Chapter 6: Potential Funding Sources

Following are some potential sources of funding for implementing the recommendations included in this report.

State Revolving Fund

DEQ administers Oregon's Clean Water State Revolving Fund (CWSRF) to help public agencies finance water quality improvements. Congress appropriates funds to the EPA for the purpose of capitalizing the CWSRF program each year. The funds are allocated to all the states based on a pre-determined formula, and each state must contribute a minimum matching amount of 20% annually. The program provides low-cost loans for the planning, design and construction of various water pollution control activities, including stormwater control. Annually, the program has about $50 million available for water quality improvements. While continuing to serve traditional municipality wastewater needs, the loan program is now expanding with additional loans and incentives to also address nonpoint source water pollution. Any public agency in Oregon is eligible for a CWSRF loan. The program is continuously open to new applications. All eligible proposed projects are ranked based upon their application information and entered on the program's Project Priority List. Points are assigned based on specific ranking criteria.

DEQ 319 Grants

Grant funds are available through Section 319 of the Water Quality Act of 1987. Each year, DEQ identifies programmatic and geographic targets, solicits project proposals, assembles a proposal package for EPA's review, develops contracts and agreements for disbursement of grant funds, oversees program implementation, and evaluates program accomplishments. State, local, tribal and federal governments, nonprofit organizations and institutions, including watershed councils and soil and water conservation districts are eligible to apply. Section 319 funds are intended for projects targeting non-point source pollution issues in priority watersheds, waterbodies and groundwater threatened by non-point source pollution. Priorities for funding projects are reviewed every year.

EPA Pollution Prevention Grants

EPA has approximately $4.5 million to support pollution prevention grants to States, Tribes, and Intertribal Consortia in FY 2007. The Pollution Prevention Grants Program supports State and Tribal technical assistance programs that help businesses and industries identify better environmental strategies and solutions for reducing or eliminating waste at the source.

Governor’s Fund for the Environment

This fund administered by the National Fish and Wildlife Foundation focuses on projects in the Willamette River Basin that support the implementation of the Governor’s Willamette River Legacy Program. Eligible projects reduce pollution and protect and enhance fish, wildlife and habitat in the Willamette River Basin. The Foundation will award approximately $300,000 in grants this year, using funds paid to maintain a sustained granting program to benefit Oregon rivers and streams as a result of a settlement between the United States and an international shipping company that violated numerous federal pollution laws in 2005.

Oregon Watershed Enhancement Board (OWEB) Grants

OWEB grants are available for watershed restoration, natural resource monitoring, outreach/education, and technical assistance to develop restoration projects. OWEB has funded a few stormwater or LID Projects that provide demonstrable benefits to watershed health, and stormwater education projects may be suitable for OWEB’s outreach/education grant program.

Local stormwater utility fees and Systems Development Charges

Some local governments use a stormwater utility fee attached to sewer bills to fund their stormwater programs. Systems Development Charges can also be used to ensure that new development helps pay for the stormwater facilities it requires. Discounts can be offered for on-site stormwater management.

Hazardous substance tax

Both Washington and Oregon have hazardous substance taxes that were established in 1989. In Washington State the tax is imposed on the first in-state possessor of hazardous substances, including petroleum products, pesticides, and certain chemicals, at a rate of 0.7% of the wholesale value of the substance. More than 85% of the revenue in Washington’s Toxics Control Accounts is based on petroleum products. The funds go into local and state Toxics Control Accounts to pay for a number of pollution prevention and hazardous waste cleanup programs, including $20 million for stormwater programs this year. In Oregon, petroleum and crude oil are excluded from the hazardous substances fee, which is used to clean up contaminated sites where the responsible party is unknown, unwilling, or unable to undertake the cleanup. The Oregon fee is not used for stormwater projects. While the Oregon fee generates approximately $5 million annually, the Washington tax generated more than $48 million in 2006.