Funding Resources for Green Infrastructure
Numerous resources are available for funding green infrastructure projects, including federal and state government programs, local funding mechanisms, and private sector investments. Many of these opportunities have emerged in response to the growing recognition of green infrastructure's multiple benefits and the need for new financial models.
Federal and state government funding
Environmental Protection Agency (EPA): The EPA offers several grant programs, including the Section 319 Nonpoint Source Program, the National Estuary Program (NEP), and the Urban Waters Small Grants Program. The EPA also provides resources like the Water Finance Clearinghouse, a database of financial assistance sources, and technical assistance programs like WaterTA.
Federal Emergency Management Agency (FEMA): The Hazard Mitigation Grant Program (HMGP) can fund green infrastructure projects that mitigate the risks of future disasters, such as flooding. The Building Resilient Infrastructure and Communities (BRIC) grant is another source from FEMA.
Department of Housing and Urban Development (HUD): Community Development Block Grants (CDBG) can be used for green infrastructure projects that support affordable housing, neighborhood stabilization, and economic development. The Section 108 Loan Guarantee Program can also be used to guarantee loans for these projects.
Department of Transportation (DOT): The Transportation Alternatives Program (TAP) provides funding for projects like off-road trails and sidewalks, which can include green infrastructure features.
U.S. Department of Agriculture (USDA): The Rural Development Water and Environmental Programs (WEP) offer financing and technical assistance for green infrastructure in communities with populations of 10,000 or less.
Clean Water and Drinking Water State Revolving Funds (SRFs): These federal-state partnerships provide low-cost financing for a wide range of water quality and infrastructure projects, including many green infrastructure installations.
Local government funding and mechanisms
Stormwater Utility Fees: Some local governments establish dedicated stormwater fees for properties, with the revenue supporting a city's green infrastructure program.
Green Bonds: Municipalities can issue green bonds to finance environmentally beneficial projects, which may attract investors interested in environmental, social, and governance (ESG) factors.
Permit Fees: Fees assessed on new construction or development can be used to generate revenue for green infrastructure.
Innovative Financing: Some cities use financial benefits derived from green infrastructure—such as increased property values or reduced public health costs—to capture revenue that can help fund projects.
Private and public-private partnerships
Private Credit and Investment: Private markets, including private credit, private equity, and venture capital, are playing an increasing role in financing green investments and innovative environmental technologies. Private entities may invest in green infrastructure projects through public-private partnerships (P3s), potentially reducing costs and expediting project delivery.
Community-Based Public-Private Partnerships (CBP3s): This model brings together local governments and private entities for large-scale green stormwater infrastructure projects. CBP3s can leverage private investment to expand project scope and share financial risk.
Impact Investing: Private investors focused on environmental impact can support green infrastructure; especially natural capital projects related to biodiversity and sustainable land use.
Corporate Partnerships: Some corporations engage in green infrastructure projects as part of their environmental initiatives. For example, tax incentives can be used to support private companies integrating green infrastructure, such as green roofs, into their operations.