Chesapeake Bay Policy Committee

Meeting Bay Program Water Quality Goals: Focus on Funding

Presented to COG Board of DirectorsSeptember 10, 2003

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Recommendations in Brief

• Actively pursue funding support– Wastewater– Urban stormwater– Agriculture

• Expand education and outreach efforts

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Presentation Outline

• Introduction – Bruce Williams

• Setting the Stage – Penelope Gross

• Funding: Wastewater & Stormwater – J Davis

• Funding: Agriculture – John Lovell

• Recommendations – Bruce Williams

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1 in 4 of the Bay watershed’s residents lives in the COG region

Section I: Setting the Stage

COG region critical to Bay Program’s success

Region’s 2000 population – 4.2 million

About 25% of the people in the Bay watershed

About 80% of the people in Potomac watershed

Region’s 2030 projected population – 6.1 million

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Consistent COG Region Support

• 1987 – Reduce nutrients by 40 %

• 1992 – Reaffirmation of 40 % goal

• 1998 – Board creates the Chesapeake Bay Policy Committee

• 2000 - C2K Agreement sets new goal

- COG Board resolution in support

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Wastewater has Led the Way

0

5

10

15

20

25

1985 2000 2003

Total nitrogen millionlbs./year

COG Region wastewater plants reduced nitrogen discharges 55 % from 1985 levels

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Fundamental C2K Commitment

“By 2010, correct the nutrient- and sediment-related problems in the Bay and its tidal tributaries sufficiently to

remove the Bay and tidal portions of its tributaries from the list of impaired waters under the Clean Water Act”

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A Long Way to Go for C2K

Graph showing 200 progress and 2010cap for N and P in COG region

TN Loads Delivered to Bay

335

285

175

500

100

200

300

400

1985 Base 2000 Progress C2K Load Allocation Pristine

mill

ion

s o

f p

ou

nd

s

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Cost of Meeting C2K

IMPLEMENTING C2K (FY 2003-2010) Source: Chesapeake Bay Commission

Projected Costs: $18.7 BProjected Income: $ 5.9 B

Funding Gap: $12.8 B or $ 1.6 B/yr

Preliminary analysis indicate significant impacts on wastewater rates, stormwater fees and farm costs

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Regulatory Program Could Raise Costs

• Framework exists for regulatory approach– Backstop for “nonregulatory” goal– TMDLs and permitting

• Permit conditions could mean much more conservative treatment plant design

• Cost-share grants may not be available for mandated requirements

• Most of $12.8 billion funding gap could become local government responsibility

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In Short

• Fight to preserve “nonregulatory” characteristics to the extent possible– Agreements rather than permit conditions; or– More flexible permit conditions

• Fight to maximize state and federal contributions

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Section II: Wastewater & Stormwater Funding

• Equity = Share funding burden among federal, state and local partners

• Success has been greatest where this has occurred

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Cooperative Funding for BNR

• BNR implementation at region’s wastewater plants was based on availability of cost-share funds

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No Cooperative Funding for Stormwater

• Little state or federal money for urban stormwater management

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State Funding Prospects

• MD has identified up to $80 million to be used for wastewater upgrades through FY 2008– 2004 budget represents an increase

• VA has funding deficit; no new funds identified

• Both states: little funding for stormwater retrofits

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Federal Funding Prospects

• Chesapeake Bay Nutrient Reduction Act– Cost share funding for wastewater plants– Lacks Congressional support

• Bay Commission proposed funding stormwater under highway funding bill– Status quo in FY 04 budget– New legislation anticipated next year

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Alternative Funding Approaches

• Chesapeake Bay Foundation has floated idea for regional authority with taxing powers

• Long Island Sound restoration program• Everglades restoration program

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In Short

• Several state & federal concepts are being considered

• COG staff is tracking progress and participating where feasible

• Anticipate specific proposals to come to the COG Board

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Section III: Agricultural Funding

• Why is it important to COG region?

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Ag Sources in COG Region

Majority of nutrients in the COG region are from wastewater and stormwater sources

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5

10

15

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Washington-area load Potential load allocation

Ag

Urban

Wastewater

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Ag Sources in Bay Watershed

BAY 2000 TN LOADSTN=285 million lbs/yr

wastewater urban stormwateragriculture forestseptic other

Ag Baywide, agriculture is

the largest source of

nutrients and sediment

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Ag Progress Critical

• Reductions from ag sector help meet equity– Reducing ag loads can be cost effective

approach

• Agriculture is a potential nutrient trading partner with urban sources– This may become increasingly important as

population continues to grow

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Ag Funding Opportunity

• Substantial state & federal funding available• 2002 Farm Bill includes provision for Bay

restoration– Authorizes up to $20 million/year for 5 years for

innovative practices• USDA has not yet implemented the program

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In Short

• New innovative agricultural programs have been authorized

• COG should support implementation

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Section IV: Recommendations

• Actively pursue federal and state funding for all sectors

• CBPC will seek Board approval to support specific proposals in the best interests of COG members – “Equity” and “Voluntary” remain key

principles

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Wastewater Funding Recommendation

• Advocate for federal and state financial assistance for wastewater plant upgrades

• Work with COG stakeholders to craft specific program provisions

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Urban Stormwater Funding Recommendation

• Advocate for stormwater financial assistance under highway funding bill

• Work with COG stakeholders (including TPB) to craft specific provisions

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Ag Funding Recommendation

• Support full funding of the Farm Bill program for the Bay

• Work with COG stakeholders to develop nutrient trading program

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Next Steps

• Move for adoption of Resolution R39-03

• Accelerate education and outreach efforts– Local government officials– Citizen groups– Note: COG’s Bay video available soon