SEPA
US ENVIRONMENTAL PROTECTION AGENCY
Environmental Finance Program
2010-2011 PROGRESS REPORT
OFFICE OF THE CHIEF FINANCIAL OFFICER
ENVIRONMENTAL FINANCE PROGRAM
CENTER FOR ENVIRONMENTAL FINANCE
DECEMBER 2011
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TABLE OF CONTENTS
Message From the Chief Financial Officer i
Executive Summary ii
Environmental Financial Advisory Board (EFAB) 1
Environmental Finance Background 2
EPA Environmental Goals and EFAB Environemtnal Financce Objectives 2
Operations and Membership 3
Summaries of Completed EFAB Projects 5
Summaries of Ongoing EFAB Projects 10
Environmental Finance Center Network 11
Region 1: The University of Southern Maine 12
Region 2: Syracuse University 15
Region 3: The University of Maryland 19
Region 4: The University of North Carolina at Chapel Hill 23
Region 4: The University of Louisville 27
Region 5: Cleveland State University: Great Lakes Environmental Finance Center 31
Regions 6 and 8: The New Mexico Institute of Mining and Technology 35
Region 7: The Hugo Wall School, Wichita State University 39
Region 9: Dominican University of California 43
Region 10: Boise State University 47
American Samoa]
Northern Marians
islands
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Center for Environmental Finance Progress Report -December 2011
MESSAGE FROM THE CHIEF FINANCIAL OFFICER
I am pleased to present the latest biennial Environmental Finance Program Progress Report from the Center for
Environmental Finance. This report highlights the successful work of the Agency's Environmental Financial Advisory Board
(EFAB) and the Environmental Finance Center (EFC) Network. Both EFAB and the EFC Network help governments,
communities, and businesses find ways to finance the programs, projects, facilities, and activities that ensure continued
environmental compliance and support environmental progress.
EFAB, an independent federal advisory committee, provides EPA with advice and recommendations on environmental
financing issues. The Board consists of individuals from the finance and banking communities, business and industry,
national and regional organizations, and all levels of government who volunteer their time and experience. EFAB focuses its
advice and recommendations on promoting sustainability by reducing environmental costs; increasing public and private
investment; and building state, local, and tribal financial capacity. The Board produced eight reports during this period,
addressing a wide range of financing issues including: clean and drinking water state revolving fund investment options; cost
estimation as a financial assurance tool; and reduction of greenhouse gas emissions. These policy and technical reports
directly support EPA's strategic goals1 and cross-cutting fundamental strategies2.
The EFC Network, comprised of ten, university-based centers covering each EPA region, provides education, technical
assistance, and outreach services to the regulated communities; i.e., state, local, and tribal governments, and the private
sector. The EFCs accomplish their work by leveraging OCFO core funding secured through open competition with funding
obtained from other public and private sources. EFCs expand the reach of the Agency as they are able to work with regulated
parties in ways that EPA cannot. EFCs are neutral, non-governmental, non-regulatory centers of expertise, relatively low
cost, innovative, multi-disciplinary, collaborative, and diversified. As a result of their assistance, a small sample of
accomplishments include: created an initiative to assist in providing training and resources for communities to develop long-
term energy management plans; formed a collaboration to develop skills and implement practical tools to support watershed
protection efforts; and created a clean diesel program to reduce emissions and improve air quality.
I thank all of the committed EFAB volunteers and the dedicated staff at the EFCs who work to make these efforts a success
and to advance the state of environmental protection. In addition, I thank the many headquarters and regional EPA managers
and staff who support their work. EPA and the nation have been extremely fortunate to be the beneficiary of their advice,
experience, creativity and commitment.
Barba/a J. Bennett
Financial Officer
EPA Strategic Goals: Taking Action on Climate Change and Improving Air Quality; Protecting America's Waters; Cleaning Up Communities and
Advancing Sustainable Development; Ensuring the Safety of Chemicals and Preventing Pollution; and Enforcing Environmental laws.
EPA Cross-Cutting Fundamental Strategies: Expanding the Conversation on Environmentalisms; Working for Environmental Justice and Children's
Health; Advancing Science, Research, and Technological Innovation; Strengthening State, Tribal and International Partnerships; and Strengthening EPA's
Workforce and Capabilities.
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EXECUTIVE SUMMARY
Center for Environmental Finance Progress Report -December 2011
i INTRODUCTION
This latest Center for Environmental Finance (CEF)
Progress Report summarizes the work and contributions
of EPA's Environmental Financial Advisory Board
(EFAB) and the activities and initiatives undertaken by
the ten EPA-funded Environmental Finance Centers
(EFCs) that comprise the EFC Network. Both EFAB and
the EFC Network provide unique services to the nation,
helping find ways to pay for sustainable environmental
programs and promote responsible environmental
stewardship. Together these CEF initiatives seek to lower
costs, increase investments, and build the capacity of
public and private parties to fund environmental needs.
EFAB is an independent advisory committee established
to recommend ways EPA can address the growing
environmental financing challenges facing the nation.
First chartered in 1989 and operating under the authority
of the Federal Advisory Committee Act (FACA), EFAB
reports to the EPA Administrator and EPA offices on
environmental finance issues, options, proposals,
innovations, and trends. The Board is comprised of
approximately 30 members appointed by the Agency's
Deputy Administrator. EFAB members represent diverse
points of view - including state, tribal, and local
governments; the banking and finance communities;
business and industry; and public non-profit
organizations. The Board provides policy and technical
advice on a wide range of financial issues, with a
particular focus on supporting EPA's strategic goals and
cross-cutting fundamental strategies.
The EFC Network, composed of ten centers located
across the country, is the only university-based
organization in the nation that provides innovative
solutions to help manage the costs of protecting the
environment and human health. The network works with
both the public and private sectors to support responsible
and sustainable solutions to environmental problems. The
network is supported by EPA's Office of the Chief
Financial Officer and receives additional funding from
other EPA offices as well as other public and private
entities. The centers in the network are currently located
at the following universities:
• University of Southern Maine
• Syracuse University
• University of Maryland
• University of North Carolina at Chapel Hill
• University of Louisville
• Cleveland State University
• New Mexico Institute of Mining and Technology
• Wichita State University
• Dominican University of California
• Boise State University
EFAB and the EFC Network provide low cost, state-of-
the-art financial experience and expertise outside of the
Agency's core competency of developing and
implementing environmental programs. Moreover, while
the EFC's provide services and advice directly to states,
tribes, communities, and private parties on how to finance
environmental protection, they also share with EFAB
their real-world experience. For its part, EFAB members
not only advise the EPA, but may also make their
professional experience available to assist the EFCs in
their work.
| ENVIRONMENTAL FINANCIAL ADVISORY
| BOARD (EFAB) - HIGHLIGHTS
Through public meetings and workshops, EFAB develops
independent reports on financing environmental programs
and activities. Recently, EFAB issued reports making
recommendations concerning programs and activities
managed by EPA's Office of Solid Waste and Emergency
Response, Office of Water, Office of Air and Radiation,
and Office of Enforcement and Compliance Assurance.
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Center for Environmental Finance Progress Report -December 2011
The following project summaries highlight important
work efforts completed by the Board.
COMPLETED PROJECTS
Clean Water and Drinking Water State Revolving
Fund (SRF) Investment Options: The SRFs have been
capitalized or "endowed" with equity capital in excess of
$38.4 billion. This equity is invested in very conservative
financial investments such as high-grade tax-exempt
bonds with low interest rates. EFAB believes an
investment strategy that is more typical for large endowed
funds could increase the growth rate of SRF equity.
EFAB presented the benefits and risks of an endowment-
like approach to the investment of SRF funds, regulatory
issues affecting the implementation of the approach, and
the changes to debt issuance that would be required to
implement it.
Improving Cost-Estimation as a Financial Assurance
Tool: EFAB believes that good cost estimates are critical
to good financial assurance and concluded that existing
cost estimates for activities and actions under the
Resource Conservation and Recovery Act (RCRA) are
not uniformly accurate and up-to-date. EFAB suggested
that EPA and its public and private partners need to
improve cost estimation expertise/work by developing
more standardized cost estimates, providing more
education on best practices, and expanding existing
coordinating mechanisms.
The Use of Independent Credit Ratings for Financial
Assurance Instruments: EFAB has made a number of
findings and recommendations on using independent
credit ratings to evaluate financial assurance instruments
available under RCRA. EFAB recommended that EPA
review the possible impacts of the Dodd-Frank Wall
Street Reform and Consumer Protection Act (Dodd-Frank
Act) on such use of credit ratings.
Financial Assurance for Underground Carbon
Sequestration Facilities: The Board examined financial
assurance issues associated with the injection of carbon
dioxide (CO2) in wells for the purpose of carbon capture
and sequestration (CC&S). EFAB concluded that the
Agency's existing requirements for Safe Drinking Water
Act Class I wells provides the best model for this new
category of CC&S wells. EFAB recommended that
because carbon sequestration technology remains
developmental and needs addressed may be very long
term, periodic reviews of the scope of financial
obligations and the viability of the financial assurance
instrument should be conducted.
Financing Mechanisms for Reducing Greenhouse Gas
Emissions, and Other Air and Water Pollution
Problems: EFAB recommended that EPA support
programs to finance the installation of energy efficiency
and environmental improvement devices at public and
not-for-profit facilities such as local government
buildings, colleges and universities, hospitals, schools,
and churches.
Water Loss Reduction Financing Mechanisms for
Drinking Water Systems: EFAB presented the current
scope of water loss; practices, benefits, and obstacles for
implementing water loss control programs; case studies of
successful water loss control programs, and an overview
of funding mechanisms available. EFAB recommended
alternatives to detect and reduce leaks and to improve
water and energy conservation in water distribution
systems.
Commercial Insurance as a Financial Assurance Tool:
EFAB considered the use of commercial insurance as a
financial assurance tool for EPA programs, examining the
strengths and pitfalls of insurance, the value of minimum
ratings and capitalization requirements for insurers, and
the feasibility and advisability of standard policy
language for insurance used to provide financial
assurance. The Board concluded that in many cases
insurance is a viable, valuable mechanism for providing
financial assurance, especially during times of economic
difficulty when the use of other instruments may be
in
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Center for Environmental Finance Progress Report -December 2011
restricted. EFAB also found that all parties involved must
have a common understanding of the obligations and
limitations of insurance.
Voluntary Environmental Improvement Bonds
(VEIBs): An Innovative, Local, Environmental
Finance Concept: EFAB presented the concept of VEIBs
which can provide a long-term, low-cost mechanism for
installing improvements to reduce green house gas
emissions, improve air quality and reduce non-point
source water pollution. EFAB urged the Agency to
encourage states and local governments to adopt VEIB
programs that finance needed environmental
improvements.
Financial, Underwriting, Risk Mitigation and
Consumer Protection Considerations for the Adoption
of Voluntary Environmental Improvement Bond
(VEIB) Programs: EFAB outlined specific underwriting
and risk management considerations that should be
followed in properly implementing VEIB programs. The
Board detailed the design structure, uses of VEIBs and
recommended ways to safely underwrite their deployment
and achieve real-world environmental benefits.
FUTURE WORK
EFAB plans to expand upon its long-standing record of
supporting Agency programs in addressing EPA's
strategic goals, and looks forward to providing on-going
support for the Agency's cross-cutting fundamental
strategies. Projects that EFAB has underway include:
• Examining and recommending transit-oriented
development financing strategies and tools for the
Office of Policy;
• Exploring financial mechanisms and incentives that
will help industries to comply with the industrial
Maximum Available Control Technologies (MACT)
Standards by deploying next generation technologies
for the Office of Air and Radiation; and
• Developing sustainable funding approaches that will
support expanded and improved environmental
programs for tribes across the nation for the Office of
International and Tribal Affairs.
EFAB and the Center for Environmental Finance also
expect to continue consultations with EPA program
offices and regions to explore additional areas in which
they might provide assistance.
! ENVIRONMENTAL FINANCE CENTER (EFC)
! NETWORK - HIGHLIGHTS
EFCs provide advice and technical assistance to
governments and the private sector on managing and
financing environmental activities and infrastructure.
Topics covered by the EFCs range from public-private
partnerships to smart growth to urban clean-up and
redevelopment to setting rates that ensure viable water
and wastewater systems. The following activities and
initiatives are just a few examples of the many valuable
and unique services provided by the EFCs.
ACTIVITIES AND INITIATIVES
Coastal Adaptation Services and Outreach: The New
England EFC at the University of Southern Maine
developed and implemented a cutting edge software
approach to financial analysis that municipalities can use
to prepare for extreme weather events. This Coastal
Adaptation to Sea Level Rise Tool (COAST) generates
multiple sea level rise and storm surge scenarios. The
tool's graphics boldly display the economic impacts of no
action as well as a variety of adaptation actions such as
hurricane barriers, dikes, and flood control mapped
against the various weather scenarios. Users such as city
officials, businesses, and property owners are able to
select expectations of future conditions and visualize the
environmental impacts as well as the costs and benefits of
selected actions.
Green Infrastructure Technical Assistance: The
Syracuse University EFC brought together green
infrastructure stakeholders in Onondaga County, New
York and helped secure a Sustainable Communities
Partnerships pilot project for EPA. As part of this project,
the EFC evaluated New York's Green Innovation Grant
Program noting positive attributes and identifying areas
needing improvement. The EFC also worked with New
York State to encourage reinvestment and efficiency in
infrastructure, incentivize smart growth, promote asset
management, and stimulate the adoption of green
infrastructure approaches. The EFC organized seven
IV
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Center for Environmental Finance Progress Report -December 2011
quarterly forums where consulting engineers, technical
assistance providers, and local government leaders met
and discuss these and other related topics.
Port of Baltimore Clean Diesel Program: The
University of Maryland EFC leveraged its record to take
part in a $3.5 million ARRA-funded emissions reduction
project at the Port of Baltimore in Maryland. The EFC led
the Port's Steering Committee, as well as sub-award
programs involving dray trucks, cargo handling
equipment, locomotives and harbor craft. In all, more
than 80 pieces of equipment at the port were replaced,
repowered, or retrofitted. Estimated emissions reductions
in nitrous oxide (NOX) and paniculate matter (PM) from
the project include: dray trucks ~ 142 tons of NOX and 4
tons of PM ; cargo handling equipment - 72 tons of NOX
and 11 tons of PM; harbor craft - 500 tons of NOX and 20
tons of PM; and locomotive equipment - 67 tons of NOX
and 3.5 tons of PM.
Water and Wastewater Rates and Structures/Rate
Tools: The University of North Carolina at Chapel Hill
EFC partnered with the Georgia Environmental Finance
Authority to collect and analyze water and wastewater
rate structures from 90% of the public service providers in
Georgia. The information was integrated into an
electronic dashboard that can be used by local officials
and staff to make rate and investment decisions. A team
from the EFC developed a new revenue model for water
rates and fees in Montgomery County, North Carolina.
The model demonstrated the need to raise rates and
presented the consequences of not doing so. The EFC
also helped Chatham County, North Carolina develop a
water utility impact fee structure where fees increase as
the customers' impact on the water system capacity
increase. The new structure provides an incentive for
customers to engage in more sustainable practices.
Practice Guides: The University of Louisville EFC
published the following environmental Practice Guides
for local officials and citizens:
• Water Pricing and Rates Dashboards
• Sustainable Construction Policies in EPA Region IV
• Urban Agriculture and Soil Contamination: An
Introduction to Urban Gardening
• Concentrated Animal Feeding Operations: What Are
the Potential Community Costs?
The number of Practice Guides published in this long-
running series reached 24, and another 3 examining safe
container gardening, policy barriers to urban agriculture,
and financing urban agriculture projects are under
development. Over the years, the EFC's numerous
Practice Guides have been accessed by diverse
organizations and people, including the Danish consulate
in Chicago, small towns in eastern Kentucky, and
individuals in many states across the country.
Environmental and Urban Redevelopment: The Great
Lakes EFC at Cleveland State University broadened its
long-term focus on brownfields clean-up and
redevelopment to a larger urban environmental and
redevelopment focus. The EFC worked with the
Cuyahoga Land Bank to develop strategies to use the
42,000 vacant parcels of land in Cleveland and the
surrounding inner-ring suburbs in Cuyahoga County to
reduce the flow of stormwater into the sewer system. The
EFC also initiated the Northeast Ohio Stormwater
Training Council bringing together local officials and
non-profits to develop a continuing source of
environmental and finance training directed at this critical
issue.
Water and Wastewater Management: The EFC at the
New Mexico Institute of Mining and Technology is a
long-time leader in providing water and wastewater
infrastructure training and technical assistance to state,
local, and tribal officials/system operators in EPA Region
6. The EFC has recently expanded its area of operations
and now provides these and other valuable services in
EPA Region 8. Specific areas of EFC expertise include
utility asset management, capital planning and budgeting,
utility rate setting, capacity assessments, energy
efficiency, environmental regulations, and operator
certifications. The EFC continues its work with public
water systems representing Native American Tribes. For
example, with the help of EFC's operator and other
training, tribal water systems in Region 6 have reduced
their federal Total Chloroform Rule Maximum
Contaminant Level Violations approximately 85%.
Energy Management Initiative: Water and wastewater
facilities owned and operated by local governments
account for 30%-50% of municipal energy use annually.
costing about $4 billion nationally. Working with EPA
Region 7 and public and private partners in Missouri and
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Center for Environmental Finance Progress Report -December 2011
Kansas, the EFC at Wichita State University conducted
energy assessments of numerous water and wastewater
systems in both states to establish energy use benchmarks.
The EFC met with communities and energy companies to
explore process and equipment changes, and develop
energy management plans to cut energy use. Energy and
monetary savings to date have been significant and have
been accompanied by similar reductions in green house
gases emissions (i.e., CO2, NOX, SO2).
Tribal Sustainability: The Dominican University of
California EFC worked tirelessly with tribal governments
in California, Arizona, and Nevada (EPA Region 9) to
promote environmentally sustainable business
opportunities in support of tribal self-sufficiency. This
tribal work included evaluating solar energy opportunities
for the Torres Martinez Tribe in California and the
Navajo Tribe in Arizona; identifying recycling and green
business opportunities for 20 tribes in Northern Nevada;
developing eco-lodge, waste services, and campground
business plans for the La Jolla Indian Tribe in California;
and building the capacity of a coalition of 20 tribes in
Arizona to protect mountain areas from development.
Web-Based Financial Tools: The Boise State University
EFC added Wastewater and Stormwater Dashboards to its
suite of online financial tools. These new interactive
dashboards allow managers and operators to view their
financial affairs in simple, easy to understand formats.
The tools also allow users to input customer data, flow
rates, NPDES permit information, rainfall and geographic
data, influent levels, and other information on web forms
that automatically populate the dashboards. Users then
manipulate their rates, revenues, and expenses to see how
different decisions financially impact systems. The
dashboards present a range of rate structures, analyze
revenue streams, and track changing environmental
conditions in graphic form for presentation to decision-
makers.
FUTURE PLANS
The EFCs will continue to provide many of these valuable
services in the future and plan to broaden and expand
their financial expertise and assistance. Some new areas
of future work include implementation of a sustainable
communities certification program in Maryland,
development of wetlands financing models, analyses of
clean energy financing mechanisms, development of safe
soil guides, expanding support for the EPA-HUD-DOT
Partnership for Sustainable Communities, providing
technical assistance on source water protection, and
promoting waste reduction, reuse and recycling in Puerto
Rico and the Virgin Islands.
For more information about the Environmental
Financial Advisory Board and the Environmental
Finance Center Network, visit our Web site at
http://www.epa.sov/efmpase.
VI
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Environmental Financial
Advisory Board
Helping to answer the
EFAB
"How to Pay" question.
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Center for Environmental Finance Progress Report -December 2011
ENVIRONMENTAL FINANCE BACKGROUND
THE ENVIRONMENTAL FINANCING
CHALLENGE is GROWING
Since the creation of EPA in 1970, the nation has made
huge investments in, and significant progress toward,
controlling pollution and restoring environmental quality.
Much of the credit for this success is due to EPA's use of
traditional regulatory and enforcement tools, and to the
transfer of resources from the federal government to state,
local, and tribal governments to help develop
environmental infrastructures.
Two trends now challenge our ability to maintain and
improve our standard of environmental quality. First, the
needs and expectations for environmental protection
continue to grow. Second, limited revenues and growing
overall demands on state and local resources increasingly
constrain traditional sources of environmental funding.
The result is a growing tension between the increasing
costs of environmental protection and the resources
available to meet those costs.
EPA MUST ADDRESS THE FINANCING
CHALLENGE
Failure to address environmental financing challenges
threatens past environmental gains and future
environmental progress. It puts at risk ecosystems,
human health, and community well-being - our quality of
life.
To address these environmental and resource challenges
in a sustainable manner, EPA will need to consider the
full range of available finance-related alternatives. This
effort includes a continuing review of traditional
regulatory and enforcement tools and federal assistance
programs. In addition, it will require an evaluation of
innovative projects and technologies, improved
efficiencies, creative financing techniques, and leveraged
public-private partnerships.
EFAB WAS CREATED TO ADVISE EPA ON
FINANCING ISSUES
The Environmental Financial Advisory Board (EFAB or
the Board) was established in 1989 under the authority of
the Federal Advisory Committee Act (FACA) to provide
advice and recommendations to the EPA Administrator
on environmental financing issues, options, proposals,
and trends. Through public meetings and workshops, the
Board develops independent analysis and advice on
financing environmental programs and activities. EFAB
seeks practical ways of lowering costs, increasing public
and private investments, and building state, local, and
tribal capacity. The Board is sponsored and supported in
its work by EPA's Office of the Chief Financial Officer.
| EPA ENVIRONMENTAL GOALS AND EFAB
! ENVIRONMENTAL FINANCE OBJECTIVES
EPA GOALS
EFAB's activities and future plans in support of the
Agency are carefully aligned with the five major goals
contained in EPA's strategic plans. The five major goals
contained in EPA's latest strategic plan (FY 2011-2015)
are:
1. Taking Action on Climate Change and
Improving Air Quality;
2. Protecting America's Waters;
3. Cleaning Up Communities and Advancing
Sustainable Development;
4. Ensuring the Safety of Chemicals and Preventing
Pollution; and
5. Enforcing Environmental Laws.
EFAB OBJECTIVES
In accordance with its charter, EFAB seeks to support
EPA in meeting the aforementioned major EPA goals by
pursuing the following finance-related objectives:
• Reducing the cost of financing sustainable
environmental facilities, discouraging polluting
behavior, and encouraging stewardship of natural
resources;
• Creating incentives to increase private investment in
the provision of environmental services and
removing or reducing constraints on private
involvement imposed by current regulations;
• Developing new and innovative environmental
financing approaches and supporting and
encouraging the use of cost-effective existing
approaches;
• Identifying approaches specifically targeted to small
community financing;
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Center for Environmental Finance Progress Report -December 2011
• Assessing government strategies for implementing
public-private partnerships, including privatization
and operations and maintenance issues, and other
alternative financing mechanisms;
• Improving governmental principles of accounting and
disclosure standards to help improve sustainability of
environmental programs;
• Increasing the capacity issue of state and local
governments to carry out their respective
environmental programs under current Federal tax
laws;
• Increasing the total investment in environmental
protection and stewardship of public and private
environmental resources to help ease the
environmental financing challenge facing our nation;
and
• Removing barriers and increasing opportunities for
the U.S. financial services and environmental goods
and services industries in other nations.
EFAB OPERATIONS AND MEMBERSHIP
EFAB OPERATIONS
The Board is comprised of approximately 30 members
who serve as representatives of non-federal interests.
Members are appointed by the EPA Deputy Administrator
and represent state, local, and tribal governments; the
banking, finance, and insurance communities; business
and industry; and public interest groups. The influence of
any one interest is minimized through a careful balancing
of the varying points of view represented by EFAB's
membership.
The full Board convenes at least twice a year - once in the
winter and again in the summer. In addition to the two full
Board meetings, the Board hosts workshops and
roundtables, as appropriate and necessary, to gather
information for its reports and other work products. All
Board meetings, workshops, and roundtables are open to
the public and announced in the Federal Register as
required by FACA.
The work of the Board is directed by its Designated
Federal Official, officiated by a Chairperson, and staffed
by EPA's Center for Environmental Finance. EFAB's
current Designated Federal Official is Michael H.
Shapiro, Deputy Assistant Administrator for EPA's
Office of Water. The Center for Environmental Finance,
located in the Office of the Chief Financial Officer, is
managed by Joseph L. Dillon.
EFAB MEMBERSHIP
At the conclusion of the period covered by this report, the members of the Board were:
Bradley Abelow (EFAB Chair)
Chief Operating Officer
MF Global, Ltd
Scott Anderson
Consultant/Senior Policy Advisor
Environmental Defense Fund
John Boland
Professor Emeritus
The Johns Hopkins University
William Cobb
Vice President
Environmental Services &
Sustainable Development
Freeport-McMoran Copper &
Gold, Inc.
Don Correll
Environmental Finance Consultant
New Jersey
Rachel Deming
Director
International Transactions Clinic
University of Michigan Law School
Eric Draper
Deputy Director/Policy Director
Audubon of Florida
Mary Francoeur
Managing Director
Assured Guaranty
James Gephardt
Chief Financial Officer
NY State Environmental Facilities
Corporation
Ann Jennifer Grodnik
Assistant Vice President, Public
Finance
Seattle-Northwest Securities
Scott Haskins
Vice President
Global Water Business Group
CH2MHHI
Jennifer Hernandez
Partner/Co-Chair, National
Environmental Team
Holland and Knight, LLP
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Center for Environmental Finance Progress Report -December 2011
Keith Hinds
Financial Advisor
Merrill Lynch
Philip Johnson
President/CEO
Green Terra Energy Corporation
Deborah Livesay
Water Resources/Wetlands
Manager
Torres Martinez Desert Cahuilla
Indian Tribe
Thomas Liu
Managing Director
Bank of America Merrill Lynch
Gregory Mason
Chief Operating Officer
Georgia Environmental Finance
Authority
Karen Massey
Deputy Director
Missouri Environmental
Improvement and
Energy Resource Authority
Mathilde O. McLean
Treasurer, New York City Water
Board
New York City Department of
Environmental Protection
Lindene E. Patton
Chief Climate Product Officer
Zurich Financial Services
Sharon Dixon Peay
Financial Administrator
Office of the Treasurer
State of Connecticut
Cherie Collier Rice
Treasurer and Vice President of
Finance
Waste Management, Inc.
Andrew Sawyers
Program Administrator
Water Quality Financing
Administration
Maryland Department of the
Environment
Douglas P. Scott
Director
Illinois Environmental Protection
Agency
Jay Spector
Financial Advisor
Wells Fargo Advisors, LLC
Greg Swartz
Vice President
Piper Jaffrey & Co.
Steve Thompson
Executive Director
Oklahoma Department of
Environmental Quality
Leanne Tobias
Principal
Malachite, LLC
Chiara Trabucchi
Principal
Industrial Economics
Justin Wilson
Comptroller of the Treasury
State of Tennessee
EFAB Membership Composition
Public Interest Groups
13%
Banking, Finance, and
Insurance
27%
State, Local, and
Tribal Government
33%
Business and Industry
27%
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Center for Environmental Finance Progress Report -December 2011
FORMER EFAB MEMBERS
EFAB members who have completed their terms but served during part of the period covered by the report include:
Terry Agriss
President
TAgriss Advisory Services
A. James Barnes (Former EFAB
Chair)
Professor of Public and
Environmental Affairs
Adjunct Professor of Law
Indiana University
George Butcher
Managing Director
ButcherMark Financial A dvisors,
LLC
Michael Curley
Executive Director
The International Center for
Environmental Finance
Towson University
Kelly Downard
Chairman
Louisville Metro City Council
Langdon Marsh
Fellow
National Policy Consensus Center
Portland State University
Jim Tozzi
Director
Multinational Business Services,
Inc.
i SUMMARIES OF COMPLETED EFAB REPORTS
! AND LETTERS
The projects described in this section provide summaries
of recent reports that were completed by the Board in
response to specific Agency requests.
VEIB/PACE FOLLOW-UP (MAY 2011)
EPA Strategic Goals: Taking Action on Climate Change
and Ensuring Air Quality; Protecting America's Waters
Primary Customers: Office of Air and Radiation; Office
of Water
Report Summary: This effort follows up on two Board
reports issued in June 2009:
1. Voluntary Environmental Improvement Bonds
(VEIBs): An Innovative, Local, Environmental
Finance Concept for Mitigation of Climate Change
Risk; Air Pollution Reduction; and
2. Reduction of Non-Point Source Water Pollution and
Financial, Underwriting, Risk Mitigation and
Consumer Protection Considerations for the
Adoption of Voluntary Environmental Improvement
Bond (VEIB) Programs.
In this follow up to an earlier work, EFAB examined
subsequent negative developments that have impacted the
implementation of VEIB programs as well as related
Property Assessed Clean Energy (PACE) Programs. The
letter reiterates its support of these programs because they
provide an important source of financial support for
crucial community-wide environmental and energy
efficient improvements.
Report Recommendations: This letter contains previous
observations and examples of the use of these tools in
communities. The Board offered no formal
recommendations to the Agency.
Outcome: While EFAB did not offer any specific
recommendations, EPA shares the Board's strong support
for innovative financing mechanisms for promoting
residential energy efficiency and renewable energy
applications for the benefit of communities and
individuals.
EXPLORING CLEAN WATER AND DRINKING
WATER STATE REVOLVING FUND (SRF)
INVESTMENT OPTIONS (JANUARY 2011)
EPA Strategic Goal: Protecting America's Waters
Primary Customer: Office of Water
Report Summary: In a previous report on SRF
leveraging, EFAB identified as an area for further study
whether there are modifications to the current approaches
used to invest SPJ7 equity that might better meet the
objectives of the Clean Water and Drinking Water SRF
Programs, including making them more sustainable. The
Board noted in its leveraging report that the SRFs have
been capitalized or "endowed" with equity capital in
excess of $38.4 billion. This equity is invested in very
conservative investments such as high-grade tax-exempt
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Center for Environmental Finance Progress Report -December 2011
interest rates. An investment strategy that is more typical
for such large endowed funds would be expected to
significantly increase the growth rate of SRF equity.
EFAB examined, in some detail, the equity investment
question posed above. As part of this effort, the Board
also plans to generally explore the benefits and risks of an
endowment-like approach to the investment of Clean
Water and Drinking Water SRF funds, any regulatory
issues affecting the implementation of the new approach,
and any related impacts, such as impacts on the approach
to debt issuance that would be required to implement a
new endowment-like investment approach.
Report Recommendations:
• EPA should identify and promote SRF state-of-the-
art investment practices that support more productive
utilization of SRF funds among headquarters and
regional SRF staff.
• EPA staff should work with stakeholders and SRF
administrators to develop interpretative guidance that
clarifies existing investment authority and, to the
extent deemed necessary, develop model language
changes to the Clean Water and Safe Drinking Water
Acts that broaden investment authority to include
both fixed income and capital growth asset classes to
the stable of permitted investments that SRF
administrators can utilize.
• EPA should develop model regulatory language that
would establish the parameters that would effectively
govern SRF investment among asset classes.
Outcomes: EPA's Office of Water invited EFAB to
present its findings and recommendations at the Council
of Infrastructure Financing Authorities SRF Workshop on
November 14, 2011. In addition to the Workshop, EFAB
will present at the State/EPA Work Group meeting on
November 15. These discussions are expected to generate
an informative and helpful debate for all attendees and
will expand the awareness of current investment practices
and opportunities for future change and improvement.
IMPROVING COST-ESTIMATION AS A
FINANCIAL ASSURANCE TOOL (DECEMBER
2010)
EPA Strategic Goals: Cleaning Up Communities;
Advancing Sustainable Development and Enforcing
Environmental Laws
Primary Customers: Office of Solid Waste and
Emergency Response; Office of Enforcement and
Compliance Assurance
Report Summary: This report examines existing cost-
estimation practices for RCRA closure, post closure, and
corrective action. Based on this work, EFAB finds that
good cost estimates are critical to good financial
assurance; i.e., any financial assurance instrument is only
as good as the accuracy of the cost estimate that it
secures. The Board concludes that cost estimates for
activities and actions under RCRA are not uniformly
accurate and up-to-date. EFAB believes that EPA and its
public and private partners need to improve cost
estimation expertise/work by developing more
standardized cost estimates, providing more education on
best practices, and expanding existing coordinating
mechanism.
Report Recommendations: The report recommends
improving cost estimation expertise and the cost estimates
that underpin the use of all financial assurance
instruments. Specific actions that EFAB suggests EPA
should take include:
• creating standard checklist templates that clarify
definitions, ensure completeness, and streamline
reviews;
• creating a web-based platform to disclose and
improve the state of knowledge regarding good cost
estimation;
• developing in EPA and the states a body of experts
who can use these tools; and
• committing Agency resources to translating
information into best practices and providing
improved ongoing training to regulators.
Outcome: EPA's Office of Solid Waste and Emergency
Response shared the Board report with the Association of
State and Territorial Solid Waste Management Officials
and is exploring with that group the best ways to
implement the report's recommendations.
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Center for Environmental Finance Progress Report -December 2011
THE USE OF INDEPENDENT CREDIT RATINGS
FOR FINANCIAL ASSURANCE INSTRUMENTS
(DECEMBER 2010)
EPA Strategic Goals: Cleaning Up Communities;
Advancing Sustainable Development and Enforcing
Environmental Laws
Primary Customers: Office of Solid Waste and
Emergency Response; Office of Enforcement and
Compliance Assurance
Letter Summary: This EFAB letter discusses past
findings and recommendations that the Board has made
regarding the use of independent credit ratings in EPA's
evaluation of financial assurance instruments (including
the financial test/corporate guaranty, captive insurance,
and commercial insurance) under the Resource
Conservation and Recovery Act (RCRA). In the letter,
the Board then directs the attention of the Agency to the
possible impact of the Dodd-Frank Wall Street Reform
and Consumer Protection Act (Dodd-Frank Act) on any
such use of credit ratings.
Letter Recommendation: The Board recommends that
the Office of Solid Waste and Emergency Response work
with the Office of the General Counsel to review the
Dodd-Frank Act and monitor the rulemaking process to
determine the application of the Act, particularly Section
939 and 939A, to the Agency's financial assurance
requirements.
Outcome: As recommended by EFAB, the Office of
Solid Waste and Emergency Response is working with
the Office of the General Counsel to determine the
applicability of the Dodd-Frank Act to Agency financial
assurance requirements.
FINANCIAL ASSURANCE FOR UNDERGROUND
CARBON SEQUESTRATION FACILITIES
(MARCH 2010)
EPA Strategic Goals: Protecting America's Waters;
Taking Action on Climate Change and Improving Air
Quality
Primary Customers: Office of Water; Office of Air and
Radiation
Report Summary: This report identifies and examines
financing issues related to implementing a carbon dioxide
(CO2) underground injection control program. Such a
program would include the provision of the financial
assurance needed to address potential current and future
liabilities associated with the underground injection of
CO2 in storage wells for the purpose of carbon capture
and long-term sequestration.
Report Recommendations:
• The EPA should use a blend of the RCRA subtitle C
financial assurance requirements and the SDWA
financial assurance requirements for Class I wells as
the model for establishing financial assurance for
new Class VI wells.
1. The EPA should extend the RCRA acceptance of
a party with a "substantial business relationship"
to the guarantee provisions for SDWA.
2. The EPA should allow the SDWA Class I
bankruptcy notification provision be applied to
the Class VI wells.
3. The EPA should allow the SDWA Class VI
regulations extend the RCRA provisions to
include bankruptcy or loss of authority of the
trustee.
4. The EPA should consider adding a new category
of financial assurance to the Class VI program
that provides the Agency with the flexibility to
approve a "functional equivalent" to the
established RCRA financial tests.
• The EPA should periodically review the scope of
obligations covered by financial assurance as well as
the continued viability of financial instruments being
used. The Agency could link the amount of financial
assurance required to cost estimates that are upgraded
on a regular basis (e.g., every five years).
Outcome: The Office of Water's guidance document,
"Financial Responsibility for Underground Injection
Control Program Class VI Geologic Sequestration Wells,"
was informed by the Board's recommendations. The
guidance will be published with the GS rule after the
public comment period is completed.
FINANCING MECHANISMS FOR REDUCING
GREENHOUSE GAS EMISSIONS, AND OTHER
AIR AND WATER POLLUTION PROBLEMS
(MARCH 2010)
EPA Strategic Goals: Taking Action on Climate Change
and Improving Air Quality; Protecting America's Waters
Primary Customers: Office of Air and Radiation; Office
of Water
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Report Summary: The report looks at ways to create
finance mechanisms to address the reduction of
greenhouse gas emissions and other air and non-point
source water pollution problems. The report calls for the
implementation of programs at the state and local levels
to finance the installation of energy efficiency and
environmental improvement devices at public and not-for-
profit facilities such as: local government buildings;
colleges and universities; hospitals; schools; and
churches.
Report Recommendations:
• EPA should urge the States to adopt programs to
facilitate the financing of both energy efficiency and
environmental improvement projects for the benefit
of public agencies as well as not-for-profit
organizations.
• EPA should urge the States to enact statutes either: a)
to create Air Quality Finance Authorities which, as
conduit bond issuers, can access the municipal bond
market to finance such programs, or b) empower
counties and other units of local government to issue
bonds for such purposes.
• EPA should encourage the States to enact statues to
enable localities: a) to enter into voluntary contracts
with homeowners and farmers (the VEIB program),
with local government agencies, and with not-for-
profit organizations, including churches, to finance
energy efficiency and environmental improvement
projects on their premises, b) to finance such projects
through the issuance of taxable or tax-exempt bonds,
as applicable, and, c) to secure such financings by
liens and assessments against the program
participants' real property.
• EPA should initiate discussions with the Department
of Energy, the Department of Housing and Urban
Development, the Department of Transportation, the
Department of the Treasury, the Office of
Management & Budget, and any other relevant
agency to determine whether the Administration
should recommend to the Congress that Section
503(b)(3) of the Internal Revenue Code be amended
to recognize applicable tax credits for energy
efficiency and environmental improvement projects
which are undertaken and used for the benefit of not-
for-profit organizations such as private schools,
churches and private hospitals.
• EPA should work closely with individual States that
are developing and implementing their own new and
innovative programs to finance energy efficiency, air
quality improvement, and non-point source water
pollution projects.
Center for Environmental Finance Progress Report -December 2011
Outcomes:
• EPA is encouraging state and local air agencies to
implement innovative financing options for
homeowners that want to replace older biomass
appliances with more efficient, less polluting units.
The Agency is aware of suggestions to explore
biomass as an energy efficiency option for the
Department of Energy's Property Assessed Clean
Energy (PACE) program. As states implement
legislation to allow the PACE program, EPA is
encouraging them to broaden this legislation to
include other environmental projects.
• EPA is exploring a Voluntary Environmental
Improvement Bond pilot with a state air agency to
help homeowners finance the replacement of older
woodstoves along with improved weatherization.
This pilot has the potential to serve as a testing
ground for the feasibility of a VEIB approach to
financing.
WATER Loss REDUCTION FINANCING
MECHANISMS FOR DRINKING WATER
DISTRIBUTION SYSTEMS (MARCH 2010)
EPA Strategic Goal: Protecting America's Waters
Primary Customer: Office of Water
Report Summary: This report addresses the current
scope of water loss; practices, benefits, and obstacles for
implementing water loss control programs; case studies of
successful water loss control programs, and an overview
of funding mechanisms available. The EFAB examined
financing alternatives to detect and reduce leaks and to
improve water and energy conservation in water
distribution systems.
Report Recommendations: Based on its review, EFAB
made the following findings and recommendations:
8
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Center for Environmental Finance Progress Report -December 2011
• Improved business focus and effective water loss
control will make the best use of the financial
resources available to water utilities. EPA should
encourage utilities to initiate practices to improve
asset management and implement environmental
management systems.
• Increased utility funding will be necessary to initiate,
implement, and continue water loss control programs.
This can be accomplished through existing funding
mechanisms such as user charges; federal, state,
public, and private grant and loan programs; and
revenue bonds.
• Obstacles to implementing utility full cost rate
pricing should be addressed. By maximizing the use
of reasonable financing mechanisms and
incorporating a household affordability rather than
community affordability focus to rate making
practices, communities can better meet their capital
requirements and minimize the cost burden on their
low income residents.
• EFAB endorses water audit and asset management
programs as excellent tools to assist in decreasing
water losses. However, whether a state mandates or
provides incentives to perform water audits and asset
management programs as part of the SRF funding
process, should be determined on a state by state
basis. EFAB notes that where Green Project Reserve
qualification requires that a business case for
improved efficiency be demonstrated, a water audit
and an on-going asset management program are the
best means to accomplishing a successful business
case. States may consider ranking strategies for SRF
funding applications that provide an incentive for
projects that include implementing water loss control
and for systems with existing, successful water loss
control programs.
• States should be encouraged to implement or clarify
requirements for water loss reporting and control.
Further, state regulatory agencies should provide
assistance for implementing water audit practices,
especially for small water supply systems.
• Water projects that do not automatically meet
categorical criteria for "green project" status should
still be able to qualify for the Green Project Reserve
program provided that a sufficient business case for
improved efficiency can be established.
• Small water utilities experience additional challenges
in obtaining sufficient financing to implement water
loss control projects. Regionalization, consolidation,
and cooperative partnerships are mechanisms that can
assist small utilities to improve their economies of
scale, decrease expenses, and provide better access to
limited funding sources. Where feasible and
appropriate, regulatory agencies should facilitate
small utility consolidation or other service provider
relationships, usually with larger neighboring utilities
that can provide infrastructure management and
financing more efficiently.
Outcome: EPA acknowledges that the findings and
recommendations support its ongoing efforts for water
loss reduction and substantiate the need for water loss
reduction projects.
FINANCIAL ASSURANCE: COMMERCIAL
INSURANCE AS A FINANCING ASSURANCE
TOOL (FEBRUARY 2010)
EPA Strategic Goals: Cleaning Up Communities and
Advancing Sustainable Development; Enforcing
Environmental Laws
Primary Customers: Office of Solid Waste and
Emergency Response; Office of Enforcement and
Compliance Assurance
Report Summary: This report addresses the use of
commercial insurance as a financial assurance tool. The
report examines the strengths and pitfalls of insurance, the
value of minimum ratings and capitalization requirements
for insurers, and the feasibility and advisability of
standard policy language for insurance used to provide
financial assurance.
Report Recommendations:
• EPA should augment the existing minimum
requirement that an insurer who provides policies for
finance assurance be licensed in one or more states
with a requirement for an objective third-party
analysis of the insurer's capacity to meet its
obligations.
• In this regard, EPA should consider minimum
requirements to evidence the strength of an insurer
providing financial assurance such as the use of a
minimum acceptable rating from AM Best or a
similar national rating agency. The Board could not
agree on an appropriate minimum acceptable
threshold rating.
• EPA should not require mandatory language for
insurance policies for purposes of RCRA financial
assurance. The Board supports insurance policies that
contain specifically negotiated provisions that meet
the specific characteristics of each insured and each
facility.
• EPA should adopt procedures that encourage all
involved parties (the insured, the insurer, and the
regulator) to explicitly express their expectations
when using insurance as a financial assurance tool.
In particular, the Agency should adopt procedures
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under which the regulatory authority can specifically
agree to or reject limitations contained in the
insurance policy before the carrier becomes legally
obligated to issue the policy.
Outcome: The Agency is developing financial
responsibility rules under Section 108(b) of the
Comprehensive Environmental Response, Liability, and
Compensation Act (CERCLA). The Charge specifically
states that EFAB limit its evaluation to financial
assurance as provided under the Resource Conservation
and Recovery Act (RCRA). However, since many of the
same questions concerning commercial insurance as a
financial assurance tool will arise in developing the
CERCLA 108(b) rules, EPA plans to also consider these
recommendations in developing these rules.
| SUMMARIES OF ONGOING EFAB PROJECTS
The projects described in this section are being examined
by the Board. At the request of the EPA, EFAB is
exploring innovative alternatives for financing clean air
technology, tribal environmental programs, and transit-
oriented development.
CLEAN AIR TECHNOLOGY
EPA Strategic Goal: Taking Action on Climate Change
and Ensuring Air Quality
Primary Customer: Office of Air and Radiation
Project Summary: The purpose of this project is to
explore ways for industries to comply with the industrial
Maximum Available Control Technologies (MACT)
Standards by deploying next generation technologies,
wherever possible. These next generation technologies
are desirable because they not only comply with the new
MACT standards but also reduce CO2 emissions and
provide other additional environmental benefits.
The Board has been asked by EPA to make
recommendations regarding creative financing structures
that will encourage industries to choose to comply with
the new standards through the implementation of new
technologies. EFAB is focusing its work on financing
mechanisms and incentives for a carefully selected group
of new technologies and on industries that would be most
likely to implement new technologies.
Center for Environmental Finance Progress Report -December 2011
TRIBAL ENVIRONMENTAL PROGRAMS
EPA Strategic Goals: Taking Action on Climate Change
and Improving Air Quality; Protecting America's Water;
Cleaning Up Communities and advancing Sustainable
Development; Ensuring the Safety of Chemicals and
Preventing Pollution
Primary Customer: Office of International and Tribal
Affairs
Project Summary: The purpose of this project is to
identify and evaluate approaches for sustainable funding
by tribes of tribal environmental programs. The Board
plans to identify mechanisms that tribes can use to fund
their environmental program implementation on an on-
going basis and to help reduce and/or eliminated the need
for permanent EPA capacity building investments. This
project will help tribal governments improve their overall
financial capabilities and achieve a greater degree of
independence and self-reliance.
TRANS IT-ORIENTED DEVELOPMENT
EPA Strategic Goal: Cleaning Up Communities and
Advancing Sustainable Development
Primary Customer: Office of Policy
Project Summary: EFAB is exploring a range of public
and private financing strategies and models that could be
used to address a variety of transit-oriented development
scenarios. The development scenarios to be considered
will vary from a single transit station, existing and
planned, to multiple-station transit lines, existing and
planned. The Board plans to describe what entities
(public, private, and/or public-private) and what financing
approaches would be best suited for each of the four.
EFAB plans to note any situations that might require
legislation, state and/or federal that might be necessary
for successful implementation.
10
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Environmental Finance
Center Network
This publication (Environmental Finance Program 2010-
2011 Progress Report) was developed under Assistant
Agreement Nos. A196122501-1, A199251916-1,
A197389201-1, A195458610-2, A195458710-1,
A197546707-0, A183458601-2, A197717401-3,
A100T67301-0, and A100J06001-1 awarded by the U.S.
Environmental Protection Agency. It has not been
formally reviewed by the EPA. The views expressed are
solely those of the Environmental Finance Center
Network and EPA does not endorse any products or
commercial services mentioned.
EF@N
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Center for Environmental Finance Progress Report - December 2011
New England Environmental Finance Center
ENVIRONMENTAL FINANCE CENTER AT THE UNIVERSITY OF SOUTHERN MAINE
CT
BACKGROUND & SUMMARY
The Environmental Finance Center (EFC) at the University of Southern Maine, located at the
Muskie School of Public Service in Portland, Maine serves the six states of EPA's Region 1. The
primary purposes of the New England EFC are to:
• advance the understanding of quality of place and practice of smart growth;
• assist EPA in the mitigation of, and adaptation to, climate change; and
• assist in the development of renewable energy resources.
In each case, the New England EFC strives to build local capacity to deal with these and related issues, and to develop and
apply techniques that go beyond compliance with government regulation.
Examples of the New England EFC's accomplishments include:
• Completed a series of over ten smart growth leadership case studies.
• Developed a cutting-edge software approach to financial analysis that municipalities can undertake in preparation
for extreme weather events.
• Chaired six-state commissions and authored numerous publications through the New England Governors'
Conference, regarding regional initiatives to enhance large-scale land protection, economic development, and
quality of place.
• Completed several analytic projects for state and local governments in New England regarding climate change
mitigation and adaptation issues.
i ACTIVITIES & ACCOMPLISHMENTS
COMPLETED PROJECTS & INITIATIVES
Coastal Adaptation Services and Outreach: Using its
Coastal Adaptation to Sea level rise Tool (COAST) in
Groton, CT, the New England EFC developed sea level
rise and storm surge scenarios as part of a climate
adaptation process. This was a first-of-its-kind effort that
brought together federal, state, and local government
interests in strategizing about actions necessary to protect
vulnerable assets in the Town. The included graphic
shows a no-adaptation-action scenario for 1 m of sea level
rise and a 10 year flood event in the year 2070. The z-axis
polygons represent expected lost real estate and building
contents value of over $8 million.
MYSTIC. NO ACTION
2070, 10 YEAR EVENT, LOW
Economic impact visualization of a flood scenario in Groton, Ct.
Adaptation actions subsequently modeled in this location
included installing a hurricane barrier, elevating a road,
and building dikes, each of which could provide some
protection to the vulnerable areas. The tool then displays
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New England EFC
Center for Environmental Finance Progress Report - December 2011
maps with reduced or eliminated polygons, for each
adaptation action being considered. The tool also allows
modeling of ranges of sea level rise and storm surge
frequency and intensity. This provides an opportunity
select expectations of future conditions and visualize
costs and benefits of action versus no-action scenarios.
The Library of Smart Growth Leadership Case
Studies: Working in collaboration with municipal leaders
in each profiled case, the New England EFC completed a
library of over ten case studies to enhance educational
efforts for land use educators, outreach, and extension
agents. This was included as part of the "Next
Communities Initiative," a three-day workshop series on
improving local land use outcomes, delivered numerous
times by the New England EFC.
The New England EFC by the numbers...
• Gave more than 20 presentations to
audiences ranging from 10 to 500 at local
and regional conferences of municipal
officials, planners, state officials, federal
agency representatives, and others
• Hosted more than 10 conferences
• Published more than 10 substantive works,
including peer-reviewed articles, technical
reports, and guidance documents for
municipal officials.
• Provided detailed and ongoing technical
assistance to several communities regarding
adaptation to climate change.
• Developed online tools to support local
agriculture and increased their exposure and
use by local food producers and buyers.
Quality of Place: After extensive public outreach and
vetting through the press, public meetings, and formal
public hearings, as well as prolonged negotiation with the
legislative committee of oversight, Public Law Ch. 483
LD 1389, 124th Maine Legislature, "An Act to Create
Regional Quality of Place Investment Strategies for High-
value Jobs, Products and Services in Maine," became law
in July 2010, formally establishing the Maine Quality of
Place Council. New England EFC Senior Fellow Richard
Barringer chaired the council that will now oversee
implementation of this alternative, regional approach to
landscape conservation, community and downtown
revitalization, historic and cultural preservation,
workforce development, and sustainable economic
growth.
ONGOING PROJECTS & INITIATIVES
New England Governors Conference (NEGC)
Assistance: In September 2009 the New England
Governors approved their Commission on Land
Conservation's (CLC) first report, established the CLC as
a standing commission of the NEGC, and directed the
Chief State Officials from all six states to work with the
CLC to develop five national demonstration projects to:
Keep Farmlands in Farming, Keep Forests as Forest,
Connect People to the Outdoors, Protect Wildlife
Habitats, and Safeguard Coastal & Estuarine Lands. At a
July 2010 meeting the New England Governors accepted
the CLC report (cover shown) and voted unanimously to
support NEGC Resolution 200, directing the CLC and the
Chief State Officers to develop the five national
demonstration projects proposed, in collaboration with the
federal government, affected private partners.
Cover page from an EFC-led report for the NEGC.
NEW PROJECTS & INITIATIVES
Coastal Adaptation Services and Outreach: The
adaptation finance toolset being used by the New England
EFC is being further developed. Work completed in
Groton, CT and other areas will be replicated in other
parts of the country. The software and public process
components of the approach will be customized for each
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New England EFC
Center for Environmental Finance Progress Report - December 2011
new location, to allow evaluation of adaptation actions
and economic impacts according to the needs of each
municipality, under a range of extreme weather event
scenarios such as coastal storm surge.
! BENEFITS & RESULTS
As a result of the Center's ongoing activities and
accomplishments, outcomes have included the following
benefits:
In Groton, CT among other towns, the Center provided
Town staff with visualizations of economic benefits from
adaptation actions they might undertake in response to sea
level rise and storm surge events. Sample feedback
received for workshops given on climate adaptation
finance included "Words cannot express our gratitude for
your contributions to the workshop series!!"
The Center's climate mitigation activities expanded to
include assisting municipalities with payback analyses on
new renewable energy generation facilities they were
considering.
For work with the New England Governors' Conference,
the Center was pleased to guide the unanimous Resolution
200 of the six New England Governors (dated July 12,
2010) to pursue, through their Chief State Officers, five
national demonstration projects to: Keep Farmlands in
Farming, Keep Forests as Forest, Connect People to the
Outdoors, Protect Wildlife Habitat, and Safeguard Coastal
& Estuarine Lands in the face of climate change. The
Center negotiated agreement among the six Chief State
Officers (and in the case of the Forests initiative, New
York, as well), responsible federal officials, and interested
local, private parties on the content of these national
demonstration projects and the process for their
development, and secured commitments from federal
partners within the USDA, the NFS, the USF&WS, and
NOAA to development of the projects.
For work on Quality of Place initiatives, the Center was
pleased to see enactment in Maine law of the Quality of
Place & Jobs Creation legislation initially developed by
the NE/EFC in collaboration with public and local,
private partners, after extensive and successful
negotiation with the Legislature's Business, Research &
Development Committee. Additional work in this area
produced awards to six local non-profit organizations in
the amount of $750,000 by the Environmental Funders
Network - the first year of three years of awards - in
support of local Quality of Place education, mobilization,
and marketing efforts.
Samuel Merrill, Director
Email: smemlKatusm. maine. edu
Phone: (207) 228-8596
http://efc.muskie.usrn.rnaine.edu/
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Center for Environmental Finance Progress Report - December 2011
Environmental
Finance
Center
Syracuse Universe
ENVIRONMENTAL FINANCE CENTER AT SYRACUSE UNIVERSITY
* u
BACKGROUND & SUMMARY
The Environmental Finance Center at Syracuse University (Syracuse EFC), located in the
SyracuseCoE Center for Sustainable Community Solutions, serves the states, tribes, and territories of
EPA's Region 2. Building upon almost seventeen years of success, the Syracuse EFC continues its
mission to enhance the administrative and financial capacities of state and local government officials,
as well as the non-profit and private sectors, to improve local environmental quality and maintain
environmental infrastructure. The primary purpose of the Syracuse EFC is to provide trainings,
resources, tools and technical assistance to the regulated community.
Syracuse EFC accomplishments include:
• Expanded its programs into New Jersey, Puerto Rico and the US Virgin Islands, as well as previously underserved
regions of New York State. Programs promoted sustainable materials management.
• Published and disseminated numerous publications and hosted more than 20 training events and forums.
• Developed new programming in green infrastructure outreach and sustainable materials management, as well as the
Greenprojectexchange.org and NYAgTrader.org.
• Analyzed the effectiveness of the New York State Environmental Facilities Corporations' Green Innovation Grants
Program (GIGP) and their Clean Water State Revolving Fund (CWSRF) scoring pilot project.
• Brought together stakeholders in green infrastructure in Onondaga County and helped secure New York State (NYS)
as a pilot state for the Sustainable Communities Partnership initiative.
ACTIVITIES & ACCOMPLISHMENTS
COMPLETED PROJECTS & INITIATIVES
Green Innovation Grants Program: The Syracuse EFC
conducted an evaluation of New York State's Green
Innovation Grant Program (GIGP). The GIGP was
administered by the New York State Environmental
Facilities Corporation (NYSEFC) as a means to distribute
at least $86 million dollars to "green" water and
wastewater infrastructure projects, as directed by
Congress under the American Recovery and
Reinvestment Act of 2009 (ARRA). The primary purpose
of the Syracuse EFC's study was to identify positive
aspects and areas needing improvement regarding the
GIGP application, selection, and implementation
processes and to assist NYSEFC in improving future
rounds of GIGP. The Syracuse EFC conducted a
multifaceted review of GIGP, including surveys,
demographics, spatial analysis, and research on practices
in all fifty states.
GreenProjectExchange.org: Recently, the Syracuse
EFC launched greenprojectexchange.org (GPE), where
local leaders can share information on innovative projects
that support sustainability in NYS communities. The site
features case studies on a variety of environmental topics,
such as water quality, waste management, sustainable
food, energy efficiency, infrastructure, and conservation.
Visitors to the site can browse the database, borrow ideas,
and network with project leaders.
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Syracuse University EFC
ONGOING PROJECTS & INITIATIVES
Syracuse EFC Provides Technical Assistance for EPA
Pilot Program: The Syracuse EFC received a grant to
provide technical assistance to New York State's
Environmental Facilities Corporation (NYSEFC) for an
EPA Pilot Technical Assistance Program. The program is
part of the recently formed HUD-DOT-EPA Sustainable
Communities Partnership. With the Syracuse EFC's
assistance, New York was one of three states chosen by
the EPA to participate in this pilot project. The project
will promote more widespread adoption of practices that
encourage reinvestment and efficiency in infrastructure
systems. To do this, the New York State partnership will
identify opportunities to incorporate these practices into
the priority systems and intended use plans, to incentivize
smart growth, energy efficiency, asset management and
green infrastructure through the Clean Water State
Revolving Fund (SRF).
Smart Management for Small Communities: The
Syracuse EFC has expanded its elected official training
conferences to reach a larger geographic area. These two-
day conferences include training and discussions on
topics such as: asset management, state/federal program
updates, water/wastewater infrastructure funding, project
development, rate-setting tools, public engagement in
decision-making, and meeting facilitation.
Technical Assistance Partnership Forum: Syracuse
EFC staff organized seven quarterly forums covering
various water and wastewater technical topics. The
forums provide a venue for getting important funding
updates from state and federal agencies while also
allowing consulting engineers, technical assistants and
local government leaders to meet and discuss project
development. Forum topics include water/wastewater
infrastructure planning and funding, state and federal
funding updates; and, presentations on topics such as
smart growth, green infrastructure, and agricultural best
management practices.
Asset Management Trainings: Together with its
partners—the New York Water Environment Association,
NYS Department of Environmental Conservation, RCAP
Solutions, and the Southern Tier West and Central New
York Regional Planning and Development Boards, as
well as the EFCs at the University of North Carolina at
Chapel Hill and Boise State University—the Syracuse
EFC continues to offer regular water and wastewater
Center for Environmental Finance Progress Report -December 2011
Asset Management trainings which include rate setting,
locating and mapping assets, software tools such as
CUPSS, and public education.
NYFoodtrader.org: The Syracuse EFC launched
NYFoodtrader.org, a virtual farmer's market that connects
New York producers, consumers and traders with local
food fresh from the field. NYFoodtrader.org provides
farmers with a no-cost, easy and unique venue for
marketing their products year-round. Farmers can post
items for sale, barter or donation. As rural communities in
New York face challenges to sustain their local
agriculture, supporting local food infrastructure is a first
step toward decreasing energy use and supporting our
local economy. There were more than 7,000 unique visits
to the site during the reporting period.
The Syracuse EFC by the numbers...
• Reached at least 1,200 newsletter readers
• Presented at 23 domestic and international
conferences and training events
• Hosted 17 training events throughout EPA
Region 2 regarding environmental
infrastructure, asset management and project
development
• Facilitated sustainable materials management
meetings in Puerto Rico with more than 80
leaders in partnership with the Governors of
both Puerto Rico and the US Virgin Islands,
as well as meetings in support of the
Sustainable Communities Partnership
• Attracted more than 10,000 visitors to
NYFoodTrader.org and NYAgTrader.org
• Attended sessions, networked, and
collaborated with partners at 21 conferences
and more than 50 evens about green building,
science and policy, water resources
management, sustainable materials
management, energy development, Smart
Growth, and water and wastewater
infrastructure
• Co-hosted two symposiums on environmental
and energy systems, reaching more than 2200
attendees
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Syracuse University EFC
Center for Environmental Finance Progress Report -December 2011
Workers separate paper at one of Puerto Rico's recycling centers
NEW PROJECTS & INITIATIVES
Puerto Rico and Virgin Islands Sustainable Materials
Management: EPA Region 2 Administrator Judith Enck
established the Puerto Rico Recycling Partnership (PRRP)
and a similar group in the US Virgin Islands to promote
waste reduction, reuse, recycling and clean composting.
This working partnership, facilitated by the Syracuse
EFC, includes government (at all levels), non-profit
organizations, citizens, environmental groups, and the
private sector. The PRRP uses a distinctive Collaborative
Governance/Problem Solving process to lead the activities
of the Partnership. The Collaborative Governance model
is recognized as an optimum leadership and management
tool best suited for facilitating and operating in multi-
organizational arrangements. Some Collaborative
Governance methods that are employed by the PRRP
include working groups, task forces, monitoring
committees, process facilitation, advisory groups, and
joint fact-finding.
USDA Solid Waste Management Grant: With support
from USDA's Solid Waste Management Technical
Assistance and Training grant, the Syracuse EFC is
developing new programming to assist rural communities
as they adopt practices that reuse post-consumer
materials, including solid waste management training,
assistance with drafting local resolutions, and citizen
outreach and education.
"Save the Rain"—Green Infrastructure Outreach and
Education in Onondaga County: The Syracuse EFC
was awarded a Green Infrastructure (GI) Outreach and
Education grant from Onondaga County (New York) to
revitalize and grow the "Save The Rain" campaign, which
teaches residents and businesses about the importance of
capturing stormwater. Onondaga County is the first
municipality in the country to be mandated by an
amended consent judgment (ACJ) to use GI to address its
combined sewer overflow (CSO) problems. The project
team will host rain barrel educational workshops, utilize
social media tools, create curriculum for Syracuse City
School District classrooms, host design charettes, work
with the Onondaga (Youth) Earth Corps, create
experiential learning opportunities for community
members and green jobs trainees, and more.
Agricultural Mini-grants: The Syracuse EFC offered
mini-grants to researchers and technical assistance
providers to study agricultural practices and water quality
in New York State. Reports produced included:
Analysis of New York State Agricultural
Environmental Management Program Results,
NYS Soil & Water Conservation Committee in
partnership with Schenectady County SWCD
Agricultural Land Use Effects on Water Quality
in the Skaneateles Lake Watershed: A Habitat
Assessment Using Benthic Macroinvertebrates,
Dr. RussBriggs, SUNY ESF
Handbook for Treatment Wetlands in the
Agricultural/Urban and Suburban Environments,
Dr. Richard Smardon, SUNY ESF
NYAgtrader.org: NYAgTrader.org allows farmers
throughout New York State to advertise and trade any
material that can be used on a farm, such as hay, manure,
equipment, and livestock. Farmers visiting the website
can search by item category and location, and can also
post their own "wanted" items. By connecting farmers,
farm products will be transferred to people who can use
them, which decreases waste. There were more than 3,200
unique visitors to the site during the reporting period.
NYAgTrader.org
Buy-SelMrade Manure & More
Ecosystem Analysis at the Watershed Scale: Together
with the Southern Tier West Regional Planning and
Development Board, the Syracuse EFC will undergo
multi-year process that will lead to the development of a
Watershed Analysis that is sensitive to the transportation
(highway, rail) network, while also considering all other
impacts.
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Syracuse University EFC
Center for Environmental Finance Progress Report -December 2011
BENEFITS & RESULTS
The Syracuse EFC is active in all of the states and
territories it serves. The EFC continues to build upon
foundational work in the Virgin Islands and Puerto Rico
as well as reach areas and communities in New York and
New Jersey that it has not served before.
The Syracuse EFC has secured a contract with Onondaga
County, NY to perform public outreach and education
about green infrastructure. The EFC's expertise with
sustainable materials management and facilitation has led
to work in Puerto Rico and the Virgin Islands, and will
likely lead to further programming there.
The Syracuse EFC helped a number of communities
enact Asset Management plans for their water/wastewater
operations. One such community is the Village of
Wellsville in southwestern New York. Very few
communities in New York State utilize Asset
Management and Rate-setting software, but many more
are beginning to use these tools as a result of Syracuse
EFC trainings.
Puerto Rico has been able to start to plan a public
education campaign for the Puerto Rico Recycling
Program utilizing research done by Syracuse EFC staff on
similar case studies of communities learning to recycle
throughout the US.
Awards received: Leadership Award from
GreeningUSA; Appointments to Onondaga County
Resource Recovery Agency Board, Executive Team of
National Recycling Coalition, ICLEI's STAR Community
Index Technical Advisory Committee and Board of US
Green Building Council NY Upstate Chapter; CenterState
CEO Economic Champion Award, USGBC Leadership
Award
Feedback received:
"A good real life report of how projects and funding/use
& funding being implemented." —Mark D. Colopy,
Fiscal Advisors
"Good variety of interesting topics." —Kathy Bertuch,
Central New York Regional Planning & Development
Board
"The partnership represented by the EFC, OEI, SUNY
ESF, Baltimore Woods, the Onondaga Earth Corps, and
the POC has the expertise to provide superior education
and outreach with the breadth and depth required to
ensure green infrastructure awareness and acceptance
within all segments of the Syracuse community."—
Lenore Seeley, CNY Works
"The Syracuse EFC's efforts to help move recycling
forward in Puerto Rico and the U.S. Virgin Islands have
been essential." Judith Enck, EPA Region 2
Administrator
Sara Pesek, Director
Email: spesek(a)svracusecoe. ors
Phone: (315) 289-2659
http://efc. syracusecoe. org/efc/
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Center for Environmental Finance Progress Report - December 2011
ENVIRONMENTAL FINANCE CENTER AT THE UNIVERSITY OF MARYLAND
BACKGROUND & SUMMARY
The Environmental Finance Center (EFC) at the University of Maryland, College Park, serves
the five states in EPA's Region 3 and the District of Columbia. The primary purpose of the
University of Maryland EFC is to assist local governments, communities, and watershed
organizations in fulfilling their role(s) in effectively and responsibly managing natural resources
at a watershed scale.
The University of Maryland EFC accomplished the following:
• Expanded the knowledge base of decision-makers and conservation professionals through graduate courses,
seminars and conferences on subjects including environmental finance policy and law, energy conservation and
renewables, and financing stormwater management and green infrastructure.
• Analyzed the capacity of local governments and watershed organizations to address resource protection issues in a
sustainable manner, providing recommendations for reducing costs, developing revenue streams, and maximizing
return on investment.
• Supported local food systems and the viability of agriculture in the region through the continued development of
Foodtrader.org andAgtrader.org, websites that facilitate the local market of farm products and equipment.
Park. Speakers shared their expertise on a variety of
financing issues related to the use of wind, solar, waste,
and geothermal energies. The nearly 100 participants
included representatives from all levels of government, as
well as nongovernmental organizations and the private
sector. All presentations were uploaded to the EFC's
website in an effort to further expand the reach of the
conference. Respondents to the post-event survey
unanimously indicated that they can put the information
and tools provided into practice.
ACTIVITIES & ACCOMPLISHMENTS
COMPLETED PROJECTS & INITIATIVES
Eastern Shore Agricultural Collaborative (ESAC):
The implementation of new regulations had strained the
dialogue between the Eastern Shore's farming community
and environmental organizations. To help improve this
situation, The EFC worked with over 50 stakeholders
from Maryland and Delaware's Eastern Shore region to
facilitate collaboration among these groups, with a focus
on identifying more effective ways of improving water
quality in the Chesapeake Bay watershed. The EFC
provided an avenue for this diverse set of stakeholders to
work together to reach realistic solutions in the area of
agriculture education, policy, and outreach, with a focus
on sustainability and a strong agriculture economy.
Sustainable Financing for Renewable Energy: The
EFC organized and presented a full-day conference in
September 2009 at the University of Maryland, College
Port of Baltimore Clean Diesel Program: The EFC was
able to leverage its position in the Mid-Atlantic to take on
an ARRA funded emissions reduction project at the Port
of Baltimore. The EFC led the Port of Baltimore Steering
Committee, as well as four sub-award programs related
specifically to dray trucks, cargo handling equipment,
locomotives, and harbor craft. The EFC provided project
management services including coordinating two truck
financing seminars, providing meeting facilitation for the
Port of Baltimore Steering Committee and sub-award
programs, development and administration of the grant
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University of Maryland EFC
Center for Environmental Finance Progress Report -December 2011
application process, coordination of program partners, and
quarterly and final reporting. In all, more than 80 pieces
of equipment at the Port were replaced, repowered, or
retrofitted to reduce emissions.
Diesel truck
ONGOING PROJECTS & INITIATIVES
Watershed Assistance Collaborative: The EFC is a
founding partner in the Watershed Assistance
Collaborative. This effort, lead by Maryland's
Department of Natural Resources (DNR), better
coordinates some of the State's key technical service
providers, including Maryland Sea Grant and the
Chesapeake Bay Trust in addition to DNR and the EFC.
The assistance provided to Maryland communities and
watershed organizations has improved local government
and NGO capacity to implement watershed protection
efforts
Green Infrastructure Training: The EFC promotes a
green infrastructure approach to planning and resource
protection because it enables communities to realize
multiple community priorities with a few strategically
placed investments. This approach creates efficiencies
that allow communities to stretch local budgets and
optimize the return on their resource protection
investment. To this end, the EFC routinely offers sessions
on green infrastructure financing for local government
officials, watershed organizations, and land trusts. Active
participation in the Green Infrastructure Community of
Practice has ensured that the EFC is able to bring the most
innovative best practices and their associated financing
mechanisms to training participants.
The University of Maryland EFC by the numbers...
• Provided direct and intensive technical
assistance to three Chesapeake Bay
communities through our participation in the
Watershed Assistance Collaborative
• Assisted in building the capacity of six land
trusts and watershed organizations and three
local governments in Virginia, West Virginia,
and Maryland
• Reached more than 100 graduate students
through environmental finance courses
offered by UMD's School of Public Policy
• Facilitated the replacement, repower, or
retrofit of more than 80 vehicles and pieces of
equipment at the Port of Baltimore to reduce
diesel emissions in a leveraged Recovery Act
project
• Gave eight presentations on green
infrastructure financing reaching close to 300
resource conservation professionals
• Hosted three conferences on sustainable
infrastructure financing on subject areas
including water systems, renewable energy,
and goods movement
• Attended more than ten collaborative
roundtables on issues including source water
protection, green infrastructure, smart growth,
and air quality improvement
• Provided a virtual marketplace for farm
products and equipment of close to 1,000
vendors and buyers in Delaware and
Maryland through our family of
Agtrader/Foodtrader websites
• Helped more than 125 drivers learn how to
address vehicle maintenance issues that
degrade air quality and reduce fuel efficiency
• Addressed more than 300 local officials,
utility managers, land preservation
professionals, watershed group staff, and
community organizers at conferences across
the Mid-Atlantic
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University of Maryland EFC
Center for Environmental Finance Progress Report -December 2011
Building Market Opportunities for the Farming
Community: The EFC manages two websites that
provide a virtual marketplace for farm equipment and
products. The Foodtrader.org and Agtrader.org sites
facilitate the purchase of local foods and provide an
additional marketplace for agricultural products. The EFC
also manages a similar set of websites for Delaware and
has worked with three other EFCs to build similar
websites across the country.
Stormwater Financing Feasibility Study - The EFC
convened and facilitated a stormwater work group in
Ocean City, Maryland. This group, composed of Ocean
City stakeholders like the Hotel, Motel & Restaurant
Association, Maryland Coastal Bays Program, Chamber
of Commerce, homeowners associations, and key town
staff, gathered three times to discuss stormwater
infrastructure needs and outreach strategies. The EFC
leveraged core funding for these meetings with state
money from DNR that will fund the project for an
additional year.
Sign used on buses in Ocean City, MD
Building Capacity for Mid-Atlantic Land Trusts:
Spurred by a core-funded financing presentation at
Maryland's annual land trust conference, the EFC
partnered with Defenders of Wildlife and the National
Park Service to collaborate on a project designed to build
both the organizational and conservation capacity of land
trusts in the Chesapeake Bay region. With funding from
the NFWF, this partnership worked with a land trust on
Maryland's Eastern Shore and a land conservancy in
Richmond, Virginia to develop strategic plans for moving
conservation priorities forward.
Clean Car Clinics: The EFC's work with the Port of
Baltimore Clean Diesel Program lead to additional work
with program partner, the Maryland Department of the
Environment (MDE). MDE brought the EFC in to
manage a series of Car Care Clinics aimed at helping
drivers better understand the connection between air
quality, fuel economy, and a well-maintained vehicle.
Seven clinics have been held to date with more than 125
drivers participating.
NEW PROJECTS & INITIATIVES
Sustainable Maryland Certified: Sustainable Maryland
Certified is a new EFC initiative designed to support
Maryland municipalities as they look for cost-effective
and strategic ways to protect their natural assets and
revitalize their communities. This free and voluntary
program will help communities choose a direction for
their greening efforts, complete their chosen actions with
help from program tools, trainings, case studies, and other
resources, and be recognized for their accomplishments.
Using best practices in resource areas like water, air,
waste, energy, equity, and economy, a municipality can
earn points toward sustainability certification. The EFC
intends to replicate success in the other Mid-Atlantic
states.
SUSTAINABLE
MARYLAND
•CERTIFIED-
Logo created for Sustainable Maryland initiative
| BENEFITS & RESULTS
As a result of the ongoing activities and accomplishments
of the Maryland EFC, outcomes have included the
following benefits to communities and individuals:
As a result of EFC assistance though the Watershed
Assistance Collaborative, the Middle Chester Partnership
was awarded $880,000 to continue their work to
implement watershed restoration action strategies through
a collection of innovative agricultural practices, septic
upgrades, and wetland restoration.
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University of Maryland EFC
The lifetime emissions reductions for the equipment
addressed in the Port of Baltimore Clean Diesel program
is estimated to be 780 tons of NOx and 38.5 tons of PM
removed. The experience gained through participation in
this program has expanded EFC's opportunity to address
air quality in the region in several ways: (1) The EFC led
efforts for a regional workshop that brought together key
experts in the trucking industry from Maryland, Virginia,
New York, and Pennsylvania which focused on
information sharing and future regional collaboration; (2)
the EFC is communicating with the Mid-Atlantic
Regional Air Management Association (MARAMA) to
build the framework for an innovative, longer-term truck
financing program that would serve Mid-Atlantic port
communities; and (3) the EFC is also building on its
strong relationship with MDE to develop a potential
project upgrading diesel engines for Maryland's
watermen.
EPA approval of the Sassafras Watershed Action Plan,
which was developed with assistance from the EFC as a
part of the Watershed Assistance Collaborative, makes the
Sassafras River Association (SRA) eligible for additional
Center for Environmental Finance Progress Report -December 2011
funding. SRA is pursuing implementation funding
through the NFWF and various state agencies, and is now
better positioned for an award.
Approximately 20% of Maryland's municipalities have
already committed to be a founding community or have
indicated an interest in registering for the Sustainable
Maryland Certified at the time of its 2011 launch. The
EFC believes this demonstrates the significant resource
gap that exists at the local level and suggests the extent to
which Sustainable Maryland Certified will be able to
assist communities in moving sustainability actions
forward. In addition, this multidisciplinary approach to
decision-making enables communities to gain efficiencies
and maximize the return on local investments.
Joanne Throwe, Director
Email: jthrowe(a>umd.edu
Phone: (301) 405-5036
http:/Avww. efc. umd. edu/
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Center for Environmental Finance Progress Report - December 2011
UNC
ENVIRONMENTAL FINANCE CENTER
ENVIRONMENTAL FINANCE CENTER AT THE UNIVERSITY OF NORTH CAROLINA AT
CHAPEL HILL
BACKGROUND & SUMMARY
Located in the School of Government, the Environmental Finance Center (EFC) at the University
of North Carolina at Chapel Hill (UNC), located at the School of Government, serves the states of
EPA's Region 4. The primary purpose of the UNC EFC is to increase the capacity of public and
private parties to address the financial aspects of environmental protection and service delivery.
The center works to enhance the ability of governments to provide environmental programs and
services in fair, effective and financially sustainable ways. It assists communities; provides training
and policy analysis services; and disseminates tools and resources on topics such as environmental
cost accounting, rate setting, and developing sustainable cost recovery and institutional
managements systems.
The UNC EFC accomplished the following:
• Completed more than 100 training events
• Developed new financial tools for local government water and energy managers
• Analyzed utility practices across the Southeast
• Worked toward environmental protection with public and private organizations
ACTIVITIES & ACCOMPLISHMENTS
COMPLETED PROJECTS & INITIATIVES
Energy Efficiency Retrofit Revolving Loan Programs:
The UNC EFC developed demand analyses to support
Abundant Power's administration of CharlestonSAVES™
and AlabamaSAVES™, two Energy Efficiency Retrofit
Revolving Loan Programs. The analyses identify
customers and geographies in the respective regions with
potential demand for the Energy Efficiency Retrofit
Revolving Loan Fund Programs. The analyses'
conclusions aim to guide the ultimate structuring of the
Programs and will be used as sales management tools and
roadmaps for targeted marketing campaigns in the
program rollout and implementation phases.
Representatives from each SERWQAN community gathered in
Asheville, NC and presented the highlights of their projects. They
shared their experiences in addressing stormwater, watershed
planning, quality growth, stream restoration, and other water
quality
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University of North Carolina EFC
Center for Environmental Finance Progress Report - December 2011
Southeast Regional Water Quality Assistance Network
(SERWQAN):
Under the Targeted Watersheds Grants Program, the UNC
EFC collaborated with the Southeast Watershed Forum,
North Carolina State University and the Alabama
Cooperative Extension System to provide assistance to 14
communities throughout the Southeast. SERWQAN
worked with community leaders, watershed organizations
and other stakeholders to develop skills and implement
practical tools to support watershed protection efforts.
Irrigation Pricing, Policies and Practices in North
Carolina: In the summer of 2008, the North Carolina
General Assembly passed the 2008 Drought Bill,
requiring water systems operated by local governments
and large community water systems to take certain
measures in order to better prepare for and manage
drought conditions. There are management and financial
implications of this legislation that have yet to be fully
explored. UNC EFC research addressed some of those
implications by comparing the irrigation practices,
policies and pricing of twelve of North Carolina's largest
utilities.
Adjusting Water Utility Impact Fees in Chatham Co.,
NC: In May 2010, the UNC EFC helped Chatham County
develop a water utility impact fee structure in which fees
increase depending upon the expected impact of the
individual customer on the county's water system
capacity. The new structure provides incentive for citizens
to engage in more sustainable practices.
Developing a New Revenue Model for Water Rates in
Montgomery Co., NC: A team from the EFC worked
with Montgomery County to reevaluate water rates and
fees for the County. The analysis took into account the
costs to reserve capacity and provide treated water to bulk
service customers. The EFC developed a model that
clarified the need for raising rates and presented the
consequences of not doing so.
Promoting Inter-local Water Partnerships in Surry
County, NC: A team from the UNC School of
Government and the UNC EFC worked with the local
government units of Dobson, Elkin, Mount Airy, Pilot
Mountain and Surry County, NC to examine the
challenges and opportunities for water system
partnerships within the County.
Expanding North Carolina Energy Efficiency and
Renewable Lending Programs: Market Snapshot: The
UNC EFC interviewed more than 20 stakeholders in
North Carolina to gather ideas and insights that could
inform lending policies. Through interviews and research,
the EFC provided key findings for the overall NC energy
efficiency and renewable energy lending program.
UNC EFC by the numbers...
• Co-sponsored or assisted in organizing
more than 30 training events
• Delivered more than 100 presentations
• Taught more than 200 hours
• Developed 9 tools for utility managers and
local officials as well as educational
purposes.
• Provided technical assistance to more than
45 communities
• Published 10 articles on water and
wastewater utility practices
Clean Energy Durham's Home Energy Share and
Compare Tool: The UNC EFC supported the
development of an online tool that allows Durham, NC
residents to track and compare the energy use of their
home and vehicles. This tool is unique in that it enables
people to compare energy use for a particular month of
weather in a specific town.
Assistance for Energy Efficiency and Conservation
Project Funding: The UNC EFC provided training and
direct assistance to local governments, state agencies,
UNC system institutions, public schools and community
colleges interested in applying for NC State Energy
Office EECBG funds.
Financing Options for Boiler Retrofits and
Replacements: The UNC EFC investigated financing
options for boiler owners across the U.S. who will be
affected by the new Boiler Maximum Achievable Control
Technology (MACT) requirements. The rules will reduce
emissions of toxic air pollutants such as mercury, dioxin,
cadmium, and SO2.
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University of North Carolina EFC
Center for Environmental Finance Progress Report - December 2011
Georgia Water Taskforce: UNC EFC served on the
technical advisory panel of the Governor's Water
Contingency Planning Taskforce in Georgia. The
Taskforce was charged with creating a contingency plan
to address Georgia's water issues arising from a federal
judge's July 2009 ruling on Lake Larder. Judge Paul
Magnuson ruled that water supply was not an authorized
purpose of Lake Larder, a water source that the Metro
Atlanta area has come to depend on. The Taskforce
analyzed measures for replacing this water supply,
including building new reservoirs and extensive systems
of reuse water lines. Increasing utility rates in the Metro
Atlanta area is an option being considered to meet the
shortfall in water supply that would result from the Lake
Larder ruling.
ONGOING PROJECTS & INITIATIVES
Georgia Water and Wastewater Rates and Rate
Structures: The UNC EFC and the Georgia
Environmental Finance Authority collected and analyzed
water and wastewater rate structures from almost over
90% of public service providers in Georgia. This
information was integrated into a dashboard, and can
assist elected officials and staff as they make decisions
related to water and wastewater services during budget
preparations.
Rates Dashboard Tools: The UNC EFC updated its
dashboard tools for North Carolina, South Carolina,
Georgia and Virginia. The North Carolina dashboard, for
example, allows users to compare residential and non-
residential stormwater fees charged in 2010 by all of the
NC stormwater utilities. Comparisons are made across
subgroups of utilities with similar characteristics, such as
location, EPA phase, rate structure, and customer income
levels.
North Carolina Water and Wastewater Rates and
Rate Structures: Every year, the EFC and the NC
League of Municipalities collect rate schedules from
hundreds of local government and not-for-profit utilities
across the state. The rate schedules are used to determine
what residential and commercial customers of these
utilities are billed for their water and wastewater service,
at various consumption levels. This information assists
elected officials and staff as they make decisions related
to water and wastewater services during budget
preparations.
Healthy Watersheds through Healthy Forests
Initiative: The UNC EFC is developing a funding model
for the Conservation Trust for North Carolina, one of
three partners on the $6 million national "Healthy
Watersheds through Healthy Forests Initiative" that
advances the connection between forest management and
water quality and quantity.
Water System Capacity Development Support: The
UNC EFC is analyzing the forms of water system
partnerships and interlocal agreements that exist in North
Carolina, and has authored guidelines, tools and maps to
assist water system managers in their capacity to partner
with their neighboring systems.
NC Stormwater Utility Dashboard
*»-: / •
• •* . •••
49 rate structure*
Monthly Non-ReHdefltial Fee
(for 2S.976 IQ ft)
The rates dashboards help utility managers and local officials
analyze water and wastewater rates against multiple characteristics,
including utility finances, system characteristics, socioeconomic
conditions, geography, and history.
NEW PROJECTS & INITIATIVES
Sustainable Finance for Wetlands Programs: The UNC
EFC is researching ways that states and tribes across the
nation fund wetland permitting and protection
programs. The research will result in a model of
sustainable finance to help wetlands programs develop
more consistent funding in times of uncertain grant
prospects and state budget cutbacks. The UNC EFC will
compile and share this information in seminars,
supplemented with relevant skill instruction.
Technical Assistance for Clean Energy Financing: The
UNC EFC joined a national team, including the entire
Environmental Finance Center Network, to provide
financial mechanism support for clean energy to state and
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University of North Carolina EFC
Center for Environmental Finance Progress Report - December 2011
local recipients of American Recovery and Reinvestment
Act of 2009 (ARRA) funding.
! BENEFITS & RESULTS
Feedback:
"The specialized financial assistance provided by the EFC
has been invaluable in our efforts to provide accurate and
reliable financial information and policy advice to the
Board of County Commissioners. The EFC's expertise in
governmental financing has resulted in several
recommendations regarding financial assumptions and
responsible financial management practices for enterprise
funds." —Gayle Wilson, Solid Waste Management
Director at the Orange County Solid Waste Management
Department
Stacey Isaac Berahzer, Senior Project Director at UNC EFC,
received The Georgia Association of Water Professionals Emerging
Leaders Award.
"I want to praise you guys for a wonderful job.
Previously, trying to do a rate comparison on water rates
throughout the state of GA was a tedious and
cumbersome task. You have made it easy, and much more
informative." —Kyle R. Young, ofNotla Water Authority,
regarding the Georgia Rates Dashboard
"I really enjoyed the workshop and learned quite a bit
about stormwater utilities." —Kim Hammond from the
Top of Alabama Regional Council of Governments
following a stormwater workshop in Auburn, AL
Program expansion: The UNC EFC has been expanding
its geographic reach by participating in the Delta
Environmental Summit at Mississippi State Valley
University in July 2010. Sessions discussed key
environmental issues confronting communities in the
Delta, innovative financing and funding opportunities for
environmental projects, building local capacity through
partnerships with local universities, and how to access
federal funds.
The UNC EFC has also expanded its focus into the energy
sector, working with both public and private
organizations.
Community Achievements due to the EFC's work: As
a result of the work that the EFC has done on
water/wastewater rate surveys, and other rate making
tools such as the dashboards and guidebooks, several
utilities have amended their rate structures, resulting in
increased funds for water projects.
Several communities across the country have instituted
new funding strategies for renewable energy and energy
efficiency retrofits through assistance provided by the
EFC.
Jeff Hughes, Director
Email: jhushes(a>sos.unc.edu
Phone: (919) 843-4956
http:/Avww. efc. unc. edufindex.html
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Center for Environmental Finance Progress Report - December 2011
Center for Environmental
Policy and Management
EFC 4 | UNIVERSITY Of LOUISVH1E
ENVIRONMENTAL FINANCE CENTER AT THE UNIVERSITY OF LOUISVILLE
! BACKGROUND & SUMMARY
The Environmental Finance Center (EFC) at the University of Louisville, located within the
Department of Sociology, serves the states of EPA's Region 4. The primary purpose of the
Louisville EFC is to implement innovative approaches to answer the "how to pay" questions
regulated entities and communities face when addressing environmental issues. The Louisville
EFC provides technical assistance, education, and expertise to local, state and tribal governments,
businesses, and non-profit organizations.
The Louisville EFC accomplished the following:
• Published four practice guides and worked toward the publication of three additional practice guides.
• Published seven reports and handbooks.
• Published two academic publications and one academic working paper.
• Co-sponsored/co-organized six Louisville-based Sustainable City Series lectures.
• Launched the Kentucky FoodTrader on-line farmers' market.
• Assisted the Metro Louisville's Green City Partnership in the development of a Climate Action Report.
• Facilitated workshops at the national and local level.
• Assisted the National American Sociological Association in developing 'green' practices for national and regional
conferences and Association activities.
• Assisted the Forecastle Festival, one of the nation's top 15 outdoor festivals, in advancing and adopting green
practices to support environmental activism.
• Assisted the Louisville-based Festival of Faiths by chairing a community garden committee that resulted in two new
gardens being established in poverty-stricken neighborhoods identified as local food deserts.
• Assisted the University of Louisville in its Sustainability Plan.
ACTIVITIES & ACCOMPLISHMENTS
COMPLETED PROJECTS & INITIATIVES
Reports and Technical Assistance
The Louisville EFC completed the following reports,
which were partially funded by grants and contracts
outside of the core EFC grant funding. The technical
assistance in each of these areas continues and is ongoing:
Vick, J. (2010). 2010 State of Metropolitan
Housing Report: A Housing Policy Roadmap for
Louisville
Vick, J., McCoy, M., Piuma, P., Heberle, L.,
Dyer, J., Coomes, B., Bourassa, S., (2010)
Schoolyards as Resources for Learning and
Communities: A Design Handbook for Kentucky
Schools.
Piuma, P., McCoy, M., Vick, J., and Dyer, J.
(2010). Portland Elementary Schoolyard Report
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University of Louisville EFC
• Piuma, P., McCoy, M, Vick, I, and Dyer, J.
(2010). Cane Run Elementary Schoolyard Report
• Arnold, C., Norton, C., and Wallen, D. (2009).
Kentucky Wet Growth Tools for Sustainable
Development
• Vick, J., Norton, C., and Nordin, G. (2009).
Jeffersonville (IN) Housing Inventory Study
• Vick, J. and Norton, C. (2009). 2009 State of
Metropolitan Housing Report
Practice Guides
The EFC continues to produce practice guides and
develops new topics each quarter, often upon request. The
Louisville EFC completed the following practice guides:
• #23 Water Pricing and Rates Dashboards
• #24 Sustainable Construction Policies in EPA
Region IV
• #25 Urban Agriculture and Soil Contamination:
An Introduction to Urban Gardening
• #26 Concentrated Animal Feeding Operations:
What Are the Potential Community Costs?
The University of Louisville EFC by the numbers...
• Reached more than 2,000 people and
organizations through quarterly newsletters
• Gave 16 presentations at 11 different
conferences and workshops
• Attracted an average of 300 people to each
of its Sustainable City Series
• Published and posted four new Practice
Guides
• Published a statewide handbook on water
conservation and quality
• Published two regional housing reports
• Published two schoolyard design reports
• Published one statewide schoolyard garden
handbook.
• Had over 4,000 unique visitors to its
Kentucky Food Trader website
• Attended 16 conferences covering an array
of topics on sustainable practices and
policies
Center for Environmental Finance Progress Report - December 2011
Publications
Meyer, P.B., Heberle, L. (2010). Local Climate Change
Initiatives in the United States: The Primacy of Short-
Term Economic Returns in Local Governments and
Climate Change: Sustainable Energy Planning and
Implementation in Small and Medium Sized Communities.
van Staden, M. and Musco F (eds). Advances in Global
Change Research Volume #39. Springer Dordrecht,
Heidelberg, London, New York. Pp 181-190.
Arnold, C. and Norton, C. (2010). A Voice is a Terrible
Thing to Waste. American Planning Association's
Planning, Volume 76, Number 7. Pp 38-42.
Working Paper: Martin-Rutherford, J., Rausch, S.,
Norton, C., Lacy, P., and Meyer, P.B. (2009) Effects of
Public Sector Interventions on Adjacent Land Values:
Waterfront Park in Louisville, Kentucky.
Brownfields Institute
Brownfields Institute: The Louisville EFC completed
the Brownfields Institute that increased community
participation in brownfield redevelopment in socio-
economically distressed neighborhoods. This project was
funded outside the core EFC grant. The project held 30
workshops for local stakeholders attracting 40-50
participants to each session. The stakeholders were
exposed to federal, state and local brownfields policy,
financing strategies, methods of augmenting community
participation, land use inventories, debates about how
clean is clean, planning techniques and tools, as well as
economic and community development strategies. The
stakeholders were named to a city driven master planning
task force to develop an economic development
implementation plan for the Park Hill Corridor. Activities
that develop tools for community participation in
environmental decisions will become part of the EFC
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University of Louisville EFC
Center for Environmental Finance Progress Report - December 2011
mission. Two projects developing from this effort include
providing technical assistance with financing options and
environmental safety for stakeholders developing
community gardens and public art initiatives in the urban
core.
ONGOING PROJECTS & INITIATIVES
Practice Guides and Reports: The EFC will develop
new practice guides and reports. Currently we are looking
at a new series on safe soils that will include information
about safe container gardening, financing urban
agriculture projects, policy barriers to urban agriculture,
and a design and safe soil guide for religious
organizations who wish to transform their property into
gardens for local residents and members to be modeled on
the guide for schools.
NEW PROJECTS & INITIATIVES
Schoolyard Planning and Design Services: The
Louisville EFC is collaborating with UofL's City
Solutions Center on a Schoolyard Project. The project
involves assisting schools facilitate a community-based
process to redesign their property. The intent is to extend
the learning environment to the school grounds (outdoor
classrooms) and link the design to the schools'
environmental curriculums, as well as promote
community development and investment through the
redesign process. Each schoolyard report includes a
completed conceptual design plan for a shared outdoor
learning and community space. These schoolyards will
enhance an environmental studies curriculum at each
school, as well as serve as a meeting, recreation, and
event space for the surrounding community. To date we
have completed two reports and one state level handbook
on the subject. We intend to continue to reach out to
additional schools.
Urban Agriculture Technical Assistance: The
Louisville EFC is focusing attention on urban agriculture
policies and practices. As such, the Louisville EFC has
provided technical assistance to EPA Region 5 regarding
policy development for safe soils and urban
agriculture/community gardens by participating in the
development of two webinars and one onsite work shop
with the goal of creating a decision tree for policy makers
and program developers.
This new initiative is important in that there are no
consistent recommended levels of safety for many
contaminants commonly found in urban soils. The goal is
to assess the state of knowledge, identify holes, and
communicate this information in a usable fashion to lay
people engaged in a wide variety of urban agriculture. In
addition, the Louisville EFC will provide technical
assistance and capacity building services for individuals,
organizations, and agencies wishing to develop urban
agriculture, community garden and public art projects in
urban areas where environmental maintenance and safety
are of concern.
Urban agriculture
I BENEFITS & RESULTS
Communities and individuals have benefitted from the
EFC's activities in a variety of ways. Our practice guides
have been accessed by people from across the country and
have proven to be useful to them in understanding
sustainable development, energy efficiency, land-use
planning and revitalization, utility management, and safe
soil practices. They have been cited on many different
environmental resource websites including the EPA. Our
reports provided many communities with succinct
Safe Soils
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University of Louisville EFC
summaries and resources for addressing housing,
transportation, land use codes, utility costs, watershed
protection and safe, environmental schoolyard designs.
Workshops we have held or sponsored produced new
community connections, increased knowledge of how to
address climate change, sustainability, and urban
agriculture.
As a result of the national reach of their practice guides,
the EFC @UL receives calls for technical assistance from
all over the country ranging from the Danish Consulate in
Chicago wishing to understand how the U.S. handles
environmental contaminant records to small towns in
Center for Environmental Finance Progress Report - December 2011
eastern Kentucky wishing to brainstorm about financing
structures to help them address their commitments under a
CSO consent decree, to individuals who want to know
what to do about a neighbor who has sprayed diesel fuel
on their yard as a weed killer.
Lauren Heberle, Director
Email: lauren.heberle(a>louisville. edu
Phone: (502) 852-4749
http://cepm. louisville. edu/contact. htm
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Center for Environmental Finance Progress Report - December 2011
Maxine Goodman Levin
College of Urban Affairs
ENVIRONMENTAL FINANCE CENTER AT CLEVELAND STATE UNIVERSITY: GREAT
LAKES ENVIRONMENTAL FINANCE CENTER
IL IN
BACKGROUND & SUMMARY
Since 1995, the Great Lakes Environmental Finance Center (GLEFC) of the Maxine Goodman
Levin College of Urban Affairs at Cleveland State University has served the six states of EPA's
Region 5. As its overarching mission, the GLEFC helps communities develop innovative, cost-
effective and quality financial and operational strategies for improving environmental and
sustainable economic development. The GLEFC provides applied research, technical assistance,
and training on emerging issues in innovative environmental finance, reduction in transportation-
related carbon emissions, land-banking strategy development, urban revitalization, lead abatement,
and drinking water and wastewater infrastructure asset management and financial health.
The Great Lakes Environmental Finance Center accomplished the following:
• Conducted applied research studies for federal, state and local government, and not-for-profit clients
• Provided technical assistance to public and not-for-profit organizations on issues of urban redevelopment, state and
local government finance, innovative finance, and infrastructure finance and management
• Facilitated the urban redevelopment strategy for the State of Ohio
• Conducted economic impact analysis for state and local government and not-for-profit organizations
• Convened the Northeast Ohio Storm water Training Consortium
• Conducted storm water training for elected and appointed public officials
ACTIVITIES & ACCOMPLISHMENTS
COMPLETED PROJECTS & INITIATIVES
Environmental Finance White Paper Series: The
GLEFC in partnership with the International Center for
Environmental Finance conducted a series of applied
research projects for the U.S. EPA, for both the Clean
Water State Revolving Fund Branch in the Office of
Wastewater Management and for the Smartway Transport
Partnership. The whitepaper series produced reports on
innovative financial strategies for SRFs and the Smartway
Transport program. Those white paper reports include:
• The Untapped Potential of Using Guaranties in the
Clean Water State Revolving Fund (SRF) Program'.
explores the use of SRF funds as loan
guarantees/credit enhancements to improve the bond
rating on publically issued debt and to reduce the cost
of capital. The white paper relates to EPA Goal 2:
Protecting America's Waters by expanding the
supply of capital to increase the investment in aging
infrastructure.
Nutrient Trading: explores new strategies to enhance
the market based approaches to nutrient trading in
watershed based geography (e.g. Chesapeake Bay
Watershed across all state, not just the current
program in Pennsylvania). The white paper also
relates to EPA Goal 2 by expanding the supply of
capital.
A Strategy for Financing New State Air Quality
Finance Authority Programs through the Clean
Water State Revolving Funds: recommends the use of
Clean Water State Revolving Funds to leverage the
financing of State Air Quality Finance Authorities in
reducing (diesel emission generated) nitrogen in
bodies of water.
Smartway Transport Finance', explores new
strategies to build financial mechanisms to assist
trucking fleets or individual truckers in retrofitting
aging diesel trucks (and stationary equipment) with
Smartway type equipment to reduce the diesel
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Center for Environmental Finance Progress Report - December 2011
emissions from operating or idling equipment. The
paper explores the use of financial intermediaries,
such as regional organizations or enterprises,
including port authorities, truck stops, to help
underwrite or facilitate the financing of Smartway
type retrofits. .
Satellite image of the Great Lakes from NASA's Earh Observatory
Ohio Urban University White Paper Series: The
GLEFC in partnership with the Ohio Urban University
Program (UUP) published a white paper series resulting
from a series of government finance forum sessions in the
state capital, Columbus, Ohio. Each white paper is
composed of the comments made by the forum
participants, including GLEFC staff. The white paper
series included the following reports:
• Fixing A Broken System: A Case of Ohio Leadership
in Innovative Bond Finance', explores the post-2008
state of the municipal bond market and the
implications for the replacement and maintenance of
infrastructure.
• Priming the Pump: An Analysis of the Nation's Water
Needs: The white paper explores the need, cost,
capacity and willingness to finance the nation's
network of water infrastructure.
• Can Long-term Gain Come from Budgetary Pain?'.
The white paper explores the budgetary climate of
state governments and implications on the finances of
state and local governments. The white paper relates
to all of EPA's Strategic Goals.
Technical Assistance Projects: The GLEFC provided
technical assistance to public and not-for-profit
organizations on issues including urban redevelopment,
state and local government finance, capital planning and
finance, infrastructure finance and management, and
strategic planning. Those projects include:
• Aerotropolis Feasibility Study for a consortium of 7
local governments in northeast Ohio, to test the
feasibility of an economic development strategy
centered around the Cleveland-Hopkins International
Airport. The strategy links all transportation,
infrastructure, cargo, new business development and
corporate relocation related activities to a region with
an airport serving as the geographic hub as well as
the center of the product development, supply chain
transportation and shipping/cargo strategies.
• Chesapeake Fund Nitrogen Trading Market,
environmental finance technical assistance for the
establishment of a nutrient trading system for the
Chesapeake Bay area. Provided technical assistance
in defining best practices analysis of the attributes of
a nutrients trading market.
• Land bank and Storm Water, the City of Cleveland
has 22,000 vacant parcels of land, the surrounding
inner-ring suburbs in Cuyahoga County have an
additional 20,000 vacant properties. The GLEFC has
provided information and analysis for the Cuyahoga
County Land Bank, which is the transitional owner of
many of the properties, and the regional sewer
authority to define strategies to utilize the vacant land
to reduce the flow of storm water into the sewer
system.
• Build Up Greater Cleveland Strategic Plan, for the
northeast Ohio infrastructure advocacy organization
focused on planning and financing road and bridge,
water, sewer/water treatment, and transit
infrastructure.
Economic Impact Analysis: Economic Impact Analysis
of the Development of the Medical Mart and Convention
Center, The GLEFC conducted an economic impact
analysis of Chicago Based Merchandizing Mart
Properties, Inc. (MMPI) development in Cleveland, the
Medical Mart and Convention Center redevelopment in
downtown Cleveland.
Historic Preservation Tax Credit Economic Impact
Analysis, The GLEFC has conducted an economic impact
analysis of the Ohio Historic Preservation Tax Credit
program for Heritage Ohio, the historic preservation
advocacy organization in Ohio. The impact analysis
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Center for Environmental Finance Progress Report - December 2011
considered the quantitative impact as well as the catalytic
effect on urban redevelopment.
Provided Training: The GLEFC initiated the Northeast
Ohio Storm Water Training Council, consisting of public
and not-for-profit sector organizations providing
environmental training, including storm water/NPDES
training, to local elected and appointed public officials
across northern Ohio. The GLEFC initially convened the
Training Council to develop a regularly scheduled
offering of storm water related training courses, with a
consistent curriculum, strategies for seeking training
funding, and with a defined network of training resources
including facilitators and speakers. The Training
Consortium meets on a regular basis throughout the year.
The GLEFC offered/and or partnered on 6 storm water-
related training events providing professional training, in
the classroom and on a development site, to over 500
elected and appointed public officials, private sector
engineers and planners, and developers.
Provided public finance training to city and county
councils (Cleveland, Wooster, and Cuyahoga County)
including budgeting, debt markets and debt financing,
capital budgeting and finance, and council roles in the
process.
The Great Lakes EFC by the numbers...
• Averaged 159 daily hits to their website and
their reports were downloaded more than
8500 times
• Hosted 3 Public Forums, Speaker in 2 of the
Forums, MC in 1 Forum
• Hosted 6 Storm Water Training Sessions,
attracting more than 500 participants
• Worked with over 400 Google News Alerts
on print, radio and television news media
• 15 print media interviews, 7 radio show
interviews, and 4 television interviews
• Provided technical assistance to 15
communities
Participated in strategy sessions with EPA Region 5
staff: The GLEFC actively participated in the following
EPA Region 5 activities:
• Sustainable Development Committee (with
commercial bankers, investment bankers,
developers, insurance executives, etal.), defining
obstacles to sustainable real estate development.
Relates to EPA Goal 3.
• Region 5 conference/discussion of venture capital
and environmental inventors and the
commercialization of environmental products.
Relates to EPA Goal 3.
• Region 5 Green Venues planning and demonstration
projects, for recycling at major venues including
stadiums, arenas, hospitals, museums, universities,
etc.
ONGOING PROJECTS & INITIATIVES
Sustainable Development: The GLEFC has been
working with EPA Region 5 on defining the obstacles to
sustainable development, as an ongoing conversation as
well as participating/participating in Chicago based
sustainability meetings and conferences. The GLEFC will
continue to convene the Northeast Ohio Storm Water
Training Council, providing environmental training,
including storm water/NPDES training, to local elected
and appointed public officials across northern Ohio. The
Training Consortium meets on a regular basis throughout
the year to design and coordinate sessions.
Training: The GLEFC will continue to offer and partner
on 6 storm water related training events providing
professional training, in the classroom and on a
development site to elected and appointed public officials,
private sector engineers and planners, and developers.
NEW PROJECTS & INITIATIVES
Redevelopment strategy for the City of Rittman, Ohio:
Assisting the City of Rittman in developing alternative
strategies to facilitate the remediation and redevelopment
of a large industrial property in the city.
Clean Ohio Revitalization Fund, Economic Impact
Analysis: The economic impact analysis of the eight
funding cycles of the environmental remediation
financing agency will consider the direct, indirect, and
induced impacts that have resulted from the state's
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Center for Environmental Finance Progress Report - December 2011
leveraged investments in the redevelopment of challenged
real property.
Beyond Planning: Developing Financial and
Institutional Capacity for Community Development
Project Implementation for the EPA-DOT-HUD
Partnership for Sustainable Communities. Assist the
Region 5 and Headquarters staff in development of a
strategy to increase the rate of success in EPA funded
local remediation projects through planning and technical
assistance.
BENEFITS & RESULTS
The GLEFC's expertise in development,
capital/infrastructure, and bond financing has attracted
clients from Region 5 and throughout the country,
including providing technical assistance and speaking at
national conferences and meetings.
The GLEFC has a significant base of repeat clients,
including the Ohio Department of Development, who has
hired the GLEFC for several projects since the creation of
the Clean Ohio Revitalization Fund (CORF). Work
included developing the policies for the administration of
the CORF program, the decision rules for the
dissemination of grants and loans, an evaluation of the
first year of operation, an evaluation of the first complete
(4 year) funding cycle of CORF, and state-wide focus
groups to determine the perception of effectiveness after
the second completed funding cycle. They have recently
engaged the GLEFC to conduct an economic impact
analysis of CORF's two completed funding cycles.
The GLEFC has been hired to work (outside of the core
grant) by the U.S. EPA, U.S. Department of Labor, U.S.
Department of Education, and with repeat engagements
by the U.S. Department of Housing and Urban
Development, the U.S. Department of Commerce:
Economic Development Administration and the National
Oceanographic and Atmospheric Administration.
The GLEFC's development of a Land Bank Strategy for
greater Cleveland is considered one of the most
innovative land bank operations in the U.S. The quick
foreclosure process sets it aside from all other land banks
by taking foreclosed and vacant properties before
speculators can attach those properties, and by utilizing an
increment of the real property transfer tax as the principal
revenue source.
Kevin E. O'Brien, Executive Director
Email: k. e. obrien(a)csuohio. edu
Phone: (216) 687-2188
http://urban.csuohio.edu/slefc/
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Center for Environmental Finance Progress Report - December 2011
^
NEW MEXICO
ENVIRONMENTAL
FINANCE CENTER
ENVIRONMENTAL FINANCE CENTER AT NEW MEXICO INSTITUTE OF MINING AND
TECHNOLOGY
MT
WY
ND
SD
UT
CO
BACKGROUND & SUMMARY
The New Mexico Environmental Finance Center (NM EFC) at New Mexico Tech, serves the
eleven states of EPA's Regions 6 and 8. The primary purpose of the NM EFC is to assist state,
local and tribal governments in meeting environmental infrastructure needs and achieving
regulatory compliance through state and local capacity building, effective management, and
technical information transfer.
The NM EFC accomplished the following:
• Provided asset management training and assistance at national, state, and local levels
• Began work on a video-based interactive asset management training manual for use by state and local governments
in learning, teaching and implementing asset management
• Improved compliance and public health protection in Tribal drinking water systems
• Worked directly with communities to increase technical, managerial, and financial capacity
• Assisted communities with analysis and implementation of leak detection strategies
• Facilitated coordination between state and federal agencies to improve services to small water and wastewater
systems with compliance issues
ACTIVITIES & ACCOMPLISHMENTS
COMPLETED PROJECTS & INITIATIVES
Promoting Sustainability through Asset Management:
The NM EFC presented interactive workshops on
developing asset management plans and utility rate setting
for communities throughout New Mexico. In 2010, the
NM EFC hosted the first meeting of a new state-wide
asset management user group and sponsored a visit to
New Mexico by Ross Waugh, a prominent asset
management consultant from New Zealand. Mr. Waugh
met with the Albuquerque Bernalillo County Water
Utility Authority, the NM Asset Management User Group
and numerous NM state agencies. In addition, the NM
EFC worked with state agencies in New Mexico, Texas
and Arkansas to assist with streamlining regulatory and
funding functions.
Asset Management Training and Assistance: The NM
EFC, under funding from the NM Department of Finance
and Administration, provided asset management trainings
to communities seeking additional points for asset
management on CDBG applications. In addition, under
multiple contracts, the NM EFC provided direct
assistance to several small communities in New Mexico
in completing asset management plans.
J
Ross Waugh, asset management expert from New Zealand, speaking
to asset management user group in Albuquerque, NM
Management Training for Tribal Managers: In 2009,
under a contract with the Indian Health Service, the NM
EFC presented two 3-day management workshops in
Arizona and Washington. These trainings for tribal utility
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New Mexico Tech EFC
Center for Environmental Finance Progress Report - December 2011
managers covered asset management, capital planning
and budgeting, utility rate setting, and regulations.
The New Mexico Tech EFC by the numbers...
• Examined leak data on 14,000 fire hydrants
for Albuquerque Bernalillo County Water
Utility Authority
• Held 18 training events for communities in
New Mexico, attracting over 400
participants representing 175 communities
• Performed 10 capacity assessments for
Texas water systems
• Held 18 training events for tribal water
operators and managers, with over 375
participants, including representatives from
over 46 tribes from 7 states
• Assisted 98 tribal water systems in the
preparation of Consumer Confidence
Reports
• Administered 9 tribal operator certification
exams
• Performed 24 Multiple Barrier Evaluations
at Tribal water systems in New Mexico
• Performed 31 Sanitary Surveys for drinking
water systems in Wyoming
• Conducted 2 stakeholder meetings to
facilitate regional compliance with 60
attendees
• Facilitated meetings with 57 attendees
resulting in the establishment of the Texas
Water Infrastructure Coordinating Council
• Hosted asset management user group with
37 participants representing 16 communities
• Gave presentations at 17 conferences,
attracting over 1200 conference participants
Identifying Solutions for Small Water Systems in
Texas: The NM EFC, under a contract with Parsons,
conducted capacity assessments for small water systems
in order to evaluate the ability of the water systems to
achieve regulatory compliance. The NM EFC also
facilitated stakeholder meetings in the Waco, TX area to
explore regionalization options to address compliance
issues in thirteen water systems.
Sanitary Surveys in EPA Region 8: In 2009 and 2010,
under a task order agreement with EPA Region 8, the NM
EFC conducted sanitary surveys for public drinking water
systems in Wyoming.
ONGOING PROJECTS & INITIATIVES
Appropriate Solutions to Environmental Challenges:
Under the core grant, the NM EFC continues to assist
state and local governments with capacity building using
tools such as asset management and energy efficiency and
promotes sustainable approaches across the country at
meetings, training and conferences. In addition, the NM
EFC is creating uniform financial reporting forms and
standards to evaluate funding applications and user rates.
Assistance to the ABCWUA in Asset Management and
Leak Detection: Under two contracts with the
Albuquerque Bernalillo County Water Utility Authority,
the NM EFC continues to provide assistance and training
with their asset management program. In addition, NM
EFC works with the Authority to evaluate potential leak
detection strategies and to develop a strategic water loss
reduction program.
Digging up leaking water lines in Albuquerque, NM
Development of Kansas Asset Management CD: Under
a contract with the Kansas Department of Health and
Environment, the NM EFC is developing a video-based,
interactive asset management training manual. The EFC
has interviewed representatives from 13 water and
wastewater systems in 6 states, discussing their
experience with asset management. The manual is
intended to help water and wastewater systems with asset
management and energy efficiency and to assist agencies
in providing training.
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New Mexico Tech EFC
Video production for interactive asset management guide in
Cincinnati, OH
Tribal Drinking Water Program for EPA Region 6:
The NM EFC has been working with public water
systems representing Native American Tribes since 1996.
Under a continuing contract with EPA Region 6, the NM
EFC assists Tribal water systems in promoting public
health through safe drinking water by providing
compliance monitoring, technical assistance, managerial
and financial capacity building, public education,
voluntary plan review, training, information management
and water operator certification.
Multiple Barrier Approach training at Acoma Pueblo, NM
Environmental Document Review: Under a contract
with the New Mexico Finance Authority, the NM EFC
evaluates environmental documents submitted by
communities seeking funding (including ARRA funding)
through the Drinking Water State Revolving Loan Fund.
Center for Environmental Finance Progress Report - December 2011
NEW PROJECTS & INITIATIVES
• Energy Efficiency at Water and Wastewater
Facilities (Goal 1)
• Region 8 Training and Tribal Assistance (Goals
2, 3 & 5)
• Climate Change Adaptation for Tribes (Goals 1,
2&3)
• Source Water Protection Website (Goal 2)
| BENEFITS & RESULTS
Tribal Operator Training: The NM EFC provided
training to tribal water system personnel, resulting in
improved compliance with drinking water regulations and
increased operator and manager competency.
Putting together a chlorine pump—tribal training on disinfection,
Albuquerque, NM
Examples of feedback from trainings:
"Let everyone know at the EFC to keep up the great work
and assure them that they have been doing us a big
service." -Strallie Edaakie, Sr., Utility Manageer, Pueblo
ofZuni
"You folks are doing a good job of keeping us up to date
on the regs." -participant at Understanding Compliance
Monitoring Training
Asset Management: The NM EFC has become
recognized as a leader in the area of asset management for
water and wastewater infrastructure. After actively
promoting asset management and its benefits in New
Mexico for several years, the NM EFC is now advancing
asset management across the country. The benefits of this
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Center for Environmental Finance Progress Report - December 2011
work include improved operations, compliance and
management.
Participants at the organizing meeting for the Texas Water
Infrastructure Coordinating Council in Austin, TX
Specific training examples:
• Workshop Training: The NM EFC has trained over
400 people from 175 communities. Many of these
communities are now helping others via the asset
management user group initiated by the NM EFC.
• Training Feedback:
"...wonderful, not only for asset management, but
also for annual budget planning" -participant at
Asset Management for CDBG Applicants training
"...with limited resources a rural water system can
provide a good sustainable water system and good
customer service in implementing an asset
management plan" -participant at Asset Management
for CDBG Applicants training
• Video-Based Interactive Training: The videos
created for the asset management training manual
have already been shown at over 15 meetings and
conferences and have sparked enthusiastic interest
across the county.
Small System Compliance Assistance: The NM EFC
has been a leader in assisting states with bringing small
water systems into regulatory compliance. Some
examples include:
• Texas Water Infrastructure Coordinating Council
(TWICC): NM EFC facilitated 2 meetings of state
and federal funding agencies in Texas which resulted
in the formation of this council to coordinate funding
efforts in Texas.
• Water System Regionalization: NM EFC
• Facilitated meetings in Waco, TX to initiate
regionalization efforts that will result in thirteen
systems achieving regulatory compliance.
• Arkansas Water and Wastewater Small Systems: NM
EFC worked to help the state of Arkansas to address
non-compliance in small water and wastewater
systems.
Heather Himmelberger, Director
Email: heath erh (a)efc. nmt.edu
Phone: (505) 924-7028
http://nmefc. nmt. edu/
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Center for Environmental Finance Progress Report - December 2011
ENVIRONMENTAL
FINANCE CENTER
NE
KS
IA
MO
ENVIRONMENTAL FINANCE CENTER AT THE HUGO WALL SCHOOL, WICHITA
STATE UNIVERSITY
BACKGROUND & SUMMARY
The Environmental Finance Center (EFC) at Wichita State University (WSU), located in the Hugo
Wall School of Urban and Public Affairs, serves the 4 states of EPA's Region 7: Iowa, Kansas,
Missouri and Nebraska. Established in 2010, the EFC at the HWS is the newest EFC in the
Network. The mission of the EFCN is a perfect fit with the current activities of the Hugo Wall
School, including water resource policy development, capacity building, community engagement and public finance.
The primary purpose of this newly created EFC is to provide education and training to assist communities to better
understand environmental issues; and provide resources and technical assistance to manage and pay for environmental
projects. In particular, the center promotes financial capacity on environmental issues through on-site technical assistance and
training, conference/seminar presentations, and other outreach activities such as hosting workshops and developing guidance
documents.
The EFC at Wichita State University accomplished the following:
• Instituted itself as the Environmental Finance Center for Region 7 by working to make its presence known
throughout the Region through meeting with government, non-profit, and business sectors
• Conducted sessions with key stakeholders in Region 7 to gain input on regional service needs and areas the EFC's
expertise can be best utilized
• Attended meetings and conferences to inform organizations about the services the Environmental Finance Center
can provide, as well as gain a perspective on what assistance they feel is needed in the Region
• Developed partnerships with technical providers in the Region to provide assistance with current programs and
initiatives, as well as future projects
• Presented at a variety of environment and finance related meetings/conferences for state, local and non-profits on
the services the EFC provides
• Served as an educational resource for local and state governments on water and wastewater projects
WICHITA STATE
UNIVERSITY
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Wichita State EFC
Center for Environmental Finance Progress Report - December 2011
i ACTIVITIES & ACCOMPLISHMENTS
NEW PROJECTS & INITIATIVES
Energy Management Initiative for Water and
Wastewater Utilities: Wastewater and water utilities
require a lot of energy. With rising energy costs and
implications for climate change, energy management is
one of the most salient issues facing wastewater and water
utilities today. A systematic approach for managing the
energy challenges water and wastewater utilities face is
the best way to address these issues while remaining
financially and environmentally sustainable. The initiative
will provide training and resources to allow communities
to develop energy management plans to reduce their
energy use by at least 15%. Money saved can then be
used to improve the aging infrastructure of water and
wastewater plants. The EFC will facilitate partnerships
among participating municipalities, state water and
energy organizations, electric utilities, and specialty
training providers. The EFC will also help communities
identify funding sources for their energy efficiency
projects. This initiative assists in accomplishing two of
EPA goals. Goal 1 is met by encouraging system energy
use reductions, resulting in fewer greenhouse gases
emissions thus improving air quality and reducing
impacts to climate change. Goal 2 is met through
encouraging better utility management which decreases
the chances of system failures that could result in negative
water quality impacts.
Nonpoint Source Revolving Loan Fund Development:
The Kansas Department of Health and Environment
(KDHE) asked for EFC assistance in researching effective
and efficient options of conducting a revolving loan
program for relatively low-dollar non-point source
projects. In order to find the best options for KDHE, the
EFC will look into the potential benefits and downsides,
as well as financial nuances of approaches taken by other
states, and offer recommendations. The revolving loan
fund, through KDHE, will be a large step to assist
landowners to implement non-point source projects.
Nonpoint source pollution is widely viewed as one of the
most serious threats to our nation's water quality. By
helping individuals pay for remediation projects, it will
help prevent contaminants from entering the water supply
which is an EPA goal.
Wichita State EFC by the numbers...
• Hosted 75 stakeholders at a press event to
announce the new EFC
• Provided an overview of the new EFC and
the services offered to more than 200 people
at 6 separate meetings
• Presented at three separate local government
association conferences reaching more than
400 people, covering topics on water service
deliveries, environmental dispute resolutions,
and water rate setting concepts
• Participated in over 20 conference calls to
inform public sector officials and
organizations about the services the EFC
offers
• Attended three national events/conferences
to gain information on current environmental
and financial issues
• Provided technical assistance to four
communities on utility management and land
use planning
• Collaborated with other organizations to
coordinate three environmental related
events
• Developed a website including a grant
resource page highlighting opportunities for
regional stakeholders
John Garland Park Revitalization: EPA Region 7
requested help from the EFC to assist with the
revitalization of John Garland Park in downtown Kansas
City, KS. The park is located on a capped landfill and has
been an issue of concern for the community for decades.
Efforts now focus on revitalizing the land so that it is an
asset to the community. Several entities are assisting with
this effort, including KDHE and the Unified Government
of Wyandotte County. The EFC is providing assistance
with identifying ways to finance the project. The EPA
identifies the restoration of contaminated areas as an
important goal for the agency within the EPA strategic
goal to clean up our communities. The project also helps
the EPA promote sustainability and healthier communities
in disadvantaged populations.
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Wichita State EFC
Center for Environmental Finance Progress Report - December 2011
Regional Energy and Sustainability Conference: To
educate the public, government officials and the business
community about the importance of Sustainability and
energy efficiency, the EFC is assisting the City of Wichita
and other regional stakeholders to coordinate and host a
regional energy conference and fair in January of 2011.
The event was started 3 years ago and has grown each
year in scope and participation which is anticipated to be
over 250. Assisting in the coordination of this conference
helps to promote all five EPA strategic goals as sessions
are offered throughout the event on all topics.
Economic Impact Analysis Projects:
• Analysis of Agreements between Cities and Rural
Water Districts: The EFC is working with the
Regional Economic Area Partnership (REAP) to
develop an economic impact analysis of recent
financial agreements reached between cities and rural
water districts in the state of Kansas. The study is
focused on determining the financial costs of
territorial disputes and how they affect both cities and
rural water districts. This analysis is aimed at
promoting cooperation between the systems to see
that money is spent on providing quality service and
not legal fees. This project relates to EPA's goal to
protect America's waters.
• Ozone Non-attainment for Wichita MSA: The
Wichita MSA is facing potential ozone non-
attainment and contacted the EFC to assist in the
research of the economic impact of ozone non-
attainment status for the four county region. The EFC
will work with local, state and federal officials to
determine service needs the EFC can provide should
the community go into non-attainment and work with
the development of a State Implementation Plan. This
project directly relates to EPA's strategic goal to
improve air quality by providing information for
decision makers as they work through air quality
issues.
• Building Asset Management and Capacity
Development: Staff have been identifying and
developing resources to provide educational training
and workshops to communities on asset management,
and financial and managerial capacity development.
The EFC plans to provide municipalities with the
necessary tools and training to handle the financial
and infrastructure needs of their utility systems.
Increasing community capacity on water and
wastewater system management assists in the
accomplishment of EPA's strategic goal to protect
America's waters.
Water and Wastewater Rate Setting Assistance:
• Wichita Water Utilities Advisory Committee: The
City of Wichita asked EFC staff to assist with the
Wichita Water Utilities Advisory Committee. The
committee was created to assist the Water Utilities
department in its efforts to ensure a long-term water
supply for the community. The committee will also
review the Wichita Water Utilities' future financial
commitment to the Aquifer Storage and Recovery
project, a large recharge project the City has
undertaken to provide water capacity for the region
through 2050. Assisting the City of Wichita
correlates with EPA's goal to protect America's
waters, as this project not only restores water
resources it also provides funding for future water
resource protection.
• Water/Wastewater Rate Analysis: The EFC is
assisting small systems with setting appropriate water
and wastewater rates. Staff analyzes current and past
financial information on the systems and provides
recommendations for future rates and other financial
capacity issues. Small systems are most likely to have
system violations due to a lack of capacity. Working
with systems to set appropriate water rates relates to
the EPA's priority to protect America's waters by
ensuring financial capacity is available to provide
safe drinking water and system improvements.
i BENEFITS & RESULTS
The following outcomes have been accomplished as a
result of the new activities and initiatives of the WSU
EFC:
• Built the capacity of the regulated communities to
develop and support sustainable water systems.
The EFC provided a presentation on basic water rate
setting practices at the Kansas Rural Water
Association conference in 2010. The audience
included almost 100 water and wastewater system
operators and management personnel from systems
across the state and of a variety of sizes. The
presentation provided the steps and information
needed to set appropriate rates to full cost price the
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Wichita State EFC
Center for Environmental Finance Progress Report - December 2011
activities of the system. The presentation also
resulted in several systems contacting the EFC for
additional rate setting assistance.
for their water and wastewater utilities. The
initiative's goal is for each participating
community to reduce energy use by at least 15%.
• Assisted regulated communities to support
cleaner/greener business through source
reduction, pollution prevention, energy
conservation, resource recovery, reuse, and
recycling. The EFC participated in coordinating and
executing the Wichita Regional Energy Conference
and Fair in 2009 and 2010. The event brings together
citizens, government officials, and business leaders to
learn about the latest green and energy efficient
technology for the office, home and vehicles. While
working on this conference, staff built contacts and
gained knowledge on how to bring additional
opportunities regarding sustainability and energy
efficiency to other areas of Region 7.
• Worked with state agencies to support
environmentally sustainable infrastructure,
growth management and land use planning. EFC
staff provided research assistance to the Kansas
Department of Health and Environment (KDHE) to
assist with the expansion of the Kansas Water
Pollution Control Fund; a revolving fund for
nonpoint source projects. EFC staff researched
revolving loan fund programs for NFS projects in 5
other states that have successful and diverse
programs.
• Assisted regulated communities to improve their
water and wastewater utility energy efficiency,
management, and capital planning. The EFC
coordinated efforts for communities in Missouri and
Kansas to participate in the Energy Management
Initiative for Water Utilities. The effort occurs
through a partnership with EPA Region 7 as well as
industry partners and applicable state associations.
The initiative provides workshops to municipalities
in the Region to provide training and assistance in
developing a customized energy management plan
• Formed strategic partnerships with technical
assistance providers to further expand the EFCs
reach and impact. The Wichita EFC and the
Kansas Municipal Utilities Association (KMU)
developed a partnership to provide asset
management training to cities in Kansas using
materials created by the New Mexico EFC. The
materials were created under contract by the
Kansas Department of Health and Environment
(KDHE) as well as the training series. Trainings
will be conducted in all 6 regions of the state and will
be partnered with follow-up on-site technical
assistance for communities that wish to move
forward with implementing an asset management
program.
• Work with regulated communities to address
climate change through GHG reductions,
developing decision tools, and financial strategies.
EFC staff assisted with recruitment and provided
presentations for the Resourceful Kansas program.
This DOE grant funded program is a cooperative
between K-state, GBA associates and Riley County.
The program's goal is to engage communities to
make a fundamental shift toward a less energy
intensive, more efficiency economy though education
and technical assistance. The EFC was asked to
provide information on the financing opportunities
availability for energy efficiency and renewable
projects.
Angela Buzard, Director
Email: ansela. buzartKafwich ita. edu
Phone: (316) 978-3401
http://hws. wichita. edu/environmentalfinance. html
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Center for Environmental Finance Progress Report - December 2011
DOMINICAN
UNIVERSITY
O/CALIFORNIA
ENVIRONMENTAL FINANCE CENTER AT DOMINICAN UNIVERSITY OF CALIFORNIA
BACKGROUND & SUMMARY
The Environmental Finance Center at Dominican University of California, located at the School of
Business and Leadership, serves the four states and two territories of EPA's Region 9. The primary purpose
of this EFC is to promote sustainable healthy communities through cleaner business, by advancing
pollution prevention, source reduction, and energy conservation. The Dominican University EFC works
with the private and public sectors to: 1) encourage industry to implement sustainable business practices, 2)
educate and encourage consumers to choose green business products and services, and 3) help
communities, Tribes and government promote sustainable serf-supporting business.
The Dominican University EFC has accomplished the following:
• Completed Northern Nevada Tribal Recycling report
• Completed La Jolla Campground Operations Management Analysis
• Completed La Jolla Ecolodge Business Plan, Market Survey, and Campsite Presentation
Completed La Jolla Climate Showcase Proposal and Luiseno Waste Services Business Plan
Held Navajo Introductory Meeting and Solar Installation Workshop
Prepared solar analysis for Torres Martinez casino
Held Save the Peaks Coalition Introductory Meeting and Capacity Building Workshop
Prepared the Southern California Biodiesel Report and the Mapping the Nail Care Industry Report
Coordinated preparation of Greenhouse Gas Inventory for Dominican University
Convened Marin nail salon workers meeting
Prepared Mapping the Nail Care Industry Report and established healthy nail salon certification standards
Completed Healthy Hair Guide and hosted three Hair Guide events
ACTIVITIES & ACCOMPLISHMENTS
COMPLETED PROJECTS & INITIATIVES
Evaluation of Opportunities for Solar Energy at the
Torres Martinez Tribal Casino: the EFC prepared a
report on solar opportunities for the Torres Martinez Tribe
in which we recommended various solar options to help
power their casino and other Tribal businesses.
Increasing Recycling and Related Green Business
Opportunities for Northern Nevada Tribes: This
report, prepared for 20 Tribes in Northern Nevada,
identified a variety of recycling options to reduce the
financial strain of recycling programs. Due to the
plummeting prices of recycling commodities and the lack
of a mandated market for recycling by the State of
Nevada, individual tribal recycling businesses are not
profitable at this time.
Luiseno Waste Services Business Plan: The Luiseno
Waste Services Business Plan was completed by a
GreenMBA intern in July 2009. Since that time the intern
has continued to work with the La Jolla on implementing
the business plan and in developing their Integrated Solid
Waste Management Plan (ISWMP).
Navajo Introductory Meeting and Solar Installation
Workshop: In 2010, the Dominican EFC visited the
Navajo based Black Mesa Water Coalition, and held
meetings with members of the Navajo Green Economy
Commission, and has been working with the
Commissioners, other Navajo partners and the Women's
Earth Alliance to develop a business plan for a grid
connected solar installation at Black Mesa.
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Dominican University EFC
Center for Environmental Finance Progress Report - December 2011
Save the Peaks Coalition, Introductory Meeting and
Capacity Building Workshop: Also in 2010, the EFC
met with the Save the Peaks Coalition devoted to
protecting the San Francisco Peaks Mountains, located
outside Flagstaff Arizona. The Coalition, comprised of 14
area Tribes including the Navajo, Hopi, Havasupai,
Hualapai and Apache, has been engaged in protecting the
Peaks from the use of reclaimed wastewater for
snowmaking. The EFC provided a capacity building
workshop to the Coalition emphasizing a systemic
approach.
Greening Dominican University: The EFC helped
coordinate a Greenhouse Gas Emissions Inventory Report
for Dominican University. The Report determined that in
fiscal year 2009, Dominican University of California
emitted approximately 2,333 Metric Tons of Carbon
Dioxide Equivalents (MTCDE). This amounted to 1.7
MTCDE per student. Recommendations for continual
improvement of operations in the areas of energy cost
savings and GHG emissions included creation of campus
green building guidelines, installation of advanced
metering, lighting upgrades, and capitalizing on PG&E,
Federal, State and County incentives for energy
conservation.
Dominican University EFC by the numbers...
• Hired 11 Green MBA Interns
• Attended over 30 conferences and
workshops.
• Sponsored 3 healthy hair events
• Distributed approximately 500 Healthy Hair
Guides
• Prepared 8 Tribal Green Business reports
Held site visits with 8 Tribes and Tribal
Associations to discuss Tribal green
• Authored 2 personal care product industry
reports and one biodiesel industry report
• Participated in three major California
Healthy Nail Salon Collaborative meetings
Biodiesel Initiative: The EFC prepared a research report
focusing on case studies of Southern California fleets that
use biodiesel. to inform fleet managers in Southern
California about the pros and cons of using biodiesel
made from waste oil and how to make the transition.
Marin Convening: Staff assisted in the convening of nail
salon workers and environmental health advocates in
Marin County to identify and address their needs. Sixty
individuals from the nail salon community and the
Collaborative attended as well as representatives from the
State Board of Barbering and Cosmetology, California
Occupational Safety and Health Administration, and the
State Insurance Compensation Fund.
Mapping the Industry: The EFC completed a report
entitled "Mapping the Nail Care Industry: Personal Care
Industry Information and Profiles of Leading Cosmetics,
Beauty Store and Nail Care Product Companies" in
March 2010. The purpose of the report was to identify
barriers and opportunities to developing greener and
healthier products.
African American Hair Care Guide: In early 2010, the
EFC and US EPA staff launched their joint publication
"Techniques for Achieving Healthy Hair," a user friendly
guide that promotes green hair styling products and shares
tips on selecting safe, less toxic ingredients. The Guide
was launched at a free event sponsored by Black Women
for Wellness in Los Angeles. There were approximately
80 attendees and about 100 Guides were distributed. The
EFC also sponsored a Bay Area launch of the Hair Guide
in Oakland on May 24th. The EFC developed a slide
presentation to accompany the Guide which is available
for download on our website.
California Green Business Program Coordination:
The Dominican University EFC has been working with
the Bay Area and California Green Business Programs
since 2000 and has acted as the Region IX Coordinator
since 2003. The EFC has helped the California Programs
develop their own bylaws and meeting guidelines.
ONGOING PROJECTS & INITIATIVES
Proposal for a Future La Jolla Indian Reservation
Campground: Working with the La Jolla Campground
management staff, the EFC identified the necessary
improvements to this Tribally-owned facility that would
guarantee a steady income stream over the long-term.
After numerous site visits, it was determined that camper
frustration and anger stemmed from two root causes -
there was no reservation system in place for campsites
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Dominican University EFC
and there was no limit on the number of cars (or number
of people) that could park on each site. Since the
completion of this report the La Jolla have 1) delineated
the number of campsites suitable for the environment, 2)
agreed on a new pricing structure, 3) added deposits and
changes to operations to ensure that reserved sites are
occupied by the reserving parties and 4) added a recycling
program.
TST
ADMISSION FEES
RV SECTION: Water, Electric (pe
$9lj.OO Per Vehicle check out time: 100 PM
CAMP SITES (per Night) Check out time:6
$ 25°° Each Vehjc|e
$ 2.00 Each (over 4 Persons)
$^0.00 Motorcycles, Bicycles
& Backpackers (per Person)
DAY USE Sunrise to fi
$15-00 Each Vehicle
$ 2.00 Each (over 4 Persons)
Slfl.00 Motorcycles, Bicycles
& Backpackers (per Person)
NO REFUNDS
PM
Current La Jolla Campground Admission Fees
La Jolla Ecolodge Business Plan and Market Survey:
The Ecolodge Business Plan and Market Survey were
completed by Dominican's EFC and GreenMBA interns
in 2010. The Market Survey determined that there is a
strong market for this type of operation in Southern
California and little existing competition. Assuming the
Tribe continues to apply the campground
recommendations mentioned above, the proposed
Ecolodge development could generate $800,000 in
revenue by year five and over $341,000 in net income.
California Nail Salons Initiative: The Dominican
University EFC serves as a member of the National Nail
Salon Alliance and participates in the Industry, Outreach,
Building Bridges and Policy Subcommittees of the
California Healthy Nail Salon Collaborative. Staff also
participated in a major meeting entitled "Framing a
Research Agenda to Advance Worker Health and Safety
in the Nail Salon and Cosmetology Communities" hosted
by the Collaborative.
Center for Environmental Finance Progress Report - December 2011
NEW PROJECTS & INITIATIVES
Strategic Planning: Native American Environmental
Protection Coalition (NAEPC): NAEPC, a coalition of
20 Southern California Tribes, was created to assist
member Tribes in establishing their own environmental
offices, train staff and assist in grant writing. EFC staff
will guide the NAEPC strategic planning process to help
them develop a better approach to fundraising and
nonprofit and board management.
Washoe Tribe Green Economy Development: EFC
staff will work with the Washoe Tribe of Northern
Nevada to help them develop ecotourism and renewable
energy initiatives through workshops and business
planning support.
Site Visit to Washoe Tribe of Nevada
Tribal Finance: The EFC will prepare a research report
on Tribal Renewable Finance and will also work with
EFAB to explore financial opportunities and barriers to
tribal self-sufficiency.
Climate Adaptation for Disadvantaged Communities:
The EFC will prepare a report on adaptation tools and
strategies to help lay the foundation for future work with
economically disadvantaged communities.
Green Nail Salon Certification Support: Through site
audits, the EFC will evaluate the proposed Nail Salon
Certification Program to identify barriers and
opportunities to greening salons. This project will also
include a feasibility assessment of a program to enable
nail salons to purchase safer, less-toxic products through
purchasing pools.
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Dominican University EFC
Center for Environmental Finance Progress Report - December 2011
Teach With Africa (TWA) Partnership: Working with
TWA in the United States and the LEAP School, Singita
Game Reserves and Amakhala Game Reserve in South
Africa, EFC staff will provide leadership and sustainable
enterprise training to rural communities, townships and
refugees.
International Guidebook on Environmental Finance:
In a project supported by the United Nations
Development Program (UNDP) and EPA Office of
International Affairs, Dominican's EFC will prepare a
guidebook on environmental finance in the developing
world. The Guidebook will include chapters on Protected
Areas, Sustainable Agriculture, Sustainable Forestry and
Pro-Poor Energy.
BENEFITS & RESULTS
As a result of the ongoing activities and accomplishments,
outcomes have included the following benefits to
communities and individuals.
As a result of efforts to help tribes understand financial
opportunities to develop renewable energy, both the
Torres Martinez of California and the Navajo of Arizona
are pursuing solar strategies.
Because of business planning efforts with the La Jolla
Tribe, they are now strengthening their campground
management and increasing their revenue stream. They
are also better able to develop their transfer station and
recycling center and establish appropriate waste fees and
payment structures. As a result of the EFC's work, the
tribe can achieve greater self-sufficiency and long-term
sustainability.
Through efforts to identify the barriers for biodiesel
derived from waste grease, industry stakeholders,
including EPA, can now better understand the limitations
to industry growth and begin addressing the obstacles.
As a result of the Greenhouse Gas Emissions Inventory
prepared for Dominican, the University is now developing
a campus-wide transportation plan that will help reduce
overall GHG emissions and conserve energy resources.
Through various Nail Salon Initiative efforts described
above, the EFC has helped educate hundreds of
stakeholders from the public, private and nonprofit
sectors, and helped produce broad industry partnerships to
reduce toxic chemical use in nail products. The project
has also brought much needed education to an industry
that is largely dominated by a non-English speaking
immigrant community.
The production of the African American Hair Guide has
created greater awareness of healthy hair practices
throughout the African American community in
California and beyond. More importantly, the Guide has
provided education on toxic hair care ingredients to an
environmental justice community that has been
overlooked in the personal care product discussion.
With help from the EFC for over ten years , the California
Green Business Program is now thriving with twelve
programs throughout the State and over 2,600 certified
green businesses.
Sarah Diefendorf, Director
Email: sarah.diefendorf@dominican.edu
Phone: (415) 494-5422
http://www.efc9.org
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Center for Environmental Finance Progress Report - December 2011
*
ENVIRONMENTAL
FINANCE CENTER
ENVIRONMENTAL FINANCE CENTER AT BOISE STATE UNIVERSITY
BACKGROUND & SUMMARY
The Environmental Finance Center (EFC) at Boise State University, located within the College of
Social Science and Public Affairs, serves the four states of EPA's Region 10. The primary focus of the
Center is the development of broadly applicable, practical tools and training that improve the efficiency
and effectiveness of environmental systems in meeting the challenges of protecting the environment
and public health. Their mission is to help local communities determine how to pay for protecting the
public's drinking water, create financial capacity for sustainable drinking water and waste water
systems and managing watersheds for functional long-term ecosystem sustainability.
ACTIVITIES & ACCOMPLISHMENTS
COMPLETED PROJECTS & INITIATIVES
The Wastewater Dashboard: The EFC added another
web based tool for small systems to complement our
existing suite of tools. The Waste Water Financial
Dashboard is an interactive, web based planning and
financial tool that allows managers and operators to see
their current state of financial affairs in a simple, easy to
understand format. This new tool allows decision-makers
to input their current customer data, flow information and
NPDES permit information into web forms that
automatically populate the Dashboard. From here, they
are able to manipulate different aspects of their system's
rates, revenues, and expenses. This allows the users to see
how different financial decisions will change the financial
capacity of their system. It also displays the effects what
changes in wastewater influent levels have on their
system.
The Stormwater Dashboard: The EFC released its
newest financial model, the Stormwater Dashboard, in
January of 2011. Municipalities are dealing with an
increase in regulatory demands concurrent with a decline
in available financial resources to implement an effective
abatement system. The Stormwater Dashboard will assist
leaders in appropriate rate setting structure, analysis of
current revenue streams for future management
infrastructure as well as tracking rainfall and flood stage
in a graphic form from presentation to boards and
councils.
EFC Financial Dashboard Update: This updated
dashboard brings together two valuable pieces of financial
management software including all the features of our
popular CAPFinance tool3. Users are now able to plan
ahead and decide whether to debt finance or save for
capital improvements and see how each decision will
affect their financial picture for the next fifty years. Also
in the update, we added a function to bring asset
information from CUPSS4 to reduce the amount of time
invested by city clerks and managers for asset
management and financial planning.
Financial Management Survey for Washington
Department of Health: The EFC is completing a web
based survey tool for Washington Department of Health
(WDOH) to rank all of their water and waste water
systems by strength of financial management capacity.
The tool blends their sentry data with survey questions to
provide basic statistics on state wide system performance.
With the tool completed in 2010 the training will spill
over into FY 2011. As Washington gains experience with
3 A capital asset inventory and reinvestment analysis
software program for drinking water and wastewater
systems
4 An asset management tool for small drinking water and
wastewater utilities that provides a simple, comprehensive
approach based on EPA's highly successful Simple Tools
for Effective Performance (STEP) Guide Series).
5 Sentry data is WDOH's internal data set for each system
with information on system capacity and violations.
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Center for Environmental Finance Progress Report - December 2011
the tool it is hoped that other states within Region 10 will
renew their interest in the project's potential to measure
performance of efforts to improve financial and
management capacity of their water and waste water
system.
New Meadows: New Meadows is a small town located at
the gateway to the central Idaho Seven Devils Mountain
Range. New Meadows, like other northwest communities
transitioning from resource to recreation based
economies, struggles with a small population, high
unemployment and a minimal tax base to support
necessary government functions. The community leaders
had submitted a federal appropriations request seeking
financial assistance for upgrades in its drinking water,
wastewater, and transportation infrastructure systems. The
EFC accepted the case study because the study can serve
as a rural community demonstration project of a
watershed approach to funding several federal
infrastructure projects and the citizens were engaged in
the decision-making process. The EFC helped the
community apply the principles of prioritization needs
and wants for infrastructure dollars against a community's
ability to pay.
Crystal Creek: The EFC engaged its resources to assist
private property owner George Kirk with the Crystal
Creek Preserve (CCP) project during FY 2010. The EFC
accepted the project as a demonstration project that
combined restoration, conservation, agricultural use, and
sustainable private land development. While applying its
cache of tools, the EFC was able to determine that
adaptations to the Plan2Fund tool were necessary in order
for the tool to become more effective in determining
actual costs for a users' watershed project. Thus, the EFC
modified its Plan2Fund tool to meet the objectives of a
land development project.
Pend Oreille Clean Water Association: The EFC
determined that the goals of the Pend Oreille Clean Water
Association (POCWA) met its mission and provided
technical assistance to help POCWA to regionalize its
goals and consolidate its administrative operational
functions. The EFC assisted in refining the by-laws and
mission statement to clarify POCWA's goals as an
organization. Also, the EFC developed a workbook for
the member systems that replicated the information
required for the EFC Wastewater Financial Dashboard.
POWCA has asked that the EFC continue to assist them
with the how-to-pay issues of watershed management in
FY2011.
The Boise River's banks are preserved with a 25 foot no disturbance
and 50 foot no building ordinance
City of Ontario: The EFC was asked to evaluate the City
of Ontario's water and wastewater utilities and adapt the
web based tools for their utility systems. Our evaluation
focused on the financial reporting of the water utility and
wastewater utility systems. The EFC created custom
versions of its standard workbooks for the City including
an analysis worksheet. The new financial management
system will help Ontario predict the remaining useful life
of its capital facilities and create an asset replacement
schedule that will drive the cost-of-service forecasts for
its capital budgets.
ONGOING PROJECTS
Directory of Watershed Resources: In January 2009,
the EFC launched a new version of The Directory of
Watershed Resources. The majority of the feature changes
are designed for those administering grants and loans,
such as a "My Programs" section they can use for
managing an unlimited number of programs in one
concise area. Program administrators will find a more
user-friendly experience with simpler navigation and a
more intuitive input process.
EFC Training On Demand: Training on how to finance
and manage multi-million dollar investments is a
necessity for those that are responsible for environmental
systems. This evolving programming element helps
system operators, consultants and agency staff to attend
training on their schedules without the cost of traveling.
Users pick a date and time (daytime, evening or even
Saturday workshops) for a webinar workshop on a topic
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Boise State EFC
Center for Environmental Finance Progress Report - December 2011
of their choice. The center is constantly evaluating the
program to improve its value to our clients.
The Environmental Research Building, home of the Boise State EFC
Updating Financial Dashboard Technology: All web
based tools require maintenance to insure broken links are
repaired, data sets are backed up, and user
recommendations are incorporated to improve the
functionality and performance of the tools. For example,
in 2010 the EFC was able to make the modifications that
enhance the Plan2Fund tool by giving users the ability to
"drag and drop" goals, objectives and tasks to change the
order of these plan elements.
Alaska State Revolving Fund Financial Management
Capacity Analysis: Since 2001, the EFC has worked
with the State of Alaska Department of Environmental
Conservation to offer third-party finance and management
capacity reviews of applicants. Capacity reviews have
been performed for both the Alaska Clean Water Fund
and the Alaska Drinking Water Revolving Fund. The EFC
completes approximately 10 reviews annually.
NEW PROJECTS & INITIATIVES
Comprehensive Watershed Planning: Region 10
agencies, general purpose governments, business
interests, recreational stakeholders, tribes, and utility
districts are coming to understand the interconnectedness
of each other's responsibilities within the watershed in
which they operate. The EFC has tools that address many
of the issues associated with watershed management. The
center will be looking for opportunities to expand the
knowledge base on watershed management, create
educational opportunities for teaching BMPs and improve
its web based tools to for better comprehensive basin
planning. The center is watching the City of Boise Idaho's
initiative to remove non-point source (NFS) nutrient
pollution downstream from its waste water treatment
plant as a credit trade for its total daily maximum load
(TDML) discharge from its treatment plant6. This
initiative has rural and urban stakeholders working
together.
The Boise State University EFC by the numbers...
• Reached more than 1,000 people through
EFC website registration
• Gave 12 presentations in various locations
throughout region 10 on various subjects
including free tools we created and posted
on our website
• Spoke at 2 conferences about the EFC Tools
• Attracted over 100 people to our free
Training on Demand Sessions
• Provided technical assistance to 15
communities about various subjects
including EFC tools and financing for
different types of water systems
• Developed 1 new educational tool regarding
wastewater and updated our watershed
financing tool 14 Alaska Department of
Environmental Conservation State
Revolving Fund Capacity Reviews
• Attended 2 conferences about Project
Management and Economic Development
• Held three workshops on Non-Point Source
and Watershed Financing Technical
Assistance in Bend Oregon, Boise Idaho,
and via webinar for Alaska
Plan2Fund and Plan2FundOPT for Funders: The EFC
has been working with the Office of Wetlands Oceans and
Watershed (OWOW) to modify the strategic planning
software to allow funders the same flexibility in
prioritizing grant and loan applications based on best
management practices (BMP). It is anticipated that this
enhancement will be completed in FY 2011.
Energy Efficiency Cost-Benefit Calculator: The EFC
recognizes that many environmental initiatives are
interrelated. The search for funding water and waste water
http://www.cityofboise.org/Departments/Mayor/PDF/Dix
ieDrainProj ectConcept.pdf
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Boise State EFC
facilities involves implementing the best practices for the
least cost. Today we understand that capital life cycle
costs are a better reflection of a piece of equipment's true
cost than simply the purchase price. The EFC has been
researching how to incorporate a calculator for
determining the potential savings of employing energy
efficiency technologies for its clients. The EFC is
currently building an energy efficiency cost calculator
application to its water, wastewater, and stormwater
financial dashboard models. Originally scheduled for
release in January 2011, the center wants to evaluate how
its calculator can be incorporated into the EPA's Check
Up Program for Small Systems (CUPSS) to explore how
to integrate the energy calculator into the asset
management program through CUPSS before final
programming is completed.
Center for Environmental Finance Progress Report - December 2011
! BENEFITS & RESULTS
The EFC has been focused on meeting the needs of its
clients through the development of web based tools to
help them answer the question of how to pay for their
infrastructure. The center is developing several feedback
tools to better quantify the impact of its activities.
David Eberle, Director
Email: weberle(3)boisestate. edu
(208) 426-4293
http://efc. boisestate. edu
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SEPA
United States
Environmental Protection
Agency
Environmental Finance Program
(2731-A)
1200 Pennsylvania Avenue, NW
Washington, DC 20460
EPA-190-R-11-007
September 2011
www.epa.gov/efinpage/
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