Emerging Sources of Stormwater Funding

Transcription

1 Emerging Sources of Stormwater Funding SESWA - Creative Alternatives for Stormwater Funding Atlanta, Georgia April 23, 2010 Stacey Isaac Berahzer UNC Environmental Finance Center 1

2 Dedicated to enhancing the ability of governments and organizations to provide environmental programs and services in fair, effective and financially sustainable ways Serving EPA Region 4 2

3 Traditional Sources of Stormwater Funding General Fund (taxes, etc.) Grants **Loans?** Stormwater Utility Fees 3

4 A New Way to Look at Funding Water Quality Improvements Watersheds are the heart of the matter 4

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11 1 Challenges of Funding Watershed Protection Watersheds span multiple spatial and institutional scales

12 More Innovative Ways To Fund Stormwater Projects Have Been Done SPLOST SRF Loans Market Based Approaches Unprecedented or Revolutionary Methods 12

13 Methods that have been used more recently by relatively small numbers of stormwater programs 13

14 SPLOST - Tax Special Purpose Local Option Sales Tax 1% county sales tax (municipalities may get involved as well) Example: 5 SPLOSTs in Athens-Clarke County generates about $25 million per year 14

15 SRF - Expansion of use Encouraged 2007 Suggestions on innovative ways of using existing policy Beyond the traditional water treatment works First 20 years: $63 billion provided $60 billion to wastewater treatment $3 billion to Nonpoint Sources and Estuary Protection 15

16 SRF - Tapping its Untapped Potential green and sustainable water infrastructure They also include green infrastructure, such as green roofs, infiltration basins, curb cuts and landscaped swales, and wetland protection and restoration. Guarantees for green infrastructure and other innovative technology Real example: land acquisition services and the actual cost for the purchase of land or easements is also included in the scope of work 16

17 SRF ARRA (2009) Two important elements introduced with ARRA in 2009 Green Project Reserve Additional Subsidization 17

18 SRF - New Additional Subsidy Requirements (2010) 18

19 SRF - Maintained Green Project Reserve Requirements (2010) 19

20 SRF - What do these two things mean for your stormwater projects? 20

21 SRF - Many Stormwater Projects are Considered Green Porous pavement Bioretention Tree planting Green roofs/walls Water gardens, constructed wetlands Green streets Hydromodification Downspout disconnection Retrofit programs Green Infrastructure/Low Impact development stormwater projects Decentralized wastewater solutions Wetland restoration and constructed wetlands 21

22 SRF - Where will states target the additional subsidization? 22

23 SRF - Subsidization Criteria for CWSRF Programs All Same Subsidy Green-ness Regionalization MHI Water/Wastewater Rates Pop. Water quality problem Other Source: CIFA/UNC EFC Survey, March,

24 SRF - Interest Rate Criteria for CWSRF Programs All Same Subsidy Green-ness Regionalization MHI Water/Wastewater Rates Pop. Water quality problem Other Source: CIFA/UNC EFC Survey, March,

25 Green Project Reserve + Additional Subsidization = Better Financing Terms for Stormwater Projects 25

26 SRF - Where is your State in the Subsidization Design Process? (April 12, 2010) AL - Draft policy is under review FL - Policy already finalized GA - Policy already finalized KY - Draft policy is under review NC - Policy already finalized (CW) SC - Draft policy is under review 2

27 Market-based programs Ecosystem goods and services provided by healthy watersheds Water supplies for agricultural, industrial and urban-domestic uses Water filtration purification Flow regulation Flood control Erosion and sedimentation control Fisheries Timber and other forest products Recreation and tourism Habitat for biodiversity preservation Aesthetic enjoyment Climate stabilization Cultural, religious, inspiration values Source: Postel, Sandra and Barton Thompson, Watershed protection: Capturing the benefits of nature s water supply. Natural Resource Forum, 29, 2005,

28 Market-based programs Trading and offset programs Neuse, Tar-Pamlico and Jordan Lake Fiscal incentives Purchasing and transferring development rights Voluntary programs Payment for ecosystem services 2

29 User Fees Charged regularly to all customers: industrial, commercial and residential Customers bills relate to their consumption (usually) Utilities can develop rates based on their expected costs Example stormwater utility fees 29

30 Flush Fee: Chesapeake Bay Restoration Fund, MD Added $2.50/month flush fee to the utility bills of property owners of public sewer system AND septic tanks Public sewer customers $65 million/year (for WWTP upgrades) Septic tanks $12.6 million/year (for septic tank repair/cover crops) 30

31 Shifting from What s Been Done, to Unprecedented or Revolutionary 31

32 Southeastern Regional Water Quality Assistance Network USEPA Targeted Watershed Grant Program Ten communities throughout the southeast Multi-faceted capacity assistance Technical Financial Community Legal 32

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34 Raleigh, NC Interactive Tool 34

35 Questions? Stacey Isaac Berahzer Environmental Finance Center