Water Quality Issues for the Construction and Building Industry in 2014 A Presentation for the Orange County Business

1. Water Quality Issues for the Construction and Building Industry in 2014 A Presentation for the Orange County Business Council January 14, 2014 Mark Grey, Ph.D., Technical Director Construction Industry Coalition on Water Quality Building Industry Association of Southern California

2. Remarks Today On: • Municipal Separate Storm Sewer System (MS4) permit renewal for North Orange Co. • Observations on permit implementation and experiences over past 5 years, and • Land use and building adaptation to the latest generation of MS4 permits in California • Collaborative efforts (public-private) for permit compliance and infrastructure planning • MS4 LID Alternative Compliance Program • Stormwater program compliance funding

3. Latest Generation of Phase 1 MS4 Permits in southern California

4. Additional Stormwater Permitting Activity by State Water Resources Control Board

5. Low Impact Development principles incorporated into MS4 permits in California • Mimic Predevelopment Hydrology • Use natural features • Use site design • Use source controls • Use distributed controls, not centralized • Use Integrated Water Resources Management • Treating stormwater as a resource at all scales • Improving water quality and augmenting water supplies regionally, watershed-wide

6. Stormwater LID Best Practices Categories

7. What is the San Diego Regional Permit Adopted in 2013 Telling Us About North Orange County Revisions in 2014? • Watershed-based construct for water quality compliance (planning and monitoring programs) • A nod to more robust consideration of regional solutions through LID BMP Alternative Compliance • Push for zero discharge of stormwater (retention) as the engineering standard; minimize use of biofiltration to meet the retention standard • Push to remove all hydromodification control (stream protection) exemptions for development

8. Observations and lessons from the existing North Orange Co. MS4 permit • OCPW reports more than 10,000 acres of property developed in the past 5 years instrumented with LID stormwater BMPs • Use takes several forms, mostly infiltration and biofiltrationBMPs installed on-site • Generally smooth transition by development interests to adopt and use LID principles • Water conservation efforts not overlooked in achieving clean beaches/compliance

9. MS4 permits allow Alternative Compliance Programs for Qualifying Projects • Permits require that the design capture volume is managed on-site using LID BMPs • The volume of runoff NOT managed in LID BMPs must be “mitigated” or “offset” • Options are identified in MS4 permits: • “Mitigate” the volume difference at an off-site location • Pay a fee equivalent to managing runoff from the project location using LID BMPs • Credit trading systems • Watershed planning elements/instruments

10. LID BMP Installation Alternative Compliance Program Development Basis: Phase I MS4 water quality permit conditions for compliance Backdrop: Increase water supply reliability in S. Calif. and emphasis on creating multi-benefit water conservation projects • Evaluating and selecting projects and options • Identifying and creating framework elements • Identifying appropriate programs for the region • Establishing “equivalence” of alternative compliance options with on-site compliance • Creating participation options and agreements among parties: • Private development interests • Regional water quality and flood control agencies • Water and wastewater districts

11. Alternative Compliance Framework Elements

12. Off-site, Regional, and Credit Trading Framework: Some Options • Developer mitigates off-site • Developer purchases credits through private seller with retention capacity • Reimbursement agreement • Negotiated mitigation agreement (variations) • Community facility district Content taken from Arne Anselm/Rebecca Winer-Skonovd, CASQA Conference 2012; Alternative Compliance in Ventura County: Viable Options and Lessons Learned

13. What are examples of off-site project alternatives for water quality compliance? • Green street adjacent or surrounding project • Green streets near project within catchment • Facility retrofits adjacent/near project • Parking Areas • Parks • Streets/Retrofits outside catchment of project • Regional infiltration within/outside project watershed CASQA 2012 BMP of the Year Slide Source: City of Los Angeles

14. Agencies Performing Some Degree of Stormwater Capture in S. California

15. Establishing Equivalency for Alternative Compliance Programs Core Economic Data Resource Expectations Appears highly variable depending upon location and development types Ultra urban, urban, and suburban development patterns and different needs & opportunities create variation Orange County development records offer some guidance on need Pilot projects needed in opportune locations • Cost of installation • Cost of long term O&M • Benefits derived from installation of LID BMPs • Water Quality • Water Supply • Environmental • Property • Health

16. Case Study Analysis of On-site Retention LID BMPs Installation and 20-year O&M Per Gallon Managed Installation and 20-year O&M Cost hierarchy normalized per gallon: Infiltration < Infiltration Pavers ≤ Biofiltration < Harvest and Use Cisterns < Green Roof

17. Equivalent Volume Retention Costs Cost Data from LID BMP Economic Analysis for Orange County, CA, 2012

18. Approved Water Quality Management Plans in Orange County 2007-2012

19. Simple example of revenue potential using 2011-2012 WQMP data Assumptions (Very Rough) Potential Revenue (17.3 M Gal.) x ($2/ Gal.) using infiltration basin = $34.6 Million Appears unrealistically high What about 1% of sites not able to comply on-site? (91 Acres) x (19,000 gallons per acre) x ($2/Gal.) using infiltration basin = $3.46 Million • 10% of total acres covered by WQMPs in 2011-12 can’t comply on-site (total acres =9,114) • 10% = 911 acres • Assuming 19,000 gallons of design capture volume per acre using rational method (90% imperviousness) • Results in 17.3 M Gallons of runoff

20. Alternative Compliance Framework;Perspective and Distinctions Among Parties Perspective Distinctions and Variations MS4 permit requirements drive compliance options On-site preferred, then off-site allowed Where infiltration is feasible, then regional projects may represent best opportunity to achieve compliance and augment ground water supply Projects could be multi-agency, multi-benefit or between private interests (credit trading, for example) Where infiltration is infeasible or won’t augment ground water supply, then other types of off-site projects apply Projects are likely to be local, where needs exist, such as green streets or park and playground improvements or retrofits of existing development • Obtaining water quality approvals is paramount to private development • Meeting MS4 permit requirements is paramount for principal and co-permittees • Water districts and related agencies hold water supply reliability interests paramount

21. Economic Analysis Relating to Integrated Water Resource Planning Questions: Goals: Make the methods and calculation procedures clear and transparent Use case studies to test the framework, and produce the results; augment with work of the past two years in SC Produce a clear understanding of benefits and costs of installing LID BMPs at relevant scales of development • Where will suitability of capturing stormwater align with expected property development and with existing infrastructure plans by cities and the counties? • Where and what benefits will be derived by implementing LID BMPs, and at what scale? • What is the universe of benefits to consider? How will benefits be calculated? What are the acceptable methods? Who will make the calculations?

22. Using Case Study Analysis Methods to Establish Alternative Compliance Program Framework Orange Co. Case Study Analysis Orange County-Santa Ana Region Alternative Compliance Framework Perform similar analysis done in Orange County specific to Santa Ana region Assist in developing pilot projects to test Alternative Compliance Framework Create a clear, simple, pathway for water quality compliance given local needs within a single Regional Board territory • Apply optimization analysis and tools • Determine and apply benefit-cost analysis framework • Develop alternative compliance framework, including credit trading and in-lieu options using development scenarios

23. Stormwater Program Financing Funding Needs: Challenges: Mechanisms to raise revenue for meeting compliance obligations Fees (voter approval) Taxes (voter approval) Product charges Public Understanding of Need Competing Priorities • Water Quality Permit Compliance • Total Maximum Daily Load Requirements • Nutrients and Metals • Bacteria • Retrofitting Existing Infrastructure with “Green” Infrastructure • Water Supply Augmentation

24. THANK YOU Orange County Business Council! Water Quality Issues for the Construction and Building Industry in 2014 Contact: Mark Grey, Ph.D. mgrey@biasc.org 909-525-0623