Transcript The New York State Environmental Facilities Corporation
The New York State Environmental Facilities Corporation
10
th
Annual Symposium on Environmental & Energy Systems Oncenter Complex, Syracuse, NY September 28, 2010
David Paterson, Governor Pete Grannis, Chairman Matthew J. Driscoll, President & CEO
The Environmental Facilities Corporation
Providing Low-cost Financing and Technical Assistance to Municipalities, Businesses, and NY State Agencies for Environmental Projects
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 NYS Environmental Facilities Corporation September 28, 2010
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 Sewers Combined Sewer Overflow Over 100 years old Declining Water Quality Agricultural and Other Nonpoint Sources of nutrients NYS Environmental Facilities Corporation September 28, 2010
NYS Environmental Facilities Corporation September 28, 2010 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 NYS Environmental Facilities Corporation September 28, 2010
Water and Sewer Systems
Notes: Water 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 a: Capital, operations, and maintenance spending by federal, state and local governments in 2006 dollars.
b: Assumes per capita spending remains at 2005 levels.
Sources: Congressional Budget Office, American Society of Civil Engineers, American Water Works Association, Pew Research Center.
NYS Environmental Facilities Corporation September 28, 2010
An Underfunded Legacy
Federal Wastewater Treatment Funding 1986-2010 Federal $4.0
Appropriation $3.5
ARRA $3.0
$2.5
$2.0
Appropriations ($billion) $1.5
$1.0
$0.5
$0.0
'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 Federal Fiscal Year
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. NYS Environmental Facilities Corporation September 28, 2010
Clean Water SRF
Leverage 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 NYS Environmental Facilities Corporation September 28, 2010
Drinking Water SRF
Leverage rate financing with 33% subsidy for up to 30 years Hardship financing at 0% interest for 30 years, Only if needed to reach “Target Service Charge” Short Term Financing for 3 years at 0% interest SRF 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 NYS Environmental Facilities Corporation September 28, 2010
How SRF Programs Work
NYS Environmental Facilities Corporation September 28, 2010
CWSRF Intended Use Plan (IUP)
The Intended Use Plan (IUP), published on an annual basis, identifies funds available to the CWSRF and uses of those funds.
Effective October 1 st through September 30 th (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)
Project #
C1-XXX-XX-00 C1-XXX-XX-00 C6-XXX-XX-00 C9-XXX-XX-00 C6-XXX-XX-00 C6-XXX-XX-01
Applicant Name
GREAT NECK, VILLAGE OF NASSAU COUNTY UTICA, CITY OF TONAWANDA, TOWN OF ONEIDA COUNTY ONEIDA COUNTY
Excerpt from 20XX Final CWSRF IUP - Project Category: B Service Area
VILLAGE BAY PARK, SD #2 PHASE A1 PARKERS-FRIES INTERCEPTOR PHASE 1
“Subsidy Line”
PHASE 2A
Project Description
STP UP NPS, STMSEW CSO, I/I CORR COLL, INT CSO, I/I CORR CSO, I/I CORR
Est. Amount
$17,200,000 $430,000 $2,850,000 $24,310,000 $5,300,000 $20,500,000
Additional Above ST
$17,200,000 $430,000 $2,850,000 $24,310,000 $5,300,000 $20,500,000
SPDES no
NY0022128 NY0026450 NY0025780 NY0026395 NY0025780 NY0025780
Score
154 113 112 111 107 107 NYS Environmental Facilities Corporation September 28, 2010
Short-Term CWSRF Financing
Market-Rate
Project Score below the IUP subsidy Line, or for short-term project costs above the amount available Interest-Free
Interest-Free
Project Score above the IUP subsidy line
EFC
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.
NYS Environmental Facilities Corporation September 28, 2010
CWSRF Short-Term Application Submission
A Complete CWSRF STF Application: 1) Signed Application Form 2) 3) 4) 5) 6) 7) Application Checklist Approvable Engineering Report Adoption of a Bond Resolution Completion of the State Environmental Review Process (SERP) Approval of project by the NYS Office of Parks, Recreation and Historic Preservation (SHPO or OPRHP) Approval of Sewer District Formation by the State Comptroller’s Office (if necessary) NYS Environmental Facilities Corporation September 28, 2010
Long-Term CWSRF Financing
30 years…works just like a home mortgage…
Long-Term Market Rate
(4.06% June 2010) Below the Subsidy Line
Subsidized- Interest
(2.03% June 2010) Above the Subsidy Line AAA/Aaa Borrowing Rates AAA/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.
NYS Environmental Facilities Corporation September 28, 2010
Hardship Eligibility
The 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 NYS Environmental Facilities Corporation September 28, 2010
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 NYS Environmental Facilities Corporation September 28, 2010
2010 IUP Principal Forgiveness
For 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 NYS Environmental Facilities Corporation September 28, 2010
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 NYS Environmental Facilities Corporation September 28, 2010
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 NYS Environmental Facilities Corporation September 28, 2010
Things to Come: Scoring System Initiative
Feedback will be Essential to Success of CWSRF/DWSRF
Asset Management Smart Growth Fair (Not Full) Cost Pricing “Green” Priorities/Energy Efficiency Federal/State/Local Partnership NYS Environmental Facilities Corporation September 28, 2010
Green Innovation Grant Program
$15 million Available for “Green” Infrastructure Projects
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 NYS Environmental Facilities Corporation September 28, 2010
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 NYS Environmental Facilities Corporation September 28, 2010
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 Municipality School district* Soil and water conservation district* Not-for-profit Partnership Association * Only eligible for GIGP Grants under existing State laws. NYS Environmental Facilities Corporation September 28, 2010
What Kind of Projects?
Point Source -
Clean Water Act Section 212 Projects I Secondary Treatment II Advanced Treatment III-A Infiltration/Inflow III-B Sewer System Rehabilitation IV-A New Collector Sewers IV-B New Interceptors V CSO Correction VI Storm Sewers (In Phase I and Phase II MS4 areas) X Recycled Water Distribution Ex. Wastewater Treatment Plants NYS Environmental Facilities Corporation September 28, 2010
Non Point Source Projects -
Clean Water Act Section 319 VII-A Agricultural Cropland VII-B Agricultural Animals VII-C Silviculture VII-D Urban, excluding decentralized systems,
Green Infrastructure
VII-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. Regional Digester/Bioenergy Facility NYS Environmental Facilities Corporation Ex. Porous Pavement September 28, 2010
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 NYS Environmental Facilities Corporation September 28, 2010
Westcott Reservoir
Awarded $753,543 in GIGP for demonstration project Microturbine System 3 rd 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” NYS Environmental Facilities Corporation September 28, 2010
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 NYS Environmental Facilities Corporation September 28, 2010
NYS Environmental Facilities Corporation September 28, 2010 Philadelphia Water Department and WRT
Porous Pavement Lindenhurst Library - Suffolk County
Seagrit Planting Bed – NYC Green Streets NYC, NY
GIGP 2010 Grants
Two 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.
NYS Environmental Facilities Corporation September 28, 2010
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 NYS Environmental Facilities Corporation September 28, 2010
Application Tips
Focus on one innovative demonstration project Submit a complete and concise application Project selection based on GIGP 2010 goals and objectives NYS Environmental Facilities Corporation Green Roof – Rockefeller Center September 28, 2010
Stay Informed
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EFC President and CEO Matthew J. Driscoll [email protected]
NYS Environmental Facilities Corporation 625 Broadway Albany, NY 12207 1.800.882.9721
www.nysefc.org
Financing for a Sustainable Future
NYS Environmental Facilities Corporation September 28, 2010