Stimulus Funding of Environmental Projects Environmental Business Council Nov. 16, 2009

1. Stimulus Funding of Environmental Projects Environmental Business Council Nov. 16, 2009

2. EPA’s Stimulus Investments Dollars in Thousands Total: $7.2 Billion

3. EPA States Communities Common Goals Allocate funds quickly Put our dollars to work immediately Create jobs Build critical infrastructure Sustain communities Enhance environmental quality Transparency Accountability Progress Real results

4. Clean Water and Drinking Water State Revolving Fund (SRF) • SRFs create a perpetual source of state funding for drinking water and wastewater infrastructure. • ARRA Funding • $4 billion for Clean Water allotted based on statutory formula • $2 billion for Drinking Water allotted based on proportional share of national need • Minimum 50% subsidy • 20% Green Project Reserve • No state match Since 1987 State Clean Water and Drinking Water SRFs have provided more than $84 billion for 30,000 projects

5. Stimulus $$ as a Catalyst $405.6 million in projects ARRA CWSRF funds $1.1 billion in projects leveraging, other means $296 million ARRA DWSRF funds leveraging, other means $149.7 million

8. SRF Provisions • Funds available through September 30, 2010 – under contract or construction by 2/17/10 • 50% used for “additional subsidization” in the form of principal forgiveness, negative interest rates, or grants • 20% of funds must be used for green infrastructure, water efficiency, energy efficiency, or environmentally innovative projects • Buy American and Davis Bacon apply

9. SRF Challenges Buy American Provisions for Steel, Iron & Manufactured Goods • 1/3 of all waivers submitted nationally and 1/2 of approved specific waivers. • Concerns – compliance, 80% projects not bid yet 20% Green Project Reserve – Categorical or Business Case • Projects coming in under bid • Projects falling off the list • Adequate solicitation Davis Bacon Provisions – prevailing wage rates • 2010 Appropriations Bill language applies DB to entire universe of SRF projects – impacts on loans, bond issuance.

10. Status of New England’s Stimulus Work • 161 CWSRF projectsunderway or complete (235 total) • 208 DWSRF projects underway or complete (227 total) • On target for meeting: • the 20% Green Project Reserve (MA had $68M in GPR) • the 2/17/10 deadline for under contract or construction • Current focus: getting the money paid out

11. Green Project Reserve • Over 100 • ARRA projects were all or part green • Many energy efficiency and renewable energy projects • Worcester, MA • Heating upgrades • Solar PV • 44-kW hydroelectric turbine • Chelmsford, MA • Solar PV system

12. MA Green Projects • Pittsfield – energy efficiencies netting 75 -85% reduction in annual electricity costs • Falmouth – wind turbines expected to offset 40% of electricity costs • Lee – “net zero” will produce 100% of its drinking water treatment power from solar, hydro and maximizing energy efficiency

13. Green Project : Bangor Airport • $1,960,000 ARRA loan for stormwater remediation • Impaired stream – de-icing fluid, gasoline and diesel organics, sediment and thermal impacts • Installed sediment contols, aeration systems powered by wind,and wetland treatment cells • 120 trees will be planted to provide shade and nutrient uptake

14. Bangor Airport Bioretention Swale: Under Construction

15. Bangor Airport Bioretention Swale: Completed

16. Sub-Surface Treatment Inlet Structure

17. Three Windmill Towers and Blade Assembly

18. CWSRF Historical Activity

19. MA CWSRF

20. 2010 Appropriations Bill • $1.38B nationally for DWSRF • $2.1 B for CWSRF • 20% GPR • 30% subsidy for both programs • Davis Bacon requirements

21. 2010 Appropriations FundingAPPROXIMATIONS • Clean Water SRF • CT $25M • ME $15.7M • MA $69.1M • NH $20.3M • RI $13.6M • VT $10M

22. 2010 Appropriations (cont. APPROXIMATIONS) • Drinking Water SRF • CT $13.5M • ME $13.5M • MA $25.3M • NH $13.5M • RI $13.5M • VT $13.5M

23. Brownfields • Brownfields Program • $100 million to assess and clean up brownfields sites and to train local residents in green jobs. • Stimulus funds are not subject to the cost share requirement. • Stimulus Goals: To increase the number of communities receiving brownfields funding, to increase the number of residents receiving training for environmental jobs, and to promote sustainable, green reuse of formerly contaminated sites • Progress to Date: New Job Training Grant Competition posted on March 19th. Developed Supplemental Funding Requests for Revolving Loan Funds (RLF) Grants and established performance measures for stimulus funding

24. Superfund • Superfund Program • $600 million for the remedial program to clean up sites listed on the National Priorities List (NPL) • States are required to provide a 10% cost share negotiated prior to the start of the remedial action. • Stimulus Goals: Increase pace of environmental cleanups and return sites to communities for productive use • Progress to Date: We have assured contracts are in place, and are developing an implementation plan to obligate funding ahead of the statutory schedule. • EPA will ensure transparency of funding decisions without undermining the competitive bid process

25. LUST • Leaking Underground Storage Tanks (LUST) Program • Approximately $10 million to New England States to clean up spills of petroleum from federally regulated underground storage tanks (USTs), where the owner is unknown, unwilling or unable to do the work. • Stimulus funds are not subject to the cost share requirement. • Stimulus Goals: To award funds to states to clean up leaking USTs across New England and create/retain jobs. • Progress to Date: Developed grant allocation formula; formulating program-specific guidance, performance measures, reporting requirements, and establishing tracking and reporting processes. • EPA- New England is working to assist our state partners to develop draft workplan narratives/budgets and states are developing potential eligible sites lists.

26. DERA • Diesel Emissions Reduction Program (DERA) • $300 nationally • State Allocation Program - $88.2 • National Campaign Competition - $155.8M • Emerging Technologies - $20M • SmartWay Clean Diesel Finance - $30M • Agency Management and Operations - $6M • Stimulus Goals: Retrofit or replace older diesel engines; Through the development of these technologies maintain and create jobs in the manufacturing and service sectors across the country • No cost share requirement

27. DERA in New England • $8.8M in competitive grants awarded for diesel emissions reduction projects • 9 competitive grants awarded • $1.73 to each N.E. state to implement grant and loan programs for clean diesel projects

28. EPA & the ARRA In closing, we acknowledge ARRA’s challenges but, the investment in conjunction with our cooperation will engender a healthier environment for this generation and the next.

29. Contact Information Brownfields Carol Tucker tucker.carol@epa.gov 617-918-1221 Clean Water and Drinking Water SRF Jackie LeClair leclair.jackie@epa.gov (617) 918-1549 Superfund Larry Brill brill.larry@epa.gov (617) 918-1301 Leaking Underground Storage Tanks Bill Torrey torrey.bill@epa.gov 617-918-1311 DERA Halida Hatic (617) 918-1860 hatic.halida@epa.gov www.epa.gov/recovery