Piorko , Dir., Div. of Watershed Stewardship, DE Dept. of Res. & Env. Control

1. Innovative Land Conservation and
Water Quality Funding in
Delaware with State Revolving
Fund Loan Programs
Frank Piorko, Director
DNREC, Division of Watershed Stewardship

2. EPA SRF
Loans Fund the Following Types of Projects:
A. Construction of municipal
wastewater treatment facility
improvements (POTW‟s).
B. Implementation of NonPoint Source (NPS) projects.
C. Development and
implementation of Estuary
Comprehensive Conservation
and Management Plans
B, and C are “Expanded
Uses”

3. Delaware SRF Loan Incentive Programs
• Designed to provide
incentives for innovative
loan structure and leverage.
• Provides for land
conservation and water
quality improvements.
• Goal is to bring together
traditional municipal loan
borrowers and water quality
project conservation
partners.

4. Delaware State Revolving Fund
Financing of Non-Traditional CWSRF Projects
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5. Land Conservation Loan Program
DDA Criteria
Property must (1) be enrolled in Delaware‟s Forestland Preservation
Program (FPP) or enrolled in the Ag Lands Preservation Program and
meet the requirements of the FPP and (2) have submitted an offer to sell
their development rights.
Requirements of the FPP are:
At least 10 (forested) acres in size
Located outside state-designated growth zone
Zoned agricultural and no major subdivision recorded for the property
Have a forest management plan prepared by a professional forester
and updated every five years
All of the woodland on the property must be included and the land
must remain forested (not cleared for cropland, structures, etc.)
Wastewater spray irrigation is permissible on the FPP parcel(s) utilizing
best available treatment technology; however, all wastewater storage and
treatment facilities must be located on lands other than the FPP
properties.

6. Delaware State Revolving Fund
Financing of Non-Traditional CWSRF Projects
• Kent County: CWSRF – Land Conservation Loan Program Project
– A Pollution Control Strategy was developed for Murderkill Watershed in Kent County to
return the impaired waters to a condition of permitted use as required by the CWA.
Due to the importance of the waste load allocation, the following projects were
undertaken with the assistance from the CWSRF program:
• Double Run Wetlands Restoration and Nutrient Reduction Project - creation of a
•
•
two acre wetland within the upper reaches of the Murderkill basin;
MeadowBrook Acres – septic elimination project; and
LCLP Project – to purchase and systematically/permanently restore 255 acres to
their natural habitat (91 acres is currently cropland). In addition, the project will
protect a riparian forest buffer of 164 acres from ever being developed and/or
destroyed.
– The CWSRF interest rate for an existing closed $7.0 million loan was adjusted down
from 3.609% to 1.0895%. This allowed the County to borrow an additional $1.0
million without increasing the annual loan debt service payments for the fee simple
land purchase and the existing wastewater loan.
– The County entered into a LCLP Sponsorship Agreement with DNREC‟s Division of Fish
and Wildlife. The agreement describes the County‟s responsibility/commitment to
systematically/permanently restoring the land parcels to their natural habitat. The
County paid DNREC a one-time $10,000 fee for perpetual monitoring and inspections
of the land parcels. All loan closing costs were paid by the County.
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7. City of Wilmington Southbridge Project
• City leveraged a $30+M loan
•
reduced rate to borrow an
additional $4+M for the
acquisition of 17 acres to be
developed as wetlands
restoration for the
Southbridge – area.
Large flood abatement
water quality project in the
City‟s flood prone Christina
River section of the City.

8. CCMP Eligibility
• SRF funding for estuary enhancement shall be
limited to the development and implementation of
the CCMP for an estuary designated as an
“estuary of national significance” in accordance
with CWA Section 320.
• Delaware Estuary
• Inland Bays Estuary
“Comprehensive Conservation Management Plan” (CCMP) means a
plan developed for a national estuary in accordance with the
National Estuary Program established under the CWA. CCMPs
contain recommended actions to (1) restore and maintain water
quality; (2) maintain a balanced indigenous population of shellfish,
fish, and wildlife; (3) allow recreational activities in the estuary; and
(4) protect the beneficial uses of the estuary.

9. Watersheds

10. CCMPs Are Umbrella Plans
• They describe broad actions and goals
– Strategic Plans
– Watershed Implementation Plans
– Regional Restoration Initiatives
– Pollution Control Strategies
More Focused
• Challenges –
– We need to develop a level of planning to
directly fund specific implementation projects.
– Connect these projects to municipal needs.

11. Water Quality Improvement Loan Program
• Five-year pilot program (up to $5 million per year – subject
to availability)
• Wastewater and proposed WQILP projects must be on the
CWSRF Project Priority List (PPL)
• Loan debt service payments for both wastewater and
WQILP projects will be equal to wastewater project by itself
for the term of the loan.
• WQILP project must have demonstrated water quality
improvement benefits and be managed for the life of the
improvement.
• WQILP project applicants must enter into a Water Quality
Improvement Agreement with the DNREC„s Division of
Watershed Stewardship.

12. Eligible Projects
• Implementation of green streets (combination of
infrastructure practices in transportation rights-ofway) for new development, redevelopment or
retrofits;
• Implementation of wet weather management
systems for parking areas which include: the
incremental cost of porous pavement, bioretention,
trees, green roofs and other practices that mimic
natural hydrology and reduce effective.
• Establishment and restoration of riparian buffers,
floodplains, wetlands, living shorelines, and other
natural features.
• The water quality portion of projects that employ
development and redevelopment practices that
preserve or restore site hydrologic processes
through sustainable landscaping and site design;

13. As Examples
Where
What
Silver Lake
Silver Lake
CIB/Rehoboth
Rehoboth
Sediment
Management Project
Benefits: Reduced Nitrogen, Phosphorus, Sediment
Improved Habitat, Increase DO, Reduce Flooding
Who
Who
CIB /DNREC/
Sussex
County/Private
Landowner
What
Ag Wetland
Restoration
Where
Sussex County
Benefits: Reduced Nitrogen, Phosphorus, Sediment
Improved Habitat, Increase DO, Reduce Flooding

14. As Examples
Who
PDE /BVA/COW
What
Riparian Buffer
Project
Where
Brandywine Creek
Benefits: Reduced Nitrogen, Phosphorus, Sediment
Improved Habitat, Increase DO, Protect Wilmington’s
Drinking Water Supply
Who
PDE/ WCC/CON
What
Mussel Restoration
Project
Where
White Clay Creek
Benefits: Reduced Nitrogen, Phosphorus, Sediment
Improved Habitat, Increase DO, Protect Newark’s
Drinking Water Supply

15. Delaware State Revolving Fund
Financing of Non-Traditional CWSRF Projects
Municipality and
implementing partner enter
into sponsorship agreement
1
2
CWSRF Provides funding to
Municipality for wastewater
treatment & conservation projects
CWSRF
2
4
Municipal
Sponsor
3
Conservation Project
Implementing
Partner
1
3
Municipality provides CWSRF funding
for sponsored conservation project
CIFA SRF 2012 Workshop
4
Municipality repays low-interest
loan to CWSRF
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16. What‟s Proposed?
• Grant from the Delaware Water
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•
•
•
Infrastructure Council to develop a Project
Registry using PDE‟s model.
Identify linkages between good projects
and municipal/county needs.
Develop a concept (30% design) plan for
one project in each Estuary Program.
Evaluate and further develop the
sponsorship program.
Oversight of project by FAB and Division of
Watershed Stewardship.