About
Stormwater Credits are financial incentives, given to property owners (private, nonprofit or business), to reduce stormwater runoff from their property. A stormwater credit program gives reductions in stormwater charges for reducing a property’s demand on the stormwater system.
Typically, stormwater credits are earned through the installation of green infrastructure like bioretention, rain gardens, permeable pavement, green roofs, cisterns, etc.
A stormwater credit program can also allow trading and selling credits to those who are unable or unwilling to install stormwater reduction on their property. This gives everyone the ability to financially contribute to a better stormwater system, which ultimately reduces their flood risk and improves local water quality.
Stormwater credit programs enhance the perception of “user fees” because they recognize stormwater reduction actions, and gives homeowners and businesses voluntary control over their fees (2018 Stormwater Utility Survey, Black & Veatch Management Consulting, LLC).
A Stormwater Credit program can be implemented by a municipality to generate dedicated revenue to develop and implement stormwater projects that meet community development, flood reduction and sustainability goals.
As a dedicated funding source, stormwater credits do not compete with other community priorities. With a reliable and dedicated funding source it is easier to develop long-term stormwater plans, to integrate stormwater projects into the capital improvement plan, and meet regulatory compliance on structures and discharge.
Project Examples
Chattanooga’s Water Quality Credits Program provides stormwater credits to non-residential parcels only. Credits coordinate with the MS4 performance standards, and credits are offered for exceeding the specified volume standard. Earned credits can be used or sold on the “open market.” Credits can be used on new development if they are within the same watershed where they were earned. Credits on redevelopment can be used in any watershed. To apply the credit coupon, the developer may demonstrate hardship meeting basic standard. The City does not track trades, only who gets and redeems them.
Non-residential property owners in Toledo are able to reduce their stormwater charges by up to 50% through stormwater runoff reduction practices like detention ponds, grass swales, etc. “Stormwater credits are offered as an incentive for being good stewards of the City of Toledo stormwater resources.” More Info