Position Paper on Funding for Urban Best Management Practices (BMPs) Funding and Tax Incentives Adopted September 2000

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ISSUE: Extending tax credits and cost share programs now available under the Virginia Agricultural BMP program to Urban BMPs.

WHY IMPORTANT: Such tools are already being employed very effectively in Virginia's agricultural BMP program to encourage voluntary, non-regulatory enforced actions. The urban areas of the Commonwealth need to be able to use them as well. Extending tax credits and cost share programs to urban BMPs will create financial incentives to stimulate greater application of BMPs. These incentives should include a tax credit program for established urban BMPs as well as a BMP cost-share program for innovative urban BMPs.

RATIONALE: Cost-sharing opportunities provide a strong incentive for the implementation of BMP's regardless of whether the source of pollution is agricultural or urban.

1. The rapid urban growth we have been experiencing and will continue to experience has resulted in a substantial increase in impervious surfaces throughout the Commonwealth. This is putting tremendous stress on our stormwater management systems and by extension, the Chesapeake Bay and its tidal tributaries. For Soil and Water Conservation Districts, urban growth creates additional challenges that are not currently addressed through existing erosion and sediment control, and nutrient and stormwater management programs.

2· Continuing Virginia's tradition of voluntary approaches to meeting legal and regulatory nutrient reduction requirements will become far more difficult, if not impossible, without a good toolbox of incentives to encourage changes in public behavior in the urban arena.

3· National surveys of urban stormwater have detected in runoff more than half of the U.S. EPA's list of 126 priority pollutants that are either acutely toxic or known suspected carcinogens. About one-half dozen of these pollutants exceed safe levels for aquatic life in some of the samples taken. Heavy metals such as copper, lead and zinc are the most prevalent priority pollutant constituents found in urban runoff. Oil and grease, which contain a variety of hydrocarbon compounds, are also commonly found.

4. Home lawns now spread across more than 500,000 acres of the Chesapeake Bay watershed and vast amounts of fertilizers and pesticides are being applied by homeowners with no training in proper application techniques. The result is that substantially increased levels of nitrogen, phosphorus and other chemicals are being found in stormwater run-off and ending up in Virginia waterways.

5· Without financial incentives to demonstrate urban BMPs, the cost of installing and maintaining an urban BMP becomes a major disincentive to someone considering doing so on a voluntary basis.

Financial examples
BMP maintenance costs can be divided into two categories: routine and non-routine. Routine costs usually range from four percent of original capital costs per year for a dry pond to nine percent of original capital costs per year for an infiltration trench. A general rule of thumb is that annual maintenance will run from $100 per acre for minimal maintenance including mowing to $500 per acre for more intensive maintenance including mowing, weed control, fertilization, debris removal and the like.

The primary non-routine BMP maintenance costs are for sediment/pollutant removal and BMP renovation or reconstruction. One of the larger fixed costs in dredging a BMP facility is mobilization and demobilization of the machinery. Large wet ponds will often require a waterborne operation costing about $10,000. For smaller ponds or large ponds that can be drained or dredged from the shore, the cost will range between $1,000 and $7,000. Dredging, assuming a sediment accumulation of six inches, will run between $12,000 - $16,000 per one-acre surface area. Disposal costs, depending on what is being disposed of, run from about $4000 per one-acre surface area to as much as $38,000 per one-acre surface area.

6. Non-conventional and innovative BMPs, which include porous pavement, underground detention tanks and water quality inlets; and nonstructural BMPs including ideas such as grassed swales, street cleaning, and fertilizer application control education programs have the potential to contribute significantly to the goal of meeting and maintaining Virginia nutrient reduction goals.

7. In addition, we regularly use a state-adopted manual of Agricultural Best Management Practices yet no similar document exists as a reference for Urban Best Management Practices. There are several good manuals being used on a regional basis already that could serve as models for a state manual; or they could be endorsed by the Commonwealth as reference material.

8. The Chesapeake 2000 Agreement has, as one of its charges, a requirement by 2002 to work with local governments to encourage the development and implementation of urban stormwater retrofit practices to improve their water quantity and quality function.

9. By 2010, the Virginia goal is to correct the nutrient and sediment related problems in the Chesapeake Bay and its tidal tributaries sufficiently to remove the Bay and the tidal portions of its tributaries from the list of impaired waters under the Clean Water Act.

10. Providing financial incentives for Urban BMPs will continue Virginia's tradition of a voluntary vs. regulatory approach and will help us significantly in our efforts to meet and maintain the Chesapeake 2000 goals and state-wide goals.

LEGISLATIVE ACTION PENDING:
During the last session of the General Assembly, Senate Joint Resolution 217 sponsored by Senator Hanger was passed requiring the Virginia Commission on Environmental Stewardship to look at the issue of incentives for urban BMPs. Senator Bolling, the new Chair of the Commission, referred the matter to the Chesapeake 2000 subcommittee for consideration. Members of that Committee are: Senator Bolling (Chair) Delegate Moss, Secretary of Natural Resources Woodley, Mr. John Daniel II, Ms. Mary Bruce Glaise, and Mr. L. Clifford Schroeder, Sr. The Committee met October 17, but did not discuss the issue. A second meeting has been scheduled for November 29 and VASWCD is slated to brief the panel on our position at that time.

VASWCD POINT OF CONTACT:
Greg Evans, Northern Virginia Soil & Water Conservation District, (703) 644-1227.  

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Virginia Association of Soil & Water Conservation Districts
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Mechanicsville, Virginia 23111
Office - (804) 559-0324
Fax - (804) 559-0325
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