Information Classification: Confidential Presented by Damon Weiss, PE, June 2015 GREEN INFRASTRUCTURE PAY-FOR-SUCCESS PARTNERSHIP Leveraging Private Capital for Public Infrastructure and Community Benefit In Partnership with:

Green Infrastructure Provides Multiple Benefits CHALLENGE: OUR FAILING SEWERS CHALLENGE: URBAN RENEWAL CHALLENGE: CLEAN WATER REGULATIONS CHALLENGE: WATER UNCERTAINTY

Information Classification: Confidential BARRIERS TO GI ADOPTION So… Why Do We Spend Money on Grey, Instead of Green? No Control of Land Beyond Utility Right-of-Way Uncertainty about long-term performance. Uncertainty about long-term maintenance and costs Who should and can pay for Green? Simple Truth: Sewer authorities do not have it in their charter or expertise to provide solutions with secondary environmental or social outcomes, beyond basic infrastructure and narrow, end-of-pipe water quality.

Information Classification: Confidential PAY-FOR-SUCCESS ADDRESSES BARRIERS Land Control and Ownership Performance Uncertainty Who Pays for Green? Maintenance and Stewardship Mismatch in Mission / Expertise Financing is Outcome-Based, Not Project-Based

Information Classification: Confidential Government and Payers Other Sewer Authorities Under Consent Decree Other Sewer Authorities Under Consent Decree DESIRED OUTCOMES Reduce wet weather sewer flows Reduce treatment plant energy use Reduce potable water use Improve water quality Reduce short-term and long-term costs VALUE PROPOSITION FOR SEWER AUTHORITIES Other Local, State and Federal Government Agencies VALUE PROPOSITION FOR LOCAL GOVERNMENT Improve water quality Repurpose vacant lands Reduce floods Reduce energy Increase Property Value and Strengthen Businesses Workforce Development VALUE PROPOSITION FOR BUSINESS AND INDUSTRY Reduce floods Reduce energy Increase Property Value and Retail Workforce Development Improve air quality Reduce carbon footprint Promote active lifestyles Hospital Systems Retail Businesses Industry Other Businesses and Individuals VALUE PROPOSITION FOR FOUNDATIONS Positive Program-Related Outcomes Outcomes from Non-Profit Partners and Grantees Positive Mission-Based Outcomes Other Foundations

Information Classification: Confidential EVALUATING PAY-FOR-SUCCESS OPPORTUNITY 1. Evaluate Watersheds 2. Valuate Cost of Planned Infrastructure 3. Identify Added Payors 4. Evaluate Cost Savings Potential 5. Evaluate Opportunity at the Local Level GOAL: Maximize Potential for Savings GOAL: PFS Costs Must Not Exceed Planned GOAL: 5-10% Additional Payor Support GOAL: 5-10% Cost Savings by Scaling and Collaboration GOAL: 3-5% Additional Payors or Cost Savings Grey-First Option (~$2 B) Target: 90% Overflow Reduction PFS Pilot Help Fund the Gap Through PFS Coalition Building Market Potential 70% Overflow Reduction