Collaborative Approaches from a Financing Perspective Addressing - PowerPoint PPT Presentation

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 Center www.efc.umd.edu www.efc.umd.edu www.efc.umd.edu

Session Overview EFC Background 1. Funding versus Financing 2. Elements of a Successful Financing Strategy 3. A Regional Approach from a Financing Perspective 4. Case Studies on Regionalization 5. Q&A 6. www.efc.umd.edu www.efc.umd.edu

The Environmental Finance Center www.efc.umd.edu www.efc.umd.edu

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 www.efc.umd.edu www.efc.umd.edu

EFC’s Stormwater Financing Manual 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. • 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 www.efc.umd.edu www.efc.umd.edu

FUNDING VERSUS FINANCING www.efc.umd.edu www.efc.umd.edu

Financing: Coming to Terms • Funding: finite resources • Financing: managing fiscal resources Goal: increase return on investment www.efc.umd.edu www.efc.umd.edu

Financing Truths • It is cheaper to protect than to restore • Grants will not, never have been, and never will be enough Bullandbearessentials.com www.efc.umd.edu www.efc.umd.edu

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! www.efc.umd.edu www.efc.umd.edu

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 www.efc.umd.edu www.efc.umd.edu

ELEMENTS OF A SUCCESSFUL FINANCING STRATEGY www.efc.umd.edu www.efc.umd.edu

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 www.efc.umd.edu www.efc.umd.edu

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 www.efc.umd.edu www.efc.umd.edu

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 www.efc.umd.edu www.efc.umd.edu

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? www.efc.umd.edu www.efc.umd.edu

Effective Financing Strategies • Community-based • Integrated • Mirror the resource www.efc.umd.edu www.efc.umd.edu

Sustainable Financing Strategies • Tend to interweave several elements • Cost reduction strategies • Revenue generators • Market-based programs www.efc.umd.edu www.efc.umd.edu

Cost Reduction Strategies • Planning • Effective, enforced regulations • Coordination with other community priorities www.efc.umd.edu www.efc.umd.edu

Revenue Generators • Fundraising • Grant and loan programs • Bonds • Sustainable, dedicated funding www.efc.umd.edu www.efc.umd.edu

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... www.efc.umd.edu www.efc.umd.edu

Stormwater Financing Options Coverage of Cost Type Source Features Operations & Capital Maintenance Not guaranteed, highly competitive, not Grants Yes No sustainable in the long-term PENNVEST Loan Not guaranteed, highly competitive, must repay Yes No Program often with interest Dependent on fiscal capacity, can utilize for large, Bond Financing Yes No long-term expenditures, must repay with interest Not equitable, competes with other community General Fund Yes Yes priorities, changes from year-to-year Permit & No No Not significant revenue, may deter development Inspection Fees Public Private Yes Yes Efficiency, transfer of risk, capital access Partnerships Generates ample revenue, sustainable, Stormwater Yes Yes dependable, equitable, requires significant public Utility Fee dialogue www.efc.umd.edu www.efc.umd.edu

A REGIONAL APPROACH FROM A FINANCING PERSPECTIVE www.efc.umd.edu www.efc.umd.edu

Benefits of Regionalization • Create efficiencies • Fill resource and capacity gaps • Tap into existing resources and capacity • Become more attractive and competitive to funders www.efc.umd.edu www.efc.umd.edu

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

Spectrum of Regionalization Collaboration MOU on public developed for education and defined shared outreach activities Informal sharing between staff of equipment, tools, and resources Informal collaboration Formal regional entity through peer-to-peer created/adapted to sharing manage stormwater www.efc.umd.edu www.efc.umd.edu

CASE STUDIES ON REGIONAL OPPORTUNITIES www.efc.umd.edu www.efc.umd.edu

Regionalization Case Stories Spring Creek 6 MS4s in Watershed, York County Lancaster County Centre County Northern Long Creek Lake County, Shenandoah, Watershed, Ohio Virginia Maine www.efc.umd.edu www.efc.umd.edu

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 www.efc.umd.edu www.efc.umd.edu

6 MS4s in Lancaster County Project culminated in multi-municipal forum hosted by EFC and the Lancaster County Clean Water Consortium… www.efc.umd.edu www.efc.umd.edu

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 opportunity now www.efc.umd.edu www.efc.umd.edu

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 www.efc.umd.edu www.efc.umd.edu

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 www.efc.umd.edu www.efc.umd.edu

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 www.efc.umd.edu www.efc.umd.edu

Long Creek Watershed, Maine www.efc.umd.edu www.efc.umd.edu

Long Creek Watershed, Maine www.efc.umd.edu www.efc.umd.edu

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 www.efc.umd.edu www.efc.umd.edu