Iowas WATER RESOURCE RESTORATION SPONSORED PROJECTS Iowa Department

Iowa’s WATER RESOURCE RESTORATION SPONSORED PROJECTS Iowa Department of Natural Resources Iowa Finance Authority Iowa Department of Agriculture and Land Stewardship Lee Wagner SRF Non-Point Source Program Planner Iowa Department of Natural Resources

Topics • Iowa’s nonpoint source pollution problems • SRF program background • Water Resource Restoration Sponsored Projects Iowa DNR operates the SRF in partnership with the Iowa Finance Authority and the Iowa Department of Agriculture and Land Stewardship

Iowa’s Landscape Transformed “Nowhere have landscape and habitat changes been more dramatic than in Iowa. ” --U. S. Geological Service

1989 - 2002 LOW-INTEREST LOANS FOR Water and wastewater infrastructure only

2003 - Present Water and Wastewater Onsite Septic Systems Planning and Design Lake and Wetland Restoration Soil, Sediment, and Nutrient Management Brownfield Cleanup Source Water Protection Energy and Water Efficiency Urban Stormwater Sponsored Projects Landfill Closure

Nonpoint Source Programs • • Loans Linked Deposits Loan Participations Green Projects / Loan Forgiveness • Sponsored Projects

Nonpoint Source Linked Deposits • Project approval by environmental agency (DNR, IDALS, NRCS, SWCD, etc. ) • Financing approval by participating lender – currently have more than 400 across the state • SRF deposits funds at 0%, bank cannot charge more than 3% interest • Can be used with cost-share, EQIP, other grants

Ag Best Management Practices • Soil erosion • Manure management • Non-CAFO size livestock operations • Nutrient reduction practices • IDALS administers through contract with SRF • Apply through Soil and Water Conservation Districts

Green Infrastructure - Private • Work with local Soil and Water Conservation District for technical approval • Apply to local participating lender for financing approval • Terms up to 20 years • Interest rate capped at 3% • Can fund 100% of project costs or be used with other funds

Onsite Wastewater Systems • Helps homeowners replace inadequate septic systems • Approved by county sanitarian • All 99 Iowa counties participate

Other Water Quality • Borrower is public entity ‒ Stormwater BMPs/ green infrastructure ‒ Brownfield cleanup ‒ Landfill closure ‒ Superfund ‒ Stream Restoration

Background

Water Resource Restoration Sponsored Projects • 2009 Iowa legislature allowed the use of sewer revenues to finance locally directed, watershedbased nonpoint source projects • Implemented through the Clean Water SRF • Started with pilot project in 2013 with City of Dubuque on Mississippi River • Opened up to other communities in 2014

Sponsored Project Funds • $10 million for Sponsored Projects per year – Interest rate hit to the Clean Water SRF – based on how much interest can we afford to lose? • Current CWSRF interest rate is 1. 75% • Up to 1% of interest can be used for non-point source project (interest rate will not go below. 75%) • Approximately $100, 000 per $1, 000 borrowed • Applications accepted twice each year

Typical CWSRF Loan • • City borrows $1, 000 for sewer project City makes annual principal and interest payments on loan for 20 years • With interest and fees, the city repays $1, 227, 000 over the life of loan Loan Costs (interest and fees); $ 227, 000 Wastewate r principal; $ 1, 000

CWSRF Loan with Sponsored Project • • • City applies for both traditional wastewater project and non-point sponsored project City borrows $1, 000 to pay for sewer system upgrades PLUS amount equivalent to up to 1% of interest (about $100, 000) $100, 000 for a total of $1, 100, 000 City makes annual principal and interest payment for 20 years. The interest rate is reduced on the loan so the amount repaid by the city is $1, 227, 000

L $ 1, 200, 000. 00 $ 1, 000. 00 Loan Costs (interest and fees) Sponsored project principal Wastewater principal $ 800, 000. 00 $ 600, 000. 00 $ 400, 000. 00 $ 200, 000. 00 $- $1 million CWSRF $1 million loan with loan sponsored project

Application Process • Qualified applicants – wastewater utility/city with SRF project in the planning phase • Wastewater utility/city must work with a watershed organization, including Iowa Department of Agriculture and Land Stewardship, Soil and Water Conservation District, County Conservation Board, Watershed Management Authority, others

Application Development • Project must address nonpoint source pollution on a watershed basis – starts with watershed assessment • Ends with identifying possible practices to address water quality problems in watershed

Dubuque (on Mississippi River, pop. 58, 000) • Addressing stormwater management in urban watershed • Installed permeable pavers in 74 alleys

Dubuque Bee Branch Watershed • Massive public works project with multiple benefits • Water quality, storm water management, flood control, community amenity, wildlife habitat

Sioux City (On Missouri River, pop. 82, 000) • • Restored native prairie and oak savanna in city park Stabilized eroding streambanks on creek leading to Missouri River Installing infiltration practices for runoff from large mall parking lots Sponsored project amount $900, 000

November 2014

June 2015

October 2015

Clinton (On Mississippi River, pop. 26, 000) • Focus on urban storm water practices to improve water quality & reduce combined sewer overflows • Use less costly green infrastructure solutions • Upgraded street features in historic downtown area

North Liberty (Eastern IA, pop. 18, 000) • Offered rebates to residents for soil quality restoration • Try to mitigate effects of rapid development in the past • Process increases water holding capacity of turf areas

Donnellson (SE Iowa, pop. 900) • Mix of urban storm water management & ag practices – Bioswales for infiltration in town • Partnership with Lee County SWCD – Supported cost share for a cover crop demonstration

Fort Dodge (Central IA, pop. 25, 000) • Stream corridor restoration in city park with storm water management • Support for Badger Lake watershed project – Reduced sediment and nutrients entering the lake with practices on agricultural properties BEFORE AFTER

Northwood (almost in Minnesota, pop. 1900) • Supporting installation of nutrient removal wetlands on agricultural landscape • Hoping to generate water quality credits for future use • Partnership with Iowa Department of Agriculture and Land Stewardship and local drainage district

Des Moines (Central IA, pop. 215, 000) • Financed the removal of flooddamaged homes to restore the floodplain of Four Mile Creek

Program Outcomes • Iowa communities are laboratories for innovation in water quality practices

Program Outcomes • Better understand nonpoint source water quality issues and practices that can be used to address them

Program Outcomes • Encourage watershedbased planning and partnerships

Questions? Lee Wagner Iowa Department of Natural Resources 515 -725 -0992 Lee. wagner@dnr. iowa. gov