1. Water Quality Issues for the Construction and Building Industry in 2014 A Presentation for the Orange County Business Council January 14, 2014 Mark Grey, Ph.D., Technical Director Construction Industry Coalition on Water Quality Building Industry Association of Southern California

2. Remarks Today On: Municipal Separate Storm Sewer System (MS4) permit renewal for North Orange Co. Observations on permit implementation and experiences over past 5 years, and Land use and building adaptation to the latest generation of MS4 permits in California Collaborative efforts (public-private) for permit compliance and infrastructure planning –MS4 LID Alternative Compliance Program Stormwater program compliance funding

3. Latest Generation of Phase 1 MS4 Permits in southern California LocationRegional Board Date Adopted or Proposed North Orange CountySanta Ana6/3/2009 San Francisco Bay AreaSan Francisco Bay10/14/2009 South Orange CountySan Diego12/16/2009 Western Riverside CountySanta Ana1/29/2010 San Bernardino CountySanta Ana1/29/2010 Ventura CountyLos Angeles7/8/2010 Southern Riverside CountySan Diego10/13/2010 Los Angeles CountyLos Angeles11/8/2012 San Diego RegionalSan Diego5/9/2013

4. Additional Stormwater Permitting Activity by State Water Resources Control Board Permitting Action Date Adopted or Proposed Phase II MS4 Permit February 5, 2013 Caltrans MS4 Permit September 19, 2012 Ocean Plan ASBS Discharge Exceptions March 20, 2012 Industrial General Permit 2014? Construction General Permit 2014?

5. Low Impact Development principles incorporated into MS4 permits in California Mimic Predevelopment Hydrology –Use natural features –Use site design –Use source controls –Use distributed controls, not centralized Use Integrated Water Resources Management –Treating stormwater as a resource at all scales –Improving water quality and augmenting water supplies regionally, watershed-wide

6. Stormwater LID Best Practices Categories InfiltrationHarvest and UseEvaporativeBiofilter/Biotreat $-$$$$$$$$$$$ GradingRain BarrelsGreen RoofBioretention SwaleCisternsBrown RoofBiofiltration TrenchTanksBlue RoofPlanter Box BasinCanopy InterceptConstr. Wetland DrywellUses:Soil AmendmentVegetated Swale GalleryIrrigation Toilet Flushing Vehicle Washing Evaporative Cooling Industrial Process Dilution Water Other Non-Potable Runoff DispersionVegetated Strip French DrainProprietary Device Permeables: --Asphalt --Concrete --Pavers Biotreatment may use underdrains or overdrains

7. What is the San Diego Regional Permit Adopted in 2013 Telling Us About North Orange County Revisions in 2014? Watershed-based construct for water quality compliance (planning and monitoring programs) A nod to more robust consideration of regional solutions through LID BMP Alternative Compliance Push for zero discharge of stormwater (retention) as the engineering standard; minimize use of biofiltration to meet the retention standard Push to remove all hydromodification control (stream protection) exemptions for development

8. Observations and lessons from the existing North Orange Co. MS4 permit OCPW reports more than 10,000 acres of property developed in the past 5 years instrumented with LID stormwater BMPs Use takes several forms, mostly infiltration and biofiltration BMPs installed on-site Generally smooth transition by development interests to adopt and use LID principles Water conservation efforts not overlooked in achieving clean beaches/compliance

9. MS4 permits allow Alternative Compliance Programs for Qualifying Projects Permits require that the design capture volume is managed on-site using LID BMPs The volume of runoff NOT managed in LID BMPs must be “mitigated” or “offset” Options are identified in MS4 permits: – “Mitigate” the volume difference at an off-site location –Pay a fee equivalent to managing runoff from the project location using LID BMPs –Credit trading systems –Watershed planning elements/instruments

10. LID BMP Installation Alternative Compliance Program Development Basis: Phase I MS4 water quality permit conditions for compliance Backdrop: Increase water supply reliability in S. Calif. and emphasis on creating multi-benefit water conservation projects Evaluating and selecting projects and options Identifying and creating framework elements Identifying appropriate programs for the region Establishing “equivalence” of alternative compliance options with on-site compliance Creating participation options and agreements among parties: –Private development interests –Regional water quality and flood control agencies –Water and wastewater districts

11. Alternative Compliance Framework Elements Needs and Opportunity Analysis Off-site and Regional BMP Framework Credit Trading System Framework Regulatory and Legal Basis Core Economic and Development Data Resource Expectations for Program Experiences from Other Programs

12. Off-site, Regional, and Credit Trading Framework: Some Options 1.Developer mitigates off-site 2.Developer purchases credits through private seller with retention capacity 3.Reimbursement agreement 4.Negotiated mitigation agreement (variations) 5.Community facility district Content taken from Arne Anselm/Rebecca Winer-Skonovd, CASQA Conference 2012; Alternative Compliance in Ventura County: Viable Options and Lessons Learned

13. What are examples of off-site project alternatives for water quality compliance? Green street adjacent or surrounding project Green streets near project within catchment Facility retrofits adjacent/near project –Parking Areas –Parks Streets/Retrofits outside catchment of project Regional infiltration within/outside project watershed CASQA 2012 BMP of the Year Slide Source: City of Los Angeles

14. Agencies Performing Some Degree of Stormwater Capture in S. California Agencies Orange County Water DistrictOrange County Public Works LA County Flood Control/Public WorksSan Bernardino Flood Control District LA Dept of Water and PowerChino Basin Water Conservation District City of Los AngelesSan Bernardino Valley Municipal Water District Central Basin Municipal Water DistrictWestern Municipal Water District Inland Empire Utilities AgencyEastern Municipal Water District San Gabriel Valley Municipal Water District Riverside County Flood Control and Water Conservation District Water Replenishment District of Southern California City of Riverside Irvine Ranch Water DistrictUnited Water Conservation District

15. Establishing Equivalency for Alternative Compliance Programs Core Economic Data Cost of installation Cost of long term O&M Benefits derived from installation of LID BMPs –Water Quality –Water Supply –Environmental –Property –Health Resource Expectations Appears highly variable depending upon location and development types Ultra urban, urban, and suburban development patterns and different needs & opportunities create variation Orange County development records offer some guidance on need Pilot projects needed in opportune locations

16. Case Study Analysis of On-site Retention LID BMPs Installation and 20-year O&M Per Gallon Managed Installation and 20-year O&M Cost hierarchy normalized per gallon: Infiltration < Infiltration Pavers ≤ Biofiltration < Harvest and Use Cisterns < Green Roof LID BMPs Evaluated Office Complex Residential Single Family Small Urban Infill Retail Big Box Large Urban Mixed Use Cost Per Gallon Infiltration Basin $4$2---$1--- Infiltration Paver $6$3$18$3$9 Cistern: outdoor $12$7---$5--- Cistern: outdoor & indoor $15---$49---$11 Green Roof $103$38$126$61$84 Biofiltration $6$4$21$2$9

17. Equivalent Volume Retention Costs Approximate Area (RUNOFF: GALLONS) <0.5 Ac 5,000 1-2 Ac 25,000 3-4 Ac 50,000 6-8 Ac 100,000 > 10 Ac 250,000 BMP TYPE$/GALDesign Capture Volume (GAL) Retention Range Equivalent Cost Infl. Basin2$10,000$50,000$100,000$200,000$500,000 Infl. Paver5$25,000$125,000$250,000$500,000$1,250,000 Biofiltration6$30,000$150,000$300,000$600,000$1,500,000 Cistern13$65,000$325,000$650,000$1,300,000$3,250,000 Green Roof38$190,000$950,000$1,900,000$3,800,000$9,500,000 Cost Data from LID BMP Economic Analysis for Orange County, CA, 2012

18. Approved Water Quality Management Plans in Orange County 2007-2012

19. Simple example of revenue potential using 2011-2012 WQMP data Assumptions (Very Rough) 10% of total acres covered by WQMPs in 2011-12 can’t comply on-site (total acres =9,114) 10% = 911 acres Assuming 19,000 gallons of design capture volume per acre using rational method (90% imperviousness) Results in 17.3 M Gallons of runoff Potential Revenue (17.3 M Gal.) x ($2/ Gal.) using infiltration basin = $34.6 Million Appears unrealistically high What about 1% of sites not able to comply on-site? (91 Acres) x (19,000 gallons per acre) x ($2/Gal.) using infiltration basin = $3.46 Million

20. Alternative Compliance Framework; Perspective and Distinctions Among Parties Perspective Obtaining water quality approvals is paramount to private development Meeting MS4 permit requirements is paramount for principal and co- permittees Water districts and related agencies hold water supply reliability interests paramount Distinctions and Variations MS4 permit requirements drive compliance options On-site preferred, then off-site allowed Where infiltration is feasible, then regional projects may represent best opportunity to achieve compliance and augment ground water supply Projects could be multi-agency, multi- benefit or between private interests (credit trading, for example) Where infiltration is infeasible or won’t augment ground water supply, then other types of off-site projects apply Projects are likely to be local, where needs exist, such as green streets or park and playground improvements or retrofits of existing development

21. Economic Analysis Relating to Integrated Water Resource Planning Questions: Where will suitability of capturing stormwater align with expected property development and with existing infrastructure plans by cities and the counties? Where and what benefits will be derived by implementing LID BMPs, and at what scale? What is the universe of benefits to consider? How will benefits be calculated? What are the acceptable methods? Who will make the calculations? Goals: Make the methods and calculation procedures clear and transparent Use case studies to test the framework, and produce the results; augment with work of the past two years in SC Produce a clear understanding of benefits and costs of installing LID BMPs at relevant scales of development

22. Using Case Study Analysis Methods to Establish Alternative Compliance Program Framework Orange Co. Case Study Analysis Apply optimization analysis and tools Determine and apply benefit-cost analysis framework Develop alternative compliance framework, including credit trading and in-lieu options using development scenarios Orange County-Santa Ana Region Alternative Compliance Framework Perform similar analysis done in Orange County specific to Santa Ana region Assist in developing pilot projects to test Alternative Compliance Framework Create a clear, simple, pathway for water quality compliance given local needs within a single Regional Board territory

23. Stormwater Program Financing Funding Needs: Water Quality Permit Compliance Total Maximum Daily Load Requirements –Nutrients and Metals –Bacteria Retrofitting Existing Infrastructure with “Green” Infrastructure Water Supply Augmentation Challenges: Mechanisms to raise revenue for meeting compliance obligations –Fees (voter approval) –Taxes (voter approval) –Product charges Public Understanding of Need Competing Priorities

24. THANK YOU Orange County Business Council! Water Quality Issues for the Construction and Building Industry in 2014 Contact: Mark Grey, Ph.D. mgrey@biasc.org 909-525-0623