States Study Funding Sources for Storm Water Regulations
By Thomas Simbro
Polluted storm water runoff is a leading cause of impairment to the nearly 40 percent of surveyed U.S. water bodies that do not meet quality standards. Mandated by Congress under the Clean Water Act, the National Pollution Discharge Elimination System (NPDES) Storm Water Program is a comprehensive two-phased national program for addressing the non-agricultural sources of storm water discharges that adversely affect the quality of U.S. waters.
The new EPA Phase 2 Storm Water Rule (P2 SWR) is a significant step toward reducing the impact of pollution from storm water runoff. Communities across the country are not only asking why these new regulations are being imposed, but also seeking federal and state programs to pay for the storm water planning and implementation, with existing budgets already stretched thin.
In my home state of Massachusetts alone, the P2 SWR currently affects 189 communities. Communities are selected under the criteria set forth in the P2 SWR, which chiefly applies to smaller municipal separate storm sewer system (MS4s) operators with an urban population up to 100K; construction activity between 1 to 5 acres; and public body MS4 operators (state highway departments, universities, correctional facilities, etc.). Depending on the complexity of the MS4 and current status of regulatory control and storm water mapping, the cost of preparing and implementing a storm water management plan that addresses the six minimum control measures may range from $30,000 to $1.5 million.
What are the Six Minimum Control Measures?The P2 SWR requires the submission of a Storm Water Management Plan (SWMP) by MS4 operators. The goal of the plan is to protect water quality by reducing the discharge of storm water pollutants to the maximum extend practicable by using Best Management Practices (BMPs). Typical storm water pollutants are nutrients, sediments, bacteria, salt, metals, volatile organic compounds (VOCs) and total petroleum hydrocarbons (TPHs). In accordance with the P2 SWR, the SWMP must address the following six minimum control measures:- Public education and outreach
- Public participation and involvement
- Illicit discharge detection and elimination
- Construction runoff control
- Post-construction runoff control
- Pollution prevention through good housekeeping
The SWMP must outline measurable goals for each BMP control measure for the five-year duration of the general permit. Some examples of the numerous measurable goals are: developing a comprehensive storm sewer system map; illicit connection investigation and elimination program; construction of a runoff control structure (i.e., wet pond or infiltration basin) in a sensitive area; public education mailer regarding impact of improper use of lawn fertilizers and pesticides; development of a volunteer monitoring program; and an enhanced catch basin cleaning and maintenance program.
Important Dates- December 1999: Phase 2 Storm Water Rule promulgated.
- October 2001: EPA is planning to issue guidance on measurable goals for small MS4 operators.
- December 2002: General permits for small, regulated MS4 operators and small construction areas will be issued.
- March 2003:Regulated MS4s must obtain permit coverage and submit their SWMP.
- From 2003-2008:Regulated MS4s are to fully implement their storm water management plan by the end of the first permit term (typically 5 years).
The Massachusetts Department of Environmental Protection (DEP) has implemented a grant and loan program providing opportunities for the planning and implementation of watershed protection. These opportunities consist of federal funds from EPA as authorized by the Clean Water Act (Sections 604(b) and 319) and state-appropriated bond funds (state revolving loan fund). Due to the funding limits of each program, the process for receiving assistance is typically quite competitive, but certainly worth the time and effort to prepare an application. The following is a selected list of grant and loan programs offered in Massachusetts for which all (or a portion) of a Phase 2 Storm Water Rule project may be eligible. In general, similar programs are offered in other states, with a varying level applicability and funding commitment.
Clean Water SRF ProgramPerhaps the best federal source for Phase 2 Storm Water Rule funding is the State Revolving Loan Fund (SRF) Program. The SRF program was established to provide a low-cost funding mechanism to assist municipalities seeking to comply with federal and state water quality requirements for water pollution abatement projects.Throughout Region I, various states have taken advantage of SRF to widely varying degrees. This is one of the areas where Massachusetts is a leader, providing a guide to other states. The MADEP Division of Municipal Services and the Massachusetts Water Pollution Abatement Trust jointly administer the SRF Program. Each year, MADEP solicits projects from cities and towns in the Commonwealth for subsidized loans (currently at a 2 percent interest rate). In recent years the program has operated at an annual capacity from $150 to $200 million per year, which funds 40 to 50 projects annually.
Financial assistance is available for storm water management planning, design, construction and remediation projects. In order to be considered for funding, a community must complete a Project Evaluation Form at the time of the project solicitation that DEP conducts in the fall of each year. DEP ranks projects using a rating system that assigns points on the basis of various environmental, program, and implementation criteria such as a project's demonstrable water quality benefits, ability to eliminate or mitigate public health risk, or necessity to come into or maintain compliance with applicable discharge permits.
After evaluating the project applications, DEP develops an annual list of projects that are eligible for financial assistance. From this annual list, and on the basis of a project's readiness to proceed and priority ranking status, the Department assigns projects to a fundable list. In recent years, there have been several Massachusetts communities that have been successful in obtaining funding to develop Storm Water Management Plans which comply with the Phase 2 SWR.
Although Massachusetts has progressed farther than its sister New England states in complying with Phase 2 storm water requirements, both Maine and New Hampshire are contemplating the best ways to help their municipalities meet these national standards.
Maine received $10.4 million in SRF funding last year and will apply for $10.4 in this year's federal budget cycle. The SRF funds have been blended with bonds issued by Maine Municipal Bond Bank, repayment funding, or a combination of repayment and bond funds. SRF has been used to finance various kinds of infrastructure projects, including wastewater treatment facilities. SRF monies may well be used to help finance compliance with Phase 2 storm water requirements.
The Maine DEP (Department of Environmental Protection) 319 Watershed Management Program for non point source water-quality improvements could also provide funds for some Phase 2 storm water requirements.
New Hampshire has used SRF monies to provide both loans and grants to municipalities for approved kinds of infrastructure work. Typically, these grants have provided 20 percent to 30 percent of total project cost, determined by a formula that takes into account community income and user fees. Such an approach might well be available to the state for storm water projects, and may well be an option they consider.
604(b) Water Quality GrantsThis grant program is authorized under the federal Clean Water Act Section 604(b) for water quality assessment and management planning. The Massachusetts DEP has prioritized these grants for watershed or subwatershed based nonpoint source assessment type projects that will provide diagnostic information to support the department's basin-wide water quality management activities. Each project should contain a public outreach component.Generally, the following examples of storm water related assessment and planning activities receive priority consideration for funding:
- Assessment of the effectiveness of storm water BMPs;
- Assessment of local water quality protection measures (by-laws, regulations, enforcement, etc.);
- Assessment of local and regional environmental awareness, activities and concerns (education and planning related to managing nonpoint source pollution)
- Water quality assessment
- Wetlands assessment and restoration planning
Cities and towns are eligible for these grants, as well as regional public planning agencies, conservation commissions or districts. Request for Responses (RFR) are typically issued by DEP each October for competitive projects with proposals due approximately six weeks later. Matching funds are not required, but proposals may be enhanced by offering additional funding or in-kind cost-sharing as demonstration of local support.
Coastal Zone Management (CZM) GrantsIn 1994, the Massachusetts legislature approved funding for the remediation of storm water pollution from roads, highways, bridges, and other paved roadways and for the construction of boat wastewater pumpouts with the primary goal of improving coastal water quality. Decreasing storm water pollution and boating discharge will remove contaminants from shellfish beds, protect submerged aquatic vegetation and fish habitat and improve water quality in rivers, streams and coastal harbors and bays, thereby increasing commercial and recreational opportunities.The grants, administered by the Massachusetts CZM under the Coastal Pollutant Remediation (CPR) Program, provides reimbursement to municipalities within the Massachusetts coastal watershed (220 cities and towns) for the design and construction of storm water remediation technologies and boat pumpouts. In addition, funds are also available for studies to assess water quality in areas where storm water and boating impacts are suspected. As part of the program conditions, the municipality commits to match 25 percent of the total project cost. Request for responses begin in June with deadline for project applications in August. Grants are awarded to proposals on a competitive basis based upon a review committee's evaluation of meeting the goals of the program. The CPR Program has awarded over $1.7 million to municipalities in the program's first four years.
EPA 319 Nonpoint Source Grant ProgramThis grant program is authorized under Section 319 of the CWA for implementation projects that address the prevention, control, and abatement of nonpoint source pollution. Proposals may be submitted by any interested Massachusetts public or private organization. To be eligible to receive funding, a 40 percent non-federal match is required from the grantee. This match may be cash or from in-kind services performed as part of the approved project activities. Projects are selected on a competitive basis by DEP. The projects are included in the department's yearly program plan, which is submitted to EPA at the start of the federal fiscal year.Types of eligible 319 projects include: sub-watershed; demonstration; watershed resource restoration and in-lake projects. Nonpoint source program development, assessment and planning are not considered implementation activities and are not eligible for 319 finding.
National Estuary ProgramThe National Estuary Program (NEP) was established in 1987 by amendments to the Clean Water Act to identify, restore, and protect nationally significant estuaries of the United States. Unlike traditional regulatory approaches to environmental protection, the NEP targets a broad range of issues and engages local communities in the process. The program focuses not just on improving water quality in an estuary, but on maintaining the integrity of the whole system. This includes its chemical, physical, and biological properties, as well as its economic, recreational, and aesthetic values.There are currently 28 estuary programs across the Northeast, South Atlantic, Gulf of Mexico and West Coast. In Massachusetts, there are three designated estuaries for which grants may be applied: Buzzards Bay, Massachusetts Bay and Narragansett Bay. The EPA-awarded NEP grants focus on improving water quality through nonpoint source controls and BMPs. In FY99, the 28 NEPs received an average of $300,000 in funding.
ConclusionThere are funding sources available for the P2 SWR. Because of the competitive nature of the availability of funds, MS4 operators will need a time and effort commitment to prepare the applications, but the rewards can be significant. MS4s should completely understand the timetable for each grant or funding source and how it coincides with the P2 SWR Compliance Timeline, which is just around the corner.Because the Phase 2 Storm Water mandates are national, any state that has not as yet developed funding mechanisms that enable its municipalities, water districts, and other entities to adhere to these rules is running out of time faster than it is running out of water or money. Regional pride notwithstanding, for such states, a review of the Massachusetts programs is in order.
About the Author:Thomas Simbro, P.E., is a Project Manager with Woodard & Curran, Dedham, MA. He has 15 years of environmental engineering experience and specializes in storm water management concerns.