environmental finance center financing storm water (watershed) strategies with a “community...

Environmental Finance Center

Financing Storm water (Watershed) Strategies with a

“Community Quilt”


When you think about funding sources

for watershed activities, what sources come to mind?


Usually, we think of public funding programs, like:

State Revolving Loan Fund Section 319 funds TEA-21


Two “Take-home” messages for Today

There has never been, and will never be, enough public funding to

get the job done.On the other hand, there is plenty of

money available overall, accessed primarily through private sources.


There is too much financing information available to make sense of it all~you will need a

framework within which to work.

How about a watershed framework?How about a watershed plan?


Financing a watershed plan involves:

Visioning Prioritizing Planning Cooperation Partnering Leveraging resources MONEY!


What are the tools to build a watershed financing plan?

Public funding through public programs

Private funding through funding techniques


First Set of Tools:

Public Funding through

Federal and State programs


Capital Programs such as: Environmental Quality Incentives

Program (EQIP) Wetlands Reserve Program (WRP) Community Development Block

Grants (CDBG) State Revolving Loan Program (SRF)


Planning Programs such as: Agricultural Water Quality Cost-

share programs Stewardship Incentive Program

(SIP) Partners for Fish & Wildlife Environmental Justice through

Pollution Prevention (EJP2)


Education Programs: Environmental Education grants(EPA) Coastal Zone Management Program EJP2


Funding for Maintenance of a project:

Conservation Reserve Enhancement Program (CREP)

Wildlife Habitat Incentives Program (WHIP)

Woodland Incentive Program (WIP)


Agricultural BMP programs: State Revolving Fund (SRF) Conservation Reserve Program (CRP) Environmental Quality Incentives

Program (EQIP) Wildlife Habitat Incentives

Program (WHIP) State and Local Efforts


Urban Storm water Programs: Community Development Block Grants Env. Justice through Pollution

Prevention grants (EJP2) State Revolving Loan Funds (SRF) Sustainable Development Challenge

Grants Local Programs


Wetlands programs: Partners for Fish & Wildlife (USF&WS) Wetland Reserve Program (USDA) North American Wetlands Conservation

Act Five Star Restoration Program (USEPA) State and Local Mitigation Funds


Riparian Forest Buffer Programs: Stewardship Incentive Program (NRCS) Forestry Incentives Program (NRCS) Conservation Reserve Program State Forestry Programs


Second Set of Tools:

Accessing Private Funding through

Financing techniques


Water and Waste Water Rate Structures

Free up local funds by getting your water and sewer utilities to be self-

supporting

The Business of Managing a Water System Enterprise

Self-Perpetuating/Self-Supporting Entity Total Costs must = Total Charges/Revenues

Operating Costs

Debt ServiceCostsContracts

& Misc.Capital

ImprovementCosts

Reserves

Outside Revenues


Nutrient Trading Strategies

Moving funding from those who have it to those who need it


Trading programs seek to achieve environmental goals in the most

cost-effective

manner possible through the use of market forces


Regulator sets ceiling on amount of pollution allowed for a whole group of polluters within a “bubble”

Permits issued to individual polluters within that bubble for their share of the total amount

Polluters can then buy or sell pollution discharge allocations so that those who can clean up cheaply can do so and then make money by selling spare pollution credits to those for whom cleaning up would be more expensive


Point/non-point source trading is the bubble concept applied to a watershed.

Through trading, WWTP and industrial

sources (point) have the option of bringing

agricultural and urban sources (non-point)

into compliance rather than imposing

further controls (costs) at point sources


Agreements tied to Loans

Home buyers and developers get low-interest loans for homes that are:

built within urban growth boundaries, designated growth areas, or areas where infrastructure already exists

have environmentally sensitive features, such as a smaller footprint, more open space/undisturbed land, retention of forest buffers

utilize “green building” techniques, such as locally produced,

recycled materials; energy-efficient appliances; Low Impact Development


Storm water management utilityWhat is it? An independent government entity which:

Finances services for a specific geographic area

Focuses the costs of enhanced services on the beneficiaries of those

services

Has the power to levy taxes, fees and special assessments

Can issue debt independent of state or county government

Can tap into the higher future value of property as a means of

funding the capital improvements that will create the higher values

(TIF)


The Community Quilt Concept of Financing a

Watershed Plan


“Community quilt” concept of financing

Federal, State and Local programs plus Financing techniques such as :

Innovative rate structures Public-private partnerships

Watershed fee districts


Watershed

a mosaic of public, private and nonprofit land ownership and

land uses.


A Watershed Financing Plan:

Uses the skills and strengths of stakeholders, in coordination, to realize goals and objectives


Who are your stakeholders?

Stakeholders include: Citizens, community groups Businesses and Industry Federal, State and Local governments Nonprofit organizations Colleges, Universities, Schools


How do these different stakeholders contribute to a watershed financing plan?

Citizens, Community Groups

Rain gardens and native species landscaping at home and office

Replacement of impervious surfaces at home and office

Reduction or elimination of pesticide and insecticide use at home and office

Business and Industry

Environmental Audits Partner with other businesses to

reuse waste streams Native species landscaping Tree planting on behalf of employees Promoting car-pooling, environmental

awareness at home and office

Federal, State and Local Governments

Tax credits Agricultural, Suburban, Forestry best

management practices Pollution control technologies In-fill development Brownfields redevelopment Stormwater management techniques

Federal, State and Local Governments Management agreements and

Recognition programs Native species landscaping Car pooling Erosion control efforts

Revolving funds Small business pollution control technologies Septic system repairs Agricultural best management practices


Creating the Quilt: Identify land owners, land uses and stakeholders within a watershed to create a patchwork of funding opportunities.


What’s going on in your watershed?

Wetlands? Forest buffers? Agriculture? Residential,

commercial and industrial?

Drinking water needs?

Brownfields? Environmental

justice issues? Economic

development needs? Habitat

opportunities?


A Holistic approach...

Using a broader collection of terms can broaden the

sources of funding for your watershed plan


Broad-based sources of funding =

broad-based support for your plan


Even if one innovative financing idea is not

appropriate for your

community, it may

spark ideas and

discussion about priorities

and needs and other ways of addressing issues.


We want people to begin to think

“outside the box” on issues related to

finance


University System of Maryland

301-403-4220 [email protected]

environmental finance center financing storm water (watershed) strategies with a “community...

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state programs

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watershed financing

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