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GOVERNANCE AND FINANCIAL OPTIONS REPORT

BRANDYWINE-CHRISTINA HEALTHY WATER FUND

 

 

 

 

 Prepared by:  University of Delaware Water Resources Center Newark, Del. 19716  Written by: Gerald J. Kauffman  Contributions from: Andrew Homsey Jordan Martin Martha Narvaez   

 

 

   

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TableofContents PageListofTables 1ListofFigures 2ListofAttachments 2Background 3StudyObjectives 4Benefit‐CostAnalysis 4OwnershipandInstitutionalCriteria 6WaterFundOwnershipOptions 6NonProfitCorporation(LLC) 6NonProfitWatershedOrganization 7WaterUtilityOwnership 8PublicCorporation 8WaterFundBoard 9FinancingOptions 9Attachments 13

ListofTables

Table Page1. EconomicvalueofagriculturaloperationsinChesterCounty,Pennsylvania 3 2. BenefitsofimprovedwaterqualityintheBrandywineChristinawatershed 43.WatertreatmentsavingsduetoreducedsedimentintheBrandywineChristina 54. AnnualcoststoreducenitrogenandsedimentintheBrandywineChristina 55. Benefits/costsofimprovedwaterqualityintheBrandywineChristinawatershed 56.Waterfundownershipoptions 67.Nonprofitcorporation(LLC)considerations 78. Nonprofitwatershedorganizationconsiderations 89.Waterutilityownershipconsiderations 810.Publiccorporationconsiderations 911.Waterfundboardmembers 912.Waterutilityservicesbyprovider 1013.100%ofneed‐costallocationscenario‐Brandywine‐Christinawatershed 1014.10%ofneed‐costallocationscenario‐Brandywine‐Christinawatershed 1115.CostallocationscenariosforBrandywine‐ChristinaHealthyWatershedFund 1116.Costallocations($/1000gal)Brandywine‐Christinawatershed 1117.Costallocations($percustomer)Brandywine‐Christinawatershed 12

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ListofFigures

Figure Page1.Investmentinwatershedservices 3

ListofAttachmentsAttachment Page1.BrandywineChristinaWatershedMapping 132.StreamTurbidityData 143.ImpairedStreamsMap 154.TMDLMaps 165.SRATMaps 176.USDAConservationPayments 187.TMDLCosttoTargetMaps 198.WhiteClayCreekMaps 219.CosttoTreatWater 2210.CostofImplementedAgriculturalBMPs 2311.CoststoAchieveWaterQualityGoals 2712.SummaryofReductionUnitCosts 2813.TotalAnnualCosts 3014.SummaryofTargetCostReductions 3215.NewarkandWilmingtonFY17Budgets 3416. Term Sheet - Brandywine Christina Healthy Water Fund 36 17. UMD EFC Recommendations for the BCHWF 40 18.InvestmentsintheDelawareRiverWatershed 4219.SummaryofWaterFundCaseStudies 4620.ChesterCountyConservationDistrict 4721.RioGrandeWaterFund 5322.SchuylkillRiverRestorationFund 5723.AnOunceofPrevention—ProtectingNaturalSystems 7924.TruckeeMeadowsWaterFund 8025.PinchotFoundationWaterRatePayingRegulatoryStructures 8826.UpperNeuseCleanWaterInitiativeConservationPlan 8927.DelawarePublicServiceCommissionDraftLegislation 91 28.AlliancesforGreenInfrastructure 95          

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GovernanceandFinancialOptionsReportBrandywineChristinaHealthyWatershedFund

DraftSeptember2017BackgroundTheNatureConservancyofDelaware(TNC)andUniversityofDelawareWaterResourcesCenter(UD)aresupportedbytheWilliamPennFoundation(WPF)toexplorethefeasibilityofdevelopingaBrandywineChristinaHealthyWatershedFund(BCHWF).TheobjectiveofthewaterfundistoinvestinrestorationoftheBrandywineChristinawatershedclustertomeetthefishable,swimmable,andpotablewaterqualitygoalsoftheFederalCleanWaterActandSafeDrinkingWaterActby2027.Thestreamsinthewatershed(Brandywine,RedClay,WhiteClay,andChristinacreeks)areimpairedduetohighloadsofnitrogen,sediment,andpathogens(bacteria,cryptosporidium).WaterpurveyorsinthewatershedinDelawareandPennsylvaniaareconcernedaboutthedifficultyandcostsoftreatinghighlevelsofsedimentandnitrogeninthesourcewaterstreamswithassociatedconcernsabouthealthrisksduetopathogenoutbreaks.Thepremiseofthewaterfundisthatthedownstreambeneficiariesinvestupstreaminwatershedservicestoreducepollutantloads(Figure1).TheupstreamwatershedinPennsylvaniahassignificanteconomicvalueintheagriculturesector(Table1).

Figure1.Investmentinwatershedservices

Table1.EconomicvalueofagriculturaloperationsinChesterCounty,Pennsylvania.

(ChesterCountyAgriculturalDevelopmentCouncil,USDANationalAgriculturalStatisticsService.

Industry EconomicValue Rank

Dairyfarming $73million 6thinPennsylvania

Horsefarming $5.2million 22ndinUnitedStates

Nursery,greenhouse,floriculture $79million 1stinUnitedStates

Rowcrops $8.7million 7thinPennsylvania

Mushroomfarming $412million 1stinUnitedStates

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StudyObjectivesTheobjectivesofthisfinancialanalysisoftheBrandywineChristinaHealthyWaterFundareto: Identifybenefits/costsofwatershedrestorationbasedtechnicalanalysisand

modeling. Analyzewaterfundoptionsbasedongovernance,organizational,andownership

issues. Conductimpactanalysisonend‐userwaterrates/chargesbywaterfundcontributors.Benefit‐CostAnalysisThebenefitsofimprovedwaterqualityduetorestorationoftheBrandywineChristinawatershedtomeetfishable,swimmable,andpotablegoalsrangefromalowboundof$5.9milliontoahighboundof$20.2millionannuallyinthewatersupply,forest,agriculture,navigation,andnonusewillingnesstopayfromcleanwatersectors(Table2).

Table2.BenefitsofimprovedwaterqualityintheBrandywineChristinawatershed

WaterpurveyorsinDelawareandPennsylvaniastandtosave$2.5million/yearinwatertreatmentcoststhroughreducedsedimentloadsfromaBrandywineChristinawatershedrestorationprogram(Table3)

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Table3.WatertreatmentsavingsduetoreducedsedimentintheBrandywineChristina

AtechnicalanalysisbasedontheUSGSHSPF,SPARROW,EPASWAT,MAPSHEDS,andSRATmodelsindicatethecoststoreducenitrogenandsedimentloadsintheBrandywineChristinawatershedrangefrom$4.4to$5.5millionperyearoverthenext10to15years(Table4).

Table4.AnnualcoststoreducenitrogenandsedimentintheBrandywineChristina

1.Capitalcostfinanced@3%interestrateand10‐15yearterm.2.GrossannualP+Ipayment.3Includeslandconservationcosts.

Theannualbenefits($5.9‐$20.2million)ofwatershedrestorationexceedthecosts($4.4‐$5.5million),thereforenetbenefits(B‐C)rangefrom$1.5‐$14.7million/year(Table5.).Table5.Benefits/costsofimprovedwaterqualityintheBrandywineChristinawatershed

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OwnershipandInstitutionalCriteriaThefeasibilityofwaterfundsisbasedonownershipandinstitutionalcriteriasuchas: Implementationofwatershedrestorationprojects

o Guaranteeofdependabledeliveryofprojects&serviceso Efficiencyandeconomicsinimplementingwatershedrestorationprojects

Allocationofcostsamongusers/beneficiarieso Equityofapportionmentofcosts&relatedserviceso Beneficiaries(waterpurveyors)thatmakefinancialobligation,obtaincapacity

rights Financingofimprovements

o Abilitytoobtaintax‐exemptfinancingo Abilitytoobtainguarantees(takeorpay)fromcustomerso Supportfromstates,county,andlocalgovernments

WaterFundOwnershipOptionsTNCandUDevaluatedthefeasibilityofthefollowingwaterfundoptionsbasedoninstitutional,governance,andeconomiccriteria(Table6): NonProfitCorporation(LLC) NonProfitWatershedOrganization(s) WaterUtilityOwnership(Consortium) PublicCorporation

Table6.WaterfundownershipoptionsWaterFundOption Institutional BoardGovernance Economics($/yr)

NonProfitCorporation(LLC)

Independentnonprofitentitywithnewstaff/offices

Watershedclustermembers/waterpurveyors

Administrativeneed:$250,000

NonProfitWatershedOrganization(s)

Hostedbyexistingnonprofitorganization

Watershedclustermembers/waterpurveyors

Annualadministrativeneed:$25,000 

WaterUtilityOwnership(Consortium)

Hostedbyexistingwaterpurveyor

Boardofconsortiumofwaterpurveyors

Annualadministrativeneed:$25,000 

PublicCorporationHostedbyexistingfirmsuchasbankortrust

Boardcomposedofwatershedclustermembers

Annualadministrativeneed:$100,000 

NonProfitCorporation(LLC)ThewaterfundwouldberunbyanautonomousnonprofitcorporationwithnewofficesandstaffataYear1administrativecostof$250,000.TheLLCoptionwasrecommendedbylegalcounselasitprovidesalegallyenforceableframeworktoadheretoinvestmentprotocols(Table7).TheindependentnonprofitLLCwouldseektoavoidconflictsofinterestwithexistingnonprofitswiththepotentialtobeacceptabletotheimplementingpartnersbecauseitisnotcontrolledbyanothernonprofit.Bycontractualagreement,theLLCcanbestaffedbynewpersonnelandhostedwithinanexistingnonprofit.TheLLC

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modelmayrequirenewlegislationorcharteragreements,creationofnewadministrativestructures,andoperationalcapabilitymayneedtoberampedup(hirenewstaffandleasenewoffices.

Table7.Nonprofitcorporation(LLC)considerations

NonProfitWatershedOrganizationThewaterfundwouldbehostedbytheadministrativeandbudgetstaffofanexistingnonprofitwatershedorganizationsuchastheBrandywineRedClayAllianceorPartnershipfortheDelawareEstuary.TheBRCAhasofferedtohostthewaterfundasanincubatorinthefirstfewyearsofoperation.ThePDEoperatesthesuccessfulSchuylkillActionNetworkintheadjacentwatershedtothenorththatawards$500,000inannualfunding.Nonprofitwatershedorganizationshavealongtermfamiliaritywiththewatershed,haveearnedtrustyetindependencefromcustomers(waterproviders),andmaintainexistinginhousebudgetandfinancingcapabilityasanincubatoroflongtermwaterfundsolution(Table8).

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Table8.Nonprofitwatershedorganizationconsiderations

WaterUtilityOwnershipThewaterfundwouldbehostedbytheadministrativeandbudgetstaffofoneoftheparticipatingwaterproviderseitherinsoleownershiporincollaborationwithotherwaterprovidersinthewatershedcluster(Table9).TheCityofWilmingtonhasservedinthiscapacityinthepastaspartofthewatersupplyforNewCastleCountywatersupplycommittee.Withexperiencedinhousebudgetstaff,thewaterprovidercouldquicklyinitiateanddevelopthewaterfundandreadilyprocessrevenueandexpendituretransactions.AprivateutilitywouldnotbetaxexemptandwaterutilitywithattentiontotheboundariesofitsserviceareaasrequiredbytheDelawarePublicServiceCommissionorPennsylvaniaBoardofPublicUtilitiesmaynotnecessarilyberegionalorindependentinitsperspective

Table9.Waterutilityownershipconsiderations

PublicCorporationThewaterfundwouldbemanagedbyapubliccorporationthatwouldbewillingtoincurresponsibilitieswithownershipandfinancing(Table10).

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Table10.Publiccorporationconsiderations

WaterFundBoardThewaterfundboardwouldbecomposedofoperatingmembersfromtheBrandywineChristinaWatershedClusterandwaterprovidersthatcontributetothewaterfund(Table11).

Table11.WaterfundboardmembersOperatingMembers WaterProviders

WilliamPennFoundationNatureConservancyofDelawareUDWaterResourcesCenterBrandywineConservancyBrandywineRedClayAllianceStroudWaterResearchCenterNaturalLandsTrust

CityofWilmingtonCityofNewarkSUEZWaterDEAQUAPAPAAmericanWaterDowningtownMUA

FinancingOptionsFinanceofthewaterfundwouldbeconductedinitiallybythebeneficiaries(waterproviders)inaccordancewiththefollowingcriteria: Apportioncontributionsbasedonwaterallocationsandwithdrawals(mgd)byeach

waterutilityineachwatershed. Estimateservicecostswhicharelikelytobeincurredtofinanceeachofthealternative

assetconfigurationunderconsideration Performsensitivityanalysisbasedoninterestratesandcapitalcosts CommentonalternativemodesoffinancingwhereappropriateWaterproviderswithdrawandtreat55MGDfromtheBrandywine,RedClay,WhiteClay,andChristinacreeksfordeliverytoover200,000customersor600,000peoplefromtheBrandywineChristinawatershed(Table12).

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Table12.Waterutilityservicesbyprovider

At100%ofneed($5.5million),thecostallocationanalysisindicatesthatwaterrateswouldneedtobeaccessedat$0.146/1000galintheBrandywinewatershedto$0.388/1000galintheRedClay/WhiteClaywatershedor$8.77to$23.29/customer/yearbasedon60,000gallonspercustomerperyear.(Table13).At10%ofneed($550,000),waterratesneededwouldbe$0.015/1000galto$0.039/1000galor$0.88to$2.30/customer/year(Table14).Tables15,16,and17summarizethewaterratecostallocationsneededtofinancethewaterfund.

Table13.100%ofneed‐costallocationscenario‐Brandywine‐Christinawatershed

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Table14.10%ofneed‐costallocationscenario‐Brandywine‐Christinawatershed

Table15.CostallocationscenariosfortheBrandywine‐ChristinaHealthyWatershedFund

Table16.Costallocations($/1000gal)Brandywine‐Christinawatershed

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Table17.Costallocations($percustomer)Brandywine‐Christinawatershed

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Attachment1.BrandywineChristinaWatershedMapping

 

 

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Attachment2.StreamTurbidityData

 

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Attachment3.ImpairedStreamsMap

 

 

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Attachment4.TMDLMaps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Attachment5.SRATMaps

 

 

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Attachment6.USDAConservationPayments 

 

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Attachment7.TMDLCosttoTargetMaps

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Attachment8.WhiteClayCreekMaps

 

 

 

 

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Attachment9.CosttoTreatWater

 

 

 

 

 

 

 

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Attachment10.CostofImplementedAgriculturalBMPs

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Attachment11.CoststoAchieveWaterQualityGoals

 

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Attachment12.SummaryofReductionUnitCosts

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Attachment13.TotalAnnualCosts

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Attachment14.SummaryofTargetCostReductions

 

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Attachment15.NewarkandWilmingtonFY17Budgets

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Attachment 16. Term Sheet - Brandywine Christina Healthy Water Fund

The following is a summary of certain proposed terms to be included in a limited company agreement (the "Agreement") for a newly formed Delaware limited liability companythat will create a water fund for the Brandywine-Christina watershed. This term sheet is fordiscussion purposes only and the actual terms will be set forth in a definitive Agreement. Nothingcontained in this term sheet is intended to create any obligation on the part of any person or entity or influence the interpretation of the terms of the Agreement. [A1] Company: Entity Type A newly formed Delaware limited liability company ("Company").

Purpose: The Company will be formed for the purpose of, and the n a t u r e of the business to be conducted and promoted by the Company will be, maintaining and improving the health of the Brandywine-Christina watershed for the benefit of people who rely on it and plants and animals who live in the watershed and engaging in such other lawful acts or activities as may be determined by the board of managers of the Company (the "Board") to be necessary, advisable, convenient or incidental thereto.

Management The Company will be managed by the Board in the manner

described below.

Term: The term of the Company will be perpetual and the C o m p a n y will not dissolve without [the consent 66 2/3% of the members of the Company.]

Investors:

Initial Investors Initial investors (i) will be admitted as members of the Company,

(ii) will receive a limited liability company interest in the Company, and (iii) will make an initial capital contribution to the Company.

The Nature Conservancy of Delaware ("TNC of Delaware") will be admitted as a member of the Company at the time of the formation of the Company but will not receive a limited

interest in, or make a capital contribution to, the Company. Additional Investors Additional investors may be admitted as members of the Company,

receive a limited liability company interest in the Company and/or make a capital contribution to the Company upon the approval of [the Board.

Additional Contributions Additional capital contributions to the Company by existing

members of the Company may be made upon the consent of the

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Board and the member desiring to make an additional capital contribution to the Company. No member will be required to make any capital contribution to the Company without its consent.

Percentage Interests Each member of the Company will own a percentage of the limited

liability company interests (the "Percentage Interests") in the Company equal to a fraction, the numerator of which is the aggregate capital contributions made by such member to the Company and the denominator of which is the total capital contributions made by all members to the Company.

[Taxation The Company will elect to be taxed as a partnership for federal income tax purposes.]

Profits and Losses The Company's profits and losses will be allocated to the members

of the Company in accordance with their Percentage Interests. [A4 Distributions Distributions may be made to the members of the Company in

accordance with their Percentage Interests at the times and in the amounts determined by the Board. [It is not expected that any distributions will be made to the members of the Company.]

Assignments The limited liability company interests in the Company will not be

assignable by a member of the Company without approval of [the Board.]

Resignation A member of the Company may resign from the Company. A

member that resigns from the Company would not be entitled to any payment or distribution from the Company and its limited liability company interest in the Company would be automatically cancelled.

Management:

Board Composition Each member of the Company will have the right to appoint one

individual as a manager to the Board (and to remove and replace such individual as a manager). [A5] [The Board will have the authority to appoint (and remove and replace) one or more additional individuals as managers.]

Board Decision-Making the Board will decide upon investments for the Company in

accordance with a science-based prioritization protocol (the

"Protocol"). The decision of a majority of the managers on the Board made in accordance with the Protocol (as determined by

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the manager appointed by TNC of Delaware) will constitute the decision of the Board.

Enforcement of Protocol [The consent of the manager appointed to the Board by TNC of

Delaware will be required to give effect to any decision that is not made in accordance with the [Protocol]]. TNC of Delaware will have the authority to enforce adherence to the Protocol in court. [TNC DE will have the right to remove any manager for

Cause1.]

Compensation of Managers Unless otherwise approved by the Board, the Company will not pay

any compensation to any manager for serving the Company as a manager or reimburse any manager for his or her expenses incurred in attending meetings of the Board.

Appointment of Officers the Board may appoint one or more individuals as officers of the

Company.

Indemnification Each manager will be entitled to indemnification (and advancement

of expenses) from the Company for any loss incurred by such manager by reason of any act or omission performed or omitted by such manager by reason of the Agreement, except that no such manager will be entitled to be indemnified in respect of any loss incurred by reason of its intentional misconduct or fraud with respect to such acts or omissions.

Exculpation No manager will be liable to the Company or any other person or

entity bound by the Agreement for any loss incurred by reason of any act or omission of such manager, except that a manager shall be liable for any loss incurred by reason of such manager's intentional misconduct or fraud.

Miscellaneous:

Governing Law, The Agreement will be governed by Delaware law.

Jurisdiction Each party to the Agreement will agree to resolve any disputes [in arbitration]/[in the courts of the State of Delaware].

Fiduciary Duties Fiduciary duties of the members and managers of the Company

under Delaware law to the Company, the members and any other person or entity that is a party to, or otherwise bound by, the

Prioritization Protocol  [Further explanation of the Protocol to be added.] 

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Agreement will be eliminated to the fullest extent permitted by law.

Limited Liability Except as otherwise required by the Delaware Limited Liability

Company Act, the debts, obligations and liabilities of the Company, whether arising in contract, tort or otherwise, will be solely the debts, obligations and liabilities of the Company, and no member, manager or officer will be obligated personally for any such debt, obligation or liability of the Company solely by reason of being a member, manager or officer of the Company.

Amendments Amendments to the Agreement will require the written approval of each member of the Company.

Third Party Beneficiaries No person/entity will be a third party beneficiary of the Agreement.

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Attachment 17. UMD EFC Recommendations for the BCHWF

INTRODUCTION TheWilliamPennFoundationaskedtheEnvironmentalFinanceCenter(EFC)attheUniversityofMarylandtoproviderecommendationsonthedesignandimplementationoftheBrandywine‐ChristinaHealthyWaterFund(BCHWForthe“Fund”).

1. EnvironmentalObjectivesTheEFCbelievesawaterfundconceptcouldworkintheBrandywine‐ChristinaWatershed.But,the“how”hasnotbeenadequatelyaddressedandwasthesubjectofdiscussionamongtheInnovativeFinancingPanel.TheEFCstronglyrecommendsthattheBCHWF,indevelopingitsbusinessplan,describesthetypesofbusinessorinvestmentactivitiesthatitanticipateswillgeneratewaterqualityoutcomesthatwillmotivateinvestorstocapitalizetheFundandthatwillcomplementorcatalyzeneworscaled‐uprestorationactivity.ThesepointsspeaktohowtheFundwilldelivergreatervalueoroutcomesthanwhatisalreadyhappening.TheFundshouldarticulatethetypesofinvestmentorenterpriseactivitiesthatwillenablepotential“downstream”funders,suchasDEwaterpurveyors,toinvestinBCHWFrestorationworkinPennsylvaniaportionsofthewatershed.Discussionoftheseactivitiesneedstogobeyondageneralstrategyoftargetingagriculturalpropertiestodiscussthescaleandapproachesforagriculturalrestoration,alongwiththestructureandprocessesforhowcapitalisdeployed.2. MarketStageThefoundationshouldscaleitsinvestmentintheFundbasedonthelevelofcommitmentBCHWFsecuresfromfundersandimplementationpartners.TheFundshouldprovidearoadmaptofullimplementation.Indiscussingthisgrowth,thebusinessplanshouldinclude:(1)anestimateoftheanticipatedtimeandcoststhatscalefromdeliveringtwotothreesmallpilotstofullimplementation;(2)howdifferentlevelsofcapitalimpactthescaleofFundactivity;and,(3)clearmilestonesandperformancemetricstotriggerprogressivepaymentsfromtheFoundationastheFundgrows.3. Barrier(s)TheBCHWFshouldidentifybarriers,discusshowWilliamPenn’spreviousinvestmentshavehelpedestablishthegroundworkforovercomingthosebarriers,andidentifyhowadditionalfundingwillbeusedtoaddressanyremainingbarrierstoimplementation.TheEFCrecommendslinkingthisdiscussionofbarriersandchallengestothebusinessplan’sfinancialforecasts.Thisconnectionwillincreasetransparencyandhelpsrelatehowovercomingbarriersimpactcriticalassumptionsin:(1)theFund’sscaleandbreadthofactivities;and(2)capitalrequirements(egg,growthpathwithrestorationimplementation,anticipatedcontributionsfrompurveyorsorothersources,abilitytoleveragethefoundation’sinvestment).

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4. RoleofCapitalAstheprojectdevelopsitsgovernancestructureandbusinessplan,itshouldconsiderthedifferenttypesofcapitalthatcouldsupportitsoperationalization.ThebusinessplanwillbemorerobustifitcansetouthowmuchcapitalisneededtooperationalizetheFund,theanticipatedsourcesofthiscapitalandtheirdistinctroles.Atminimum,thebusinessplanshouldaddresstheroleofWilliamPennFoundationfundingandpurveyorcontributions,articulatinghowmuchisneededfromthesesources,howthefundingwillbeusedandhowthecapitalizationimpactstheFund’sfinancialsustainability.ItshouldalsoexplorehowinvestmentfrompurveyorsorotherstakeholderscouldbeleveragedthroughtheFund’sgovernanceandlegalstructure(egg,boardcomposition,not‐for‐profitstatus,etc.).5. Applicabilityprovideamodelforhowone‐timeortime‐limitedinjectionsofcapitalbyafoundationcancatalyzeself‐sustainingwatershedrestorationandprotectionactivities.6. Self‐SustainingWiththeexpectationthattheBCHWFisamechanismthatleveragesphilanthropiccapitalwithprivatecapital,thebusinessplanneedstoshowhowtheFundwillbecomefinanciallyself‐sustaining.Thebusinessplanshouldhavethefollowingcomponents:(1)clearidentificationofthesourcesandamountofrequiredstart‐upcapital;(2)projectedrevenuestreamassociatedwiththetypesandscaleofrestorationactivityundertakenbytheFund;(3)staffingneeds;and(4)projectedcostsforstaffing,operationsandoverhead.Importantly,thebusinessplanshouldalsoincludean“exitstrategy”forthefoundation.TheexitstrategydefinesthetimingandconditionsunderwhichtheFundhassatisfactorilyansweredtheproofofconceptquestion(i.e.,thattheFundconceptcanorcannotworkintheBrandywine‐ChristinaBasin).Thebusinessplanshouldalsoincludeperformancemetricsagainstwhichitsprogresstowardsfinancialsustainabilitycanbeevaluated(bythefoundationandotherinvestors).CONCLUSION TheWilliamPennFoundationinvestedsubstantialresourcesintheFund’sconceptualdevelopment.ItneedstodetermineiftheFund: hasastrongenoughbusinessmodeltobecomefinanciallyself‐sustaining; shouldbetreatedasalearninglaboratorythatcreatesknowledgetosupporttheimplementationofwaterfundsinotherwatersheds;or isnotlikelytosucceedinthewatershed.TheEFCrecommendsthattheFund’sbusinessplanbethebasisforthefoundation’sdecision.Awell‐developedbusinessplanshould: clearlyexplainhowtheFundwillbemanagedthroughitsthreecoreprocessesofcapitalization,deploymentandadministration;and, demonstratehowtheFundwillmeetitsgoalofacceleratingwatershedhealthbyincentivizingandlayeringinvestmentsfrommultiplebeneficiaries.Tohelpguidetheelementsofthebusinessplan,theEFCappliedadiagnosticframeworkwithfivespecificrecommendationsfortheBCHWFteamasitdevelopsitsbusinessplan.Theyare:1. articulatethetypesofinvestmentorenterpriseactivitiesthatwillenablepotential“downstream”funders,suchasDEwaterpurveyors,toinvestinBCHWFrestorationworkinPennsylvaniaportionsofthewatershed;2. includeapilotstageinthebusinessplanthatprovides“proofofconcept”totriggerfundingsothattheFundcanadvancetothenextmarketstage(i.e.,fullimplementation);3. incorporatediscussionofbarriersthatimpacttheFund’sfinancialforecastsandgrowth;

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Attachment18.InvestmentsintheDelawareRiverWatershed

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Attachment19.SummaryofWaterFundCaseStudies

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Attachment20.ChesterCountyConservationDistrict

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Attachment21.RioGrandeWaterFundComprehensivePlanforWildfireandWaterSourceProtectionSeptember2014,UpdatedNovember2014

Vision,GoalsandObjectivesTheRioGrandeWaterFundisestablishedtoachievethevisionofhealthyforestsandwatershedsthatprovideareliablesupplyofhigh‐qualityRioGrandewaterandotherbenefitsforNewMexico.Thegoalofthewaterfundistoprotectstorage,deliveryandqualityofRioGrandewaterthroughlandscape‐scaleforestrestorationtreatmentsintributaryforestedwatersheds,includingtheheadwatersoftheSanJuanChamaProject.Theobjectivesofthewaterfundareto: Restorewatershedfunctionsbyimprovingthehealthofstreamsandriparianareas, Mitigatethedownstreameffectsoffloodinganddebrisflowsafterwildfires, Reduceforestfuelsinareasidentifiedashighriskforwildfireanddebrisflow, Supportforestproductsindustries’useofwoodby‐productsfromforestfuelreduction, Maintainthereducedwildfirehazardintreatedareas,and Securesustainablefinancingfromwaterusers,government,investorsanddonors Facilitatepaymentstoupstreamlandmanagers.TheNatureConservancyconvenedanadvisoryboardinApril2013toguidetheformationoftheRioGrandeWaterFund.Initially,23organizationsandagenciesparticipatedandoverthecourseofayeartheboardgrewtomorethan45NewMexicoentities.Eachadvisoryboardmemberrepresentsauniqueconstituencyorstakeholderwhocaresaboutwatersecurityandwantstohelpimplementlarge‐scaleforestandwatershedrestoration(AppendixA).Theadvisoryboardhastwoimportantroles:

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Involvelocal,state,federal,andtribalgovernmentandwatermanagers,thebusinesssector,foresters,conservationorganizationsandotherstakeholdersinthecreationofawaterfundthatconnectstheRioGrande,RioChamaandtributariestosurroundingforestedwatersheds. Providedirectionforthecreationofawaterfundincludingguidanceaboutstudiesneeded,creationofacomprehensivewatersecurityplanthatwillcomplementandinformotherplans,anddeterminationofthewaterfundstructure,governanceandfundraising.Theadvisoryboardrepresentsdiverseinterests,withmanymeetingforthefirsttimeatthecomprehensiveplanningprocess.

FundingPlanAcoordinated,leveraged,multi‐partnereffortisneededtoscale‐uprestorationten‐fold.TheexistingactionsofthemanyagenciesandorganizationsintheRioGrandeWaterFundprovideaperfectfoundationforcoordinatedactioninapublic‐privatepartnership.Separately,theworkofthekeyagenciesandorganizationshasbeenunabletoachievetheeconomyofscaleneededtorestorelargeareastoprotectwatersources.ThisComprehensivePlanproposesanintegratedsolutionthatleveragesexistingprogramsandinvestmentstoachievealargeroutcome.TheRioGrandeWaterFundwillcollectprivateinvestmentsfromindividuals,businesses,corporationsandfoundations.Thefundingwillbeavailableforthinning,controlledburns,streamrestoration,post‐firewatershedrestoration,planning,educationandoutreach,andactivitiesthatcontributetothemonitoringprogram(seeAppendixD).TheNatureConservancywilladministerprivatedonationstotheRioGrandeWaterFund,drawinguponthetrackrecordandlessonslearnedfrom12existingwaterfundsinLatinAmerica.[I]Anexecutivecommitteeofdiversestakeholdersandinvestorswilldeterminewhichprojectsinthefocalareasreceivefunding.Writtenagreements,suchasMemorandumofUnderstanding(MOU),maybeneededtoorganizethepublic‐privatepartnershipandtospecifythenecessarycommitmentsandfiscalagencytocoordinateandleveragefundingresources(Figure11).Keyelementsinclude: CoordinationwiththeForestService,NaturalResourceConservationService,BureauofLandManagementandotherfederallandmanagementagenciessothatappropriationsforhazardousfuelsreduction(roughly$6millionofFY13dollarsspentintheRioGrandeWaterFundarea)aretargetedatthehigh‐priorityfocalareas. Waterfundforwildfireandwatersourceprotectionwithrevenuefromvoluntarycontributionsbywaterusers,businesses,investorsanddonors.Theseprivatefundswillbecriticaltomatchandleveragegovernmentexpendituresonforestandwatershedrestorationinthefocalareas.(seeAppendixDforlistofeligibleactivities) Long‐termstatefundingplanforforestandwatershedrestorationtorestorethefocalareas(aswellasotherhigh‐prioritytreatmentareasinNewMexico)asdefinedbytheNewMexicoLegislatureinSenateMemorial95andHouseMemorial80. Voluntarycontributionsofrevenuefromlocalgovernments—cities,counties,tribes,municipalwaterutilities,irrigationdistricts,soilandwaterconservationdistricts,landgrantsandacquisassociations—toeithertheRioGrandeWaterFundorthelong‐termstatefundingvehicledescribedabove. Investmentinenterprisedevelopment,workforcecapacitybuildingandbusinessincentivestousewoodandbiomass,andtore‐establishasignificantwoodindustryandrestorationeconomyintheRioGrandeWaterFundarea.OutreachandEducationalPlan

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AworkinggroupofeducationprofessionalsdevelopedthevisionforoutreachandeducationaspartoftheRioGrandeWaterFund.TheworkinggroupincludeseducatorsfromAlbuquerqueBernalilloCountyWaterUtilityAuthority,AlbuquerquePublicSchools,BosqueEcosystemManagementProgram,NewMexicoMuseumofNaturalHistoryandScience,NewMexicoStateLandOffice,RioRanchoPublicSchools,RiverSource,SandiaMountainNaturalHistoryCenter,SantaFeWatershedAssociationandVallesCalderaNationalPreserve.Theworkinggroupvisionistoeducateandengagethecommunityofwateruserssothattheybecomeactiveincreatingasecurewaterfuture.Theworkinggroupgoalistopromoteandsupporteducationalprogramsthatengagepeopleinprotectingstorage,deliveryandqualityofRioGrandewaterwithafocusonforesthealth,riverecologyandasustainablewatersupply.MarketingandCommunicationsTheNatureConservancywillcreateandimplementacomprehensivemarketingandcommunicationsplanfortheRioGrandeWaterFundthatwillresultinincreasedvisibilityoftheproject.Theplanwillinitiallyextendovera12‐monthperiodwiththeaimofincreasingfundraisingpotentialandbuildingsupportfortheRioGrandeWaterFundwithmultipleaudiences.Thegoalistotellthewaterfundstoryby: Raisingawarenessamongwaterusersaboutwheretheirwatercomesfrom;and SharingtheexperiencesofthemanyNewMexicanswhowillbenefitfromthecreationofthefund. Tacticsandstrategiesinclude:creatingtalkingpointsandamessageblueprintadvocatingforthewaterfund;highlightingthewaterfundinprintpublicationsthataredisseminatedthroughoutthestate;creatingdigitalassetsincludingwebfeatures,onlineslideshows,socialmediapostingsandvideo;pitchingthewaterfundstorytolocal,regionalandnationalmediaoutlets;andprovidingopportunitiesforadvisoryboardmembersandpartnerstousethesematerialsintheircommunicationsandmarketingefforts.TheRioGrandeWaterFundwebsitewillprovidea“clearinghouse”foreducationoutreach.MonitoringPlanforRioGrandeWaterFundJobsandEconomicDevelopmentToassesstheprogressindevelopingNewMexico’sforestindustryandjobcreation,theRioGrandeWaterFundproposesthefollowingindicatorsbereportedonanannualbasis:numberoffulltime,parttimeandseasonaljobscreated;numberofbusinessescreatedthatoperateinNewMexico,includingthosereceivingwoodsupplyfromawaterfundproject;amountofwoodproductusedbylocalcommunitiesandbusinesses;valueofleveragedstateandlocalresourcescommittedtoforest/watershedrestoration;andvalueofprivateandpublicinvestmentinforestindustryinfrastructure.PeriodicsamplingandpollingcanhelpindicateeffectsonNewMexico’seconomy.ExistingData:Unemploymentdatabycounty,asreportedmonthlybytheU.S.BureauofLaborStatistics,maynotadequatelyreflecttheimpactoftheRioGrandeWaterFundonNewMexico’sforestindustry.RioGrandeWaterFundFinancingSustainablefundingisnecessarytoensurethewaterfundmeetsitsgoalsandobjectiveswithinthetimeframeagreeduponbystakeholders.Whilesomeoftheworkmaybepaidforthroughgrantsanddonations,muchoflong‐termworkcouldbepaidforwithreoccurringfundingfromthestatelegislature,stateandfederalagencies,anddownstreamwateruserssuchasmunicipalities/waterutilities,agriculturaldistrictsandindustry.Themetricsforevaluatingfundingwillconsidertwotimescales:1)short‐termfunding(0‐20years)tofinancetreatmentofhigh‐priorityforested

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watersheds;and2)long‐termfunding(beyond20years)tofinancemaintenanceoftreatedareas.Forbothtimescales,themeasureiswhethersufficientfundingissecuredtoacceleraterestoration.TheRioGrandeWaterFundwillcontinuouslytrackandprovidequarterlyreportsonfundsraisedaswellasthenumberofparticipatingmunicipalities,waterutilities,watercustomersandwaterfunddonors.ExistingData:Federalandstateagenciescanprovidedataonavailablefundstobeusedforforestandwatershedtreatments.Municipalwaterutilitiescanalsoprovidedataonfundsusedforrestoration.OutreachandEducationForyoutheducation,themeasuresofprogresswillinclude:numberandpercentageofstudentsreachedinschoolprograms;numberandpercentageofschoolswithinwatershedareaparticipatinginprograms;numberandpercentageofyouthparticipatinginsummerandafterschoolprograms;anddemonstratedunderstandingofcoreforesthealthconcepts.Metricsforadultoutreachandeducationprogramswillinclude:dollarsfromindividualdonationstotheRioGrandeWaterFund;numberofpeoplereachedthroughmarketingandoutreach;numberofeventssponsoredandthenumberofattendees;numberofparentsandteachersinvolvedinstudenteducationprograms;anddigitalmediameasures,suchaswebsitevisitsandFacebooklikes/shares.ExistingData:Schoolsystemsandenvironmentaleducationprovidersarealreadycollectingandcompilingdataabouttheprogramstheycurrentlyoffertoyouthandadults.Aspartofitsmonitoringplan,TheRioGrandeWaterFundwillassesschangesinwildfirebehaviorrelativetountreatedareas.TheRioGrandeWaterFundwillincludeamonitoringprogramtotracktheenvironmentalandeconomiceffectsofrestorationactivities,ensurethatinvestmentsareachievingtheiranticipatedimpacts,andenablecorrectionstomanagementstrategies.EconomicConsequencesandBenefitstoNewMexicoThecostofthinningoneacreofdenseforestis$700inmostpartsoftheRioGrandeWaterFundarea.Multiply$700by30,000acresofponderosapineandmixedconiferforeststreatedinthewaterfundareaeveryyear,andthetotalpricetagcouldreach$420millionover20years.Toputthislargeinvestmentinthe“naturalinfrastructure”offorestedwatershedsintocontext,Albuquerquerecentlyinvested$450millioninawatertreatmentplant.Thevalueofinvestinginforestrestorationcanbeillustratedbythefullcostofasinglewildfire,suchasthe2011LasConcha’sfirewhichhadapricetagestimatedat$246million,or$1,000to$2,150peracre—morethanhalfthecostfor20yearsofincreasedforestrestorationandsubstantiallymoreperacre.Additionally,arecentstudyestimatedthefour‐yearcost(2009‐2012)ofwildfiresinNewMexicoat$1.5billion,wellabovethe$420millioninvestmentproposedbythisplan.Toacceleratethepaceofthiswildfireandwatersourceprotectionproject,$21millionayearwillbeneededfromallsources—theRioGrandewaterfund,governmentrevenueandothersources.Currently,aboutone‐thirdofthisamount,or$6millionannually,isbeinginvestedinfederalhazardousfuelsreductioninthefocalareas.Clearly,itismorecost‐effectivetoinvestin“prevention”thantopayto“react”todamagingwildfires.Overtime,thecostofpreventionwilldeclineasalargerforestindustryisestablished.Atransitionperiodwillbeneeded,andtheRioGrandeWaterFundcanfilltheneedasdescribedinthisComprehensivePlan.

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Attachment22.SchuylkillRiverRestorationFund

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SCHUYLKILLRIVERRESTORATIONFUND

GrantGuidelinesfor2016Round

GoalsandPurposesofWatershedRestorationgrantsWatershedRestorationgrantsareavailabletonon‐profitorganizations,county&municipalgovernments,andotherrelatedgovernmentagenciestoundertakeimplementationprojectsthatwillimprovethequalityandquantityofwaterintheSchuylkillRiveranditstributaries.ThegoaloftheSchuylkillRiverRestorationProgramistofundprojectsintheSchuylkillRiverBasinthatareconsistentwithrestorationandwatermanagementgoalsfortheSchuylkillRiver.FundingPrioritiesImplementationProjects:GeneralFundingArea–FundingwillbegiventoprojectsthatmitigatewaterqualityandquantityproblemsintheSchuylkillRiverwatershedresultingfromacidminedrainage,agriculturalrunoff,andstormwaterissues.FocusArea1:PerkiomenCreek‐Atleast10%ofavailableExelonfundsmaybetargetedtowardimplementationprojectswithinthePerkiomenwatershed.EligibleprojectsinthePerkiomenCreekWatershedmayincludestormwatermanagement,agriculturalrunoffmitigation,andpathogenremediation.FocusArea2:PhiladelphiaWaterSupply‐AportionoftheavailablefundswillbeusedforprojectsthatareabletodemonstrateprotectionofthePhiladelphiadrinkingwatersupply. Eligibleprojectswilladdressstormwatermanagement,agriculturerunoffmitigationandpathogenremediationwithinthedrainageof,orinareasofsignificantinfluenceonthePhiladelphiadrinkingwaterintakesintheSchuylkillRiverandtheSchuylkillwatershedinPhiladelphia.LandTransactionAssistanceProjects:Targetedtoassistlandtrustsandconservationorganizationswiththetransactioncostsassociatedwiththepreservationoftargetedlandswithinprioritywatersheds.Aseparatesetofguidelineshasbeenestablishedforthisprogram.PleasecontacttheSchuylkillRiverHeritageAreaformoreinformationorvisithttp://schuylkillriver.org/Grant_Information.aspxforfullprogramguidelines.

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EvaluationProcessProjectswillbeevaluatedinatwo‐stepprocessthatincludes(1)aLetterofIntentfollowedby(2)aninvitationtosubmitafullapplicationiftheLetterofIntentisrecommendedbytheAdvisoryCommittee.(LetterofIntentisnotrequiredforLandTransactionprojects)

I. GENERALAPPLICATION

APPLICANTINFORMATIONOrganizationAddressCity State ZipPhone Fax WebMunicipality CountyContactNameTitleEmailPROJECTINFORMATION

ProjectType GeneralFundingArea AMD Agriculture StormwaterFocusArea1:PerkiomenCreek Stormwater Agriculture PathogenRemediationFocusArea2:PhiladelphiaWaterSupply Stormwater Agriculture PathogenRemediationLandTransactionAssistance(checkallthatapply) ConservationEasement FeeOwnership Donation PurchaseProjectTitle

ProjectLocation

ProjectDescriptionShortdescriptionoftheprojectapproximately50words

BUDGETINFORMATIONGrantRequest $RequiredMatch $a. CashMatch $b. In‐Kindcontributions $TotalProjectCost $

MATCHSOURCES

Source Amount CommittedorPending $ $ $ $

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□IgivepermissiontotheSchuylkillRiverGreenwayAssociationandtheSchuylkillRiverRestorationFundAdvisoryCommitteetoforwardthisapplicationtootherfundersforreviewandpotentialsupport.

APPLICATIONNARRATIVEPleaseaddressallofthefollowingitemsintheorderinwhichtheyarepresented.Thisnarrativeislimitedtoatotaloffivepages. Anyapplicationwithanarrativelongerthanfivepageswillnotbeeligiblefor funding.1. Objectives–Whatarethespecificgoalsandobjectivesoftheprojectandhowwilltheybecompleted?2. Background–Describethebackgroundoftheproject.Whyisthisprojectneeded?Howwasitidentified?Whatwastheoriginalcauseorcircumstancethatdevelopedtheneedforthisproject?3. Criteria–Pleaseaddresstheprioritycriterialistedintheprogramguidelines,specificallyhowthisprojectwillimprovethequalityandquantityofthewaterwithinthewatershed.4. Experience–Describeyourorganizationsexperienceincompletingsimilarprojects.5. Timeline–Pleaseprovideaprojecttimelineshowingmajortasks,sequencetobeperformed,andstartandenddates.6. Deliverables–Pleaselisttheestimateddeliverablesforthisproject.(e.g.–numberofnativetreesplanted,numberofstreammilesrestored,totallinearfeetofstreambankfencinginstalled,squarefeetofriparianbufferrestored,etc.).II. ATTACHMENTS1. Technical–Pleaseincludethefollowing,ifavailable,astheyrelatetoyourproject:

(a) Projectlocationmap

SIGNATURES 

Name Titl Signatur Dat

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(b) SiteplanorphotographPleasenote:Donotincludedesigndrawings,sketches,multipleprojectphotographsandotherdetailedtechnicalinformation.Youwillbeabletopresentandcommunicatetheseitemsduringyourprojectpresentation.2. Budget–Pleaseattachaprojectbudgetshowingtheestimatedexpensesfortheentireproject. (accountingforbothrequestedgrantfundsandmatchingfunds)CriteriaEvaluationfactorsinclude:• Theproject’sabilitytoimprovethequalityandquantityofwaterintheSchuylkillRiver;• Theprojectexhibitshighstandardsofplanninganddesign,includingimplementationofBestManagementPractices;• Therelationshiptopreviouswatershedrestorationeffortswithinaparticulararea;• Theprojectisconsistentwithlocal,state,federal,orotherplans;• Theprojectispositionedforimplementationwithlittleornoadditionalplanning;• Theprojectissingle‐phasedorinthefinalphaseofimplementation.Projectsthatwillrequiremultiplephasestohavedemonstrableaffectsonwaterqualityorquantitywillnotbeconsideredunlessthesubmittedphasewillresultinmeasurableimprovements;• Theprojectwillrequireminimalmonitoringfollowingcompletiontodemonstratepositiveenvironmentaleffects;• Theprojectwilleffectivelyleveragetheresourcesoftwoormorepartners,includingasponsoringpartnerwithsufficientcapacitytomanagetheprojectfollowingcompletionorwillutilizevolunteers;• Howtheprojectwillimpactlowincomeorminoritypopulations?AwardAmounts• Grantapplicantsmayrequestbetween$20,000and$100,000.• ApplicantsworkinginthePerkiomenCreekWatershedmayrequestbetween$5,000and$100,000.MatchRequirements• Allprojectsrequireaminimumof25%match.• Cashandinkindservicesareeligiblematchsources.However,projectsshowinghighlevelsofcashmatchwillbegivenpriorityintherankingandgrantawardprocess.• Matchingfundsderivedfromprivate,non‐governmentalsourcesareencouraged,butnotrequired.GrantPeriodAllprojectsmustbecompletedbyDecember31,2018.EligibleExpensesGrantfundsmaybeusedforthefollowingpurposes: Implementation:Includeslabor,materials,signage,sitepreparation,permitfees,andanyother

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“hardcosts.” Projectmanagement:Upto10%ofthegrantawardmaybeutilizedfordirectcostsAssociated

withprojectmanagementbytheapplicantorsubcontractor.Eligibleprojectmanagementexpensesinclude:subcontractor/consultantfees,salaryfororganizationalstaffresponsibleforprojectimplementation,travel,meetingexpensesandotherdirectcosts.

Ifaprojecthasremainingdesignissuesthatneedtobecompletedpriortoimplementation,the

reviewcommitteewillconsiderthisasaneligibleexpenseonacasebycasebasis.However,theapplicantmustdemonstratethattheproject'simplementationphasewillstillbecompletedduringthethreeyeargrantperiod.

GrantfundsmayNOTbeusedforthefollowingpurposes: Landacquisition(implementationgrantfundscannotbeusedforlandacquisition) Projectsthatarebeingundertakentosatisfylocal,state,orfederalregulatoryrequirements.ContractorSelection:Allcontractorsworkingonprojectsfundedbyagrantthroughthisprogrammustbeselectedbyacompetitiveprocess.Applicantswhodesiretousespecificcontractorsnotselectedcompetitively,mayrequestapprovaltodosofromtheSchuylkillRiverHeritageArea.TheSchuylkillRiverHeritageAreareservestherighttoreviewandapproveallselectedcontractors.LetterofIntentProcessOrganizationsmustsubmitanelectroniccopyoftheLetterofIntenttotfenchel@schuylkillriver.orgbythestateddeadline.TheLetterofIntentshallbeNOLONGERthantwo(2)pages,shouldbeoncompanyletterheadandmustincludethefollowing:• ProjectNameandlocation• ProjectDirectorandcontactinformation• Briefsummaryoftheproject• Objectivesofprojectandhowitmeetstheprogramguidelinesandcriteria• Estimatedgrantrequestandmatchingfundsources**OrganizationsshouldincludeathirdpageintheLetterofIntentshowingaprojectsitemapandphotograph,ifappropriate.ElectroniccopyoftheLetterofIntentmustbesubmittednolaterthan4:00p.m.onFebruary17,2016.FullApplicationProcessInvitedorganizationsshouldsubmitone(1)originalhardcopyaswellasanelectroniccopyoftheirfullapplication.Thisapplicationwillinclude:□ ACoverLetter□ PartI–GeneralApplication.□ PartII‐Projectnarrative.Maximumoffive(5)pages□ PartIII–Attachments.

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CopiesshouldNOTbestapledbutboundbypaperclipand/orbutterflyclip.ApplicantsshouldalsosubmitanelectroniccopyoftheirfullapplicationnolaterthantheapplicationdateofApril15,2016at4:00p.m.ApplicationnarrativeslongerthanfivepagesWILLNOTbeconsideredforfunding.ApplicantswhoareinvitedtosubmitafullapplicationwillalsobeexpectedtopresenttheirproposedprojecttotheAdvisoryCommittee.ThesepresentationswillbeheldinearlyMayattheofficesoftheSchuylkillRiverHeritageAreainPottstown,Pennsylvania.ArepresentativeoftheSchuylkillRiverHeritageAreawillcontactyoutosetupthepresentationtime.

APRIL15,2016DEADLINEFull Applications are due to the Schuylkill River Heritage Area, Attn: Grants ProgramCoordinator,140CollegeDrive,Pottstown,PA19464by4:00p.m.onApril15,2016.Electroniccopiessenttotfenchel@schuylkillriver.orgSchuylkillRiverHeritageArea•140CollegeDrive•Pottstown,PA19464•484‐945‐0200Fax484‐945‐0204•tfenchel@schuylkillriver.org

SchuylkillActionNetworkStrategicPlan

2016‐2020AppendixA:BackgroundontheSAN’sOrganizationalDevelopmentAppendixB:2016WorkplansSANDrinkingWaterProtectionHistory

FollowingthepassageoftheCleanWaterActandtheSafeDrinkingWaterActintheearly1970s1,westartedtothinkverydifferentlyaboutourriversandstreamsandhowtheyimpactourdailylives.TheSchuylkillRiver,whichwasonceseenasaplacetodisposewaste,isnowavitalresourceforourqualityoflife.AsthelargestsingletributaryandsourceoffreshwatertotheDelawareRiver,theSchuylkillRiverisalsoanimportantcomponentoftheDelawareEstuary.Theriverprovidesopportunitiesforrecreation,helpstomeetourenergyneeds,andisamajorsourceoffreshwatertotheDelawareEstuary,amajoreconomicdriverfortheregion.However,oneofitsmostimportantbenefitsissomethingweallrelyoneveryday,drinkingwater.Morethan2millionpeoplegettheirdrinkingwaterfromtheriverandstreamsintheSchuylkillwatershed,makingprotectingitaveryimportantgoalforwatersuppliers.Overadecadeago,thePhiladelphiaWaterDepartment(PWD)embarkedonaveryambitiousefforttoidentifyandprioritizeallofthepotentialpollutionthreatstotheSchuylkillRiver,whichprovidesabouthalfofthecity’sdrinkingwater.Thisprocessledtothecreationofaprotectionplanfortheriver,layingoutaroadmapforaddressingthesethreats.Oneoftheprimarygoalsofthisplanwastocreateamechanismforregionalcoordinationacrossgeographic,regulatory,andjurisdictionalboundaries.TheSchuylkillActionNetwork(SAN)wascreatedshortlythereaftertohelpaccomplishthisgoal.TheSANtakesawatershed‐wideapproachtoprotectingdrinkingwatersourcesbypartneringwith

2016 Schuylkill River Restoration Fund Grant Timeline

January 6: February 17: March 9: April 15:

Application materials available online at www.schuylkillriver.org Letters of Intent due to SRHA by 4:00 p.m.

Invitation to submit Full Application notice sent

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upstreamcommunities,otherregionalwatersuppliers,businesses,governments,andwatershedprotectiongroups.StrategicPlanBackgroundSinceitsinception,theSANhasregularlyproducedaStrategicPlantohelpguidethenetwork’sfuturegrowthanddirection.TheSAN2016‐2020StrategicPlan(the“Plan”)wasdevelopedthroughaneffortoftheSANPlanningCommitteetoserveasaguideforthenextfiveyears.ThePlanwasinformedbytheSAN’soriginalgoalsandpurposes,pastprioritiesandlong‐termagendaitems,aswellasthecurrentandongoingworkofitsvariousworkgroups,committees,andpartners.TheSANfacilitatedavarietyofprocessesforgatheringnewinputfrompartnersandwatershedstakeholdersduringthestrategicplanningupdateprocess.Earlyin2015,thePlanningCommitteeandExecutiveSteeringCommittee(ESC)initiatedtheplanningprocessbyidentifyingkeythemesforthenewplan.Duringthesummerof2015,thePlanningCommitteeheldregionalstrategicplanninglisteningsessionsinReadingandPhiladelphiaandengagedmembersonlinethroughawebinarmeeting.Severalonlinesurveysdevelopedforwatersuppliers,recreationalusers,andthegeneralpublicweredistributedthroughoutthewatershedtogarneradditionalinput.Intotal,over300SANpartnersandstakeholdersprovidedresponses.AllsolicitedfeedbackwasorganizedbytheSANPlanningCommitteeandincorporatedintonewstrategiesandobjectiveswhicharereflectedinthePlanbelow.ThePlanisatoolcraftedtoguideandcoordinatetheSAN’sworkoverthenextfiveyearsandtocommunicatetheSAN’sintentionstothesurroundingcommunityofpartners,potentialpartners,andfunders.Planningisafluidprocessandthisplanwasdesignedtoberegularlyrevisited–andrevised–asneededaspartoftheworkplanningprocess.ThePlanissupportedandfurtherdetailedbytheyearlyworkplansforeachSANworkgroup/committee.TheSANisavoluntarypartnershipdedicatedtomeetingitsmissionandvisionfortheSchuylkillRiver.Thedeadlines,actions,andcommitmentsofthisPlanaresubjecttotheavailabilityofsufficientresourcesandfundingtocarrythemout.TheSANleadershipwillperiodicallyreviewtheprogressofthePlan,makeadjustmentsasneededtoreflectthelatestpriorities,needsandavailableresources,andcontinuetoworktowardthevisionandmissionoftheSANatanefficientandfeasiblepace.OverviewofSANStrategicGoalsStrategicGoal Workgroup/Committee

Responsible

ToadvancedrinkingwaterandwatershedprotectionfortheSchuylkillRiveranditstributariesbyfacilitatingcommunicationanddecisionmakingonaregional,state,andfederallevel.Workcollaborativelytoensuretheavailabilityofresources,expertise,andcommitmentstosupportthework.

ExecutiveSteeringCommittee

Focuseffortsonimprovingwatershedmanagement,especiallyactivitiesthatwillenhancethequalityandflowofSchuylkillwatersfortheprotectionofpublichealthandaquaticresources.CreateandmaintainaneffectivenetworkthatmaximizestheresourcesofitsmembershiptoprotectandrestoretheSchuylkillwatershed.

PlanningCommittee

Maximizereductionand/ortreatmentofabandonedminedrainagedischarges.

AbandonedMineDrainage(AMD)Workgroup

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Maximizereductionand/orpreventionofagriculturalimpactstowaterquality.AgriculturalWorkgroup

Improvepublicsupportforwatershedprotectionactions. Education&OutreachWorkgroup

Engagerecreationalusersofthewatershedinactivitiesthatleadtoincreasedawarenessandadvancementofwatershedprotectionandrestorationstrategies.

RecreationWorkgroup

Facilitateandstrengthencommunicationandcoordinationamongregulatoryagencies,downstreamwaterusers,andbasinstakeholdersregardingpointsourcecomplianceprogramsanddrinkingwaterprotectionstrategies.

Pathogens/ComplianceWorkgroup

Maximizereductionand/orpreventionofstormwaterrunoffpollution. StormwaterWorkgroup

PromoteasustainablelandscapeintheSchuylkillRiverwatershedthroughstrategicconservationandefficientlandresourceusetoprotecttheintegrityofwatersuppliesforfuturegenerations.

WatershedLandProtectionCollaborativeWorkgroup

VisionTheSchuylkillwatershedisahealthyecosystemandafoundationforathrivingnetworkofcommunitiesinsoutheasternandcentralPennsylvania.ItisthelargestsourceoffreshwatertotheDelawareRiverandanimportantnaturalresourceoftheDelawareEstuary.Residentsrecognizethemselvesascitizensofthewatershedandtheyvalueitsuniqueculturalandnaturalresources.Reflectingthiscommonvalue,residents,businesses,non‐profitorganizations,andgovernmentsactivelyworktoaddresscurrentandpastthreatstodrinkingwatersourcesandwatershedhealthwhileworkingtoprotectthesenaturalresourcesfromnewstress.MembersoftheSchuylkillActionNetworkshareinformation,expertise,andtechnologytohelpeachotherachievethissharedvisionofcleanwaterandahealthyenvironmentfortheSchuylkillRiveranditstributaries.Managementpractices,restorationefforts,andprotectivemeasuresareimplementedusingasustainablesourceoffundingtoimproveandprotectthewaterresourcesandwaterqualityoftheSchuylkillRiverwatershed.MissionThemissionoftheSchuylkillActionNetworkistoimprovewaterresourcesintheSchuylkillRiverwatershedbyworkinginpartnershipwithlocalwatershedorganizationsandlandconservationorganizations,businesses,academics,watersuppliers,recreationalcommunities,localgovernments,andregional,state,andfederalagenciestotranscendregulatoryandjurisdictionalboundariesinthestrategicimplementationofprotectionmeasures.TheSANseekstoachievethismissionthroughenhancedcommunicationandcollaborationand,morespecifically,byworkingcooperativelywithinterestedpartiesto:● SupportexistingeffortsandimplementactionstorestoreandprotectwaterqualityintheSchuylkillRiverwatershed;● Promotethelong‐termcoordinatedstewardshipandrestorationofthewatershedandeducateothersregardingtheirrolesinprotectingthewatershedandwatersupplies;● Transfertheexperienceandlessonslearnedtoothercommunities;and● Enhanceintergovernmentalcommunicationandcoordinationbyworkingtogetherontheidentificationandresolutionofenvironmentalissueswithsharedregulatoryresponsibility.SANObjectivesToimprovethequalityofdrinkingwaterasindicatedby:

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● Reductioninannualpollutantloadingstosourcewaterduetodrinkingwaterprotectionefforts.● ParticipationofSchuylkillRiverwatersuppliersinSANworkgroupsandeventsdirectlysupportingutility’sSourceWaterProtectionPlansandSourceWaterProtectionPlangoals.Toimprovewatershedhealthasindicatedby:● Increasedeffortstoachievehealthyandresilientaquaticecosystems.● Promotingtherestorationofimpairedstreammilesandcontinuingtofurtheradvancetheprotectionofstreammilesthroughthenetwork’smanycollaborativeeffortsandwatershedstrategies.Toimprovepublicvalueasindicatedby:● SignificantimprovementinpublicperceptionoftheSchuylkillRiverasavitalregionalnaturalresourcethatshouldbeprotected.● Areturntotheriverbythepublicforthepurposesofrecreation,sport,andenjoyment.KeyStrengthsoftheSAN

OverviewDuringthestrategicplanningprocess,SANmemberswereaskedtodescribetheservicesprovidedbytheSANthattheyvaluemost.Theseservicesshouldbemaintainedand/orimprovedbytheSANinordertoachieveasharedvisionforacleanandhealthySchuylkillwatershed.Thefollowingthemesrepresentthisfeedbackandareincorporatedthroughoutthegoals,strategies,andobjectivesoftheSANleadershipandworkgroups.

ResourceTheSANprovidesvaluableresourcesandinformationrelatedtotheSchuylkillwatershed.ThishasbeenaprimaryobjectiveoftheSANsinceitsinception,andachievedbyutilizingtheSANwebsiteasaclearinghouseofinformationonSchuylkill‐relatedtopics,documents,reports,guides,photos,andmore.MaintainingthisbenefitoftheSANisimportantforthewatershedcommunityandisembeddedasakeyelementofthestrategiesforthenext5years.TheSANshouldalsocontinuetolookforadditionalopportunitiestoserveasaresourceforitspartnersthatwilladdvaluetothesharedworkthroughoutthewatershed.TheSAN’skeystrengthsasaresourceincludebeing: Aleadingsourceforinformationonwatershedrelatedissuesormaterials; Supportive,andpossessingahighlevelofwatershedknowledgeandexpertise; Aresourceforassistingpartnersinobtainingfundingnecessarytocompletetheirpriorityprojects.Forexample:partnerssubmitmanymulti‐organizationalgrantapplications,focusonsub‐awardprojectscoordinatedbythePartnershipfortheDelawareEstuary,andprovidelettersofsupportforSANpriorityprojects.

NetworkingandCollaboration

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OneoftheprimarygoalsoftheSANistoserveasaplatformforindividuals,organizations,agencies,utilities,schools,businesses,andotherstocometogethertoshareresources,information,andstrategiesthatimprovethehealthofthewatershed.TheSAN’skeystrengthsinnetworking/collaborationinclude: Effectivecollaborationwithpartners; Welcomingandengagingmembers; Strategicallyplanningeventsandmeetings; Bringingtogetheravarietyofstakeholdergroups.Forexample:environmentalnonprofits,waterutilities,andgovernments; Havinggeographicaldiversityamongitspartners; ContinuouslydevelopingtheSANandincludingnewmembers/partners; Providingprofessionalconnectionandnetworking.

Issue‐focusedActionTheSANislargelystructuredaroundissue‐drivenworkgroups,taskedwithaddressingthemostpressingproblemsinthewatershed.ThisapproachisvaluedbySANpartnersinthatitrepresentsaprioritizedapproachandleadstohighqualityprojects.Inthestrategicplan,strategieshavebeendevelopedtoensurethatissue‐drivenworkcontinuesandisexpandedwhenpossible.TheSAN’skeystrengthsinmaintainingissue‐focusedactioninclude: TheSAN’sfocusonmanydifferentaspectsofwater,whilemaintainingacentralemphasisonwatershedhealthandcleanandsafedrinkingwater; Linkingtogetherdrinkingwater,wastewater,recreation,societalissues,andeconomics; Definingclearobjectives; Takingprovenapproachestosolvingproblems; Identifyingtoolstoprotectandrestorethewatershed.

WatershedImprovementsTheSANhaspositivelyimpactedtheenvironmentalconditionsofthewatershed,aswellascommunitiesinthewatershed,despitelimitedmoney,resources,andstaff.ThisisespeciallyhighlightedintheAgriculturalandAbandonedMineDrainageworkgroupswherewaterqualityimprovementsareverynoticeable.Throughoutthisstrategicplan,theSANwillfocusonachievingwatershedimprovementresults.TheSAN’skeystrengthsinachievingwatershedimprovementsinclude: Fosteringpositiveenvironmentalchange; Positivelyimpactingcommunitiesinthewatershed; Clearlycommunicatingwhatprogresslooksliketoitsmembers; Achievinggoalsdespitelimitedmoney,resources,andstaff; Identifyingtoolstoprotectandrestorethewatershed.

EducationandOutreachTheSANworkstointegrateeducationinmanyofitswatershedrestorationandprotectiongoals.InadditiontomaintaininganEducationandOutreachWorkgroup,theSANstrivestoimplementactionsthatincreasetheunderstandingofandaffinityfortheSchuylkillWatershedacrossallofitswork.EducationandoutreachisalsoakeyfocusinmanyoftheSAN’spartners’missions.When

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possible,educationandoutreachshouldbefurtherembeddedthroughoutSANinitiativesandprojectswiththegoalofincreasingpublicawarenessandcareforthewatershed.TheSAN’skeystrengthsineducationandoutreachinclude: Makingtheconnectionbetweenupstreamanddownstreamwaters; Includingstrong,clearmessagesaboutcleanwaterinoutreachmaterials; CreatingandmanagingtheSchuylkillActionStudentsprogram.

DataandMonitoring2InordertoadvancetherestorationandprotectioneffortsoftheSAN,itisimportanttodocumenttheextentandimpactofactivities.Thisislargelyaccomplishedthroughwaterqualitymonitoringefforts.DatacollectionandmonitoringisakeyelementofmanySANworkgroupstrategies.TheSANwillworktoacquireresources formonitoringandtoconnectlocalmonitoringactivitieswith largerregionalmonitoringanddatacollectionandmodelingefforts.AprimarygoaloftheSANwillbetoprovideamechanism for sharing data among partners to assist in identifyingpriority areas for programimplementation,reducingcontamination,andprotectingpublichealth.TheSAN’skeycollaborativemonitoringanddatacollectioneffortsinclude: AbandonedminedrainagemonitoringeffortscompletedbytheSchuylkillHeadwatersAssociation,SchuylkillConservationDistrict,UnitedStatesGeologicalSurvey,andtheArmyCorpsofEngineers. AgriculturemonitoringeffortsbytheDelawareRiverWatershedInitiative(DRWI). ConservationmonitoringeffortsbytheDRWIAdditionalmonitoringstrategiesoftheSANinclude: Provideguidanceandsupporttoworkgroupsfordeterminingandmeasuringworkgroupobjectives. ProvideguidanceandsupporttotheSANpartnersforintegratingwatershedmonitoringinformationintotheSANwebsiteandotheroutreachtools. Supportthemaintenanceofkeymonitoringstations,suchastheUSGSgaugestationatNorristownandotherUSGSgaugestationslocatedupstreamofdrinkingwaterintakes. CoordinatewatershedmonitoringandanalysisneedswithcurrentornewinitiativesthroughtheDelawareRiverWatershedInitiativeandwiththeAcademyofNaturalSciences. Supportwatersuppliersintheireffortstobettercoordinateandsharewaterqualitydataandinformation. EncouragetheinvolvementofcollegesanduniversitiesinhelpingthemeetadditionalmonitoringneedsintheSchuylkillRiverwatershed. IdentifyopportunitiesandprovidesupportforconnectingdataandmonitoringactivitiesoftheDelawareValleyEarlyWarningSystemwithSANwatershedoutreachandplanningefforts.

WaterSuppliersSincetheinceptionoftheSAN,theSANhasbeenactivelyinvolvedinwatersuppliers’sourcewaterprotectionplanningandimplementationefforts.TheSANshouldcontinueto: MaintainandupdatethewatersupplierslistontheSANwebsite. Sharerelevantinformationwiththewatersupplierslistserv. Participateinwatersuppliersourcewaterprotectionmeetings.

AppendixA:

BackgroundonSANOrganizationalDevelopment

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CreationofSANTheSchuylkillActionNetwork(SAN)isacollaborativenetworkofover100partnersworkingtogethertoimprovewaterresourcesintheSchuylkillRiverwatershed.TheSANseekstoachievethisvisionbyworkinginpartnershipwithlocalwatershedandlandconservationorganizations,businesses,academics,watersuppliers,recreationalcommunities,localgovernments,andregional,state,andfederalagencies.Inresponsetosourcewaterassessmenteffortsin2003,thePhiladelphiaWaterDepartment(PWD)soughthelpfromtheEnvironmentalProtectionAgency(EPA)RegionIIItodevelopanetworkofstakeholdersthatwouldincludevariousagenciesandorganizationsworkingtoprotectSchuylkillwatershedresources.TheEPAledthecreationoftheSchuylkillActionNetworktoaddressmajorthreatstodrinkingwaterintheSchuylkillwatershed,includingpollutantsfromagriculture,abandonedmines,stormwater,andsewage.TheSANwasstructuredasaseriesofintegratedworkgroupsorcommitteestoaddresstheidentifiedthreatstotheSchuylkillRiver.Theoriginalworkgroupsinclude:AbandonedMineDrainage,Agriculture,Stormwater,andPathogens/ComplianceWorkgroups.Eachworkgroupwasdesignedtomeetregularly,undertheleadershipofavolunteerchairperson,todiscusswatershedissuesandplanandimplementprojectsofstrategicimportancerelatedtothesetopics.TheseworkgroupsweredesignedtorepresentthecoreoftheSANandthevehiclebywhichmostoftheSAN’sworkisaccomplished.Workgroupmembershipandmeetingswerecreatedtobeopenandaccessibletoanyone.Inadditiontotheworkgroups,theSANincludedanExecutiveSteeringCommittee(ESC),PlanningCommittee,Education/OutreachCommittee,andDataTeamtoguideandsupporttheactivitiesoftheworkgroups.TheESCmetsemi‐annuallytoprovidehigh‐levelguidanceandbuy‐infromthemajorpublicagencies,whilethePlanningCommitteemetmonthlytoprovidemorehands‐onstrategicdirectiontotheSANandhelpinsuregoodinternalcommunication.TheEducation/OutreachCommitteeandDataTeamprovidedsupportservices,benefittingallSANworkgroupsandmembers.Figure1depictstheoriginalorganizationofSANworkgroupsandtheirresponsibilitiesasof2004.

EvolutionofSANOvertime,theorganizationoftheSANhasevolvedinseveralcriticalways.In2004,asubcommitteeoftheStormwaterworkgroupwasconvenedtoaddresstherecommendationsoftheSchuylkillRiverWatershedConservationPlan.ThiswasacriticalfirststepfortheSAN,takingapreventativeapproachtodrinkingwaterthreats.TheSchuylkillRiverConservationPlanledtoasuccessfulPennsylvaniaDepartmentofEnvironmentalProtectionGrowingGreenergranttoprioritizelandforpreservationbasedondrinkingwaterprotection.Alsoin2004,thePWDandthePartnershipfortheDelawareEstuary(PDE)submittedasuccessfulTargetedWatershedGrantproposaltotheEPAtofundaseriesofprojectsintheSchuylkillwatershed.Thisfunding($1.15millionoffederalfunds,leveraginganadditional$1.49millioninmatchfromvarioussources)hasbeencriticalinallowingtheSANtotakeactionontheground.ItisalsoanexampleoftheSANatitsbest:adiversityoforganizationsandagenciesleveragingtheirindividualstrengths/skillstobringnewresourcestothewatershedandtacklewidespreadandcomplexproblemsinatargeted,strategicway.Underthisgrant,localorganizationsactedasprojectmanagersandreceivedandmanagedprojectfundsforimplementationofprojects.Projectsincludedabandonedminedrainageremediation,stormwatermanagementimprovements,

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agriculturalimprovements,andeducationalpilotsandcasestudies.ThisgrantprovidedfundingfortheSANtoimplementasetofselectedprojectsfrom2004to2008,duringwhichtimetheSANleadershipcultivatednewfinancialresourcestocontinueandexpandonthismodelofimplementation.InAugust2005,thePlanningCommitteebegantheprocessofstrategicplanningbytakingacriticallookatSAN’sorganizationalstructureandhowitcouldbeimprovedtoenableandencouragemorestakeholderleadershipwithintheSAN.Aspartofthiseffort,severalimportantdecisionsweremade,including:● Thedecisiontoaddanon‐governmentalpositionattheESClevelformorebalancedrepresentation.Basedonthisdecision,thePDEjoinedtheSANESCinthebeginningofAugust2006.● ThedecisiontomaintainafederalleadfortheESCinordertoprovidecredibilitytothecollaborativeapproachandinfluenceforstakeholderinvolvement.

● ThedecisiontoexpandPlanningCommitteemembershiptoincluderepresentativesfromeachofSAN’sworkgroupstoprovideamechanismforadditionalstakeholderinvolvementandbettercommunicationacrossgroups.

● ThedecisiontofocusontheSchuylkillRiverCongressastheprimaryoutreacheventfortheSANeachspring,andholdtheSANAnnualWorkshopeachfall.Inspring2006,theSANengagedtheInstituteforConservationLeadership(ICL)toleadastakeholderinputprocesstoinformthestrategicgrowthanddirectionofSAN.ThefollowingcriticaldecisionsweremadebytheSANleadershipinAugust2006inresponsetotheICL’srecommendations:● ThedecisiontoelevatetheWatershedLandCollaborative(WLC)tofullworkgroupstatusinanefforttomaketheconnectionbetweenlandandwatermanagementmoreexplicit.Asaresult,theWLC was reinvigorated andmet quarterly,which re‐engaged land conservation interests in thewatershed.● Thedecisiontodevotetime/efforttoandgetprofessionalhelpforimprovingSANcommunications,includingexploringnewresourcesandideasforimprovingSAN’sinternalcommunication,creatingawebsite,andexploringthefeasibilityofamajorpublicoutreachcampaign.Asaresult,oneoftheSAN’stopprioritiesfororganizationalimprovementwastohireacommunicationsconsultanttoprovideassistanceonthesecriticalcommunicationissuesin2007.

● Thedecisiontodevotetime/efforttosortandidentifyspecificpolicyissuesthattheSANcouldplayaroleinaddressingonanissue‐specificbasis.Asaresult,thePlanningCommitteeevaluatedthevastnumberofpolicysuggestionsmadebystakeholderstoidentifydiscreteactionsfortheSANanditsleadingagenciestoundertakeforimprovement

● ThedecisiontotargetmunicipalitiesasakeyaudienceintheworkofboththeStormwaterWorkgroupandtheWatershedLandProtectionCollaborative.Alsoin2006,theSANcontractedwiththeEnvironmentalFinanceCenter(EFC)toexplorethefeasibilityforbuildingasustainablefinancing/fundingmechanismforSchuylkillWatershedprotectionactivities.Basedoninterviewsandresearch,theEFC’sreportoutlinedthescale,sources,andinstitutionsforfinancing/fundingandstepstofillthefinancing/fundinggapforeachofthe

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SAN’spriorityareas/workgroups.TheEFCalsomadeaseriesofrecommendationstotheSANleadership,includingdevelopingaunifiedrestoration/protectionplan,expandingcommunityengagementwithoutreach/educationandbyworkingwithrelevantstakeholdergroups,focusingonprevention,andconveninganImplementationTaskForcetohelpcreateafunding institution.In2004,theSANlaunchedawebpage.In2007,SANcreateditswebsite:www.SchuylkillWaters.org.ThiswebsiteservesasaclearinghouseforinformationontheSchuylkillWatershed,SANprojects,andprovidesapublicoutreachcomponentofthenetwork.Thewebsitealsofeaturesaninternalcomponent,designedtofacilitateinteractionamongstSANpartners,allowingforprojectsreportstobecreatedandshared,newsitemstobeshared,emailbetweenworkgroupsandSANmembers,andthehostingofworkgroupdocuments.Since2007,thewebsitewasupgradedtoaddaninteractivecalendarandwasintegratedwithsocialnetworkingtoolsandsites.In2009,theSAN,throughthePDE,broughtonafulltimecoordinatortooverseetheday‐to‐dayoperationoftheSAN,facilitatecollaborationamongstmembers,andadvanceworkgroupgoalsbysecuringfundingandresourcesforpriorityprojects.In2011,theSANupdateditstrategicplanforanother5years(2011‐2016).ThisplanrenewedcommitmentsoftheSANworkgroups,integratednewinitiativesandworkgroupsstrategiesintotheprocess,andsetoutanambitiousagendatostrengthenSAN’spresenceinthewatershed.In2013,theSANcelebratedit10‐yearanniversary,whichwascommencedwithaseriesofeventsthroughouttheyear,includingacelebrationthatrecognizedthemanymilestonesthattheSANwasabletoachieve,commitmentsofSANpartners,andarenewalofthestakeholdersthatcontributedtomakingSANwhatitistoday.TheSANalsoreleaseda10‐yearprogressreportthathighlightedalloftheworkgroupaccomplishmentssincetheSAN’sinception.In2014,theSANsecuredafellowtoassistthecoordinator,whichhassincebeenturnedintoafulltimeSANspecialistposition.Today,SANnowhastwo‐full‐timestaffmemberstooverseethenetworkandassistworkgroupwithadvancinganaggressiveagendaforacleanandhealthySchuylkillWatershed.

SANTodaySince2003,theSANhasgrowntoapproximately150organizations(over500people)includinglocalwatershedorganizationsandlandconservationorganizations,businesses,academics,watersuppliers,recreationalcommunities,localgovernments,andregional,state,andfederalagencies.TheSANusesuniqueskillsandexperienceofeachofitspartnerstoimplementon‐the‐groundprojectsthatimprovewaterqualityoftheSchuylkillRiveranditstributaries.Today,theSANiscomposedofanExecutiveSteeringCommittee,aPlanningCommittee,sixworkgroups(AbandonedMineDrainage,Agriculture,Education&Outreach,Pathogens/Compliance,Stormwater,andWatershedLandCollaborative)andisdevelopingaseventh,Recreationworkgroup.Figure3depictstheSAN’sorganizationalstructureasitisin2016.Overthepastseveralyears,theSANhasstrivedtoencouragegreaterstakeholderparticipationandleadership.Becauseoftheseefforts,therearemanyopportunitiesforstakeholderstobeinvolvedintheSANtoday.Allworkgroupmeetings,times,andlocationsarepostedontheSANwebsiteandareopenforanyonetoattend.Withthecompletionofitsmostrecentstrategicplan,anevenmoreaggressiveandinclusiveagendahasbeenestablishedtoguideSANthrough2020.Manynew

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partnershavebecomepartoftheSANandtogether,thiscollaborativenetworkwillcontinuetoleadeffortstorestoreandprotecttheSchuylkillWatershed.Figure1:SANOrganizationalChart2004

Figure2:SANOrganizationalChart2007

SchuylkillActionNetworkFinancingStrategyAWhitePaperReportPreparedbytheEnvironmentalFinanceCenterUniversityofMaryland

January2007IntroductionThisreportwasproducedbytheEnvironmentalFinanceCenter(EFC),whichislocatedattheNationalCenterforSmartGrowthResearchandEducationattheUniversityofMaryland,CollegePark.EFC’sworkonthisprojectwaspartiallysupportedbyacontractfromthePartnershipfortheDelawareEstuaryonbehalfoftheSchuylkillActionNetwork(theNetwork).ThepurposeofthisreportistooutlinethefundingandfinancingchallengesrelatedtorestoringandprotectingwaterresourcesintheSchuylkillwatershed,andtoproviderecommendationstotheNetworkforsupportingkeyfinancingneedsthroughouttheregion.OuranalysisfocusedontheNetwork’sfour“areasofconcern”–abandonedminedrainage,agriculture,wastewater,andstormwater–highlightedintheRecommendationsfortheNetworkTheEnvironmentalFinanceCenterrecommendsthattheNetworkfocusonthreecoreissues:implementingwaterqualityprograms,supportlandconservationefforts,andsupportingfarmingeconomyinitiatives.Therefore,werecommendthefollowingnextsteps:Conductan“audit”offederalandstatewaterqualityandtechnicalassistancefundingprograms.Therearedozensofstateandfederaltechnicalassistanceandfundingprogramsavailabletofarmers.ThoughnotallofthemarerelevanttofarmersintheSchuylkillwatershed,itisverylikelythatallavailableresourcesarenotbeingleveraged.ParticipatingNetworkpartnersshouldsponsorandsupportadetailedanalysisoftheseprograms.Whereresourcegaps

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exist,partnershipsshouldbedevelopedtoincreaseimplementationcapacity.AneffectivecasestudyforthisapproachistheChesapeakeBayFoundation’sworkonassistingfarmersandNRCSofficesinprovidingtechnicalassistance.FocusNetworkresourcesondevelopingandsupportingfinancinglandconservationprograms.ItisourrecommendationthattheNetworkfocusitsresources,specificallythoseintheagriculturalworkgroup,onsupportingeffortstoprotectresourcelandsandcriticalopenspacethroughoutthewatershed.Oneofthe“truths”associatedwithenvironmentalfinanceisthatitischeapertoprotectthanitistorestore,andpreventingtheimpactsofrapiddevelopmentandstormwaterrunoffonwaterresourcesiscriticallyimportanttothesuccessoftheregion’sfinancingandimplementationefforts.Protectingagriculturallandsandtheregion’sagriculturaleconomyisthemosteffectivewaytomanagepopulationgrowthandtoencouragenewdevelopmentinappropriateareas.Leveragecommunitypartnerstodevelopmarket‐basedfarmingprograms.InNovemberof2005,theAmericanFarmlandTrust(AFT)producedareportfortheBerksCountyCommunityFoundationcalledtheChallengesandOpportunitiesforAgriculturalViabilityinBerksandSchuylkillCounties.ThepurposeofthestudywastoanalyzetheagriculturalindustryinBerksandSchuylkillCountiesandtodeterminewhatactionscouldbetakentosustaintheindustryforthe

next25years.40Inadditiontoprovidingarobustanalysisofthestatusofagricultureinthewatershed,itprovidesathoroughlistofnextstepsandrecommendationsforthecommunitiestotaketosustaintheagriculturalindustry.ItisourrecommendationthattheNetworkusetheserecommendationsgeneratedbyAFTasthebasisforitsstrategicgoals.Thereportoutlinesavarietyofmarket‐basedtools,taxincentives,economicdevelopmentprograms,andtechnicalassistanceprogramsthat,iffullyimplemented,wouldreducethecostassociatedwithprotectingwaterresources.StormwaterManagementRecommendationsfortheNetworkUptothispoint,thefocusoftheNetworkhasbeentouseexistinggrantfundstoimplementinnovativestormwaterbestmanagementpracticesandcontroltechnologies.Thesetypesofdemonstrationprojectsareoftenthemosteffectivewayfororganizationsandcommunitiestoeducatecitizensandcommunityleadersonthetypesofinnovativeoptionsavailableforprotectingandrestoringlocalwatershedsandwaterresources.However,astheNetworkmovesforward,itshouldconsideritsabilitytosustaintheseprograms,aswellasitsabilitytoinfluencethefinancingprocessincommunitiesacrossthewatershed.Ultimately,successfullymanagingstormwaterwillrequiresignificantchangesinthestate’sregulatoryandgovernancestructure,andtheNetworkshouldfocusitsenergiesonfacilitatingthosechanges.Focusonnewdevelopmentandlandprotection.Themostsignificantthreattothewaterresourcesthroughoutthewatershedisnewdevelopment,specificallydevelopmentinthewrongplacesdoneinthewrongway.TheNetworkshouldfocusonworkingaggressivelytoprotectagricultureandopenspaceintheupperpartofthewatershed.Preventingstormwaterproblemsinthewatershedismuchlessexpensivethanfixingthem.Forthesamereason,theNetworkshouldalsocontinueitseffortstoimplementlow‐impactdevelopmentstandardsincommunitiesacrossthewatershed.Therehavebeenmanycommunityeffortsthroughouttheregionworkingwithlocalgovernmentstoimplementlowimpactdevelopmentandstormwaterstandards.TheNetworkshouldconcentrateoncontinuingtheseefforts.Workwithcommunitiestodevelopstrategicapproachestofinancingandimplementation.Whatisneededatthelocallevelisabusinessplanapproachtofinancingandimplementingstormwaterandwetweathermanagementprograms.Somecommoncharacteristicsareevident

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amongsuccessfulstormwaterutilityprograms.Themostsuccessfulprogramshavereliedheavilyonabusinessplanmodel,whichguidesboththeprogramevolutionandfundingdecisions.Thestrategyforaccomplishingtheprogramisdefined,thetypeandmagnitudeofcostsareprojected,resourcerequirementsaredetermined,timingissuesareresolved,andthentheanalysisofspecific

fundingmechanismstakeplace.52TheNetworkhasanopportunitytoworkwithstateleaders,NGO’s,academicinstitutions,andotherstakeholderintereststodeveloptechnicalassistanceprogramsthatfocusonimplementingthisbusinessplanapproachincommunitiesacrossthewatershed.Continuetofocusonpubliceducationandoutreach.ArealstrengthoftheNetworkhasbeenitsfocusoneducationandoutreach.Thisiscriticalinthefinancingprocessbecauseitprovidesawayforlocalandstateofficialstocommunicatetotheircitizensandconstituentsthevalueoftheirinvestment,andthereturntotheircommunity.Inmostcommunities,“needs”arethekeydriverofstormwaterprogramandfundingstrategies.Authority,capability,andaclearvisionofthemissionareessential,butintheabsenceofcompellingneedslocalgovernmentleadersapplytheirattention

andresourceselsewhere.53And,itisoftenthecitizensofthecommunitythatidentifyanddefinetheseneeds.TheNetworkshouldfocusitscommunityoutreachandeducationresourcesonthisissue.Asmentionedthroughoutthisreport,oneofourprimarygoalswastoproviderecommendationstotheNetworkonhowitcanstrengthenandleverageitsroleinthefinancingandimplementationprocess.Oneofthemosteffectivewaystoaccomplishthiswouldbetoworkinpartnershipwithstateandcommunityofficialstodevelopstrategiceducationandoutreachprogramsacrosstheregion.RecommendationsforMovingForwardDevelopunifiedrestorationgoals.OneofthestrengthsoftheNetworkisitsabilitytotapintothemanystudies,planningefforts,andconservationandprotectionstrategiesbeingdevelopedincommunitiesacrossthewatershed.Inadditiontothesourcewaterassessment,therehavebeenwatershedprotectionplansdeveloped,TMDLstudiesimplemented,Act167andMS4permitsdeveloped(andultimatelyenforced),aswellasahostofotherplanningandimplementationeffortsfocusedonprotectingwaterresourcesthroughoutthewatershed.TheopportunitytoleveragealloftheseeffortsisacriticalbenefitfortheNetworkanditsparticipatingorganizations.However,theredoesnotappeartobeacodified,unifiedrestorationandprotectionplaninplace.Theassessmentidentifiedthethreatstodrinkingwaterresources,butitdoesnotclearlyestablishpollutionreductiongoals,strategiesforreachingthesegoals,orstrategiesforimplementation.TheNetworkhasauniqueopportunitytoformalizeandcodifyawaterresourcesrestorationplanandstrategy.Large‐scaleecosystemrestorationeffortsaresuccessfulwhenthereisaunifyingtheme,implementationplan,andtemplateforsuccess.Thedecisionbywatershedleaderstocombinedrinkingwaterprotectioneffortswithwaterqualityprotectioneffortswasbasedonanimplicitunderstandingthattheunifyingthemewastheneedtoprotectandmanagewaterresources.ThegoalofeachorganizationorinstitutionparticipatingintheNetworkmaybedifferent.Thereareconstituentsandstakeholderstargetingmyriadissuesincludingwaterquality,stormwatermanagement,wastewatermanagement,abandonedminedrainage,drinkingwaterprotection,habitat,andopenspaceprotectiontonameafew.Thepowerofthistypeofapproachisthatbyfacilitatingtheimplementationofabroadnumberofobjectivesandprogramsthroughanequallybroadnetworkofpartnerorganizations,institutions,andcommunities,thelargercollectivegoalcanbemoreeffectivelyandefficientlyrealizedandmaintained.Thechallengeisinharnessingandleveragingthenecessaryleadershipandinstitutionalstructuresnecessaryforsustainedimplementation.

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Thisisaveryimportantnextstepinthefinancingeffort.Withcostestimatesforrestoringandprotectingwaterresourcesinthehundredsofmillions,ifnotbillionsofdollars,itiscriticalthatlocalandstateleadersclearlydefinethescaleoftheproblem,associatedcosts,andthestrategyforachievingprogramgoals.Successfullyprotectingthewatershedwillrequiretheuseofpublicrevenue,andleveragingthenecessarytaxesandfeeswillrequireaclearunderstandingofhowtheresourceswillbeinvestedandhowtheywillallowcommunitiestoreachtargetedgoalsandstrategies.Thefinancingprocesswillrequireamosaicofresourcesandtools,buttheoverallgoalmustbeclearlydefined.Therefore,ourrecommendationisthattheNetworkleadthisplanningeffort.Conductathoroughcostanalysis.Successfullyfinancinganythingisverydifficult,ifnotimpossible,withoutaclearunderstandingoftheassociatedcosts.Wehaveidentifiedtherelativescaleofthecostsassociatedwitheachofthefourareasofconcern,butadetailedcoststudywasbeyondthecapacityofthisproject.Acostanalysisorstudyiscritical,however,becauseitwillnotonlyidentifythecostsassociatedwithspecificbestmanagementpracticesandrestorationstrategies,butitwillalsohelptoidentifytheneedforvariousfinancinginstruments,aswellastheroleandresponsibilityofvariouslevelsofgovernment,andthemostappropriaterevenuegeneratingtools.AdoptagreenInfrastructureapproach.Atitscore,thedevelopmentandimplementationoftheSchuylkillActionNetworkwasthelogicalnextstepintheregion’swatershedprotectionefforts.Resourceexpertshavebeeninsistingforyearsthatcommunitiesmustembraceamorecomprehensiveapproachtowatershedprotection,therebyincorporatingcriticalissuessuchasdrinkingwaterqualityandquantitythroughtheprotectionofsourcewaterresources,wetweathermanagement,andwaterqualityprograms.Fromanefficiencypointofview,thistypeofcomprehensiveapproachmakessensebecauseitoffersastructureforaddressingmultiplecommunityprioritiestherebyreducingimplementationcosts,andincreasingthereturnonthecommunity’sinvestment.However,waterresourceprotectionisinmanywaysjustthefirststep.Thenextstepisforcommunitiestoincorporateenvironmentalprograms,initiatives,andgoalsintoaunifyinggreenornaturalinfrastructureplan.Byadoptingagreeninfrastructureapproach,theNetworkwouldprovidecommunityleaderswithaveryeffectivetoolforcoordinatingnaturalresourceprotectionefforts,therebyincreasingreturnoninvestment.Inshort,agreeninfrastructureapproachwouldprovidetheNetworkleadershipwithaveryeffectiveimplementationandorganizationalstrategy.Agreeninfrastructureframeworkcanhelpcoordinateandincorporateabroaderarrayofcommunityprioritiesandprograms.Forexample,amajorthreattowaterresourcesintheSchuylkillRiverwatershedisdirectlyrelatedtoagriculturalbestmanagementpractices.However,anequallythreateningsituationrelatestothelossoffarmlandwithintheregion.Implementingaggressivewaterqualitybestmanagementpracticescanbeindirectconflictwithtryingtoreducepressureonfarmerstherebykeepinglandinagriculturalproduction.Iffarmlandislostanddeveloped,communitiesfaceevengreaterwaterqualitythreats.Withagreeninfrastructureapproach,theroleofworkinglandsisincorporatedintoregionaldecision‐makingefforts.Greeninfrastructureplanningcanarticulatetheroleofworkinglandsintheregionallandscape.Asaresult,localleaderscandevelopmoreeffectivelandmanagementtoolsthatworktoprotectcriticalresourcelands,therebyaccomplishingmultiplecommunityobjectives.Theactualon‐the‐groundactivitiesmaynotbeanydifferent,butitreducesinherentconflictsandprovidesaframeworkformoreeffectiveutilizationoflimitedfiscalresources.Thereareotherpotentialbarriersfacingtherestorationeffortthatcouldberesolvedwithabroadergreeninfrastructureapproach.OneofthestrengthsoftheNetworkeffortisthatithighlightstheconnectivityofawatershed.Whathappensupstreamhasrealdownstreamimpact.

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Therefore,everyonehasaroletoplayintheoutcome.Thisisespeciallytruewhenconsideringdrinkingwaterprotection.Thosecommunitiesthatrelyonclearrawwaterfordrinkingwaterneedsareveryconcerned,orshouldbeconcerned,aboutwhathappensupstream.However,whenconsideringdrinkingwater,upstreamendsattheintakepipe.IntheSchuylkillRiverwatershed,thereisverylittleincentive,inrespectstodrinkingwaterprotection,forleaderswithinthecityofPhiladelphiatofundaggressivestormwaterandwaterqualityprograms.Ifthebenefitsoftheseactionsareentirelydownstreamofwaterintakes,therewillbelittleincentivetospendlimitedfiscalresourcesonthoseactivities.Thisnotonlyimpactsdownstreamwaterqualityissues;italsoimpactsothercommunitypriorities.Forexample,manystormwaterbestmanagementpracticeshavepositiveimpactsontheamountoftrashincitystreetsandwaterways,urbanheatislandeffects,andlocalqualityoflifeissues.Ifprogramsfocusexclusivelyonwatershedsandsourcewaterprotection,theopportunitytoleverageavarietyofcommunityprioritiescouldbelost.Agreeninfrastructureapproachcreateslinkagesamongenvironmentalandnaturalresourceprotectionprioritiesandbetweenruralandurbancommunities.Ithasalsobeenshowntoreducethecostsassociatedwithmajorstormwaterandcombinedseweroverflowmanagementefforts.TheLowImpactDevelopmentCenter,onbehalfoftheNaturalResourceDefenseCouncil,recentlyproducedareportcalledRooftopstoRivers,whichhighlightedthefiscalbenefitsofurbangreen

infrastructureprograms.54ImplementingthetypesofprogramshighlightedinthisreportwillprobablynothaveadirectimpactondrinkingwaterresourcesintheSchuylkillwatershed,buttheywillimpactwaterresources,thequalityofhabitatareas,energyneeds,andthedevelopmentoflivablecommunities.Bytakingabroadergreeninfrastructureapproach,theNetworkcanleveragesignificantresourcesandaccomplishmultiplecommunitypriorities.Theresultisincreasedefficiency,andagreaterreturnoninvestment.Expandcommunityparticipationandengagement.Effectivefinancingstrategiesincorporatemultiplefinancingsources,instruments,andinstitutionsinawaythatallowsforsustainable,long‐termimplementation.Thereisno“silverbullet”solutionforimplementation.Itwillrequiretheparticipationandcommitmentofeachcitizeninthebasinandeffectivecoordinationamongcommunities,institutions,andstakeholdersthroughouttheregion.Inmanyways,thisisthegreatestassetoftheNetwork.Itprovidesastructureforparticipationmissingfromotherlarge‐scalecommunityrestorationefforts.Successfulimplementationrequirestheparticipationoftheentirecommunityandtheintegrationofmultipleinstitutions,organizations,andplanningefforts.Perhapsnoissueismorepoliticallychargedthanthatofmoneyandtheinvestmentofscarcefiscalresources.Therefore,financingstrategiesrequireacommunity‐basedapproach,incorporatingallrelevantstakeholdergroupsintotheprocess.AstrengthoftheSchuylkillActionNetworkisthatitbringstogethermultiplestakeholdergroupsinanintegrated,cohesiveway.Thisisanextremelyimportantfirststepinprotectingandrestoringwaterresourcesbecauseitfocusedontheroleofcommunityintheprocess.Conveneastate‐levelimplementationtaskforce.Protectingandrestoringwaterresourcesis,orshouldbe,acommunitypriority,andsuccesswilleventuallyrequirethecommitmentofelectedofficialsandlocalleadershipatthehighestlevels.TheNetworkhasdoneaveryeffectivejobofengagingcitizenactivistgroups,environmentalorganizations,andstateandfederalregulatoryandagencypartners.However,itisnotcleartheNetworkhasbeensuccessfulengagingandleveragingtheparticipationofelectedofficials,bothatthestateandlocallevel.Bottom‐upcitizen‐basedeffortsaremostsuccessfulwhenthereisaconcertedefforttoengageleadershipfromtheverybeginningoftheprocess.ItiscriticalthattheNetworkcontinuetoengagestateandlocalelectedofficialsandworktohavetheirendorsementoftheprocess.Fromafinancingperspective,successwillrequiretheseveryleaderstomakeanumberofcriticaldifficultdecisionsrelatedtorevenue

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andfinancing.Iftheseleadershavenotbeenengagedthroughouttheprocess,thereislesschancethatthenecessaryresourceswillbededicated.Focusonstormwatermanagementandlandusepolicy.Asthesourcewaterassessmentindicates,thegreatestthreattowaterresourcesthroughouttheregionisinadequatestormwaterandwetweathermanagementprograms.Duetorapidpopulationgrowthandlandconversion,stormwaterisbecomingexponentiallymoredifficultandexpensivetomanage.CompoundingDevelopaSchuylkillRiverWatershedTrust.TherearethreekeyareasoffinancingcapacitythatmustbeaddressedfortheNetwork’sgoals,andthecommunity’sgoals,toberealized.Theremustbesufficient,dedicatedrevenuesources;theremustbetheappropriateinstitutionstoinvestthoseresources;andtheremustbeaconcertedefforttoinvestthoseresourcesinawaythatwillreducecosts,improveefficiency,andultimatelymaximizethecommunity’sreturnoninvestment.Addressingthesefinancingprioritiesandcapacityissueswillcontinuetobetheresponsibilityoftheexistinglocal,state,federal,andprivatefinancinginstitutions.However,therearesignificantfinancinggapsthatmustbeaddressed.TheEnvironmentalFinanceCenterrecommendsthattheNetworkleadanefforttodevelopaSchuylkillRiverWatershedTrust(theTrust).ThepurposeoftheTrustwouldbetofinancegreeninfrastructureandwaterresourceprotectionandrestorationprojectsacrossthewatershed.Essentially,theroleoftheTrustwouldbetofinancetheimplementationoftheNetwork’sgoals,strategies,andrecommendedbestmanagementpractices.ThefollowingsectionprovidesafewbriefideasandrecommendationsaddressinghowtheTrustmightbecapitalizedandgoverned,aswellasapotentialframeworkfordecision‐makinganddevelopinginvestmentpriorities.CapitalizingtheTrust.OurrecommendationisthattheTrustbecapitalizedbyattachingafeetoeverywaterextractorandeverywaterdischargerinthewatershed.ThismeansthatnotonlywillindustrydischargersandextractorspayintotheTrust,butalsoeveryresidentialdrinkingwaterandwastewaterratepayerintheregion.Protectingnaturalresources,especiallywaterresources,issomethingthatbenefitsandimpactseverycitizeninthewatershed,whetherupstreamordownstream.Everybodymustpayinordertosolvetheproblem.Ifeverycitizen(includingcorporatecitizens)inthebasinparticipates,theTrustwouldbecapitalizedwithtensofmillionsofdollarsperyear.TheroleoftheTrust.TheTrust’srolewouldbetoinvestinthemostefficient,costeffectivestrategiesforprotectingtheregion’swaterresourcesandgreeninfrastructure.TheTrustshouldhaveeitherthecapacitytosecuretherevenuetofundinnovativecapitalinfrastructureprojects,oritshouldbedevelopedtoworkinpartnershipwithotherfinancinginstitutionssuchasPennVestandlocalwaterandwastewaterauthorities.Thegoalshouldnotbetoreplacelocalandstatefinancinginstitutions,buttoexpandthecapacityofcommunitiestofundandfinancecriticalprogramandprojects.Potentialgovernancestructure.Thereareanumberofdifferentapproachesandframeworksfor

developinganinstitutionliketheTrust.55However,thereareafewcriticalissuesthatmustbeaddressedwhenconsideringhowtheorganizationwouldbegoverned.First,theinstitutionshouldbecharteredorsanctionedbythestate.Theendorsementandleadershipofstateofficialsatthehighestlevelswillbecritical.Withoutit,theTrustwouldnothavethecapacitytoeffectivelyfulfillafinancingroleintheregion.AgoodexampleofthistypeofrelationshipistheChesapeakeBayTrust

inMaryland.56ThoughtheTrustwouldbechargedwithfinancingwaterresourceprograms,itwouldnotnecessarilyneedtobeauthorizedtoserveasafinancingauthority.TheTrustcouldfunctionmuchlikeMaryland’sChesapeakeRestorationFundprogram,wherefeesarecollectedby

existingauthoritiesandfinancinginstitutions.57

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TheadvantagesofdevelopingtheSchuylkillWatershedTrust.Ultimately,thepurposeofaregionalfinancingentityliketheproposedTrustistoimprovethecapacityoflocalandstatefinancingeffortsbyfillingcriticalfinancinginstitutionalgaps.OneofthemostsignificantofthesegapsinPennsylvaniaresultsfromthemunicipalgovernancestructure.IntheSchuylkillwatershedalonetherearedozensofincorporatedmunicipalities,eachwiththeirownpriorities,levelsofcapacity,andlawsandregulations.Asaresult,restorationandprotectioneffortsareoftenscatteredanduncoordinated.Inaddition,thereareextraordinarylossesofefficiencywhenfinancingcannotbeimplementedonaregionalorunifiedbasis.TheSchuylkillWatershedTrustwouldhavethecapacitytocoordinatemunicipalandstatefinancingeffortsandapplyfiscalresourceswheretheyarecriticallyneeded,regardlessofgeopoliticalboundaries.Otheradvantagesinclude:1. Thefundswouldfocusonthemostintractable,difficultfinancingissuessuchaslandprotection,

AMD,andwildcatsewersystems.Ineffect,theTrustwouldfillacriticalinstitutionalgapwithinthewatershed;and,

2. ThefundsgeneratedandinvestedbytheTrustwouldresultinpotentiallysignificantcostsavingstocommunitiesthroughoutthewatershedasaresultofreducingtheneedforsignificantinfrastructureupgrades.

Potentialbarriersandchallenges.EstablishingtheTrustwouldrequireasignificantamountofcoordinationandovercomingsignificantimplementationbarriers.Forexample,politicalresistancewouldmostlikelybesignificant,especiallyfromthedrinkingwaterandwastewatersystems.Itisverydifficulttoimposeandimplementsignificantfee‐basedprogramsforanypurpose,waterresourceprotectionbeingnoexception.ThefactthattheTrustwouldbecapitalizedthroughmultiplewatersystemswouldrequireevenmorepoliticalactionandenergy.Implementingaprogramlikethiswithinmultipleinstitutionswillbedifficult,andmayactuallyrequirestatelegislationandparticipation.Finally,theTrustwouldneedtobeestablishedasanindependentinstitution.However,itmaybenecessarytofinancebestmanagementpracticesatpublicinstitutions.Thiswillalmostcertainlypresentanumberoflegalissuesandbarriersthatwillneedtobeaddressed.Tohelpmeetthesechallenges,itisourrecommendationthattheNetworkleadeffortstodevelopastrategyforimplementingtheTrust.Thefirststepwouldbetoconveneataskforce,asrecommendedabove,andhavethetaskforcebeginitsworkbyconductingafeasibilitystudyforimplementingtheTrustconcept.Again,thetaskforceshouldbeendorsedandsupportedbyalllevelsofgovernment,anditshouldfocusonoutliningtheappropriatestructure,decision‐makingcriteria,legalbarriers,andorganizationalmission.

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Attachment23.AnOunceofPrevention—ProtectingNaturalSystemsClean water is vital to all life, but especially important to human life and well‐being. Healthywatershedsprovidecleanwater,cleanerair,richsoils,minimizationandmitigationofflooding,andprovide opportunities for recreation, food and jobs. The best solution for preventing pollutionimpairmentsinhealthywatershedsistoprotectthemfromdegradation,whichoftenresultsfrom

poorlandusedecisionsandalackofconservation.16

Maintainingthehealthofourwaterscanhelpminimizecostsassociatedwithflooding.Forests,whetheruplandoralongsidestreams,reducetherateatwhichstormwaterrunsoffthelandandallowsrainwatertoslowlyinfiltrate,providingsubstantialgroundwaterrechargeopportunitywhile

reducingerosiononthelandscapeaswellaswithinstreamchannels.4Protectinghealthywatershedsalsohelpstopromoterecreationandtourism.AstudycompletedbytheOutdoorIndustryFoundationin2003foundthatoutdoorrecreationgenerated$88billioninstateandfederaltaxrevenue,providedapproximately6.5millionjobs,andcontributed$730billionannually

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Attachment24.TruckeeMeadowsWaterFund

TMWABenefitThisprojectsatisfiestheTRFGrantPrioritiesIIthroughVI–WatershedImprovements,LocalStormwaterImprovement,Re‐VegetationProjects,RehabilitationofLocalTributaryCreeksandStewardshipandEnvironmentalAwareness.Theprojectmeetsmultipleobjectives.Specifically,itwillimplementawaterinfiltrationsystemtofilterthewaterbeforeitentersbackintothecreekchannel;removenoxiousweedsalongthecreekbankandre‐vegetatetheareawithnativeanddroughttolerantplantstohelpwithsoilstabilizationanderosion;ispartofamulti‐phasedrestorationprojecttore‐channelizeTroutCreekneartheUnionPacificRailroad;andincludesaninterpretivekioskattheTroutCreekPocketParktoeducateyouthandadultsabouttherestorationeffortsforTroutCreek.Project:JohnsonCanyonWestsideRestoration–ConstructionImplementationOrganization:TruckeeRiverWatershedCouncil(TRWC)AmountRequested:$67,000AmountRecommended:$67,000OrganizationalMatch:$79,000(Cash) $6,000(In‐Kind)ProjectDescription:

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Thewatershedassessmentdescribesthegeomorphicandhydrologicprocessesinthewatershedandhowhumanactionshaveinterruptedthesefunctions.Fromthatscientificandtechnicalbasis,theassessmentidentifiedareasoferosionandimpactedfunctionwithinthewatershed.Preliminaryrestorationactionsandprojectconceptswerederivedfromtheassessment,includingbenefitsandgains,impactstothedrainagenetwork,sedimentproduction,relativecost,andprojectsequencing.Theroadnetworkisthesinglelargesterosiontriggerforsedimentyieldandhydrologicmodification.Withinthewesternportionofthewatershed,theassessmentidentifiesoveradozenhighprioritysites.ThesesitesarelocatedonpropertyownedbytheTruckeeDonnerLandTrust(TDLT)andUSForestService(USFS).TRWCispartneringwiththeseorganizationstocompletetherestoration.TMWABenefit:ThisprojectsupportsTRFsGrantPrioritiesIIandVIII–WatershedImprovementsandLeverageStakeholderAssetsandParticipation.ThisprojectwillreducesedimentationbyeliminatingerosionsourcesinJohnsonCanyonandTRWCwillpartnerwiththeTruckeeDonnerLandTrustandUSForestServicetocompletetherestoration.TRUCKEERIVERFUNDGRANTPRIORITIESBasedupontheaforementioneddiscussion,TMWArecommendsthattheAdvisorsgivepreferencetowell‐preparedandthoughtoutgrantrequestsforprojectsandprogramsthatmitigatesubstantialthreatstowaterqualityandthewatershed,particularlythosethreatsupstreamornearbytreatmentandhydroelectricplantintakes:AquaticInvasiveSpecies(AIS):Projects/ProgramsthatsupportthepreventionorcontrolofaquaticinvasivespeciesinthemainstreamTruckeeRiver,LakeTahoe,othertributariesandwaterbodiesintheTruckeeRiversystem.WatershedImprovements:Projectsthatreduceerosionorsediment,suspendedsolids,orTDSdischargestotheRiver.Projectsorprogramsthatarelocatedwithin303d(impairedwaters)sectionsoftheRivershouldbeconsidered,bothinCaliforniaandNevada.Innovativetechniquesshouldbeencouraged.

TRUCKEEMEADOWSWATERAUTHORITY(TMWA)RESOLUTIONNO.240ARESOLUTIONAPPROVINGPROJECTSFORFUNDINGUNDERTHETRUCKEERIVERFUNDWHEREAS,theTruckeeMeadowsWaterAuthorityandtheCommunityFoundationofWesternNevada(the"CommunityFoundation"),aNevadanon‐profitcorporation,haveenteredintoanagreementcreatingTheTruckeeRiverFund(the“Fund”)tofosterprojectsthatprotectandenhancewaterqualityorwaterresourcesoftheTruckeeRiver,oritswatershed;WHEREAS,pursuanttotheFundAgreement,anAdvisoryCommitteehassolicitedproposalsfromprospectivebeneficiariesoftheFund;WHEREAS,theAdvisoryCommitteehasrecommendedprojectsforfunding,aslistedonExhibitA;WHEREAS,theAdvisoryCommitteehastheresponsibilityofsecuringpreliminaryapprovalforprojectsfromtheTMWABoard,whichmaydisapproveprojectsforanyreason,ormayapproveprojectsbyresolution,subjecttoCommunityFoundationBoardapproval;I.WHEREAS,theCommunityFoundationhasadvisedtheAdvisoryCommitteethattheprojects’applicantsareeligiblebeneficiariesoftheFund;

II.WHEREAS,theBoardhasreviewedtherecommendationoftheAdvisoryCommitteeandhasfoundthattheprojectsaslistedonExhibitAareconsistentwiththepurposesoftheFundandmeritsfunding;

III.NOWTHEREFORE,BEITRESOLVEDBoardofDirectorsoftheTruckeeMeadowsWaterAuthority:

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IV.TheprojectssetforthonExhibitAareapprovedforfundingundertheTruckeeRiverFundintheamountsetforthinsuchExhibit,subjecttofinalauthorizationbytheCommunityFoundationBoard,andsubjecttotheprovisionsoftheFundAgreement,includingwithoutlimitationtherequirementssetforthinArticleVC.

TRUCKEEMEADOWSWATERAUTHORITY‐TRUCKEERIVERFUNDAGREEMENTThisTruckeeMeadowsWaterAuthorityTruckeeRiverFundAgreement(the"Agreement")isenteredintobetweenTruckeeMeadowsWaterAuthority,ajointpowersauthorityunderthelawsoftheStateofNevada(the"TMWA"),andtheCommunityFoundationofWesternNevada(the"CommunityFoundation"),aNevadanon‐profitcorporation.

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CREATIONOFFUNDTheDonorandtheCommunityFoundationherebycreateTheTruckeeRiverFund(the"Fund").TheFundisestablishedasacomponentpartoftheCommunityFoundationunderSection1.170A‐9(e)(11)oftheTreasuryRegulations.TMWAandtheCommunityFoundationagreethatnothinginthisAgreementistoaffectthestatusoftheCommunityFoundationasanorganization(a}thatisdescribedinSection501{c)(3)oftheInternalRevenueCodeof1986,asamended(the"Code")and(b)thatisnotaprivatefoundationwithinthemeaningofSection509(a)oftheCode.ThisAgreementistobeinterpretedinamannerconsistentwiththeprecedingprovisionsandinconformancewritetherequirementsoftheCodeandTreasuryRegulationsfor"componentparts"or"componentfunds"ofa"communitytrust,"asthosetermsaredefinedorusedinSections1.170A‐9(e)(10)and1.170A‐9(e)(11)oftheTreasuryRegulations.IIFUNDASSETSA. DescriptionofFundAssets.TMWAhastransferredorwilltransfer.totheFundaninitialcontributionofThreeHundredFortyThousandDollars($340,000.00)incash.InadditiontothepropertyinitiallytransferredtotheFund,theCommunityFoundationmayacceptadditionalpropertytransferredtotheFundbyTMWAorbywayofgift,grant,contribution,bequest,ordevisefromanypersonorentity.However,theCommunityFoundationmaynotreceiveoracceptanypropertythatisrequiredtobeadministeredinamannerthattheBoardofDirectorsoftheCommunityFoundation(the"FoundationBoard")determines,intheFoundationBoard'sdiscretion,(1) exemptfromfederalincometaxationunderSection501(c)(3)oftheCode,and(2)classifiedasorganizationsdescribedinSection509(a)(1),Section509(a)(2},orSection509(a)(3)oftheCode.A. GovernmentalEntities.TheCharitableBeneficiariesalsoincludestatesoftheUnitedStatesofAmerica,anyoftheirpoliticalsubdivisions,theUnitedStatesofAmerica,andtheDistrictofColumbia,butonlyifdistributionstosuchgovernmentalentitiesaremadeexclusivelyforpublicpurposes.B. VariancePower.TheFundisprotectedfromobsolescenceinwill(1)jeopardizethefederaltaxexemptstatusoftheCommunityFoundationunderSection501(c)(3)oftheCode,or(2)resultintheCommunityFoundationbeingclassifiedasa"privatefoundation"underSection509(a)oftheCode.AlloftheassetsoftheFundaretobeheld,managed,invested,andreinvested,andalloftheincomeandprincipaloftheFundistobecollectedanddisbursed,exclusivelyforthecharitableusesandpurposesdescribedhereinincompliancewiththeCommunityFoundation'sArticlesofIncorporationandBylaws,whichareincorporatedhereinbyreferenceandconclusivelyassentedtoandadoptedaspartofthegoverninginstrumentsoftheFund.C. ContingencyforTransfers.AiltransferstotheFundbyTMWAoranyotherdonorarecontingentupontheCommunityFoundationbeingclassifiedonthedateofthetransferasanorganization(1)thatisdescribedinSection501(c)(3)oftheCodeand(2)thatisnota"privatefoundation"asdefinedinSection509(a)oftheCode.UnlessthecontingencyiswaivedbyTMWAorotherdonor,theCommunityFoundationmustreturnthepropertytransferredtoitwithinthirty(30)daysafterthetransfer.·mPURPOSESOFFUNDTheFundiscreatedandmustbeoperatedexclusivelyforoneormoreoftheexemptpurposesspecifiedinSection501(c)(3)oftheCodeandthecasesandregulationsthereunder.TheprimarypurposeoftheFundistodistributethenetincomeandprincipaloftheFundforsuchexemptpurposesasrecommendedbytheAdvisoryCommittee(asdefinedbelow),consentedtobytheBoardofDirectorsofTMWA(the‘TMWABoard"),andapprovedbytheFoundationBoardsubject

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toArticleIV,totheorganizationsandgovernmentalentitiesdescribedinparagraphsAandBbelowthatareundertakinglawfulprojectsconsistentwiththepurposesandusesoftheFund.Specifically,theFundshallbeusedexclusivelyforprojectsthatprotectandenhancewaterqualityorwaterresourcesoftheTruckeeRiver,oritswatershed.ForpurposesofthisAgreement,theorganizationsandgovernmentalentitiesdescribedinparagraphsAnandBbelowarereferredtocollectivelyasthe"CharitableBeneficiaries"andindividuallyasthe"CharitableBeneficiary."ADMINISTRATIONA GeneralPowersandDutiesofAdministration.TheFundistobeadministeredasacomponentpartoftheCommunityFoundationandissubjecttoallofitsgoverninginstruments,including,butnotnecessarilylimitedto,theArticlesofincorporationandBylaws,andthepoliciesandproceduresestablishedbytheFoundationBoardfromtimetotime.TheCommunityFoundationistoberesponsibleforthepreparationandfilingofallincometaxreturnsandotherlegalandfinancialreportsfortheFundthatarerequiredbytheinternalRevenueService,theStateofNevada,andanyothergovernmentalagencies.B. AdvisoryCommittee.TheFundistobeadministeredbyanadvisorycommittee("AdvisoryCommittee)"comprisedofatotalofnine(9)members,consistingofthree(3)membersselectedbyeachoftheCityofReno,theCityofSparksandWashoeCounty.NoneofthemembersoftheAdvisoryCommitteemaybeelectedofficials.ThemembersoftheAdvisoryCommitteeshallserveatthepleasureoftheirrespectivelocalgovernments.TheAdvisoryCommitteeshallhavetheauthoritytoexpendupto$25,000fromtheFund,cumulativeeachfiscalyear,foradministrativepurposes.Forallotherexpenditures,theAdvisoryCommitteeshallberequiredtoadheretotheProjectFundingProtocolssetforthinsubpartCofthisArticleIV.TheAdvisoryCommitteeshallmakerecommendationstotheTMWABoardandtheFoundationBoardregarding{1)distributionsofincomeandprincipalfromtheFundtopotentialCharitableBeneficiaries,(2)theinvestmentsoftheFund,and(3)anyotheraspectsoftheadministrationoftheFundandtheCommunityFoundationconsideredappropriatebytheAdvisoryCommittee.AlldistributionsofincomeandprincipalfromtheFundmustbeexclusivelyfortheexemptpurposesdescribedinArticleIllabove,andtheFundmustbeorganizedandoperatedexclusivelyfortheexemptpurposesdescribedtherein.TherecommendationsoftheAdvisoryCommitteetotheTMWABoard,andtheFoundationBoard,aresolely .recommendations,andtherecommendationsmaybeacceptedorrejected,inwholeorinpart,bytheTMWABoardandtheFoundationBoardintheirsoleandabsolutediscretion.C. ProjectFundingProtocols.TheAdvisoryCommitteeshalladheretothefollowingproceduresandrequirementsinmakingitsrecommendationsforprojectfundingtotheTMWABoardandtheFoundationBoard:accordancewiththeprovisionsspecifiedintheArticlesofIncorporationandBylawsoftheCommunityFoundation.ShouldtheprimarypurposesforwhichtheFundiscreated?becomeobsoleteorincapableoffulfillment,thentheFoundationBoardshallconsultwiththeTMWABoardconcerningdistributionoftheremainingassetsoftheFundtoCharitableBeneficiariesforusesandpurposesthatareassimilaraspossibletotheprimarypurposessetforthinthisAgreement.prospectiveCharitableBeneficiariesoftheFund.2. TheAdvisoryCommitteeshallidentifyandselectpotentialprojectsforfunding.3. TheAdvisoryCommitteeshallberesponsibleforensuringthattherecommendationssubmittedtotheTMWABoardandtheFoundationBoardareincompliancewiththeexclusivepurposesoftheFundandtheCommunityFoundation’spolicies.4. TheAdvisoryCommitteeshallhavetheresponsibilityofsecuringpreliminaryapprovalfromtheTMWABoard,whichmaydisapproveprojectsforanyreason,ormayapproveprojectsby

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resolution,subjecttoFoundationBoardapproval.Thereafter,theAdvisoryCommitteeshallhavetheresponsibilityofseeingfinal ·approvalfromtheFoundationBoard,whichmaydisapproveaprojectorprospectiveCharitableBeneficiaryif,inthe‐Foundation Board'sopinion,suchprojectorprospectiveCharitableBeneficiarymayjeopardizethestatusoftheCommunityFoundationasataxexemptentity,orwhichmayresultinitsclassificationasa"privatefoundation.”.D. AdministrativeFees.TheFundistopayquarterlyadministrativefeestotheCommunityFoundationfortheadministration,distribution,andinvestmentmanagementoftheFund.ThequarterlyadministrativefeefortheFundistobeestablishedbytheFoundationwiththeconsentoftheTMWABoard.Theadministrativefeeforeachcalendarquarteristobepaidinthefirstmonthofthene>.‐tcalendarquarterbyautomaticdeductionfromtheassetsoftheFund.TheFoundationBoardmayinitsdiscretionperiodicallyreviewandrevisetheamountofadministrativefeesTobechargedtotheFundtoensurethattheadministrativefeesareatalltimesreasonableandproper.However,theadministrativefeeschargedtotheFundmustnotbegreaterthantheamountoffeeschargedtoothercomponentfundsoftheCommunityFoundationthatareofcomparablesize.TheCommunityFoundationmustnotifyTMWAandtheAdvisoryCommitteeofTheAdvisoryCommitteeshallacceptproposalsforprojectsfromAccountings.TheCommunityFoundationmustrenderaccountingsfortheFundtoTMWAandthemembersoftheAdvisoryCommitteeatleastannually.UnlessanypersontowhomanaccountingisrequiredtoberendereddeliversawrittenobjectiontotheFoundationBoardwithinso.1y(60)daysafterreceiptoftheaccounting,theaccountingistobefinalandconclusivewithrespecttoalltransactionsdisclosedintheaccounting.Aftersettlementoftheaccountingbytheagreementofthepartiesobjectingtoit,orbyexpirationofthesixty(60)dayperiod,theCommunityFoundationwillnolongerbeliablewithrespecttoalltransactionsdisclosedintheaccounting,exceptforanyintentionalwrongdoingorfraudcommittedbyanyoftheemployees,agents,representatives,orboardmembersoftheCommunityFoundation.VDISTRIBUTIONSOFINCOMEANDPRINCIPALA. MinimumAnnualDistributions.DuringeachtaxableyearoftheCommunityFoundation,andsubjecttotheprovisionsofarticle!IIabove,theCommunityyFoundation,subjecttotheproceduressetforthherein,mustdistributefromtheFundtoorforthebenefitofone(1)ormoreCharitableBeneficiariesasdeterminedabovetheminimumamountrequiredbythegoverninginstrumentsoftheCommunityFoundationandbytheCodeandTreasuryRegulationstomaintaintheCommunityFoundationasanorganization(1)thatisdescribedinSection501(c)(3)oftheCodeand(2)thatisnota"privatefoundation"withinthemeaningofSection509(a)oftheCode.TheminimumdistributionsrequiredtobemadeduringeachtaxableyearpursuanttothisparagraphAarehereafterreferredtoasthe"MinimumAnnualDistributions."8. DiscretionaryAnnualDistributions.DuringeachtaxableyearoftheFund,theCommunityFoundation,subjecttotheproceduressetforthherein,mayalsomakedistributionsfromnetincomeandprincipaloftheFundinexcessoftheMinimumAnnualDistributionstoorforthebenefitofone(1)ormoreCharitableBeneficiariesasdeterminedinaccordancewithArticleIVabove.However,theaggregateamountofdistributionsmadebytheCommunityFoundationpursuanttoparagraphsAandBofthisarticleVduringanytaxableyearoftheCommunityFoundationmaynotexceedthegreaterof(a)theMinimumAnnualDistributionsor(b)thesumoftheamountsdescribedinsubparagraphs8.1,B.2,andB.3below.1. Tenpercent(10%)oftheaggregatefairmarketvalueoftheFund,determinedasofthefirstdayofthetaxableyear;2. TheaggregatefairmarketvalueofcontributionsmadetotheFundduringthetaxableyear;plus3. ThenetincomegeneratedbytheFuNDforthetaxableyear.

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ForpurposesofdeterminingthefairmarketvalueoftheprincipalandcontributionstotheFundpursuanttothisparagraph8,theFoundationBoardmayutilizeanycommonlyacceptedvaluationmethod,solongassuchmethodisconsistentlyapplied.AnynetincomenotdistributedpursuanttoparagraphsAandBofthisArticleVistobeaccumulatedandaddedtoprincipal.C. FundDistributionRequirements.TomaintaineligibilitytoreceivedistributionsfromtheFund,eachCharitableBeneficiarymustcomplyatalltimeswiththefollowingrequirements:1. CharitableBeneficiariesmustbeexemptfromfederalincometaxationunderSection501(c)(3)oftheCode;CharitableBeneficiariesshalluseal!Funddistributionsprojectsthatareappropriateandlegalpublicexpenditures;CharitableBeneficiariesmustprovidefinancialdetailsand/orreportsoftheirorganizationsuponrequest;CharitableBeneficiariesmustnotuseanyFunddistributionsforpoliticalcontributionsorpoliticaladvocacy;5. CharitableBeneficiariesmusteitherimplementtheprojects,activities,and/orprogramsforwhichtheyreceivedFunddistributionswithin45daysoftheendofthefiscalyearinwhichsuchdistributionsarereceived,ormustreturnallsuchdistributionstotheCommunityFoundationforthwith;6. CharitableBeneficiariesmustprovideCommunityFoundationareport!Detailingthecompletionoftheirprojects,activities,and/orprograms;and7. CharitableBeneficiariesmustsignanagreementregardintheircompliancewiththequalificationshereof.D. DispositionofFunduponTermination.UpontheterminationoftheFundpursuanttoparagraphAorBofArticleVIbelow,theFundasthenconstituted(includingbothprincipalandanyaccruedandundistributedincome)mustbedistributedinaccordanceworthParagraphCofArticleIV.TERMA. FixedTerm.ExceptasprovidedinparagraphB.below,theFundistocontinueuntil2009.B. EarlTerminationofFund.IfatanytimeduringthetermoftheFund,theFundcontainsassetswithanaggregatefairmarketvalueoflessthanTenThousandDollars{$10.000.00),andtheTMWABoarddeterminesthatcontinuedadministrationoftheFundwouldbeimpracticableorthatthecostsofadministrationwouldoutweightheanticipatedbenefitsofcontinuedadministration,thentheTMV'JABoard.mayterminatetheFundanddistributetheCommunityFoundationtheremainingassetsoftheFundprovisionsaretobegovernedbyandconstruedinaccordancewiththelawsoftheStateofNevadaasineffectfromtimetotime,andtheFundistobeadministeredinandunderthelawsoftheStateofNevada.Datedthis dayof ,2004.ChoiceofLaw.ThevalidityofthisAgreementandtheconstructionofitsGenderandNumber.AsusedinthisAgreement,themasculine,feminine,orneutergender,andthesingularorpluralnumber,aretoeachbeconsideredtoincludetheotherswheneverthecontextsoindicates.accordancewithArticleIVabove.vuMISCELLANEOUSA. CompliancewithCodeandTreasuryRegulations.TheFundmustcomplywithandistoberestrictedbytheprovisionsoftheCodeandTreasuryRegulationsthatareapplicabletoit.TheAgreementmaybeamendedfromtimetotimetocomplywiththeapplicableprovisionsoftheCodeandTreasuryRegulations.B. Amendments.ThisAgreementmaybeamendedbyaninstrumentinwritingexecutedbyamajorityofallpersonsthenservingontheAdvisoryCommitteeandbyamajorityoftheTMWA

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Board,andbyanauthorizedrepresentativeoftheCommunityFoundation.However,theAgreementmaynotbeamendedtoauthorizetheaffairsoftheFundtobeconductedinanymannerorforanypurposescontrarytotheprovisionsofSection501(c)(3)oftheCodeandtheTreasuryRegulationsthereunder.C. BindingEffect.ThisAgreementistobebindinguponandistoinuretothebenefitanddetrimentofthepartiesheretoandtheirrespectiveheirs,personalrepresentatives,successors,andassigns.

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Attachment25.PinchotFoundationWaterRatePayingRegulatoryStructuresTherearefourgovernor‐appointedcommissionsthatregulaterateadjustmentsandallowableexpendituresforrevenueraisedfromratepayersintheDelawareBasin:ThePublicUtilityCommission(PUC)inPennsylvania,theBoardofPublicUtilities(BPU)inNewJersey,thePublicServicesCommission(PSC)inDelaware,andtheNewYorkPublicServiceCommission(PSC)housedwithintheNYDepartmentofPublicService(Table5).

Regulatory Authority Governance Regulated Entities (statewide)

New Jersey Board of Public Utilities (BPU)

5 Commissioners (Chairperson, Mr. Richard Mroz), supported by professional staff. Rate requests handled by the Bureau of Rates within the Division of Water.

45 investor owned utilities

Pennsylvania Public Utility Commission (PUC)

4 Commissioners (Chairperson, Ms. Gladys Brown). PUC has Exec. Director. Rates issues recommendations made by Bureau of Technical Utility Services.

23 municipal and 61 private water utilities

New York Public Service Commission (PSC)

4 Commissioners (Chairperson, Ms. Audrey Zibelman) appointed by Governor.

277 private water companies

Delaware Public Service Commission (PSC)

5 Commissioners (Chairperson, Mr. Dallas Winslow) appointed by the Governor and supported by professional staff.

11 regulated entities

Ratechanges:ManydrinkingwaterutilitiesaroundtheUnitedStateshaveincreasedrateschargedtotheircustomersinordertocoverprotectionorrestorationeffortsintheirsourcewatersheds.Theeasewithwhichrateswereincreasedhasvarieddependingonthepoliticalandgovernancesituationineachcase.RateincreasesorfeeslikelycannotbetheonlysourceoffinancingforawaterfundintheDRB,butasdescribedabove,shouldbeseriouslyconsideredandsupported.Ratesorfeespaidbyutilitiesortheircustomersareamongthemostreliablelong‐termmethodsforfinancingwatershedprotectionandrestorationeffortsandimposeverylowcostsperuser,individualratepayer,orhousehold.Morediscussiononbasin‐wideratesorfeesisfoundunderRecommendation2;herethefocusisonissuesrelatedtochangingratesforasingleutilityorsmallgroupofutilities.

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Attachment26.UpperNeuseCleanWaterInitiativeConservationPlanPOTENTIALSOURCESOFLOCALFUNDINGInNorthCarolina,countiesandmunicipalitieshavethepowertolevytaxesthatareauthor‐sizedbytheNorthCarolinaConstitutionorstatute.Theexpenditureoffundsraisedthroughlocaltaxesisgenerallyrestrictedtopurposesenumeratedbystatute.Amongtherevenuesourcesauthorizedarebonds,propertytaxes,andlocalsalestaxes.Generalobligationbondsandpropertytaxesaretheprincipallocalrevenuesourcespermittedforlandconservationpurposes.Bondingenableslocalcommunitiestocrew‐atededicatedsourcesoffundsforlandcenser‐ovationandtoreceivematchinggrantsfromstateandfederalprograms.Whileitmayseemdifficulttogainvoterapprovalinthecurrenteconomy,locallandconservationballotmesa‐ruescontinuetoreceivestrongpublicsupport.Todate,severalwatershedcommunities—Durham,DurhamCounty,OrangeCounty,Raleigh,WakeForestandWakeCounty—havesuccessfullygarneredvoterapprovalforbondsthatincludefundingforlandconserve‐ton.InNorthCarolina,26of30(87%)landconservationmeasuresplacedontheballotsince1996wereapproved,generatingmorethan$600million,includingroughly$400millionforparksandlandconservationinthesecommunities.24Thejurisdictionsthatpassedreferendarepresentroughly25%ofthestatepopulationandthestate’slargestmetro‐politeareas.NorthCarolinacountiesandmunicipalitiescouldbeenabledbythestatetoutilizededicatedrevenuestreamsforlandconservationfromsourcesotherthangeneralobligationbonds.Thepropertytaxisthelargestrevenuesourceformanylocaljurisdictions,andtheseproceedsmaybeexpendedforparksandopenspace.Propertytaxescouldgenerateasteadysourceoffundingforlandconservationiftheycanbededicatedformultipleyears.CommunitiesintheUNRBcouldseekstatelegislationthatwouldenablethemtoadoptdedicatedopenspacetaxesandfeesatthelocallevel.Asanotheroptiontoincreasethefundsavailableforlandconservation,thesixwaterutilitiesintheUNRBcouldconsiderincorporatingdedicatedfeesforlandacquisitionasasupplementtotheirratestructure,asSaltLakeCity,Utahhasdone.Sinceitsfundwasestablishedin1991,SaltLakeCityhaspurchased400acresoflandtoprotectitsdrinkingwatersources.Raleighhasalreadysetaprecedentforwatershedprotectioninthebasin,astheRaleighCityCouncildedicated$500,000fromits2005‐2006and$500,000fromits2006‐2007water/sewerutilityrevenue(separatefromRaleigh’sgeneralfund)toexpandprotectionintheFallsLakewatershed.TheprojectincludesdevelopmentofthisConservationPlanandthemodelthatinformsit;out‐reachtolandowners,localgovernmentofficials,andthegeneralpublic;andlandprotectionthroughdonationorpurchase.POTENTIALSOURCESOFSTATEANDFEDERALFUNDINGLocalsupportersoflandconservationcouldadvocateforcontinuedstatewidefundingforlandconservation.NorthCarolinaalreadyundertakesandfundslandconservationthroughanumberofstateagenciesandpro‐grams.Fourseparateconservationtrustfundshavebeenestablishedsince1986:TheCleanWaterManagementTrustFund,NaturalHer‐imageTrustFund,ParksandRecreationTrustFund,andtheFarmlandPreservationTrustFund.Theseprogramsrepresentthebulkofstatefundingforlandandwaterprotection,aswellasparks.25In2000,theNorthCarolinaGeneralAssemblyvotedoverwhelminglyinsupportofGovernorHunt’splantopreserveonemillionacresbyDecember31,2009.TheMillionAcreInitiativewouldincreasetheper‐centageoflandpreservedinNorthCarolinafrom8.8percentto12percent;however,noadditionalmoneywasattachedtotheplanbeyondexistingfunding.In2005,severalofthestate’sleadingnon‐profitconservationorganizations,alongwithbusiness,government,andprofessionalinter‐sets,launchedtheLandforTomorrowinitial‐tie.ThecoalitionaimstosecuresupportfromthepublicandtheNorthCarolinaGeneralAssemblyfora

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LandandWaterConservationBondtoprotectland,water,andhistoricplacesthroughoutthestate.LandforTomorrowisseekingacommitmentofstatebondsin2006toincreaseconservationspendingby$200millionperyearforfiveyears.TheLandforTomorrowCoalitionrecommends$167millionperyearinadditionalfundingforthefourexistingconservationtrustfundsand$33mil‐lionperyearforanewprogramtosupportjobcreationandprotectionofhistoricresources,aswellascoordinationandplanningefforts.26

Alocalmatchisoftenrequiredtoleveragethesetypesoffunds.Increasedfundingfortheconservationtrustfundswouldallowthestatetosupportkeylandacquisitionsinthebasinandprovideadditionalmatchingfundstohelplocalcom‐munitiesmeettheirconservationgoals.Localsupportandstateleadershipareneededforthestatebondmeasuretobesuccessful.Atthefederallevel,therearetwodistincttypesoffundingforlandconservation:state‐directedprograms,inwhichstatesreceivegrantsfromthefederalgovernmentbutaregivenbroaddiscretiontoallocatefunds(sub‐jettofederalprogramrules);anddirectfeeder‐alprograms,inwhichthefederalgovernmentmakesgrantstolocalrecipients,usuallylocalgovernments.State‐directedfederalgrantsincludetheCleanWaterStateRevolvingFund,theDrinkingWaterStateRevolvingFund,andtheCleanWaterActSection319NonpointSourceGrantProgram.Directfederalpro‐gramsincludetheFarmandRanchlandPro‐sectionProgramandtheForestLegacyProgram.Additionalfederalfundsmaybeavailablethroughearmarksandgrants.

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Attachment27.DelawarePublicServiceCommissionDraftLegislation

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Attachment28.AlliancesforGreenInfrastructure

3GuidingprinciplesEmphasizethepay‐off,nottheprocess.Forexample,talkaboutcleanwaterandboatingopportunitiesinsteadofthedetailsofalandtransaction.Putpeopleinthepicture.Forexample,featurelocalfolksdoinggoodworkontheground,insteadofframingmessagesintermsoforganizationsandtechnicalgoals.Leadwiththelocal,thenconnecttotheregional.Alwaysstartwithalocalstoryandlocalcharacters,bridgingtothebiggerpictureoncethoseelementsareinplace.WATERWORDSTOUSEANDAVOIDJargonthatconfusesorpolarizes Betteralternatives

Waterquality Healthofourrivers;clean,safewatertodrink/swimin/etc.

Environment Land,airandwater(makeitaslocalaspossible)

Biodiversity,endangeredspecies Fishandwildlife,plantsandanimals(namespecificspecieswherepossible)

Regulations Safeguards.protections

Climatechangeimpacts Extremeweather,drought,floods

Ecosystemservices Cleandrinkingwater,cleanair,floodprotection,etc.

Landuseplanning Planningahead,preventingsprawl

Nonpointsourcepollution,stormwater Pollutedrunoff1

Watershed Landaroundriversandstreams,riversystemorbasin

Nutrients Excessfertilizer,pesticides,andotherchemicals

Impervioussurfaces Pavementandotherhardsurfaces

Permeablesurfaces Soilandplantsthatfilterandabsorbrainwater

Infiltration Rainpercolatingslowlyintotheground

Greeninfrastructure,bioswale,etc. Nature‐basedsolutions,raingardens,livingroofs,etc.

Riparianbuffers Streamsidespaces,stripsoftreesalongriverbanks

AgriculturalBMP’s Farmerscaringfortheirlandandwater

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1Werecognizethatstormwater,asaregulatoryterm,isessentialinlegalfilingsandformalpolicycontexts.Wesuggestavoidingtheterminpublic‐facingmaterials.MESSENGERSAcommunicationstruismholdsthatthemessengerismoreimportantthanthemessage.Wetrustpeoplewerelateto,andpeopleweperceiveasexperts.OurmediascanrevealedapreponderanceofNGOandgovernmentmessengers.Theseexpertshelpestablishthefacts,butthemostcompellingstoriesarepersonal,nottechnical.Werecommendinvestingmoretimeinidentifyingindividualsthathaveapersonalstakeinwaterqualityandconservation:farmersforthoseworkingonagriculture,suburbanmomsforthoseworkingoncleanstreamsinthesuburbs,fishersforthoseworkingatthecoast,etc.