Environmental Finance
     Center Network
    Tenth Annual Report
              2004
     University of Southern Maine II Region 5
         Syracuse University II Region 6
       University of Maryland II Region 9
       University of Louisville II Region 10
     University of North Carolina I
Cleveland State University
   New Mexico Tech
California State University
 Boise State University

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2004 EFC ANNUAL REPORT
  TABLE OF CONTENTS
Foreword
Acknowledgments
EFC Network Overview
Executive Summary
University of Southern Maine EFC (Region 1)
Syracuse University EFC (Region 2)
University of Maryland EFC (Region 3)
University of North Carolina (Region 4)
University of Louisville (Region 4)
Cleveland State University EFC (Region 5)
University of New Mexico EFC (Region 6)
California State University EFC (Region 9)
Boise State University EFC (Region 10)
EFC Network Directory
Environmental Finance Program Website
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FOREWORD
                                                                           *
                                                                        EFGN
It is our great pleasure to present the 2004 Annual Report of EPA' s Environmental Finance
Center Network.  The Network consists of university-based Centers which provide finance
training,  education, and analytical services designed around the "how to  pay" issues  of
environmental compliance. Since the creation of the first center thirteen years ago, the EFCs
have expanded into a Network that comprises nine centers strategically located  at  major
universities in eight Federal Regions:

•      University of Southern Maine (Region 1)
•      Syracuse University (Region 2)
•      University of Maryland (Region 3)
•      University of North Carolina at Chapel Hill (Region 4)
•      University of Louisville (Region 4)
•      Cleveland State University (Region 5)
•      New Mexico Institute of Mining and Technology (Region 6)
•      California State University at Hay ward (Region 9)
•      Boise State University (Region 10)

The EFC Network has become a significant force in assisting local governments and small
businesses in meeting environmental standards. A central  goal of the Network is to help
create  sustainable  environmental  systems in the public and  private sectors.  Sustainable
systems have the financial, technical,  and institutional resources  and capability to operate
indefinitely  in  compliance with  environmental  requirements  and  in  conformance  with
generally accepted environmental  practices.  Paying  for  environmental protection  is  an
important component of sustainability and continues to be primarily a responsibility of local
governments and the private sector.

For their part, the financial outreach services of the EFCs help meet environmental  needs by
identifying ways of cutting costs,  lowering and shifting costs, and increasing private  sector
investment  in  environmental  systems. The  reader will find in the following pages  many
innovative  and traditional activities  the  EFCs have undertaken in  accomplishing  these
objectives. Their work,  however, is an ongoing process, and the sum total of the Network's
benefits  make  an important  contribution  to environmental  progress  in this  country.
Information  about  the Environmental Finance Center Network, along with previous years'
Annual Reports, can also be found on our website on EPA's  Environmental Finance Program
homepage at http://www.epa.gov/ocfo/ or http://www.epa.gov/efinpage/.
We welcome your comments and suggestions.
Joseph L. Dillon, Director
Office of Enterprise Technology and Innovation
U. S. Environmental Protection Agency

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  environmental finance center network
A UNIQUE ASSET FOR THE NATION

The  Environmental  Finance  Center  Network  is the only
university-based organization that creates innovative solutions
to help  manage the cost  of  environmental protection. The
Network works  with both the public and private sectors  to
promote a  sustainable  environment, supporting  efforts  to
address difficult  "how-to-pay"  issues.

Core  support  for   the Network  is  provided  by  EPA's
Environmental Finance Program  in the Office of the  Chief
Financial Officer.  The  Network  is comprised  of nine
Environmental Finance Centers, all of which attract additional
funds through grants and contracts with other  public and
private clients.  The Centers, each affiliated with an EPA
Region, are located at the following universities:
 The Network Is
Innovative
Neutral
Multi-
Disciplinary
Local,
Regional &
National
The Network shares and integrates
information, tools and techniques
across the country to develop
innovative solutions to difficult
problems.

The Network is housed within nine
Universities and is not governed by
any one public or private agency or
organization and so is neutral by its
very nature.

The Network routinely employs staff
from multiple disciplines including
engineering, business, finance,
planning, economic development,
science, public administration, and
law.  For any project, the Network can
access the expertise housed within the
nine universities.

The Network has a proven track
record of working at all project levels
from local to national.
                                                              EFC Network Locations
                                                  University of Southern Maine
                                                  Syracuse University
                                                  University of Maryland
                                                  Cleveland State University
                                                  University of North Carolina at Chapel Hill
                                                  University of Louisville
                                                  New Mexico Institute of Mining and Technology
                                                  California State University at Hayward
                                                  Boise State University
                                                The Network Offers
                                                Financial
                                                Expertise
                                               Technical
                                               Transfer
                                                             Multi-Media
                                                             Capabilities
Partnerships
w/the
Regulated &
Regulators

National
Presence
In solving environmental problems or
addressing environmental issues, the
Network brings a unique financial
perspective.

The Network has worked in forty-eight
states and shares information and
technical  expertise among the states and
within the Network to allow a national
transfer of information.

The Network addresses a full range of
environmental issues, including:
hazardous waste, air, water, wastewater,
solid waste, brownfields, environmental
technologies and pollution prevention.

The Network works with both the
regulated community and regulators to
promote efficient and effective
environmental compliance.

The Network routinely partners with
other public and private entities to
complete  projects throughout the US and
beyond.
ENVIRONMENTAL FINANCE CENTER
NETWORK TOOLS

The Network provides education, technical assistance and
analyses to state and local governments and the private sector
through various tools, including the following.

*  Finance Planning Strategies and Programs
•  Local & Regional Economic Development
•  Stakeholder Meetings

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                             ENVIRONMENTAL FINANCE CENTER NETWORK
 Role-plays and Simulations
 Economic and Fiscal Impact Analysis
 Utility Accounting and Financial Reporting
 Informal Surveys
 Financial Policy and Practice Guides
 Information Clearinghouse
 Strategic Information Systems
 Conferences & Workshops
 Charrettes
 Process Facilitation
 Program Evaluation
 Research Publications and Reports, and
 Hand-On Assistance
We have adopted these tools to help us navigate the numerous
environmental media in which we work.  Some tools apply
across a broad spectrum of issues while others are limited to
specific media.

Finance  Planning Strategies and  Programs  include the
provision  of financial  expertise in areas such as  capital
financing,   operating  cost   management,  loan  programs,
environmental risk management and strategies and approaches
for the public and private sectors.

Local Economic  Development support involves numerous
areas  including eco-industrial parks,  recycling,  open space
preservation, brownfields,  greenfields, and green business and
environmental industry support and promotion.

Stakeholder  Meetings  and  Charrettes are implemented in
various situations  where input from a variety of stakeholders
and participants is  necessary to resolve an environmental
finance problem.

Role-plays and Simulations have been used in brownfields
assistance  where  stakeholders  learn  what motivates  and
interests the  other stakeholders with  whom  they need to
negotiate, based on real circumstances.

Economic  and  Fiscal  Impact Analyses are  frequently
performed  for  various  projects   including   brownfields
reclamation,  rural land  conversions   and other forms  of
development.

Utility Finance models and financial management programs
and software  have been developed for  water and wastewater
infrastructure projects. These include:  utility accounting and
financial reporting, water conservation cost-benefit analysis,
gap financing analysis, and water and  wastewater  system
budgeting.

Informal Surveys are frequently used for a range of projects
from  determining  small business   incentives  for  green
manufacturing, to assessing local needs for redevelopment.
                         Policy and Practice Guides have been developed to assist in
                         shaping local land use and environmental policies and helping
                         consumers choose and locate green businesses.

                         Information Clearinghouse services  are provided by all
                         Centers.  The  Network serves as a national repository  and
                         clearinghouse for environmental finance-related information,
                         including   information  from  the   USEPA,  the   national
                         Environmental Financial Advisory  Board, and the national
                         Environmental Financing Information Network.

                         Strategic   Information  Systems  have  been  designed to
                         improve  financial and management capabilities  of  water
                         systems.

                         Conferences & Workshops are offered by the  Network
                         throughout the United States on a range of topics from water
                         and   wastewater,   to   brownfields  redevelopment   and
                         environmental technology transfer.

                         Process  Facilitation is a broad tool designed to help take a
                         project from concept to reality. Part of that facilitation may
                         include Internal  Partnering  Meetings that  promote  inter-
                         agency cooperation.

                         Program  Evaluation services help to assess the outcomes of
                         new environmental finance, economic development, and land
                         use programs for local and state governments.

                         Finally the Network offers a wide range of research publications
                         and reports,  and hands-on assistance to national,  state,  and local
                         agencies as well as tribes and private sector organizations and
                         businesses.
                                                            SELECTED PROJECTS ACROSS THE
                                                            UNITED STATES

                                                            Since 1992,  the  Network  has  been  working to promote
                                                            sustainable development throughout the United States.  The
                                                            following is  a selection of projects that best represents our
                                                            talents.

                                                            Brownfields  Remediation and  Redevelopment.  Network
                                                            members have been involved in developing, operating and
                                                            evaluating  the  impacts  of  state  and  local  brownfield
                                                            redevelopment efforts. Key features of state voluntary cleanup
                                                            programs have been identified and their impacts on developer
                                                            decision making examined.  The private market risk transfer
                                                            measures available through insurance  and their  impact on
                                                            brownfield project valuations have  been  documented  and
                                                            technical assistance to public sector  utilization of insurance
                                                            continues to  be provided. Network members have also  been
                                                            involved in  training   programs  for  potential  brownfield
                                                            redevelopers and financiers on how the markets and regulatory
                                                            standards have been evolving.

                                                            Full  Cost Pricing of Water and Sewer  Services.  Small
                                                            communities  struggle with the challenge  of providing safe
                                                            drinking water and effective wastewater treatment services to
EFCN
A  UNIQUE ASSET  FOR THE NATION
                                                                                                        EFCN

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                                 ENVIRONMENTAL FINANCE CENTER NETWORK
the public.    Communities  throughout  the  country  have
benefited from low or no-cost assistance from the EFCs in the
areas  of rate setting, capital replacement financing, financial
management and assessing the impact of capital investments.

Multi-State   Grants  and  Loans   Database.     Several
Environmental Finance Centers compile and maintain funding
resource databases.   An  environmental  funding database
currently  exists that covers six southeaster states:  North
Carolina South Carolina,  Georgia,  Florida, Alabama,  and
Mississippi.  This database  is available to local governments
and  citizens to  help  them  identify low  cost  financing
approaches  for  environmental  projects.   Similar tools for
watershed financing  are available in the Region 10 states of
Idaho, Washington and Oregon and are under development in
Region  1, as steps toward creation of a national database.

Environmental Finance Curriculum Development.  A set of
course materials on environmental finance, intended to bridge
the gap  between existing academic courses on public  finance
and existing training programs  for government officials has
been  developed.  The  course  is   available   for  delivery
throughout  the  Network  and is presented as a series of
modules that can work together for an extended course of
study, or separately for focus on individual topics.  A distance
education  course on environmental finance based on some of
the materials and topics covered in  the course material has
also been prepared.

Business  Planning Assistance  to Environmental  Non-
profit Organizations. A business plan has  been prepared to
help guide non-profit environmental organization. The plan
includes an analysis of existing services and pricing structures
and makes  recommendations  on how an  organization can
implement  improved   business  practices   and  become
financially   stable   while   achieving environmental   and
community service objectives.

Environmental Finance Policy Guides.   Guides are being
developed throughout the Network to be  used by state local
government  officials, their associations, and  organizations
providing training to  officials and community board members.
Topics,  readable by people with  high  school educations,
include  the  issues  of land value  'takings' by  regulation,
resources  valuation issues  in water  and  wastewater system
mergers/acquisitions,  the  value  of  alternative  brownfield
subsidies,  uses of environmental insurance,  the economics of
construction and demotion debris reuse,and the economic and
environmental features of different policy responses to urban
expansion pressures.

Unified  Source Water Protection.  As part of an EPA pilot
initiative, five EFCs are working with groups of water systems
in 8 states to develop unified source water protection plans.
Unified  source water protection plans incorporate the needs of
many  water systems that  share  a water  source or potential
contamination threats.  The single  or unified plan approach:
reduces  duplication of effort, allows for a more expansive look
                          at  water resources,  increases  opportunities  for particular
                          protection measures to be used, and permits side benefits by
                          bringing water system managers and operators together on an
                          ongoing frequent basis

                          Funding  and  Needs Analyses.   The  Network frequently
                          assesses  performance of individual programs  for  funding
                          environmental  improvements  or infrastructure development.
                          A current study is underway  to  assess the water and sewer
                          infrastructure needs in the Appalachian region of the United
                          States and to examine whether existing funding programs and
                          community practices will be sufficient to protect public health
                          and the environment in the  future.  In addition, focus groups
                          and informant  interviews of program  representatives  and
                          program beneficiaries or recipients have been conducted, and
                          strategies recommended for cooperative funding to maximize
                          opportunities for beneficiaries to obtain financing in the most
                          cost-effective and politically palatable manner.

                          Brominated  Flame Retardants in  Electronics.   In response
                          to  growing  national interest, a Finance Center program,
                          including a roundtable and  conference, has been planned to
                          facilitate dialogue  between electronics manufacturers, plastics
                          experts,  and  community and government stakeholders to
                          explore alternatives to toxic flame retardant use  in consumer
                          electronics. The program is  focused on designing electronics
                          that are both fire resistant and protect human health and the
                          environment while ensuring product performance.

                          Environmental Insurance for Brownfields. Center studies of
                          environmental   insurance  products  and  their  utility  for
                          brownfield redevelopment have provided data for provision of
                          technical  assistance to state and local brownfield programs.
                          Continuing  legal education seminars and  other training for
                          brownfields  stakeholders has  also  been provided.  Current
                          efforts include work on designing model insurance programs
                          for state-led  redevelopment  programs, UST cleanup funding,
                          and an update on the environmental insurance market.

                          Financing Watershed Strategies.  Training workshops have
                          been developed which promote the coordination of funding
                          and technical assistance  programs with innovative financing
                          techniques to support watershed management.   Participants
                          explore innovative  solutions to multi-jurisdictional and multi-
                          disciplinary issues encountered within a watershed.  Network
                          trainings have been held in EPA Regions 5, 8, and 10.  Due to
                          the popularity of the workshops, twenty were held in Region
                          10 in 2002-2003.

                          Green Business Program Facilitation. As part of the effort
                          to promote Green Business  throughout the United States, an
                          EFC  program has  been established to  help facilitate the
                          creation  of  Green  Business Programs  and  Recognition
                          Projects.  In addition to hands-on assistance, a website is being
                          developed to compile information on planning, implementing,
                          maintaining  and  growing  a  Green Business  Recognition
                          Program.
   EFCN
A  UNIQUE ASSET FOR THE NATION
EFCN

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                                ENVIRONMENTAL  FINANCE  CENTER NETWORK
Public  Management  and  Finance Program.   A  unique
technical assistance and training program has been developed
in which EFCs  collaborate  with nonprofit, private,  and
government entities in the delivery of environmental services
to primarily rural communities. The PMFP provides a forum
that links technical assistance providers and local governments
to enable holistic approaches to rural community problems.

Smart Growth  Planning.  Network Smart Growth projects
include efforts to help an agricultural community preserve its
rural heritage. Land protection financing initiatives have been
explored through charrettes  and  comprehensive  planning.
Geographic  Information  System tools  are  being used to
identify causes  of urban spread and economically efficient
public responses.

EnviroLoan  & Strategic Goals Program.  Projects  for the
National Strategic Goals Program  included developing the
Access  to  Capital   EnviroLoan  Program  -  a  pollution
prevention (P2)loan program for metal finishers. Other work
focused on marketing the Goals Program statewide seeking
legislation to implement a California Strategic Goals Program.

Million Acres Initiative  - Open Space  Preservation.  In a
state effort that may be replicable, support is being provided to
the  North Carolina legislature's Million Acres Initiative to
conserve land for  open space,  farmland preservation, riparian
buffers  and  other conservation purposes.    Surveys  and
interviews were used  to assess the amount  of land  already
protected, the rate at which land would be protected over the
next ten years at current funding levels, the size of the revenue
gap needed to complete the million acre goal, and the funding
alternatives potentially available.

Sustainable Infrastructure Development. This project  will
define a vision for  a  Great  Lakes  regional approach to
prioritizing capital investments which  sustain the regional
system of infrastructure.
Multi-State Assistance  to State Regulatory Departments.
State Regulatory Departments  were assisted in preparing and
implementing  Capacity  Development   strategies  in  ten
different states.    These  strategies are  intended to improve
water system technical, managerial, and financial capabilities.
The  assistance ranged from facilitating the stakeholder-input
process, to writing up strategies, to assisting with partnering
between systems and various options in between.

Intergovernmental and Inter-Agency Cooperation. The first
ever meeting on  public funding  or watershed restoration
efforts was  convened in the  state of Idaho.  This  meeting
included representatives of EPA,  USFS,  BLM, Bureau of
Reclamation,   USACE,   USF&W,    Bonneville   Power
Administration, NRCS, ID Dept of Ag,  ID Dept of Fish and
Game,  ID   Dept of  Water Resources,   ID  Dept  of
Environmental Quality and  other private foundations.   The
purpose of the  meeting was  to initiate a dialogue  on the
various   funding  sources  and  the  match  requirements
associated with the various programs.
                         Land  Trust  Assistance.  The  first  Patuxent  Land  Trust
                         Exchange  was conducted in partnership  with the Maryland
                         Environmental Trust and the Trust for Public Land. The goal
                         of the  Exchange was to develop a more coordinated land
                         protection strategy  in the  Patuxent River watershed.   Ten
                         community conservation organizations  attended the Exchange.
                         A number of next steps were identified including developing
                         joint marketing strategies, list serves,  and special events.  In
                         addition, possibilities for organizational funding  and capacity
                         development will be explored.

                         Financing A Cluster Wastewater  System.  As part of a
                         multi-region effort,  a charrette was held in Yarmouth MA, to
                         help locate financing for  a  "cluster" wastewater treatment
                         system to replace  septic systems that  had been nitrogen-
                         loading the local estuary and its ecosystem. This charrette
                         helped develop a solution that may also be generalized to fit
                         other similarly dense  seasonal communities on Cape Cod and
                         other  tourist  meccas.    Additionally,  several  resource
                         assessment needs  were  identified and  are  currently  being
                         addressed  by  the State of Massachusetts, and several groups
                         have expressed interest  in collaborating to  create the new
                         community wastewater system,  using State revolving loan
                         funds and other public and private funds.

                         WHERE HAS THE ENVIRONMENTAL FINANCE
                         CENTER NETWORK WORKED?

                         Haven't heard of us? If you haven't already, you probably will
                         soon because the Network is continually expanding its  range
                         of services and the states it serves. To  date, we've worked on
                         at least one project  in 48 different states, excepting North and
                         South Dakota. We  are looking forward to serving all  50, as
                         well as our territories.
                          CONTACT US
                          Have questions?  Please email any one of our
                          members through our websites below.  Any Center
                          can help you connect to the EFC that can be the most
                          help on your issue.

                          Maine         efc.muskie.usm.maine.edu
                          New York      www.maxwell.syr.edu/efc
                          Maryland      www.efc.umd.edu
                          Ohio           urban.csuohio.edu/glefc/
                          N Carolina     www.efc.unc.edu
                          Kentucky      cepm.louisville.edu/org/SEEFC/seefc.htm
                          New Mexico   efc.nmt.edu
                          California      www.greenstart.org/efc9
                          Idaho          sspa.boisestate.edu/efc/
   EFCN
A  UNIQUE ASSET  FOR THE NATION
EFCN

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ACKNOWLEDGMENTS
                                                                     -5-
                                                                 EF@N
A great many dedicated people have helped the Environmental Finance Centers (EFCs)
along the way. We particularly want to acknowledge the EPA Regional management and
staff noted in the following listing who have generously provided their skills and time in
managing the cooperative agreements with each of the centers.  The EFC network would
simply not exist without the Regions' superb cooperation and support.  Additionally, we
appreciate very much the key assistance and support  of Headquarters management and
staff in the Program Offices.

We want to express our appreciation to the leadership of the Environmental Financial
Advisory Board (EFAB), particularly Lyons Gray,  Chairman of EFAB, who has had a
distinguished career  in  both business  and  public  service,  and Stan  Meiburg, the
Environmental Financial Advisory Board's  Designated Federal  Official, and  Deputy
Regional Administrator for Region 4.  We are very  pleased that both of these highly
respected individuals have  brought their  considerable knowledge   and skills to this
Federal Advisory Board  and are looking forward to a continuing working relationship
with them, given the interactive role of the EFC Directors as expert witnesses to EFAB.

Lastly, we want  to recognize the  staff of the  Environmental Finance Program, whose
efforts  and dedication prove that resources can be leveraged into far-reaching results.
Vera Hannigan
EFC Network National Coordinator

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 ACKNOWLEDGMENTS
                                                              EFGN
               ENVIRONMENTAL FINANCE CENTERS

                          ACKNOWLEDGMENTS

The EFC Network would like to acknowledge the support and working relationships
between the EFCs and the state and local governmental entities they serve.  As well, the
EFC Network is greatly indebted to EPA, both Headquarters and the Regional offices, for
providing ongoing expertise and participation.

REGION 1 - UNIVERSITY OF SOUTHERN MAINE EFC

EFC
      Prof. Richard Barringer, Director
      Dr. Sam Merrill, Projects Director
      Prof. Charles Colgan, Faculty Associate
      Prof. Jack Kartez, Faculty Associate
      Prof. Mark Lapping, Faculty Associate
      Prof. Evan Richert, Faculty Associate
      Prof. Orlando Delogu, Faculty Associate
      Jodi Castallo, Project Manager
      Will Johnston, Project Manager
      Karen Young, Direcor, Casco Bay Estuary Project
      Karl Braithwaite, Dean, Muskie School of Public Service
      Tom Woods, Operations Director, Muskie School of Public Service
      Sarah Hennessey, Graduate Assistant
      Andy DesPres, Graduate Assistant
      Jeff Bussell, Graduate Assistant
      Rebeccah Schaffner, Graduate Assistant
      Judy Gopaul, Graduate Assistant
      Melissa Tilton, Administrative Assistant
      Sarah Ferriter, Administrative Assistant

EPA Region 1
      Robert Varney, Regional Administrator
      Carl Dierker, Office of Regional Counsel
      Rosemary Monahan, Smart Growth Coordinator
      Diane Gould, Program Officer, and Casco Bay Estuary Project Coordinator
      Steve Silva, Maine State Office Director

EPA HQ - The Environmental Finance Program Team:
      Vanessa Bowie, EFAB Coordinator
      Vera Hannigan, EFC Coordinator

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ACKNOWLEDGMENTS
                                                                   -5-
                                                                EF@N
REGION 2 - SYRACUSE UNIVERSITY MAXWELL SCHOOL EFC

The EFC staff would like to expressly thank Kim Farrellfor her seven years of dedication
and service as the co-director of the Syracuse University Environmental Finance Center.

EFC Professional Staff
       William Sullivan, Co-Director
   -   Kim Farrell, Co-Director (1997-2004)
       Catherine Gerard, Interim Co-Director
       Amy Santos, Assistant Director
       Kevin Jacob son, Program Manager
       Mary Ellen Gilbert, Administrative Coordinator
       Dr. Stuart Bretschneider
       Dr. Larry Schroeder
       Dr. Susan Senecah
       Corey Falter, Research Associate
       Madoka Kise, Research Associate
       Matthew Zeller, Research Associate

EFC Region 2
   -  Kathleen Callahan, Acting Regional Administrator
       George Pavlou, Deputy Regional Administrator
       Stephen Vida, Team Leader, State Revolving Fund Programs
   -   Elizabeth VanRabenswaay, Chief, Construction Grants, SRF Section

Other Partners
   -   Patrick Brennan, USDA State Director, New York
   -   Jim Stearns, New York State Environmental Facilities Corporation
   -   David Miller, USDA RUS,  Syracuse
       Jeff Smith, Munistat Financial Services, New York
       Pat Scalera, New York Rural Water Association
   -   Bill Webb, RCAP Solutions
   -   Scott Mueller, RCAP Solutions
       Rob Campany, Bernier Carr Engineers
   -   Bill Hall, Stearns and Wheler
       Kevin Smith, Tug Hill Commission, Watertown, New York
       Phil Smith, NYS Department of Environmental Conservation
       Patricia Cerro-Reehil, New York Water Environment Association

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 ACKNOWLEDGMENTS
                                                                EFGN
REGION 3 - UNIVERSITY OF MARYLAND EFC
EFC
   -  Jack Greer, Director (outgoing)
   -  Dan Nees, Director (current)
   -  Michelle O'Herron, Program Manager
   -  Jean Holloway, Training Manager
   -  Michelle Lennox, Project Assistant
   -  Afsheen Siddiq, Project Assistant
   -  Stephanie Novello, Project Assistant
   -  Jennifer Cotting, Project Assistant

Maryland Sea Grant Program, University of Maryland
   -  Jonathan G. Kramer, Director
   -  Bonny Marcellino, Assistant Director for Administration
   -  Theresa Lee, Program Management Specialist
   -  Dan Jacobs, Information Technology Manager
   -  Jeanette Connors, Administrative Assistant

Institute for Governmental Service, University of Maryland
   -  Robin Parker-Cox, Director
   -  Jeanne Bilanin, Deputy Director
   -  Philip Favero, Extension Specialist
   -  Victor Tervala, Government Consultant
   -  Patti Belcher, Communications
   -  Sheila Senesie, Business Services Specialist
   -  Jacqueline Adams, Administrative Assistant

EPA Region 3
   -  Donald S. Welsh, Regional Administrator
   -  Mindy Lemoine, Grants Project Officer
   -  Donna Armstrong, Grant Administrator,
   -  Ghassan Khaled, Drinking Water Branch

Chesapeake Bay Program
   -  Rebecca Hamner, Director
   -  Diana Esher, Deputy Director
      Robert Rose, staff
      Lois Gartner, staff
   -  Lori Mackey, staff
   -  Michael Burke, staff
      Lois Woodward, staff
      Laura Bodtke, staff

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ACKNOWLEDGMENTS
                                                                   -5-
                                                                EF@N
Chesapeake Bay Commission
   -  Ann Swanson, Executive Director
   -  Pat Stuntz, Maryland Director

National Env. Training Center for Small Communities at W. VA. Univ. (NETCSC)
   -  John Hoornbeck, Director
   -  Sandra Fallen, Training Specialist
   -  Mary Alice Dunn, Training Specialist

West Virginia Rural Water Association
      Starla Snead, Capacity Development Program Coordinator

Virginia Rural Water Association
   -  Ken Coffman, Program Specialist

Small Public Water Systems Tech. Assist. Center (SPWSTAC) at Penn State-Hanisburg
   -  Charles Cole, Director
   -  Alison Shuler, Training Coordinator
   -  Sue Hippie, Administrative Assistant

Northeast Rural Communities  Assistance Program
   -  Don Schwartz,  Senior Water Resource Specialist

Delaware Environmental Training Center
   -  Jerry Williams, Director

Maryland Rural Development  Corporation
   -  Joyce De Laurentis, Community Development Specialist

West Virginia Department of Health and Human Resources
   -  J. Scott Rodeheaver, Geologist, Program Manager I

Maryland Department of the Environment
   -  Danielle Lucid
   -  Andrew Sawyers, Program Administrator

Maryland Department of Natural Resources
   -  Nick Williams
   -  Frank Dawson
   -  Mark Bundy

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 ACKNOWLEDGMENTS
                                                              EFGN
National Park Service Rivers, Trails, and Conservation Assistance Program
   -  Wink Hastings
   -  Emily Clifton
   -  Amy Handon

The Wilderness Society
   -  Judy Guse-Noritake
   -  Fran Hunt

REGION 4 - UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL EFC
EFC
      Mike Smith, Dean, School and Institute of Government
      Jeff Hughes, EFC Director
      Prof. Richard Whisnant, Associate Professor
      Lynn Weller, Program Manager
      Mike Luger, Director Office of Economic Development
      Ben Altz-Stamm, Research Associate
      Matt Richardson, Research Associate
      Scott Morrissey, Research Associate
      Mark Horowitz, Research Associate
      Stacey Issac, Research Associate
      Kim Tungate, Research Associate
      Susan Austin, Director, Community Planning Project
      Suho Bae, Research Associate
      JackVogt, Professor
EPA Region 4
      Stan Meiburg, Deputy Regional Administrator
      Linda Rimer, Liaison for the Carolinas
      Cory Berish
   -  Mary Jo Bragan
      Dale Froneberger

EPA Headquarters
      Tim McProuty
      Vera Hannigan
      Vanessa Bowie
      Alecia Crichlow
      Jenny Bielanski
      Chuck Job

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ACKNOWLEDGMENTS
                                                                   -5-
                                                                EF@N
USD A Rural Utilities Service
      Jim Maras
      Dennis Belong

Appalachian Regional Commission
      Greg Bischak

State of North Carolina
      Bill Ross, Secretary, N.C. Dept. of Environment and Natural Resources
   -  Bill Holman, Clean Water Trust Fund
   -  Richard Rogers, One NC Naturally Land Conservation Program
      Jessica Miles, Public Water Supply Section
      Sid Harrell, Drinking Water State Revolving Fund
   -  Bobby Blowe, Clean Water State Revolving Fund
      Janice Burke, Local Government Commission
      John Heron, Local Government Commission staff
      Liz Wolfe, Division of Community Assistance
      Jean Crews-Klein, NC Rural Center

Small Public Water Systems Technical Assistance Center (SETAC)
   -  Kim Steil
REGION 4 - UNIVERSITY OF LOUISVILLE EFC
EFC
       Peter Meyer, EFC Director
       Lauren Heberle, Assistant Director
       Russell Barnett, EFC Project Manager
       Karen Cairns, Project Associate
       Carol Norton, Project Assistant
       Susan Opp, Graduate Research Assistant
       R. Diane Gossett, Administrative Assistant

EPA Region 4
       Stan Meiburg, Deputy Regional Administrator
       Cory Berish, Chief, Planning and Analysis
       Phil Vorsatz, Chief, Brownfields/State Support
       Mary Jo Bragan, Project Officer

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 ACKNOWLEDGMENTS
                                                              EFGN
REGION 5 - CLEVELAND STATE UNIVERSITY EFC
EFC
      Kevin E. O'Brien, Executive Director
   -  Claudette Robey, Assistant Director
      Kirstin Toth, Project Manager
   -  Larry Ledebur, Ph.D., GLEFC Fellow
   -  Michael Tevesz, Ph.D., GLEFC Fellow
   -  Wendy Kellogg, Ph.D., GLEFC Fellow
      Daniel Baracskay, Ph.D., Research Associate
      Michael McGoun, Research Assistant
      Vivian Tucker, Administrative Assistant
   -  John Storey, Graduate Assistant
      Karen Johnston, Graduate Assistant
      Sarah Hudecek, Graduate Assistant
   -  Matt Sattler, Graduate Assistant

U.S. EPA, Regions
      Lyn Lutner, Region 5 Cleveland Office
   -  Deborah Orr, Region 5 Brownfield Team, Chicago
   -  Joseph Dufficy, Region 5 Brownfield Team, Chicago
      Brooke Furio, Region 5 Brownfield Team, Chicago and Cleveland
      Karla Auker, Region 5 Cleveland Office Brownfield Team

U.S. Department of Housing and Urban Development
      Douglas Shelby, Director, Cleveland Office
      Paul Diegelman, Community Builder

U.S. Department of Commerce, National Oceanic and Atmospheric Administration (NOAA)
      Kate Barba, National Estuarine Research Reserve Program Manager

State of Ohio
   -  John Magill, Deputy Director, Ohio Department of Development
      Amy Alduino, Administrator, Clean Ohio Revitalization Fund
      Tiffani Robinson, Ohio EPA Voluntary Action Program
      Amy Yersavich, Ohio EPA Voluntary Action Program
   -  Jeff Reutter, Ohio Sea Grant College Program
      Yetty Alley, Ohio Department of Natural Resources
      Linda Feix, Old Woman Creek National Estuarine Research Reserve

Ohio Water Development Authority
      Steve Grossman, Executive Director

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ACKNOWLEDGMENTS
                                                                   -5-
                                                               EF@N
U.S. EPA Environmental Finance Team
      Vanessa Bowie, EFC Team Leader
      Vera Hannigan, EFC National Coordinator
   -  Tim McProuty, EFC Team

REGION 6 - NEW MEXICO  INSTITUTE OF MINING AND TECHNOLOGY EFC
EFC
       Heather Himmelberger, P.E., EFC Director
       Susan Butler, Program Manager
       Keith Melton, Program Manager
       Beverly Rizzolo, Tribal Capacity Development
       Matt Ziegler, Water Resource Specialist
       Karen Stafford-Brown, Environmental Engineer
       Shawn Hardeman, Water Resource Specialist
       Sandi Blanton, Program Manager
       Cynthia Hernandez, Project Coordinator

EPA Region 6
       Blake Atkins, Acting Chief, Drinking Water Section, Water Qual. Protection Div.
       David Reazin, Drinking Water Section
       William Davis, Drinking Water Section
       Andrew Waite, Drinking Water Section
       Thomas Poeton, Drinking Water Section
       Jose Rodriguez, Drinking Water Section
       Freda Wash, State/Tribal Programs Section, Water Quality Protection Division
       Betty Ashley, State/Tribal Programs Section
       Yulonda Davis, State/Tribal Programs Section
       Kim Ngo, Drinking Water Section, Water Quality Protection Division
       Teena Scott, State/Tribal Programs Section
       Ken Williams, Source Water Protection Section, Water Qual. Protection Division

EPA/HQ-
       Debra Gutenson, Source Water Protection, OGWDW
   -   Roy Simon, Source Water Protection, OGWDW

Region 6 State Agencies

Arkansas
       Raymond Thompson, Capacity Development Coordinator, ARDept. of Hlth., LA
       T. Jay Ray, Manager, DW Revolving Loan Fund, LA Dept. of Health & Hospitals

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 ACKNOWLEDGMENTS
                                                              EFGN
New Mexico
      Fernando Martinez, Bureau Chief, Drinking Water Bureau, NM Env. Dept.
      Retta Prophet, Capacity Dvp. Coord., Drinking Water Bureau, NM Env. Dept.
      Rob Pine, Drinking Water Bureau, NM Environment Department
       Ken Hughes, Local Government Divison, NM Dept. of Finance and Adm.
      Anne Watkins, Office of State Engineer

Oklahoma
      Mike Harrell, P.E., Env. Engineer Spvsr, Water Qual. Div., OK Dept Env. Qual.
      Brad Cook, Capacity Development Coordinator

Texas
   -  Tony Bennett, TCEQ
      Buck Henderson, TCEQ
   -  Doug Holcomb, P.E., TCEQ
   -  Dorothy Young, TCEQ

REGION 9 - CALIFORNIA STATE UNIVERSITY, HAYWARD EFC

EFC
      Sam Basu, Interim Dean, CSU East Bay
      Sarah Diefendorf, EFC Executive Director
      Susan Blachman, EFC Associate Director
      Ann Blake, EFC Senior Associate
      Vicki Vasquez, Programs Coordinator
      Jim Nicholas, Website Designer

EPA Region 9
   -  Laura Yoshii, Deputy Regional Administrator
   -  Jeff Scott, Solid Waste Division Director
      Bill Jones, EFC9 Grant Manager, Solid Waste Division
      Eileen Sheehan, Pollution Prevention Coordinator
      Leif Magnuson, Pollution Prevention Division
      John Katz, Pollution Prevention Division
      Jessica Counts, Pollution Prevention Division
      Sue McDowell, Solid Waste Division
   -  Patricia Norton, Solid Waste Division
   -  Zac Appleton, Solid Waste Division

California EPA
      Stan Felipe, Department of Toxic Substances Control
   -  Bill Ryan, Department of Toxic Substances Control

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ACKNOWLEDGMENTS
                                                                    -5-
                                                                EF@N
California State Legislature
      Maria Armoudian (Senior Staff, Senator Alarcon)

California Green Business Program
   -  Ceil Scandone, Green Business Coordinator, Association of Bay Area Govts.
      Pam Evans, Alameda County Green Business Program
      Robin Bedell-Waite, Contra Costa County Green Business Program
   -  Marcy Barnett, Sacramento County Green Business Program
   -  Virginia St Jean, San Francisco County Green Business Program
Hawaii
       Gail Suzuki-Jones, State Dept. of Business, Economic Development & Tourism
       Karl Montoyama, State Department of ealth, Pollution Prevention Coordinator
       Dennis Hwang, Coordinator, Hawaii Green Business Program
Arizona
       Al Brown, Director, Environmental Services, Maricopa County
       Bob Evans, Program Manager, Environmental Services, Maricopa County
       Supervisor Mary Rose Wilcox, Maricopa County
Nevada
      Kevin Dick, Director, Business Environmental Pgm., University of Nevada, Reno
      Ed Gonzalez, Director, Western Regional Pollution Prevention Network

Industry
      Marialyce Pedersen, Disney Corporation
      Richard Firth, Firth and Associates

REGION 10 - BOISE STATE UNIVERSITY EFC

Boise State University
      Robert Kustra, President
      Darryl Jones, Provost (through July 2004)
      Sona Andrews, Provost (as of August 2004)
      Mark Dunham, Office of the President
      Michael Blankenship, Dean College of Social Science & Public Affairs
      James B. Weatherby, Chair, Department of Public Policy & Administration
      John Owens, Vice President of Research
      Lawrence Irvin, Director, Office of Research Administration
      Kim Chanley, Sponsored Projects Accounting
      George Murgel, P.E., College of Engineering
   -  Geoff Black, College of Business and Economics
      Don Holley, College of Business and Economics

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 ACKNOWLEDGMENTS
                                                                EFGN
       Amanda Horton, University Counsel
       Reba McMillan, Network Admin., College of Social Science & Public Affairs

Congressional
       Linda Culver, Staff Assistant/Field Representative (Twin Falls, ID), Office of
       Congressman Michael Simpson

EPA/Region 10
       William Chamberlain, Office of Water Quality, Drinking Water Unit
       Amber Wong, Office of Ecosystems and Communities
       Bevin Reid, Office of Ecosystems and Communities
       Richard Green,  Office of Water Quality, Drinking Water Unit
   -   Michelle Tucker, CWSRF Specialist
       James H. Werntz, Director, Idaho Operations Office
       Carla Fromm, Idaho Operations Office
   -   Alan Henning, Oregon Operations Office
   -   Teresa Kubo, Oregon Operations Office
       Greg Kellogg, Alaska Operations Office

EPA/Region 7
       Robert Dunlevy, Groundwater-Drinking Water Branch, Office of Water
       Mandy Techau, Office of Water

EPA/HQ
       Vera Hannigan, EFC National Coordinator, Environmental Finance Team
       Diane Regas, Director, Office of Wetlands, Oceans, and Watersheds
       Tim Jones, Sustainable Finance Team, OWOW
   -   Gustavo Rubio,  Knauss Marine Policy Fellow, Coastal Management Division
   -   Anne Weinberg, Assessment and Watershed Division
       James Bourne, Drinking Water Academy, Office of Water
       Jenny Bielanski, Office of Groundwater and Drinking Water, Office of Water
       Peter Shanaghan, Drinking Water State Revolving Fund
       George Ames, Chief, SRF Branch, Office of Water

US Army Corps of Engineers
   -   Brayton Willis,  Walla Walla District
   -   Debra Willis, Walla Walla District
       Barbara Benge, Walla Walla District
   -   Robert Brochu,  Walla Walla District

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ACKNOWLEDGMENTS
                                                                   -5-
                                                                EF@N
NOAA
      Rosemary Furfey, Oregon Coast Coho Recovery Coordinator, NOAA Fisheries

Technical Assistance Centers
   -  Kent Smothers, Midwest Technology Assistance Center
      Nicole Duclos, Alaska Training and Technical Assistance Center

State
      Lance Nielsen, Idaho Department of Environmental Quality (IDEQ) Drinking
      Water Program
      Bill Jerrel, IDEQ State Revolving Fund Program
      Chris Lavelle, IDEQ Capacity Development Coordinator
   -  Todd Maguire, IDEQ Non-Point Source (319) Manager
      Phil Bandy, IDEQ Watershed Protection Program Manager
      Jerry Nicolescu, Administrator, Idaho Soil Conservation Commission
   -  Erv Ballou, Idaho Department of Water Resources
   -  Terry Blau, Idaho Department of Water Resources
      Dan Garner, Alaska Department of Environmental Conservation
      John LaRocque, Washington Department of Community Trade and
      Economic Development
      Leslie Hafford, Washington Department of Community Trade and
      Economic Development
      Scott Ruby, Alaska Department of Community and Economic Development
      Cathy Tucker-Vogel, Kansas Department of Health and Environment
      Jennifer Bunton, Iowa Department of Natural Resources

Private Sector and Nonprofit Organizations
      Lee Napier, Chehalis Basin Partnership (Grays Harbor County, WA)
   -  Kent Foster, Executive Director, Idaho Association of Soil Conservation Districts
      Wayne Newbill, Idaho One Plan Coordinator, Idaho Association of Soil
      Conservation Districts
      Ken Harward, Association of Idaho Cities
      Michael Sebastian Hargrove, Nature Conservancy
      Don Munkers, Idaho Rural Water Association
      Dan Schultz,  The Network Group
   -  Angela Thomas, The Network Group
      David Clompton, Information Designs Inc.
   -  Sherrill Doran, CH2M-H111

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EXECUTIVE  SUMMARY
                                                                 EF©N
    The following Executive Summary of the EFC annual report highlights the major
    accomplishments of the Environmental Finance Center (EFC)  Network for 2004.
The EFC Network is a university-based technical assistance program offering educational
resources and financial outreach services to communities and local governments as well
as the  small  business community  on  the how-to-pay issues  of compliance with
environmental standards.

Currently, the EFC Network is made up of nine centers located in eight Federal Regions
at the following universities: University  of Southern  Maine (Region 1),  Syracuse
University (Region 2), University of Maryland (Region 3), University of North Carolina
at Chapel  Hill  (Region 4),  University of Louisville  (Region  4),  Cleveland  State
University  (Region 5), New Mexico Institute of Mining and Technology  (Region  6),
California State University at Hayward (Region  9), and Boise State  University (Region
10). The EFCs operate as a national association  to foster greater collaboration, enhance
project opportunities  and encourage partnerships,  as well as to clarify  the role of the
Environmental Finance Centers as a collaborative network.

Located in the Office of Enterprise Technology and Innovation within the Office of the
Chief Financial  Officer, the Environmental Finance  Program works  with  the EFC
Network to set  priorities  and coordinate and  plan activities.  The financial outreach
services of the Network concentrates on identifying ways of building the state and local
financial and managerial capacity necessary to  carry out environmental programs and
help create sustainable environmental systems in the public and private sectors as well as
increasing private sector investment in environmental systems.

Each year since  1995 the  Network has produced  an annual report  that documents the
activities and the results achieved by the EFCs. These annual reports are available via the
Office of the Chief Financial  Officer's web  site  at http://www.epa.gov/ocfo/index.htm
or   directly    on    the    Environmental    Finance   Program's    website   at
http://www.epa.gov/efinpage/efc.htm.  This  website,  and  the  comprehensive and
innovative  information contained  within it,  has become a highly  effective means of
communicating  all  aspects  of the  how-to-pay  issues  confronting  the  regulated
community.

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EXECUTIVE  SUMMARY
                                                              EFGN
Region 1 - New England Environmental Finance Center at
University of Southern Maine

The EFC at the University of Southern  Maine (NE/EFC) serves the six New England
states (U.S. EPA Region 1). The purpose of the NE/EFC is to advance the understanding
and practice  of "smart growth" throughout New England. From model ordinances to
financial instruments, a wide variety of smart growth tools are now available to local land
use decision makers and stakeholders. One new tool the NE/EFC, in collaboration with
EPA Region  1, created was the Next Communities Initiative (NCI), which is designed to
address the effective use and implementation of Smart Growth Principles and tools at the
local government level.

Another initiative was a program in water-related finance and outreach programming.
The NE/EFC brought drinking  water technical assistance providers together to discuss
services currently provided to small water systems in Maine, identify unmet needs of the
community  of technical
assistance providers and,
collaborate on ways to
address   these   needs.
Other  efforts  included
development  of an online
directory  of  watershed
funding sources for Region 1,  in collaboration  with the Region 10 EFC and EPA's
Office of Wetlands, Oceans and Watersheds. This directory will function in concert with
an existing directory for Region 10 and will be available online in 2005.

In 2004 the NE/EFC published a book: "ChangingMaine, 1960-2070." Topics addressed
include energy, the environment, land use and sprawl, forestry, agriculture, and fisheries.

Also published by the NE/EFC, "Some model  amendments to Maine (and other states')
land use control legislation" in the Maine Law Review, which eminated directly from the
NE/EFC's roundtable discussions in 2002 and  is designed to address the legal obstacles
to smart growth identified by roundtable participants.

Also in 2004, the NE/EFC developed most of a GIS inventory of protected lands using a
Geographic Markup Tool to allow online upgrades to conservation lands data sets.
From    model    ordinances    to    financial
instruments, a wide variety  of smart growth
tools  are  now  available  to  local  land  use
decision makers and stakeholders.

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EXECUTIVE SUMMARY
                                                                EF©N
Region 2 - EFC at Syracuse University at the Maxwell School
of Citizenship and Public Affairs

The Public  Management and Finance Program (PMFP), a hallmark project of the EFC,
provided assistance to more than fifty communities in New York. The PMFP has served
as a means  for municipal professionals and leaders from EPA Region 2 communities to
learn, explore, and discuss public finance and other issues relative to environmental
improvements. The PMFP  alliances and  collaboration  among  technical assistance
providers has  been instrumental in removing gaps in the delivery of technical assistance
to these communities.

Other services provided by the EFC during 2004 included assistance with rate setting and
analysis, facilitation of processes relative to environmental improvement, training events
focused on  environmental issues,  and
                                     the EFC has developed a distinctive
                                     niche  with   respect  to  generating
                                     public  interest  in   environmental
                                     infrastructure projects.
analyses of funding options. Of equal
importance during 2004 were activities
associated  with  the  Source  Water
Protection  project,  performed  under
the leadership of  the  New Mexico
EFC. The source water activities have led to support from a private foundation to build
upon the work accomplished through EPA support.

With regard to stakeholder outreach and education, the EFC has developed a distinctive
niche with respect to generating public interest in environmental infrastructure projects.
By customizing the outreach strategy for each community, the EFC found that public
education and outreach strategies were successful in relaying an understanding about the
impetus for a project, the process  of project development and the derivation of the
household cost.

The EFC has developed a unique role in the provision of customized training. In order to
impart the greatest benefit to communities without duplicating existing training available,
the EFC collaborates  with partners, such as the Rural Water Association,  RCAP
Solutions, NY Conference of  Mayors, Association of  Towns and more, to create
customized instructional  formats  focused  on smaller groups  and  individuals, and
incorporated a multitude of subject areas. During 2004, the EFC invited more than 1,400
local government officials  and technical assistance providers to its specialized training
events. The subjects addressed in these trainings included public finance, capital planning
and budgeting, municipal  bond issuance,  computer finance  models, rate  setting and
analysis,  asset management, environmental conflict management and resolution, project
financing procedures and regulations, and Process Communication Management.

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EXECUTIVE  SUMMARY
                                                                 EFGN
Region 3 - EFC at the University of Maryland

On September 1, 2004, the Environmental Finance Center switched from the University's
Sea Grant Program  to the Institute  for Governmental Service at the  University of
Maryland.  Leveraging the resources of three established University  of Maryland
programs - the EFC,  IGS, and Sea Grant - will result in new and innovative approaches
to building sustainable, livable communities throughout the Chesapeake Bay region.

The Maryland  EFC  continues  its focus on providing training  and information  on
watershed-based financing; investigating new and innovative uses of funding sources and
emerging  markets;   assisting  communities  and  local  governments  with  capacity
development; developing effective outreach  and education tools  for innovative  and
sustainable environmental finance approaches, and working with the Chesapeake Bay
Program, the University of Maryland Institute for Governmental Service,  and Maryland
Sea Grant College.
                                 the EFC shifted its focus from doing rate
                                 analyses to  offering individual  training
                                 on the rate analysis process itself
Much  of the  EFC's  work  has
been to assist community leaders
throughout the region  in their
efforts to finance  the restoration
and protection of the Chesapeake
Bay. In  an effort to identify funding opportunities for  financing this challenge, the
governors of the Bay states authorized the formation of the Chesapeake Bay Watershed
Blue Ribbon  Finance Panel  and requested  the EFC's  assistance  in staffing the Blue
Ribbon Finance Panel. The Panel was charged with evaluating possible funding sources
and financing mechanisms for reducing nutrient and sediment pollution throughout the
Bay  watershed. The  EFC played an integral role  in  developing program strategies,
providing technical support, as well as facilitating and coordinating panelist discussions.
The EFC has been presenting the final report, Saving a National Treasure: Financing
the Cleanup of the Chesapeake Bay, at Tributary Team meetings around Maryland.

The EFC continued to offer rate design and training workshops to elected officials, utility
operators, engineers and others interested in the concepts and technicalities of properly
managing and  sustaining utility  systems.  The previous years'   training  array was
broadened by the addition of several new courses outlining overall management and asset
preservation practices that can help the utility continue functioning over time. In an effort
to encourage community systems to take ownership of the rate analysis process, the EFC
shifted its focus from doing rate analyses to offering individual  training on the rate
analysis process itself, coupled  with training and assistance to system personnel as they
perform the analysis process themselves.

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EXECUTIVE SUMMARY
                                                                EF©N
Region 4 - EFC at University of North Carolina at Chapel Hill

The  UNC  EFC sees  one  of its major  roles  as  increasing the capacity  of other
organizations to address the financial aspects of environmental protection. As part of that
effort, the EFC has been asked to help integrate environmental management concepts into
the UNC School of Government resulting in a comprehensive two-day course on capital
finance for local government utility, management, and finance  officials.  As part of that
effort, the UNC EFC developed presentations on using municipal budgets effectively to
encourage  and  monitor environmental  management.  Other trainings  include  capital
planning and budgeting,  and capital  budgeting  with a water and wastewater  capital
overview.

Leadership has become  a  topic  of  great interest nationally for public water and
wastewater utility managers.  The  UNC EFC  presented financial management sessions
for utility managers from across the  country at the Kenan-Flagler Business School's
executive education program designed for public utility leaders.

The  EFC participated  in an annual  work session for Region 4 tribal environmental
managers. After making a presentation about different financial management tools and
strategies  available  to
communities,  the   EFC
met with several tribes in
the process of developing
water systems.
the UNC EFC works with decision makers to
assess   the   effectiveness   of  environmental
finance policies at a regional or state level
The EFC devoted a significant amount of resources in 2004 to providing direct support to
utility managers and practitioners throughout the Southeast.  This technical assistance
included e-mail and phone consultations; management of listservs; site  visits; and the
publication of guides and updates on key issues.

In addition to direct community outreach, the UNC EFC works with decision makers to
assess the effectiveness of environmental finance policies at a regional or  state level, and
to improve those policies as  a way of  supporting local efforts.  Major policy efforts in
2004  included  assessing drinking water and  wastewater infrastructure  funding  in
Appalachia and dissemination of the results; preparation of an inventory of different
funding approaches for on-site  wastewater systems;  participation in an  advisory panel
addressing agricultural waste disposal challenges; participation with the North Carolina
State Revolving Fund Coordinator to present information on disadvantaged community
programs, and developing a statewide model stormwater ordinance.

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EXECUTIVE SUMMARY
                                                                EFGN
Region 4 - EFC at University of Louisville

The Louisville EFC continued to broaden its training and technical assistance services
with respect to contaminated land revitalization, working with a number of different
cities  on brownfield redevelopment, smart growth planning for area  development
agencies, and  working  with  municipalities and states on  the  roles environmental
insurance can play in mitigating risks and attracting investments in reclamation.

The EFC also  hosted the international conference on planning for urban  sustainability
from which it is preparing a series of papers for dissemination. As part of  its work with
EPA, the EFC provided  input to EPA's  Environmental Financial Advisory Board as it
addressed RCRA financial assurance and ways of providing greater certainty over firms'
financial capacity to remediate after completing ongoing operations.

Another major effort for the EFC is the continued expansion of its Practice  Guides series
of briefing papers for local officials and local volunteer and citizen committee members.
The series  is focused on aspects of land  use planning and  information systems  for
promotion of urban infill, brownfield redevelopment and other aspects of smarter urban
growth.

The Center also provided direct technical assistance services to clients in Region  4 and
elsewhere, and contributed to providing training and technical assistance through a range
of other publications and presentations.  These dissemination products have  drawn on
information collection through EFC funding, but, in most instances, also have drawn
from or built on data gathered and research conducted by Center Staff and Associates.
Publications span professional
          trade  press   and
          outlets,   since   all
          policy  discussions
         contribute  to  more
          and  cost-efficient
journals,
academic
influence
and  can
effective
environmental finance practice
The    Louisville   EFC    is    continuing
expansion of its Practice  Guides series of
briefing papers for local officials and local
volunteer and citizen committee members
As part of its work with the Environmental Financial Advisory Board (EFAB), the EFC
continued work on financial assurance requirements under RCRA regulations in order to
examine  some  issues associated with adding a new financial obligation for potentially
polluting small businesses.

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EXECUTIVE SUMMARY
                                                               EF©N
Region 5 - EFC at the Maxine Levin College of Urban Affairs at
Cleveland State University

The Great Lakes Environmental Finance Center (GLEFC) provides technical assistance,
training, and applied research as a resource for state and local governments, and public,
private, and non-profit organizations in EPA's Region 5. Services include financial and
economic analysis and strategies; policy analysis and planning; brownfields community
advisory  services;  research  and  information  services; and training seminars  and
conferences. The GLEFC utilizes many tools to assists clients, including financial and
budget analysis, market and impact analysis, best practice reviews, training seminars and
conferences, focus  groups and  community visioning/strategic planning processes, and
environmental planning and program evaluation.

GLEFC  operations  include several new projects, as well as projects that are driven by
continuing partnerships with federal, state and local governments spanning two or more
years, and second and third phases of externally funded projects.  Brownfield technical
assistance has been a key program for
the GLEFC, which is in its fourth year
of convening  the  Brownfields  One-
Stop-Shop (BOSS) forum of federal,
Brownfield technical assistance  has
been a key program for the GLEFC
state, and local government economic
development and environmental officials, commercial and investment bankers, insurance
executives,  foundation officials, and developers  to review brownfield redevelopment
projects seeking financial  and programmatic support. In 2004, the GLEFC merged the
BOSS Forum with the Ohio Brownfield Finance Partnership convened by the Ohio Water
Development Authority and moved the  site of the Forum meetings to capitalize on the
emerging state-wide market for brownfield redevelopment projects.

The  GLEFC also focused  on several  other  urban  projects  designed  to  reclaim
environmentally contaminated properties.  To list just a  few: the GLEFC developed an
industrial land bank strategy and business plan for the City of Cleveland to enable the
City to acquire and assemble larger landscapes of property for economic  development
purposes. The GLEFC assisted Cuyahoga County in defining the criteria  for selecting
environmental engineering firms to conduct brownfield site assessments. At the request
of EPA's Region 5 office, the GLEFC initiated a national best practices scan to identify
innovation in financing lead remediation and abatement programs. The best practice scan
is being conducted for a consortium of local and federal agencies.

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EXECUTIVE  SUMMARY
                                                                 EFGN
Region 6 - EFC at the New Mexico Institute of Mining and Technology

The New Mexico EFC's core mission is to help state, local, and tribal governments meet
environmental  infrastructure  needs  and regulatory compliance through state and local
capacity  building  and  technical   information  transfer. Capacity  building  includes
enhancing technical,  managerial, and  financial capabilities to achieve consistent and
sustainable regulatory compliance and to develop sustainable infrastructure.
                          The NM EFC's core mission is to help state, local, and
                          tribal governments meet environmental needs through
                          capacity building and technical information transfer.
The  NM EFC  assists in
local capacity building by
examining     alternative
approaches  to  meeting
regulatory compliance or
environmental infrastructure needs; empowering communities to act as the "drivers" for
their own projects; assisting with the procurement of professional services; presenting
funding  alternatives;  acting  as  a  bridge  between  federal,  state,  local  and tribal
governments; presenting neutral analyses of issues or projects, and gathering stakeholder
input.

The  NM  EFC  has been extremely active over the past year and has experienced
significant growth in  its program activities. Some major projects included:  capacity
development  activities for Region  6 states; capacity development program for New
Mexico;  capacity development for Tribal water systems; Tribal Operator certification
program; Pilot Project on the feasibility analysis of water supply for small public water
systems; resource-based or unified source water protection project; independent analysis
of FCS leak  detection technology for Albuquerque; water system collaboration pilot
project for New Mexico; water system collaboration project for New Mexico; and the
Public Management Finance Program (PMFP).

As an illustration of some of their work with  Tribes, in 2004 the New Mexico EFC
continued its efforts  to  assist Tribal water systems  improve public  health protection
through stepped up activities involving the Tribal Operator Certification Program. One of
the measurements of the overall effectiveness of the program is the compliance record of
the Tribal water systems.

In addition, the NM EFC intends to introduce several new initiatives for 2005 that build
upon the work efforts of the EFC for the past several  years. Among them are advanced
asset management for smaller water systems and work with a Tribal water system to test
a new technology for arsenic removal.

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EXECUTIVE SUMMARY
                                                                EF©N
Region 9 - EFC at California State University at Hayward

The Environmental Finance Center located at California State University is working for
greener communities through cleaner business by advancing the environmental industry
and promoting pollution prevention and source reduction.  The  EFC's mission is three-
pronged: 1) to encourage business to adopt source reduction and pollution prevention; 2)
to encourage consumers to choose green business and green business products, and 3) to
help communities promote cleaner business.

To that end, working with both the private and public sectors, EFC9 pursues its mission
through numerous tools including green business development, environmental mediation,
environmental  business  incubation,   finance  programs  &  directories,  charrettes,
conferences & workshops, research publications and reports,  and hands-on assistance to
small business.
                             The Region 9 EFC is working for greener
                             communities through cleaner business by
                             advancing the environmental industry and
                             promoting pollution prevention
Throughout  the  past  year
EFC9 has continued to work
with  both the  public  and
private  sectors to  promote
cleaner business. After laying
the groundwork for several
new initiatives, EFC9 has accomplished much in 2004 on the following projects: Western
States green  business program coordination,  business and  environment in Hawaii,
environmentally beneficial  behavior in television,  continued follow-up to the Phoenix
Arizona brickyard charrette, Region  9 Tribal  initiative,  and  the Western Regional
Pollution Prevention Network conference workshops and sessions.

Looking forward to 2005, the EFC will be undertaking several major new initiatives. The
EFC will conduct two Green Business Program (GBP) summits to establish guidelines
and a hierarchy for operating a statewide GBP program. Another effort involves product
placement on TV and in the film industry known as ACT Environmentally.  The EFC will
expand on its  successful work  to date and increase  its ability to place environmental
products in more productions as well as showcase  how these products are beneficial to
the environment. The EFC also expects to work with salons and  cosmetology schools in
California to determine the  potential health and environmental impacts of products used
in salons.  The  focus of this pilot will be on common toxic salon products  and  potential
alternatives. The EFC will  identify available alternatives  to  key toxic chemicals and
assess the barriers and opportunities within salons to adopt these alternatives.

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EXECUTIVE  SUMMARY
                                                                EFGN
                                   The major theme for the EFC this year
                                   has been the development of additional
                                   innovative software financing tools
Region 10 - EFC at Boise State University

The Boise State EFC serves the Region 10 communities of the Pacific Northwest and the
Intermountain  states  of Alaska,  Idaho, Oregon and  Washington. The  EFC creates
computer-based techniques and programs that provide important information for decision
makers to use in financing environmental systems.  Because of its specialized services
and tools, the Boise State EFC has also served other communities throughout the country.

The major theme for the EFC this year has been the development of additional innovative
software financing tools to respond to the needs of water and wastewater systems, as well
as stakeholders involved in addressing non-point source water pollution challenges. The
following  are  some  of the  new
software tools made available to the
regulated community throughout the
country: Rate Checkup - a full-cost
pricing  model  for water  systems;
System  Development Fee Model -
created to help water systems calculate the impact of  new development and to design
impact fees to recover those costs; Electronic Sanitary Survey -  a  sanitary survey data
collection  system operated on hand-held PDAs; Plan2Fund for Idaho - a financing and
implementation model for application to the Clean Water Act  Section  319 financing
program;  One Plan BMP Financing Model  -  identifies opportunities  for watershed
stakeholders to purchase additional BMPs to optimize water quality on privately-owned
land;  Arsenic  Exemption Tool  -  assists staff  unfamiliar  with  financial  analysis  by
automatically  generating a financial capacity report and, Capacity Tracker - supplies an
annual "report card" on a utility system's financial capacity and provides trend analysis
as well.

Another important focus of the EFC has been on watershed financing activities. The EFC
presented  ten watershed funding workshops throughout  Region  10 in 2004.  Some of
these workshops  were at the intermediate level (focused on watershed stakeholders who
are familiar with the watershed  process but lack the knowledge and skills needed to
weave together a funding strategy) and several were tailored to communities that have
unique funding challenges. As part of the comprehensive financing tools made available
to stakeholders working on watershed protection and restoration,  workshop participants
were provided with the Environmental Finance Center's database of funding resources,
which demonstrated how to acquire information on EPA and other federal, state, local
and private funding sources. Among  the tools developed by the  EFC is a Directory of
Watershed Resources, a database of funding sources that is being expanded nationally.

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NEW ENGLAND EFC AT THE UNIVERSITY OF SOUTHERN MAINE
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      je
    .chool
2004 Annual Report of the Environmental
Finance Center Network

Region 1 - New England Environmental
Finance Center at University of Southern Maine
The University of Southern Maine  "was established in 2000 as
the Region 1 New England Environmental Finance Center

INTRODUCTION
   The EFC at the University of Southern Maine (NE/EFC) serves the six New England
   states (U.S. EPA Region 1). The purpose of the NE/EFC is to further the joint goals
   of the U.S. EPA and the Muskie School of researching, publishing, and extending
   creative  approaches  to environmental  protection and management,  especially
   respecting the associated "how-to-pay" questions. In particular, the Center works to
   advance the understanding and practice of "smart growth" throughout New England;
   in building local capacity to deal with related issues; and in developing and applying
   techniques that go "beyond compliance" with government regulations.

   The NE/EFC at the University of Southern Maine, housed in the Muskie School of
   Public Service, has a primary focus on land use and conservation issues. The NE/EFC
   began its  activities 2001, and has  undertaken a broad range of initiatives in the
   intervening four years. Calendar year 2004 was a period of considerable activity in
   numerous areas.
REGION 1

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NEW ENGLAND EFC AT THE UNIVERSITY OF SOUTHERN  MAINE
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ACCOMPLISHMENTS

NEXT COMMUNITIES INITIATIVE

   From model ordinances to financial instruments, a wide variety of smart growth tools
   are now available to local land use decision makers and stakeholders. Among the
   primary lessons of the NE/EFC experience is not that people are generally unfamiliar
   with these tools and the principles on which they are based; rather, the problem arises
   when people try to implement them at the local level. In other words, the real
   obstacles to smart growth in New England are not technical or knowledge-based, but
   attitudinal, institutional, and ultimately political in nature.  This  observation led the
   NE/EFC,  in  collaboration  with  EPA Region  1, to create  the  Next Communities
   Initiative (NCI), to address the effective use and implementation  of Smart Growth
   Principles  and tools  at  the  local  government level.  NCI is  training motivated
   community leaders and lay planners  to make smart growth-oriented  change happen in
   their cities and towns.

   The first step, in calendar  year 2004, was development of a 3-day Interactive and
   case-based workshop series to help concerned citizens to 1) learn that change toward
   more sustainable land use is both desirable and possible; 2) gain an understanding of
   the intricacies  and subtleties  of local  government  and politics;  and 3) explore
   obstacles to smart growth and how  they may be overcome at the local level. In fall
   2004, the NE/EFC conducted two  pilot workshops in collaboration  with partner
   organizations in northern and southern New England  (Maine,  Massachusetts and
   Rhode Island).  The  pilot workshops were evaluated  as  extremely  successful by
   participants.  The next expected step is a "Train the Trainer" program and workshops
   series, including a complete training  manual to be posted on the NE/EFC website.

   The curriculum now exists as three eight-hour, highly interactive and experiential
   sessions:
       Session  One:  Participants come  to understand  "sprawl"  not as  a technical
       problem,  but  as (in Maine  terms) a "wicked" problem - one that is ill- and
       variously-defined,  features a lack of consensus on its causes, and  lacks obvious
       solutions that don't involve challenging trade-offs and (often) fierce, value-based
       opposition.  Participants gain  insights  to  become informed leaders  in the
       discussion of sprawl, and advocates of solutions that seek a wider public  good
       without undue injury  to private interests and concerns. Participants  leave the
       session with a mindset that smart growth is an objective worthy of pursuit, and
       ready to explore how to navigate  change through the local political system.
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       Session Two: This session educates individuals about local government processes,
       both formal and informal. It helps those interested in  changing local land use
       policies understand the twists and turns of local government, what motivates and
       constrains it, how to mobilize and support the town's opinion leaders and citizens,
       and how to  navigate the system to effect change.

       Session Three:  Conflict  most  often  attends  change. This  session teaches
       community leaders basic skills to deal constructively with conflict over both basic
       values  and  perceived interests. It prepares them to treat both personal and social
       conflict in the community setting. It also includes a final  capstone game where the
       skills, ideas, and information learned in the previous sessions are  applied to a
       practical case.

   Building on the successful delivery of the first set of workshops, the NE/EFC aims to
   move the NCI  curriculum into a train-the-trainer format. By equipping organizations
   with these  curriculum materials and a comprehensive instructor's manual, it should be
   possible to reach a broader audience and make a substantial contribution to smart
   growth-oriented local land use change.

WATER PROGRAM

   In  2004 the NE/EFC initiated  a program in  water-related finance and outreach
   programming.

   The first event of the year was in March, in which the NE/EFC brought drinking
   water-related technical assistance providers together to 1) discuss services currently
   provided to small water systems  in Maine; 2) identify unmet needs of the community
   of technical assistance providers; and, 3)  collaborate on ways to address these needs.
   This was done in collaboration with the Region 2 EFC.

   A subsequent task was to provide an evaluation of stormwater finance options for a
   group  of  municipalities working collaboratively  under an interlocal  stormwater
   agreement.   The   report   from   this   effort    is   publication   #04-05   at
   (http://efc.muskie.usm.maine.edu/docs).

   Other  efforts included  development of  an online directory of watershed funding
   sources for Region 1, in collaboration with the Region 10 EFC and the EPA Office of


REGION 1

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NEW  ENGLAND EFC AT THE UNIVERSITY OF SOUTHERN MAINE
                                                                 EF@N
   Wetlands, Oceans, and Watersheds.  This directory,  which will function in concert
   with an existing directory for Region 10, will be available online in 2005.

   Other water-related initiatives under  development in 2004 included investigation of
   software  training needs in basic financial management  for water system managers;
   organization of several utility finance meetings and conferences for the first half of
   2005; and developing a beach closure finance workshop series with EPA Region 1 for
   early 2005.

IMPLEMENTATION OF RECOMMENDATIONS TO STRENGTHEN MAINE'S
RURAL ECONOMY AND THE NATURAL RESOURCES-BASED INDUSTRIES
ON WHICH THEY ARE BASED

   In 2004 the NE/EFC provided chairmanship of a "Steering Committee to Oversee
   Implementation of Recommendations from the Elaine House Conference on Maine's
   Natural Resource-based Industries." The November 2003 Elaine House Conference
   produced  75  recommendations for action in the  agriculture,  aquaculture, forestry,
   fisheries, and tourism  sectors that are the foundation of Maine's  rural  economy and
   landscape. As documented in its December 2004 report to the  Governor (which can
   be  viewed  at  http://www.state.me.us/spo/natural/gov), the  Steering Committee
   oversaw significant progress on implementation of 60 of these recommendations by
   the Executive agencies directly responsible.

ELAINE HOUSE CONFERENCE ON THE CREATIVE ECONOMY

   In 2004 the NE/EFC served on the steering committee (and as the guiding force) for a
   "Elaine House  Conference" on  the Creative Economy, the goal of which was  to
   create an action plan to maximize contributions of the creative arts  and artists to the
   revitalization of Maine's service centers and downtowns. The  NE/EFC also led the
   development  of a pathbreaking report describing  measurement and analysis of the
   creative   economy   in   Maine,    available   as  publication   #04-02   at
   http://efc.muskie.usm.maine.edu/pubs.htm.

CHANGING MAINE, 1960 - 2010

   In 2004 the NE/EFC  published a book: "Changing Maine,  1960-2010," designed to
   formulate and give circulation to a new, basic understanding of Maine and its place in
   the world today, and to guide civic  life and dialogue in the coming decade.  The focus
   of each chapter is on policy  and policymaking as they have  exerted influence on

REGION 1

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NEW  ENGLAND EFC AT THE UNIVERSITY OF SOUTHERN MAINE
   events.  Topics addressed  include energy, the environment,  land  use  and sprawl,
   forestry, agriculture, and fisheries, and many others. Chapters are based on lectures
   from  a  series broadcast by  Maine Public Radio to  a  listening audience  of
   approximately  15,000  persons in Atlantic  Canada, Maine,  New Hampshire, and
   northern Massachusetts. The book summary can be viewed as publication #04-05 at
   http://efc.muskie.usm.maine.edu/pubs.htm.

LAND USE LAW PROVISIONS
   In 2004 the  NE/EFC  published "Some model  amendments to Maine (and other
   states')  land  use control  legislation" in Maine Law Review.  This document is
   available  as  publication  #04-06 at http://efc.muskie.usm.maine.edu/pubs.htm.  It
   emanated directly from the NE/EFC's roundtable discussions in 2002 and is designed
   to address the legal obstacles to  smart growth identified by roundtable participants.
   Also  the NE/EFC assisted  (and continues  to  assist  into 2005) the  Community
   Preservation Advisory Committee of the Maine Legislature, GrowSmart Maine, and
   others in researching  options for a legislative  agenda based  upon these model
   amendments.
LAND FOR MAINE'S FUTURE EVALUATION

   In 2004 the NE/EFC released a report evaluating the State of Maine's "Land
   for Maine's Future" program (LMF), which had spent $85  million in state
   bond  proceeds for open space acquisition and protection. The report found the
   LMF  program to be  well-conceived,  wisely  administered,  and  widely
   supported among citizens. Participants  and observers from across the state
   agreed that its mission and practices are solidly grounded; that it has avoided
   becoming politicized; and that it  has evolved thoughtfully  to respond to  new
   understandings of the role of land conservation and economic development in
   Maine. The general perception is that LMF well and truly serves the people of
   Maine. In general, it was observed to be a fine example of a public learning
   organization:  open and transparent in  its processes; welcoming  of public
   participation  and input; careful  and strategic in its investment  of public
   monies  to  optimize among the  highest public values; and reflective  and
   adaptive to changing circumstances and public needs.

   The NE/EFC  evaluation concluded  that Maine  land conservation especially under
   LMF  is  rightly to be  viewed as a basic infrastructure investment in the  future of
   Maine's environment,  economy, and cultural heritage. Like  our rail and highway


REGION  1

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NEW  ENGLAND EFC AT THE UNIVERSITY OF SOUTHERN MAINE
                                                                  EF@N
   systems, it is a foundation upon which coming generations of Maine people will build
   their economy and culture, to reflect Maine values, needs, priorities, and diversity. To
   realize the greatest return on this investment, Maine people might best regard the
   LMF not  as an end in itself, but as  a  tool or instrument of their larger, abiding
   purposes:   sustainable  economic  development,  environmental  stewardship,  and
   community building. The NE/EFC observed that there continues to be urgent need for
   a state-funded land conservation effort  in Maine, for which there is broad  public
   support; that LMF both deserves and needs to continue its efforts for the foreseeable
   future; and that new funding is needed at this time, to continue this important effort.
   The    LMF     report    is    available    as    publication    #04-01    at
   http://efc.muskie.usm.maine.edu/pubs.htm.

GIS INVENTORY OF PROTECTED LANDS DATA

   In 2004 the NE/EFC developed most of a  Geographic Markup Tool to allow online
   upgrades  to conservation lands data sets.  Moving into the beginning of 2005,
   complementary applications and analysis  products  are  being incorporated into the
   tool,  to  contribute to the establishment  of a  unified framework  for  capturing
   conservation lands data in Maine and EPA Region  1 as a whole. The NE/EFC will
   work with government agencies and spatial  technology firms to develop technical and
   data partnerships applicable to conservation lands data capture in EPA Region 1.

OTHER EFFORTS

   •   Continued development of an online course in conservation finance, which will be
       made available online in 2005.

   •   Continued a scoping effort for costs  of sprawl database for New England. Held
       several planning meetings, reviewed  literature, and formulated an  approach  and
       timeline for producing deliverables.

   •   Continued an  inventory of state innovations in smart  growth policy in New
       England. Contacted numerous program  administrators in each New England state,
       began writing a document that will provide state policymakers a reference tool.

   •   Continued work on a  smart growth  video project, including providing staff
       support to the  filming  of interviews  and  scheduling filming days for case study
       projects.
REGION  1

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NEW ENGLAND  EFC AT THE UNIVERSITY OF SOUTHERN  MAINE
   •  Began work on the "Forum on Residential Density", including identifying expert
      categories for the Directorate to be convened, and revising a document that will
      be used to launch the Forum.

   •  Through teleconferences and  work  on joint documents,  served  on several
      workgroups for EPA's Environmental Finance Advisory Board.

APPENDIX 1
OUTPUT MEASURES FOR CALENDAR YEAR 2004

We use three categories of output measures, according to EPA's "Measurement Fact
Sheet" at: www.epa.gov/region09/funding/rcra measurements.html. These categories are
activities, outcomes, and impacts. We expanded the second category to include outcomes
specific to the type of work we do in Region 1.

ACTIVITIES

Media produced

Books and Articles posted on our website (http://efc.muskie.usm.maine.edu/pubs.htm).


1.  Land for  Maine's  Future  Program:  Increasing the Return on a Sound Public
   Investment (#04-01; Executive Summary; Full Report).

2.  The Creative Economy in Maine: Measurement and Analysis (#04-02).

3.  Changing Maine: 1960 - 2010 (#04-03).

4.  Smart  Growth,  State Policy and Public Process in Maine:  the  Dunstan  Crossing
   Experience (#04-04).

5.  Stormwater  Utility Fees:  Considerations &  Options for Inter local Stormwater
   Working Group (#04-05).

6.  Some model amendments to Maine  (and other states') land use  control legislation
   (#04-06).
REGION  1

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NEW ENGLAND EFC AT THE UNIVERSITY OF  SOUTHERN  MAINE
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Workshops held

Freeport, Maine. Organized a meeting of 15 drinking-water related technical assistance
providers in Maine to  discuss the  services that are currently provided  to small water
systems in Maine; to identify unmet needs; and to identify ways to address these needs.
Worked in collaboration  with the EFC  in  Region 2  (Kim Farrell  from  Syracuse
University attended and gave a presentation).

Portland, Maine. Through efforts of a Muskie School graduate student working with the
Finance Center, the NE/EFC organized, hosted, and presented at the conference "Using
Sustainable Development  as a Tool for  Responsible Decision Making: A  Land Use
Perspective."  Over 100  people attended including  planning board members, town
planners, architects,  developers, transportation planners,  and leaders from civic  and
environmental non-profits (4/8/04)

Southwest Harbor, Maine. Moderated a forum and facilitated a public input session, on
the question  of  how  much   recreational use will be  allowed  on newly  acquired
conservation lands (for the Appalachian Mountain  Club, 10/2/04).

Portland, Maine.  Spoke  about Working Waterfronts and  moderated  a  forum titled
"Development,  conservation,  and  preservation  of land  and  buildings: strategies for
successful co-existence". (Greater Portland Neighborhoods Coalition, 12/8/04).

Portland, Maine. Moderated a forum titled "Sprawl: It's not just a Cumberland County
phenomenon". (Greater Portland Neighborhoods Coalition, 12/8/04).

Augusta, Maine. Moderated a forum titled "Getting to Regionalization" (Grow Smart
Maine Summit,  12/10/04).

Other (media events, press releases, etc.

Regular postings of events and publications on our website.
REGION 1

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NEW ENGLAND EFC AT THE UNIVERSITY OF  SOUTHERN  MAINE
Outcomes

Customer satisfaction/awareness

Reports from events we coordinated or assisted with in 2004 were generally outstanding.
For example, in one review from a conference where we spoke and moderated several
sessions  (Greater Portland Neighborhoods Conference,  Portland,  Maine), we heard
"overwhelming accolades  for directing a large group  of people through a seamlessly
delivered performance." Similarly, another group  we assisted wrote  us this note: "Your
work at the annual  meeting was a significant  turning point for the organization.  The
survey you devised and the way you presented it  made it easy for AMC Maine Chapter
annual meeting participants to express their position on wilderness protection. The results
were clear, important and significant."

Changes in customer behavior

Our  work would  not  generally result in trackable behavior changes (see note under
'Impacts' below).

Improved regulatory compliance

Similarly, our work to date has had little to do directly with compliance issues.

Improved legislation with respect to land use

See "Mediaproduced' above.  In 2004 we appeared before the Community Preservation
Advisory Committee of the Maine Legislature to describe the land use law provisions we
proposed. Discussions about how these provisions  might be further improved are
ongoing.

Number of smart growth-oriented technical assistance responses provided

Eleven technical assistance responses were provided to individuals or organizations
requesting assistance or information about finance  or planning of smart growth-oriented
projects in New England.
REGION 1

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NEW ENGLAND EFC AT THE UNIVERSITY OF SOUTHERN MAINE
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Impacts

Note: The NE/EFC does not focus on achieving the types of impacts given as examples
in an EPA fact sheet on outcome measures (recycling, solid waste reduction, and energy
conservation; at: www.epa.gov/region09/funding/rcra_measurements.html).  Our work is
focused on reducing sprawl, so impacts of our activities are about encouragement of good
development and  preventing  bad development.  For  example we  help identify  and
recommend  modifications in land use policy at the state level. Impacts of some of these
changes might only be observable as  a decline in the number of standard subdivisions in
the state over a long period of time. Thoroughly quantifying these impacts would require
years and a  study design capable of separating out many nested influences. Our view is
that an annual estimate of "planning outcomes" is  not a realistic goal, because results of
systemic changes in land use  planning and policy take  much longer than one year to
transpire, track, and interpret.

With this caveat understood, below  are our broad estimations of the types of impacts
(benefits) that our 2004 activities may have had.

1.  A clearer  understanding  of tradeoffs  involved in choosing  various methods for
    financing stormwater utilities.

2.  A clearer understanding of the need for public investment in open space acquisition.

3.  A wider understanding of the role that the  creative economy  has in supporting
    downtown revitalization efforts.

4.  A broader understanding  of the social,  political,  and other changes that have
    transpired in Maine in the last 40 years and how they should shape current policy
    discussions.

5.  A broader understanding among land trusts and other conservation groups of the need
    for incorporation of growth-related  criteria in their land acquisition prioritization
    systems.

6.  Similarly,  a wider understanding of the role  that  a  vibrant natural resource-based
    economy plays in the  protection  of the landscape, the restraint  of sprawl, and the
    promotion of smart growth.
REGION 1

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NEW ENGLAND EFC AT THE UNIVERSITY OF SOUTHERN MAINE
7.  A greater chance that novel, comprehensive innovations in land use law might be
   adopted in Maine and throughout New England.

Summary

We feel that in the categories of activities, outcomes, and impacts, we are progressing
toward the goals of the NE/EFC and contributing in a tangible way to the goals of the
EFCN.
REGION  1

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                                                Region 2
             Environmental Finance Center
             MAXWELL SCHOOL OF SYRACUSE UNIVERS ITY
  2004 Annual Report of the
  Environmental Finance Center Network

  Region 2 - EFC at Syracuse University
  at the Maxwell School of Citizenship
  and Public Affairs
  The EFC at the Maxwell School at Syracuse University "was
  established in 1993 as the Region 2 Environmental Finance
  Center.  The EFC serves  the States of New York and New
  Jersey as well as Puerto Rico and the U.S. Virgin Islands.

INTRODUCTION
     The EPA Region 2 Environmental Finance Center (EFC) at Syracuse University's
     Maxwell School  of Citizenship and Public Affairs was established in 1993.
  During 2004, the Maxwell EFC continued to  build a considerable record of
  accomplishment. The Public Management and Finance Program (PMFP), a hallmark
  project of the EFC, continues to thrive along with requests for other EFC services.
  Over the course of the past year, the PMFP provided assistance to more than fifty
  communities, and has been very well-received in New York because it enables
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   communities to better understand the relationship  environmental finance has with
   other  areas  of  government  business,  particularly  economic  or  community
   development. The alliances and collaboration among technical assistance providers
   has  been very instrumental  in  removing  the  gaps in the delivery  of technical
   assistance,  although all partners of the PMFP are cognizant that the cumulative of
   needs among communities exceed the resources available.  Other services provided
   by the EFC during 2004 included assistance with rate setting and analysis, facilitation
   of processes relative  to  environmental improvement,  training  events  focused  on
   environmental issues, and analyses of funding options.

   The  United States Department of Agriculture (USDA) has continued to contribute
   support for the  water and wastewater related  activities of the PMFP, awarding
   $205,300 to the Region 2 EFC for 2003-4 program  activities.  The bulk of activities
   performed under the USDA grant involved specific municipal water or wastewater
   projects in which there was a need to facilitate the processes involved in the planning,
   financing, and implementation phases.  These processes involved community-specific
   public outreach and  education strategies relative to the costs associated with water or
   wastewater projects, a critical link needed to generate public awareness and support.
   In addition to the process facets of specific projects, the EFC targeted the smallest
   communities of New York  State for training and capacity building initiatives. The
   EFC ended the year with  the submission  of a  proposal to the USDA Technical
   Assistance and Training Program (TAT), including seven other EFCs (KY, ME, MD,
   NC,  CA, ID and NM) in the PMFP water and wastewater activities. It is hopeful that
   the USDA will see the value and have the means to support a project implemented by
   the Environmental Finance Center Network, although it is understood that funding for
   such programs has declined due to homeland security and  other national budgetary
   priorities.

   Of equal importance during 2004 were activities associated with the  Source Water
   Protection project, performed under the leadership  of the New Mexico EFC. The
   source water activities have led to support from a private foundation to build upon the
   work accomplished through  EPA support.   Additionally, the EFC  planned and
   implemented a unique series of training events, the "Panels  on Wastewater for Local
   Representatives", which were developed in  collaboration with the NYS Department
   of Environmental Conservation, the NY Rural Water Association, and the NY Water
   Environment Association.  The EFC expects 2005 to be a year in which past and
   present efforts will be built upon and continue to flourish, thus enhancing the services
   it provides to EPA Region 2.
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ON-GOING ACTIVITIES AND PROJECTS

   •   Attendance at professional association meetings and presentations about the EFC
       Network, and topic-specific issues including capital planning and financing, the
       concepts of water and wastewater rate setting, collaborative planning, capacity
       building, and sustainable community development.

   •   Participating in planning prospective projects with government, nonprofit, and
       private sector partners of the Public Management and Finance Program. This
       includes projects that can receive support from private foundations.

   •   Collaborating with other technical assistance organizations to provide assistance
       to   rural   communities   seeking  to  address  environmental  infrastructure
       improvement projects.

   •   Serving as a content  provider to government and non-profit organizations that
       provide assistance and conduct workshops for municipal decision-makers.

   •   Continued emphasis  on  collaborating with  other universities and  non-profit
       organizations  to  develop   proposals  addressing  environmental  concerns,
       particularly  those relating to  water  issues  but  also including  brownfields
       redevelopment, lead contamination and more.

   •   Responding to requests from communities for assistance ranging from how to
       finance major water  system  repairs  and how to develop capital budgets for
       environmental improvements to conducting focus groups to elicit public input or
       assess public awareness and support of environmental projects.

   •   Continuation of tasks and activities  relative  to specific projects,  such  as the
       Source Water Project,  rate analysis, and customized forms of assistance in cost
       recovery.

ACCOMPLISHMENTS

PUBLIC MANAGEMENT AND FINANCE PROGRAM

   Since EFC 2 was established at the Maxwell School,  it has become a resource for
   municipal professionals and  other community representatives through a variety of
   presentations, workshops, and interactive forums. The  Public Management  and
   Finance Program (PMFP), officially launched in April 2001, has served as a means
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   for municipal  professionals and leaders from EPA Region 2 communities to learn,
   explore,  and  discuss public finance and  other issues relative to environmental
   improvements. The PMFP has received support from the United States Department
   of Agriculture to continue working with rural communities struggling with water or
   wastewater infrastructure development projects.

   During 2004,  the PMFP responded to requests from local government officials to
   hold a topic-specific forum for local officials for the purpose of learning pertinent
   environment-related information. The forum was held in February 2004 at the Town
   of Alexandria  Municipal Building.  A representative of the New York Office of the
   State Comptroller (NYS OSC)  spoke  with more than twenty  five  municipal
   representatives about implementing intermunicipal agreements as a means to provide
   enhanced or expanded services  to their constituencies.  Representatives of abutting
   communities found that if water and  wastewater projects are planned  cooperatively,
   the costs can be substantially less.  The February forum consisted of a presentation by
   the  NYS  OSC regarding  the  basics  of  intermunicipal  agreements, including
   successful and unsuccessful attempts to create such agreements, and was followed by
   a facilitated discussion during which  municipal representatives shared their thoughts
   and community-specific concerns.  Due to the success of this event, the EFC plans to
   host additional forums for local representatives in 2005. The EFC hopes to engage
   private sector engineering and finance firms to contribute to the sponsorship of these
   forums. Aside from  the monetary value of providing support to the forums, the
   private sector has significant expertise to offer and will be asked to supplement some
   of  these sessions  with presentations and  discussions  about  their experiences as
   appropriate and fitting to selected topics.

   There is little change in the primary functions of the PMFP to facilitate partnerships
   among technical  assistance community, provide  public  outreach  and education
   relative to environmental improvements,  and training to local government  officials
   and technical  assistance providers.   These  three functions, or components,  of the
   PMFP can be  critical links to the ability  of a community to successfully develop a
   project.  The sub-sections below identify those links. (Refer to the 2002 and 2003
   Annual reports for additional information about the components.)

TECHNICAL ASSISTANCE PARTNERSHIPS

   The EFC sponsors quarterly "Technical Assistance Partnership Forums"  for the
   purpose  of promoting and sustaining  collegial  relationships among  technical
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   assistance providers (TAPs).  During 2004 the Forums were attended by an average
   of 30 TAPs representing an average of 22 nonprofit, public, private and academic
   organizations that serve New York as well as other states. The Forums have created
   an environment in which an exchange of information reduces duplication of efforts,
   thereby maximizing technical  assistance resources available to other communities,
   and  promotes efforts that  complement one another,  enhancing the ability of the
   communities they serve to access new or additional resources.  It is the only vehicle
   available to all TAPs to meet on a regular basis to 1) share information about projects
   without interruptions; 2)  discuss solutions to  particular situations and "brainstorm"
   relevant ideas; 3) learn about new statutes, procedures, or guidelines relative to their
   fields; and 4) receive new or advanced training.  There are immense values contained
   in this activity if one  considers the benefit to small communities that is  imparted
   when  TAPs  communicate  with  one  another  about  project   planning  and
   implementation.  The Forums provide ample opportunity for TAPs to "connect" with
   one  another and facilitate communication about community  infrastructure  projects
   and  ideas.  The Forums  begin in the  morning with each TAP briefly mentioning
   projects or issues s/he  is  working with, followed by a specific topic of discussion -
   alternative financing,  funding  procedures, conflict  management, and  stormwater
   management were among the topics at the 2004 Forums. During the lunch hour, the
   EFC invites a guest speaker who addresses another topic of interest and then engages
   TAPs in  an  interactive  discussion.   The afternoon  hours  are set  aside for open
   discussions about a range of issues, concerns,  or projects with ample opportunity for
   people to network and share information.

STAKEHOLDER OUTREACH AND EDUCATION

   The  EFC has developed a distinctive niche with respect to generating public interest
   in environmental infrastructure projects; public outreach and education activities are a
   critical link for a community to generate public awareness and support. Over the past
   several years, the EFC has received calls from municipal leaders who have worked to
   develop a much-needed project but fear that, ultimately, it may be rejected by voters
   due to a lack public understanding. It is not uncommon for the public to vote against
   a project due to misperceptions, particularly related to household cost issues.

   The EFC has found that public education and outreach strategies have been successful
   in relaying an understanding about the impetus for the project, the process of project
   development and the derivation  of the household cost.  The  EFC approaches each
   community as a distinct entity  in which no "one-size-fits-all" model  of outreach and
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   education can be applied.   EFC staff meet with community leaders  to learn the
   historical  elements of  a prospective  project  as well as the  current conditions
   prompting the planning  for the project.  Information concerning the extent to which
   groups have formed in  favor or opposition to the project is obtained as well as all
   information concerning estimated costs.

   The EFC  customizes  the  outreach  strategy for  each   community.   In  some
   communities, the EFC will develop a community-specific survey to gauge the level of
   public interest and identify public perceptions.  Alternatively, or  in tandem with the
   surveys,  the  EFC  may conduct a series  of focus  groups to  elicit input from
   homogenous factions within the  population and to get insight into any concerns that
   might exist, what information (accurate or inaccurate) people have received, and what
   the general perceptions are.  These tools enable the EFC to create a sensible strategy
   for the public outreach  and education process. Depending on the  community, the
   EFC might create materials for display and/or distribution in which information, such
   as the cost of wells/septic systems,  is effectively  depicted using  graphic and verbal
   methods.  Other material might include information concerning the  costs associated
   with getting water  from source to tap.   While  there is  a myriad of information
   available in which such facets of water are illustrated, it is usually very generic and
   communities  can be  unresponsive -  it is not "their" community and  therefore
   "inaccurate".   EFC  material is created to  be  specific  to the  community  and
   consequently enjoys an element of responsiveness from community members that
   generic material cannot provoke.

   Another outreach tool is the Community Roundtable. The EFC uses public property
   or voter lists from the local government to randomly invite up to 50 people to attend.
   To date, all Roundtables attract more than the number of people who responded that
   they would attend.  The EFC brings a light meal  in the early evening and creates a
   panel of "experts" at the front of the room.  The panels are typically comprised of at
   least  one  local  government official,  an  engineer,  and  a representative  from  a
   government-sponsored  funding  agency.  The meetings  begin  with  all  present
   introducing themselves and stating what  motivated them to attend.   The EFC
   facilitator provides a set of "rules" concerning the  purpose of the meeting and giving
   assurance that all views  are valid and worthy of discussion.  The facilitator then leads
   the panel through a brief series of questions concerning the impetus for the project,
   the technical feasibility  of the project, and the anticipated costs per household.  The
   panel provides information on how financing takes place,  the length of time it will
   take for the project to be built, and other issues the EFC believes appropriate.  The
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   audience is then engaged in a facilitated discussion in which they are provided the
   opportunity to express their concerns.   The Roundtables have  always resulted in
   positive and highly constructive discourse focused on the project.  Public  officials
   frequently  glean insight  they  previously did not have and the public always gets
   information that is accurate and framed in terms they can understand.

TRAINING

   The EFC has a developed a unique role in the provision of customized training. As
   the PMFP was being  developed, the  EFC  sought to ensure  that its  trainings
   complemented the training provided by  its partners, including organizations such as
   Rural Water Association, RCAP Solutions, NY Conference of Mayors, Association
   of Towns and more.  In  order to impart the greatest benefit to communities without
   duplicating existing training available, the EFC has collaborated with its partners to
   create customized  instructional formats, focused on smaller groups and individuals,
   which take place  over a three to four  day period and incorporate a multitude of
   subject areas.  This allowed for the EFC to "fill the gaps" that were believed to exist
   in the delivery of technical assistance  and training  among  smaller  communities.
   During 2004, the EFC  invited  more than 1,400 local government  officials  and
   technical assistance providers to  its specialized training events.   Furthermore, the
   EFC  made itself available to provide content  to the trainings held by its partner
   organizations as needed and appropriate.

   The launching event for the PMFP took  place in April 2001 at Syracuse University's
   Minnowbrook Conference Center,  located in the Adirondacks. In 2002, there were
   two PMFP events  held at Minnowbrook; in 2003,  there were three. In 2004, three
   separate multiple-day  training events,  consisting of six distinct trainings, were held.
   A minimum of three training events are scheduled  to take place in 2005.  The topic
   areas presented at  the training events  were determined primarily by responses from
   TAPs and community representatives.  The EFC staff makes every attempt to respond
   to the expressed interests of participants. The subjects addressed in the 2004 trainings
   included public finance,  capital planning and budgeting, municipal bond issuance,
   computer finance models, rate setting and analysis, asset management, environmental
   conflict management  and resolution,  project financing procedures and regulations,
   and Process Communication Management.

   Each training event integrated "case simulations" into the format. The simulations are
   developed  using real  case studies as the basis of the  role assignments and training
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   material. Participants assume new "roles", which are opposite of their professional
   roles, to enable them to experience other perspectives.  Each group is comprised of an
   equal distribution of technical assistance providers and government officials, which
   supports the ability of individuals to explore all perspectives of a given situation.  The
   simulation community  members  spend  the  majority  of their time solving  the
   problem(s) at hand  using the training material for  reference  and guidance with
   techniques and methods.   The  last section of the training  events is  dedicated to
   presentations  from the simulation communities.   During this time,  all training
   participants discuss alternative solutions as well  as share real experiences they have
   had with similar situations.  This highly interactive format encourages "peer-to-peer"
   learning, applied learning, and "shared" learning as simulation group members form
   teams to solve problems  under constrained time and resource  conditions.  Unlike
   many training or learning methods, the simulation method is steeped in team building
   and reliance on the strengths of individuals within the group - everyone participates
   in the  learning process  without  feeling  inhibited  or  intimidated by  unfamiliar
   information or any lack of skills.

   The EFC staff will continue to elicit participants for additional topics of interest and
   attempt to incorporate those interests into future  trainings. Consistently, community
   representatives and technical assistance providers alike highly rate the PMFP training
   in terms of both format and content.  The training events have continued to expand
   the clientele  of the  EFC,  as  many  community  leaders have  requested specific
   assistance or asked to be put in contact with partners' technical assistance services.
   The  trainings are  a  significant accomplishment, "bridging the gaps" in terms of
   having a means for technical assistance providers and local governments to interact in
   a  comprehensive  manner,  using  a  variety of  methods  to promote learning,
   networking,  and  the  delivery  of   solid  expertise  relative  to  environmental
   improvements. The  PMFP will continue to use  highly interactive and participatory
   methods of delivering all of its components.

SOURCE WATER PROTECTION PROJECT

   Under the leadership of the University of New Mexico EFC and in cooperation with
   EPA  Region 2, the EFC has been working with communities in Chenango County,
   NY with common concerns for  potential drinking water contamination.  To achieve
   an outcome that combines both process facilitation and direct technical expertise, the
   EFC  continued enjoying a collaborative  relationship  with the Water Resources
   Institute to carry out the activities of the project.  The  project was completed in June
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   2004, but the  EFC  has continued to work with the  Chenango  County  Water
   Operator's Council.  Through the Council, the EFC secured a $6,000 grant from the
   Altria Group, a private  foundation,  to work on a project in the  County aimed at
   raising awareness of drinking  water sources and protection among private water
   system users. The following activities were completed on behalf of the Source Water
   Protection Project during 2004:

   •  Built upon the successes of the project by obtaining a grant of $6,000 from the
      Altria Group, parent corporation of Kraft Foods.  Several Kraft water operators
      are Water Operators Council members and it is through their efforts that the EFC
      successfully applied  for the funding.  The grant will  be used to conduct focus
      groups and community meetings and develop outreach material to promote source
      water protection practices among homeowners. This work will set the stage for
      later work to promote actual testing of source water.

   •  Facilitated monthly meetings of the Chenango  County Water Operator's Council,
      a group of public and private water system operators and representatives from the
      County Health and Planning Departments, Soil and Water Conservation District
      and the local Environmental Education Center.

   •  Developed  Council  meeting  agendas  in  conjunction with  Co-Chairs  and
      scheduled speakers and presentations on the following topics:

          o  USDA' s Conservation Enhancement Program

          o  EPA's Disinfectant Byproduct Rule

          o  U.S. Geological Service and underground aquifers

          o  NYS Department of Health (NYS DOH) and Community Environmental
             Management as it relates to source water protection

          o  Well maintenance

          o  Hydrant maintenance and repair

          o  Sample, testing and system maintenance

          o  Susquehanna River Basin Commission Groundwater Management Plan
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          o
Water system security and financing
          o  NYS DOH operator grades and certificates

          o  NYS  Department  of   Environmental  Conservation   Storm  Water
             Management

   •   Assisted the Council in developing and compiling a survey of public water system
       equipment in the County that is available for emergency loan, thereby helping to
       ensure that all municipal water systems  are able to provide uninterrupted service
       to the public.

   •   Published the Council Update, the Council's quarterly newsletter distributed to all
       system operators and elected officials in the County.

   •   Completed or planned source water assessments to supplement the NYS DOH
       assessments to identify potential sources of contamination to drinking water.

   •   Distributed meeting notes and agendas  to all  water system  operators and other
       interested  parties in the  County  (there  are 63  system  operators and 37  elected
       officials-congressmen,  mayors,  supervisors,   state   senators  and  assembly
       representatives).

   The Source Water Protection Project is based on the notion that communities working
   proactively to protect their health and resources will prevent contamination of their
   drinking water sources.  A proactive approach can help a  community avoid serious
   health risks  associated with drinking water contamination.   It  can  also be an
   economical  approach—preventing contamination  can be much  less expensive than
   cleaning a contaminated source.   The  brochure  the EFC developed in 2002  for
   distribution  to water systems, customers, community groups—anyone interested in
   protecting their drinking water, continues to enjoy broad distribution and effectively
   provides basic information about source water protection.

RATE SETTING ASSISTANCE

   During 2004  the EFC  continued to work  with communities  attempting to create
   equitable user rates as they  pursued water and wastewater system improvements.
   During 2002 and 2003, the EFC developed a more customized system of delivering
   training and assistance to communities because workshops and instruction at training
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   events  did  not  appear as  valuable  to  the actual learning process  for  many
   practitioners. What the EFC learned through evaluations was that the training events
   often resulted  in "information  overload" and  municipal representatives derived
   greater benefit from more one-on-one methods of instruction.

   Providing individual assistance requires more time on the part of EFC staff, however,
   it results  in the delivery of more comprehensive information to communities  and
   ensures their  ability to develop a  stronger internal capacity to work with  rate
   structures. In turn,  this assures that the government's investment in the EFC will
   have the longer term impact it seeks. Over the past decade, the EFC has recognized
   that rate setting training delivered in the classroom to groups of practitioners does not
   have the same long term value, particularly when consideration is given to changes in
   political administrations responsible for rate setting decisions. Human nature inhibits
   many individuals in a group  setting from  asking  specific questions relative to their
   circumstances,  or otherwise  fails to recognize differences in  learning  styles.  By
   working with  communities on an individual basis,  the EFC is not only facilitating
   capacity-building within a community, it is complementing  the  broader training
   provided  by  other  technical  assistance  providers,  such as  the Rural  Water
   Association, which continues to deliver training using classroom methods.

   During  2004,  the EFC provided  either comprehensive rate analyses or customized
   training to many  communities including  the Village  of Watkins  Glen,  Town of
   Fenton,  Town of  Westport,  Town of  Kirkwood, Town  of Jasper,  Village  of
   Springville,  Town  of Inlet,  City  of Dunkirk,  Village  of Bergen  and Village of
   Harrisville.  Other communities  have contacted the EFC expressly about assistance
   with rate structures.  The EFC anticipates working with several  of those communities
   but cannot do so until specific data is made available.

PANELS ON WASTEWATER FOR LOCAL REPRESENTATIVES

   Developed and  implemented in 2004,  the  "Panels  on Wastewater for  Local
   Representatives"  are  the product of a  collaborative approach  involving NY Water
   Environment Association (NYWEA), NY Rural Water Association (NYRWA), NYS
   Department of Environmental Conservation (NYSDEC) and the EFC.   While many
   think of the Chief Operator as  the responsible party  for a municipal wastewater
   system, the overall success or failure of the system largely depends upon the local
   officials and other non-technical  staff.   Informational sessions  were  specifically
   designed  to reach  out to local  officials  and other non-technical staff; the  target
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   audience was comprised of local representatives who contribute to the management
   of their wastewater facility including mayors, supervisors, clerks and sewer board
   members. Each session was filled to capacity, involving a total of 75 attendees which
   included  mayors,  supervisors,  clerks,  treasurers,  sewer board members  and
   wastewater operators.

   Municipal  wastewater treatment  plants represent a huge capital investment that
   provides a critical public  service.  This  program enabled  participants to better
   understand and manage this investment by conveying technical information in layman
   terms.   All sessions  were held in the evenings  and began  with a light  dinner,
   sponsored by NYWEA and NYRWA, to give participants the opportunity to network
   with funding agency representatives, NYSDEC Regional Water representatives and
   other technical assistance  staff.   A basic overview  of wastewater "lingo" and
   treatment processes  was  presented  to  encourage officials to communicate with
   technical operators about management and operational issues on a routine basis.  The
   importance of protecting, maintaining and providing adequate financial support was
   emphasized.  Participants left with a clear sense of environmental  administrative
   responsibilities, the need to maintain compliance and educate the public.

   A key  component of each  session focused  on funding  sources for  wastewater
   infrastructure improvements.   Representatives from NYS Environmental Facilities
   Corporation, USDA Rural Development, NYS Energy Research and  Development
   Authority, and NYS Department of State Appalachian Regional Commission spoke
   about potential  sources of funding  for wastewater projects and provided a wealth of
   information for participants.

   Several factors were instrumental  to the success  of this project including:  free-of-
   charge  evening  sessions,  an interactive  agenda,  and  conveyance  of technical
   information in  laymen terms. Additionally, a comprehensive marketing approach,
   using printed and electronic media buttressed by personal contact, was implemented
   to reach the target audience throughout New York State. A pre-session questionnaire
   focused on participants' needs and key issues, coupled with a facilitated roundtable
   discussion, allowed each session to be responsive and individualized.  Participants
   were afforded the opportunity to network with both funding agency representatives
   and  technical  staff.  Overall, participants  gained an  enhanced  understanding  of
   wastewater  treatment  including   the  financial,  managerial,  and  environmental
   responsibilities of elected representatives.
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   All sessions  were very well attended, confirming a clear  need to continue this
   outreach effort. Topics for future events were identified by  participants during the
   roundtable discussion to maintain responsiveness to community needs. Evaluations
   showed that participants supported the content and structure of the Panel. Most were
   able to pinpoint their community's key issues, and planned to become more involved
   in wastewater management.  Plans to continue this successful collaborative effort in
   2005 are underway.

EFC COLLABORATIVE ACTIVITIES SUMMARY

EFC NETWORK

   •   The Public Management  and Finance Program mentioned previously in its own
       section was the most significant  collaborative activity during  2004, as it was in
       2001, 2002 and 2003. EFCs located in Kentucky, North Carolina, New Mexico,
       Idaho, California, Maine and Maryland were included in a proposal submitted to
       the USDA in December 2003 to fund the water  and wastewater work of the
       PMFP.

   •   Through the leadership of the New Mexico EFC and in collaboration with four
       other EFCs, the EFC 2 will continue to collaborate on the Source Water Project
       mentioned previously.  The EPA funding for the project officially ended in June
       2004;  however, the EFC  2 sustained the project through  support from a private
       foundation.  A continuation of EFC 2 activities is planned through 2005.

   •   Through the leadership of the EFC@UNC (North Carolina) and in collaboration
       with the EFC at the University of Maryland, the EFC 2 prepared environmental
       finance case studies relative to the Appalachian region, focused on Appalachian
       community infrastructure funding gaps and Appalachian  communities that have
       successfully provided adequate levels of infrastructure investment.

   •   The New Mexico  EFC  (lead),  in collaboration  with  five  additional EFCs,
       provided an opportunity for the EFC 2 to participate in a Water System Security
       project which will  address the "how to pay" issues surrounding water system
       security measures.  EFC 2 staff will receive training and impart this knowledge to
       communities and  appropriate technical  assistance  partners throughout EPA
       Region 2. The project received funding and is scheduled to begin in early 2005.
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   •   The EFC 2, in collaboration with two other EFCs, submitted "Capacity Building
       for Morocco NGOs and the Department of the Environment" in August 2004.
       The purpose of this proposal is to provide training and outreach for Moroccan
       environmental NGOs  and  the Department of Environment in order to improve
       their capacity to protect the environment and enhance their enforcement  efforts.
       Notification of grant funding is pending.

Other

   •   The "Panels on Wastewater for Local Representatives", mentioned previously in
       its  own section, are a collaborative effort involving the EFC, New York State
       Department of Environmental Conservation, NY Rural Water Association,  and
       NY Water Environment Association. The EFC plans to build upon this  project
       throughout 2005  with additional  funding from the NYS DEC,  anticipated in
       spring 2005.

   •   Continued  developing concepts and proposals with the Water Resource Institute
       of  Cornell  University  to  work  with communities  seeking  environmental
       improvements.  WRI has immense technical strengths and the EFC has immense
       financial  and  process-oriented  services  that,  when   combined,  make  a
       complementary  team.  During  2004 WRI  and  EFC  discussed numerous
       prospective opportunities to consider for the future.

   •   The New York  State Environmental Facilities Corporation (NYSEFC),  RCAP
       Solutions, Inc. and EFC staff collaborated on several occasions in 2004 to provide
       comprehensive  assistance  to  communities  in need  of drinking  water  and
       wastewater systems.  RCAP and NYSEFC provided assistance in developing the
       applications for grants and loans while the EFC focused on methods to generate
       community support and customize public education efforts concerning the costs
       of systems and issues surrounding the impetus for the projects.

INITIATIVES FOR 2005

   •   Develop new  projects  in collaboration  with the Center  of  Excellence  in
       Environmental Systems, led by Syracuse University and the New York Indoor
       Environmental Quality Center, an umbrella organization that channels the efforts
       of 12 research institutions, targeted research centers,  and nearly 50 businesses and
       economic  development organizations  that are participating  in this regional
       initiative.
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   •  Develop projects in New Jersey and other  areas within EPA Region 2.  This
      entails continuing to work with the New Jersey Pinelands Commission on a waste
      management district project.  The Commission contacted the EFC in 2004 to
      assist them in public outreach and education for a special district to manage septic
      systems in this environmentally sensitive area. New construction in the Pinelands
      is required to include advanced septic systems to reduce the potential of nitrogen
      and other contaminants entering the environment.  The Commission is concerned
      that these systems be properly maintained and would like the EFC to work with
      them on determining public knowledge  and acceptance of waste  management
      districts.  The EFC has  proposed a  series of focus  groups and other outreach
      methods to identify stakeholder concerns  about potential districts. The EFC will
      build on this project by continuing to identify potential partners and  projects in
      New Jersey.

   •  Implement and  build upon the "next stage" of the Source Water  Protection
      Project.  In 2004, the EFC received funding from a private foundation to support
      focus groups and community information meetings which were held in late 2004,
      with plans to continue these efforts in 2005. Additionally, the EFC has submitted
      a  proposal for funding to expand  these efforts;  anticipated activities  include
      supplemental trainings and the  development of  customized community outreach
      and education materials.  This  work  will pave the way for additional project
      activities and growth. Thus, the intent of the EPA to provide  "seed" funds to
      enable a broader project will be achieved.

   •  Continue to  develop the "Panels on  Wastewater for Local Representatives" in
      collaboration with the NYS DEC, NYRWA and NYWEA, expanding upon the
      subject matter presented and incorporating additional partnering  organizations as
      appropriate.  Supplemental funding from the NYS DEC is anticipated in 2005.

   •  Continue to develop the  Public Management and Finance Program, particularly
      with respect to pilot testing the concept in at least two other states  served by an
      EFC. This will involve coalescing technical assistance providing organizations,
      identifying  two   communities,   and  sponsoring  travel  to New  York  for
      representatives of those communities to receive training at one of the EFC's three-
      day training  events. This will, first, show the commitment to the  collaborative
      element  of the PMFP, and, second, it will enable the PMFP to elicit data on the
      needs  of communities  outside  of New York  and,  thus,  be  able to develop
      proposals for funding accordingly.
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   •  Support graduate student projects to research environmental finance issues for
      communities and other nonprofit or government associations.  It is anticipated that
      various capstone projects will be carried out in May 2005.
PRESENTATIONS, CONFERENCES AND MEETINGS

   In addition to the aforementioned projects, the EFC regularly participates in national,
   state-wide, regional and local professional  events.  The following summarizes these
   activities and also includes representative examples of project activities.

   •  January 2004 - Traveled to New Mexico to meet with USDA representatives and
      NM EFC staff to plan for the development  and implementation of the PMFP in
      New Mexico.

   •  February 2004 - Presented information  about the EFC Network and the PMFP at
      the New York State Association of Towns Annual Meeting in New York City.

   •  February  2004 - Traveled  to North  Carolina  to  meet  with the  USDA
      representatives  and  EFC@UNC staff  to  plan  for  the  development  and
      implementation of the PMFP in North Carolina.

   •  February 2004 - Facilitated  PMFP Partnership Forum  for technical  assistance
      providers; primary topic: municipal financing.

   •  March 2004  - Attended Environmental Finance Advisory  Board meeting in
      Washington, DC,  which preceded the  EFC Director's  meeting that took place
      immediately thereafter.

   •  March 2004 - Presented information about the EFC Network and facilitated a
      roundtable discussion in Freeport, Maine to assist the New England EFC with the
      "Technical Assistance Issues in Maine Towns" meeting.

   •  March/April  2004  -  Conducted  training  event  at  Syracuse  University's
      Minnowbrook Conference  Center for local government officials and technical
      assistance providers.

   •  May 2004 -  Conducted training event at Syracuse University's Minnowbrook
      Conference  Center  for local  government  officials and  technical   assistance
      providers.
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   •  May 2004 - Presented four public outreach sessions in Dunkirk, NY about the
      value of municipal drinking water.

   •  May 2004 - Presented at the New England Interstate Water Pollution Control
      Commission conference  in  Lake  George, NY about  financing  watershed
      protection.

   •  June  2004  -  Facilitated  PMFP Partnership Forum  for  technical  assistance
      providers; primary topic: stormwater management.

   •  June  2004  -  Received  an  additional  one  week  of  training in  Process
      Communication  Management  in Little Rock,  Arkansas  for the purpose  of
      providing such training to local government officials.

   •  July 2004 - Presented at the 2004 Society for Conservation Biology Conference
      in New York City about the EFC Network with the New England EFC (and other
      EFCs).

   •  August 2004 - Attended Environmental Finance Advisory Board meeting in San
      Francisco, CA.

   •  September 2004 - Facilitated PMFP Partnership Forum for technical assistance
      providers; primary topic: EFCN as a community resource.

   •  September  2004  -  Presented rate analysis options  to board members of the
      Village of Bergen, NY.

   •  September   2004  -  Facilitated  two  "Panels  on  Wastewater for  Local
      Representatives" in collaboration with the NYS  Department of Environmental
      Conservation,  NY  Rural  Water  Association  and  NY   Water Environment
      Association.

   •  October 2004 - Conducted training event at Syracuse University's Minnowbrook
      Conference  Center for local  government  officials  and  technical  assistance
      providers.

   •  October 2004  - Facilitated  the third "Panel on   Wastewater for  Local
      Representatives" in collaboration with aforementioned partners.

   •  November 2004 - Attended Demographic Analysis Workshop in New York City
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      for the  purpose  of improving research  skills with US Census data and GIS
      systems.

   •  November  2004  -  Presented  at  the  NYS  Department  of  Environmental
      Conservation's "Manager's Forum" in Syracuse, NY  about the EFC and the
      "Panels on Wastewater for Local Representatives".

   •  December 2004 - Facilitated PMFP Partnership Forum for technical assistance
      providers; primary topic:  alternative financing  through underwriting and other
      means.

CONTACT INFORMATION
      For more information, please visit our website: http://www.maxwell.syr.edu/efc
      or contact the Syracuse EFC at (315) 443-9994.
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             Environmental
             Finance Center
             THE  UNIVERSITY SYSTEM
                  OF MARYLAN D
  2004 Annual Report of the
  Environmental Finance Center Network

  Region 3  - EFC at the University of
  Maryland

  The University of Maryland focuses on "watershed issues,
  especially in the Chesapeake Bay region
INTRODUCTION

  With support from the U.S. Environmental Protection Agency (EPA), the
  Environmental Finance Center at the University System of Maryland was created to
  assist local communities in identifying innovative and equitable means of paying for
  environmental projects.  The mission of the Environmental Finance Center is to
  provide communities with the tools and information needed to manage change for a
  cleaner environment and an enhanced quality of life.  In an effort to encourage
  communities to make informed choices related to the protection of the environment -

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   especially watersheds - the EFC works to promote an atmosphere  of respectful,
   innovative, and creative communication.

NEW PARTNERSHIP

   On September 1,  2004,  the  Environmental  Finance Center officially joined the
   Institute for Governmental Service at the University of Maryland.  The EFC is excited
   about  the  opportunities  that  this new partnership  will  bring.   It will  allow
   communities throughout the region to leverage the resources of three established and
   successful University of Maryland programs - EFC, IGS, and Sea Grant - and will
   certainly result in  new and innovative approaches to building  sustainable, livable
   communities throughout the Chesapeake Bay region.

   Coinciding with the new IGS partnership, there have been several  EFC  staffing
   changes. After 12  years of distinguished service, Dr. Jack Greer - of Maryland Sea
   Grant  - stepped down as EFC Director on December 31, 2004.  Though Jack's
   leadership will be missed, he has agreed to serve as Senior Advisor to the EFC. The
   following is a complete staff listing:

   -   Dan Nees, Director
   -   Michelle O'Herron, Program Manager
   -   Jean Holloway, Training and Education Manager
   -   Dr. Jack Greer,  Senior Advisor
   -   Michelle Lennox, Project Assistant
   -   Jennifer Cotting, Project Assistant

ACCOMPLISHMENTS

   In order to help communities and local governments participate in effective and
   responsible environmental management on a watershed scale, the Environmental
   Finance Center continued to develop and deliver effective, innovative technical
   assistance and training for financing environmental protection and restoration. To
   carry out this goal, the Environmental Finance Center focused on the following key
   objectives throughout 2004:

   •   Delivered training and information on watershed-based financing.

   •   Investigated new and innovative uses of funding sources and emerging markets.
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   •   Assisted communities and local governments with capacity development.

   •   Developed efficient and effective outreach and education tools for reaching a
       broad clientele with information about innovative and sustainable environmental
       finance approaches.

   •   Worked with key partners, especially the Chesapeake Bay Program, the
       University of Maryland Institute for Governmental Service, and Maryland Sea
       Grant College.

Technical Assistance

   Chesapeake Bay Blue Ribbon Finance Panel

   A significant focus of EFC's work over the past decade has been to assist community
   leaders throughout the region in their efforts to finance the restoration and protection
   of the Chesapeake  Bay, our nation's largest estuary.  The funding  and  financing
   challenges are significant.  In order to solve the primary cause of the Bay's decline -
   excess nutrients from farms, wastewater treatment plants, septic systems, city streets,
   suburban lawns,  even from the air - communities will be required to implement best
   management practices  (BMPs)  far  above those currently in place.   The  costs
   associated with implementing these BMPs are staggering - upwards of $30 billion by
   some estimates.   In an effort to identify funding opportunities for dealing with this
   enormous financing problem,  the  governors of  the Bay  states authorized the
   formation of the Chesapeake Bay  Watershed Blue  Ribbon Finance Panel.  The
   Chesapeake Bay Program requested the Environmental Finance Center's assistance in
   staffing the Blue Ribbon Finance Panel as it undertook its important work.

   The Panel  was  charged with evaluating  possible funding sources and  financing
   mechanisms  for  reducing nutrient  and sediment pollution  throughout the Bay
   watershed.    The Chesapeake  Executive  Council, which  establishes the policy
   direction for the restoration and protection of the Chesapeake Bay, asked the panel to
   "consider funding sources to implement the tributary strategies basin-wide, and to
   make recommendations regarding other actions at the federal, state and local level to
   the Executive Council."

   Fifteen distinguished individuals were selected to serve on the Blue Ribbon Finance
   Panel. Panel Members  included high-level business  leaders  of  major companies,
   financial and economic experts;  stakeholders with  experience  in  storm water,
   agriculture,  air  emission  and wastewater  treatment  plant  funding  and  pollution
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                                                                  EFGN
   control; and current and former local, state, and federal  officials with financing
   expertise.   Additionally, experts and presenters from various fields of expertise
   provided invaluable information to the panel.

   The EFC played an integral role in developing program strategies, providing technical
   support, as well  as facilitating and coordinating panelist discussions.  Each of the
   Blue Ribbon Finance Panel Meetings addressed  a  particular sector  that delivers
   nutrients and sediment to the  Bay.   The sectors  covered  included Municipal and
   Industrial  Wastewater,  Agriculture, as well as Developed  Lands,  Forests and Air
   Deposition.  The Panel's recommendations are contained in  the 40-page final  report,
   Saving a National Treasure: Financing the Cleanup of the Chesapeake Bay.  The
   report is available on the EFC web site: www.efc.umd.edu.

   In addition,  the EFC has been presenting the results of the Blue  Ribbon Panel at
   Tributary  Team  meetings  around  Maryland  including:  Upper  Western  Shore,
   Patuxent River,  Patapsco River,  and Upper Potomac River,  in  addition  to  the
   Tributary Team Leaders in Annapolis, MD.

   The Interagency Technical  Assistance Committee on Wastewater Systems
   in Maryland (ITAC)

   In December of 2000, the leadership of the Maryland House and Senate, the Chairs of
   the Economic and Environmental Affairs and the Environmental Matters Committees,
   and the Chair of the Maryland Delegation to the Chesapeake Bay Commission wrote
   to then Governor Parris N. Glendening about the wastewater needs of the State.  In
   March 2001 an Executive Order created the Task Force on Upgrading Sewerage
   Systems to assess wastewater infrastructure needs and to identify other challenges to
   the successful  planning,  design and construction of wastewater  facilities  to
   accommodate  existing  and projected population.  The previous EFC Coordinator
   served on this  Task  Force   and  contributed  substantially to its findings  and
   recommendations. The Task Force produced a report in December  2001  identifying
   the need for $4.3  billion in capital funds to address wastewater treatment plants and
   collection  systems.  The  report made several  other recommendations, including
   evaluating and improving the Water and Sewerage Planning process.

   In a follow-up to this effort, House Bill 659 was passed  in the 2002 session of the
   Maryland  General Assembly.   This bill was a combination  of three bills before the
   legislature, which called for  the  study  of a wide  variety of water  security and
   wastewater systems topics. HB 659 created the Advisory  Council on Water Security
   and Sewerage  Systems  and the Interagency Technical Advisory Committee (ITAC).
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   The  Interagency  Technical  Assistance  Committee on Wastewater Systems  in
   Maryland  (ITAC) was charged  with  implementing  a recommendation  of the
   Governor's 2001  Task Force on Upgrading Sewerage  Systems  by advising  local
   jurisdictions on the efficient operation and financial management of wastewater
   treatment systems.  Currently, the EFC Training and Education Manager sits on this
   committee.

   In the course of initial joint meetings of the ITAC and the Advisory Council on Water
   Security and Sewerage Systems (Advisory Council), it was determined that the ITAC
   would be responsible for updating the 2001 Task Force report, as well as certain  tasks
   outlined in HB 659 originally assigned to  the Advisory Council, specifically the
   finance, public awareness and technical assistance recommendations from the  2001
   Task Force Report.  The ITAC was required to report its findings to the Advisory
   Council on or before November 1, 2004, with the final report to be presented to the
   legislature by  the end of calendar  2004.  The Advisory Council's  work will  be
   complete with  the submission of their report, but the ITAC  will continue to review
   and implement recommendations made by the 2001 report as well as new ones arising
   in the course of the current deliberations and report from 2004.

   To accomplish these initial tasks, several subcommittees were formed including a
   Finance Subcommittee, chaired by the EFC Training Manager and a Public Education
   and Technical Assistance Subcommittee, of which the Training Manager was a
   member. The EFC Training Manager also assisted in the drafting  of several sections
   of the final report at the request of the Advisory Council chair and MDE staff.  This
   new committee concluded, among other things, that funding needs are now estimated
   at approximately  $5.3 million,  and that funding  currently  committed  may  be
   sufficient to meet those needs for the short term provided changes are made in the
   way  those funds  are allocated and  utilized. The  committee's  report, issued  in
   December 2004, also recommended that more effort  be directed towards training for
   local officials to enhance system capacity and sustainability, and that there appears to
   be a need for better education on what balanced system operation  entails.  The ITAC
   will continue to meet throughout 2005 to elaborate further on its findings and to make
   recommendations for implementation of specific areas of its report.

   Financial and management capacity training

   Utility rates offer a mechanism for  capturing most of  the costs  of operating and
   maintaining  water and waste water systems and can  ensure that they are  self-
   supporting. Good financial management and sustainability for water and wastewater
   systems entails prudent  long range planning,  especially   Capital Improvements
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   Planning  (CIP)  and  Asset Management  skills  in  addition  to  sound overall
   management practices.

   The EFC continued to offer rate design and  CIP training workshops to elected
   officials, utility operators,  engineers and others  interested  in the concepts and
   technicalities of properly managing and sustaining utility systems.   The EFC made
   use of the CAP Finance program  developed by EFC 10 to illustrate sound capital
   expenditure  planning  methods  in its  applicable training  sessions, and  to  assist
   communities individually when needed.

   Since there is more to sustainability than just the ability to provide financial services,
   the previous years' training array was broadened by the addition of some new courses
   outlining overall management and asset preservation practices that can help the utility
   continue functioning over time.  One new offering focuses on  the basics of Asset
   Management for water and wastewater utilities. This course targets small systems
   without formal  asset management procedures  and illustrates how to set up and
   maintain a good program that will sustain the utility's infrastructure throughout its
   useful life, as well as save on operating and replacement expenses in the long run.

   The second new  offering is aimed at  non-technical,  decision-making  personnel
   involved in  small  drinking water systems and  provides an overview of the issues,
   requirements and responsibilities for those who provide community  drinking water.
   This  Small  System Training unit  focuses on issues like record and bookkeeping,
   liability and risk  management,  self-evaluation  of capacity,  the need for written
   procedures in certain areas, security measures and requirements, legal, financial and
   administrative responsibilities and the basics  of a system operations and maintenance
   manual.

   The addition of these  new training programs has allowed  the  EFC to increase its
   impact throughout the region. The EFC Training and Education Manager conducted
   20  training  sessions throughout Region 3,  reaching 200 people representing 100
   organizations.   Training  topics  included: asset  management, financial management
   basics,  and  capital  improvement  planning.   In addition, the  Training  Manager
   participated  in a panel discussion sponsored by the National Association of Towns
   and Townships  in Washington, D.C.  The title of the discussion was,  "Responding to
   Environmental  Challenges-Regulation  Update,  Asset Management,  and  Capacity
   Development in Smaller  Communities" The Training Manager also participated in
   the Annual Training Institute at NESC by presenting two training sessions and acting
   as a panelist/presenter in  a third session. The Annual Institute is attended by trainers
   and assistance providers from across the country and the Maryland EFC has been one
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   of its co-sponsors for the past 5 years.  The Training Manager also attended Rural
   Water conferences in Pennsylvania, Maryland and Virginia, presenting one or more
   training sessions at each one.

   Utility Rate Studies

   Much of EFC's work is based on the belief that full cost pricing and sound  rate
   setting practices are essential to sound financial management of a sustainable utility.
   In an effort to encourage community  systems to take ownership of the rate analysis
   process,  the EFC is shifting its focus from doing rate analyses to offering individual
   training  on the rate analysis  process  itself,  coupled with training  and  assistance to
   system personnel as they perform the analysis process themselves. It was felt that
   this  method would yield more long-term  enhancement to systems'  capacity than
   actually  performing this essential management function for them.  Systems are  also
   instructed in the use of the various spreadsheets that the EFC Training Manager has
   developed for rate analysis and are left with usable copies of these Excel documents.

Watershed Financing

   Local  officials and community leaders often focus watershed protection efforts on
   one  or two funding sources, such as the Environmental Protection Agency's Section
   319  funds.  This  approach to funding is understandable  given the complexity of the
   problems, issues,  and potential solutions available.  Finding public funds - usually in
   the form of grants - is often the easiest and least politically costly financing solution
   to very entrenched issues and problems.  Yet there is not enough public funding or
   private grants  to pay  for the recovery  of watersheds  and habitat  areas.   The
   Environmental Finance Center continues to work with community leaders in creating
   watershed-financing  plans  that identify and leverage several types of sustainable
   funding  sources,  the  key to successful implementation of any community  effort,
   including watershed restoration and protection.

   The Sustainable Financing Initiative

   In the fall of 2004,  the EFC expanded its  watershed financing programs with the
   development of the Sustainable Financing Initiative.  The goal of this Initiative is to
   provide communities with the tools they need to effectively finance and implement
   watershed protection plans and strategies.  This program is funded through a grant
   from the Environmental Protection Agency.
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   Over the next year and a half the EFC will hold four to five workshops around the
   region focused  on helping communities  overcome barriers to implementing their
   watershed  plans. This  past  year  the EFC,  in  partnership with  the  Maryland
   Department of Natural Resources (DNR), set up a steering committee comprised of
   representatives from a cross section of communities in Maryland who had been, or
   were just becoming, involved in the Watershed Restoration Action Strategy (WRAS)
   process through the state. The  EFC  convened the  first meeting  of the  steering
   committee in November to discuss the issues that needed to be at the forefront of the
   Maryland workshop.  The workshop for Maryland is  currently being planned based
   on the issues identified by the steering committee.

   Chesapeake Watershed Dialogues

   The  National Parks Service  (NFS) Rivers,  Trails  and  Conservation Assistance
   (RTCA)  program,  in  partnership with the states of Maryland, Pennsylvania  and
   Virginia, has  initiated a collaborative effort to foster local watershed management in
   the Chesapeake Bay basin. The first stage of this  effort will consist of a series of
   dialogues aimed to teach local  governments,  organizations  and other stakeholder
   groups about watershed  planning, and how these plans need to be incorporated into
   local land use decisions and other conservation practices.  Three to five high priority
   watersheds from each state will  be  targeted for assistance from RTCA.  After the
   dialogue, an RTCA staff member will be  assigned to assist each watershed with the
   completion and implementation of their watershed plan.

   The EFC participated in two of these dialogues over the past year.  Last January the
   EFC  Director and  Project Manager  gave  a  general presentation on  watershed
   financing and participated in the workshop and discussions at the Maryland dialogue.
   In November, the EFC again partnered with RTCA on a dialogue workshop held in
   the Cacapon  and Lost Rivers watershed in the northeastern part of West Virginia.
   The West Virginia dialogue brought together state and federal agencies as well as
   staff from the local Congressional district to discuss how to work collaboratively on
   land preservation issues in this rapidly developing part of the Bay watershed.

   Smart Growth  in Maryland

   Maryland's Eastern Shore in under  significant development pressure as a result of
   population increase. The Eastern Shore has become a popular place to live because
   of its proximity  to major cities, water-based recreational opportunities, low cost of
   living and low crime rate.  Small municipalities on the  Eastern Shore struggle to cope
   with the onslaught of growth with limited, or  sometimes nonexistent, staff  and
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   financial resources and often outdated zoning ordinances.  Many  communities are
   looking for ways to turn this growth into sustainable community development.

   In November 2003,  the  EFC's Project Manager,  and  a  representative from the
   University's Cooperative Extension, attended a EPA Smart Growth training program
   in Washington DC.  After the training the Maryland  Sea Grant Extension Director
   received a $5,000 grant to help implement  some component of Smart Growth in
   Maryland.    The EFC's  Project Manager  convened  several  meetings  with
   representatives from  Washington College, The University of Maryland Institute for
   Governmental Service (IGS), University extension representatives, The Conservation
   Fund and a private consultant to determine how to use the resources that this group
   could provide, including the EPA grant money, to do a community visioning project
   for the Town of Galena on Maryland's Eastern Shore.  These meetings were quite
   successful and the group was committed and enthusiastic about the project.

   The Project Manager presented the proposed project to the Galena Town Council on
   March  1st and asked for their input and assistance.  The idea was well received by the
   Council  and  community  members in the audience.   Unfortunately,  the  Council
   decided that they did not want to do a visioning  exercise before they rewrote  their
   comprehensive plan.  The group decided that doing a visioning exercise concurrently
   with a  comprehensive planning was not the  right approach, and decided that  their
   resources could be better applied elsewhere.

   Subsequently,  IGS began  working  with Caroline  County,  Maryland to do  a
   countywide visioning exercise.  The EFC has partnered with IGS and others on this
   project,  and  is  contributing to  the  survey phase  of the  project  currently  in
   development.  Also, in September the Extension Coordinator called together a group
   of experts in  this field from  different departments of  the University to discuss how
   best  to coordinate and  utilize  the resources available  to  communities from the
   University.  Everyone present agreed that  coordinating the resources  of this group
   would  provide a tremendous opportunity for future projects and partnerships.  The
   EFC will continue to work with this group on future projects.

   Solomon's Harbor Septic Forum

   The Project Manager continued to participate on a workgroup established by  Calvert
   County to look at innovative approaches to address the nitrogen entering Solomon's
   Harbor from  septic systems  located in  nearby  residential areas. The workgroup is
   composed of representatives  from the County, technical experts and local residents.
   The  EFC has provided advice and expertise on innovative  ways to finance the
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   solutions that the group decided on. The group presented their recommendations to
   the County Commissioners,  and received a generally positive response.  They
   continue to meet periodically,  and the EFC will remain engaged to assist them when
   needed.

EFC COLLABORATIVE ACTIVITIES SUMMARY

EFC NETWORK

   Source Water Protection Initiative

   During the past year, the Maryland EFC completed its work with the Unified Source
   Water Protection Project.   The  Project was  charged with assisting communities
   throughout the  country  in their efforts to  protect  drinking  water  sources.   The
   University of Maryland EFC is working to better incorporate such protection efforts
   into larger watershed protection efforts.

   Frederick County, Maryland

   During  this past year the  Source Water Protection Plan for  Lake Linganore was
   completed  and  was  presented  to  the County Commissioners in  July.   The
   commissioners spent a considerable amount of time questioning the Project Manager
   and County staff about the  contents and  recommendations of the report.  They
   concluded that  they would reexamine the plan in November  after the County got
   additional input from homeowners and the agricultural community.

   The revised plan was presented to the commissioners again  in November and it
   passed 4-0,  with one  commissioner absent.  The commissioners then directed the
   group to begin developing implementation strategies, and to return in several months
   to present their  implementation plan. The process of developing an implementation
   strategy is being directed by  the County Planning  Department,  but the EFC will
   continue to remain engaged and offer assistance in the development of this strategy.

   Berkeley County. WV

   The Berkeley County Commissioners accepted the source water protection plan and
   have  already begun implementation of certain components.   They have begun to
   discuss  how to set up a Water Resources  Advisory  Committee  to  advise the
   Commissioners  on water related  issues.  The group used a $25,000 EPA award it
   received to pay  for an educational program including an outreach booklet written for
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   the general public explaining the threats to drinking water in Berkeley County and the
   importance of source water protection.

   Appalachian Regional Commission (ARC) Drinking and Wastewater
   Infrastructure Needs Survey

   The University of Maryland EFC partnered with the EFCs at the University of North
   Carolina and Syracuse University on an Appalachian  Region proposal that was
   awarded funding. This project is part of a contract with the ARC to examine water
   and sewer infrastructure needs and  gaps in Appalachia. A graduate student was hired
   to help with administering the survey and  developing  a case study on Accident,
   Maryland.   The  project was concluded this past year with  the finalization of the
   survey results and the completion  of the case  study, which will be included  in the
   final report along with other case studies from around the region.
EFAB
   As a member  of the  EFAB  Nonpoint-Source Workgroup,  Dr. Jack Greer, the
   outgoing EFC Director, authored and submitted an article on watershed financing and
   the Chesapeake Bay Blue Ribbon  Finance  Panel for the EFAB newsletter (to be
   published in advance of the spring 2005 EFAB meeting). Dr. Greer also participated
   in regular conference calls and assisted in developing a strategy to be presented at the
   August  2004 meeting  of EFAB  in San  Francisco,  including a  letter  to the
   Administrator of EPA detailing important mechanisms for approaching the issue of
   nonpoint-source funding.  In addition, Dr.  Greer served  as an  expert witness on
   EFAB, and participated in the planning of a conference to be held in conjunction with
   the August EFAB meeting focused on the  critical issue  of affordability.  He  also
   helped facilitate this conference.
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UNIVERSITY OF LOUISVILLE EFC
                                              EFGN
  2004 Annual Report of the
  Environmental Finance Center Network


  Region 4 - EFC at University of
  Louisville


  The University of Louisville is one of two EFCs serving
  EPA's Region 4 states of Kentucky, Tennessee,
  Mississippi, Alabama, Florida, Georgia, South Carolina,
  and North Carolina

INTRODUCTION
     The Louisville EFC continued to broaden its training and technical assistance
     services  relating  to  brownfield  regeneration and  planning  for more
  environmentally  and economically efficient market-driven human occupation in
  2004. In addition to expanding its Practice Guides series of briefing papers for local
  officials and local volunteer and citizen committee members, the Center hosted an
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UNIVERSITY OF LOUISVILLE EFC
                                                                EFCN
   international  conference on planning  for  urban sustainability  from which it  is
   preparing a series of papers for dissemination.

   The EFC continued its direct technical  assistance with respect to contaminated land
   revitalization,  working  with   a   number  of  different  cities  on   brownfield
   redevelopment, smart  growth  planning for  area  development  agencies,  and
   municipalities and states on the roles environmental insurance can play in mitigating
   risks and attracting investments in reclamation. The EFC  also provided input  to
   EPA's Environmental Financial Advisory Board as  it addressed RCRA  financial
   assurance and ways of providing greater certainty over firms' financial  capacity  to
   remediate after completing ongoing operations.

ACCOMPLISHMENTS

   Among major activities of the EFC in 2004 was hosting the Sixth Symposium of the
   International Urban Planning and Environment Association in September. In addition,
   the EFC   continued to expand its Practice Guide series, and to provide technical
   assistance and training services in addition to producing other written materials for
   practitioners.

International Conference on Local Sustainable Development Efforts

   The 6th  International  Symposium  of  the  International Urban  Planning  and the
   Environment   Association  (IUPEA) was initiated by  the EFC  in   2003.  The
   Symposium was held in Louisville, September, 4-8, 2004, with the overall theme  of
   Global  Pressures  on  Local  Autonomy:  Challenges  to   Urban  Planning for
   Sustainability and Development.

   In addition to the EFC and EPA Region  4, the symposium was hosted by

   •   University of Louisville College of Business and Public Administration
   •   University of Louisville Center for Environmental Policy and Management
   •   Louisville Metro Government
   •   Federal Reserve Bank of Saint Louis

   Supporters included

   •   Ministry of the Environment, the Netherlands
   •   Kentucky Chapter of the American Planning Association
   •   Riverfields, an Ohio River conservancy
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UNIVERSITY OF LOUISVILLE EFC
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                                                                 EF©N
     • University of Cincinnati, School of Planning
     • Bluegrass Tomorrow

     Plenary speakers from outside the University of Louisville included:

     • A. Stanley Meiburg, Deputy Regional Administrator, Region 4, US EPA
     • Donald Mains, Deputy Assistant Secretary for Economic Development, US HUD
     • Edward Gramlich, Member, Board of Governors, US Federal Reserve System
     • Joan Riehm, Deputy Mayor, Louisville Metro Government
     • Raquel Pinderhughes, Professor of Urban Policy, San Francisco State Univ.
     • James Throgmorton, Professor of Urban and Regional Planning, Univ. of Iowa

     The  symposium attracted 213 attendees, including both public officials  and
     academic  researchers, representing  23  different countries  who presented  and
     discussed 78 papers based on their research and practice experience.

     Field  trips to  examine inter-state cooperation in Ohio River preservation, sprawl
     management around Lexington, KY, and inner city redevelopment in Louisville,
     KY were included  in the program, as was a focus group session on planning for
     compliance with the new PM 2.5 air quality requirements that brought international
     insights to bear on the policy options  facing  the Jefferson County (KY) Air
     Pollution Control District.

Practice Guides and Working Papers

     The Louisville  EFC's Practice  Guide series is  focused  on aspects of land use
     planning and  information systems  for  promotion  of  urban  infill, brownfield
     redevelopment and other aspects of smarter urban growth. The series development
     is ongoing, and is  specifically  structured to take advantage of efforts conducted
     under other auspices by Center personnel. (Authorships below identify EFC Staff
     in bold and EFC Associates in parentheses)

         Practice Guides Completed in 2004 and Available On-Line

           "Greyfields" — The New Horizons for Infill and Higher Density Regeneration
          by K.M. Chilton

          C&D  Debris  Recycling for  Environmental  Protection  and  Economic
          Development by N.G. Leigh and L. Patterson
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UNIVERSITY OF LOUISVILLE EFC
                                                                  EFCN
          Practice Guides Initiated before 2004 but still not completed

          Financing Local Public Infrastructure: Determining an Effective Revenue
          Stream that Supports Local Projects (S. Coffin)

          Developing New Uses for Low-to-no-MarketBrownfields: The Affordable
          housing Solution (S. Coffin)

          Working Papers Posted On-Line

          The Brownfields Phenomenon: Much Ado about Something or the Timing of
          the Shrewd!" by K. Wernsted, A. Alberini, L. Heberle, and P.B. Meyer.

     The  Center has  also provided  direct technical  assistance services to  clients  in
     Region  4 and elsewhere,  and  contributed to  providing  training  and technical
     assistance  through   a  range of other publications  and  presentations.  These
     dissemination products have drawn on information collection through EFC funding,
     but, in most instances, also have drawn from or built on data gathered and research
     conducted by Center Staff and Associates. Publications span professional journals,
     trade  press and academic outlets, since all influence  policy discussions and can
     contribute to more effective and cost-efficient environmental finance practice.

     While some  formally funded activities are  listed below, the range of research
     endeavor that has contributed to the Center's productivity includes extensive efforts
     funded internally as part of university commitments of faculty time to the practical
     application of research.  The apparent leverage of the EFC funding,  therefore,
     significantly understates its real stimulus on related activity if only the  externally
     supported work is included.

Technical Assistance/Training Services Provided

     EFC staffer K. Cairns  served on the Board of the Kentucky Pollution Prevention
     Center, continuing her term as the governor's appointee.

     EFC Director P.B. Meyer provided assistance to efforts at University of Illinois -
     Urbana-Champaign on the use of Tax Increment Financing to facilitate regeneration
     of Great Lake shorefront brownfields. Provided guidance on  resource documents
     and feasibility analysis to planners at that university.
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UNIVERSITY OF LOUISVILLE EFC
                                                                     -s-
                                                                 EF©N
     EFC Director P.B. Meyer provided information to the Mississippi Department of
     Environmental Quality on reuse options for the Vicksburg Chemical facility.

     EFC Director P.B. Meyer participated and provided briefings in Regions 2, 8 and
     10  on public sector utilization  of environmental  insurance both to  protect
     government fiscal policy and to encourage private sector investment on previously
     contaminated  sites   in     OSWER's  Office   of  Brownfields  Cleanup   and
     Redevelopment Workshops on  Environmental  Insurance  for  Regulators.   The
     briefings were conducted for Region 8, in Denver, CO, in April; for Region 10, in
     San Francisco, CA, in June; and for Region 2 in New York in December.

     EFC Director  P.B. Meyer  and C. Norton, EFC Planner, both  attended EPA's
     Brownfields  2004 meeting in  St. Louis  in September.  Dr. Meyer organized and
     moderated a session  on  private developers' valuations of different incentives
     intended to attract them to brownfields, "ULI Developer-Members Tell Us  What It
     Takes to Attract Them to Brownfields." Panel members included private developers
     and state officials. Both EFC representatives participated actively in a brownfields
     transaction forum to learn more about the operations and concerns of public sector
     agencies  attempting  to  sell  brownfields, and  redevelopers  looking  for  new
     investment opportunities.

New Print Publications

     EFC Director P.B. Meyer, K. Wernstedt and A Albenni" Practice Note: Brownfield
     Redevelopment"  Urban Land, July, pp. 28-31.

Externally-Funded Research Projects  Involving EFC Personnel

     The  EFC at  Louisville is imbedded in the University's Center  for Environmental
     Policy and Management (CEPM). Many  of the EFC personnel also work part-time
     on other projects  in CEPM, tying their technical assistance and training functions in
     the EFC to related projects supported with other funds.  These projects include:

     Urban Regeneration  through Environmental Remediation:   Valuing Market-
     Based Incentives for Brownfields Development. Continued work on this study for
     EPA and the National Center  for Environmental  Research with Resources for the
     Future and the University of Maryland, initiated May  1, 2002. This study looks
     explicitly at  what public center incentives are most likely to attract developers to
     undertake  projects  on brownfield sites, providing data for more cost-effective
     redevelopment subsidy practices by both state  and  local governments. Findings
REGION  4

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                                                                    •*•
UNIVERSITY OF LOUISVILLE EFC
                                                                 EFCN
     from this study were part of the dissemination and training activities of the EFC in
     2004.

     Expediting the Environmental Insurance Purchasing Process. Continued work on
     a study  for EPA's OSWER Office of Brownfields Cleanup  and Redevelopment
     with Northern Kentucky University (NKU), initiated October 1, 2002. This study
     involves following three local  governments (one  each in Regions 4, 5, and 6), as
     they attempt to learn about, and  work their way through,  the  complexities of
     acquiring  environmental  insurance  in   conjunction  with   pursuing  their
     redevelopment efforts involving contaminated land. The cases will then be used to
     provide  guidance  on how to expedite the process. The EFC provided technical
     assistance to the local governments the case study cities to facilitate their efforts.

     Accelerating Brownfields Cleanup and Redevelopment with Innovative  Uses of
     Environmental  Insurance. New five year program  of research and technical
     assistance for EPA's OSWER Office of Brownfields Cleanup and Redevelopment
     with NKU, initiated October 1, 2003. This project  involves updating information on
     available insurance products applicable to  redevelopment of contaminated sites,
     monitoring state efforts to ease access to environmental  insurance, investigating the
     potential for pooling certain types of small brownfield sites such as old gas stations
     to provide access to insurance, promoting an area-based approach in revitalization
     efforts, and otherwise promoting infill through new risk management  approaches
     that ease access to capital.

INITIATIVES FOR  2005

     The new initiatives launched by the Louisville EFC in 2004 represent efforts to
     build on the foundation already laid.  As  noted  above, complementary research
     efforts were undertaken during the year. Those efforts should contribute to technical
     assistance and training products in 2004 and beyond. Work on new Practice Guides,
     intended  for release in 2005,  was  initiated. EFC personnel  also prepared other
     publications, both in print and on-line.

Practice Guides Developed in 2004 now in Preparation for On-Line
Posting

     Contaminated Properties:  A  Community  Guide to  Federal Regulations and
     Programs by S. Hollis and S. Opp
REGION  4

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UNIVERSITY OF LOUISVILLE EFC
                                                                    -s-
                                                                 EF©N
     Initiating a Local Brownfields Programs: Outcomes Depend on Where you Place It
     by S. Opp

New Dissemination Efforts

     L. Heberle, with S. Coffin from St. Louis University and D. Bates of the College of
     New Jersey, is preparing a paper on "Property Rights, the American Dream, and
     Communist Urban Outsiders: Constructing the Anti-Smart Growth Message" for
     the Urban Affairs Association meetings in Salt Lake City, UT, in April.

     C. Norton is preparing a paper on "Brownfields outside the box:  Off-site impacts
     and the returns to local remediation subsidies" for the Urban Affairs Association
     meetings in Salt Lake City, UT, in April.

     L. Heberle  and   P.B.Meyer  are preparing  a  paper  on  on  "Public-Private
     Partnership Problems: Mismatche Public  and Private Sector Perceptions of the
     Brownfield Issue and the Effects on Redevelopment Policy" for the Urban Affairs
     Association meetings in Salt Lake City, UT, in April.

     K. Cairns is  preparing a paper on "The Long and Rocky Road:  A Case Study of
     Public  Involvement and Participatory Planning in Environmental Justice Policy
     Issues" for the Urban Affairs Association meetings in Salt Lake City, UT, in April.

New Participation in EFAB Task Forces

     The  EFC continued work on  financial  assurance  requirements under RCRA
     regulations in order to examine some issues associated with adding a new financial
     obligation for potentially polluting small businesses and assigned a new University-
     supplied graduate  research  assistant,  Susan Opp,  to collect additional information
     and develop possible policy options. Specific involvements included:

     •      Work  with  the HQ Environmental Finance Team and  Region 4 Deputy
            Administrator Stan Meiburg, who is also the Designated Federal Official for
            the EFAB, on  scheduling speakers  and  preparing content plans  for a
            workshop on financial assurance and insurance for June, 2004.

     •      Attended and participated in  the  workshop  on financial assurance and
            insurance, New York, NY, June 14-15.
REGION  4

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                                                                    •*•
UNIVERSITY OF LOUISVILLE EFC
                                                                 EFCN
     •     Worked on follow-ups to the workshop and on defining some of the next
           steps for the EFAB Workgroup.

Print Publications in Process

     L. Heberle and. K. Wernstedt. "Revaluing Brown/Held Redevelopment Incentives:
     Public Sector perceptions of the redevelopment process." Submitted to Economic
     Development Quarterly, article currently in revision.

     L. Heberle submitted "Contesting Social Capital: Definition and Measurement
     Issues Continue," an article addressing the ways in which misunderstandings about
     the concept of "social capital" can confuse and undermine communities' capacities
     to plan for themselves and defend their physical and social environments, to the
     Journal of Urban Affairs.

     T. Lambert and P.B. Meyer "Is Sprawl to Blame for Slower EMS Response
     Rates!" Submitted to Regional Science and Urban Economics.

     K. Wernstedt, P.B. Meyer, A. Alberini and L. Heberle "Incentives for Private
     Infill Development in U.S.  Urban Areas'" Submitted to the Journal of
     Environmental Planning and Management.

     P.B. Meyer prepared a sidebar commentary on the Atlantic Station  project for the
     Winter 2004-5 issue of the Partners newsletter of the Community Affairs
     Department of Federal Reserve Bank of Atlanta.

     L. Ye., S. Mandpe, and P.B. Meyer. "What IS Smart Growth? - Realty!" Accepted
     by the Journal of Planning Literature; forthcoming February, 2005.

     Initiatives for 2005 undertaken by the EFC in 2004 included planning for a number
     of new Practice Guides intended to take advantage of information garnered in the
     course of data collection during the year. A  number of other potential publications
     were  prepared  and  submitted  for  review. Training  and technical  assistance
     provision  for  2004 was not scheduled in 2003,  largely because  such activity is
     generally late early in the calendar year, and the efforts generally  have substantial
     lead times.
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UNIVERSITY OF LOUISVILLE EFC
                                                                    -s-
                                                                 EF©N
Practice Guides Initiated in 2004 and Awaiting Completion in 2005
     Low Population Density and Emergency Response: Accepting Delays or Higher
     Service Costs by P.B. Meyer and T. Lambert

     Historic Preservation and Brownfield Redevelopment - Not Conflicting, but
     Complementary by C. Norton

     Alternative Financing for Brownfield Redevelopment - Possibilities and
     Implementation Example?, by S. Opp

     Citizen Participation and Project Cost - the Costs and Benefits of Openness and
     Community Involvement by K. Cairns

Working Papers in Process

     All conference papers  presented in  2004  and  in process  for  Spring  2005
     presentation  are being prepared for  inclusion in the Working Papers series by
     Summer 2005.

New Research Activities

     Collaboration with Dr. Thomas  Lyons of the School of Urban and Public Affairs,
     University of Louisville, on a project to examine "Entrepreneurship Opportunities
     and Responses in  the  Brownfield Redevelopment Arena  - Factors Affecting
     Capacity to  Capitalize  on Opportunities in an Emerging Marketplace"  through
     examination  of developers who have pursued contaminated  land redevelopment
     under state voluntary cleanup programs in Region 4 and other states.

        •  Support in the form of internal University funds and  the services of a
           graduate assistant for the 2004-5 academic year will permit this project to
           proceed, starting in August, 2004.

     Collaboration with Dr. David Simpson of the School of Urban and Public Affairs,
     University of Louisville,  on a  project on  "Understanding Risk and Hazardous
     Materials and Wastes: Perception and Reality in the Conceptualization of Risk at
     the Community Lever with a national survey of local government risk management
     officials to see if they understand the environmental risks they face (from floods,
     hurricanes, etc.) that are associated with sites  with untreated pollution or residual
     contamination associated with RBCA-based remediations.
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                                                                     •*•
UNIVERSITY OF LOUISVILLE EFC
                                                                 EFCN
        •  Pre-proposal submitted to the Public  Entity Risk  Institute (PERI)  and
           received positively.  University commitment  of needed  matching funds
           obtained. Full proposal for review by PERI board is planned to be prepared
           early in 2005.

     Finalized negotiations with the Development, Community and Environment Division
     of the EPA Office of Policy, Economics and Inoovation for a competitively awarded
     study of "Smart Growth Policies That Spur Brownfields Revitalization" Publication of
     a four color glossy report for mass public distribution is planned for late 2005.

SPECIAL PROJECTS

     In addition to its main information generation/dissemination activities with respect
     to environmental finance  and planning for the uses of  land in and around urban
     areas, the Louisville EFC undertook or launched the following special projects in
     2004 that are not described above:

     •  Completed process work on, and have initiated support for implementation of
        the recommendations  from,   a  US  Department  of Education  -  funded
        environmental  education  and management project, "Partnerships for a Green
        City."  The planning effort involved  the  University of Louisville,  Jefferson
        County (KY) Public Schools and Louisville Metro Government in a problem-
        solving and project-planning collaborative consultation to:

        —» Develop recommendations for a comprehensive environmental education
           program for JCPS and the community;

        —» Identify  research areas that assess children's exposure to environmental
           pollutants, health outcomes, and impacts on cognitive abilities and behavior;
           and,

        —» Identify   approaches  for the   partners  to  create   sustainable  and
           environmentally friendly buildings and infrastructure (e.g. schools, public
           buildings, roads, water systems).

     The  EFC  will  support  and provide  technical assistance  support  to  their
     implementation going forward into 2005.
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UNIVERSITY OF LOUISVILLE EFC
                                                                EFGN
EFC COLLABORATIVE ACTIVITIES SUMMARY

     As an active member of the Environmental Finance Centers Network, the Louisville
     EFC participated in the preparation of proposals for funding of different network-
     wide environmental finance  projects. The Center also  initiated efforts at  the
     preparation of a collaborative network project on aspects of environmental finance
     for brownfield redevelopment, drawing on the collective experience of different
     centers across the nation. Dr. Peter Meyer, EFC Director, continued in his role as an
     officer of the Environmental Finance Center Network (EFCN), becoming President
     at the March Directors meeting in Washington, DC, and attending meetings with
     EFCN colleagues following  the EFAB Summer meeting in San Francisco(August).

     The EFC participated in two EFCN collaborative proposals in 2004:

     •  "USDA  Technical  Assistance and Training  program  (USDA  TAT)"  The
        proposal involves supporting the improvement of small rural areas' community
        capacity to plan for and  finance improvements  in their drinking water systems.
        EFC4@UofL intends to be a sub-grantee to the PI, the Region 2 (Syracuse)
        EFC, with a KY budget of $80,000.

     •  "Financing and Water/Wastewater System Security'' Proposal submitted by the
        New Mexico EFC  on behalf of the EFC Network at the request of the EPA
        Office of Water to address the financial and risk management decision-making
        process appropriate to consideration of spending on protecting water systems
        from any form of terrorist attack. The University of Louisville EFC role will be
        to take the lead in preparing a Financial Guide to Water and Wastewater System
        Security,  for use in training operators of small water  systems  in appropriate
        decision processes for allocating their security resources, for a $50,000 share of
        the project budget.

PRESENTATIONS,  CONFERENCES AND MEETINGS

     Presentations, whether to  academics  active in providing  policy  advice or to
     practitioners engaged in policy formulation and implementation, are frequently the
     most immediate and rapid means of communicating new findings and knowledge to
     improve practice. Moreover, participation in conferences in which information is
     exchanged  constitutes  one method by  which the  Center staff acquires  new
     information and case study data that contribute to our guidance dissemination. The
     Louisville EFC thus takes  care to  maintain a high level of activity in this key
     information dissemination arena. Presentations to academic gatherings are limited
REGION 4

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UNIVERSITY OF LOUISVILLE EFC
                                                                  EFCN
     to those organizations whose attendees have strong interest in,  and thus study and
     report on, public policy practices that can inform environmental finance policies
     and procedures. International conferences are exceptionally valuable in this regard,
     since they offer ideas for innovation that are not available in a purely US exchange.
     The Center's presentation activities in 2004 included the following,  all of which
     facilitated conference  participation  and  information acquisition by   the  staff
     involved.

     • Dr. Heberle organized and presented at a colloquy on sprawl for Urban Affairs
     Association  Annual  Conference,  Washington,   DC,  in  March: "Sprawl and
     Suburbia: What Are They, And How Do We Measure Them?"
     • Dr. Meyer organizing and presented at  a colloquy on brownfields, "Brown/Held
     Reclamation - Community,  not just Economic, Development" at the Urban Affairs
     Association Annual Conference in March in Washington, DC.
     • Dr. Meyer participated in a panel on environmental financing  and conservation at
     the Soil Conservation Society meetings in New York in July
     • Dr.  Heberle  attended the American Sociological Association meetings and
     presented a  paper on  social capital and community capacity for  constructive
     response to environmental and socio-economic change in San Francisco in August.
     • Dr.  Cairns presented "Education into  Citizenship:  Environmental Education,
     Participatory Democracy,  and the  Precautionary Principle"  at the  International
     Urban  Planning  and  the  Environment  Association  (IUPEA)  conference  in
     Louisville in September.
     • Dr. Meyer, with Dr. K. Wernstedt of Resources for the Future, completed a paper
     on "Developers' Ratings of Different Incentives for Infill Projects"  for presentation
     at the Association of Collegiate Schools of Planning meetings  in Portland, OR, in
     October.
     • While on a research trip in Great Britain in November (not funded by the EFC),
     Dr. Meyer presented EFC-related papers to academic and practitioner audiences at
     three UK universities:

     — "Recent Environmental and Site  Regeneration  Policy in  the United States
     General  Business  Considerations  and  Property  Developers' Responses  to
     Incentives" European Regional Business  & Economic Development Unit, Leeds
     Metropolitan Univ.
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UNIVERSITY OF LOUISVILLE EFC
                                                                  -s-
                                                               EF©N
     — "Comparing Urban Regeneration Approaches - US vs.  UK (New York West Side
     vs. Thames  Gateway as an example)'' Department of Urban Development and
     Regeneration,  School of Architecture and the Built  Environment,  Univ.  of
     Westminster, London.

     — "Developers and Investment Incentives -  What is reduced uncertainty REALLY
     worth  to real estate investors?'  Oxford  Institute  for Sustainable Development,
     School of the Built Environment, Oxford Brooks University.
REGION 4

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CLEVELAND STATE UNIVERSITY EFC
                                      EFGN
        ENVIRONS-jJ/AL
          CENTER
  2004 Annual Report of the
  Environmental Finance Center Network

  Region 5 - EFC at the Maxine Levin
  College of Urban Affairs at Cleveland
  State University
  Cleveland State University is the Environmental Finance
  Center serving the Great Lakes Region
  The Great Lakes Environmental Finance Center (GLEFC) assists communities and
  public, private, and non-profit sector entities in the Great Lakes states of Illinois,
  Indiana, Michigan, Minnesota, Ohio, and Wisconsin build innovative, cost effective,
REGION 5

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CLEVELAND STATE UNIVERSITY EFC
   and high quality strategies for environmental improvement and sustainable economic
   development.

   The GLEFC is housed within the Maxine Goodman Levin College of Urban Affairs
   at Cleveland State University.  The GLEFC provides technical  assistance, training,
   and applied research as a resource  for  state and local  governments, and public,
   private, and non-profit organizations in U.S. EPA Region  5.  The Center assists these
   entities in  solving  financial   problems  related  to  environmental  facilities and
   resources. Services include financial and economic analysis and strategies;  policy
   analysis and  planning; brownfields community  advisory  services;  research and
   information services;  and training seminars and conferences. GLEFC utilizes  many
   tools  to assists clients, including financial and budget analysis, market and impact
   analysis, best practice reviews,  training seminars and conferences, focus groups and
   community visioning/strategic planning processes,  and environmental  planning and
   program evaluation.

ACCOMPLISHMENTS

   In 2004, the GLEFC portfolio of projects included several new projects, projects that
   are driven by  continuing partnerships with  federal,  state  and local  governments
   spanning  two or more years,  and  second and third phases of externally funded
   projects.

   As in  prior  years, the GLEFC provided technical  assistance, applied research,
   seminars/training, counsel, and testimony to local, state,  federal; and  not-for-profit
   organizations and clients throughout U.S. EPA Region 5.  The GLEFC continues to
   provide support to the Federal Executive  Board of Northeast Ohio in facilitating  an
   intergovernmental (federal, state, and local) collaboration  on brownfield finance and
   redevelopment, now on a state-wide basis.   The GLEFC is working with the U.S.
   EPA  Region  5 Brownfields   Office to assist  in initiating regional brownfield
   collaboration in Indiana. The GLEFC  is also working on externally funded, multi-
   stage, and multi-client projects on a broad  array of environmental public  policy
   initiatives.   In addition, the GLEFC  is engaged  in  policy related work with  the
   committees of the U.S. EPA's  Environmental Finance Advisory Board, developing
   strategies for  the efficient and effective  management and  financing  of water and
   waste water utilities.
REGION 5

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CLEVELAND STATE  UNIVERSITY EFC
                                                                 EFGN
   The GLEFC year 2004 program included:

   Brownfields Technical Assistance:

   •  Brownfields One-Stop-Shop (BOSS) Forum. The GLEFC is in its fourth year
      of  convening  the forum  of  federal,  state,  and local  government  economic
      development and environmental officials, commercial and investment bankers,
      insurance  executives, foundation officials, and developers to review brownfield
      redevelopment projects seeking financial and programmatic support. In 2004, the
      GLEFC merged the BOSS Forum with the Ohio Brownfield Finance Partnership
      convened  by the Ohio Water Development Authority.  The GLEFC moved the
      site of the Forum meetings to capitalize on the emerging state-wide market for
      brownfield redevelopment projects.  The  GLEFC convened three meetings on
      April 1st,  July 8th, and October 17th with over 120 attendees representing public,
      private, and  not-for-profit organizations.   The  Forum  brownfield  project
      presentations included:
      April 1st:
           th.
                Middlebury Market Place Project in Akron
                SPECO-Kelsey Hays Site in Springfield
                Dayton Electroplate Site in Dayton
      July 8

           •    Kemper Road Project, Greater Cincinnati Development Authority
           •    South Euclid Project in South Euclid

      October 7th:

           •    Abandoned Gas Station Revitalization Program and Voluntary
                Corrective Action Rule: Ohio Bureau of Underground Storage Tank
                Regulation

      The BOSS Forum has served to bring together seemingly disparate audiences of
      engineers, lawyers, commercial and investment bankers, public  agencies, and
      private and  not-for-profit developers to assist local  brownfield redevelopment
      efforts in securing financial and technical assistance to elevate the viability of the
      projects.
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CLEVELAND STATE  UNIVERSITY EFC
                                                                EFGN
           Brownfield  Technical Assistance,  U.S. EPA.   The GLEFC provided
           technical assistance on brownfield remediation and redevelopment projects
           at the request of the U.S. EPA Region 5 Brownfields staff, including:

           o      Brownfield  Support  for  Small  Communities,  Indiana  Small
                  Communities Forum, Logansport, Indiana:  The GLEFC and the
                  U.S.  EPA, Region 5  continue to provide technical assistance  to a
                  consortium  of small  communities in Indiana to assist in accessing
                  funding  and  program  support  for brownfield remediation  and
                  redevelopment.

           o      Appalachian  Brownfield   Support   Initiative,   Clean  Ohio
                  Remediation Fund: The GLEFC continues to  assist the Clean Ohio
                  program and the Ohio Department of Development in building a
                  level of capacity in  rural southeast Ohio to apply for and  access
                  brownfield  assessment  and  remediation  grants.  The  GLEFC
                  conducted  a  phone  survey for  Buckeye  Hills  Development
                  Corporation  to  increase participation in Clean Ohio application
                  process;  conducted site  visits of potential brownfield assessment
                  and redevelopment projects in New Lexington, Meigs County, and
                  Marietta, Ohio.

           o      Brownfield Program and Funding Strategy,  St. Claire -Superior
                  Neighborhood  Corporation:  The  GLEFC   provided  technical
                  assistance and  strategy development support to a  Cleveland-based
                  neighborhood organization on  accessing federal, state and local
                  brownfield site assessment and remediation/redevelopment funding.

           Industrial Land Bank Strategy and Business Plan, City  of Cleveland:
           Development of a strategy and business plan for an industrial land bank to
           acquire and assemble  larger  landscapes  of property  for  economic
           Development purposes.  The industrial  land bank  will also be utilized to
           acquire some  environmentally  contaminated  properties  (of strategic
           importance)  to clean and accumulate into large marketable properties.  The
           GLEFC is  facilitating the development  of the strategy and assembly of
           decision rules to guide the acquisition and disbursal of properties with the
           Mayor's cabinet.  The GLEFC project staff is conducting a best practices
           study  to  determine  the  most  effective  administrative  structure  and
           operations.
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CLEVELAND  STATE UNIVERSITY EFC
                                                                 EFGN
       •    Cuyahoga County Brownfield Assessment Grants Strategy and Process,
           Cuyahoga County Department of Economic Development: The GLEFC
           facilitated a strategy development session with the staff of the Cuyahoga
           County brownfield redevelopment staff to assist in defining the criteria for
           the selection of environmental engineering firms  to conduct grant funded
           brownfield site assessments.

       •    Brownfield  Assessment Grant Strategy, Northeast Ohio Soil and Water
           Conservation District: The GLEFC facilitated a  process for defining the
           program   strategy  and  decision  rules  for  selecting  (environmental
           engineering) contractors  to  conduct  grant  funded  brownfield  site
           assessments.

       •    All  Appropriate  Inquiry  Sarbanes-Oxley  Presentation,  National
           Brownfields Association  Conference,  Toledo,  Ohio:  Kirstin  Toth
           presented the status  of the All Appropriate Inquiry/Sarbanes Oxley  at a
           regional conference of the National Brownfields Association.

       •    Brownfield  News, Editorial Board.  EFC Director Kevin O'Brien serves
           on the Editorial Board of the Brownfield News magazine, as the brownfield
           finance editor.

Finance and Policy Research  and Technical Assistance

       •    Ohio Land  Fill Market and Cost Structure Study, Ohio Department of
           Development. The GLEFC conducted market and  cost structure analysis of
           land-fill  fees in  Ohio  to aid  the  Clean Ohio  Council in  developing
           performance measures  to  assist in modeling the land fill  component of
           brownfield remediation grant applications.

       •    Capital  Contracting in 2003, Build Up Greater  Cleveland,  Greater
           Cleveland Growth Association. The GLEFC conducted an analysis of the
           capital  contracting   and  planning by  greater  Cleveland   infrastructure
           agencies   in calendar  year  2003.  Conducted  in  January  2004,   the
           retrospective analysis of capital funding attracted serves as information and
           data to support the annual strategy of the public - private partnership for
           infrastructure advocacy.

       •    Useful Life  Financing of Water Facilities: Useful Life Workgroup, U.S.
           EPA Environmental Finance Advisory  Board (EFAB):   The GLEFC
           contributed to the  EFAB Workgroup concerned with exploring strategies for
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CLEVELAND STATE UNIVERSITY EFC
                                                               EFGN
           creating new revenue  flows and  linking  the amortization of debt to the
           useful life of the capital installation being financed.  The final report was
           issued in Fall 2004.

Program Development and Evaluation

      •    Clean  Ohio  Brownfield  Remediation  Grant  Program,  Year One
           Program Evaluation,  Delta Institute. The GLEFC is partnering with the
           Chicago based Delta Institute to conduct an evaluation of the  first year of
           operation of the Clean Ohio Brownfield Remediation grant program.  The
           evaluation, initiated during fall 2004,  is expected to be  completed by
           summer 2005.

      •    Best Practices  in  Financing Lead  Abatement:  Cuyahoga County
           Department of Health, City of Cleveland Department of Health, U.S.
           EPA Region 5, U.S. Department of Housing and Urban Development,
           and Centers for Disease Control. At the request of the U.S. EPA Region 5
           office,  the GLEFC  initiated a national  best practices scan to identify
           innovation in financing of lead remediation and  abatement programs. The
           best practice scan is being conducted for a consortium of local and federal
           agencies.

      •    Strategic  Plan for Coastal Resources  Management Training:  Ohio
           Department  of  Natural  Resources, Old  Woman  Creek  National
           Estuarine Research Reserve, and the Ohio Sea  Grant College Program:
           The GLEFC concluded the third component of a three-year (three segment)
           project that assessed the need and market for coastal resources management
           training needs in the Lake Erie Basin in Ohio.  The final phase, conducted in
           2004, facilitated the development of a strategic plan for delivery of training
           services. The GLEFC competitively bid for the externally funded strategic
           planning project.

      •    National Scan of Coastal Resources Management Training Strategies of
           NOAA Affiliated National Estuarine Research Reserves (NERRs), U.S.
           Department   of  Commerce,  National Oceanic   and  Atmospheric
           Administration: The GLEFC conducted a review of the Coastal Resources
           Management  Training program strategies of the 26 National  Estuarine
           Research Reserves. The GLEFC reviewed  the strategic plans of the NERRS
           programs to define the  common strategies  in coastal training programs. The
           GLEFC competitively bid for the externally funded NOAA project.
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CLEVELAND STATE UNIVERSITY EFC
                                                                EFGN
           Needs  Assessment and Market Analysis  of  Coastal  Training  Needs,
           Apalachicola  (Florida) National  Estuarine  Research  Reserve: The
           GLEFC  conducted  an  assessment  of  the need  for  coastal resource
           management  training   programs  in  the  panhandle  watershed  region
           surrounding  the  Apalachicola  National  Estuarine  Research Reserve
           (NERRs). The GLEFC coordinated the project through the Region 4  EFC in
           North Carolina. The GLEFC also conducted an analysis of the market for
           coastal resource management training in the Apalachicola watershed. The
           GLEFC competitively bid for the externally funded Apalachicola NERRs
           project.
Brownfields Seminars/Training
           Brownfield  Redevelopment:  Nuts and Bolts  Finance Seminar,  U.S.
           HUD and U.S. EPA, Chicago, Illinois, June, 2004.  The GLEFC conducted
           a two-day brownfield finance seminar as a part of the U.S. EPA and HUD
           annual  seminar in Chicago for local government officials.   The GLEFC
           developed and utilized 3 case studies in  the workshop to  train the 42
           participants  on steps  in  determining the  redevelopment viability  of  a
           brownfield site, how to develop a pro forma/redevelopment financial  plan,
           and how and where to seek financing for the redevelopment.  The GLEFC
           partnered with John Magill of the Ohio Department of Development and the
           Clean Ohio Remediation Fund.

           Healthy Homes National Conference, U.S. Department of Housing and
           Urban Development, U.S. EPA, and the Centers for Disease Control At
           the request of  the U.S. EPA Region 5 office, the GLEFC facilitated the
           development of a national  conference strategy/program for  the  joint
           EPA/FIUD/CDC Healthy Homes National Conference in Orlando, Florida.
           The  Conference,  convened  in June,  2004,   was  utilized  to  exchange
           strategies  on the identification and remediation  of lead  contaminated
           residential properties.

           Capital Planning and Finance Michigan AWWA and Michigan Water
           Environment Association 2004 Joint Conference. The GLEFC  presented
           a session on the "Strategic Management of Water and Waste Water Utilities
           While Complying with GASB Statement No.  34" at the annual conference of
           the Michigan AWWA/Water Environment Association  in Grand Rapids
           Michigan in August, 2004.
REGION 5

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CLEVELAND STATE UNIVERSITY EFC
                                                               EFGN
      •    Utilizing Asset Management Systems  to Facilitate Private Economic
           Growth in Croatia, U.S. Agency for International Development  The
           GLEFC in collaboration with the  Cleveland State University-based Unger
           Croatia Center for Local Government Leadership is developing a university
           curriculum  (for graduate  classes  and professional continuing education
           training for government officials) for the portfolio management of publically
           owned physical assets to facilitate  private economic growth.  EFC Director
           Kevin  O'Brien traveled  to  Zagreb  and  Rijeka,  Croatia to  interview
           academics, public managers, and economic and finance ministers of Croatia
           on the need and substance of asset management.

      •    Brownfield 2004 Conference.  The GLEFC participated in the U.S. EPA
           sponsored Brownfields 2004 Conference in St. Louis, Mo.

Finance and Policy Seminars/Workshops

      •    Environmental Finance in the Great Lakes  Region seminars for the
           Cleveland  Council  on  World  Affairs.  The GLEFC has conducted
           environmental  finance seminars  for  U.S.  Agency for  International
           Development and U.S. Information Agency sponsored trips for foreign
           officials and academics. The seminars included the following participants:

                o  Ukrainian Public Officials
                o  South American Public and Private Sector Leaders

      •    CapFinance  Training.  The  GLEFC partnered  with  the Boise  State
           University EFC and the Ohio office of RCAP to conduct training sessions in
           Cleveland and  Columbus,  Ohio for small  and medium  sized  local
           governments  on  the  capital  planning and financing software  package
           developed by the Boise State EFC.  The GLEFC provided a presentation on
           GLEFC Asset Management and  GASB 34  Compliance or  "How Does
           CAPFinance Assist Your City in Managing Infrastructure'". In addition, the
           GLEFC partnered with Boise State to present the  CAPFinance Model and
           GASB Statement No. 34 update to  the annual Convention of the Ohio Water
           Environment Association in Columbus,  Ohio.

      •    Nuts and Bolts of Brownfield  Redevelopment Financing  Seminar: Co-
           sponsored by  the  U.S.  EPA  Region 5  Brownfields Office and  U.S.
           Department of Housing and Urban Development.  The GLEFC plans and
           conducts the State and Local Sources of Brownfield Funding annual seminar
           offered  in Chicago.  The GLEFC developed case studies that profiled
REGION 5

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CLEVELAND STATE UNIVERSITY EFC
                                                                EFGN
           specific brownfield redevelopment projects in cities with a size, scale, and
           scope that was appropriate for the audience. The week-long training session
           was developed the GLEFC and focused on brownfield redevelopment pro-
           forma, defining the financing alternatives available.

PUBLICATIONS

      The GLEFC has been active in publishing academic and applied articles and book
      chapters resulting from the applied research, technical assistance, and  policy
      projects undertaken in 2004. Those articles published from 2004 work include:

           Hill,  Edward, W, and B.Geyer, K. O'Brien, et.al. "Slanted Pavement: How
           Ohio's Highway Spending Shortchanges Cities and Suburbs." In Taking the
           High Road: A Metropolitan Agenda for Transportation Reform, edited by
           Bruce Katz and Rob Puentes. Brookings Institution Press, Washington, D.C.
           publication pending.

           Kellogg, Wendy A. and Kevin O'Brien, Claudette Robey, et.al. "Assessing
           Coastal Resources  Management Training Needs'' Coastal Management,
           Publication Pending.

           Kellogg,  Wendy A.  and  Kevin  O'Brien, Claudette  Robey, et.al.  "The
           Current Coastal Management Training Market in Ohio's Lake Erie Basin."
           Coastal Management, July - September, 2004.

NEW INITIATIVES FOR 2005

      The GLEFC will  pursue both continuing and new initiatives in 2005,  in the
      policy areas of brownfields and sustainable futures.

      •   The GLEFC will  continue to convene Brownfield One Stop Shop (BOSS)
          Forum and to expand the program to assist small and medium sized cities in
          Ohio.
      •   The GLEFC will continue to work on brownfield related activities through the
          U.S. EPA, Region V office.

      •   The GLEFC will continue to work with the U.S. EPA Region 5 Brownfields
          Office  to provide brownfield technical assistance to cities throughout the
          Region.
REGION 5

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CLEVELAND STATE UNIVERSITY EFC
      •  The GLEFC will continue to pursue contracts with NOAA and its National
         Estuarine Research Reserves to continue to build on the expertise developed
         through the coastal resources management training projects.

NETWORK COLLABORATION
         CAPFinance. The GLEFC continues to collaborate with the Boise State
         University EFC to provide training to drinking water and water treatment
         utilities on the use of CAPFinance, the capital asset management system.

         The GLEFC will continue to work with the members of the Environmental
         Finance Center Network (EFCN) as collaborative projects emerge.
PRESENTATIONS, CONFERENCES AND MEETINGS

      The GLEFC will continue to make presentations in national, state-wide, regional,
      and local professional/industry trade groups and organizations on environmental
      finance related topics.  The organizations include the Council of Infrastructure
      Finance Authorities, Government Finance Officers Association, National League
      of Cities, Municipal Leagues, national brownfields conferences, Build Up Greater
      Cleveland, the Federal Reserve Bank of Cleveland, and U.S. EPA Region 5.

RESULTS

      The Great Lakes Environmental Finance Center continues to provide financial
      outreach  assistance to  state agencies and local communities and not-for-profit
      organizations  on environmental compliance  and sustainable  strategies.   The
      continued growth in the annual GLEFC program and the expanding partnerships
      with national, state, and  local entities provides  evidence of the impact of the
      organization.
REGION 5

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NEW MEXICO INSTITUTE OF MINING AND TECHNOLOGY EFC
                                          EF©N
New Mexico Tech
    Environmental Finance  Center
  2004 Annual Report of the Environmental
  Finance Center Network

  Region 6 - EFC at the New  Mexico
  Institute of Mining and Technology
  The New Mexico EFC was established in  1992 as the first
  Environmental Finance Center
INTRODUCTION

     The Environmental Finance Center serving EPA Region 6 (NM EFC) completed its
     first full year as a program of the New Mexico Institute of Mining and Technology
  (New Mexico Tech) in 2004. The NM EFC experienced a significant growth in both
  staff and program activities in 2004.  Three new full-time staff members were hired,
  bringing the total staff to 9.

  The NM EFC's core mission is to help state, local, and tribal governments meet
  environmental infrastructure needs and regulatory compliance through state and local
  capacity building and technical information transfer.  Capacity building includes
  enhancing technical, managerial, and financial capabilities to achieve consistent and
  sustainable regulatory compliance and to develop sustainable infrastructure.
REGION 6

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 NEW MEXICO INSTITUTE OF MINING AND TECHNOLOGY EFC
                                                                 EFGN
   The NM EFC assists in local capacity building by:

   •      Examining  alternative  approaches  to  meeting  regulatory  compliance  or
          environmental infrastructure needs
   •      Empowering communities to act as the "drivers" for their own projects
   •      Assisting with procuring professional services
   •      Presenting funding alternatives
   •      Acting as a bridge between federal, state, local and tribal governments
   •      Presenting neutral analyses of issues or projects
   •      Gathering stakeholder input

   The NM  EFC has been extremely active over  the past year and has experienced
   significant growth in  its program activities.  The major projects  that were  active or
   completed in 2004 include the following. Each of these activities is described in more
   detail below.

   •      Capacity Development Activities for Region 6 states
   •      Capacity Development Program for New Mexico
   •      Capacity Development for Tribal Water Systems
   •      Tribal Operator Certification Program
   •      Pilot Project: Feasibility Analysis of Water Supply for Small  Public Water
          Systems
   •      Resource-Based or Unified Source Water Protection Project
   •      Independent Analysis of FCS Leak Detection Technology for Albuquerque
   •      Water System Collaboration Pilot Project for New Mexico
   •      Water System Collaboration Project for New Mexico
   •      Public Management Finance Program

ACCOMPLISHMENTS

   Capacity  Development Activities for Region 6 States

   During 2004, the EFC continued to assist the EPA Region 6 states of Arkansas,
   Louisiana, New Mexico, Oklahoma, and Texas with the implementation activities
   associated with capacity development strategies, as required under the 1996 Safe
   Drinking Water Act (SDWA) amendments. This work included activities in three
   different categories as described below.
REGION  6

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NEW MEXICO INSTITUTE OF MINING AND TECHNOLOGY EFC
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                                                                 EF©N
          Technical Information Gathering and Transfer

          The EFC attended workshops and conferences to present papers, interact with
          states  and technical experts, and gather information on techniques, approaches,
          and tools that could be used by the states. The types of workshops included asset
          management,   capacity   development,  drought  management,   and  water
          conservation.

          Capacity Development Implementation Assistance to Region 6 States

          The NM EFC worked with the EPA Region 6 states on capacity development
          assistance, including extensive discussions with the New Mexico Environment
          Department (NMED) on ways to improve their capacity development program,
          particularly in capacity assessments, prioritization of water systems, and potential
          water  system assistance.   These discussions  lead to a bigger effort under a
          separate contract with NMED. In addition, the NM EFC has been working with
          New Mexico state funding agencies on a coordinated funding effort.

          In Texas, the NM EFC has held phone calls and been in meetings with the Texas
          Commission  on Environmental  Quality to share information regarding capacity
          activities in other states.  In addition, the NM EFC also worked with TCEQ on a
          project involving non-compliant small water systems under a separate contract.

          In  Arkansas, the NM EFC has been  discussing the possibility of creating a
          capacity development training for Arkansas Department  of Health (ADH) staff.
          This training will be an interactive program  that will include classroom lecture
          and hands-on activities.

          In Louisiana, the NM  EFC participated in the Louisiana Department of Health
          and Hospitals (DOHH) Water Quality Technology Conference and held meetings
          with the state on capacity development issues.

          In  Oklahoma,  the  NM  EFC  met with  capacity development  staff from the
          Department of Environmental Quality at the capacity development conference to
          discuss capacity issues.

          EFC Network Assistance

          The NM EFC works with the other Centers in the Network on projects, answering
          questions, providing information, or anything else needed.  The NM EFC  also
REGION 6

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 NEW MEXICO INSTITUTE OF MINING AND TECHNOLOGY EFC
                                                                  EFGN
          attends the Environmental Financial Advisory Board (EFAB) meetings twice a
          year as well as the EFC Director's meetings.

   Capacity Development Program Assistance for New Mexico Environment
   Department

   In 2004, the NM EFC  received a contract  from the NM Environment  Department
   (NMED) to assist with revisions to the NM capacity development program. The revisions
   cover three main areas: a) revised capacity assessment procedures, b) new prioritization
   program, and c) training of NMED staff.

   The NM EFC developed a three tiered approach to capacity assessment.  The systems are
   prioritized  into  the  tiers based  on factors  such as:  compliance  history,  customer
   complaints, requests for funding, drought concerns, or other known problems or issues
   with the systems.  The systems with the greatest concerns are placed in Tier 1, those with
   minimal concerns are placed in Tier 2, and systems with no known concerns are placed in
   Tier 3. The assessment process is then geared to the need to have information.  Systems
   in Tier 1 require a significant amount of information, so they  receive a very  in-depth
   assessment process that requires  interviews and multiple days to complete.  Tier 2 is a
   questionnaire that takes  approximately  2 hours to  complete  and Tier 3 is a  short
   questionnaire that takes about 30 minutes over the phone to complete.  The NM EFC will
   be conducting approximately 250  assessments during this contract.

   The  new prioritization process will involve gathering data from  Safe  Drinking  Water
   Information Systems,  the capacity  assessments, and other  sources to determine  which
   systems have a need for funding and where they should be ranked on the priority list.

   The  final component of the project is to train NMED field staff to take over the
   assessment process. The training  will also involve managerial and financial capacity in
   general.

   Strengthening Public Health Protection Through the Multiple Barrier Concept

   In 2004,  the NM EFC  continued its efforts to assist Tribal  water systems in improving
   public health protection.  The NM EFC continued to frame the assistance in terms of
   maximizing the use of each of the barriers - source, treatment,  and distribution.  Water
   system managers and  operators need to make effective use of each of these barriers to
   prevent contamination from entering the system or reaching the customers.
REGION  6

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NEW MEXICO INSTITUTE OF MINING AND TECHNOLOGY EFC
                                                                    -s-
                                                                 EF©N
   One of the measurements of the overall effectiveness of the program is the compliance
   record of the Tribal water systems. The NM EFC and EPA Region 6 developed a graph
   that plots the number of Total Coliform Rule violations by month. The trend line of this
   graph is clearly downward and continues to improve each year.  There continues to be
   spikes in the number of violations in the summer months, but the peaks are decreasing
   each year. The NM EFC plans to provide assistance and training to the water systems to
   continue to reduce the summer peaks.  The graph below shows the compliance trends
   from 2000 through 2004.
            g
                 EPA Region 6 Tribal Public Water System TCR Compliance Trends
                              October 2000 - December 2004
   A summary of the various activities of the NM EFC in assisting Tribal water systems is
   presented below.

   •  Compliance Monitoring and Technical Assistance:  The NM EFC coordinates the
      sampling required under the Safe Drinking Water Act. The NM EFC also assists with
      the development of Consumer Confidence Reports, Total Coliform Rule compliance
      and sampling plans, and operation and maintenance support and troubleshooting.

   •  Managerial and Financial Capacity Building:  The NM EFC assists tribes with
      utility ordinances and by-laws and rate setting and budgeting.
REGION 6

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 NEW MEXICO INSTITUTE OF MINING AND TECHNOLOGY EFC
                                                                  EFGN
   •  Public Education and Outreach: The NM EFC assists with the development of
      educational display boards, brochures, pamphlets or handouts and participates in
      community events, such as environmental, health, and water fairs.

   •  Information Management Activities: The NM EFC gathers information for EPA
      Region 6 regarding system inventories, new system information, populations,  system
      classification, and other necessary information.

   Under these broad headings, the EFC has provided a wide array of assistance including:
   promoting the development of utility boards, setting utility  rates,  developing public
   education campaigns on the need to charge  for water,  assisting with  sampling and
   analysis, sharing information regarding potential funding sources,  providing  training
   classes,  helping with preparation of Consumer Confidence Reports, and many others.  A
   particular focus of this year's program was to reduce the occurrences of "summer hits."
   During  the warmer summer months,  the  number of Total  Coliform  hits  generally
   increases. The EFC is offering training and assistance to try to reduce these occurrences.

   "Beyond Compliance Program" The fact that the compliance situation  has  improved
   dramatically over the past 5 years has provided the opportunity to move  the assistance
   activities to the next level.  The NM EFC  has now  fully implemented  its  "beyond
   compliance" program to encourage tribes to make improvements beyond simply doing
   the minimum to meet compliance.  These efforts are aimed at optimizing water system
   operation. Activities in this area include the following:

   •  Multiple   Barrier   Evaluations  and  Associated   Training:  Multiple  Barrier
      Evaluation training is similar to sanitary survey training, but it is presented  from an
      operator focus,  rather  than a regulatory  focus.  It is intended to present the "big
      picture"  to  operators   and  to help  them  understand  the   reason  why   sanitary
      deficiencies  are a problem.  In  addition to the  training, the NM EFC performs
      Multiple Barrier Evaluations (MBEs) on water systems. These MBEs are voluntary
      and  identify potential health and safety concerns with the water systems. A report is
      presented to the  system, describing the potential concerns along with a  picture and an
      explanation of why it is an issue.

   •  Groundwater    Comprehensive   Performance    Evaluations:   Groundwater
      Comprehensive  Performance Evaluations  (CPEs) provide a snapshot picture of
      whether  or not a water  system  is fully optimized in  all three barriers  (source,
      treatment, distribution) and provides an indication  of what factors are  preventing the
      system from being fully optimized if it is not meeting all of the  optimization goals. In
      the upcoming year, the NM EFC intends to link the MBEs with CPEs for a more
      comprehensive approach.
REGION  6

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NEW MEXICO INSTITUTE OF MINING AND TECHNOLOGY EFC
                                                                  EF©N
       Performance Based Training:  For the past 18 months the NM EFC has been
       working with Process Applications, Inc.  and EPA Region 6 on Performance Based
       Training (PBT).  This training is intended to provide water operators with the skills
       necessary to conduct water system studies, troubleshoot problems, collect and analyze
       water quality data, and communicate more effectively with management. Six Pueblos
       participated in the program.
Participants Presenting Homework   Participants Conducting Field Test    Learning Pump Calibration
   Tribal Operator Certification Program

   In  January 2003,  the  NM  EFC gave its  first  Region  6  Tribal  Water  Operators
   Certification Exam. Since that time, the EFC has been providing Operator Certification
   Exams approximately every quarter (in some cases  additional exams were given to meet
   tribal operator needs.) In the  past year, eleven operators have  received certification and
   one operator has applied for  and received reciprocity.   This program is only open to
   operators of tribal drinking water systems in EPA Region 6.

   In  addition to the Operator Certification Exams, the Tribal Operator Certification
   Program includes three other activities which are described in more detail below.

   Tribal Utility Advisory Committee: As part of the initial development of the Operator
   Certification Program,  the NM  EFC  formed a  Tribal Utility Advisory  Committee
   (TUAC).   Membership was  open to  all Tribes and Pueblos in Region 6.  After the
   completion and approval of  the Operator Certification  Guidelines, the TUAC is now
   focused on review of the training program, modifications to the guidelines, proposals for
   future activities, and the annual review of the program.

   Pathway to Certification  Training:  The NM EFC led a class of 17 water  operators
   through  a  year  long training program to prepare  them to take the  Level 1 operator
   certification test.  The  classes were held approximately every 3 weeks  and included
   lecture, field activities, homework assignments, and  reading assignments.
REGION 6

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 NEW MEXICO INSTITUTE OF MINING AND TECHNOLOGY EFC
                                                                  EFGN
    Classroom Session
Field Activity
Newly Certified "Pathways"
Participant
   Gap Certification Training: The NM EFC provides training  opportunities for Tribal
   water operators to fill voids or needs that are not being met by other training providers.
   The topics for these classes are suggested by Tribal operators through surveys, based on
   responses provided  on evaluation forms  for  other EFC trainings, suggestions of the
   TUAC,  or based on observed needs. During  2004, the EFC held gap trainings on the
   Safe Drinking Water Act Regulations, Disinfection, Sampling, and Total Coliform Rule
   Compliance.

   Resource-Based or Unified Source Water Protection Project

   The  EFC Network completed  its  Resource-Based Unified Source Water Protection
   Project in June of 2004.  As the lead EFC for this project, the NM EFC worked with the
   EFCs in Maryland, North Carolina, Boise  State and New York, to develop resource-
   based or unified source water protection plans  for clusters of communities in 8 different
   states.

   This project involved assistance in  the following:  the development of a source water
   protection group,  the examination  of potential  sources of contamination,  determining
   appropriate  source  water protection  measures  that may  minimize  or  eliminate
   contamination  concerns,  preparing a   unified  source  water  protection  plan,  and
   implementing  the  plan.   The  EFCs  facilitated  stakeholder meetings and provided
   technical information transfer.
   The eight states involved in the EFC project
   include: New York, Maryland, West Virginia,
   North Carolina,  Texas, Colorado, Idaho,  and
   Oregon.  The NM EFC conducted the projects
   in Texas  and Colorado. The Texas  project
   includes water systems around Lake Meredith.
   This lake is operated by the  Canadian River
   Municipal Water Authority  (CRMWA)  and
                                                   Lake Meredith and Boat Marina
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   supplies water to Amarillo and Lubbock and 9 other communities.  The major concerns
   for source water protection on this project include: oil drilling and exploration, ranching,
   recreational uses of the lake, and septic systems around the lake.
   The project in Colorado focused on the  systems
   that pull water out of the Boulder Feeder Canal.
   This open canal supplies water to  the  City  of
   Boulder  and a few smaller towns nearby.  The
   open canal is exposed to runoff from agricultural
   and residential  areas   as  well   as  recreational
   impacts.  There  is  a proposal  to  increase  the
   recreation in this area that in turn would increase
   the potential for  source water impacts. This issue
   was a main focus of the source water protection
   project.
GPS location of potential source of
contamination
   Independent  Analysis  of FCS  Leak  Detection  Technology  for  Albuquerque
   Bernalillo County Water Utility Authority

   The Albuquerque Bernalillo County Water Utility  Authority
   has received a grant from the  Governor's  Innovative Fund to
   investigate a  proactive  leak  detection  technology.   This
   technology is being installed and operated by FCS Services.
   The approach involves installing data loggers (pictured below)
   on top of meters within the water  system.  The data loggers
   listen for leaks in the middle of the night to determine if there
   is a potential leak in the system. If there is a leak, the units  Permaloe Data Collection
   patroller is used to pick up the alarm signals at the various units placed within the system.
   A correlator can then be used to determine the location of the leak within the pipe.

   The intent is to capture information regarding leaks that the system operations staff may
   be unaware of. The theory is that not all leaks will surface; some leaks will remain below
   ground  level  and can leak for a long time before  detection.  With a more proactive
   approach to leak detection, it is hoped that  more leaks can be found and that the
   unaccounted for water losses can be reduced.

   The EFC's role in this project is two fold: 1) to investigate the economics of using the
   FCS technology within the system to improve  overall asset management  and water
   conservation in the system, and 2) to investigate 5 years worth of leak data (FY 00 to FY
   04) to provide a more  complete picture of the current leak situation within the system.
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                                                                  EFGN
   The  first portion of this study is  similar to  work that the EFC  did  for the City of
   Albuquerque when  it was investigating a non-destructive pipe evaluation technology.
   The second portion also builds upon previous work of the EFC when it analyzed 5 years
   worth of leak data and provided a profile of leakage within the City water system.  This
   project should be completed within 2005.

   Pilot Project: Feasibilty Analysis of Water Supply for Small Public Water Systems

   Under  a subcontract with Parsons Infrastructure and Technology Group, Inc., the NM
   EFC participated in  a pilot project to identify and analyze alternatives for small drinking
   water systems that are not in compliance with drinking water regulations. The  particular
   role  the NM EFC  had in this effort was to evaluate the  capacity of three  small
   groundwater  systems in the Wichita Falls  area of Texas.   In addition, the NM EFC
   assisted in the evaluation of the financial condition of the water systems.  This project
   was completed between July and October of 2004.

   Water System Collaboration Pilot Project for New Mexico

   The  NM  EFC  received   a  contract  from  the  NM Department of  Finance  and
   Administration to work with three groups of water systems within the state to determine
   if these systems would agree to any type of collaboration. This collaboration  could
   include water resource planning, drought management, water conservation, managerial
   sharing, sharing of operators,  sharing of water rights or supply or  many other possible
   ideas.  The collaboration was open to whatever the group wanted it to be.  The NM EFC
   teamed up with  Rural  Community Assistance Corporation (RCAC) and New Mexico
   Rural Water  (NMRWA) to complete this project.  In addition, several state  agencies
   formed a management team to assist with direction  for the project, including:  Office of
   State Engineer, Local Government Division, New Mexico Environment Department, and
   New Mexico Finance Authority.

   The areas  chosen for the pilot project included: El  Rito in north central New Mexico,
   Carlsbad area in  southeastern New Mexico, and northern Dona Ana County  in south
   central New Mexico. The El Rito group signed an agreement to work together and is in
   the process of dissolving the separate systems and becoming one entity.  They are also
   working on sharing water rights and supply.  In Carlsbad area, Eddy County decided that
   the project should be expanded to include all water systems in the County and received a
   large grant to conduct a planning study  for the entire County.  In Dona Ana County, the
   systems have decided to work on their wastewater issues first, so the water collaboration
   was put on hold pending the completion of the wastewater project.  This project was
   completed in June 2004.
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NEW MEXICO INSTITUTE OF MINING AND TECHNOLOGY EFC
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   Water System Collaboration Pilot Project for New Mexico

   As  a follow-on to the  pilot project discussed above, the NM EFC received  a  second
   contract to assist an additional 10 clusters of water systems with collaborative  efforts.
   The groups are spread out in New Mexico and range in size from approximately 5 water
   systems to more than 40 water systems.  The issues vary  significantly from group to
   group as well as the reason why the group has an interest in collaboration.  This  project
   involves the same partners  as the Pilot (RCAC and NM RWA) and the same state
   management committee. This is a major new initiative within the state to provide insight
   into potentially  better ways to plan for water supply, reduce water demand, fund water
   system improvements, and manager or operate water systems, particularly smaller water
   systems. This project began in August 2004 and will be completed in June 2005.

   Public Management and Finance Program (PMFP)

   For the past several years, the NM EFC has collaborated with the Syracuse EFC on the
   Public  Management and Finance Program.  This  program uses an approach that works
   very well  with small systems and is one that the  NM EFC believes would benefit NM
   communities. The EFC strongly desires to bring this program to the New Mexico and
   Region 6.  Thus far, the NM EFC's participation in the Syracuse EFC events is intended
   to provide several benefits:  1) demonstrate the  collaborative ability of the individual
   centers, 2) build the skills of the NM EFC to be able to bring this project to NM, and 3)
   share expertise gained in Region 6 with Region 2 and vice versa.   This past year, the NM
   EFC participated in the March PMFP event in  Minnowbrook, New York. The NM EFC
   presented  a workshop  on  asset  management   and  participated in the  community
   simulations. In addition, the Syracuse EFC Director traveled to New Mexico to help
   present the concept of the PMFP program to New Mexico officials.

                              The PMFP  offers hands-on technical  assistance to rural
                              communities  through  the  development  of  teams  of
                              technical assistance providers.  At  the March  2004 PMFP
                              event, the teams were composed of representatives from
                              accomplished nonprofit, academic, government, and  private
                              organizations that have established histories in providing
                              technical  assistance to  rural  communities.     These
                              organizations   were  brought   together  to  provide
                              information,  technical assistance  and  support  to  small
                              communities in need of assistance, particularly in the area
   of water and wastewater infrastructure.
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                                                                EFGN
NEW INITIATIVES FOR 2004

   The new initiatives for the NM EFC are highlighted below.  These initiatives build upon
   the work efforts of the NM EFC for the past several years.

   Advanced Asset Management

   The NM  EFC embarked  on a  new  initiative  to assist with  the  promotion and
   implementation of advanced asset management for  smaller water  systems.  Advanced
   Asset Management  is  included as one of EPA's  key elements in its  approach  to
   addressing the Infrastructure "Gap." The Gap is the amount of money needed to address
   the Nation's infrastructure needs minus the  current available funding.  Advanced Asset
   Management is an  approach designed  to  optimize a  water  or  wastewater system's
   infrastructure management.   It includes strategies  to  establish the optimal point  of
   infrastructure replacement and when to determine whether a system is financially better
   off with rehabilitation or repair.   The development and implementation of Advanced
   Asset Management strategies for water systems will  help reduce overall life cycle costs
   and help decrease the financing gap.

   Much of the information provided thus far is geared  to larger water utilities.  There is a
   need to provide an approach for smaller water systems.  A goal of the NM EFC is to
   develop a strategy for Advanced Asset Management for smaller water systems.

   Arsenic Pilot Project

   The NM EFC will be working with a Tribal water system to test a new technology for
   Arsenic removal.  This  pilot project will be fully funded by the  supplier and will be
   sampled weekly to determine the effectiveness.  This project is anticipated to begin in the
   spring of 2005.

   Public Management Finance Program (PMFP)

   The NM EFC has been working with the Syracuse EFC to try to bring the PMFP concept
   to the State of New Mexico.  The efforts over the past few years have not been successful,
   but the NM EFC has been able to conduct some small PMFP-like events. The NM EFC
   will be working with the Syracuse EFC and the NM Rural Development office to try to
   bring this very important program to the state and the region in 2005.
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NEW MEXICO INSTITUTE OF MINING AND TECHNOLOGY EFC
                                                        EFGN
EFC NETWORK COLLABORATIONS

The NM EFC has collaborated with other EFCs this past year on a variety of projects and
proposals.  Those collaborations are listed below.
Project
Public Management Financing Program
Resource Based Source Water Protection
Rate Setting
Water System Security Proposal
EFCs Included in Collaboration
Syracuse EFC (lead), EFC9, EFC0UNC,
Maine EFC, UNM EFC
UNM EFC (lead), Syracuse EFC,
Maryland, Boise State EFC, and
EFC@UNC
Syracuse EFC, Maryland EFC
NM EFC (lead), Syracuse EFC, Boise
State EFC, EFC0UNC, Louisville EFC,
Maryland EFC, EFC9
CONFERENCES
Name of Conference
Advanced Asset Management
Workshop
Environmental Financial
Advisory Board Meeting
Environmental Finance Center
Network Directors Meeting
Public Management Finance
Program Workshop
IHS Annual Workshop
Tribal Drinking Water
Intensive, EPA Region 9
Unified Source Water
Protection Meeting/Workshop
EPA Capacity Development
Conference
Environmental Financial
Advisory Board Meeting
EFC Network Directors
Meeting
EFAB Affordability
Date and Location
January 28 - 29, 2004
San Antonio, TX
March 9- 10,2004
Washington, D.C.
March 10 -11, 2004
Washington, D.C.
March 1 - 2, 2004
Minnowbrook, NY
March 4, 2004
Durango, CO
May 5-6, 2004
Reno, NV
June 24, 2004
Washington, D.C.
July 20 - 22, 2004
Denver, CO
August 16-17, 2004
San Francisco, CA
August 17, 2004
San Francisco, CA
August 18, 2004
EFC Involvement
Participated in the
Conference
Participated in Board
Meeting
Participated in Meeting
Presented Session at
Workshop
Made Presentation and
Participated in Workshop
Presented Workshop
Participated in
Workshop, Made
Presentation on EFCN
Project
Made Presentation and
Participated in Workshop
Participated in Board
Meeting
Participated in Meeting
Participated in Workshop
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 NEW MEXICO INSTITUTE OF MINING AND TECHNOLOGY EFC
                                                 EFGN
Name of Conference
Workshop
New Mexico Drought Summit
2004
Association of Drinking Water
Administrators Annual
Conference
Council of Infrastructure
Financing Agencies Annual
Conference
2004 New Mexico Data User
Conference
Date and Location
San Francisco, CA
September 27 - 28, 2004
Albuquerque, New Mexico
October 4-6, 2004
Austin, TX
November 8 - 9, 2004
San Diego, CA
November 17,2004
Albuquerque, New Mexico
EFC Involvement

Attended Summit
Made Presentation,
Participated in
Conference
EFC Participated in
Conference
Attended Conference
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CALIFORNIA STATE UNIVERSITY, HAYWARD
                                           ERJN
  2004 Annual Report of the
  Environmental Finance Center Network

  Region 9 - EFC at California State
  University at Hay ward
  The EFC at  California State University focuses on Small
  Business and Green Products

INTRODUCTION
     The Environmental Finance Center located in Region 9 (EFC9) at California
     State University, Hayward is a university-based EFC working for greener
  communities through cleaner business by advancing the environmental industry and
  promoting pollution prevention and source reduction.

  Our mission is three-pronged:
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 CALIFORNIA STATE  UNIVERSITY, HAYWARD
                                                              EFGN
    1.   To encourage business to adopt source reduction and pollution prevention,
    2.   To encourage consumers to choose green business and green business products,
    3.   To help communities promote cleaner business.

    To that end, working with both the private and public  sectors, EFC9 pursues its
    mission through numerous tools including:

       •   Green business development,
       •   Environmental mediation,
       •   Environmental business incubation,
       •   Finance programs & directories,
       •   Charrettes, conferences & workshops,
       •   Research publications and reports, and
       •   Hands-on assistance to small business.

    Throughout the past year EFC9 has  continued to work with both the public and
    private  sectors to promote cleaner business.  After laying  the groundwork for
    several  new initiatives  in 2003, EFC9 has  accomplished  much in 2004  on the
    following projects.

       •   Western States Green Business Program Coordination
       •   Business and Environment in Hawaii
       •   Environmentally Beneficial Behavior in Television
       •   Phoenix Arizona Brickyard Charrette
       •   Region IX Tribal Initiative
       •   Western Regional Pollution Prevention Network Conference Workshops
          and Sessions

ACCOMPLISHMENTS

Western States Green Business Program Coordination

    Overview

    A  Green Business Program (GBP)  recognizes businesses  and  in some cases
    government  agencies  and   non-profit  organizations  that  operate   in  an
    environmentally responsible manner.   It is a voluntary program  in which the GBP
    certifies  applicants  who  comply  with  federal,  state  and  local  environmental
    regulations as well as undertake additional multimedia  measures to  conserve
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CALIFORNIA  STATE UNIVERSITY, HAYWARD
                                                                EF@N
   energy,  water and other resources,  and institutionalize the process  of reducing
   pollution and waste.

   The Bay Area Green Business Program was launched in 1996, and since that time
   six participating counties have certified over 500 businesses.  As the Bay Area GBP
   has grown,  other counties and  states  have taken note, and there  is  now  broad
   interest in implementing Green Business Programs throughout Region IX. In 2002,
   both the states of Hawaii and Arizona launched GBPs and in California, a number
   of counties  are pursuing programs including, San Francisco,  San Mateo,  Santa
   Cruz/Monterey, Sacramento, and San Diego.

   While  an  increase in  Green  Business Programs is highly  desirable,  rapid
   implementation without consistency across all jurisdictions is not.  Simply put, it is
   imperative now that the concept is  spreading, that "Green Business" carries  the
   same standards and meaning throughout the four-state region.  In response to this
   concern,  EPA Region IX  requested  EFC9's assistance in coordinating Green
   Business Program  efforts throughout the  Region to ensure continuity  within
   individual programs. To achieve this goal, starting in 2003, EFC9 was named the
   Western  States Green Business Program Coordinator.  Our role is  to  promote,
   develop  and  institutionalize  multimedia  pollution   prevention  and  resource
   conservation in  Region  9  businesses  while  ensuring  consistent growth and
   continuity for regional  Green Business Programs.

   Briefly, in our role as Western States Green Business Coordinator, EFC9 has helped
   accomplish the following in 2004.

      •  Two  additional county GBPs, Sacramento and  San Francisco, have been
         launched.
      •  EFC9 is working with the Association of Bay Area Governments (ABAG)
         and   State  Senator Alarcon's office  to formally codify California Green
         Business Program standards.
      •  EFC9 worked  with the  City  of Los  Angeles to begin  exploring  the
         possibility of a  Green Business Program.

   More specifically, EFC9 has accomplished the following goals in the past year.

   Promoting and Coordinating Green Business Programs Region-Wide

   EFC9 has provided basic information and presentations on the GBP throughout the
   Region.  EFC9 has developed a standard Powerpoint presentation that promotes the
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   Green  Business  Program concept generally  but also identifies  Bay  Area GBP
   standards as the guideline and baseline from which all new GBPs will be expected
   to develop.   Some of the  counties  and  cities  EFC9  has worked  with  include
   Humboldt County, Ventura County and the City of Los Angeles.

   EFC9 has also maintained and updated our Green Business Recognition Program
   Clearinghouse website, which includes program descriptions and guidance,
   checklists, and links to technical and other resources.

   Assisting New and Existing Green Business Programs

   EFC9  has continued to help new and existing GBPs.   For example, the EFC
   provided guidance  and a full presentation to the  City of Los Angeles,  and helped
   Ventura County better define their guidelines.  As a result, EFC9 gained assurances
   from these three emerging programs in LA, Ventura and Humboldt, that they will
   follow the basic standards set forth by the Bay Area Green Business Program.

   In addition,  EFC9  has  worked with  the Association of  Bay Area  Governments
   (AB AG) and US EPA to better define measurement standards for the GBP.  For the
   future, EFC9 will  continue  to  supply technical assistance to all  GBPs where
   requested, including: assisting with understanding and development of universal
   measurement methods and preparing green purchasing guides for select industries
   participating in the Green Business Program.

   Developing a Regional Approach to Green Business

   As the number of GBPs grows there is a pressing need to coordinate these programs
   so that the Green Business Program  certification will not be diluted.   EFC9 has
   spoken with all program coordinators and  there  is broad agreement  that a
   coordinator's summit should be  held in early  2005 with  a follow-up  summit
   scheduled for late 2005.  In addition, the bulk of EFC9's work in the past year has
   been devoted to educating  State Senator  Richard Alarcon  on  Green Business
   standards so that his office  could develop California Certified Green Business
   Legislation.  Should it pass, this legislation will establish Bay Area GBP standards
   as the  general standards for  all Programs throughout the state.  As the Western
   States GBP coordinator, EFC9 has been working with ABAG (the Bay Area GBP
   Coordinator) to  help the Senator better understand the Program and how it works.
   In 2005, EFC will  continue to work with the Senator and the State  legislature  to
   help ensure that the California Green Business Program is  developed along  the Bay
   Area model.
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CALIFORNIA STATE  UNIVERSITY,  HAYWARD
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   Providing Funding Opportunities for Emerging Programs

   In  2004,  EFC9  worked  with  two  emerging programs:  San  Francisco  and
   Sacramento. Each of these new GBPs agreed to adopt Bay Area Green Business
   Program standards and to work with other GBP  coordinators throughout the State
   and Region to ensure continuity and harmony.

   •   San Francisco.  The San Francisco Green  Business Program (SFGBP) was
       launched in early January, 2004  by a network of city and county agencies
       including the Department of Public Health, the Department of the Environment,
       and the Public Utilities  Commission.   The SFGBP  is housed  in the  San
       Francisco  Department  of Public  Health.  The SFGBP  plans to offer GBP
       services to a  wide  range of industries including auto repair, food service,
       graphic design, and dry cleaning.  The SFGBP has 11 companies that have
       submitted  applications for certification including the San Francisco Chronicle,
       New College of San Francisco, and Jardinaire, one of the City's top  French
       restaurants.  Other companies that have expressed interest include Lucas Films,
       KQED and the Blue and Gold Fleet.

   •   Sacramento.  Sacramento also launched their program in early 2004 and they
       are  sponsored  by   the   Sacramento  County  Department  of  Economic
       Development  and  the  Business  Environmental Resource  Center (BERC).
       BERC was established in 1993 as a one-stop,  non- regulatory Permit Assistance
       Center to  help Sacramento County Businesses understand and comply with
       federal, state, and local environmental regulations. The Sacramento Area Green
       Business Program has recently announced the certification of its first two Green
       Businesses: Sacramento County's General  Services Fleet Services Florin Garage
       and Marconi Garage.

Business and Environment in Hawaii

   EFC9 has been working with two agencies  in  Hawaii to assist them with their
   Green Business efforts, the  Hawaii Green Business Program and the Department of
   Business, Economic Development, & Tourism. Hawaii's primary focus has been on
   hotels with an emphasis on waste reduction and water conservation. In early 2003,
   the Green  Business Program and the  Department of Economic Development
   approached EFC9  about developing a workshop  that would focus on business and
   the environment.  After several conference calls  and meetings in San Diego, Lake
   Tahoe and Hawaii a plan was developed for a number of workshops to be held on
   Oahu and Maui 2004. The workshops included:
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      •   Green Janitorial For Hotels,
      •   Integrated Pest Management for Hotels,
      •   Workshop on E-Waste.

   Oahu, May 2004
   In May, 2004 EFC9 gave a workshop on Green Janitorial Approaches for Hotels at
   the  Sheraton  Waikiki  that focused on green stewardship, the hazards of various
   cleaning chemicals and  possible alternatives.  Attendees included various hotel
   representatives  including Sheraton,  Hyatt,  Hilton,  Marriott and  other  smaller
   independent hotels.

   Maui, June 2004
   In June 2004, EFC9 gave a workshop on Integrated Pest Management for Hotels at
   the Grand Wailea Hotel  on Maui. Attendees included hotel representatives from
   Marriott, Fairmont, Ritz Carlton,  Grand Wailea, Kaanapali Beach Hotel, Hyatt,
   Maui  Kai, and Kaanapali Alii as well as Hawaiian Electric, Department of Health,
   Chamber of Commere and Hawaii Recycling Group.

   While on Maui, EFC9  also gave a workshop  on Electronic Waste  for county
   employees.   There were over 22 attendees including representatives from  City
   Recycling, the Maui Department of Health, Maui Department of Environment, the
   Marine Corps, Island Recycling, Enviroservices and Lenox Metals.  The E-Waste
   presentation included the following subject areas:

      •   The problem of E-waste,
      •   The toxicity and  what chemicals/metals are in your average TV/computer
          etc.,
      •   Associated health/environmental problems with these toxins,
      •   What various states are doing with E-waste,
      •   Some  case studies (legislation and recycling programs),
      •   Why it makes sense to start confronting the problem now, and
      •   Electronic products that have a better environmental record.

   Oahu, October 2004
   In October, EFC9 was invited to return to Oahu to give a workshop on Electronic
   Waste at the  annual Hawaiian Electric Company Conference. Attendees included
   numerous  small business  representatives  including recyclers  and  electronics
   retailers.
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Environmentally Beneficial Behavior in Television

   Overview

   In 2003, EFC9 proposed to adopt the private sector concept of "product placement"
   to place environmentally beneficial behavior (EBB) in television shows.  Possible
   examples included having actors bring cloth bags to the grocery store, recycle soda
   cans, use worm bins and consider how to properly dispose of a computer monitor
   and other electronic waste accumulating in their closets.

   In consultation with  EPA,  EFC9  agreed to gather and  evaluate information
   regarding the placement of EBB in television shows and to complete the following
   tasks:

   •  Conduct research through focus groups to determine which EBB's will be the
      project's focus;
   •  Identify target markets,  including specific groups within  such markets,  to
      determine which groups  will be most receptive to which messages and most
      likely to change their behaviors;
   •  Identify target shows, television  stations,  and/or studios  receptive to the EBB
      placement concept and which would most effectively reach the target markets.

   In addition, EFC9, in consultation  with EPA, agreed to create a list of at least 8-10
   'best' potential EBB messages.   EFC9  would also develop methods to measure
   success of EBB message placement, including tracking numbers of viewers for each
   show.  As a result, EFC9 was responsible  for the following actions and deliverables.

      •   Identifying  environmentally  beneficial  behaviors   and   their  relative
          importance.
      •   Identifying target markets for each behavior.
      •   Identifying size of problem behavior is addressing.
      •   Identifying shows, studios, and/or television stations  receptive to the EBB
          placement concept and which would most  effectively reach the target
          markets, with contacts for each.

   In 2004, EFC9 completed the following EBB tasks.

   Conduct research through focus groups
   In consultation with EPA Region 9 and in response to significant time constraints,
   EFC9 held three meetings with the following groups to identify potential EBBs.
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                                                                 •*•
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   •  Focus Group I:  EBB brainstorming session with US EPA Region IX, February
      2004
   •  Meeting at UCLA with Motion Picture Industry project staff, US EPA and the
      California Integrated Waste Management Board (CIWMB).
   •  Focus Group II: EBB brainstorming session with CIWMB, March 2004

   Identify environmentally beneficial  behaviors  and their  relative importance
   EFC9 developed over 100 environmentally beneficial behaviors (EBBs) that could
   be appropriate to numerous types of productions  currently available on cable and
   network TV.  In cooperation with US EPA, four to five EBBs (approximately 40)
   were chosen for ten TV  show variations.  After extensive review,  one-pagers for
   each show type were developed  and  approved.  Each one-pager  included those
   EBBs that  could  make  the  greatest environmental  impact  according to EPA
   reviewers.

   Identify target markets
   Target markets,  i.e., specific types of TV shows or sets within shows, were chosen
   that were appropriate to  selected EBBs.  The EBBs and their markets were then
   paired in simple one-pagers that could be presented to key production personnel
   responsible for props, product placement and scripts.  One-pagers were developed
   for the  following  shows and  sets:  Garden Shows, Cooking   Shows,  Home
   Improvement Shows, and scenes set in gardens, homes, hospitals, offices, outside
   the home, restaurants and schools.  The completed one-pagers are available on our
   website  atwww.greenstart.org/efc9.

   Identifying size of problem behavior is addressing
   As initially  defined, this task imagined that five to  eight behaviors would be
   identified for all productions.  However, as the scope changed, approximately 40
   EBBs were developed and the one-pagers were  prepared for ten  different show
   types, it was determined that this task would be best completed once  the EBBs were
   placed within shows and the potential impact could be measured. This task will be
   completed once  EBBs have been placed and impact can be assessed.

   Identify shows, studios, and/or television stations and contacts
   EFC9 developed an extensive list of shows and contacts that will provide support
   for the project as we move into the next phases.
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Findings, Recommendations and Suggestions for Further Actions

   This has been an extremely fluid project as it has ventured into unknown territory
   since the  day  it started.   While developing the EBBs was  a relatively simple
   exercise it quickly became clear that television  is an extremely diverse industry
   comprised of small, medium and large sized companies, each striving to develop
   unique products that can capture various (or all) segments of the viewing audience.
   As such, it became quickly obvious that our approach needed to be equally multi-
   dimensional, and so, rather than developing a few  examples of desired behaviors for
   all shows, we determined that we should develop a small number of unique EBBs
   for several types of shows and sets within shows.   Thus the one-pagers  were
   developed.

   In addition, while we agreed that there are certain types of shows that we would like
   to attract (especially those with  high ratings), we were forced to admit that  these
   shows were more than likely  to choose us and that we had to  offer  a variety of
   options given the diversity of productions on TV. In short, we had to be ready for
   whomever came knocking at our door.  As a result,  we determined that to have the
   biggest bang for our small bucks, we should start  the project by contacting smaller,
   cable-based reality shows,  specifically those focused on  gardening/landscaping,
   home improvement and cooking. EFC9 and EPA  agreed that since viewers tune
   into  those productions not only  to be entertained but to be instructed, our EBBs
   could have a greater impact.

   Having identified  the Executive  Producer  as  the key  contact, EFC9 began
   contacting  shows and  producers.   To date  EFC9 has  been in contact with  4
   productions (two on HGTV, one on TLC, and one is still a pilot) all of them have
   responded favorably.  In addition, EFC9 has begun to promote the project through
   various venues  including the National  Association  of Television   Program
   Executives conference and the UCLA Forum on  Sustainability in  the  Motion
   Picture Industry as described below.

   National Association  of Television Program Executives (NATPE).  In addition
   to our work with the productions above, EFC9 attended the NATPE Conference in
   Las Vegas. The NATPE conference hosted producers from around the world under
   one  roof to promote and  sell their productions.  Through NATPE  we  met and
   secured the services of a product placement professional who has agreed to provide
   expertise and services to the project free of charge.

   Forum on Sustainability in the Motion Picture Industry.   EFC9 attended and
   spoke  at the Forum on Sustainability in the Motion Picture  Industry hosted by
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   UCLA and the California Integrated Waste Management Board (CIWMB). The
   objective of this Forum was to showcase current "green" practices throughout the
   industry in order to educate others and help them in reducing the  environmental
   footprint of the industry within Southern California.  Other speakers at the event
   included representatives  from  Disney,  Warner  Brothers  and  Fox,  as  well
   professionals in the industry who worked on films such as Dantes Peak, The Lord
   of the Rings and the Matrix. Ed Begley Jr. was the keynote speaker for the event.

   As a result of our efforts EFC9 has offered the following recommendations and
   suggestions for further actions.

   Continue Contacting and Working with Identified Shows and Studios.  EFC9
   has had success contacting every show it has initially identified and every producer
   has been interested in our project.  As a result, we have decided to become more
   strategic about what and how many shows we contact because each production has
   its own set of requests in response to our program.  While the one-pager is a good
   format to open doors we have found that the cable shows - which can be defined as
   small  to medium sized businesses - are like all companies in that they are pressed
   for time and money.  They would like  to work with  us but they will need the
   information about products and  behaviors at their fingertips and  expect  us to
   provide them with that information.

   Develop Materials for EBB Placement. Each show we have contacted has asked
   for additional  information.  One show  is sponsored  by Home Depot and  has
   requested a list of environmentally beneficial items that can be purchased from that
   store and that the show may use in the future.  Another show has requested a list of
   certified green landscapers  and a third requested a  general list  of  products
   specifically suited to its show. In short, it is likely that small shows sponsored by
   large homeware companies (Home Depot, Target, WalMart, Kmart etc) will want
   product recommendations that can be purchased from their sponsors.  At present
   these lists need to be developed and will have to be updated regularly.

   Develop a Website Proposal for Networks and Shows. As a way to highlight
   products that are showcased on  individual programs, an  effort should be worked
   into any future proposal to work with network  and program websites.  Website
   coordinators would be asked to incorporate a purchasing opportunity into their sites
   that would allow viewers to learn about and purchase the products that have been
   placed on their favorite shows. Viewers could click on an ACT Environmentally
   icon that would automatically take them to a site that would highlight the products
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   and explain why they are important to the environment.  The viewer would then be
   able to click on the product for purchase from the sponsor, product or show website.

   Environmental  Props  Warehouse.   Set decorators,  directors  and  designers
   frequently have little time to identify, purchase and/or collect items for a set. Often
   having as little as two days to develop a set that must accurately portray a real life
   situation (e.g., travel agency, restaurant, and florist), they do not have the time or
   knowledge to  incorporate environmental products into their sets. As a  result, we
   propose  exploring the  possibility of  an  Environmental  Props  Warehouse
   strategically centered in Los Angeles. As an alternative Environmental Props room,
   available existing prop warehouses throughout LA may be more useful.

   Industry Roundtable. As we learn more about this industry, we learn more about
   the infinite complications that are involved in the making of a TV show.   Each idea
   comes along as  a result of further immersion into the industry but we still have
   much to learn.  In response, we suggest a small industry roundtable that would
   involve appropriate industry representatives  (production crew,  set decorators,
   product placement specialists, etc) to help advise us on our efforts and  suggest other
   ways  to green the industry.  This roundtable proposal may be addressed in the
   proposed April Roundtable at the EPA office in Los Angeles.

   Greening the  Industry White Paper.  This would be a short proposal to executive
   producers to  help  seek a pilot program in  which  we would  act  as "green
   consultants" for  a TV show.  As consultants we would help advise  the show on
   ways to become  greener and save money,  and we would have a pilot program from
   which to beta test our efforts and learn more about the industry in general.

   Green Production Alternatives Binder.  Production designers, art  directors and
   other industry  representatives must accurately portray their shows  in settings that
   range from present day New York City to ancient Rome and everything in between
   and yet to be  imagined.  As a result, they have libraries through their  guilds and
   associations that they may consult for accuracy and ideas. We propose to develop a
   Green  Production Alternatives Binder that would be  prominently placed and
   available to decision-makers at all association libraries.

   Develop a Simple Campaign.  While the ideal will be to find  producers who are
   interested in working on all aspects of our project, we should also be able to provide
   a simple approach for shows that are interested but do not have the time or budget
   (at least for the  moment) to fully implement ACT Environmentally.  We propose
   developing a "Five Things" campaign  that would target the five  best and worst
   things a TV show could adopt.
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Region 9 Tribal Initiative

   This new initiative was an effort to explore ways in which EFC9 could work with
   Region IX tribes to assist them with their environmental problems.  In partnership
   with  the Western  Regional Pollution Prevention Network  (WRPPN),  EFC9
   developed  an action plan  to  address  key issues  facing  regional tribes after
   participating in several conference sessions and discussions on the topics. Two of
   our major efforts included the WRPPN Conference and the  12th Annual Region 9
   Tribal EPA Conference.

   WRPPN 2004 Conference
   EFC9  staff participated in  the  Pollution Prevention  (P2)  and Tribes  Training
   Session at the WRPPN 2004 Conference. At this session speakers presented an
   overview on  starting a P2 program,  described activities of the Native American
   Environmental Protection Coalition, discussed how the Oneida Tribe in Wisconsin
   motivates tribal members to recycle rather than dump (by focusing on health issues
   and the impact of this behavior  on family members and  future generations), and
   learned about how the Foxwoods Casino in Connecticut, the largest casino in the
   world—a 2,000 acre  facility  including  shopping  malls,  theatres,  hotels  and
   gambling facilities  operated by an 800 member tribe—saves money through its
   recycling, reuse and EPP programs.

   This session provided EFC9  an excellent networking opportunity and one at which
   we were able to determine  the types of sessions  that would best serve tribal
   members. Specifically EFC9 learned  that workshops focused on specific industries
   were more useful than one  dedicated solely to tribes.

   12th Annual Region 9 Tribal EPA Conference
   EFC9 assisted WRPPN staff in a training session targeted at pollution  prevention
   for tribes at  the 12th Annual Region 9 Tribal EPA Conference.  Based on this
   experience, EFC9 identified the need  for holding listening  sessions at which EFC9
   and WRPPN  staff would assist participants in identifying P2 issues of concern and
   help evaluate alternative responses.

   EFC9 Action Plan
   As a result of our efforts in 2004,  EFC9 determined that the best approach to
   working  with tribes in Region IX  was to bring pollution  prevention training
   sessions  to conferences and other meetings where tribal attendance is already high.
   To that end, EFC9 is exploring the possibility  of providing P2 training sessions on
   casinos, restaurants and auto body shops at the following 2005 venues.
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   •   Native American Environmental Protection Coalition meeting
   •   California Indian Gaming Association Conference
   •   BIA National Conference
   •   Regional Environmental Mangers Meeting
   •   Regional Tribal Operations Committee (RTOC) Meeting
   •   Regional Pow Wows
   •   2005 13th Annual Region 9 Tribal EPA Conference

Phoenix Brickyard  Charrette

   In 2003, USEPA and Maricopa County asked the Environmental Finance Center,
   Region 9 (EFC9) to organize a charrette to address problems between the  South
   Phoenix Community and the Phoenix Brick Yard (PBY).  The Phoenix Brick Yard
   sits  in the  middle of a  low-income neighborhood in which  residents have
   complained  of odor and  respiratory  distress.   Phoenix Brick Yard's  primary
   emissions of concern  are  hydrogen fluoride (HF) and hydrogen  chloride (HC1).
   Clay minerals naturally contain fluoride and chloride.  HF and HC1 are formed and
   emitted during the brick firing process. Generally, HF and HC1 gas can irritate the
   skin, eyes and respiratory tract at elevated levels; neither compound is considered a
   carcinogen. The community believes that the Phoenix Brick Yard may be a factor in
   health issues experienced by nearby neighbors.

   In May, 2004, concerned stakeholders met in a Phoenix Arizona charrette to discuss
   financial and other solutions to HC1, HF and particulate emissions from the Phoenix
   Brickyard.  This charrette was facilitated by EFC9. The charrette and other follow-
   up meetings were attended by representatives from the National  Brick Research
   Center, Phoenix Brick Yard, US EPA, Bethune high school, Arizona Department of
   Health Services, Maricopa County, City of Phoenix, and community organizations
   and concerned citizens.

   In general, the project served to provide the community with a better understanding
   of air quality issues in  their neighborhood and how they might be addressed.   In
   addition, a number  of  parties reached  agreement on how they would proceed in
   order to satisfy neighborhood concerns.   More  specifically,  Phoenix Brickyard
   agreed to carry out the  following measures to curb emissions and odors emanating
   from their site.

   •   Provide a Mass Balance Test and results to determine what alternatives may be
       available to reduce emissions.
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    •   Explore the possibility of introducing deodorizing agents to reduce odors.
    •   Determine other ways to control dust from brick mounds and truck traffic.

    In  addition,   Supervisor Wilcox  (Maricopa  County)  agreed  to  draw  up  a
    neighborhood compact to help  support the results  of the project and to explore
    opportunities to help the Brick Yard attract new business.  Maricopa County
    committed to developing an  odor survey  and  US  EPA  arranged  to  provide
    information on diesel mitigation and associated funding sources

    Most importantly, financial experts brought to the table determined that the Phoenix
    Brick Yard could incorporate a heat recovery system that would take advantage of
    heat loss during the brick firing process.   They proposed that lost heat could be
    harnessed through a small  cogeneration power plant and then sold  to the local
    power authority.   Energy profits could then be  used to purchase and maintain
    expensive emission control technologies that would reduce emissions by 90 percent.
    As of the January 2005, negotiations were still underway.

Western Regional Pollution Prevention Network Conference
(WRPPN) Workshop and Sessions

    As a key  steering committee member for  the WRPPN, EFC9  is  significantly
    involved in the planning for the WRPPN  Conference held annually in California.
    In 2004, EFC9 planned and  facilitated the  following workshop and sessions, which
    were among the highest attended events at the conference.

    Nail & Hair Salons
    This session addressed the toxics in nail and hair products, exposure paths and their
    impacts, what's happening in Europe,  policy efforts  in California and the U.S.  and
    recent projects undertaken in Texas and Massachusetts to try and improve worker
    health & safety and cosmetology school and health agent training.  Because of the
    level of interest the session was expanded by 30 minutes and five speakers were
    invited to participate on the panel. Those speakers included:

    •   Eileen Gunn, Community Program Coordinator with the Toxics Use Reduction
       Institute (TURI) in Massachusetts,
    •   Sonya Lunder, Environmental Analyst, Environmental Working Group,
    •   Julia Quint, Research Scientist  and Chief of the Hazard Evaluation System &
       Information Service (HESIS), an occupational health program in the California
       Department of Health Services,
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   •  Lisa Pham, US EPA Region  6, Environmental Engineer, Nail Salon Project
      Coordinator, and
   •  Son Hong, Vice-President, Vietnamese American Community Health Network.

   As  a result of this  session a National Salon Network was developed. It  now
   numbers over 50 members and maintains regular conference calls.

   Emerging Pollutants

   The  session on Emerging  Pollutants  covered a wide  variety of pollutants and
   potential pollutants.

   The first speakers, Dr. Katy Wolf, Executive Director of the Institute for Research
   and Technical Assistance (IRTA) and  Julia Quint, Hazard Evaluation System  &
   Information Service (HESIS) focused  on new chemicals that are being marketed
   aggressively and are used extensively  in applications where users are exposed  to
   their hazards.  Some of these chemicals are known to be hazardous but there are no
   worker or environmental regulations that control  their use.  Others have  not been
   tested for chronic toxicity but have structures that make it likely that they are  high
   in toxicity.  The session focused on five of these emerging chemicals including:

   •  n-propyl bromide,
   •  1,2-trans dichloroethylene,
   •  n-methyl pyrollidone,
   •  parachlorobenzotrifluoride, and
   •  D5.

   The next speaker, Michael  Gill with EPA's  Office of Research and Development
   Hazardous  Waste  Technical  Liaison, provided  a  primer  on the  topic  of
   nanotechnology, as well  as  a summary  of some possible health  effects  and
   regulatory concerns.  Nanotechnology  is not really a single  "technology", but a
   cross between  chemistry, biology and materials science that  deals with particles less
   than 100 nanometers in size. At this small size, a user can manipulate the structures
   and cause novel properties  and functions.  Presently, there  are no US government
   regulations governing  nanomaterials  or  nanotechnology.    But because of the
   increased numbers of nanotech applications being developed by industry,  potential
   associated health effects are being investigated.

   Finally, a speaker from the USGS National Toxic Inventory Project shared the
   results of their research.  Since 1998,  the USGS has been developing  analytical
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   capabilities  to  measure  organic  wastewater  contaminants,  including  drugs,
   antibiotics,  lotions,   detergents,  antioxidants,   plastics,  Polycyclic  Aromatic
   Hydrocarbons (PAHs),  fragrances, pesticides, fumigants,  disinfectants and  fire
   retardants, in  a  variety  of environmental  matrices.   USGS' objectives were to
   develop sensitive and specific methods to measure trace organics at low levels and
   to evaluate environmental occurrence in 'susceptible' waters, including downstream
   of wastewater treatment plans,  confined animal  feeding operations  and a small
   number of undeveloped or natural settings.

   Green Business  Program Challenges & Solutions
   In  keeping  with  past  years  and  as the Western Regional  Green  Business
   Coordinator,  EFC9 hosted  a workshop on the  Green Business Program.   This
   workshop focused  on  the most  practical steps for municipalities to take, such as
   buying recycled-content  paper, what to specify in print jobs, switching to less toxic
   janitorial products, greening yards  & fleets and incorporating  Integrated  Pest
   Management (IPM) into parks  maintenance.  The framework for this workshop
   included an overview of how the precautionary principal can be applied at the very
   local level.

MAJOR NEW INITIATIVES FOR 2005

   Green Business  Program Coordinator's Summits
   EFC9  will  sponsor, plan  and  facilitate  two  Green  Business Program  (GBP)
   Coordinator  Summits to establish guidelines and a hierarchy for operating  a
   statewide program  in 2005.  The coordinator's summits will  establish a protocol by
   which coordinators will  regularly work to determine what defines a valid program
   and how all California GBPs should harmonize their efforts. More specifically, the
   summits will address the following issues from a statewide perspective.

   •   Overall Statewide Coordination Protocol and Structure
   •   Recognizing  and Working With New Green Business Programs
   •   Statewide Funding
   •   Coordinating Checklists
   •   Developing Checklists
   •   Developing Statewide Green Business Criteria
   •   Developing Statewide Measurement Standards
   •   California Logo
   •   Partner Agencies
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   !ACT Environmentally!
   Once known as Environmentally Beneficial Behavior in Television, this project has
   now been renamed ACT Environmentally.  As we move forward with this project
   and learn from the experts in the industry, we are beginning to map out the most
   appropriate  and  potentially  successful  approach  to  behavioral   and  product
   placement in TV.  Based on experience so far, and EPA and other stakeholder input,
   the following describes what will come next for ACT Environmentally. We plan to
   pursue a three-part methodology  that would include  1) guidance  on placement
   opportunities for shows and studios, 2) a prop system to readily supply productions
   with environmental  products, and  3) website  support to  highlight the  ACT
   Environmentally campaign.

   •  Guidance. EFC9 will work directly with TV programs to place environmental
      products and  behaviors in participating  shows.  Depending on the type of
      placement we are requesting, we will likely be working with the set decorators,
      writers or executive producers.

   •  Props. EFC9 will have to develop a system whereby environmental props  are
      readily available  to participating  shows.   This may involve  a  physical prop
      warehouse in LA,   environmental  prop  rooms  attached to  studio  prop
      warehouses or a virtual prop warehouse with a 24-48 hour turnaround.

   •  Websites.  Once the TV show has committed to using environmental products,
      and the prop has  been provided, we need  a way to showcase what the viewer
      sees and how she can purchase the product.  EFC9 will work  with program
      and/or network website coordinators  to help  them incorporate  a purchasing
      opportunity into their sites that would allow viewers to learn about and purchase
      the products that have been placed on their favorite shows.

   P2 and Salons
   EFC9  expects to  work with salons  and  cosmetology schools in  California to
   determine the potential  health  and  environmental impacts of products  used in
   salons. The focus of this pilot will be on common toxic salon products and potential
   alternatives.  The pilot would collect information on current products, practices,
   costs and exposures and will informally assess owners, employees and customer's
   willingness to choose a healthier alternative.   This pilot will characterize  the
   chemicals and other ingredients found in common salon chemicals and assess  the
   potential  for health and/or environmental impacts.  In addition, EFC9 will identify
   available  alternatives to key  toxic chemicals  and  assess  the   barriers  and
   opportunities within salons to adopt these alternatives.  In conclusion, the project
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   will organize a  stakeholder roundtable to disseminate information and determine
   next steps.

EFC NETWORK COLLABORATIONS

Public Management and Finance Program (PMFP)     EFC Region II
   March 2004, Minnowbrook, NY - Over the years, EFC9 has worked with EFC2 to
   help develop and launch the Public Management and Finance Program  (PMFP).
   The PMFP is designed to coordinate the delivery of technical assistance to rural
   communities for the purpose of integrated  problem-solving. The PMFP focuses on a
   variety of areas,  including the range of services accessible to communities, the gaps
   in the delivery of technical assistance, and the disconnect between public policies
   and the financial and management capacity  of these  communities.  EFC9 will
   continue to work with EFC2 in the  coming year and we hope to establish our own
   PMFP program in the future.

COMMITTEES

Bay Area Pollution Prevention Group (BAPPG)
   EFC9 regularly  attended meetings  of the Bay  Area Pollution Prevention  Group
   (BAPPG). BAPPG is a voluntary association of all Bay Area municipal wastewater
   treatment plants that discharge into the San Francisco Bay.

Bay Area Hazardous Waste Reduction Committee
   EFC9 is a member of the Bay Area Hazardous  Waste Reduction Committee and is a
   regular participant in committee meetings and events.

Western Regional Pollution Prevention Steering Committee
   EFC9 is a member of the WRPPN  steering committee, which helps determine the
   scope of the annual conference.  In  addition, WRPPN will use EFC9's Brominated
   Flame Retardant Clearinghouse and Green Business Clearinghouse pages on our
   website as  the  national  hubs  for those  topics under  the National  Pollution
   Prevention Roundtable.
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               BOISE
               STATE
               UNIVERSITY
  2004 Annual Report of the
  Environmental Finance Center Network

  Region 10 - EFC at Boise State University

  A key focus of the EFC at Boise State University is utility
  rate setting and capital improvement planning for
  environmental facilities
INTRODUCTION

     The Environmental Finance Center at Boise State University was created in 1995
     and first received funding in the fall of 1996. The EFC at BSU is contained
  within the Department of Public Policy and Administration of the College of Social
  Science and Public Affairs. The Boise State EFC serves the Region 10 communities
  of the Pacific Northwest and the Intermountain states of Alaska, Idaho, Oregon and
  Washington. Because of its specialized services and tools, the Boise State EFC has
  also served other communities throughout the country. This report outlines the EFC's
  accomplishments in 2004, new  initiatives for 2005, network collaborations,
  presentations and results.
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   The primary focus of the EFC at Boise State University is the development of broadly
   applicable,  practical  tools  that  improve  the  efficiency  and effectiveness  of
   environmental systems in meeting the challenges of protecting the environment and
   public health. The EFC creates computer-based techniques and programs that provide
   important information for decision makers to use in financing environmental systems.

   Leveraging Resources   As is  customary for the network  of university-based
   Environmental  Finance  Centers,  the EFC  at Boise State  University effectively
   supplements its core funding with funding from other sources. As a measure  of
   activity, this leveraging was even more significant, with the EFC attracting eighteen
   other grants and contracts. This leveraging of resources demonstrates the real value of
   the Environmental Finance Center Network to Region 10 and the EPA.

ACCOMPLISHMENTS

   Development of Innovative Tools

   The major theme  for the EFC this year  has been  the development of software
   financing tools. For the past three years the EFC found that fresh approaches are
   needed to working with the regulated community, and  to that  end, developed new
   software tools to respond to the needs of water and wastewater systems.  As well,
   these new tools are available to stakeholders involved in addressing non-point source
   water pollution challenges. The EFC's goal is to reach communities nationally with
   these productivity enhancing tools. The following lists our new software tools made
   available this year to the regulated community throughout the country:

   •   Rate  Checkup  -  a full-cost  pricing  model  for water  systems  (the EFC  is
       developing the wastewater  version of this model for 2005-6).  Rate  Checkup
       integrates the  EFC's asset  refinancing  model —  CAPFinance™ in developing
       correct user charges for water systems.  Although not a  Region 10 state, in 2004
       the Kansas Drinking Water Program selected the Rate Checkup and CAPFinance
       tools for statewide distribution through their capacity  development program.

   •   System Development Fee Model - under development in 2004, this new tool will
       be delivered to the  University of Illinois' Midwest Technical Assistance Center in
       Region 5 in 2005.  The model will help water systems calculate the impact of new
       development and to design impact fees to recover those costs. This new model is
       also based on CAPFinance™.
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   •  Electronic Sanitary Survey (Iowa Model) - working with EPA's Drinking Water
      Academy over the past two years the EFC has developed a sanitary survey data
      collection system  that is operated on  PDAs (Personal Digital Assistants  or
      handheld Windows-based computers).  In 2004 Iowa contracted with the Center
      to produce a variation of this approach that will allow information to be shared
      across internet networks, linking the  central and  regional offices  of the  state
      drinking water program.

   •  Plan2Fund  for Idaho -  Also  in 2004, the  State  of  Idaho'  Department  of
      Environmental Quality  asked the EFC to  modify  Plan2Fund -  a workplan
      financing and implementation model - for application to  the Clean Water Act
      Section 319 financing program.  This work should be completed in 2005.

   •  One Plan BMP Financing Model - the EFC is working with the Natural Resource
      Conservation  Service, Idaho  Soil  Conservation  Commission and  others  to
      enhance the Idaho OnePlan model with an environmental finance sub-routine.  In
      2004 the EFC began work  in building a  new sub-routine that would identify
      opportunities for watershed stakeholders to purchase additional BMPs to optimize
      water quality on privately-owned  land.  This  model is a direct response (and the
      outcome of a charrette) to the conflicts between water users  and environmentalists
      in the Klamath Basin.

   •  Arsenic Exemption Tool  - In 2004 the EFC began work to develop a model to
      help regulatory agencies quickly determine the financial capacity of communities
      seeking exemptions from the implementation deadline for the arsenic rule.  This
      software tool is designed to assist staff unfamiliar with  financial analysis by
      automatically generating  a financial capacity report.  We expect that this model
      (available in 2005) will be useful for all rule exemption scenarios in the future.

   •  Capacity Tracker - this software tool provides an annual "report card" on a utility
      system's financial capacity and provides trend analysis as well.  As demonstrated
      at the 2004 CIFA Conference in San  Diego, the states  and EPA  could use
      Capacity Tracker to  measure the effectiveness  of SRF funding and/or other
      capacity development programs.

   Macro-environmental Finance Focus on Watershed Financing Activities

   The 2002 Annual Report of the Boise State University EFC introduced the division of
   activities  between  the  focus  areas  of "macro-environmental"  and  "micro-
   environmental"  finance.  This division is useful in separating our traditional utility-
   based financing work from the emerging challenges of financing non-point pollution
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   reduction at  the  watershed level.  The first section  of the  2004 Annual report
   highlights our activities in the watershed financing or "macro-environmental" arena.

   Watershed Funding Workshops

   The EFC presented 10 watershed funding workshops throughout Region 10 in 2004.
   Watershed restoration is important throughout  the  region.  Watershed  planning
   activities are  increasing each year in response to the need to protect these valuable
   resources.  In order  for  watershed  planning and implementation  to  be effective,
   identification  and  acquisition  of  resources  is necessary. Previous  workshops
   conducted by the Environmental Finance Center have helped to promote stewardship
   by  improving stakeholders' capacity  to  develop long-term funding  strategies for
   protection and restoration activities.  However, different levels of sophistication  exist
   between watershed groups. This difference in sophistication level creates challenges
   for our workshops to insure all participants receive  valuable tools for their funding
   problems.  In response to this need,  the EFC tailored their workshops to those levels
   that best addressed these different needs.

   Intermediate Workshops

   Intermediate workshops focused on watershed stakeholders who are familiar with the
   watershed  process but lack the knowledge and skills needed  to weave together a
   funding strategy.  The workshop covered principles of developing a finance strategy
   and identify the funding tools and  techniques used in combination to support the
   watershed vision.  Using a diverse mix of public and private funding (from federal,
   state and local sources), in combination with alternative funding techniques, can build
   a broad and sustainable base of support for watershed protection. In addition, these
   workshops will discuss the importance of networking and building relationships in
   order  to maximize  knowledge and  opportunities  for meeting  watershed goals.
   Utilizing existing resources such as  universities and  schools to assist with education
   and outreach grant writing  and data  collection is just one example  of leveraging
   resources.

   The EFC presented four intermediate workshops in the Region during 2004.  The
   EFC worked  closely with EPA Region 10, the National  Oceanic and Atmospheric
   Administration  (NOAA), and  other  agencies to target attendees and coordinate the
   timing and location of workshops to maximize participation. Intermediate workshops
   were held in  Pocatello, Idaho;  Coeur d'Alene, Idaho; Newport, Oregon; and Moses
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   Lake, Washington.
   watershed.
Each  workshop  was  tailored  to  the  specific needs  of  the
   At  each workshop,  attendees  received  CD's  with  the Directory  of Watershed
   Resources which included federal, private and state specific information on funding
   programs and Plan2Fund, an access based planning program.

   Following the workshops there were  several requests for further information  and
   additional assistance. Participants expressed interest in information  on what other
   communities  are doing to address the issues of funding  watershed strategies.  The
   Environmental Finance  Center  will continue to be a conduit  for sharing funding
   information and examples of funding strategies in Region 10.

   •  Pocatello,  Idaho (March 10,  2004) Twenty  Five  participants attended  the
      workshop.
   •  Coeur d'Alene, Idaho (April  7, 2004)  Twenty Five participants  attended the
      workshop.
   •  Watershed Funding Workshop - Newport Oregon (October 20, 2004) Nineteen
      people attended the workshop.
   •  Watershed Funding Workshop — Moses Lake, Washington (April 8, 2004) Nine
      watershed representatives registered for the workshop.

   Advanced Workshops

   While  many  watershed  groups  are very sophisticated in  watershed planning  and
   fundraising, they, too, have specific challenges and needs.  The EFC  provided three
   workshops  in Region 10  to assist theses communities  who have unique funding
   challenges.

   At  each workshop,  attendees  received  CD's  with  the Directory  of Watershed
   Resources which included federal, private and state specific information on funding
   programs and Plan2Fund, an access based planning  program. Participants at each of
   the advanced workshops received one-on-one assistance both prior to the workshop
   and following the workshop.

   •  Rogue Basin - Advanced Workshop (January  15, 2004) Thirty people attended
      the first advanced workshop in the Rogue Basin. The first advanced workshop
      focused on identifying the needs of the basin,  identifying the resources of the EFC
      and establishing a plan of how to assist the group in moving forwarded.  The
      group was successful in raising a large amount of funding to assist the watershed
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      groups in the basin.  However, they found themselves challenged by current
      funding  limitations, and  requested  assistance  in broadening their financing
      sources.  In order to locate new funding resources, the group discovered they first
      needed to identify their goals, objectives and tasks.  The EFC assisted the group in
      using Plan2Fund to begin to identify actions and funding opportunities.

   •  Rogue Basin - Advanced Workshop (May 6, 2004): The group requested a
      second advanced workshop to present the information in Plan2Fund to the basin.
      Ten people  attended the follow-up workshop. The  group is continuing to use
      Plan2Fund to develop a funding plan for the Basin.

   •  Chehalis Basin -  Advanced  Workshop:  The  EFC presented  an advanced
      workshop in  the  Chehalis Basin.  The Chehalis  Basin  group  had recently
      completed  a watershed plan and  requested  the  EFC assist them  in moving
      forwarded in  developing an implementation  strategy.   The  EFC  presented an
      advanced workshop to assist the group in identifying  the challenges they faced in
      moving forward to implementation. The workshop revealed that the  group needed
      assistance in identifying their goals, objectives and tasks. In addition, the group
      also needed assistance in prioritizing those objectives  and tasks. The EFC assisted
      the group in using Plan2Fund to identify the group's goals, objectives and tasks
      and assisted in the prioritization process.

   EPA Watershed Financing Demonstration Workshops

   The EFC provides valuable tools and resources to many  stakeholders working on
   watershed protection and restoration. Making these services known is a continuing
   effort.  For this reason, it is important that EPA staff and other agencies in constant
   contact with watershed  stakeholders be aware of the information, resources and tools
   we provide.  The EFC conducted two workshops for EPA Region 10 staff in the states
   of Oregon and Idaho. Key staff members were attended from EPA Region 10 as well
   as other federal agencies and watershed organizations.

   The purpose of these workshops was twofold: first was to familiarize EPA Region 10
   staff with the tools and services that the EFC provides to local watershed groups in
   the Northwest.   For example, the workshop  provided the  participants with  the
   Environmental Finance Center's database of funding resources, which  demonstrated
   how to acquire information on EPA  and other federal, state, local and private funding
   sources. The second goal of the demonstration workshop was to orient EPA staff on
   the techniques that the  EFC uses to teach watershed  organizations to discover and
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   leverage  funding resources  to implement multiple-year  implementation  plans.
   Workshops were conducted in Boise, Idaho and Tillamook Oregon.

   •  Boise Idaho:  The workshop  was held in Boise Idaho on March 31, 2004.
      Twenty five people attended the workshop and received CD-ROMs with the
      EFC's tool and  workshop  materials including the  Directory of  Watershed
      Resources and Plan2Fund.

   •  Tillamook Oregon: The  workshop was held in Tillamook Oregon  on May 5,
      2004.  Twenty five people attended the workshop and received CD-ROMs with
      the EFC's  tool and workshop  materials including the Directory of Watershed
      Resources and Plan2Fund.

   Idaho Stream and Wetland Regulation Workshops

   The Environmental Finance Center  at Boise State University coordinated with the US
   Army Corps of Engineers and  EPA to  plan and  deliver a series of Stream  and
   Wetland  Regulation  Workshops throughout Idaho  during  the fall of  2004. The
   workshops were designed to inform those who work around water resources of the
   requirements, permit  application process, and the consequences of not obtaining a
   permit prior to conducting work in regulated waters. Targeted participants included
   stakeholders who are  directly or indirectly involved in dredging of and/or placing fill
   in wetlands and streams.  Information  on both the state stream channel protection
   program and the federal wetland protection regulatory programs were presented.

   Six workshops were conducted  throughout Idaho between  October  2004  and
   November 2004.  The dates and locations of theses workshops are as follows:

   •  Boise, Idaho - October 27, 2004. Approximately 65 people attended.
   •  Salmon, Idaho - November 2, 2004.  Approximately 35 people attended.
   •  Idaho Falls, Idaho - November 3, 2004. Approximately 77 people attended.
   •  Twin Falls, Idaho  - November 4, 2004. Approximately 55 people attended.
   •  Sandpoint,  Idaho - November 9, 2004. Approximately 37 people attended.
   •  Lewiston Idaho - November 10, 2004. Approximately 55  people attended.

   Information packets including the PowerPoint presentation, joint application form and
   additional information and resources were provided to each participant.  The EFC
   worked closely with the EPA, Idaho Department of Water Resources  (IDWR), US
   Army Corps of Engineers (USAGE) and other federal, state and tribal agencies to
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   target attendees and coordinate the timing and location of each workshop to maximize
   participation.

   The workshops were  very well  received. Ninety-seven  percent  of  participants
   responded in the workshop evaluation that the  workshop  was valuable or  highly
   valuable.

   Directory of Watershed Resources

   Directory of Watershed Resources Database Update

   In 2003, the Center developed the Directory of Watershed Resources (Directory), a
   database of funding sources for watershed protection and restoration. The Directory
   includes information  on  federal,  state,  private, and  other  funding sources and
   assistance in the states of Oregon, Washington, Idaho, and Alaska.

   The Directory has been a huge success, identifying over 750 programs within Region
   10. However,  for  this database  to continue  to  be a resource  for watershed
   stakeholders, the information must be kept accurate and up-to-date.

   In 2004, to assist with the  task up updating the database, the Environmental Finance
   Center developed an email update function of the Directory of Watershed Resources.
   The email function allows  the EFC to send an annual email  to each program contact
   with a link to their  specific programs for review and requests updates to the  Center
   through email,  fax, phone, or by filling  out an online form. The  email provides
   additional verification with program contacts to ensure accuracy.

   Prior to sending the first email, the Center identified and added email addresses for
   each program contact into the  database.  This frequently was not included  in  the
   original contact information. This was done through online research and phone calls
   to program contacts. Once the contact information was complete, the EFC  sent an
   email to all primary program contact in the database. Although the response rate was
   fair for the first notice, it was insufficient to update the database,  so the Center has
   continued to add and  update programs  in the  database through research  and as
   information becomes available.

   Due to the difficulty in accessing the Internet in many areas, the EFC created an up to
   date CD-ROM version of the Directory free of charge and available upon request. In
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   2004 the EFC distributed over 500 CDs at workshops, conferences and through email
   and phone requests.

   In addition the Directory  is available  online. There were over 1,000 visits to  the
   Directory in 2004, with approximately  one hundred visitors to the  site every month.
   The  numbers  are  growing as people  become  aware of this  on-line resource. In
   addition, several  agencies have began to  link to the Directory  website and  are
   directing un-funded applicants to the EFC for assistance.

   National Expansion of the Directory of Watershed Resources and Plan2Fund

   The response to the Directory  of Watershed Resources has been extremely positive
   and has generated a  strong demand for this tool in other regions.  This demand  has
   been noticed by the USEPA's Sustainable Finance Team within the Office of Water,
   Oceans and Watersheds, with that division providing additional financial resources to
   the EFC.  To address this broader  need for effective watershed financing tools,  the
   Directory  and  Plan2Fund  are  being enhanced and expanded for  distribution to
   watersheds and watershed groups  in other  regions throughout the United  States.
   Expanding these tools will help build the capacity of watershed groups throughout the
   nation and make funding information more accessible to these groups, thus reducing
   the administrative burden many of these groups face.

   Directory of Watershed Resources

   In 2004, the Center began expanding the Watershed Resources Directory to function
   as a national database.  Expanding the Directory to a national database  will allow
   other states and regions to use the structure of the Directory, reducing duplication  and
   allowing for  significant cost savings.   The New England Environmental Finance
   Center (Region 1  EFC) will be the first EFC  to utilize the national structure by
   entering Region  1  information into the database.  Region  1  information will be
   available on  the  Database  in  early  2005.  We assume that  as  resources  allow,
   additional Environmental Finance Centers will also add information into the database.
   This project  is an  excellent example  of how  the  Environmental Finance Center
   Network allows the partner university-based EFCs to efficiently leverage resources in
   serving the public in our separate EPA Regions.

   Plan2Fund™

   Our field work proved that many watershed groups struggle with the task of moving
   from  the  actual  watershed plan  to  locating funding sources. Attendees at  our
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   workshops often want to know what sources of funding are available; however, they
   have not identified watershed restoration  priorities or established time  frames  for
   activities.  Without a clear funding  strategy, they  were  overwhelmed with  the
   implementation  process. During  2003,  the EFC responded  to  these requests  by
   developing new software tools to meet their needs and help them  move from  the
   planning process to developing a funding strategy for implementation. The result of
   this effort was Plan2Fund, a watershed strategic planning and funding tool that helps
   organizations determine their funding needs to meet the goals and objectives of their
   watershed restoration program plan.

   Plan2Fund™ was developed in Microsoft Access and is a database model that walks
   users through the process of estimating the costs  of their Watershed  Program Plan's
   Goals and Objectives, assessing any local matches, and determining funding needs to
   meet Goals and Objectives. The results from Plan2Fund™ can be used to search for
   funding  sources  utilizing the Environmental  Finance  Center's  internet-based
   Directory  of Watershed  Resources. Several hundred copies of Plan2Fund have been
   distributed free  of charge to  conference attendees and workshop participants.  In
   addition, over 140 people  have downloaded  Plan2Fund off the EFC's  website at
   http://sspa.boisestate.edu/efc.

   In 2004 the EFC requested feedback from these users. As a result, the EFC identified
   several  enhancements to Plan2Fund.   The majority of the requests were requesting
   that Plan2Fund be available in a runtime version, allowing users to access Plan2Fund
   without owning  the program software (Microsoft Access).  In 2004,  the EFC began
   enhancements to Plan2Fund, including creating a run time version. In addition, more
   detailed budgeting information was added to the program as well as responsible entity
   data that will allow collaborative watershed groups to identify in a series of reports
   what tasks are assigned to different stakeholders.  The revisions also included a grant
   tracking section that  allows users to identify and  track grants  and resources  for
   specific tasks. Additional reports  were also added to the program. The new version
   of Plan2Fund will be available on CD and on the EFC's website in 2005.

   Agricultural BMP Cost Analysis

   The EFC  worked extensively  with  watershed stakeholders throughout Region  10.
   This provided the EFC with the opportunity  to listen to challenges  and needs
   expressed  by various  watershed groups. At  the Klamath Watershed  Funding
   Workshop in particular, watershed stakeholders expressed a need to identify the costs
   and benefits of conservation efforts  for  landowners in the region. This information
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   could  be used  to inform  landowners  of the economic costs and benefits  of
   implementing Best Management Practices  (BMPs) on their land and help identify
   what  additional incentives may be required to  reach the conservation goals in the
   watershed.

   In response, the  EFC  completed an analysis of existing  models  available for
   determining cost incentives for watershed conservation efforts  and identified the
   potential to  develop  an  economic decision  model for  watershed  organizations. The
   analysis revealed that although there are many sources of information about economic
   incentives for agricultural BMPs, there is no model currently available  that would
   specifically address the water quality issues in these watersheds.

   The  EFC has been working with  the  Natural  Resources  Conservation Service
   (NCRS), Idaho Conservation Commission,  Idaho Association of Soil Conservation
   Districts, and other state and federal agencies to develop an analysis tool that provides
   cost information to landowners to assist them in  identifying conservation practices on
   their land. Through a series of meetings, the Idaho OnePlan was identified as partner
   in providing this service.

   The Idaho OnePlan was  developed by a consortium of agriculture  stakeholders and is
   overseen by the Idaho Soil Conservation Commission.  The Plan is a multi-agency
   project to combine government regulations and current best management practices for
   agriculture into a  single plan, integrating federal,  state, and  local regulations. The
   Idaho  OnePlan  provides data and  software  to help  growers  develop  a single
   conservation farm plan that can be pre-endorsed by the various  agencies, streamlining
   and simplifying the regulatory process that farmers face.  Within the OnePlan, the
   landowner can  locate their farm from a state map and the web site (using USGS and
   other agency GIS data) will  automatically retrieve geographic information  about the
   fields, including  soil type and  slope.  From  there,  the landowner identifies the
   activities the are occurring on the land. The OnePlan  then recommends a series of
   field specific conservation practices,  which will achieve a minimum  level of water
   quality benefit. Information on the costs  and related level of  benefits, however, are
   missing from the model.

   The EFC is working with various state and federal agricultural agencies to add  a
   financial cost component to the Idaho One Plan which will provide financial decision
   making capacity to the OnePlan. Adding  a financial component to the program will
   assist landowners in identifying the costs of conservation practices and assist them in
   finding financial resources to implement their conservation plan.
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   The EFC developed the methodology for adding this cost and benefit information into
   the OnePlan using both general and specific information. Once conservation practices
   are identified within the OnePlan,  general  cost  and benefit  information (high,
   medium, low) will be provided based on research  data by the NRCS. This would
   allow the landowner to compare conservation practices that have high costs and low
   benefit with practices that have low costs and high benefit.

   The  user  can also calculate more specific  estimates  on individual practices by
   entering information on  the  number  of units needed  per cost component.  The
   information would be  entered  into  a spreadsheet that used the  various  cost
   components of the conservation practice (identified by EFC), cost per unit (NRCS
   data  sheets) and the number of units needed (entered by landowner) to determine the
   cost  estimate for the conservation practice.  The EFC identified  the various cost
   components associated for each of the 80 conservation practices in the Idaho OnePlan
   and will use NRCS data on costs per unit for each cost component.

   The EFC will contine to work with the Idaho OnePlan to develop a cost component to
   the OnePlan to assist landowners in  identifying conservation practices.  For more
   information on the Idaho OnePlan visit http://www.oneplan.org/.

   Environmental Finance E-Newsletter

   The  Environmental Finance Center provides  a quarterly newsletter for  watershed
   stakeholders, which focuses on watershed funding issues within the region.  One issue
   of the newsletter was completed during the reporting period. The newsletter includes
   information on  upcoming events, grant  deadlines and specific resources and
   programs. This year the  EFC  expanded the newsletter to include micro  financing
   issues such as utility finance, rate setting and point source funding concerns. This has
   provided information to a broader range of stakeholders interested  in protecting the
   watershed.  The  newsletter is  emailed to  target groups  including past  workshop
   attendees, watershed groups, various  EFC contacts, and local governments. The
   response has been very positive.  The  EFC  has  received several  requests from
   individuals to be added to the email subscription list. In late 2004, circulation for the
   newsletter increased from 400 to nearly 500. The newsletter is available on the EFC's
   website at http://sspa.boisestate.edu/efc/news.htm.
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   IACC Newsletter

   The  EFC  supplied  assistance  to  the  Washington  Infrastructure  Assistance
   Coordinating Council (IACC) to provide a quarterly  newsletter on  infrastructure
   financing in Washington State. The goals of the newsletter are to provide relevant and
   timely information  on infrastructure financing and related issues, and to enhance
   communication between state and federal financing programs, as well as the systems
   and the public.  Two newsletters  were completed during the  reporting period.
   Newsletters can be viewed at:
   http://www.infrafunding.wa.gov/IACC%20Newsletters/IACC%20Newsletters.htm

   EFC Information Activities - Website

   The activities of the Boise State EFC are profiled at the EFC's Intranet website at
   http://sspa.boisestate.edu/efc. This website allows the EFC to provide information on
   our programs and projects without incurring the expenses of publishing a newsletter
   or  other periodical.  Information  such as  The  Watershed  Newsletter,  various
   PowerPoint presentations, Capacity Tracker download and  new publications were
   added to the website during the  first and  second quarters of FY 2005.  The EFC
   remains committed to keeping their website current and up-to-date.
MlbUhl_LANh<
rHNIUAL AbblbTANUE
   As the EFC  delivers watershed-funding workshops in the region, the demand for
   information on financing tools and resources has increased. Participants often pass
   information on to the other stakeholders who contact us for additional information
   and assistance.  In addition, the EFC is often contacted by agencies and organizations
   that would like us to participate  in conferences, meeting and  various watershed
   events.

   Below are a few examples  of the miscellaneous and unanticipated activities that the
   EFC has been asked to participate in during the first and second quarter of FY 2005.
   At these events, the EFC was able to present valuable information and resources to
   hundreds of participants, resulting in several requests for additional assistance.

   Watershed  Funding Customer  Service Assistance:  In 2003, the  EFC established a
   toll-free telephone  number for watershed stakeholders to call if they needed one-on-
   one technical service assistance when searching for watershed funding within Region
   10. The  line was  established  to provide  assistance in  searching the Directory of
   Watershed  Resources as well as provide  additional  information on financing tools,
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   resources, contact information,  and other  resources.   The EFC has continued this
   service for Region 10 to provide technical assistance and information to workshop
   participants  and others  who  are interested in implementing watershed protection
   strategies, but  need more information about financing tools, resources,  contact
   information,  etc. Through phone  and email requests, additional  Directories of
   Watershed Resources and Plan2Fund CDs (150) were sent in 2004.  The EFC  plans
   to continue this service for Region 10 in the future.

   Watershed Financing Individual Assistance: Often EFC workshops and presentations
   result in requests for additional assistance. Several times throughout the year the EFC
   researched funding sources for specific  needs in a watershed. During 2004, the EFC
   provided this assistance to several individuals and organizations including the City of
   Coquille, Fish First, the Lower Boise River Watershed Advisory Group, and various
   other individuals.

   Workshops and Conferences

   Throughout the year  the  EFC  is  asked to participate  in  various workshops and
   conferences. The conferences allow the EFC  to  share its tools and services with a
   large number of stakeholders and has resulted in  positive responses and requests for
   additional information. Below are a few of the events and services the EFC provided
   during this reporting period.

   •  Watershed Protection Institute  - Bainbridge Island Washington (September  17,
      2004)
       The EFC  gave a presentation and participated  in  a panel discussion  at the
       Watershed Protection Institute on funding river and watershed efforts.  The EFC
       provided  participants with  a CD-ROM of its  tools  and resources  including
       Plan2Fund and the Directory of Watershed Resources.

       National Non-Point Source (NPS) Conference - Austin TX (2004)

       The National  NPS Conference,  "Implementation at the Watershed Level"  was
       sponsored by the EPA and the Association of State and Interstate Water Pollution
       Control Administrators (ASIWPCA). The EFC  provided a workshop on financing
       watershed protection efforts. Participants received a CD-ROM of the Directory of
       watershed resources  and Plan2Fund.  The  workshop was  well  received  and
       resulted  in several  additional requests for assistance including a follow-up
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      presentation  at  the  Arkansas Watershed Advisory  Group's 2004 Watershed
      Conference: "Clean Water - Stronger Communities.

   •  Watershed Partnership Seminar - U.S. Environmental Protection Agency, U.S.
      Office of Personnel  Management/Western  Management Development  Center
      Denver Colorado.  (November 8-19. 2004)

      The EFC participated in the Watershed Partnerships Seminar: Collaboration for
      Environmental  Decision Making. The EFC provided a full day workshop on
      financing watershed protection efforts. Participants received CD-ROMs with the
      Directory of Watershed Resources  and Plan2Fund. The information was well
      received and resulted in additional requests for assistance.

   •  New England  Interstate Water  Pollution   Control  Commission  (NEIWPCC)
      Conference (May 2004).

      Teaming up with the Environmental Finance Center at Syracuse University, the
      Boise State EFC presented  two sessions at the Northeast NEIWPCC Conference
      at Lake George, New York. The first session, Financing Sustainable Watersheds:
      How the  Environmental  Finance  Center  Assists  Watershed Organizations,
      discussed  how  the  EFC  Network  assists  watershed  organizations  and  local
      communities in building the financial and managerial capacity necessary to solve
      the  challenges  of nonpoint source  pollution.   The second  session, Financing
      Sustainable Watersheds:  Tools  to  Save  Time  and  Find Money, introduced
      participants to  successful management and financing techniques for  watershed
      restoration and informed participants of the tools and resources available to assist
      watershed stakeholders with their funding needs. The EFC gave an overview of
      PLAN2FUND™, a watershed planning tool, and web-base funding databases
      including the Directory of Watershed Resources. In addition, the  EFC also
      discussed future tools they are developing to assist landowners in identifying the
      cost effectiveness of Agricultural Best Management Practices.

   Environmental Finance Focus on Infrastructure Finance Activities

   While  watershed   financing   technical  assistance   and  training  has  increased
   significantly over the past several years, the EFC at Boise State University maintains
   an important core of tools  and services relative to the traditional full-cost funding
   challenges of providing  essential public services.  This section of the 2004 Annual
   Report highlights new State Revolving Fund (SRF) activity of the EFC and a variety
   of training and technical assistance events.
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   State Revolving Funds (SRF): Providing Financial and Management Capacity
   Analysis

   Since 1997 the EFC  has provided third-party review of financial and management
   capacity  of applicants seeking  funding  from the  Idaho  Drinking Water State
   Revolving Fund Program. Similar services are provided under contract to the Alaska
   Clean Water Fund and Drinking Water Revolving Fund for the analysis of financial
   capacity. Approximately one-dozen reviews were conducted in 2004. New in 2004,
   the EFC entered into contracts with the US  Army Corps  of Engineers  and  the
   Washington Department  of Ecology  for additional  financial  capacity  analysis
   services.

   US Army Corps of Engineers (USAGE):  In 2004 the  Walla Walla District Office
   (Boise branch) of  the US Army Corps of Engineers  asked the EFC to  conduct
   financial  capacity analyses for recipients of their Section 595 assistance program.
   The financial capacity reviews  are now used by the Corps staff to encourage water
   and wastewater systems to institute management and financial management  changes
   that should lead to more sustainable public services. In December 2004, the EFC
   completed its first report - the City of Burley, Idaho Wastewater Fund - for the Corps
   staff.  The EFC may  receive similar requests from USAGE offices throughout the
   western states. Aside from receiving objective review of loan applicants' financial
   capacity, the Corps benefits from being able to access trained and experienced EFC
   staff for this purpose - without having to establish internal staff capacity to do this
   work.

   Washington Department of Ecology: Also in 2004, the Washington Department of
   Ecology - the administrators of the state's Clean Water State Revolving Fund - asked
   the EFC to not only conduct financial capacity reviews of its recipients for funds, but
   also to design a computer-based model that would expedite such financial  reviews
   and automatically  generate financial capacity analyses.  This  new  computer tool
   should be available in 2005 and could become a model for other state  SRF programs.

   Training and Technical Assistance Events - Highlights

   Ohio CAPFinance Workshops

   The Environmental Finance Centers at Boise State University and Cleveland State
   University  teamed up in February, 2004 to deliver two  workshops on asset
   replacement financing in two Ohio cities: Cleveland and Columbus.  The two EFCs
REGION  1 D

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BOISE STATE UNIVERSITY EFC
                                                                EF©N
   teamed with the Ohio Rural Community Assistance Program to offer the training to
   small Ohio communities.

   Washington Drinking Water SRF Workshop Series

   In March, 2004 the EFC presented a series of training workshops at regional locations
   throughout the State of Washington. The specific training focused on full-cost pricing
   and financial capacity measurement for applicants to the State's Drinking Water State
   Revolving Fund Program.  Sponsored by  the Washington Public Works Board, the
   training made use of several EFC-developed tools,  including a multiple year
   financing model designed specifically for the workshop series.

   Wyoming Association of Rural Water Systems Rate Checkup Training

   The EFC was invited to present training on its new Rate Checkup water utility rate
   setting software at the Wyoming Rural Water Systems Annual Conference in Casper
   in March 2004.

   Alaska  Water  and  Wastewater  Management Association -  Rate Checkup
   Workshop

   In April the EFC provided a rate setting workshop  for  water  and wastewater
   professionals  in Anchorage. The  workshop highlighted the introduction  of Rate
   Checkup to Alaska communities.

   Ohio Water Environment Association Conference - Columbus, OH

   Also in April, 2004 EFC directors Bill Jarocki (BSU EFC) and Kevin O'Brien (CSU
   EFC) presented a series of workshop sessions on financial and management capacity
   at the Ohio Water Environment Association Conference in Columbus.  The focus of
   the conference was the implementation finance challenges of CSO/SSO standards for
   communities. Sanitary sewer  overflows  (SSOs)  differ  from combined  sewer
   overflows  (CSOs).  CSOs  are overflows from older sewer systems designed to carry
   both domestic and storm water loads.   SSOs are discharges of raw or inadequately
   treated sewage from municipal separate sanitary sewer systems, which are designed
   to carry domestic  sanitary sewage but  not storm water. These overflows may also
   contain industrial wastewater that is present in the sewer  system. The TWO EFCs
   joined EPA's Office of Enforcement in presenting practical approaches for full-cost
   financing of CSO/SSO projects.
REGION  1 D

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BOISE STATE UNIVERSITY EFC
                                                                   •*•
                                                                EF@N
   Oregon League of Cities Water and Wastewater Financing Workshop

   In July, the Oregon League of Cities invited the EFC to present a workshop on asset
   replacement financing in Eugene, Oregon. Nearly fifty city officials attended this
   workshop which featured two EFC products  - CAPFinance and the Guidebook of
   Financial Tools.

   National Capacity Development Workshop - Denver, CO

   In  July,  2004  EFC  Director  Bill  Jarocki  presented  workshops  on  capacity
   development tools, training and technical assistance at the Drinking Water National
   Capacity Development Workshop in Denver, Colorado. Of particular note was the
   State of Louisiana's use  of the EFC's RatioS  model for tracking the performance of
   its capacity development activities in the state drinking water protection program.

   Utah Full Cost Pricing Demonstration Workshop

   In August of 2004  the EFC at Boise State University  teamed up with W.  David
   Patton, Ph.D. of the  University of Utah to offer a Rate-Setting and Capital Financing
   workshop for small  Utah communities in the  Salt Lake City  area.  Patton, a former
   Boise State University EFC  Director and currently the Director of the Center for
   Public  Policy at  the University of Utah, co-hosted the full day workshop with the
   Utah League of  Cities and Towns. Approximately  15  elected and appointed Utah
   municipal officials attended the workshop.

   Region 7 State Drinking Water Program Stakeholders Meeting - Jefferson City,
   MO

   In October, the  EFC facilitated a meeting  of Missouri  drinking water program
   capacity development stakeholders in Jefferson City.  The purpose of the meeting was
   to revisit state program priorities developed  under the SDWA's state strategy
   requirement. This meeting in Missouri  followed several years of collaboration with
   the Region 7 states, the Region 7 Office of Groundwater and Drinking Water and the
   EFC at Boise State University.

   Region 8 All States  Meeting for Drinking Water System Capacity Development

   Also in October, the EFC presented its repertoire of tools for improving water system
   management and financial capacity at the all states meeting for Region 8. This
REGION  1 D

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BOISE STATE UNIVERSITY EFC
                                                               EF©N
   workshop highlighted replacement cost financing and using CAPFinance to calculate
   those costs.

   Washington Infrastructure Assistance Coordinating Council (IACC) Conference
   - Wenatchee, WA

   Wenatchee was the site of the 2004 IACC annual conference. The EFC presented
   workshops on rate setting using Rate Checkup, and asset replacement financing using
   CAPFinance.

EFC NETWORK COLLABORATIVE ACTIVITIES SUMMARY

   •  Watershed Protection.  The EFC will continue to collaborate with the EFC at the
      University  of Maryland  (Region 3) on watershed protection and watershed
      funding efforts. In 2005, these  Centers are expected  to  introduce watershed
      planning and financing tools to stakeholders in the State of Virginia.

   •  Directory of Watershed Resources. The EFC is collaborating with the University
      of Southern Maine EFC (Region 1) and the EFC Network to expand the Directory
      of Watershed Resources to other EFC Regions. This work, funded through EPA's
      Office of Wetlands Oceans and  Watersheds (OWOW), is designed to lay the
      groundwork for eventual nationwide application of EFC tools.

   •  Conferences and Meetings.  The EFC will continue to collaborate with the EFC
      Network to provide information and presentations at conferences.

NEW INITIATIVES FOR 2005

   The  EFC will  pursue several new  initiatives in 2005 in the policy areas of Safe
   Drinking Water and Watershed Protection.

   Watershed Funding Workshops

   The  EFC is developing an online watershed funding workshop. The workshop will
   provide information, tools and resources to a wide variety of watershed groups, local
   governments and tribes. The workshop will include video, web tutorials,  and links to
   resources  and  tools  to assist group develop strategies for  financing watershed
   protection efforts.  In addition, the EFC will provide ongoing web  support and
   assistance to groups developing and implementing long-term  funding strategies.
REGION  1 D

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BOISE STATE  UNIVERSITY EFC
                                                                     •*•
                                                                 EF@N
   Directory of Watershed Resources

   The EFC is expanding the Directory to a national database. The EFC will continue to
   work with the EFC Network to expand this resource to other regions. In addition, the
   EFC will continue to update and expand the funding sources within the Directory of
   Watershed Resources.

   Prioritization Tool

   The EFC is developing a new tool to assist watershed organizations to prioritize the
   goals and objectives of their watershed plan. The computer-based prioritization model
   fills an important gap for groups that have difficulty deciding which of their planning
   objectives should be accomplished immediately, in the short term, or at some later
   time. As with other EFC tools,  the prioritization model is born of necessity,  is a
   practical solution to problems  stakeholder groups  face,  and will ultimately help
   community based organizations accomplish their tasks more efficiently. The tool will
   provide organizations with a model to assist them through the prioritization  process
   using decision rules developed by the group.  Field testing in late 2004 has led to the
   likely delivery of a full-beta model in 2005.
REGION  1 D

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EFC  NETWORK  CONTACT LIST
                                                            -5-
                                                         EF@N
                Region 1 Environmental Finance Center
                  EFC at University of Southern Maine
               Edmund S. Muskie School of Public Service
                            49 Exeter Street
                      Portland, Maine 04104-9300
EFC DIRECTOR
   Dr. Richard Barringer
barringr@usm.maine.edu
        (207)780-4418
    Fax (207) 780-4317
PROJECTS DIRECTOR
                  Dr. Samuel B. Merrill
                smerrill@usm.maine.edu
                       (207)228-8596
                    Fax (207) 780-4317
 REGIONAL CONTACT        Diane Gould
                   gould.diane@epa.gov
                        (617)918-1569

                     US EPA - Region 1
             1 Congress Street, Suite 1100
                 Boston, MA-2114-2023
 EPA
 HEADQUARTERS LEAD     Alecia Crichow
                 crichlow.alecia@epa.gov
                        (202)564-5188
                     Fax (202) 565-2587
                Region 2 Environmental Finance Center
                       EFC at Syracuse University
             Maxwell School of Citizenship and Public Affairs
                           504 Maxwell Hall
                     Syracuse, New York 13244-1090
EFC DIRECTOR
      Mark Lichtenstein  REGIONAL CONTACT
              malichte@maxwell. syr. edu
                       (315)443-9438
                    Fax (315) 443-5330
ASSOCIATE DIRECTOR
              asciccarfi
        Amy Ciccarelli
      ^maxwell, syr. edu
        (315)443-1979
PROGRAM MANAGER      Kevin Jacob son
             kmj acob s@maxwell. syr. edu
                       (315)443-4881
                    Fax (315) 443-5330

ADMINISTRATIVE COORDINATOR
                    Mary Ellen Gilbert
              magilb er@maxwell. syr. edu
                       (315)-443-9994
              Elizabeth VanRabenswaay
  Elizabeth VanRabenswaay/R2/USEPA/US
                       (212)637-3881
                    Fax (212) 637-3891
                    US EPA - Region 2
                        290 Broadway
             New York, NY 10007-1866

EPA
HEADQUARTERS LEAD     Vera Hannigan
                hannigan.vera@epa.gov
                       (202) 564-5001
              Fax (202) 565-2587

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   EFC NETWORK CONTACT  LIST
                 Region 3 Environmental Finance Center
                       EFC at University of Maryland
                     Institute for Governmental Service
                           451 IKnox Road #205
                       College Park, Maryland 20740
                                              ^^^H
 EFC DIRECTOR
            Dan Nees
  dannees@earthlink.net
        (301)403-4610
    cell (301)466-3394
    Fax (301)403-4222
 ASSISTANT COORDINATOR
                      Michelle O'Herron
                 oherron@mdsg.umd.edu
                     (301)403-4220x26
                     Fax (301)403-4255
 FIELD OPERATIONS
        Jean Holloway
        (410)632-1853
      Jshl252@ezy.net
 REGIONAL CONTACT     Mindy Lemoine
                 lemoine.mindy@epa.gov
                         (215)814-2736
                     Fax (215) 814-2201

                     US EPA - Region 3
                      Mail Code 3CBOO
                        1650 Arch Street
             Philadelphia, PA 19103-2029

 EPA
 HEADQUARTERS LEAD     Susan Emerson
                 emerson. susan@epa.gov
                         (202)564-1137
                     Fax (202) 565-2587
                 Region 4 Environmental Finance Center
                    EFC at University of North Carolina
                          Institute of Government
                         CB# 3330 Knapp Building
                        Chapel Hill, NC 27599-3330
EFC DIRECTOR
         Jeff Hughes
    jhughes@unc.edu
Phone:(919) 843-4956
  Fax: (919) 962-2765
EFC ADVISORS    Prof. Richard Whisnant
Associate Prof. UNC School of Government
              ri chard_whi snant@unc. edu
                       (919) 962-9320

                         Lynn Weller.
             Weller@iogmail.iog.unc.edu
                 Phone: (919) 966-4199
                   Fax: (919) 962-8202
REGIONAL CONTACT      Maryj o Bragan
                bragan.maryjo@epa.gov
                       (404) 562-8323
                    Fax (404) 562-8269

                    US EPA - Region 4
                 61 Forsythe Street, SW
                Atlanta, GA 30303-8960
EPA
HEADQUARTERS LEAD  Timothy McProuty
             mcprouty.timothy@epa.gov
                       (202) 564-4996
                    Fax (202) 565-2587

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  EFC NETWORK CONTACT LIST
                                                              -5-
                                                           EF@N
                  Region 4 Environmental Finance Center
                       EFC at University of Louisville
                            426 W. Bloom Street
                           University of Louisville
                         Louisville, Kentucky 40208
EFC DIRECTOR
     Peter Meyer, Ph.D
Pbmeyer@louisville.edu
 Phone:(502)852-8032
   Fax:(502) 852-4558
EFC Co-DiRECTOR       Lauren Heberle
          lOhebeOl @gwise.louisville.edu
                  Phone: 502-852-4749

PROJECT MANAGER       Russell Barnett
                r.barnett@louisville.edu
                     202 Patterson Hall
                 Phone:(502)852-1851
                   Fax:(502)852-4677
REGIONAL CONTACT       MaryjoBragan
                bragan.maryjo@epa.gov
                        (404) 562-8323
                    Fax (404) 562-8269

                    US EPA - Region 4
                 61 Forsythe Street, SW
                Atlanta, GA 30303-8960

EPA
HEADQUARTERS LEAD     Vera Hannigan
                hannigan.vera@epa.gov
                        (202) 564-5001
                    Fax (202) 565-2587
           Region 5 Great Lakes Environmental Finance Center
                     EFC at Cleveland State University
              Maxine Goodman Levin College of Urban Affairs
                       1717 Euclid Avenue, Suite 120
                            Cleveland, OH 44115
EFC DIRECTOR
SECRETARY
        Kevin O'Brien
 kobrien6@adelphia.net
  Phone: (216) 687-2188
    Fax: (216) 687-9291
                        Vivian Tucker
              vivian@urban.csuohio.edu
                 Phone: (216) 687-4739
                   Fax: (216) 687-9291
REGIONAL CONTACT         Lyn Luttner
                   U.S. EPA-Region 5
      Cleveland Office - Mail Code ME-W
               25089 Center Ridge Road
                   Westlake, OH44145
                       (440)250-1711
                    fax (440)250-1750

EPA
HEADQUARTERS LEAD  Timothy McProuty
              mcprouty.timothy@epa.gov
                       (202) 564-4996
                    Fax (202) 565-2587

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   EFC NETWORK CONTACT LIST
                 Region 6 Environmental Finance Center
           EFC at New Mexico Institute of Mining and Technology
       The Institute for Engineering Research and Applications (IERA)
                         901 University Boulevard
                       Albuquerque, NM 87106-4339
                                                  ^H
EFC DIRECTOR
Heather Himmelberger
heatherh@efc.nmt.edu
      (505)272-7357
  Fax (505) 272-7203
PROGRAM MANAGER
        Susan Butler
  butler@efc.nmt.edu
      (505)272-7356
  Fax (505) 272-7203
Program Coordinator  Cynthia Hernandez
               chernandez@efc.nmt.edu
                       (505) 272-7280
                   Fax (505) 272-7203
REGIONAL CONTACT         Freda Wash
                   wash.freda@epa.gov
                       (214) 665-8342
                   Fax (214) 665-6490

                   US EPA - Region 6
                  Mail Code - 6WQ-AT
                    1445 Ross Avenue
                 Dallas, TX 75202-2733
EPA
HEADQUARTERS LEAD    Alecia Crichlow
               crichlow.alecia@epa.gov
                       (202)564-5188
                   Fax (202) 565-2587
                 Region 9 Environmental Finance Center
                EFC at California State University, Hayward
                      Environmental Finance Center
                         Building 7, Alameda Point
                         851 West Midway Avenue
                            Alameda, CA 94501
EFC DIRECTOR
ASSOCIATE DIRECTOR
     Sarah Diefendorf
      sdief@aol.com
      (510)749-6867
  Fax (510) 749-6862

     Susan Blachman
      (510)749-6867
  Fax (510) 749-6862
REGIONAL CONTACT          Bill Jones
               Bill Jones/R9/USEPA/US
                       (213)244-1817
                   Fax (213) 244-1850
                   US EPA - Region 9
                     Mail Code SPE-1
                   75 Hawthorne Street
               San Francisco, CA 94105

EPA
HEADQUARTERS LEAD     Vanessa Bowie
                bowie.vanessa@epa.gov
                       (202)564-5186
                   Fax (202) 565-2587

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   EFC  NETWORK  CONTACT LIST
                                                               -5-
                                                            EF@N
EFC DIRECTOR
ASSOCIATE
                  Region 10 Environmental Finance Center
                         EFC at Boise State University
                             1910 University Drive
                               Boise, ID 83725
          Bill Jarocki
bj arock@b oi se state. edu
       (208) 426-4293
   Fax (208) 426-3967
   C. Gary Carroll, PE
gcarroll @b oi se state. edu
       (208) 426-2460
ADMINSTRATIVE ASSISTANT
                      Lynda Robinson
                lroninso@boisestate.edu
                       (208)426-1567
                    Fax (208) 426-3967
REGIONAL CONTACT William Chamberlain
           chamberlain.william@epa.gov
                       (206)553-8515
                   US EPA-Region 10
                    1200 Sixth Avenue
                    Seattle, WA 98101
EPA
HEADQUARTERS LEAD     Vanessa Bowie
                bowie.vanessa@epa.gov
                       (202)564-5186
                    Fax (202) 565-2587
   - EFC Network contact list of August 3, 2005, vh

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EPA/OCFO/Environmental Finance Program
                                                          Page 1 of2
 EFP Overview

 What's New?
 Frequently Asked
  Questions (FAQs)

 Contact EFP

 Environmental
  Financial Advisory
  Board (EFAB)

 Environmental Finance
  Center Network

 Environmental
  Financing Information
  Network (EFIN)
 Guidebook of
  Financial Tools

 Environmental
  Financial Tools

 EFP Publications

 Funding Sources

 Ask a Question
               U.S. Environmental Protection Agency

Environmental Finance Program               )
Contact Us Print Version  Search: |
EPA Home > Chief Financial Officer > Environmental Finance Program

            Helping to answer the "HOW TO PAY" question.

What is the EFP?
The EFP, an Overview
Frequently Asked
Questions (FAQs)
What's New?
Contact the EFP
EFP Elements:
Environmental Financial
Advisory Board
Environmental Financing
Information Network
Environmental Finance
Center Network
Guidebook of
Financial Tools
EFP Activities:
Environmental
Financial Tools
Funding Sources
EFP Publications
Ask a Question
•PA Documents Spotlighted:
• EFC Network's '2004 Annual
Report' (PDF) (August 2005) NEW
• EFAB's Strategic Action Agenda, Fiscal Years
2005-2006 (PDF) (July 2005) NEW
• EPA's response (July 2005) to EFAB's "Combined
Operations of the Clean Water and Drinking Water
State Revolving Loan Funds (SRFs):" 1) Cover
letter, 2) White Paper. (PDFs) (May 2005) NEW
Need help understanding environmental
finance? Just ask. We want to help!
Tool Spotlight:
• A
Guidebook of
Financial
Tools...
Discover 350+
environmental
financial tools
to practice
sustainable
finance with.
EFP Spotlight:
• EFAB's
summer full
board meeting
will be held
August 15th -
16th, 2005 in
San Francisco,
CA NEW
• EFAB's
Newsletter for
March
2005 (Past
newsletters.)
• Minutes
from EFAB's
winter 2003 full
board meeting


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                                                             8/4/2005

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EPA/OCFO/Environmental Finance Program                                              Page 2 of 2
                                          Last updated on Wednesday, August 3rd, 2005
                                              URL: http://www.epa.gov/efinpage/
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EPA/OCFO/EFP/EFP Overview
                                                            Pagel of 3
                                   (AS. Environmental Protection Agency
                    Environmental  Finance Program                )
                    Contact Us Print Version  Search: |
 EFP Overview

 What's New?

 Frequently Asked
  Questions (FAQs)

 Contact EFP

 Environmental
  Financial Advisory
  Board (EFAB)

 Environmental Finance
  Center Network

 Environmental
  Financing Information
  Network (EFIN)

 Guidebook of
  Financial Tools

 Environmental
  Financial Tools

 EFP Publications

 Funding Sources

 Ask a Question
 EPA Home > Chief Financial Officer > Environmental Finance Program > EFP Overview

Environmental Finance Program (EFP)
Overview
                         What is the EFP?
         Background
         Purpose and Activities
                          BACKGROUND

        One of the major challenges of the 21st century is obtaining
   funds for environmental programs. The costs of environmental
   protection are growing rapidly. Yet our nation's ability to meet these
   rising costs is falling behind - and the financing gap is widening.
   Consequently, the nation needs to make the effort to develop long-
   term funding strategies.

        Because we live in times of diminishing resources and
   competing priorities, the U.S. Environmental Protection Agency has
   developed the Environmental Finance Program to assist communities
   in their search for creative approaches to funding their environmental
   projects.

        The Environmental Finance Program at the U.S. Environmental
   Protection Agency provides financial technical assistance to the
   regulated community and advice and recommendations to the
   Agency on environmental finance issues, trends, and options.

                     PURPOSE AND ACTIVITIES

        Drawing on the financing expertise of staff, the Environmental
   Financial Advisory Board, and university based Environmental
   Finance Centers, the Environmental Finance Program seeks to lower
   costs, increase investment, and build capacity by creating
   partnerships with state and local governments and the private sector
   to fund environmental needs.

        The Environmental Finance Program operates through three
   activities:

     1. The Environmental Financial Advisory Board or EFAB is a
        federally chartered advisory committee consisting of a diverse
        group of independent financing experts from public and private
        sector organizations interested in lowering environmental
        costs and increasing investment in environmental facilities and
        services. The  Board produces policy and technical reports on a
http://www.epa.gov/efmpage/efp.htm
                                                              8/4/2005

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EPA/OCFO/EFP/EFP Overview
Page 2 of 3
                              wide range of environmental finance matters of interest to EPA.
                              It focuses on environmental finance issues at all levels of
                              government, particularly with regard to their impact on local
                              governments and small communities. The Board seeks to
                              increase the total investment in environmental protection by
                              facilitating greater leverage of public and private environmental
                              resources.

                          2.  The Environmental Finance Center (EFC) Network is a
                              university-based program providing financial  outreach services
                              to regulated communities. The  Network consists of nine EFCs
                              that share information and expertise on finance issues and
                              engage jointly in projects. The  Network includes (in order of
                              their establishment): the University of New Mexico in Region 6;
                              the University of Maryland in Region 3; Syracuse University in
                              Region 2; California State University at Hayward in Region 9;
                              the Great Lakes EFC at Cleveland State University in Region 5;
                              Boise State  University in Idaho located in Region 10; University
                              of North Carolina at Chapel Hill in Region 4; University of
                              Louisville - Center For Environmental Policy & Management in
                              Region 4; and the University of Southern Maine in Region 1.

                              The EFCs educate state and  local officials and small
                              businesses  on lowering costs of compliance and pollution
                              prevention,  increasing investments in environmental
                              protection, improving financial capacity to own/operate
                              environmental systems, encouraging the full cost pricing of
                              environmental services, and  identifying and evaluating
                              financing tools and options.

                          3.  The Environmental Financing Information Network (EFIN) is an
                              outreach service offering electronic access to many types of
                              environmental financing information on financing alternatives
                              for State and local environmental programs and projects. EFIN
                              services include a World Wide Web site, an on-line data base,
                              referrals to an expert contact network, infoline, and distribution
                              of Environmental Finance Program publications and some EPA
                              publications.

                              EFIN also maintains a Web page of Environmental Financial
                              Tools . This page includes tools produced by  the
                              Environmental Finance Program, the Environmental Financial
                              Advisory Board (EFAB), the Environmental Finance Center
                              Network (EFCs), EFIN, EPA Offices and Programs and Other
                              (outside EPA) sources. A key work among the financing
                              mechanisms on this page is the Guidebook of Financial Tools..
                              The Guidebook is produced by the Environmental Finance
                              Center Network and the Environmental Financial Advisory
                              Board. It is intended as a basic financial reference document
                              for public and private officials with environmental
                              responsibilities. It provides a wealth of valuable information on
                              340 financing tools that federal, state, and local governments
                              and the private sector can use to pay for environmental
                              programs, systems, and activities. The information is intended
                              to help governments and other parties expand their thinking
                              about the financial options/resources available to help meet
                              important environmental mandates and create sustainable
                              systems. A new edition of the Guidebook is in production and
                              the Environmental Finance Team is actively seeking
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EPA/OCFO/EFP/EFP Overview
Page3 of 3
                              submissions for new tools at the Guidebook website .
                            You will need Adobe Acrobat Reader (ltx'1''l'"'l''n"'r>l) to view a
                               number of files on this site. For more information about
                                            Adobe Acrobat, click here .

                                         •  EFP Brochure in PDF Format.
                        For further information on the Environmental Finance Program and
                        its many products, including the Guidebook, return to the Home
                        Page at http://www.epa.gov/efinpage/ or contact: efin@epa.gov . See
                        also the list of contacts for the components of the program.
                                      EPA Home | Privacy and Security Notice | Contact Us


                                        Last updated on Wednesday, March 23rd, 2005
                                          URL: http://www.epa.gov/efinpage/efp.htm
http://www.epa.gov/efmpage/efp.htm
  8/4/2005

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EPA/OCFO/EFP/EFC Network
                                                            Page 1 of4
                                   (AS. Environmental Protection Agency
                    Environmental  Finance Program                )
                    Contact Us Print Version  Search: |
 EFP Overview

 What's New?

 Frequently Asked
  Questions (FAQs)

 Contact EFP

 Environmental
  Financial Advisory
  Board (EFAB)

 Environmental Finance
  Center Network

 Environmental
  Financing Information
  Network (EFIN)

 Guidebook of
  Financial Tools

 Environmental
  Financial Tools

 EFP Publications

 Funding Sources

 Ask a Question
EPA Home > Chief Financial Officer > Environmental Finance Program > Environmental Finance
Center Network

Environmental Finance Center Network
                     What is the EFC Network?

        Introduction
        Services and Capabilities
                          Locate an EFC:

        List of Regional Environmental Finance Centers
                           What's New?
        The Environmental Finance Center Network and the
        Environmental Finance Program of the Office of Enterprise
        Technology & Innovation are pleased to make available the
        EFC Network 2004 Annual Report (PDFs) (August 2005).  NEW

        The Environmental Finance Center Network 2005 Overview is
        now available online. (PDF) (August 2005)  NE«

        Exactly how does the Environmental Finance Center Network
        help to answer the "How to Pay?" question? These documents
        can help answer your questions: (PDF) (February 2005). NEW

            o  Environmental Finance Center Network (Fact Sheet),
            o  Environmental Finance Center Network (Brochure)

        The Environmental Finance Center Network was the subject of
        an article on the National Drinking Water Clearinghouse's
        website entitled "Show Me the Money (And How to Manage It):
        Environmental Finance Centers Explain Fiscal Management."
        The article decribes the EFC's efforts in the field of
        environmental finance and provides examples. (December
        2003)
        The Environmental Finance Center at Boise State was recently
        mentioned on page 21  of the Fall 2003 issue of Boise State
        University's Focus magazine in the article "Environmental
        technology helps assure pure water." The article decribes the
        EFC's research and subsequent national product roll out.

        The Environmental Finance Center at Boise State, regarding its
        sussessful research studies, was recently mentioned in the
        Federal Register, vol. 68, no. 192, pg. 57451. It was noted that
        "EPA's proposed revised [Small Local Governments
        Compliance Assistance Policy] policy  recommends that States
        adopt a number of listed capacity measures the Agency has
        drawn from the studies performed by the EPA's Boise
        Environmental Finance Center. In the context of measuring the
        ability of small local governments to implement the
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                             requirments of the the Safe Drinking Water Act. The Boise
                             Environmental Finance Center identified a number of factors
                             that influence the technical, managerial, and financial capacity
                             of local governments, (see, http://sspa.boisestate.edu/efc) EPA
                             adapted many of these measures for inclusion into the
                             proposed revised policy, and recommends that States
                             incorporate these measures as appropriate for their local
                             condition."
                                            EFC Network Contacts:

                             Environmental Finance Center Network Directory
                             (PDF) (August 2005)
                                         EFC Network Annual Reports:
                             EFC Network 2004 Annual Report (PDFs) (August 2005) NEW
                             EFC Network 2003 Annual Report (PDFs) (October 2004)
                             EFC Network 2002 Annual Report (PDFs) (February 2004)
                             EFC Network 2001 Annual Report (PDFs) (October 2002)
                             EFC Network 2000 Annual Report (PDFs) (September 2001)
                             the Annual Reports below have been temporarily removed from
                             the website. If you need access to them please contact EFP.
                             EFC Network 1999 Annual Report
                             EFC Network 1998 Annual Report
                             EFC Network 1997 Annual Report
                             EFC Network 1996 Annual Report
                             EFC Network 1995 Annual Report
                                       EFCN Charrettes -A Proven Tool:

                             Series of Charrettes - Region 3 EFC at the University of
                             Maryland
                             Series of Charrettes - Region 9 EFC at California State
                             University, Hayward
                             Common Sense Initiative Access to Capital "Charette"
                             Washington, DC, January 16,1997
                                           Tools and Publications:

                             A primary source  for tools (help) is the document A Guidebook
                             of Financial Tools produced by the Environmental Financial
                             Advisory Board and the Environmental Finance Center
                             Network. (PDF) (April 1999 - most recent version)
                             Environmental Finance Center Publications
                             Environmental Financial Tools
                             Environmental Financing Publications
                                               INTRODUCTION

                             Environmental goals cannot be met without financing, which is
                       essential to implementing state and local programs, Knowledge about
                       how to fund these programs is often limited, especially at the local
                       level. As a result, there is an unprecedented demand on the expertise
                       of public officials currently on the front lines of financing
                       environmental facilities and services.

                             The EFCs provide state and local officials and small
                       businesses with advisory services; education, publications, and
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                        training; technical assistance; and analyses on financing alternatives.
                        The EFC network currently includes: the University of Southern
                        Maine , Syracuse University , University of Maryland ,  University of
                        North Carolina at Chapel Hill, University of Louisville  , Great Lakes
                        EFC at Cleveland State University , New Mexico Institute of Mining
                        and Technology , California State University at Hayward , and Boise
                        State University . These centers have proven effective vehicles for
                        promoting innovative environmental financing techniques. While EPA
                        provides seed funding for EFC start-up operations, financial
                        independence of the centers is a major objective.

                                          SERVICES AND CAPABILITIES

                              EFCs pursue various avenues of education and training such
                        as offering short courses on environmental finance for state and local
                        officials, as well as graduate-level educational courses through
                        regular university curriculum. The EFCs at both the New Mexico Tech
                        and the University of Maryland have developed environmental finance
                        courses for state and local officials and graduate students. Similarly,
                        the University of North Carolina EFC is developing a modular
                        environmental finance training course for use by the Network. The
                        New Mexico Tech  EFC provides U.S./Mexican Border Area
                        environmental infrastructure assistance and  assessment, and the
                        Boise State University EFC is providing training throughout the
                        national EFC  Network on utility rate setting. In addition, EFCs develop
                        and publish case studies about innovative financing techniques, as
                        well as serve  as clearinghouses for Regional and state information on
                        environmental financing and program management.

                              EFCs provide technical assistance and analyses to state and
                        local governments and the private sector on  managing and financing
                        environmental infrastructure. For example, the Syracuse University
                        EFC is developing case studies on how New  York communities
                        prioritize environmental activities using risk and finance
                        considerations. Another important service the Syracuse EFC
                        provides is assisting state and local officials  in collaborative planning
                        processes. The New Mexico Tech EFC continues to develop financing
                        strategies for the long-term viability of environmental infrastructure
                        on the U.S.-Mexico border. The California State University at Hayward
                        EFC is dedicated to helping small business by advancing the
                        Environmental goods and services industry and promoting polluting
                        prevention. Among its primary products are the development of
                        public-private partnership models for financing environmental
                        services, emphasizing the participation of small and medium sized
                        businesses. The Great Lakes EFC is focusing on brownfield
                        redevelopment, especially the availability of financing and
                        tools/incentives to spur investment in abandoned industrial and
                        commercial sites. In addition, the Great Lakes EFC is helping Native
                        American communities in Great Lakes states restore ecological
                        balance through the appropriate  use of comprehensive community
                        planning, sustainable development, and ecological design
                        techniques. The University of Maryland EFC conducts problem-
                        solving roundtables known as "charrettes" with community
                        representatives to discuss how to pay for environmental services,
                        mandates and projects. The EFC at Boise State University is
                        analyzing drinking water and wastewater systems viability and paying
                        for environmental mandates.
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                              Finally among our newer EFCs, the EFC at the University of
                        North Carolina is designing a finance training course for Network use
                        and is completing a report on wastewater and growth issues in the
                        southeast coastal region of the country. The other Region 4 EFC,
                        located at the University of Louisville, is providing support services
                        to many small and medium-sized water and wastewater facility
                        operators throughout Kentucky. The most recent addition to the
                        Network is the EFC at the University of Southern Maine, which is
                        currently focusing on wastewater treatment challenges in coastal
                        areas of Massachusetts.
                                         • EFC Brochure in PDF Format.
                        For more information, contact:
                        Vera Hannigan
                        Environmental Finance Program Center Network Coordinator
                        hannigan.vera@epa.gov
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                                        Last updated on Wednesday, August 3rd, 2005
                                         URL: http://www.epa.gov/efinpage/efc.htm
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                                   (AS. Environmental Protection Agency
                    Environmental  Finance  Program                )
                    Contact Us Print Version   Search: |
 EFP Overview

 What's New?

 Frequently Asked
  Questions (FAQs)

 Contact EFP

 Environmental
  Financial Advisory
  Board (EFAB)

 Environmental Finance
  Center Network

 Environmental
  Financing Information
  Network (EFIN)

 Guidebook of
  Financial Tools

 Environmental
  Financial Tools

 EFP Publications

 Funding Sources

 Ask a Question
EPA Home > Chief Financial Officer > Environmental Finance Program > Environmental Financial
Advisory Board (EFAB)

Environmental Financial Advisory Board
(EFAB)
                          What is EFAB?

   EFAB is the Environmental Financial Advisory Board. It provides
   advice to the Environmental Protection Agency's Administrator and
   Program Offices on "how to pay" questions for environmental
   protection.

      •  Purpose
      •  Description, History and Background
                       Who is on the Board?

   EFAB is a federally chartered advisory committee. Click here for a list
   of current Environmental Financial Advisory Board Members . The
   Board operates under the Federal Advisory Committee Act.
    t:\ITtl it L-liimrr>
                           What's New?
                            The Environmental Finance Advisory Board's Strategic Action
                            Agenda. Fiscal Years 2005-2006 is now available online.
                            (PDF) (July 2005)
                                            NEW
                            The Environmental Protection Agency's response (July 2005)
                            to the Environmental Finance Advisory Board's letter report
                            "Combined Operations of the Clean Water and Drinking Water
                            State Revolving Loan Funds (SRFs):" 1) Cover letter, 2) White
                            Paper, to Stephen L. Johnson, Administrator, is now available
                            online. (PDF) (May 2005)  NEW

                            The Environmental Financial Advisory Board's Summer 2005
                            full Board meeting will be held August 15-16, 2005 in San

                            Francisco, CA NEW

                            The Environmental Finance Advisory Board's letter report
                            "Application of Innovative Finance Techniques in the
                            Transportation Infrastructure & Financial Innovation Act of
                            1998," to Stephen L. Johnson, Acting Administrator, is now
                            available online. (PDF) (March 2005) NEW

                            The Environmental Financial Advisory Board's March 2005
                            Newsletter is now available online. EFAB Newsletters are
                            meant to provide the public with updates on the progress of the

                            Board with its  projects and Strategic Action Agenda.
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                             The Environmental Protection Agency's response (April 2005)
                             to the Environmental Finance Advisory Board's "Useful Life
                             Financing of Environmental Facilities Letter and Enclosure:"
                             1) Cover letter, 2) White Paper, to Stephen L. Johnson, Deputy
                             Administrator, is now available online. (PDF) (February
                             2005) NEW

                             The Environmental Protection Agency's response (March 2005)
                             to the Environmental Finance Advisory Board's "Innovations in
                             Watershed Financing Letter Report," to Stephen L. Johnson,
                             Deputy Administrator, is now available online. (PDF) (January
                             2005) NEW

                             Presentations from the Environmental Financial Advisory
                             Board's August 2004 workshop on 'affordability' are now
                             available online. (PDFs) (March 2005) NEW

                             Exactly  how does the Environmental Financial Advisory Board
                             help to answer the "How to Pay?" question? These documents
                             can help answer your questions: (PDFs) (February 2005). NEW

                                o Environmental Financial Advisory Board (Fact Sheet),
                                o Environmental Financial Advisory Board (Brochure)

                             While supplies last, a limited number of 'A Guidebook of
                             Financial Tools' CDs are now available. To request one, e-mail
                             us.

                             The Environmental Financial Advisory Board's winter 2003 full
                             Board meeting, March 4-5, 2003, minutes are now available
                             online. (PDF)  (July 2003)
                                              EFAB Publications:

                             I: Chronological Order
                             II: By Subject
                                         EFAB Strategic Action Agenda:
                             Fiscal Years 2005-2006  (PDF)  NEH
                             Fiscal Years 2004-2005  (PDF)
                             Fiscal Years 2003-2004  (PDF)
                             Fiscal Years 2002-2003  (PDF)
                             Fiscal Years 2001-2002  (PDF)
                             Fiscal Years 2000-2001
                             Fiscal Years 1999-2000
                               Get extra help from the Guidebook of Financial Tools!

                        A primary source for tools (help) is the document A Guidebook of
                        Financial Tools produced by the Environmental Financial Advisory
                        Board and the Environmental Finance Center Network. (PDF) (April
                        1999 - most recent version)
                                                  PURPOSE
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                              Environmental legislation reauthorized or enacted by Congress
                        in recent years has placed significant additional resource
                        requirements on all levels of government, increasing their
                        infrastructure and administrative costs. At the same time, limited
                        budgets and changes in Federal tax laws have constrained traditional
                        sources of capital. Growing needs and expectations for
                        environmental protection, as well as increasing demands in all
                        municipal service areas, make it increasingly difficult for
                        governments to find the resources to meet their needs.

                              The Environmental Financial Advisory Board operates under
                        the Federal Advisory Committee Act, 5 U.S.C. App.2 [sec.] 9(c). The
                        purpose of the Environmental Financial Advisory Board is to provide
                        authoritative analysis and advice to the EPA Administrator on finance
                        issues to assist the Agency in carrying out its environmental
                        mandates.

                                  DESCRIPTION, HISTORY, AND BACKGROUND

                              The Environmental Financial Advisory Board (EFAB) was
                        chartered in 1989 under the Federal Advisory Committee Act (FACA)
                        to provide advice and analysis to EPA's Administrator on paying for
                        the growing costs of environmental protection and how to increase
                        investment in environmental infrastructure through the leveraging of
                        public and private resources. EFAB provides EPA with a cross-media,
                        intergovernmental perspective on environmental finance that
                        integrates environmental and economic goals, while emphasizing
                        cost-effective, risk-based approaches and public-private
                        partnerships. The Board has made significant contributions to EPA's
                        efforts to address the critical environmental financing challenges of
                        the 21st Century.

                              EFAB's membership includes prominent experts from all levels
                        of government, including elected officials; the finance and banking
                        communities; business and industry; and national organizations.
                        Board members meet semi-annually; the  meetings are open to the
                        public and are announced in the Federal  Register. The Board has also
                        produced a number of advisories on important environmental
                        financing issues.

                              The Environmental Financial Advisory Board has adopted three
                        environmental financing goals:

                           •  Lower the costs of environmental protection by removing
                              financial and programmatic barriers that raise costs and by
                              improving the efficiency of investments needed to close the
                              gap between limited resources and increasing mandates;

                           •  Increase public and private investment in environmental
                              facilities and services as a spur to  sustainable development,
                              job creation, productivity, and tax revenues; and

                           •  Build state and local financial capacity necessary to carry out
                              environmental mandates so that gains made to date are
                              secured and further environmental progress can be made.

                              EFAB serves a unique role, assisting the EPA in providing a
                        credible and  significant response to the increasing concerns over
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                         how to pay for federal and state environmental mandates. EFAB's
                         expertise and advice focus on cross-media financing, particularly on
                         the "how to pay" issue of environmental mandates. This is of critical
                         importance as the nation has invested billions of dollars in
                         environmental facilities and programs over the last thirty years. While
                         progress has been made, this work is far from complete.
                                  •  Download the EFAB Brochure in PDF Format.
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                                         Last updated on Tuesday, August 2nd, 2005
                                          URL: http://www.epa.gov/efinpage/efab.htm
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                                   (AS. Environmental Protection Agency
                    Environmental Finance Program                )
                    Contact Us Print Version  Search: |
 EFP Overview

 What's New?

 Frequently Asked
  Questions (FAQs)

 Contact EFP

 Environmental
  Financial Advisory
  Board (EFAB)

 Environmental Finance
  Center Network

 Environmental
  Financing Information
  Network (EFIN)

 Guidebook of
  Financial Tools

 Environmental
  Financial Tools

 EFP Publications

 Funding Sources

 Ask a Question
EPA Home > Chief Financial Officer Environmental Finance Program> Environmental Financing
Information Network (EFIN)

Environmental  Financing  Information
Network (EFIN)
                          What is EFIN?

        Purpose
        Description, History and Background
                          EFIN Contacts:

        Mailing Address, E-mail Address, Telephone Number and
        Hours
                           Using EFIN:

        EFIN Services and Outreach
        How to Access the EFIN Database
        EFIN Database - Publication and Case Study Titles
        EFIN Keyword Index
                      Tools and Publications:

        A primary source for tools (help) is the document A Guidebook
        of Financial Tools produced by the Environmental Financial
        Advisory Board and the Environmental Finance Center
        Network. (PDF) (April 1999 - most recent version)
        Environmental Finance Center Publications
        Environmental Financial Tools
        Environmental Financing Publications
                                                PURPOSE

                            The Environmental Financing Information Network (EFIN) is
                       one component of the Environmental Finance Program (EFP). The
                       objectives of the Environmental Finance Program are to promote
                       ways to manage the costs of environmental services, to build state
                       and local capacity, increase investment in public and private
                       environmental infrastructure, build partnerships, encourage
                       environmental justice, and lower costs.

                            The purpose of the Environmental Financing Information
                       Network is to provide information on financing alternatives for state
                       and local environmental programs and small businesses. To
                       accomplish this goal of information exchange, the EFIN Center
                       maintains an online database containing abstracts of publications,
                       case studies, and contacts; operates an infoline; and distributes EPA
                       documents on the topic of environmental financing published by the
                       Environmental Finance Program , the Environmental Financial
                       Advisory Board (EFAB) and the Environmental Finance Centers
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                        (EFCs). The EFIN center also manages the Environmental Finance
                        Program's Web site at: http://www.epa.gov/efinpage.

                                   DESCRIPTION, HISTORY, AND BACKGROUND

                              The Environmental Financing Information Network (EFIN)
                        provides essential information services needed by state, sub-state,
                        municipal and EPA officials and small business owners involved in
                        funding environmental programs and projects. These information
                        services include maintaining the EFP Web site and the EFIN
                        database, which are the main methods for disseminating information
                        on environmental financing altermatives; an infoline that provides
                        referrals and assistance with locating environmental financing
                        information, and distribution of EPA publications on the topic of
                        environmental finance. The EFIN database is a collection of abstracts
                        representing publications and other relevant materials (articles, case
                        studies, guides, legislation, handbooks, memoranda,  reports,
                        proceedings, surveys, papers) that deal with environmental financing.
                        In addition to the basic descriptive information and abstract provided
                        for each publication, each record also includes information on how to
                        obtain the publication described, as well as a point of contact for
                        further reference.

                              The Environmental Financing Information Network (EFIN) is
                        managed by the EPA's Environmental Finance Program (EFP),
                        located in the Office of the Comptroller within the Office of the Chief
                        Financial Officer.

                              The Environmental Finance Program is responsible for three
                        major activities:

                           •  Managing the Environmental Financing Information Network;
                           •  Managing the Environmental Finance Center Network ,
                              whose regional centers are located at universities around the
                              country; and
                           •  Managing the activities of the Environmental Financial
                              Advisory Board (EFAB).

                              The EFIN Center serves the Environmental Financial Advisory
                        Board by abstracting their reports and advisories for the EFIN
                        database and uploading their publications on the Web site. The EFIN
                        Center also supports the Environmental Financing Centers by
                        providing a central focal point for these regional centers, linking them
                        together and allowing them to share information on lessons learned
                        and financing techniques. This includes maintaining contact
                        information for the EFCs on the Web site and uploading some of their
                        publications, such as the Annual Reports.

                              The Environmental Finance Program assumed the management
                        of EFIN in January 1993. The EPA's Office of Water initially had
                        established EFIN in October 1991, as part of EPA's efforts to improve
                        state and local government capacity to implement environmental
                        programs and projects. A number of programs participated in the
                        planning and development of EFIN -the State Revolving Fund,
                        Environmental Finance Program (e.g., public-private partnerships),
                        Small Community Outreach and Education (SCORE),  Drinking Water,
                        Solid Waste, Air, and Superfund - as much financing information is
                        general and can be applied across programs and media.
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                                  • Download the EFIN Brochure in PDF Format.
                          MAILING ADDRESS, E-MAIL ADDRESS, INFOLINE NUMBER, AND
                                                   HOURS

                        Contact the EFIN Center:

                        US EPA
                        Environmental Financing Information Network, (Mail Code) 2731R
                        Ariel Rios Building
                        1200 Pennsylvania Avenue, N.W.
                        Washington, D.C 20460

                        Web site: http://www.epa.gov/efinpage/

                        Electronic mail: efin@epa.gov

                        Infoline: (202) 564-4994

                        FAX: (202) 565-2587

                        Hours: 8:30am -5:00pm (eastern standard time) Monday-Friday

                        Sponsoring Office: Environmental Finance Program, Office of the
                        Comptroller, Office of the Chief Financial Officer, U.S. EPA

                        Project Officer: Vera Hannigan
                        hannigan.vera@epa.gov
                        Internet Librarian: (ASRC Aerospace Corp., contractor)
                        efin@epa.gov
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                                         Last updated on Monday, March 21st, 2005
                                         URL: http://www.epa.gov/efinpage/efin.htm
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