NRDC promotes DC’s use of Environmental Impact Bonds
Posted on: November 04, 2016
The Natural Resource Defense Council recognized DC Water, the District of Columbia’s Water and Sewer Authority, for their innovative use of Environmental Impact Bonds to finance their investment in green infrastructure. NRDC noted green infrastructures’ rise as a mainstream stormwater management practice and shared details on DC’s innovative finance structure that incorporates green infrastructure’s performance into its repayment amounts.
“A financing structure where repayment is dependent in part on project performance is appealing because it reduces the financial risk that a city or utility would otherwise need to assume in installing green infrastructure to meet its water quality goals. […] For DC Water, mitigating some performance risk enabled them to invest in green infrastructure to manage stormwater, rather than construct two enormous underground tunnels as previously planned. Moreover, an EIB structure made sense because DC Water is undertaking this project as part of its combined sewer overflow (CSO) control plan, and NRDC and other environmental groups worked to ensure that their final plan contained strong performance metrics.”
Read more about NRDC’s work with Environmental Impact Bonds and DC Water’s plan here.