Economic Impact of Stormwater Financing
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1 Economic Impact of Stormwater Financing Presented by Dan Nees Environmental Finance Center, University of Maryland July 9, 2013
2 Discussion Points Project brief project overview Overview of stormwater financing environment within the Chesapeake Bay region Define and explain economic impact analysis (EIA) Summarize EFC stormwater EIA project Discuss role of EIA in moving stormwater financing programs forward
3 Overview of Stormwater Financing There has been a fundamental shift in approach to stormwater financing: Push for impracticability Desire for efficient solutions
4 Overview of Stormwater Financing There has been a fundamental shift in approach to stormwater financing: Push for impracticability Desire for efficient solutions
5 Implementation Shift Agriculture Stormwater Wastewater Individual Community Institution
6 Stormwater Mitigation Costs Investments Benefit Effectiveness Impact = Environmental, Achieving economic, Relationship desired fiscal, goals social to the efficiently economy
7 Stormwater Management in Context Cost benefit analysis: compares benefits and costs Determine soundness of investment Compare projects Cost effectiveness: how well a policy achieves a desired goal Economic impact analysis (EIA): examines effects on the economy of a given area All three are necessary; none are sufficient
8 Cost/Benefit Lynchburg, VA Transportation Economic development Natural resources Education Human health Financial efficiency
9 Cost/Benefit Lynchburg, VA Transportation Economic development Natural resources Education Human health Financial efficiency
10 Cost/Benefit Greenville, SC Downtown revitalization Community redevelopment Economic development Parks and recreation Natural resource restoration and protection
11 Cost/Benefit Greenville, SC Downtown revitalization Community redevelopment Economic development Parks and recreation Natural resource restoration and protection
12 Cost/Benefit Greenville, SC Downtown revitalization Community redevelopment Economic development Parks and recreation Natural resource restoration and protection
13 Cost/Benefit Greenville, SC Downtown revitalization Community redevelopment Economic development Parks and recreation Natural resource restoration and protection
14 Cost/Benefit Lancaster, PA Downtown revitalization Community redevelopment Economic development Parks and recreation Natural resource restoration and protection
15 Cost/Benefit Lancaster, PA Downtown revitalization Community redevelopment Economic development Parks and recreation Natural resource restoration and protection
16 Cost Effectiveness Accomplishing a stated goal as efficiently and effectively as possible: Reduced impervious surface
17 Cost Effectiveness Accomplishing a stated goal as efficiently and effectively as possible: Reduced runoff volume
18 Cost Effectiveness Accomplishing a stated goal as efficiently and effectively as possible: Reduced nutrient emissions Photograph by Peter Essick, National Geographic
19 Economic Impact Frames the issue within a community context: Economic development Job training Infrastructure financing
20 EFC Stormwater Financing Project Technical assistance project being implemented in three urban communities: Baltimore, MD; Anne Arundel County, MD; and, Lynchburg, VA. Supported through a grant by the National Fish and Wildlife Foundation. Project partner: Business Economic and Community Outreach Network (BEACON), at Salisbury University.
21 Project Phases Phase 1: economic impact assessment Phase 2: assessment of existing financing programs and processes Phase 3: recommendations for creating efficiencies and maximizing community benefit This presentation focuses on the results of Phase 1
22 Stormwater Financing in Context Lynchburg, VA Baltimore, MD Anne Arundel County, MD Population 77, , ,500 Median Household Income $38,000 (state average: $63,000) $40,100 (state average: $72,000) $85,700 (state average: $72,000) Citizens below poverty line 23.2% (state average: 10.7%) 22.4% (state average: 9%) 5.5% (state average: 9%) Median home value $146,100 (state average:$254,600) $163,700 (state average: $319,800) $361,700 (state average: $319,800) Source: US Census Bureau 2012
23 Project Process and Parameters Focus on Chesapeake Bay restoration obligations: Watershed Implementation Plans (WIPs) These plans are required to achieve Bay-wide Clean Water Act requirements (TMDL)
24 Project Process and Parameters Assessments were conducted at the county and/or municipal level EIA tools: IMPLAN, idecide Assessment results: Impact per $100 million in construction investment Impact per $10 million in operations and maintenance
25 Estimated Economic Impact of Construction Activities: Value Added Based on $100 million investment
26 Estimated Economic Impact of Construction Activities: Jobs Supported Based on $100 million investment
27 Estimated Economic Impact of Operations and Maintenance Activities: Value Added Based on $10 million annual investment
28 Estimated Economic Impact of Operations and Maintenance Activities: Jobs Supported Based on $10 million annual investment
29 Impacts on Industry Sectors
30 Impacts on Industry Sectors Product Development Manufacturing/ Distribution Site Design Civil Engineering Landscape Architecture Hydrologic/Hydraulic Engineering Environmental Engineering Landscape Media Construction Equipment Plumbing Equipment & Supplies Building Supplies Farm & Garden Machinery & Equipment Nurseries and Horticultural Services Arborist Services Cistern Manufacturers Meters Sensors and Components Manufacturers Landscape Architecture Architecture Firms Planning and Expediting Services Civil Engineering Services Hydrology Permitting and Administrative Services Soil Scientist Services Source: Gray to Green: Jumpstarting Private Investment in Green Stormwater Infrastructure (Philadelphia SBN s Green Economy Task Force)
31 Impacts on Industry Sectors Construction Monitoring/ Maintenance General Construction Services Paving, Surfacing and Tamping Services Roof Contracting Services Landscaping Services Poured Concrete Foundation & Structure Contracting Services Site Management and Evaluation Plumbing Services Electrical Services Hauling Services Truck and Tractor Operations Weatherization Companies Demolition/Deconstruction Hazardous Waste Treatment and Disposal Services Service Technician Firms Landscaping Compliance Testing and Monitoring Septic Tank Servicers and Sewer Pipe Cleaning Plumbing/Sprinklers/Irrigation Jetvac Cleaning Services Erosion and Sediment Inspection Source: Gray to Green: Jumpstarting Private Investment in Green Stormwater Infrastructure (Philadelphia SBN s Green Economy Task Force)
32 Impacts on Industry Sectors
33 Impacts on Industry Sectors
34 Conclusion New shift to community-focused implementation Context in the community matters: Impact Benefit Effectiveness Full project report is available in EFC website:
35 QUESTIONS? Dan Nees, Senior Research Associate Environmental Finance Center
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