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Urban BMP Urban BMP Incentive Study Incentive Study
(HJR 107)(HJR 107)
And Other Interesting And Other Interesting Legislative ItemsLegislative Items
Delegate David BulovaDelegate David BulovaAugust 10, 2007August 10, 2007
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The Urban ChallengeThe Urban Challenge
• Virginia’s Tributary Strategy lays out an aggressive plan that calls for the installation and maintenance of BMPs on 74% of available urban lands.
• More than 80% of Northern Virginia was built prior to water quality controls.
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HJR 107HJR 107
• Could a program similar to Virginia’s agricultural BMP program be effective for promoting urban retrofit?
• What are other states doing in this area?
• What are the potential costs and benefits of such an approach?
• Are there other options that could more effectively achieve the same goal?
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Technical Advisory Technical Advisory CommitteeCommittee
• DCR formed TAC in January, which included representatives from:– Virginia Soil and Water Conservation Districts– Department of Taxation– Department of Forestry– DCR-CBLA– HRPDC– Local governments– HBVA– Private engineering consultants
• Have met three times to-date.
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Challenges – No Shortage Challenges – No Shortage of Themof Them
• Urban BMPs are less cost-efficient:– Phosphorus reduction is 25 times more
expensive per pound than agricultural phosphorus reduction.
• Incentive programs aimed at residential property are very resource intensive. – On average, one farm is equivalent to
476 average single family properties – an administrative nightmare.
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ChallengesChallenges
• Incentive programs aimed at large-scale commercial property are more administratively efficient.– However, the estimated cost of
retrofitting a 50-acre commercial tract ranges from approximately $168,000 to $636,000.
• An easy conclusion is that cost-share and tax credits would need to be very large to be economically attractive.
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And yet…And yet…
• Chesapeake Bay restoration goals are not achievable without addressing the urban component – no matter how expensive, inefficient, etc.
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Neighboring ProgramsNeighboring Programs
• Kentucky provides low interest loans through the Revolving Loan Fund.
• Maryland provides up to 75% of the cost through three cost-share programs. They also utilize the Revolving Loan Fund.
• North Carolina has a Water Management Trust Fund that provides competitive grants.
• Pennsylvania has Growing Greener, which is funded through bond initiatives and waste disposal fees.
• Tennessee and West Virginia don’t have specific urban programs.
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Discussion PointsDiscussion Points
• A multi-tiered funding approach to urban stormwater is being discussed.– Competitive grants awarded directly to
localities with flexibility to apply to high-efficiency targets of opportunity.
– Other states have had success with using low-interest capital loans.
– Access to the Virginia Clean Water Revolving Loan Fund could be used to help “jump start” local watershed plans.
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Discussion PointsDiscussion Points
• Regardless of approach, an adequate, predictable, and stable source of funding is needed. – In 2007, the WQIF had $3.5 million available for
its competitive grants program. – 73 proposals, totaling $8 million, were
submitted.– As a result, Virginia left more than $12 million in
potential cost-share unutilized.
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Discussion PointsDiscussion Points
• Stable funding would also provide incentives for local capacity building.– With secure funding, localities may be
more willing to invest in staff and capacity.
– Multi-year grants would allow more flexibility and encourage innovation.
• Local government buy-in is considered critical. – A dedicated funding source is seen an
integral to better participation.
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RecommendationsRecommendations
• One more meeting of the TAC is anticipated.
• The final report will be available by November 2007.
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The 2007 Session – The 2007 Session – A Wild RideA Wild Ride
• 129 bills were introduced in House AC&NR in 2007.
• The Session was literally a rollercoaster for water resources issues:– HB3113 proposed to consolidate waste, water,
and air boards.– CSOs nearly succeeded in gobbling up non-
point source BMP cost-share funding (SB1301).– The Governor’s open space conservation
initiative was cut in half.– $250 million was approved to upgrade waste-
water treatment facilities.
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The 2007 Session – The 2007 Session – A Wild RideA Wild Ride
• Many bills never saw the light of day:– 44 bills never made it out. – HB2663 would have increased penalties
to reduce commercial fertilizer runoff in urban areas.
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Expect More in 2008Expect More in 2008
• Weakening budget forecast will mean that WQIF will not get automatic revenue from surpluses.– 10% of the budget surplus is the WQIF’s
only dedicated revenue source.– Competition for General Fund will be
fierce.
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Concluding RemarksConcluding Remarks