The New York State Environmental Facilities Corporation

1. The New York State Environmental Facilities Corporation 10th Annual Symposium on Environmental & Energy Systems Oncenter Complex, Syracuse, NY September 28, 2010 David Paterson, Governor Pete Grannis, Chairman Matthew J. Driscoll, President & CEO

2. The Environmental Facilities Corporation Providing Low-cost Financing and Technical Assistance to Municipalities, Businesses, and NY State Agencies for Environmental Projects • A Public Benefit Corporation • Accountability • Transparency • Clean Water State Revolving Fund (1987 Clean Water Act Amendments) • Clean Water Program: 50% Interest Subsidy • Drinking Water State Revolving Fund (1997 Safe Drinking Water Act) • Drinking Water Program: 33.3% Interest Subsidy

3. NYS Water Infrastructure Needs • Aging Sewers • Combined Sewer Overflow • Over 100 years old • Declining Water Quality • Agricultural and Other Nonpoint Sources of nutrients • CW - $36.2 Billion: 20 Years • $11 Billion in Urgent Need • DW - $38 Billion: 20 years • Historic Declines in Federal Funding • Delayed Projects

4. SOURCE: 305 (b) Water Quality Report

5. National Water and Sewer System Numbers 850 billion gallons of untreated wastewater discharged annually 32 years average useful life of water treatment equipment $390 billion to replace and build new wastewater systems over next 20 years $10,000 per household cost of replacing water mains and treatment plants 3% of US electricity demand accounted for by water systems Electricity is the second largest operational cost for wastewater treatment plants

6. Water and Sewer Systems Water and Sewer Infrastructure Spending Nation-wide (a) 2005: $90.1 billion ($305 per capita) 2050 projections (b): $133.5 billion: at current population trends $115.7 billion: at 50% reduction in immigration $90.1 billion: at zero population growth Notes: a: Capital, operations, and maintenance spending by federal, state and local governments in 2006 dollars. b: Assumes per capita spending remains at 2005 levels. Sources: Congressional Budget Office, American Society of Civil Engineers, American Water Works Association, Pew Research Center.

7. An Underfunded Legacy In the last year, federal lawmakers have allocated more than $10 billion for water infrastructure programs, one of the largest such commitments in history. An EPA study estimated that $335 billion would be needed simply to maintain the nation’s drinking water systems in coming decades. Federal Wastewater Treatment Funding 1986-2010 Appropriations ($billion) Federal Fiscal Year

8. Clean Water SRF • Leverage rate financing with 50% subsidy for up to 30 years • Hardship financing as low as 0% interest for up to 30 years • Short term financing for 3 years at 0% interest

9. Drinking Water SRF • Leverage rate financing with 33% subsidy for up to 30 years • Hardship financing at 0% interest for 30 years, • Only if needed to reach “Target Service Charge” • Short Term Financing for 3 years at 0% interest • SRF Backed, Guarantee Program • Communities Benefit From the Corporation’s AAA Rating • Fund components of projects that are “green” • At least 20% of 2010 federal cap grant must go for green components

10. How SRF Programs Work

11. CWSRF Intended Use Plan (IUP) The Intended Use Plan (IUP), published on an annual basis, identifies funds available to the CWSRF and uses of those funds. • Effective October 1st through September 30th (Federal Fiscal Year) • Project Priority Lists of potentially eligible projects • Annual List (Projects expecting financing in current year) • Multi-Year List (Projects to be financed in future years) “Subsidy Line”

12. Short-Term CWSRF Financing EFC Works like a credit card…SRF line of credit for municipalities to charge project costs.

13. CWSRF Short-Term Application Submission Signed Application Form Application Checklist Approvable Engineering Report Adoption of a Bond Resolution Completion of the State Environmental Review Process (SERP) Approval of project by the NYS Office of Parks, Recreation and Historic Preservation (SHPO or OPRHP) Approval of Sewer District Formation by the State Comptroller’s Office (if necessary) A Complete CWSRF STF Application:

14. Long-Term CWSRF Financing 30 years…works just like a home mortgage…

15. Hardship Eligibility The CWSRF Hardship Program provides long-term financing at a reduced interest rate, as low as 0%, to communities that have been determined to be economically distressed by the implementation of an eligible water quality improvement project. • Available for point source (Section 212) projects with a total project cost up to $14 million. • Project must be listed on annual list of IUP above subsidy line. • A hardship application form must be submitted to be considered for hardship eligibility including information on: • Equivalent Dwelling Units (EDUs) served by the project • Existing sewer debt service • Existing and projected operation and maintenance cost • Project cost funded by other sources (grant, loan, municipal sources, etc.) • Hardship Confirmation Letter with Two Year Expiration. • Hardship projects in IUP Category D

16. 2010 CWSRF Highlights • $225 million Federal Appropriation • $736 million in CWSRF loans are available to communities. • Principal Forgiveness (PF) / Grants • $112 million available for clean water projects • Green Innovations Grant Program • Funding for stand-alone “green” projects • $15 million available for Fall 2010 Application Process • U.S. EPA recognized New York’s CWSRF with the 2009 “Pisces Award for Performance and Innovation in the SRF” for the GIGP

17. 2010 IUP Principal ForgivenessFor Disadvantaged Communities • Category A - Population up to 3,500 • $7.4 million • Category B - Population between 3,500 to 1,000,000 • $29.8 million • Category C - New York City • $30 million • Category D - Hardship Communities • $30 million

18. Co-funding Opportunities • USDA Rural Development loan/grant program • New York State DEC Water Quality Improvement Program • Office of Community Renewal CDBG Program • NYSERDA Water/Wastewater programs

19. EFC Client Services • Application Development – Intended Use Plan • Legal, Engineering, Financial Expertise • Individual Project Consultations • On-site Visits • Field Offices • Public Outreach and Education • Co-Funding • Post Closing Assistance

20. Things to Come: Scoring System Initiative Feedback will be Essential to Success of CWSRF/DWSRF • Asset Management • Smart Growth • Fair (Not Full) Cost Pricing • “Green” Priorities/Energy Efficiency • Federal/State/Local Partnership

21. Green Innovation Grant Program $15 million Available for “Green” Infrastructure Projects • Water Efficiency: • Reuse, Conserve or Improve Water Efficiency • Energy Efficiency: • Reduce Energy Consumption or Produce Clean Energy • Green Wet Weather Infrastructure: • Maintain, Restore, or Mimic Natural Systems to Infiltrate, Evaporate or Recycle Stormwater • Environmental Innovation: • Manage Water Resources to Prevent or Remove Pollution in an Economically Sustainable Way

22. Green Innovation Grant Program (GIGP) • Begun under the American Recovery and Reinvestment Act of 2009 • Post Program Analysis by Syracuse University Environmental Finance Center • Analysis of program data and survey of applicants

23. GIGP: Who Can Apply? Any corporation which is organized and existing under the laws of the State of New York which is empowered to develop a project • Municipality • School district* • Soil and water conservation district* • Not-for-profit • Partnership • Association * Only eligible for GIGP Grants under existing State laws.

24. What Kind ofProjects? Point Source - Clean Water Act Section 212 Projects I Secondary Treatment II Advanced Treatment III-A Infiltration/Inflow III-B Sewer System Rehabilitation IV-A New Collector Sewers IV-B New Interceptors V CSO Correction VI Storm Sewers (In Phase I and Phase II MS4 areas) X Recycled Water Distribution Ex. Wastewater Treatment Plants

25. Non Point Source Projects - Clean Water Act Section 319 VII-A Agricultural Cropland VII-B Agricultural Animals VII-C Silviculture VII-D Urban, excluding decentralized systems, Green Infrastructure VII-E Ground Water, unknown source VII-F Marinas VII-G Resource Extraction VII-H Brownfields VII-I Storage Tanks VII-J Sanitary Landfills VII-K Hydromodification VII-L Individual/Decentralized Systems Ex. Regional Digester/Bioenergy Facility Ex. Porous Pavement

26. Estuary Assistance – CWA Section 320 Projects Implementation of US-EPA Approved Estuary Conservation and Management Plans for: • New York-New Jersey Harbor • Peconic Bay • Long Island Sound Estuaries

27. Westcott Reservoir • Awarded $753,543 in GIGP for demonstration project • Microturbine System • 3rd largest water tanks in the world • Expected to generate 438,000 kWh of electricity annually • Solar Photovoltaic System • Expected to produce 56,000kWh of power annually • The energy generated from the new systems will allow the facility to operate almost entirely “off-the-grid”

28. GIGP 2010 Objectives • Protects, improves or enhances water quality, aquatic or riparian habitat • Spur Innovation • Build Green Capacity • Facilitate Technology Transfer • Fund Strategic and Highly Visible Demonstration Projects • Foster Local Program Development • Lead to Larger Scale Implementation Efforts • Encourage Outreach and Education • Incorporate Smart Growth / Livability Principles

29. Philadelphia Water Department and WRT

30. Porous Pavement Lindenhurst Library - Suffolk County

31. Seagrit Planting Bed – NYC Green Streets NYC, NY

32. GIGP 2010 Grants Two types of Grants: • Construction Grants • Grant for up to 90% of construction costs, not exceeding $750,000 • Require complete Engineering Report (treatment plant projects) or concept plan and feasibility report for green infrastructure / stormwater projects at time of application. • Design Grants • Grant for up to 50% of design costs, not exceeding $50,000 per project • Require complete Feasibility Study (treatment plants) or Concept Plan (green infrastructure / stormwater projects) at time of application.

33. GIGP 2010 Eligibility • Must be eligible under SRF and US EPA SRF 2010 Green Project Reserve requirements. • Meet all applicable NYS design standards. • Demonstrate the capacity to own, operate, and maintain the proposed project. • Meet Davis Bacon Act requirements • Prevailing wage rates paid • Meet Federal DBE Program requirements • Ensure nondiscriminatory actions in the award and administration of contracts • Must be under committed/contract with EFC by September 2011

34. Application Tips • Focus on one innovative demonstration project • Submit a complete and concise application • Project selection based on GIGP 2010 goals and objectives Green Roof – Rockefeller Center

35. Email Receive immediate notice of new and updated funding opportunities, programs, and initiatives Stay Informed www.nysefc.org SRF Newsletter • Sign up to receive EFC’s quarterly newsletter Webcasts • Join EFC live to discuss important issues

36. EFC President and CEO Matthew J. Driscoll Driscoll@nysefc.org NYS Environmental Facilities Corporation 625 Broadway Albany, NY 12207 1.800.882.9721 www.nysefc.org Financing for a Sustainable Future