August 1, 2012

1. International Conference on Sustainable Development 2012 Sustainable Water Resources: Utilizing Technology, Partnerships and Nature Michele N. Siekerka, Esq. Assistant Commissioner Water Resource Management New Jersey Department of Environmental Protection August 1, 2012

2. Sustainable Systems =Sustainable Communities • Investments in water infrastructure and water industry systems can have a profound impact on the overall character and sustainability of our communities. • Investments result in long-term benefits when decisions are “strategically aligned” with a plan for how and where a community wants to grow—or perhaps toll growth due to declining population or strategies for preservation.

3. The Path to Sustainable Water Infrastructure… Comprehensive Water Resource Management Working in partnership with the water sector and local communities to provide the knowledge and tools to ensure that investments in water infrastructure are sustainable. Key areas for action: Water & Energy Efficiency– cost reduction and waste minimization Asset Management- the right investments at the right time Alternative Technologies - utilizing new & innovative technologies Infrastructure Financing - options to pay for infrastructure needs

4. ……….and WHY?????

6. The Role of Green Infrastructure • Enhanced recreation • restoration of ecosystems: restores a water cycle more similar to a natural watershed, allows rain to soak into the ground and return to the streams slowly- natural WQ filter • Physical restoration of stream channels. Wetlands to restore habitat needed for healthy ecosystems • Improves neighborhoods: property values are higher when tress and vegetation present in urban areas • - also- lowskilled jobs with limited need for triaing,

16. Water & Energy Efficiency Ensuring that water sector systems adopt sustainable practices and technologies for improving their efficiency, reducing costs and addressing future needs.

17. Efficiencies at Utilities: Water and wastewater utilities energy reduction of 10 percent through demand management strategies and cost-effective investments in energy efficiency could save ~ $400 million annually. • Conservation in the Home: EPA estimates that if one out of every 100 American homes was retrofitted with water-efficient fixtures, ~100 million kWh of electricity per year could be saved and 80,000 tons of greenhouse gas eliminated. • Conservation at the Workplace: Beneficial reuse, smart water systems, outdoor irrigation, efficient production processes equate to SROI.

18. Asset Management Making the right investment at the right time Three Elements of Asset Management: • Routine asset evaluation and assessment • Programmed Preventative Maintenance (PPM), and • Procedure for evaluating the life-cycle costs of repair and/or replacement decisions

19. Best practices 1. Implementation of Asset Management Principles that ensure a sound understanding of asset inventory and value, maintenance and replacement needs, and allowance for cost-effective management. 2. Standardized approaches to utility accounting so that all utilities, regardless of ownership, fully account for asset management costs, with sufficient capital expenditures and reserves. 3. Ensure sufficient institutional capacity in municipalities, utilities, and State agencies to support implementation of asset management and utility accounting principles.

20. A Key to Success… Specifically identifying and replacing underperforming process units: Always improved environmental performance Nearly always resulted in operation cost savings that equaled or exceeded debt service costs “Effective asset management was the single biggest factor in achieving both improvement in environmental performance and cost reductions” Andrew Kricun, Deputy Executive Director / Chief Engineer – CCMUA “Emergency repairs are far fewer than in the past because of the Asset Management Plan.” William Hutchinson, Executive Director / Chief Engineer

21. Alternative Technologies … Using new and the innovative technologies....

22. What is Green Infrastructure? • Utilizing soil and vegetation to manage rainwater where it falls • Infiltration • Vegetative uptake • Storage

23. Sustainable ROI • Environmental: can both manage stormwater volume and treat runoff for a variety of pollutants • Social : aesthetically pleasing and community building • Economic: Can reduce the capital costs and O & M costs of gray technology; short term quicker impact

24. Water Quality: • Stormwater from urban areas delivers many pollutants to our streams, lakes, and beaches - including pathogens, nutrients, sediment, and heavy metals. In cities with combined sewer systems, high stormwater flows can also send untreated sewage into our waters. • By retaining rainfall from small storms, green infrastructure reduces stormwater discharges. • Lower discharge volumes translate into reduced combined sewer overflows and lower pollutant loads. Green infrastructure also treats stormwater that is not retained.

25. Flooding • Conventional stormwater infrastructure quickly drains stormwater to rivers and streams, increasing peak flows and flood risk. • Green infrastructure can mitigate flood risk by slowing and reducing stormwater discharges.

26. Water supply: • Rainwater harvesting and infiltration-based practices increase the efficiency of our water supply system. • Water collected in rainwater harvesting systems can be used for outdoor irrigation and some indoor uses and can significantly reduce municipal water use. • Water infiltrated into the soil can recharge groundwater, an important source of water in the United States.

27. Private and Public Cost Savings: • When stormwater management systems are based on green infrastructure rather than gray infrastructure, developers often experience lower capital cost. • Savings are derived from lower costs for site grading, paving, and landscaping, and smaller or eliminated piping and detention facilities. • In cities with combined sewer systems, green infrastructure controls may cost less than conventional controls , and green-gray approaches can reduce public expenditures on stormwater infrastructure.

28. Green Infrastructure Resources • USEPA Green Infrastructure web page http://water.epa.gov/infrastructure/greeninfrastructure/index.cfm • Implementing Watershed-Based Green Infrastructure for Stormwater Management: Case Study in Blacksburg, Virginia http://www.cabellbrandcenter.org/Downloads/sr452009.pdf • NYC Green Infrastructure Plan, A sustainable Strategy for Clean Waterways http://www.georgetownclimate.org/resources/nyc-green-infrastructure-plan-a-sustainable-strategy-for-clean-waterways • Rooftops to Rivers, Green Strategies for Controlling Stormwater and Combined Sewer Overflowshttp://www.nrdc.org/water/pollution/rooftops/contents.asp • The Value of Green Infrastructure for Urban Climate Adaptation http://www.cakex.org/virtual-library/value-green-infrastructure-urban-climate-adaptation • A Triple Bottom Line Assessment of Traditional and Green Infrastructure Options for Controlling CSO Events in Philadelphia's Watersheds http://www.epa.gov/npdes/pubs/gi_phil_bottomline.pdf

29. Infrastructure Financing • Strategic Integrated Approach to Water Quality • Leveraging Funding • NJDEP State Revolving Loan Fund • Federal pass through money; principal forgiveness • NJ Environmental Infrastructure Trust • New Jersey’s Independent Financing Authority responsible for funding Environmental Infrastructure projects that protect the State’s natural resources and public health • ______________________

30. Program Qualification - Water Quality Component 2 Main Qualification Categories : 1. Clean Water • Point Source Clean Water Projects (WTF, CSO, Sludge, etc.) • Non-Point Clean Water Projects (Storm water, Equip, Remediation) 2. Drinking Water • Safe Drinking Water Projects (Treatment, Distribution)

31. Examples of EIT Eligible “Green Projects” • Energy Production -must • be connected • directly to a CW/DW activity • Power • Wind • Solar • Geothermal Power • Micro-Hydroelectric • Biogas and CHP Systems • Rain / Stormwater • Permeable Pavement • Bioretention • Green Roofs • Grey Water Use • Xeriscape • Constructed Wetlands • Stormwater Harvesting • Stormwater Reuse Projects • Establishment or Restoration of: • Riparian buffers • Floodplains • Wetlands and other Natural Features • Installing Water Efficient Devices • Installing Water Meters in Previously Unmetered Areas • Retrofitting / Adding Leak Detection Equipment • Recycling and Water Reuse Projects as related to replacing potable sources with non-potable sources. • Retrofit or replace landscape irrigation systems.

32. Additional Benefits… • Lower all-in financing costs • Economies of scale in co-mingled pool. Borrowers pay proportionate share of issuance fees (rating agency, underwriter, trustee, etc.). Equates to lower cost/borrower • Capitalized interest / Deferred Payments • Borrowers may capitalize Interest and defer repayment of Principal costs during construction… until completion of the project, up to six months after construction ( not to exceed 3 years from the loan) • Interim financing • 0% financing is available to municipal borrowers (2% to Private Entities / Utilities) prior to long-term loan funding, providing timing flexibility for shovel-ready projects • … And MUCH more …

33. Putting Best Practices to Work in New Jersey… NJ State Strategic Plan……. “strategic alignment” Vision Statement • New Jersey will be the national leader in private and public investment which supports sustainable communities that attract and provide strong economic opportunities, preserve our State’s natural resources, and create healthier communities to work, reside and recreate. Mission Statement • To focus New Jersey’s policies and investments on vibrant regions by fostering targeted job growth, supporting effective regional planning and preserving the State’s critical resources.

34. It’s all about“Strategic Alignment” • Goal 1: Targeted Economic Growth • Goal 2: Effective Planning for Vibrant Regions • Goal 3: Preservation and Enhancement of Critical State Resources • Goal 4: Tactical Alignment of Government

35. Values: Prioritize Redevelopment, Infill, and Existing Infrastructure Strengthen cities, towns and neighborhoods by prioritizing redevelopment, the reuse and remediation of existing sites and structures, and construction on infill sites that is compatible with surrounding uses. Upgrade existing infrastructure where needed, before adding new capacity. Encourage sustainable development that incorporates green design and construction principles and opportunities for renewable energy and efficiency. Provide for Healthy Communities through Environmental Protection and Enhancement Protect and restore the environment, sensitive lands, ecosystems and natural resources. Ensure healthy places through an increase in the quantity and quality of preserved land. Improve quality of air, water and land. Reduce energy use, carbon emissions, water degradation and other impacts of development.

36. Putting Best Practices to Work at NJDEP… Comprehensive Regional Environmental Management : Alignment of planning, regulatory, enforcement and property acquisition programs to ensure the Department successfully implements a more comprehensive environmental approach that supports our environmental mission, the State Strategic Plan, community concerns and recognizes a commitment to vibrant regions.

37. Utilize Barnegat Bay Restoration Project as a model to establish watershed based protection and enhancement of all New Jersey’s surface water bodies: • Implement Governor’s Ten Point Comprehensive Plan of Action for Barnegat Bay; expand this plan as we discover new issues and solutions so as to address water quality concerns specific to impacted surface water bodies throughout the State. Restoration and Enhanced Protection in Environmentally Overburdened Communities: • Develop a new paradigm for the protection of communities overburdened by environmental stresses through a multimedia approach focusing on human health and the environmental impacts; ensure that we work in concert to address issues related to air, water, preservation, acquisition, and affordable access to parks. Sustainable Parks: • Establish a financially viable and stable system with dedicated funding sources that sustain our Parks with minimal General Fund reliance. A Renewable Energy Strategy for Public Health, Environmental Protection and Economic Vitality: • Accelerate the transition to a clean energy economy

38. Putting Best Practices to Work in NJ Communities… SUSTAINABLE JERSEY ™ is a certification program for municipalities in New Jersey that want to go green, save money, and take steps to sustain their quality of life over the long term.

39. “Sustainable Jersey” Actions supporting comprehensive water resource management Green Design • Upgrade/Retrofit - Water Conservation - This action helps municipalities identify and implement water conservation measures in their own buildings – focus is inside the building.  Adoption of Green Building Policy/Resolution. Operations & Maintenance • Grounds and Maintenance – Minimize Water Consumption - This action focuses on maintenance of landscape plantings after they are in the ground and is comprised of rainwater collection and efficient watering strategies – focus is outside on grounds.  Adoption of a Green Grounds and Maintenance Policy. Natural Resources • Water Conservation Ordinance - This model ordinance is intended to help municipalities curtail water waste associated with excessive seasonal outdoor water usage.  It seeks to extend available supplies through short-term drought periods and avoid recurrent drought warnings/water emergencies necessitated by demand-driven water shortages. • Water Conservation Education Program - As part of this action, municipalities may choose to implement a variety of different types of education programs that encourage water conservation.

40. New Jersey Department of Environmental Protection Office of Water Resource Management (609) 292-4543 www.nj.gov/dep Michele.Siekerka@dep.state.nj.us