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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.

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Environmental finance center
Environmental Finance Center

Financing Storm water (Watershed) Strategies with a

“Community Quilt”

Environmental finance center1
Environmental Finance Center

When you think about funding sources

for watershed activities,

what sources come to mind?

Environmental finance center2
Environmental Finance Center

Usually, we think of public funding programs, like:

  • State Revolving Loan Fund

  • Section 319 funds

  • TEA-21

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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 center4
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?

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Environmental Finance Center

Financing a watershed plan involves:

  • Visioning

  • Prioritizing

  • Planning

  • Cooperation

  • Partnering

  • Leveraging resources

  • MONEY!

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Environmental Finance Center

What are the tools to build a watershed financing plan?

  • Public funding through public programs

  • Private funding through funding techniques

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Environmental Finance Center

First Set of Tools:

Public Funding through

Federal and State programs

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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)

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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)

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Environmental Finance Center

Education Programs:

  • Environmental Education grants(EPA)

  • Coastal Zone Management Program

  • EJP2

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Environmental Finance Center

Funding for Maintenance of a project:

  • Conservation Reserve Enhancement Program (CREP)

  • Wildlife Habitat Incentives Program (WHIP)

  • Woodland Incentive Program (WIP)

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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

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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

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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

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Environmental Finance Center

Riparian Forest Buffer Programs:

  • Stewardship Incentive Program (NRCS)

  • Forestry Incentives Program (NRCS)

  • Conservation Reserve Program

  • State Forestry Programs

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Environmental Finance Center

Second Set of Tools:

Accessing Private Funding through

Financing techniques

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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
The Business of Managing a Water System Enterprise

  • Self-Perpetuating/Self-Supporting Entity

  • Total Costs must = Total Charges/Revenues















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Environmental Finance Center

Nutrient Trading Strategies

Moving funding from those who have it to

those who need it

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Environmental Finance Center

Trading programs seek to achieve

environmental goals in the most cost-effective

manner possible through the use of market forces

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Environmental Finance Center

  • Regulator sets ceiling on amount of pollution allowed for a whole group of polluters within a “bubble”

  • Permits issued to individual polluters within that bubble for their share of the total amount

  • 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

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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

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Environmental Finance Center

Agreements tied to Loans

Home buyers and developers get low-interest loans for homes that are:

  • built within urban growth boundaries, designated growth areas, or areas where infrastructure already exists

  • 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

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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)

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Environmental Finance Center

The Community Quilt Concept of Financing a Watershed Plan

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Environmental Finance Center

“Community quilt” concept of financing

  • Federal, State and Local programs plus

  • Financing techniques such as :

  • Innovative rate structures

  • Public-private partnerships

  • Watershed fee districts

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Environmental Finance Center


a mosaic of public, private and nonprofit land ownership and land uses.

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Environmental Finance Center

A Watershed Financing Plan:

Uses the skills and strengths of stakeholders, in coordination, to realize goals and objectives

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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

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Environmental Finance Center

How do these different stakeholders contribute to a watershed financing plan?

Citizens community groups
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
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
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 governments1
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

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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


Forest buffers?


Residential, commercial and industrial?

Drinking water needs?


Environmental justice issues?

Economic development needs?

Habitat opportunities?

Environmental Finance CenterWhat’s going on in your watershed?

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Environmental Finance Center

A Holistic approach...

Using a broader collection of terms can broaden the sources of funding

for your watershed plan

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Environmental Finance Center

Broad-based sources of

funding =

broad-based support

for your plan

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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.

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Environmental Finance Center

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

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Environmental Finance Center

University System of Maryland

301-403-4220 x-26