Incentives Worksheets: Current and Planned PWD Programs
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1 Incentives Worksheets: Current and Planned PWD Programs Overview This set of worksheets will help PWD gauge the effectiveness of current incentives available to Philadelphia landowners that encourage enhanced stormwater management techniques. The current incentives include: Green Roof Tax Credits Reduced Stormwater Plan Review Standards Fast-track Development Project Review Impervious Area-Based Stormwater Fee and IA credits Free Assistance Program Stormwater Management Incentive Program Further information please visit: Additionally, PWD is currently considering the development of two additional programs to further incentivize and recognize the use of enhanced stormwater management techniques. The planned incentives include: Stormwater Retrofits Grant Program Stormwater Pioneers Recognition Program Please refer to the attached worksheets included with this handout. Each worksheet provides a brief synopsis of the current program, associated costs, and current statistics on program performance. We would like each member of the CAC to help evaluate the programs and help identify ways to potentially improve them and hopefully make them generally more attractive to property owners. We respectfully request that you complete the worksheets prior to the meeting. Please answer these questions from your perspective or from the perspective of the landowners you represent. For each incentive we ask that you rate them on a scale from high to low. If you feel the question is not applicable to a specific incentive program or your property/business, please note the choice in the N/A boxes provided. In addition to your general assessment of each program, we welcome your insights and comments. Feel free to use the additional comments sections in order to express your views and opinions on the programs. If you run out of space, feel free to utilize the back of each sheet to provide additional information. As discussed in the Handout 14, we will include time during the incentives meeting for you to express your opinions and views on the current programs. We will collect your completed worksheets at the end of the meeting so that we can capture the full range of thoughts you may have on these incentives. Please return this page with your worksheets and indicate your name an affiliation in the boxes below. First Name Last Name Affiliation August 11, 2011 PWD CAC Handout 14a Incentives Worksheets 29AUG11 V2.docx 1
2 Current Program: Green Roof Tax Credits Applicants may claim credit against the Business Privilege Tax of 25% for costs to construct Green Roof, up to $100,000. Tax credit shall be applied against applicant s Business Privilege Tax for the year Green Roof is completed. Unused credits may be carried forward until fully used. Businesses may receive only one Green Roof Tax Credit per building. Eligible Parties: Non-residential property owners Eligible Projects: Green Roof Construction Eligible for ongoing credit: Yes IA Year Established: 2007 Owning Department: Department of Revenue Participating properties: Budget: N/A (Handled via the general fund) 2011 Expenses: N/A (Handled via the general fund) Fewer participating properties than expected. Several property owners (e.g. PECO, Drexel and Temple University) would be eligible for both the Tax Credit and IA Credit but have not applied. Department of Revenue has additional program details PWD has limited information on program perception. August 11, 2011 PWD CAC Handout 14a Incentives Worksheets 29AUG11 V2.docx 2
3 Current Program: Reduced Stormwater Plan Review Standards Redevelopment projects reducing directly connected impervious area by at least 20 percent are exempt from standard Channel Protection and Flood Control Requirements. Eligible Parties: All property owners Eligible Projects: New and Redevelopment projects Eligible for ongoing credit: No Year Established: Budget: N/A Onetime cost to establish standards 2011 Expenses: Covered by project review fees Revisions are not necessary at this time. Partial disconnection is frequently used on redevelopment projects. A 20% disconnection threshold is under review. Project participation varies based on final design. August 11, 2011 PWD CAC Handout 14a Incentives Worksheets 29AUG11 V2.docx 3
4 Current Program: Fast-track Development Project Review If the project disconnects 95% of the impervious area, then the stormwater management review of the project will be completed within five days of submittal. Only applies to Stormwater Review and does not extend to other City approvals, including other PWD approvals (e.g. private sewer review). Eligible Parties: All property owners Eligible Projects: Redevelopment projects with 95 percent or more of the impervious area meeting PWD s disconnection criteria Eligible for ongoing credit: Projects which meet fast track review requirements likely eligible for significant IA credit once completed. Year Established: Budget: N/A Onetime cost to establish standards 2011 Expenses: Covered by project review fees Projects must typically utilize green roofs, porous pavement and disconnected paved areas to meet requirements. City is working to further streamline review process across Departments. Project participation varies based on final design. August 11, 2011 PWD CAC Handout 14a Incentives Worksheets 29AUG11 V2.docx 4
5 Current Program: Impervious Area-Based Stormwater Fee and IA Credits Customers who install stormwater management practices that manage the first 1 of runoff from all contributing impervious surfaces. Year Established: 2010 Participating properties: Budget: Covered by general administrative budget 2011 Revenue Reduction: $4,417,476 in annual credits Eligible Parties: All non-residential property owners Eligible Projects: Development and redevelopment projects as well as retrofits Eligible for ongoing credit: Yes IA Retrofits needed to achieve credit are viewed as being too expensive to construct and design. Returns on investment/reduction in stormwater charges generally do not offset capital costs. May need stormwater billing team in the future to administer program. August 11, 2011 PWD CAC Handout 14a Incentives Worksheets 29AUG11 V2.docx 5
6 Current Program: Free Assistance Program PWD provides free assistance through site inspections and design recommendations for green retrofits that allow customers to obtain fee credits. PWD s contractor provides a preliminary/non-engineering review Detailed design not covered by the program. Eligible Parties: Non-residential property owners Eligible Projects: Retrofit projects Eligible for ongoing credit: if retrofit is constructed and implemented project likely eligible for IA and/or GA credit Year Established: 2009 Participating properties: Budget: $660, Expenses: Projected to use full budget for the year One to two full time positions needed if handled internally. Only one retrofit has ultimately been implemented and credited via the program. Retrofits are generally too expensive. Education is still needed about the program. Program minimizes upfront costs to PWD customers for preliminary evaluation and concept design including evaluation of available credits. August 11, 2011 PWD CAC Handout 14a Incentives Worksheets 29AUG11 V2.docx 6
7 Current Program: Stormwater Management Incentive Program PWD offers incentives to implement stormwater management best practices through a low-interest loan program administered by Philadelphia Industrial Development Corporation (PIDC). Low Cost Loan incentive was implemented largely at the request of business owners. Eligible Parties: Private non-residential parcel owners Eligible Projects: retrofits Eligible for ongoing credit: Yes IA and GA Year Established: 2011 / PIDC Participating properties: Budget: $5M 2011 Expenses: $700,000 in total loan requests Program implemented at the request of business owners but few have taken advantage of it. Looking to advertise the program more broadly to the community in the future. Discussion and implementation of SWAPP program may have had reduced interest/urgency. August 11, 2011 PWD CAC Handout 14a Incentives Worksheets 29AUG11 V2.docx 7
8 Planned Program: Stormwater Retrofits Grant Program Grant program to assist private property owners. Covers design and construction of stormwater management best practices (SMP) on non-residential property. Minimum requirement - satisfy PWD s criteria for cost effectiveness and volume reduction. Eligible Parties: Non-residential properties Eligible Projects: Retrofit projects Eligible for ongoing credit: TBD Year Established: In development 2012 Budget: TBD ($5M appropriated by City Council) 2012 Expenses: N/A Details of program currently being developed. Program is contingent upon legal review and approval. August 11, 2011 PWD CAC Handout 14a Incentives Worksheets 29AUG11 V2.docx 8
9 Planned Program: Stormwater Pioneers Recognition Program PWD would like to develop a recognition program for property owners who are proactive and at the forefront of stormwater management. PWD recognizes that property owners are wary of making changes on property and not seeing return on investment. PWD wants to help publicize and support those who do. Eligible Parties: Properties that have installed green infrastructure Eligible Projects: TBD Eligible for ongoing credit: N/A Year Established: In development 2012 Budget: TBD 2012 Expenses: TBD Details of program currently being developed. Ideas include: website feature pages; press releases to local papers, feature events at annual watershed conference, newsletters, social media alerts, etc. August 11, 2011 PWD CAC Handout 14a Incentives Worksheets 29AUG11 V2.docx 9
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