The Buffalo Sewer Authority closed on a $54 million Environmental Impact Bond (EIB) last week, the country’s largest to date, to finance green infrastructure and stormwater mitigation projects as part of its Rain Check 2.0 initiative. Buffalo Sewer will use the bond proceeds to design and implement green infrastructure to capture stormwater, reduce combined sewer overflows, and enhance community benefits including jobs.
The plans for the EIB came together after The Ralph C. Wilson, Jr. Foundation and the Community Foundation for Greater Buffalo funded Ann Arbor-based Environmental Consulting & Technology, Inc. (ECT) to bring newer models of delivery, including alternative financing options, to the Greater Buffalo region. Morgan Stanley and Quantified Ventures provided underwriting and outcomes-based financing advisory services, respectively, to ensure the issuance met the high standards of Environmental Impact Bonds.
The initiative will better manage stormwater from easements and public land in key CSO (combined sewer overflow) basins, provide impact investing opportunities for investors, reduce stormwater fees for rate payers, and triple the authority’s pace of green infrastructure projects.
Buffalo Sewer’s project goals include installing green stormwater infrastructure (GSI) to manage at least 200 acres of impervious surface through the EIB. Six priority combined sewer overflow basins that are home to 48 percent of Buffalo’s residents are the focus for the green infrastructure investments. The basins were selected based on social and economic equity considerations in addition to stormwater management needs. Green stormwater infrastructure – such as rain gardens, tree plantings, and permeable pavement – is designed to capture and divert stormwater to prevent it from entering the sewer system at peak times. GSI projects reduce the number of combined sewer overflow events, resulting in cleaner local waterways and Lake Erie. With the bond proceeds, Buffalo Sewer’s pace of infrastructure installation is expected to increase from approximately 9.5 acres per year during 2014-2020 to more than 28 acres per year from 2021-2027.
“The City of Buffalo is delighted to successfully bring the bond issuance to a close,” said Mayor Byron W. Brown. “Thus far, along with being the largest EIB in the country, it is also the largest investment any Great Lakes city has made in green stormwater infrastructure, which has proven to be an effective climate resilience measure. The investment also will lead to approximately 700 family-sustaining jobs in our community.”
“Our Rain Check 2.0 program will make Buffalo a greener, healthier, and more equitable city,” said Oluwole “O.J.” McFoy, CEO and General Manager of the Buffalo Sewer Authority. “Green infrastructure provides benefits beyond its ability to manage stormwater, from community beautification and public green space, to workforce development, to public health. This Environmental Impact Bond illustrates our commitment to being data-driven, equitable, forward-thinking, and transparent in how we address stormwater and community resilience.”
Source: PRNewswire