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Kelly TuckerU.S. Environmental Protection Agency

Willow tree planted in a community garden in Camden, NJ

The Clean Water State Revolving Fund:Flexible Funding for the Urban Tree Canopy

Jessica FranziniNJ Tree Foundation

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Overview

• Introduction to the Clean Water State Revolving Fund (CWSRF)• Program eligibilities and funding

flexibility• SRF-UCF Partnership• Example Project: Camden SMART, of

which the NJ Tree Foundation is a member

What is the CWSRF?

20% State Match

Federal Grant

CWSRF Loans

Loan Repayments

$5.8 Billion in Financing During Fiscal Year 2015

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• The CWSRF program provides low-cost financing for a wide range of water quality infrastructure projects including:• Publicly owned treatment works• Nonpoint source projects• Implementation of a National Estuary Program comprehensive

conservation and management plan• Decentralized systems• Water conservation• Watershed pilot projects• Energy efficiency• Water reuse projects• Security measures at POTWs• Technical assistance• Stormwater projects

CWSRF Eligibilities

The Green Project Reserve• The American Recovery and

Reinvestment Act of 2009 and subsequent annual appropriations require all CWSRF programs to use a portion of their federal grant for projects that address green infrastructure, water and energy efficiency, or other environmentally innovative activities.• Through September of 2016 CWSRF

programs have provided over $950 million for green infrastructure.

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Clean Water State Revolving Fund Green Infrastructure Policy

Green Infrastructure Policy for the CWSRF: (January 2016) Encourages financing of green infrastructure projects nationally through actions including prioritizing projects, marketing the program’s eligibilities, and providing financial incentives such as additional subsidization.

Financing Green Infrastructure, A Best Practices Guide for the CWSRF: (December 2015) Illustrates incentives states can use to encourage financing of green infrastructure and foster sustainability within their programs.

• Co-funding - with other federal or state programs• Sponsorship – POTW project paired with GI project• Conduit Lending - pass-through and linked deposit loans • Guarantees

Serious Savings

Cost Savings of CWSRF Below-Market Interest Rates

CWSRF Rate

Market Rate

0.0% 1.0% 2.0% 3.0% 4.0%

5.0% 38% 31% 24% 16% 8%

6.0% 43% 36% 30% 23% 16%

When the market rate is 6.0%, a 3.0% CWSRF loan to a $100,000 project is equal in savings to a $23,000 grant and a $77,000 loan at market rates.

Flexible Repayment Options

• Identifying a repayment source can be challenging for stormwater projects.• CWSRF assistance recipients have the flexibility to access income from many sources

as repayment, including:• Usage based wastewater bill charges• Special assessments• Home owner association assessments• Stormwater district fees• Farming revenues• Non-profit membership fees• Home owner fees• Landfill fees• For profit company revenue• Property tax revenue

Additional Subsidization

• Under certain conditions, CWSRF programs may provide up to a fixed percentage of their capitalization grants as additional subsidization in the form of principal forgiveness, negative interest rate loans, or grants.• The annual CWSRF appropriation must be greater than $1 billion.• The recipient must be a municipality or inter-municipal, interstate, or state

agency.• Additional subsidization may only be used to help address affordability issues or

to implement a process, material, technique, or technology that addresses water or energy efficiency goals; mitigates stormwater runoff; or encourages sustainable project planning, design, and construction.• Over $170 million of additional subsidization has been provided to GPR projects

Loan Sponsorship

Project POTW Project OnlyPOTW Project + NPS Project

(Sponsorship)

Project Size $1,000,000 $1,200,000

Interest Rate 2.98% 1.06%

Repayment Amount

$33,366 (2x / year)

$33,366 (2x / year)

• POTWs can sponsor a NPS project in their community in exchange for a reduced interest rate on their CWSRF loan• No financial impact to the POTW• Projects without an easily identifiable repayment source get implemented • States need to judiciously use this tool because it does impact the buying

power of the CWSRF

Interest rate is set so that repayments remain the same

CWSRF –Urban and Community Forestry Partnership

• Arizona: UCF staff are publicizing the program and serving as technical experts in helping potential SRF clients develop projects. UCF and SRF staff are looking out for place based projects to partner around.• New Jersey: UCF staff attended two meetings with water folks since

connecting just a few short months ago. Touching base again shortly after Partners Conference. • Georgia & Oklahoma: Conversations have started between state level

UCF and SRF personnel.

Introduction to NJ Tree Foundation

Trees planted along N. 32nd Street in Camden

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Introduction to Camden, NJ

Flooding along Delaware Avenue Photo of Sycamore Street in Camden before tree planting

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Projects Made Possible in Camden, NJ

Top: Rain garden at Octavious Catto SchoolRight: Stormwater planer and porous pavement on Cramer Street

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Projects Made Possible in Camden, NJ

Waterfront South Rain Gardensfrom abandoned gas station to rain garden park

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Projects Made Possible in Camden, NJ

Phoenix Parkfrom abandoned factory to

waterfront park

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Projects Made Possible in Camden, NJ

Cisterns and Rain Barrelsinstalled at residents’ homes, in community gardens, at schools, and at churches

Both photos: Respond, Inc.

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Projects Made Possible in Camden, NJ

Baldwin’s Run* Day-lighting of a stream

* Installation of a boardwalk* View of the Delaware River

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Projects Made Possible in Camden, NJ

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Learn more at www.camdensmart.com and www.njtreefoundation.org

http://www.epa.gov/cwsrf

Jessica Franzinijfranzini@njtreefound

ation.org

Kelly Tuckertucker.kelly@e

pa.gov