the new york state environmental facilities corporation 10 th annual symposium on environmental...

The New York State Environmental Facilities Corporation

10th Annual Symposium on Environmental & Energy Systems

Oncenter Complex, Syracuse, NYSeptember 28, 2010

David Paterson, Governor Pete Grannis, Chairman Matthew J. Driscoll, President & CEO

NYS Environmental Facilities Corporation September 28, 2010

The Environmental Facilities Corporation

A Public Benefit Corporation Accountability Transparency

Clean Water State Revolving Fund (1987 Clean Water Act Amendments) Clean Water Program: 50% Interest Subsidy

Drinking Water State Revolving Fund (1997 Safe Drinking Water Act) Drinking Water Program: 33.3% Interest Subsidy

Providing Low-cost Financing and Technical Assistance to Municipalities, Businesses, and NY State Agencies for Environmental Projects


NYS Water Infrastructure Needs CW - $36.2 Billion: 20 Years

$11 Billion in Urgent Need

DW - $38 Billion: 20 years

Historic Declines in Federal Funding Delayed Projects

Aging SewersCombined Sewer OverflowOver 100 years old

Declining Water QualityAgricultural and Other

Nonpoint Sources of nutrients


SOURCE: 305 (b) Water Quality Report


National Water and Sewer System Numbers 850 billion gallons of untreated

wastewater discharged annually 32 years average useful life of water

treatment equipment $390 billion to replace and build new

wastewater systems over next 20 years $10,000 per household cost of replacing

water mains and treatment plants 3% of US electricity demand accounted

for by water systems Electricity is the second largest

operational cost for wastewater treatment plants


Water and Sewer SystemsWater and Sewer Infrastructure

Spending Nation-wide (a) 2005: $90.1 billion ($305 per capita) 2050 projections (b):

$133.5 billion: at current population trends

$115.7 billion: at 50% reduction in immigration

$90.1 billion: at zero population growth

Sources: Congressional Budget Office, American Society of Civil Engineers, American Water Works Association, Pew Research Center.

Notes: a: Capital, operations, and maintenance spending by

federal, state and local governments in 2006 dollars.b: Assumes per capita spending remains at 2005 levels.


An Underfunded LegacyAn Underfunded Legacy

In the last year, federal lawmakers have allocated more than $10 billion for water infrastructure programs, one of the largest such commitments in history.

An EPA study estimated that $335 billion would be needed simply to maintain the nation’s drinking water systems in coming decades.

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

'86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10

FederalAppropriation

ARRA

Federal Wastewater Treatment Funding 1986-2010

Federal Fiscal Year

Appropriations

($billion)


Clean Water SRFLeverage rate financing with

50% subsidy for up to 30 years

Hardship financing as low as 0% interest for up to 30 years

Short term financing for 3 years at 0% interest


Drinking Water SRFLeverage rate financing with 33% subsidy for up to 30

yearsHardship financing at 0% interest for 30 years,

Only if needed to reach “Target Service Charge”

Short Term Financing for 3 years at 0% interestSRF Backed, Guarantee Program

Communities Benefit From the Corporation’s AAA Rating

Fund components of projects that are “green” At least 20% of 2010 federal cap grant must go for green

components


How SRF Programs Work


CWSRF Intended Use Plan (IUP)

Effective October 1st through September 30th (Federal Fiscal Year) Project Priority Lists of potentially eligible projects

Annual List (Projects expecting financing in current year) Multi-Year List (Projects to be financed in future years)

The Intended Use Plan (IUP), published on an annual basis, identifies funds available to the CWSRF and uses of those funds.

Excerpt from 20XX Final CWSRF IUP - Project Category: B

Project # Applicant Name Service AreaProject

Description

Est. Amount

Additional Above ST

SPDES no Score

C1-XXX-XX-00 GREAT NECK, VILLAGE OF VILLAGE STP UP $17,200,000 $17,200,000 NY0022128 154

C1-XXX-XX-00 NASSAU COUNTY BAY PARK, SD #2 NPS, STMSEW $430,000 $430,000 NY0026450 113

C6-XXX-XX-00 UTICA, CITY OF PHASE A1 CSO, I/I CORR $2,850,000 $2,850,000 NY0025780 112

C9-XXX-XX-00 TONAWANDA, TOWN OF PARKERS-FRIES INTERCEPTOR COLL, INT $24,310,000 $24,310,000 NY0026395 111

C6-XXX-XX-00 ONEIDA COUNTY PHASE 1 CSO, I/I CORR $5,300,000 $5,300,000 NY0025780 107

C6-XXX-XX-01 ONEIDA COUNTY PHASE 2A CSO, I/I CORR $20,500,000 $20,500,000 NY0025780 107

“Subsidy Line”


Short-Term CWSRF Financing

Market-Rate Interest-Free

Project Score below the IUP subsidy Line, or for short-term

project costs above the amount available Interest-Free

Project Score above the IUP subsidy line

AAA/Aaa Borrowing Rates 0% Interest

SRF “line of credit” is available for up to 3 years or readiness for long-term financing, whichever is sooner, for recommended minimum

term of six months

Works like a credit card…SRF line of credit for municipalities to charge project costs.

EFC


CWSRF Short-Term Application Submission

1) Signed Application Form

2) Application Checklist

3) Approvable Engineering Report

4) Adoption of a Bond Resolution

5) Completion of the State Environmental Review Process (SERP)

6) Approval of project by the NYS Office of Parks, Recreation and Historic Preservation (SHPO or OPRHP)

7) Approval of Sewer District Formation by the State Comptroller’s Office (if necessary)

A Complete CWSRF STF Application:


Long-Term CWSRF Financing

Long-Term Market Rate(4.06% June 2010)

Subsidized- Interest(2.03% June 2010)

Below the Subsidy Line Above the Subsidy Line

AAA/Aaa Borrowing RatesAAA/Aaa Borrowing Rates Plus 50%

interest rate subsidy for up to 30 years

Final financing costs are determined when project approvals are in place. Major contracts awarded, permits in place.

30 years…works just like a home mortgage…


Hardship EligibilityThe CWSRF Hardship Program provides long-term financing at a reduced interest

rate, as low as 0%, to communities that have been determined to be economically distressed by the implementation of an eligible water quality improvement project.

Available for point source (Section 212) projects with a total project cost up to $14 million.

Project must be listed on annual list of IUP above subsidy line.

A hardship application form must be submitted to be considered for hardship eligibility including information on:

Equivalent Dwelling Units (EDUs) served by the project Existing sewer debt service Existing and projected operation and maintenance cost Project cost funded by other sources (grant, loan, municipal sources, etc.)

Hardship Confirmation Letter with Two Year Expiration.

Hardship projects in IUP Category D


2010 CWSRF Highlights $225 million Federal Appropriation

$736 million in CWSRF loans are available to communities.

Principal Forgiveness (PF) / Grants $112 million available for clean water

projects

Green Innovations Grant Program Funding for stand-alone “green” projects $15 million available for Fall 2010

Application Process

U.S. EPA recognized New York’s CWSRF with the 2009 “Pisces Award for Performance and Innovation in the SRF” for the GIGP


2010 IUP Principal ForgivenessFor Disadvantaged Communities

Category A - Population up to 3,500$7.4 million

Category B - Population between 3,500 to 1,000,000$29.8 million

Category C - New York City$30 million

Category D - Hardship Communities$30 million


Co-funding Opportunities

USDA Rural Development loan/grant program

New York State DEC Water Quality Improvement Program

Office of Community Renewal CDBG Program

NYSERDA Water/Wastewater programs


EFC Client Services Application Development –

Intended Use Plan Legal, Engineering, Financial

Expertise Individual Project Consultations On-site Visits Field Offices Public Outreach and Education Co-Funding Post Closing Assistance


Things to Come: Scoring System Initiative

Asset Management

Smart Growth

Fair (Not Full) Cost Pricing

“Green” Priorities/Energy Efficiency

Federal/State/Local Partnership

Feedback will be Essential to Success of CWSRF/DWSRF


Green Innovation Grant Program

Water Efficiency: Reuse, Conserve or Improve Water Efficiency

Energy Efficiency: Reduce Energy Consumption or Produce Clean Energy

Green Wet Weather Infrastructure: Maintain, Restore, or Mimic Natural Systems to Infiltrate,

Evaporate or Recycle Stormwater

Environmental Innovation: Manage Water Resources to Prevent or Remove Pollution in an

Economically Sustainable Way

$15 million Available for “Green” Infrastructure Projects


Green Innovation Grant Program (GIGP)

Begun under the American Recovery and Reinvestment Act of 2009

Post Program Analysis by Syracuse University Environmental Finance Center

Analysis of program data and survey of applicants


GIGP: Who Can Apply?Any corporation which is organized and existing under the laws of the

State of New York which is empowered to develop a project

* Only eligible for GIGP Grants under existing State laws.

Municipality School district* Soil and water conservation district*

Not-for-profit Partnership Association


What Kind of Projects?

I Secondary Treatment II Advanced TreatmentIII-A Infiltration/InflowIII-B Sewer System RehabilitationIV-A New Collector Sewers

IV-B New InterceptorsV CSO CorrectionVI Storm Sewers (In Phase I and Phase II MS4 areas)X Recycled Water Distribution

Point Source - Clean Water Act Section 212 Projects

Ex. Wastewater Treatment Plants


Non Point Source Projects - Clean Water Act Section 319VII-A Agricultural Cropland VII-B Agricultural Animals VII-C Silviculture VII-D Urban, excluding decentralized systems, Green InfrastructureVII-E Ground Water, unknown source VII-F Marinas

VII-G Resource Extraction VII-H Brownfields VII-I Storage Tanks VII-J Sanitary Landfills VII-K Hydromodification VII-L Individual/Decentralized Systems

Ex. Porous PavementEx. Regional Digester/Bioenergy Facility


Estuary Assistance – CWA Section 320 Projects

Implementation of US-EPA Approved Estuary Conservation and Management Plans for:

New York-New Jersey Harbor

Peconic Bay

Long Island Sound Estuaries


Awarded $753,543 in GIGP for demonstration project Microturbine System

3rd largest water tanks in the world Expected to generate 438,000 kWh of electricity annually

Solar Photovoltaic System Expected to produce 56,000kWh of power annually

The energy generated from the new systems will allow the facility to operate almost entirely “off-the-grid”

Westcott Reservoir


GIGP 2010 Objectives Protects, improves or enhances water quality, aquatic or

riparian habitat Spur Innovation Build Green Capacity Facilitate Technology Transfer Fund Strategic and Highly Visible Demonstration Projects Foster Local Program Development Lead to Larger Scale Implementation Efforts Encourage Outreach and Education Incorporate Smart Growth / Livability Principles


Philadelphia Water Department and WRT

Porous PavementLindenhurst Library - Suffolk County

Seagrit Planting Bed – NYC Green StreetsNYC, NY


GIGP 2010 GrantsTwo types of Grants:

Construction Grants Grant for up to 90% of construction costs, not exceeding $750,000 Require complete Engineering Report (treatment plant projects) or

concept plan and feasibility report for green infrastructure / stormwater projects at time of application.

Design Grants Grant for up to 50% of design costs, not exceeding $50,000 per

project Require complete Feasibility Study (treatment plants) or Concept

Plan (green infrastructure / stormwater projects) at time of application.


GIGP 2010 Eligibility Must be eligible under SRF and US EPA SRF 2010 Green

Project Reserve requirements. Meet all applicable NYS design standards. Demonstrate the capacity to own, operate, and maintain the

proposed project. Meet Davis Bacon Act requirements

Prevailing wage rates paid

Meet Federal DBE Program requirements Ensure nondiscriminatory actions in the award and administration of contracts

Must be under committed/contract with EFC by September 2011


Application Tips

Focus on one innovative demonstration project

Submit a complete and concise application

Project selection based on GIGP 2010 goals and objectives

Green Roof – Rockefeller Center


Stay Informed

Email Receive immediate notice

of new and updated funding opportunities, programs, and initiatives

SRF Newsletter Sign up to receive EFC’s

quarterly newsletter

Webcasts Join EFC live to discuss

important issues

www.nysefc.org


www.nysefc.org

Financing for a Sustainable Future

NYS Environmental Facilities Corporation 625 Broadway

Albany, NY 12207 1.800.882.9721

EFC President and CEOMatthew J. [email protected]

the new york state environmental facilities corporation 10 th annual symposium on environmental...

Documents

nys water infrastructure

national water

water mains

sewer systems water

water systems electricity

water infrastructure

environmental projects

b water quality report