Water Quality Issues for the Construction and Building Industry in 2014 A Presentation for the

Orange County Business Council

January 14, 2014 Mark Grey, Ph.D., Technical Director Construction Industry Coalition on Water Quality Building Industry Association of Southern California

Remarks Today On:

• • • • • –

Municipal Separate Storm Sewer System (MS4) permit renewal for North Orange Co.

Observations on permit implementation and experiences over past 5 years, and Land use and building adaptation to the latest generation of MS4 permits in California Collaborative efforts (public-private) for permit compliance and infrastructure planning

MS4 LID Alternative Compliance Program

Stormwater program compliance funding

Latest Generation of Phase 1 MS4 Permits in southern California

Location Regional Board North Orange County San Francisco Bay Area Santa Ana San Francisco Bay South Orange County San Diego Western Riverside County Santa Ana San Bernardino County Santa Ana Ventura County Los Angeles Southern Riverside County San Diego Los Angeles County San Diego Regional Los Angeles San Diego Date Adopted or Proposed 6/3/2009 10/14/2009 12/16/2009 1/29/2010 1/29/2010 7/8/2010 10/13/2010 11/8/2012 5/9/2013

Additional Stormwater Permitting Activity by State Water Resources Control Board

Permitting Action Phase II MS4 Permit Caltrans MS4 Permit Ocean Plan ASBS Discharge Exceptions Industrial General Permit Construction General Permit Date Adopted or Proposed February 5, 2013 September 19, 2012 March 20, 2012 2014?

2014?

Low Impact Development principles incorporated into MS4 permits in California

• Mimic Predevelopment

Hydrology

– Use natural features – Use site design – Use source controls – Use distributed controls, not

centralized

• Use Integrated Water

Resources Management

– Treating stormwater as a

resource at all scales

– Improving water quality and

augmenting water supplies regionally, watershed-wide

Stormwater LID Best Practices Categories

Infiltration $-$$ Grading Swale Trench Basin Drywell Gallery French Drain Permeables: --Asphalt --Concrete --Pavers Harvest and Use $$$ Rain Barrels Cisterns Tanks Uses: Irrigation Toilet Flushing Vehicle Washing Evaporative Cooling Industrial Process Dilution Water Other Non-Potable Evaporative $$$$ Green Roof Brown Roof Blue Roof Canopy Intercept Soil Amendment Runoff Dispersion Biofilter/Biotreat $$ Bioretention Biofiltration Planter Box Constr. Wetland Vegetated Swale Vegetated Strip Proprietary Device Biotreatment may use underdrains or overdrains

What is the San Diego Regional Permit Adopted in 2013 Telling Us About North Orange County Revisions in 2014?

• Watershed-based construct for water quality

compliance (planning and monitoring programs)

• A nod to more robust consideration of regional

solutions through LID BMP Alternative Compliance

• Push for zero discharge of stormwater (retention)

as the engineering standard; minimize use of biofiltration to meet the retention standard

• Push to remove all hydromodification control

(stream protection) exemptions for development

Observations and lessons from the existing North Orange Co. MS4 permit

• OCPW reports more than 10,000 acres of

property developed in the past 5 years instrumented with LID stormwater BMPs

• Use takes several forms, mostly infiltration

and biofiltration BMPs installed on-site

• Generally smooth transition by development

interests to adopt and use LID principles

• Water conservation efforts not overlooked in

achieving clean beaches/compliance

MS4 permits allow Alternative Compliance Programs for Qualifying Projects

• Permits require that the

design capture volume is managed on-site using LID BMPs

• The volume of runoff NOT

managed in LID BMPs must be “mitigated” or “offset”

• Options are identified in

MS4 permits:

– – –

“Mitigate” the volume difference at an off-site location Pay a fee equivalent to managing runoff from the project location using LID BMPs Credit trading systems

–

Watershed planning elements/instruments

LID BMP Installation Alternative Compliance Program Development

Basis: Phase I MS4 water quality permit conditions for compliance Backdrop: Increase water supply reliability in S. Calif. and emphasis on creating multi-benefit water conservation projects

• Evaluating and selecting projects and options • Identifying and creating framework elements • Identifying appropriate programs for the region • Establishing “equivalence” of alternative compliance options with on-site

compliance

• Creating participation options and agreements among parties: – Private development interests – Regional water quality and flood control agencies – Water and wastewater districts

Alternative Compliance Framework Elements

Needs and Opportunity Analysis Off-site and Regional BMP Framework Credit Trading System Framework Regulatory and Legal Basis Core Economic and Development Data Resource Expectations for Program Experiences from Other Programs

Off-site, Regional, and Credit Trading Framework: Some Options

1. Developer mitigates off-site 2. Developer purchases credits through private seller with retention capacity 3. Reimbursement agreement 4. Negotiated mitigation agreement (variations) 5. Community facility district

Content taken from Arne Anselm/Rebecca Winer-Skonovd, CASQA Conference 2012; Alternative Compliance in Ventura County: Viable Options and Lessons Learned

What are examples of off-site project alternatives for water quality compliance?

CASQA 2012 BMP of the Year Slide Source: City of Los Angeles

• Green street adjacent or

surrounding project

• Green streets near project

within catchment

• Facility retrofits

adjacent/near project

– Parking Areas – Parks • Streets/Retrofits outside

catchment of project

• Regional infiltration

within/outside project watershed

Agencies Performing Some Degree of Stormwater Capture in S. California

Agencies Orange County Water District LA County Flood Control/Public Works Orange County Public Works San Bernardino Flood Control District LA Dept of Water and Power City of Los Angeles Central Basin Municipal Water District Inland Empire Utilities Agency San Gabriel Valley Municipal Water District Water Replenishment District of Southern California Irvine Ranch Water District Chino Basin Water Conservation District San Bernardino Valley Municipal Water District Western Municipal Water District Eastern Municipal Water District Riverside County Flood Control and Water Conservation District City of Riverside United Water Conservation District

Establishing Equivalency for Alternative Compliance Programs

Core Economic Data

• Cost of installation • Cost of long term O&M • Benefits derived from

installation of LID BMPs

– Water Quality – Water Supply – Environmental – Property – Health

Resource Expectations

• Appears highly variable

depending upon location and development types

• Ultra urban, urban, and

suburban development patterns and different needs & opportunities create variation

• Orange County development

records offer some guidance on need

• Pilot projects needed in

opportune locations

Case Study Analysis of On-site Retention LID BMPs Installation and 20-year O&M Per Gallon Managed

LID BMPs Evaluated Infiltration Basin Infiltration Paver Cistern: outdoor Cistern: outdoor & indoor Green Roof Biofiltration Office Complex $4 $6 $12 $15 $103 $6 Residential Single Family Small Urban Infill Cost Per Gallon Retail Big Box $2 $3 $7 -- -- $18 -- $49 $1 $3 $5 -- $38 $4 $126 $21 $61 $2 Large Urban Mixed Use -- $9 -- $11 $84 $9 Installation and 20-year O&M Cost hierarchy normalized per gallon: Infiltration < Infiltration Pavers ≤ Biofiltration < Harvest and Use Cisterns < Green Roof

Equivalent Volume Retention Costs

Approximate Area (RUNOFF: GALLONS) BMP TYPE $/GAL Infl. Basin 2 <0.5 Ac 5,000 1-2 Ac 25,000 3-4 Ac 50,000 6-8 Ac 100,000 > 10 Ac 250,000 Design Capture Volume (GAL) Retention Range Equivalent Cost $10,000 $50,000 $100,000 $200,000 $500,000 Infl. Paver 5 $25,000 $125,000 $250,000 $500,000 $1,250,000 Biofiltration Cistern 6 13 $30,000 $65,000 $150,000 $325,000 $300,000 $650,000 $600,000 $1,300,000 $1,500,000 $3,250,000 Green Roof 38 $190,000 $950,000 $1,900,000 $3,800,000 $9,500,000 Cost Data from LID BMP Economic Analysis for Orange County, CA, 2012

Approved Water Quality Management Plans in Orange County 2007-2012

Simple example of revenue potential using 2011-2012 WQMP data

Assumptions (Very Rough)

• 10% of total acres covered by

WQMPs in 2011-12 can’t comply on-site (total acres =9,114)

• 10% = 911 acres • Assuming 19,000 gallons of

design capture volume per acre using rational method (90% imperviousness)

• Results in 17.3 M Gallons of

runoff Potential Revenue

• (17.3 M Gal.) x ($2/ Gal.)

using infiltration basin = $34.6 Million

• Appears unrealistically high • What about 1% of sites not

able to comply on-site?

• (91 Acres) x (19,000 gallons

per acre) x ($2/Gal.) using infiltration basin = $3.46 Million

Alternative Compliance Framework; Perspective and Distinctions Among Parties

Perspective

• Obtaining water quality

approvals is paramount to private development

• Meeting MS4 permit

requirements is paramount for principal and co permittees

• Water districts and related

agencies hold water supply reliability interests paramount

• • • • • •

Distinctions and Variations

MS4 permit requirements drive compliance options On-site preferred, then off-site allowed Where infiltration is feasible, then regional projects may represent best opportunity to achieve compliance and augment ground water supply Projects could be multi-agency, multi benefit or between private interests (credit trading, for example) Where infiltration is infeasible or won’t augment ground water supply, then other types of off-site projects apply Projects are likely to be local, where needs exist, such as green streets or park and playground improvements or retrofits of existing development

Economic Analysis Relating to Integrated Water Resource Planning

Questions:

• Where will suitability of

capturing stormwater align with expected property development and with existing infrastructure plans by cities and the counties?

• Where and what benefits will be

derived by implementing LID BMPs, and at what scale?

• What is the universe of benefits

to consider? How will benefits be calculated? What are the acceptable methods? Who will make the calculations?

Goals:

• Make the methods and

calculation procedures clear and transparent

• Use case studies to test the

framework, and produce the results; augment with work of the past two years in SC

• Produce a clear

understanding of benefits and costs of installing LID BMPs at relevant scales of development

Using Case Study Analysis Methods to Establish Alternative Compliance Program Framework

Orange Co. Case Study Analysis

• Apply optimization analysis

and tools

• Determine and apply

benefit-cost analysis framework

• Develop alternative

compliance framework, including credit trading and in-lieu options using development scenarios Orange County-Santa Ana Region Alternative Compliance Framework

• Perform similar analysis

done in Orange County specific to Santa Ana region

• Assist in developing pilot

projects to test Alternative Compliance Framework

• Create a clear, simple,

pathway for water quality compliance given local needs within a single Regional Board territory

Stormwater Program Financing

Funding Needs: Challenges:

• Water Quality Permit

Compliance

• Total Maximum Daily Load

Requirements

– Nutrients and Metals – Bacteria • Retrofitting Existing

Infrastructure with “Green” Infrastructure

• Water Supply

Augmentation

• Mechanisms to raise

revenue for meeting compliance obligations

– Fees (voter approval) – Taxes (voter approval) – Product charges • Public Understanding of

Need

• Competing Priorities

THANK YOU Orange County Business Council!

Water Quality Issues for the Construction and Building Industry in 2014

Contact:

Mark Grey, Ph.D.

[email protected]

909-525-0623