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## St **ate of W** **ate r In**  **fr as** **tructur e**  **in the US -**  **Me xico Bor**  **der Re**  **gion –**  **Funding Re**  **sour ces**  Dev elopmen t and Certification of En vir onmen ta l Infr as tructur e Pr ojects **Good Neighbor Envir onmental**  **Boar d**  June 28, 2012 Bor der Envir onment Cooper ation Commission

### US **– Mexico Border**  **Environment Cooperation**  **Agreement**

“Pr eser ve , pr otect, and enhance US - MX bor der r egion by iden tifying, dev eloping, implemen ting and ov er seeing **en vir**  **onmen ta**  **l infr as** **tructure projects. ”**  A pr oject that will “pr event, contr ol or r educe en vir onmen ta l pollutants or contaminants, impr ove the drinking water supply , or pr otect flor a and fauna so as to impr ove human health, pr omote sus ta inable dev elopmen t, or contribute to a higher quality of life.

**Projects certified by the BE CC ar** **e financed by the NADB or other institutions**  **Border Environment**  **Cooperation Commission**  **(BECC) North American Development Bank (**  **NADBank )** **Jurisdiction 100 km north**  **(population 13.9**  **million) and 300 km south**  **(population 16.6 million)**  **of the international**  **boundary .**  **Pr ojects bey** **ond these ar eas ma**  **y be eligible if they r** **emedy a cr** **oss**   ** bor****der envir** **onmental or health**  **pr oblem.**  **BASIC SE CT** **OR S**  • **Wa ter pollution**  • **Wa stewater**  **treatment** • **Wa ter**  **conservation** • **Municipal solid**  **waste** • **Industrial and**  **hazardous waste**  • **Recycling and**  **waste reduction EXP**  **ANDED SE CT** **OR S**  • **Air quality**  • **Clean and**  **efficient energy**  • **Public transportation**  • **Municipal planning**  **and development**  • **International border**  **crossings** • **Energy transmission / distribution**  **of energy** • **Production of goods**  **/ services**  **to enhance**  **or protect**  **the environment, if**  **the project provides**  **a net environmental**  **benefit to the**  **region** • **Other infrastructure**  **designed to**  **minimize future**  **negative environmental**  **impacts in**  **the region**  

### BECC Overview **– Mandate**  **Scope California,**  **14 $ 254.66**  **Ariz ona,**  **16**

**$ 168.11**  **New Me** 

**xico ,**  **9 $**  **67.74 Te** 

**xa s,**  **50 $**  **847.28** 

### 89 **in U.S.**  **$ 1,337.79**  

### 105 **in México**  **$ 2,979,70** 

**Sonora, 27**  **$ 559.43**  **Coahuila, 3**  **$ 156.60 Nuevo**  **León, 5** 

**$ 105.71**  **Baja California,**  **30 $**  **1,192.16 Ta** **maulipas, 16**  **$ 623.80** 

### Certified Projects (US$M)

**Chihuahua, 24**  **$ 342.02**  **CERTIFIED PROJECTS**  **194 TO**  **TA L INVESTMENT**  **(BD) $4.317**  **NADB FINANCED PROJECTS** * **152 NADB**  **FINANCING*** **(BD) $1.326**  **POPULA TION BENEFITED (M**  **) 13.8** 

***Only contracted agreements are included, not total approvals.** 

### Technical **Assistance and Training**  **California $**  **2.72 Arizona** 

**$ 4.42**  **New Me** 

**xico $**  **4.32 Te** 

**xa s**  **$ 13.72** 

**Sonora $**  **3.82 Coahuila** 

**$ 1.32**  **Nuevo León**  **$ 0.51**  **Baja California**  **$ 2.31**  **Chihuahua**

**$ 3.01**  **Ta maulipas** 

**$ 4.04**  • **201 1:**  **US$1.00 million -**  **(19 projects,**

**21% BECC T**

**A)** • **1995 -**  **201 1:**  **PDAP/COCEF -**  **US$40.34 million**  • **72 communities**  **in Mexico:**  **US$15.01 million**  • **90 communities**  **in US**  **: US$25.33**  **million** • **More than US$34 million**  **in PDAP**  **technical assistance grants**  **for project**  **development in**  **155+ communities.**  • **Approximately 85% of these**  **funds have led to projects already**  **implemented or under**  **development. 2011**  **Tr aining**  **5 events**  ( **Solid W aste W** **orkshop in Hermosillo,**  **Sonor a and R**  **eynosa, T**

**amaulipas; W ater and**  **Wa stewater T** **ra ining in Sonor** **a; Second and Thir d**  **Modules of the Stat e Climat**  **e Action Plans Wo**  **rkshop** ) • **325 atte**  **ndees** • **US $130,000**  **investment Tr** **aining events**  **supported by EP A, TCEQ,**  **Conagua, INE and SEMARNA T** **Te ch**  **nical Assistance and T ra**  **ining**



### 17 **Solid Wa**  **ste Management 2.9**  **million** residents with improved waste collection and disposal services, resulting in the capacity to properly dispose of **1,550 tons of**  **waste per day .**  

### 25 **Wa ter Conservation**  Estimated annual water savings of **330 MGD (456 million m**  **3 /year)**  . As a comparison, this quantity is suf

ficient to serve the average drinking water demands of **4 million people**  . 

### 90 **Wa ter and W** 

**astewater** Providing improved drinking water treatment/distribution as well as wastewater collection/ treatment for the benefit of more than **12 million border residents**  , most significantly impacted by new capacity to eliminate more than **400 MGD** ( **17.5 L/sec** ) of untreated or inadequately treated sewage. 

### 13 **Air Quality Projects**  **8.0 million** residents benefited from reduced exposure to air pollution from vehicular traf fic on unpaved streets. Approximately **200,000 tons per year of PM 10**  anticipated to be eliminated . 

### Social and **Environmental Benefits** 

**9 Energy**  Of fset demands of traditional fossil - fuel based energy production, avoiding nearly **1.7 million**  **metric tons of CO**  **2 -**  **eq per year**  .

# N **E E**  **D INVESTMENT**  **20 Drinking**  **Wa ter**  **Tr eatment**  **Plants &**  **32 Drinking W** **ater Distribution**  **Systems 54**  **Wa stewater**  **Tr eatment**  **Plants &**  **74 Wa**  **stewater Collection Systems**  **16 Landfills built or expanded**  **& 16**  **Sub -**  **standard Dumpsites**  **closed 26,964,000**  **Squared Meters Paved**  

## Input/Outcome Snapshot 

# R **E S**  **U L**  **T**

### GNEB **14 th**  

### Report **- Energy**  **Re newable Energy**  **– Certification and Financing**  • Since June 2011, 7 re newable energy pr ojects appr ove d (4 solar/3 wind; 1 MX/6 US) • All US pr ojects ha ve been supported by Feder al incentiv e pr ogr ams – gr ant pr ogr am or tax credits • 2 additional energy pr ojects submitte d to boar d ( 1 solar/1 wind; 2 US) • 5 + in the 2012 pr oject pipeline. **Ener gy**  **Ef ficiency**  • 2012 BECC TAfocused on water utility energy audits • Local US utilities – pr eliminary audits with s taff tr aining • US AID funding application – Baja California • PD AP - committe d sour ces fo r w ate r/energy audits; points awarded for sus ta inable dev elopmen t elemen ts; and consider ation of gr een building guidelines r equir ed **Broader Mandate Interpretation** – Energy tr ansmission/dis tribution

### State of Water Infrastructure



## • Needs Assessmen ts

• BE CC/NADB Funding Pr ogr ams • Lever aging R esour ces • In ve st men t Str ate gies

### Needs **Assessments**

### Infrastructure **Needs –**  **MX**

### Needs **Assessment -**  **US**

12 • Cost per Household Connection Assumptions

– Rural DW Hook - up - $7,400

– Rural WW Connection - $12,000

### BECC / NADB **Funding Programs**  **US -**  **Me xico**  **Bor der Progr** **am EP**  **A -**  **funded** Pr ogr am for W ater and W as tewater Pr ojects. Pr ovide assis tance to communities located in the bor der region thr ough: **Pr oject Development Assistance Pr** **ogr am**  ( **PD AP**  ) adminis tered by BECC, pr oviding gr ants for the technical dev elopment of pr ojects **Bor der Environment Infr** **astructur e Fund**  ( **BEIF** ) adminis tered by NADB fo r cons truction assis tance. BEIF cons truction gr ant funds are intended to supplement other sour ces in or der to make a pr oject affor dable to its user s . **Eligibility Requir**  **ements include**  : • 100 km (62 miles) north or south of the US - Me xico bor der • US - side Benefit (pr ojects in Mexico must be located in a community adjacent to the bor der or pr ovide a wate r quality benefit to the US) • Local or dinances to pr event the development of ar eas or new facilities which lack appr opriate water/wastewater infr as tructur e

### BECC / NADB **Funding Programs**  **US -**  **Me xico**  **Bor der Progr** **am**

Adverse Human Health Effect ? **Project Application**  Define project based on conditions to be addressed

Category 3 Immediate Adverse Environmental Effect or Potential Adverse Human Health Effect? Risk to Human Health or Environment?

Category 2 **Category Evaluation**

**NO YES**  Category 1 **NO**

Prioritiz at ion Pr ocess Methodology

Ranking P ar amet er E valuation

**YES YES** 

### BECC / NADB **Funding Programs**  **NADB’ s**  **Loan Progr ams**  fo r construction of all eligible sector s including wate r, wastewater , solid waste, air quality

, and energy. Includes Bank’ s role as financial & institutional advisor and as in ve st men t banker

. • Lev er ag ed with special bond pr ogr ams – Build America • Wa te r Tra nsmission/Storm W ate r – El P aso , TX • Priv ate and Priv ate – Public P artner ships **Community Assist ance Pr**  **ogr am**  (CAP) – Funding priority fo r water , wa stewate r, a nd solid waste pr oject fo r economically - dis tr essed communities; $500,000 maximum gr an t. **Te chnical**  **Assist ance Pr**  **ogr ams**  fo r all sector s BECC and NADB ma y pr ovide gr an t assistance to pr oject sponsor s for ins titutional st re ngthening and pr oject dev elopmen t s tudies .

### BECC / NADB **Funding Programs**  **Institutional Capacity Building:**  BECC and NADB pr ovide tr aining to pr oject sponsor s for ins titutional s tr engthening thr ough Sector workshops and Utility Management Institute . • **BE CC T** 

**echnical Services during Pr**  **oject Developmen t**  A BECC Pr oject Manag er w orks with pr oject sponsor s t o build capacity during all phases of the dev elopmen t pr ocess, including dev eloping scopes of work, r eviewing deliv er ables, cr ea ting and monitoring pr oject schedules, and coor dinating with agencies and s ta ke holder s. **Bor der**  **2012 and Special Gr an**  **ts** (EP A - funded Pr ogr am): Addr ess Bor der 2012 objectiv es • Pr e - pr oject epidemiological baseline s tudy – Va lle de Juar ez • Los Alisos WWTP – Solar

### Leveraging **Resources BEIF has e**  **xperienced a lever aging strength of more than $2.00 of**  **other sour ces t**  **o every $1.00 of BEIF .**  **The t ot**  **al in vestment represented by projects with BE**  **CC Certification reflect a lever** **aging r atio of at least $3.00 of other**  **sour ces t**  **o every $1.00 financed by NADB. An E** **ff ective Niche f** **or BE CC:**  **Appro ximately**  **85% of**  **the mor e than $40M in t**  **echnical a**  **ssistance funds off er**  **ed by BE CC**  **ha ve led t**  **o pr ojects alr**  **eady implemen**  **te d or**  **curr en**  **tly under developmen t.**  **Completing project developmen t t**  **ask s such as pr**  **eliminary engineering**  **, en vir**  **onmen ta**  **l clear ance,**  **and final design pr ovide**  **gr ea**  **te r access t**  **o construction funding opportunities.**

### Leveraging **Resources Critical US**  **Funding P artner**  **s include: USD** **A / Rur al Developmen**  **t** • As a major funding partner in ev ery US St ate , USD A/RD and BECC shar e a similar clien t base – small, rur al, economically dis tr essed communities. • Ideal funding partner ship: BECC supports sponsor to dev elop PER and en vir onmen ta l documen ts which is r equir ed for funding consider ation by USD A/RD . • Po te nt ial gr an t funds fr om BEIF ma y not decr ease loan re quir emen t. • Challeng es in finding compatibility fo r combining sour ces for construction tasks – USD A/RD pr efer s to separ ate pr oject in to independen tly funded s ta nd - alone tasks

### Leveraging **Resources Critical US**  **Funding P artner**  **s include: St**  **ate Gr** **an t Progr** **ams** • Te xa s W ate r Development Boar d (TWDB) - Economically Dis tr essed Ar eas Pr ogr am (ED AP ) including Planning, Acquisition, and Design (P AD) opportunities. • NM Colonias Infr as tructur e Fund Pr ogr am, including planning and design awar ds. • Community Dev elopmen t Block Gr an ts – HUD • AZ W ate r Infr as tructur e Finance Authority (WIFA) Planning and Design Gr an t Pr ogr am **St ate**  **Revo lving**  **Loan Funds** • Bette r than market - rate l oans. • Subsidies a va ilable for disadv an ta ge d communities. • Gr een pr oject r eser ve s

### Investment **Strategies** • Suf ficien t In ve st men t in Planning • Needs Assessments • Field Surveys for targeted areas • Improved State Data Collection and Management Systems • Quantification of Rehabilitation and Replacement Needs • Mas ter Plan In ve st ments • On - going inter - agency coor dina tion and pr ocess st re am - lining • Self- sus ta ining Utilities: Impr oved resource management, reduced oper at ional cos ts, and GHG r eductions • Green Building - Plan, Design, and Build smart and efficient • Wa ter/Energy Ef

ficiency - Audits • Alternative sour ces of energy – Self supply / R enew able Energy • Enhanced Ra te Structur es / Connecting Households • Capacity building (ins titutional s tr engthening) a t all lev els – “Bes t pr actices ” • New and Lev er ag ed Pr ogr am R esour ces • **US -**  **Me xico Bor**  **der W ate**  **r Infr astructur** **e Progr am**  **– Incr**  **eased funding and pr** **e -**  **prioritiz at**  **ion re**  **serv e**  **fo r early planning**  • St ate and Feder al Pr ogr am Enhancement**Contact:** Maria Elena Giner, P.E. General Manager **mginer@cocef.org** Renata Manning - Gbogbo Projects Director **rmanning@cocef.org COCEF**  , Ciudad Juárez , Chih ., Mexico  (656) 688 - 4600