March 29, 2012

Water Resources: Utilizing Technology, Partnerships and Nature

Michele N. Siekerka, Esq.Assistant Commissioner

Water Resource ManagementNew Jersey Department of Environmental Protection

What is Green Infrastructure?

• Utilizing soil and vegetation to manage rainwater where it falls • Infiltration• Vegetative uptake• Storage

Sustainable ROI• Environmental: can both manage

stormwater volume and treat runoff for a variety of pollutants

• Social : aesthetically pleasing and community building

• Economic: Can reduce the capital costs and O & M costs of gray technology; short term quicker impact

• Strategic Integrated Approach to Water Quality

• Leveraging Funding• NJDEP State Revolving Loan Fund

Federal pass through money; principal forgiveness

• NJ Environmental Infrastructure Trust

New Jersey’s Independent Financing Authority responsible for funding Environmental Infrastructure projects that protect the State’s natural resources and public health

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Policy Driving Action

2 Main Qualification Categories :

1. Clean Water• Point Source Clean Water Projects (WTF, CSO, Sludge, etc.)

• Non-Point Clean Water Projects (Storm water, Equip, Remediation)

2. Drinking Water

• Safe Drinking Water Projects (Treatment, Distribution)

Program Qualification -Water Quality Component

Examples of EIT Eligible “Green Projects”

Why Borrow Through NJEIT?Why Borrow Through NJEIT?AAA / Aaa Loan Rate ComparisonsAAA / Aaa Loan Rate Comparisons

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NJEIT 50% / 50% NJEIT 75% / 25% AAA New Jersey Municipal Bond Rate

Low “net” rate = blend of DEP 0% rate and AAA “market” rate

20 yr. savings on $1mm Borrowed:~ $120,000 / each 1% saved

Additional Benefits…Lower all-in financing costs•Economies of scale in co-mingled pool. Borrowers pay proportionate share of issuance fees (rating agency, underwriter, trustee, etc.). Equates to lower cost/borrower

Capitalized interest / Deferred Payments•Borrowers may capitalize Interest and defer repayment of Principal costs during construction… until completion of the project, up to six months after construction ( not to exceed 3 years from the loan)

Interim financing•0% financing is available to municipal borrowers (2% to Private Entities / Utilities) prior to long-term loan funding, providing timing flexibility for shovel-ready projects… And MUCH more …

Resources• USEPA Green Infrastructure web page

http://water.epa.gov/infrastructure/greeninfrastructure/index.cfm

• Implementing Watershed-Based Green Infrastructure for Stormwater Management: Case Study in Blacksburg, Virginiahttp://www.cabellbrandcenter.org/Downloads/sr452009.pdf

• NYC Green Infrastructure Plan, A sustainable Strategy for Clean Waterways

http://www.georgetownclimate.org/resources/nyc-green-infrastructure-plan-a-sustainable-strategy-for-clean-waterways

• Rooftops to Rivers, Green Strategies for Controlling Stormwater and Combined Sewer Overflows http://www.nrdc.org/water/pollution/rooftops/contents.asp

• The Value of Green Infrastructure for Urban Climate Adaptationhttp://www.cakex.org/virtual-library/value-green-infrastructure-urban-climate-adaptation

• A Triple Bottom Line Assessment of Traditional and Green Infrastructure Options for Controlling CSO Events in Philadelphia's Watersheds http://www.epa.gov/npdes/pubs/gi_phil_bottomline.pdf

Contact Information• http://www.njstormwater.org/

• http://www.njstormwater.org/bmp_manual2.htm

• Michele N. Siekerka, Esq. Asst. Comm. 609-292-4543 Michele.Siekerka@dep.state.nj.us

• Adriana Caldarelli 609-984-3660 Adriana.Caldarelli@dep.state.nj.us

• Sandy Blick 609-633-7045 Sandra.Blick@dep.state.nj.us