map, Maryland House Bill required Counties to impose a mandatory fee to fund Chesapeake Bay restoration efforts.

7 Prince George s County TMDL Estimates Bay TMDL Goals 2015 Load Reductions TN 178,421 lbs./yr. TP 32,249 lbs./yr Retrofit Target 8,000 ac Retrofit Total Goal 15,469 ac. Estimated Total Cost $1.2 Billion Capital Projects (County) $828,236,000 Capital Projects (Municipal) $161,076,000 Maintenance (County) $101,981,000 Maintenance (Municipal) $20,722,000 Operations $44,763,000 TOTALS (FY13 FY25) $1,156,778,000 Prince George s County Population 881, Square Miles (Source: US EPA Faster, Greener, Cheaper Series, January 13, 2014)

8 Prince George s County Public Private Partnership for Urban Stormwater Leverage Private Financing Risk Transfer Significant Cost Saving County staffing 40% cost savings (planning / design / build / operate Expect additional savings resulting from Private sector efficiencies Procurement Economic Development (Source: US EPA Faster, Greener, Cheaper Series, January 13, 2014)

9 P3 Defined When we refer to PPP/AFP, what does that mean? P3 = Public Private Partnership AFP = Alternative Finance and Procurement Defined by Prince George s County as an innovative involvement of the private sector through a contractual agreement between a public agency and a private sector entity that allows for the private sector participation in the financing, planning, design, construction, operation, maintenance, rehabilitation and replacement of urban retrofit facilities.

10 Common PPP/AFP Structures Design Bid Build Private Contract Fee Services Design Build Design Build Operate Transfer Availability Payment Structures Revenue Concessions TRADITIONAL METHODS MODERN METHODS CONTEMPORARY METHODS MAIN TYPES OF AFP/PPP: BOO Build/Own/Operate BOM Build/Operate/Maintain BOT Build/Operate/Transfer LTLA Long Term Lease Agreement DBFM Design/Build/Finance/Maintain (availability payments) DBFOM Design/Build/Finance/Operate & Maintain OMCF Operations & Maintenance Contract Fee PBC Public Benefit Corporation

11 Prince George s County Stated P3 Benefits County initiative to create jobs and support local small and MBE business capacity P3 Retrofit Program recognized as an engine for sustainable jobs creation and business growth Effective avenue for implementing Green Infrastructure Practices There is tremendous opportunity for Public Private Partnerships (P3s) that focus on cleaning up stormwater pollution to have a positive impact on Maryland's environment and economy, said MDE Secretary Robert Summers...along with the environmental benefits of cleaning up our streams, rivers, reservoirs and Chesapeake Bay, employing P3s to control stormwater pollution revitalizes our communities and creates jobs for current and future citizens.

12 The P3 Model Encourages Green Infrastructure Solutions Traditional approaches to treating stormwater runoff have had insufficient results Growing local mandates for governments to accelerate implementation of stormwater control measures Many communities are opting for more affordable Green Infrastructure (GI) practices, designed to treat & prevent runoff pollution, while assisting with flood management, water demand, urban heat island impacts, along with providing multiple community benefits (SOURCE US EPA Faster, Greener, Cheaper Series, January 13, 2014)

13 The P3 Model Program for Prince George s County Program Goal: achieve compliance with the NPDES TMDL requirements The stated result is to provide water quality treatment of 2000 acres of untreated impervious area by providing treatment for 1 inch of runoff to achieve pollutant reductions: 50 percent nitrogen 40 percent phosphorus, and 80 percent sediment The County enters into a 30-year agreement with the P3 Entity to provide a long term effort to restore water quality of urban waterways in the County The agreement seeks to maximize risk transfer to the private sector to leverage financial and technical benefits while ensuring program sucess The County expects that $80 million in long term financing is required to achieve program goals The scope of the agreement includes all phases of project activity: - Design - Build - Finance - Operate - Maintain

14 Green Infrastructure (GI) Natural and managed green areas in both urban and rural settings Strategic connection of open green areas Treats rainwater as a resource Reduces runoff for smaller storms Transforms gray infrastructure to green by restoring watersheds to slow and store water Provides multiple benefits

15 Green Alternatives Green streets and alleys Bioretention Rain barrels Rain gardens Conservation landscaping Tree planting Tree boxes Permeable paving Rooftop disconnection

16 Prince George s P3 Progress Selected P3 approach for Chesapeake Bay TMDL compliance Implemented Stormwater Fee Structure per House Bill 987 Selected Preferred P3 Consultant through rigorous RFP process Preferred Consultant and County established committees to develop P3 procedures and protocol: - Engineering (design, permitting, construction aspects) - Legal (details of partnership) - Finance (funding and financing - Community Outreach (jobs, outreach, opportunities) Partnering with State of Maryland and the EPA for alternative water quality measures (e.g., Green Infrastructure)

17 Questions?