Post on 01-Jul-2015
description
1
Sustainable Water Infrastructure through Innovative Financing
2
The History of Water Infrastructure Financing
In 1970’s, The U.S. Congress passed legislation making
EPA an important fiscal partner in wastewater funding
In 1987, in order to better serve state and local
communities specific water needs, the U.S. Congress
established the Clean Water State Revolving Fund
During this time, EPA developed a new permit
processes to control discharges to the nation’s
waterways
Very large investments were made in the treatment of
industrial waste and in the upgrading of the public
wastewater systems
3
Features of the State Revolving Fund (SRF) Program
Federally and state provided “seed money”
State programs are allowed great flexibility
State implemented and operated
Public participation is encouraged
Federal involvement is limited
4
An SRF Functions As An Infrastructure Bank
Each state operates its own SRF that makes loans for
wastewater treatment and nonpoint source projects;
including agricultural and urban runoff, leaking storage tanks,
septic systems, and protecting drinking water sources
5
The Gap Report
Purpose -- To quantitatively understand the future needs for water investment to: – Address U.S. population
growth/economic needs, and
– Renew existing aging infrastructure.
Estimates were made for water
and wastewater, investment,
cost and payments (2000-
2019).
Needs – Spending = GAP.
http://www.epa.gov/owm/gapreport.pdf
6
GAP Findings For 20 Years - -(2000-2019)
$45$31Total
$0$10O&M
$45$21Capital
Drinking
Water
Clean
Water
Total Gap (20 Years)
(Average in Billions of $)
No Revenue Growth
GAP Scenario
Revenue Growth
GAP Scenario (3%)*
(Annual Rate of Increase - 3% above inflation)
$263$271Total
$161$148O&M
$102$122Capital
Drinking
Water
Clean
Water
Total Gap (20 Years)
(Average in Billions of $)
7
Great Success, Yet An Emerging Challenge
Source: USEPA,
Progress in Water
Quality: An
Evaluation of the
National
Investment in
Municipal
Wastewater
Treatment,
June 2000.
A projection of increasing BOD U
(Metric Tons Per Day)
0
5,000
10,000
15,000
20,000
25,000
1968 1978 2016
8
EPA Has Identified Four Pillars for Sustainable Infrastructure
Full cost pricing
Water efficiency
Better management
Watershed
approach
9
Full Cost Pricing
ensures that there are sufficient revenues in place to support the costs of doing business
can also have the added benefit of encouraging efficient water use
10
Water Efficiency
reduces the need for costly infrastructure
options include: metering,
water reuse,
water saving appliances,
landscaping and
public education
11
Better Management
Asset management (Better acquisition, Operations and maintenance, and, Renewal and replacement), environmental management systems (EMS’s)
Focuses on better
– utility performance,
– environmental performance, and
– customer service
12
Watershed Approach
looks more broadly at water resources in a coordinated way
targets resources towards highest priorities
examples of watershed approaches include: permitting on a watershed basis
water quality trading
13
Thank you