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Collaborative Approaches from a Financing Perspective Addressing - - PowerPoint PPT Presentation

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Collaborative Approaches from a Financing Perspective Addressing Stormwater through Green Infrastructure in Blair County, PA January 20 th , 2015 Prepared by: Jennifer Cotting & Monica Billig University of Maryland Environmental Finance

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Collaborative Approaches from a Financing Perspective

Addressing Stormwater through Green Infrastructure in Blair County, PA

January 20th, 2015

Prepared by: Jennifer Cotting & Monica Billig University of Maryland Environmental Finance Center www.efc.umd.edu

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Session Overview

1.

EFC Background

2.

Funding versus Financing

3.

Elements of a Successful Financing Strategy

4.

A Regional Approach from a Financing Perspective

5.

Case Studies on Regionalization

6.

Q&A

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The Environmental Finance Center

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The EFC: Who are we?

Applying a financing lens across sectors . . .

  • Technical Assistance
  • Stormwater
  • Green Infrastructure
  • Agriculture
  • Air Quality
  • Climate & Energy
  • Sustainability
  • Program & Policy Analysis
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EFC’s Stormwater Financing Manual

  • Created as a resource and framework

that mirrors our process when working with communities

  • Reference guide for communities who

have capacity/political will to take this up on their own

  • Each community is different but there is

a framework for implementation

After many years of working with communities, EFC developed a manual to outline how locals can effectively implement and sustainably finance stormwater and green infrastructure programs.

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FUNDING VERSUS FINANCING

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Financing: Coming to Terms

  • Funding: finite resources
  • Financing: managing fiscal resources

Goal: increase return on investment

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Financing Truths

  • It is cheaper to protect

than to restore

  • Grants will not, never

have been, and never will be enough

Bullandbearessentials.com

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Why does financing matter?

  • Provides backbone for

implementation plan

  • Resonates with decision-

makers

  • Lends credibility with

funders

  • Your plan cannot become a

reality with out it!

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Green Infrastructure: EFC’s Point of View

A resource management approach with the capacity to:

  • Reduce implementation costs
  • Deliver benefits that serve multiple community priorities
  • Engage the private sector
  • Spur behavior change through the marketplace
  • Provide return on investment to local economies
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ELEMENTS OF A SUCCESSFUL FINANCING STRATEGY

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Components of a Stormwater Program

  • Administration
  • Billing and Finance
  • Public Education and

Involvement

  • Technical Support
  • Engineering and Planning
  • Operations and Maintenance
  • Capital Improvements
  • Regulation and Enforcement
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Organizational Challenges to Managing Stormwater

  • Responsibilities dispersed across broad group
  • Large capital costs and evolving landscape
  • Aging infrastructure
  • Future development/growth
  • Water quality BMP

implementation

  • Long term maintenance
  • Need for better data and tracking
  • Requires staff capacity
  • Extensive public education/outreach required
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Where Does It All Begin?

 It starts with a

comprehensive strategy

 Estimate annually

but plan for the long term

 Make program

transparent and cost effective

 Get to know your system – above and below the

ground

 Engage public early and often

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Dealing with green infrastructure…

  • What natural systems are already in place?
  • Where are the gaps in the system?
  • Where are there opportunities to leverage other community

priorities?

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Effective Financing Strategies

  • Community-based
  • Integrated
  • Mirror the resource
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Sustainable Financing Strategies

  • Tend to interweave several elements
  • Cost reduction strategies
  • Revenue generators
  • Market-based programs
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Cost Reduction Strategies

  • Planning
  • Effective, enforced regulations
  • Coordination with other community priorities
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Revenue Generators

  • Fundraising
  • Grant and loan programs
  • Bonds
  • Sustainable, dedicated

funding

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Market-based Programs

  • Regulatory Markets
  • Federal/state
  • local
  • Voluntary Markets
  • Incentive programs
  • Tourism-based programs
  • Private sector greening
  • Other voluntary programs

Top photo from www.gcbl.org/system/files/rn_grdn3.jpg Lower hoto by Kevin Robert Perry, from pruned.blogspot.com/2008/02/hyperlocalizing-h...

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Stormwater Financing Options

Source Coverage of Cost Type Features Capital Operations & Maintenance

Grants Yes No Not guaranteed, highly competitive, not sustainable in the long-term PENNVEST Loan Program Yes No Not guaranteed, highly competitive, must repay

  • ften with interest

Bond Financing Yes No Dependent on fiscal capacity, can utilize for large, long-term expenditures, must repay with interest General Fund Yes Yes Not equitable, competes with other community priorities, changes from year-to-year Permit & Inspection Fees No No Not significant revenue, may deter development Public Private Partnerships Yes Yes Efficiency, transfer of risk, capital access Stormwater Utility Fee Yes Yes Generates ample revenue, sustainable, dependable, equitable, requires significant public dialogue

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A REGIONAL APPROACH FROM A FINANCING PERSPECTIVE

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Benefits of Regionalization

  • Create efficiencies
  • Fill resource and capacity gaps
  • Tap into existing resources and capacity
  • Become more attractive and competitive to funders
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Regionalization within the Context of Pennsylvania

  • Move towards regionalization

with 1,000+ regulated entities

  • Opportunity varies by
  • Geographic location
  • Existing relationships
  • Political will
  • Greatest opportunity for

collaboration is through education, outreach, training

  • Watershed-scale leads to more

robust partnerships

Map of Pennsylvania’s NPDES MS4 Permitting Program, Pennsylvania Department of Environmental Protection, http://files.dep.state.pa.us/Water/BPNPSM/StormwaterManagement/MS4 _2010_UA.pdf.

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Spectrum of Regionalization

Informal collaboration through peer-to-peer sharing Formal regional entity created/adapted to manage stormwater Collaboration

  • n public

education and

  • utreach

MOU developed for defined shared activities Informal sharing between staff of equipment, tools, and resources

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CASE STUDIES ON REGIONAL OPPORTUNITIES

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Regionalization Case Stories

6 MS4s in Lancaster County Spring Creek Watershed, Centre County Northern Shenandoah, Virginia Lake County, Ohio York County Long Creek Watershed, Maine

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6 MS4s in Lancaster County

  • Greatest opportunity for collaboration

is through education and outreach

  • Move toward regionalization in long

term

  • Additional planning and investment

required by all 6 municipalities

  • Opportunities to reduce costs through

collaboration varies

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Project culminated in multi-municipal forum hosted by EFC and the Lancaster County Clean Water Consortium…

6 MS4s in Lancaster County

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Spring Creek Watershed, Centre County

  • Host of regional

entities exist that span across the watershed

  • Connection to Penn

State University

  • Mix of MS4 and non-

MS4, creating host of drivers and priorities

  • Protection versus

restoration – fiscal

  • pportunity now
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York County

  • Regional Chesapeake Bay Pollutant Reduction Plan being

developed

  • County also holds MS4 permit; County Planning Commission

paving way for better understanding regional stormwater management and financing

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Northern Shenandoah Valley, Virginia

  • Regional Commission supports multiple localities
  • Grappling with new state stormwater regulations
  • Challenge of shifting landscape at the state level
  • Shared staffing under consideration
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Lake County, Ohio

Regional Stormwater Management Program

  • 13 member communities contract with

County Stormwater Management Department

  • Pay impervious-based stormwater fee to

County and receive services defined in MOU

  • Two levels of participation --
  • Level 1 – Basic services received
  • Level 2 – Covers cost of all Minimum Control Measures

under MS4 permit; additional funds given back to community

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Long Creek Watershed, Maine

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Long Creek Watershed, Maine

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Take-Aways

  • Green infrastructure approach
  • Makes sense from a resource management perspective
  • Makes sense from a financing perspective
  • Effective financing strategies tend to be
  • Community based
  • Integrated
  • Mirror the resource
  • Regionalization
  • Can create efficiencies and reduce implementation costs
  • Can occur at multiple depths and scales
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Need More Information? Contact Us!

Monica Billig Program Manager – Pennsylvania mbillig@umd.edu Jen Cotting Research Associate – Green Infrastructure jcotting@umd.edu

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Tools & Resources

Regulatory Guides Planning Processes Funding Resources & Financing Strategies

Moving forward – innovation with “infrastructure”