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1 Financing Stormwater Green Infrastructure in Washington DC Brian Van Wye District Department of the Environment.

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Presentation on theme: "1 Financing Stormwater Green Infrastructure in Washington DC Brian Van Wye District Department of the Environment."— Presentation transcript:

1 1 Financing Stormwater Green Infrastructure in Washington DC Brian Van Wye District Department of the Environment

2 2 Presentation Outline  Background and Cost of Stormwater in the District.  Major Funding Sources.  Voluntary Programs to Install Stormwater Retrofits.  SW Regulations as Key Driver of Retrofits.  Stormwater Retention Credit Trading.  Getting the Most Out of Limited Funding.

3 3 Imperviousness in the District 43% of District’s land area is impervious. A single 1.2 inch storm falling on this area produces about 525 million gallons of stormwater runoff.

4 4 Stormwater Quality Stormwater washes trash, sediment, oil, grease, pet waste, and other pollutants into District sewers and waterbodies.

5 5 Its sheer volume erodes stream channels, toppling trees, washing sediment downstream, and severely degrading aquatic habitat. Stormwater Quantity

6 6  Combined Sewer System 3.2B gal. per year of CSOs. 3.2B gal. per year of CSOs. $2.6B tunnel project. $2.6B tunnel project. Expected completion Expected completion Funded by rate payers. Funded by rate payers.  Separate Storm Sewer Sys Rough cost estimate – Rough cost estimate – $7B+ GI build-out.$7B+ GI build-out. $10B+ traditional infrastructure.$10B+ traditional infrastructure. Funding $17M per year. Funding $17M per year. Estimated Cost CSS MS4

7 7 Impervious Surface Retrofits  Key to solving stormwater impacts from MS4.  Retain runoff on site to mimic natural land cover.  Retention retrofits gradually make District “spongier.”

8 8 MS4 Funding Sources for Retrofits  DDOE stormwater impervious fee - $12M per year.  Bag law fees – $2.5M per year.  Federal Grants - $3M per year. Total = Approx $17.5 Mill / Year

9 9 Voluntary Retrofit Programs

10 10 RiverSmart Homes Rain Gardens Permeable Pavement BayScaping Rain Barrels Shade Trees

11 11 RiverSmart Schools  Retrofit impervious & create outdoor living classrooms

12 12 RiverSmart Rooftops  $5/sf subsidy to incentivize green roof installation.  2 million SF constructed.  2 nd only to Chicago!! 1425 K Street ASLA Office Human Rights Campaign

13 13 Other Voluntary Retrofit Programs  RiverSmart Communities – Condo associations, etc.  Municipal buildings, parking lots, and roads. Green roofs, bioretention, stormwater harvest, porous pavement, etc. Green roofs, bioretention, stormwater harvest, porous pavement, etc.

14 14 Other Voluntary Retrofit Programs RiverSmart Rewards – Discount on Stormwater Fees Maximum discount for retention of 1.2 inch storm. Maximum discount for retention of 1.2 inch storm. Improves equity for ratepayers. Improves equity for ratepayers. Not expected to drive retrofits on large scale by itself. Not expected to drive retrofits on large scale by itself. Expected to provide additional incentive layered on other voluntary and regulatory programs. Expected to provide additional incentive layered on other voluntary and regulatory programs. Projected Yearly Savings on Stormwater Impervious Fees 1.2 in. retention for 1 ERU Rate Year Total DC Water Max. Discount4%$5$6$8$10$11$12$13$14$15 $107 DDOE Max. Discount55%$18 $26 $33 $273

15 15 Revised Stormwater Regulations Major land-disturbing activity  5,000 sf or more of land-disturbing activity.  Required to retain the first 1.2” of rainfall. Major substantial improvement activity  Renovation for which: Cost exceeds 50% pre-project value of structure & Combined footprint of structures & land disturb ≥ 5,000 sf.  Required to retain the first 0.8” of rainfall. Retention achieved with Green Infrastructure.

16 16 Green Roofs

17 17 Stormwater Tree and LID Boxes

18 18 Rainwater Harvesting for Non-potable Uses

19 19 Regulated Development Key Driver of Retrofits  Most regulated development in District is redevelopment.  Scale of development makes it biggest driver of retrofits and key part of the solution:  Gradual transformation of DC’s 43% impervious land cover. Total area retrofitted with retention via DDOE direct investment annually Total area subject to SWM regulations annually (15 Mill SF 1% of land) 10. : 1

20 Leveraging Regulations with SRC Trading  Problem of imperviousness is opportunity for trading to: Maximize cost savings & flexibility for regulated sites. Increase retention and accelerate restoration of waterbodies. Increase socioeconomic benefits, with more GI retrofits (health, aesthetics, environmental justice, green jobs).

21 21 Trading’s Potential to Increase Retention  Same retention for 1.2” storm: 10,000 gallons Strict On-Site Trading 5, ,000 = 10,000 gallons

22 22  Greater retention for storms smaller than 1.2”  Example – 0.6” storm:  90% of storms in Washington DC are less than 1.2”.  This scenario yields 57% increase in annual retention. 5,000 gallons Strict On-Site Trading 5, ,000 = 10,000 gallons Trading’s Potential to Increase Retention

23 23 Benefits to District Waterbodies  Increased annual retention District-wide.  Increased capture of first- flush volume.  Shift retention BMPs to most vulnerable tributaries and improve socioeconomic outcomes.

24  Free to go off site after achieving 50% of required retention on site. Allowable Use of Off-Site Retention  Two off-site options: In-lieu fee payment to DDOE = $3.50/gallon of ret/year. Use of privately tradable Stormwater Retention Credits (SRCs). SRC=1 gallon of retention for 1 year.  Off-site volume is an ongoing obligation that can be: Met on yearly or multi-year basis. Met with a mix of fee & SRCs and mix can change. Reduced in the future by increasing on-site retention.

25 Generation of Stormwater Retention Credits  DDOE is sole SRC-certifying authority.  DDOE will certify up to 3 years’ worth of SRCs every 3 years for eligible retention capacity.  SRC-retrofits not permanently obligated to that use: No maintenance covenant required. Maintenance obligation can be ended by forfeiting SRCs or purchasing replacement SRCs for DDOE to retire.  Failure to maintain retention capacity for time of SRC certification results in: Original SRC owner must pay ILF, plus late fee. No additional certification of SRCs.

26 26 Example SRC Transaction  Grocery parking lot voluntarily retrofits w/4,000 gal BMP to generate 3 years of SRCs or 12,000 SRCs.*  Church parking lot voluntarily retrofits w/2,000 gal BMP to generate 3 years of SRCs or 6,000 SRCs.  Regulated site has 3,000 gal yearly offsite obligation & purchases total of 18,000 SRCs to comply for 6 years.  By end of 6-year period, regulated site purchases additional credits or pays in-lieu fee. *Note: Opportunity for discount on stormwater impervious fee provides layered incentive for retrofit.

27 *SRC value based on projected cost to recoup costs, not market analysis. Costs include capital, maintenance, land, and return on investment.27 Potential Financial Return on SRCs Projected Financial Return on Stormwater Impervious Fees 1.2 in. retention for 1 ERU Rate Year Total DC Water Max. Discount4%$5$6$8$10$11$12$13$14$15 $107 DDOE Max. Discount55%$18 $26 $33 $273 Projected SRC Value*$1.25$888$917$949$981$1,014$1,048$1,083$1,120$1,158$1,197$10,354

28 Other Benefits of SRC Market  New incentive for maintenance of GI.  District can purchase and retire SRCs to drive retrofits and achieve requirements and goals at lower cost.  District exploring adaptation of Property Assessed Clean Energy (PACE) to stormwater retrofits.  Marketing SRCs as socially conscious option for reducing a property or event’s stormwater footprint.

29 Getting the Most out of Limited Funding  Vast impervious areas in critical need of costly retrofits.  Importance of regulatory tools.  Prefer performance basis in regulations established: By District and For District.  Funding decisions driven more by performance, cost effectiveness, & long term goals – less opportunistic.

30 30 QUESTIONS? Brian Van Wye Branch Chief – SW Management Program Implementation District Department of the Environment To download the District’s Proposed Rule on Stormwater Management, draft Stormwater Management Guidebook, & related resources, visit: ddoe.dc.gov/proposedstormwaterrule


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