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Funding Climate Change Adaptation: How Maryland is Paving the Way in Resiliency Financing

In May 2020, the shortened Maryland 2020 General Assembly Session passed Senate Bill 457, which authorizes local governments in the area to establish Resilience Authorities. The first of its kind, the bill enables a local jurisdiction to flexibly organize funding structures for, and manage, large-scale infrastructure projects specifically aimed at addressing the effects of climate change[1]. The Bill allows local governments to establish and fund Resilience Authorities under local law, outlines the requirements to do so, and stipulates the powers local governments may, and may not, grant to their Resilience Authority.

The Maryland Senate Bill was passed with a bipartisan vote on May 8, 2020. It was supported by Democrats and Republicans on both sides of the Chesapeake Bay. Senator Sarah Elfreth (District 30) sponsored the bill, stating that, “The bill ensures Maryland remains a national leader in preparing ourselves for the impending crisis presented by climate change and sea-level rise.[2]” Annapolis mayor Gavin Buckley and Anne Arundel County Executive Steuart Pittman championed the bill, and Maryland Governor Larry Hogan allowed the bill to go into effect without his signature.

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If you build the data platform, will they come?

This is the first of a series of three posts on utility data management. The Environmental Finance Center collects all sorts of data for projects. The EFC uses data from regulatory agencies, financial reports, and data on area residents from the US Census Bureau.

 

The project design questions the EFC asks are:

  1. Know the users! Are they:
    1. Decisionmakers?
    2. Staff?
    3. The public?
  2. What should be shown?
    1. Decisionmakers need reliable data on cost and benefits
    2. Staff may need to drill down on details
    3. Overall, tell a story
  3. What data exists to support and analyze how can different data sources be connected?

 

For water and wastewater rates dashboards, the EFC’s primary audience is staff of utilities and the secondary audience are utility board members and decisionmakers. The EFC shows utility rates and, importantly, the context for those rates. Multiple dials show the user the balance between factors such as operating ratio and affordability. Comparison groups let the user look at their rates in comparison with other utilities in their watershed or with utilities serving similar numbers of customers. This year, the EFC has added dials for non-revenue water and for wastewater inefficiency to the North Carolina dashboard.

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Water Bill Payment Assistance in Multiple Federal Coronavirus Relief Programs

At the time of this writing, Congress is debating passing another economic stimulus bill to provide relief against the COVID-19 pandemic. As the pandemic created hardships throughout the country for a year, the U.S. government passed two stimulus bills in 2020 that created or funded multiple financial relief programs for various needs. While there is no program that specifically provides relief to water and wastewater utilities’ losses in revenue, there are several programs funded through the two federal relief bills that can help customers pay past due or current water and/or wastewater bills (“water bills” for short). Water bill payment assistance relieves some of the financial burden on customers that are in most need, and also provides utilities needed revenues to cover unpaid bills and prevent shutoffs in many cases. While there is financial assistance to pay water bills, the fragmentation of the programs can be complicated to navigate. This blog post provides a summary and links to our new factsheets that describe several federally-funded coronavirus relief programs to date that may be used to pay water bills. Information about where customers can go for help is provided.

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Can your Water Utility Afford a Bill Payment Assistance Program?

Guest Post by Stacey Berahzer of IB Environmental

Screenshot from Tool: Bill Payment Assistance Program Cost Estimation For Water Utilities

Water is such a universally essential service, that many utilities seek ways to help their low-income customers with affording the service. Generally referred to as a “customer assistance program” or CAP, this help can take different forms. Some utilities assist by repairing leaks and retrofitting low-income customers’ homes with water efficient devices. But, the more common approach is to provide some sort of financial assistance. For example, a special payment plan to help customers who have arrearages may be coupled with some debt forgiveness. Many utilities also offer discounts on the bills of customers who can prove their low-income status. But, is the cost of implementing such a program prohibitive? The good news is that there has never been a better time to find out.

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Ongoing Impacts of the COVID-19 Pandemic Conditions on North Carolina’s Water and Wastewater Utilities

Over the past 6 months*, the EFC has continued to investigate how utilities across NC are faring as the ongoing pandemic continues to create a variety of challenges related to revenue and operations. The big picture takeaway is that some things are improving while some things remain the sameMany utilities continue to feel a variety of impacts from COVID-19 on utility revenues and practices, some utilities are transitioning to pre-pandemic billing practices, and some utilities will be providing funds for bill payment assistance to customers who have past due bills.   

This week, the EFC is releasing a report, funded by the NC Policy Collaboratory, that details some of the on-going impacts on water and wastewater utilities that have resulted from COVID-19 and the implementation of NC’s Executive Orders 124/142which prohibited disconnection of residential customers and mandated the establishment of payment plansAs part of its research, the EFC interviewed staff from 16 different utilities and collected survey responses from a total of 34 utilities between August and December 2020. This research included utilities across the state that varied in size from 42-300,000 accounts and which had a wide variety of financial health characteristics. 

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