Environmental Finance Center Financing Storm water (Watershed) Strategies with a “Community Quilt”

Environmental Finance Center When you think about funding sources for watershed activities, what sources come to mind?

Environmental Finance Center Usually, we think of public funding programs, like: State Revolving Loan Fund Section 319 funds TEA-21

Environmental Finance Center 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.

Environmental Finance Center · 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?

Environmental Finance Center Financing a watershed plan involves: Visioning Prioritizing Planning Cooperation Partnering Leveraging resources MONEY!

Environmental Finance Center What are the tools to build a watershed financing plan? ¶ Public funding through public programs · Private funding through funding techniques

Environmental Finance Center First Set of Tools: Public Funding through Federal and State programs

Environmental Finance Center Capital Programs such as: Environmental Quality Incentives Program (EQIP) Wetlands Reserve Program (WRP) Community Development Block Grants (CDBG) State Revolving Loan Program (SRF)

Environmental Finance Center Planning Programs such as: Agricultural Water Quality Cost-share programs Stewardship Incentive Program (SIP) Partners for Fish & Wildlife Environmental Justice through Pollution Prevention (EJP2)

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

Environmental Finance Center Funding for Maintenance of a project: Conservation Reserve Enhancement Program (CREP) Wildlife Habitat Incentives Program (WHIP) Woodland Incentive Program (WIP)

Environmental Finance Center 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

Environmental Finance Center 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

Environmental Finance Center 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

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

Environmental Finance Center Second Set of Tools: Accessing Private Funding through Financing techniques

Environmental Finance Center 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 Service Costs Contracts & Misc. Capital Improvement Costs Reserves Outside Revenues

Environmental Finance Center Nutrient Trading Strategies Moving funding from those who have it to those who need it

Environmental Finance Center Trading programs seek to achieve environmental goals in the most cost-effective manner possible through the use of market forces

Environmental Finance Center 4 Regulator sets ceiling on amount of pollution allowed for a whole group of polluters within a “bubble” 4 Permits issued to individual polluters within that bubble for their share of the total amount 4 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

Environmental Finance Center 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

Environmental Finance Center Agreements tied to Loans Home buyers and developers get low-interest loans for homes that are: 4 built within urban growth boundaries, designated growth areas, or areas where infrastructure already exists 4 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

Environmental Finance Center Storm water management utility What 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)

Environmental Finance Center The Community Quilt Concept of Financing a Watershed Plan

Environmental Finance Center “ Community quilt” concept of financing ¶ Federal, State and Local programs plus · Financing techniques such as : 4 Innovative rate structures 4 Public-private partnerships 4 Watershed fee districts

Environmental Finance Center Watershed  a mosaic of public, private and nonprofit land ownership and land uses.

Environmental Finance Center A Watershed Financing Plan: Uses the skills and strengths of stakeholders, in coordination, to realize goals and objectives

Environmental Finance Center Who are your stakeholders? Stakeholders include: Citizens, community groups Businesses and Industry Federal, State and Local governments Nonprofit organizations Colleges, Universities, Schools

Environmental Finance Center 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

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

Environmental Finance Center What’s going on in your watershed? 3 Wetlands? 3 Forest buffers? 3 Agriculture? 3 Residential, commercial and industrial? 3 Drinking water needs? 3 Brownfields? 3 Environmental justice issues? 3 Economic development needs? 3 Habitat opportunities?

Environmental Finance Center A Holistic approach... Using a broader collection of terms can broaden the sources of funding for your watershed plan

Environmental Finance Center Broad-based sources of funding = broad-based support for your plan

Environmental Finance Center 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.

Environmental Finance Center We want people to begin to think “outside the box” on issues related to finance

Environmental Finance Center University System of Maryland x-26