Stimulus Funding of Environmental Projects

Environmental Business Council

Nov. 16, 2009

$600,000.0$200,000.0

$2,000,000.0

$4,000,000.0$300,000.0

$100,000.0

Brownfields CWSRF DWSRF DERA LUST Superfund

Dollars in Thousands Total: $7.2 Billion

EPA’s Stimulus Investments

Communities

States

EPA

Common Goals

Transparency

Accountability

Progress

Real results

Allocate funds quickly

Put our dollars to work immediately

Create jobs

Build critical infrastructure

Sustain communities

Enhance environmental quality

Since 1987 State Clean Water and Drinking Water SRFs have provided more than $84 billion for 30,000 projects

SRFs create a perpetual source of state funding for drinking water and wastewater infrastructure.

ARRA Funding• $4 billion for Clean Water allotted based

on statutory formula• $2 billion for Drinking Water allotted

based on proportional share of national need

• Minimum 50% subsidy• 20% Green Project Reserve• No state match

Clean Water and Drinking Water State Revolving Fund (SRF)

Stimulus $$ as a Catalyst

$405.6 million in projects

leveraging, other means

$149.7 million

$296 million

ARRA CWSRF funds

ARRA DWSRF funds

$1.1 billion in projects

leveraging, other means

Region 1 CWSRF Capitalization Grants vs. Assistance Provided (2005-ARRA)

$0

$200

$400

$600

$800

$1,000

$1,200

2005 2006 2007 2008 2009 ARRA

Millio

ns

CWSRF Federal Capitalization Grants CWSRF Assistance Provided Through Loans

Region 1 DWSRF Capitalization Grants vs Loans Provided

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

2005 2006 2007 2008 2009 ARRA

Millio

ns

DWSRF Federal Capitalization Grants DWSRF Assistance Provided Through Loans

• Funds available through September 30, 2010 – under contract or construction by 2/17/10

• 50% used for “additional subsidization” in the form of principal forgiveness, negative interest rates, or grants

• 20% of funds must be used for green infrastructure, water efficiency, energy efficiency, or environmentally innovative projects

• Buy American and Davis Bacon apply

SRF Provisions

SRF ChallengesBuy American Provisions for Steel, Iron & Manufactured Goods • 1/3 of all waivers submitted nationally and 1/2 of

approved specific waivers.• Concerns – compliance, 80% projects not bid yet

20% Green Project Reserve – Categorical or Business Case• Projects coming in under bid• Projects falling off the list• Adequate solicitation

Davis Bacon Provisions – prevailing wage rates• 2010 Appropriations Bill language applies DB to entire

universe of SRF projects – impacts on loans, bond issuance.

•161 CWSRF projects underway or complete (235 total)

•208 DWSRF projects underway or complete (227 total)

•On target for meeting:• the 20% Green Project Reserve (MA had $68M in GPR)• the 2/17/10 deadline for under contract or construction

•Current focus: getting the money paid out

Status of New England’s

Stimulus Work

Green Project Reserve

Over 100 ARRA projects were all or part green

Many energy efficiency and renewable energy projects

• Worcester, MAHeating upgradesSolar PV44-kW hydroelectric turbine

• Chelmsford, MASolar PV system

MA Green Projects

• Pittsfield – energy efficiencies netting 75 -85% reduction in annual electricity costs

• Falmouth – wind turbines expected to offset 40% of electricity costs

• Lee – “net zero” will produce 100% of its drinking water treatment power from solar, hydro and maximizing energy efficiency

• $1,960,000 ARRA loan for stormwater remediation

• Impaired stream – de-icing fluid, gasoline and diesel organics, sediment and thermal impacts

• Installed sediment contols, aeration systems powered by wind,and wetland treatment cells

• 120 trees will be planted to provide shade and nutrient uptake

Green Project :Bangor Airport

Bangor Airport Bioretention Swale: Under Construction

Bangor Airport Bioretention Swale:

Completed

Sub-Surface Treatment Inlet Structure

Three Windmill Towers and Blade

Assembly

CWSRF Historical Activity

CWSRF Activity Pre-Stimulus (1987-2009)

0

200

400

600

800

1000

1200

1400

1600

CT ME NH RI VT

CWSRF Activity Pre-Stimulus (1987-2009) Federal grant CWSRF Activity Pre-Stimulus (1987-2009) SRF Funds available

CWSRF Activity Pre-Stimulus (1987-2009) Assistance provided

MA CWSRF

MA CWSRF Activity Pre-Stimulus (1987-2009)

0

500

1000

1500

2000

2500

3000

3500

4000

4500

Federal grant SRF Funds available Assistance provided

2010 Appropriations Bill

• $1.38B nationally for DWSRF

• $2.1 B for CWSRF

• 20% GPR

• 30% subsidy for both programs

• Davis Bacon requirements

2010 Appropriations FundingAPPROXIMATIONS

• Clean Water SRF – CT $25M– ME $15.7M– MA $69.1M– NH $20.3M– RI $13.6M– VT $10M

2010 Appropriations (cont. APPROXIMATIONS)

• Drinking Water SRF– CT $13.5M– ME $13.5M– MA $25.3M– NH $13.5M– RI $13.5M– VT $13.5M

Brownfields Program• $100 million to assess and clean up brownfields sites

and to train local residents in green jobs.• Stimulus funds are not subject to the cost share

requirement.• Stimulus Goals: To increase the number of communities

receiving brownfields funding, to increase the number of residents receiving training for environmental jobs, and to promote sustainable, green reuse of formerly contaminated sites

• Progress to Date: New Job Training Grant Competition posted on March 19th. Developed Supplemental Funding Requests for Revolving Loan Funds (RLF) Grants and established performance measures for stimulus funding

Brownfields

Superfund Program• $600 million for the remedial program to

clean up sites listed on the National Priorities List (NPL)

• States are required to provide a 10% cost share negotiated prior to the start of the remedial action.

• Stimulus Goals: Increase pace of environmental cleanups and return sites to communities for productive use

• Progress to Date: We have assured contracts are in place, and are developing an implementation plan to obligate funding ahead of the statutory schedule.

• EPA will ensure transparency of funding decisions without undermining the competitive bid process

Superfund

Leaking Underground Storage Tanks (LUST) Program• Approximately $10 million to New England States to clean up

spills of petroleum from federally regulated underground storage tanks (USTs), where the owner is unknown, unwilling or unable to do the work.

• Stimulus funds are not subject to the cost share requirement.• Stimulus Goals: To award funds to states to clean up leaking

USTs across New England and create/retain jobs.• Progress to Date: Developed grant allocation formula;

formulating program-specific guidance, performance measures, reporting requirements, and establishing tracking and reporting processes.

• EPA- New England is working to assist our state partners to develop draft workplan narratives/budgets and states are developing potential eligible sites lists.

LUST

DERADiesel Emissions Reduction Program (DERA)• $300 nationally

• State Allocation Program - $88.2• National Campaign Competition - $155.8M• Emerging Technologies - $20M• SmartWay Clean Diesel Finance - $30M• Agency Management and Operations -

$6M• Stimulus Goals: Retrofit or replace older diesel

engines; Through the development of these technologies maintain and create jobs in the manufacturing and service sectors across the country

• No cost share requirement

DERA in New England

• $8.8M in competitive grants awarded for diesel emissions reduction projects

• 9 competitive grants awarded

• $1.73 to each N.E. state to implement grant and loan programs for clean diesel projects

In closing, we acknowledge ARRA’s challenges but, the investment in conjunction with our cooperation will engender a healthier environment for this generation and the next.

EPA & the ARRA

Contact InformationBrownfieldsCarol Tuckertucker.carol@epa.gov617-918-1221

Clean Water and Drinking Water SRF Jackie LeClairleclair.jackie@epa.gov(617) 918-1549

SuperfundLarry Brillbrill.larry@epa.gov(617) 918-1301

Leaking Underground Storage TanksBill Torreytorrey.bill@epa.gov617-918-1311

DERAHalida Hatic(617) 918-1860hatic.halida@epa.gov

www.epa.gov/recovery