In the last two years, EPA has released three new draft National Pollutant Discharge Elimination System (NPDES) Phase II General Permits for Discharges from Small Municipal Separate Storm Sewer Systems (MS4s) within Massachusetts and New Hampshire.  These permits, which are expected to be finalized later this year, will replace the 2003 permit which expired in May of 2008 and will impact 262 communities in Massachusetts and 48 communities in New Hampshire.  The requirements listed in these draft permits are extensive and will require a significant investment of resources in order for communities to comply.  As municipalities research various funding options, stormwater utilities have gained widespread attention and have already been successfully implemented in a few communities within New England.  The process, however, has not been easy as it requires considerable time and effort to gain the necessary public support and approval.  With user-based fees for wastewater and drinking water, a similar fee for operation and maintenance of the storm drain system may be warranted.  Having a dedicated stormwater fund in place to draw from would allow communities to generate revenue for drainage infrastructure improvement projects as well as operation and maintenance of the drainage system. 

There is a common misconception that a stormwater utility must be a separate utility company set up for stormwater.  However, stormwater utilities can come in many different forms, including, but not limited to, stormwater fee programs, separate designations of revenue solely for stormwater management, or stormwater enterprise funds.  There are also different methods for calculating stormwater fees.  Fees can be calculated using an area based method, which looks at the amount of impervious area, establishes a common unit, and then groups billing rates by zoning.  A simple set fee system can also be utilized which assesses an annual or quarterly flat fee based on a property’s zoning. 

Implementing a stormwater utility is a lengthy process which can take a few years, and the public education component does not end once the utility is implemented.  A stormwater utility is most appropriate for those communities that have water quality and flooding issues that require a significant investment of capital.  With issuance of the final MS4 General Permits looming in Massachusetts and New Hampshire, it would seem that the time to implement a stormwater utility is now.  Is a stormwater utility right for your community?  What are your obstacles to implementation?  If not through a stormwater utility, how do you plan to fund MS4 General Permit compliance?

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I/I Mitigation Fees: Are Sewer Banks in Trouble?

by David Elmer on March 10, 2011

Wastewater System Infiltration and Inflow (I/I) Mitigation Fees have been in the news lately in Massachusetts.  A recent court case, Denver Street, LLC vs. Town of Saugus, determined that the Towns “I/I Reduction Contribution” was not an allowable fee but an illegal tax. The ruling required repayment of $670,460, plus 12% interest, to four (4) developers.

The ruling references a 1984 case, Emerson College v. Boston, 391 Mass. 415,424-425, which sets the definition of a fee.

Fees imposed by a government entity…share [three] common traits that distinguish them from taxes:[1] they are charged in exchange for a particular governmental service which benefits the party paying the fee in a manner ‘not shared by other members of society’; [2] they are paid by choice, in that the party paying the fee has the option of not utilizing the governmental service and thereby avoiding the charge…and [3] the charges are collected not to raise revenues but to compensate the governmental entity providing the services for its expenses.

The Saugus case focused on the first and third requirements as both parties stipulated that the developer had the choice to not develop the property.

Many communities have similar sewer banks mechanisms, some required by State Regulatory Consent Order, that charge a fee for new connections to the sewer system. Are all sewer banks in trouble?

Does this Massachusetts Court Case jeopardize the mechanism of a sewer bank to help cities/towns receive revenue to fund sewer system improvements?

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Greenhouse Gas Emissions and Environmental Risk as Driving Factors for Remediation Decision Making Process?

February 17, 2011

Several states now have requirements for certain projects to report Greenhouse Gas (GHG) emissions.  For example, in Massachusetts, recent Massachusetts Environmental Policy Act (MEPA) updates include the requirement of calculating Greenhouse Gas (GHG) emissions for projects that prepare an Environmental Impact Report.  This extra effort involved with complying with new regulations could create extra costs [...]

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More stringent energy-efficiency building codes – Good for the Environment, Good for the Builder?

January 17, 2011

In an article published in the Boston Globe on November 12, 2010, it was reported that the City of Boston is proposing more stringent energy-efficiency building codes for new buildings in Boston.  These new codes would result in a 20% reduction in energy use compared with buildings adhering to the existing building codes.  These new [...]

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