For Immediate Release: Financing for Green Stormwater and Natural Infrastructure Lags Behind Needed Investment
A nationwide analysis of federal funds shows that states use only a small percentage to finance natural and green stormwater infrastructure
MEDIA CONTACT: Katy Hansen | Environmental Policy Innovation Center | katy@policyinnovation.org
February 14, 2022, Washington, DC–A new report, Financing Green Stormwater and Natural Infrastructure with Clean Water State Revolving Funds, released by the Environmental Policy Innovation Center (EPIC) finds that states invested only three percent of Clean Water State Revolving Fund (CWSRF) dollars in natural and green stormwater infrastructure from 2016 to 2020. Investment in water infrastructure lags far behind the amount needed to address water quality and public health issues–estimated by the EPA to be at least $271 billion nationwide. The good news is that states are increasingly financing nature-based solutions: CWSRF-financed investment in green stormwater infrastructure and natural infrastructure has increased each year for the last five years. The relative amount varies considerably from state to state.
As overburdened communities face health risks, climate disasters, and aging water infrastructure, natural and green stormwater infrastructure has the ability to be a driver for change. "Green, nature-based infrastructure that manages rain locally where it falls represents a huge opportunity for communities, particularly in light of the more frequent and severe storms anticipated due to changing climate,” said Caroline Koch, Water Policy Director at WaterNow Alliance.
Koch also mentioned that “making large-scale, capital dollar investments in these resilient solutions—like the investment opportunity the State Revolving Funds offer—will help pave the way for community-wide green infrastructure that captures multiple stormwater management benefits." Natural and green infrastructure’s many environmental, economic, and social benefits include decreased flooding, stormwater overflows, and combined sewer overflows; improved drinking water quality; and reduced pollutants in lakes, rivers, and aquifers, which can then be used for drinking or recreational purposes.
“Natural infrastructure is just hands-down the most cost effective way for our municipalities to manage their water challenges,” said Tee Thomas, Director at Quantified Ventures and co-author of the report. “When I talk natural infrastructure, it is synonymous with supporting underresourced communities and resiliency—natural infrastructure stretches precious dollars further and does triple duty in providing health, recreation, and quality of life benefits.”
Gary Belan, Senior Director of American Rivers’ Clean Water Supply program, agreed, saying that “green infrastructure is the swiss-army knife in our toolbox of water infrastructure solutions. It can provide multiple benefits while remaining cost effective and is a critical application in the urgent search for climate solutions. The recent federal investment in water infrastructure is a once-in-a-generation opportunity, and green infrastructure should be at the top of the funding list.”
With the broad mandate given by the Infrastructure Investment and Jobs Act to improve water quality and public health, states have substantial discretion in which projects to finance with these funds. The report recommends states and the EPA continue to push SRF programs to invest in climate-resilient water infrastructure. Some of the recommendations included are for:
States to provide more technical assistance to borrowers to identify natural and green stormwater infrastructure projects,
States to employ private entities to use funds for interim financing and front-loading projects,
The EPA to dedicate a minimum percentage of Green Project Reserve funds to green stormwater infrastructure and natural infrastructure to increase investment in nature-mimicking projects,
The EPA to strengthen the Green Project Reserve requirement, so that instead of waiving the requirement when states are unable to identify eligible projects, the EPA instead provides technical assistance and more additional subsidies to incentivize investment.
In the end, all levels of government, non-profit organizations, and private entities must act to better utilize the CWSRFs to invest in natural and green water infrastructure that promotes climate resiliency and transformational change.
The report was funded by The Kresge Foundation and Robert Wood Johnson Foundation.
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About Environmental Policy Innovation Center (EPIC): The Environmental Policy Innovation Center is a nonprofit organization based in Washington, DC whose mission is to build policies that deliver spectacular improvements in the speed and scale of environmental progress. In our water work, we focus on innovative policies that eliminate disparities across water systems and build public trust in water supplies. www.policyinnovation.org