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Strategies and Financing Opportunities for Airport Environmental Programs (2011)

Chapter: Chapter Five - Regional, Local, and Nongovernmental Funding Opportunities

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Suggested Citation:"Chapter Five - Regional, Local, and Nongovernmental Funding Opportunities." National Academies of Sciences, Engineering, and Medicine. 2011. Strategies and Financing Opportunities for Airport Environmental Programs. Washington, DC: The National Academies Press. doi: 10.17226/14567.
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Suggested Citation:"Chapter Five - Regional, Local, and Nongovernmental Funding Opportunities." National Academies of Sciences, Engineering, and Medicine. 2011. Strategies and Financing Opportunities for Airport Environmental Programs. Washington, DC: The National Academies Press. doi: 10.17226/14567.
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Suggested Citation:"Chapter Five - Regional, Local, and Nongovernmental Funding Opportunities." National Academies of Sciences, Engineering, and Medicine. 2011. Strategies and Financing Opportunities for Airport Environmental Programs. Washington, DC: The National Academies Press. doi: 10.17226/14567.
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Suggested Citation:"Chapter Five - Regional, Local, and Nongovernmental Funding Opportunities." National Academies of Sciences, Engineering, and Medicine. 2011. Strategies and Financing Opportunities for Airport Environmental Programs. Washington, DC: The National Academies Press. doi: 10.17226/14567.
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Page 200
Page 201
Suggested Citation:"Chapter Five - Regional, Local, and Nongovernmental Funding Opportunities." National Academies of Sciences, Engineering, and Medicine. 2011. Strategies and Financing Opportunities for Airport Environmental Programs. Washington, DC: The National Academies Press. doi: 10.17226/14567.
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Page 201
Page 202
Suggested Citation:"Chapter Five - Regional, Local, and Nongovernmental Funding Opportunities." National Academies of Sciences, Engineering, and Medicine. 2011. Strategies and Financing Opportunities for Airport Environmental Programs. Washington, DC: The National Academies Press. doi: 10.17226/14567.
×
Page 202
Page 203
Suggested Citation:"Chapter Five - Regional, Local, and Nongovernmental Funding Opportunities." National Academies of Sciences, Engineering, and Medicine. 2011. Strategies and Financing Opportunities for Airport Environmental Programs. Washington, DC: The National Academies Press. doi: 10.17226/14567.
×
Page 203
Page 204
Suggested Citation:"Chapter Five - Regional, Local, and Nongovernmental Funding Opportunities." National Academies of Sciences, Engineering, and Medicine. 2011. Strategies and Financing Opportunities for Airport Environmental Programs. Washington, DC: The National Academies Press. doi: 10.17226/14567.
×
Page 204
Page 205
Suggested Citation:"Chapter Five - Regional, Local, and Nongovernmental Funding Opportunities." National Academies of Sciences, Engineering, and Medicine. 2011. Strategies and Financing Opportunities for Airport Environmental Programs. Washington, DC: The National Academies Press. doi: 10.17226/14567.
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197 INTRODUCTION The study process did not identify any local or regional gov- ernment funding opportunities specifically for airport environ- mental initiatives. Regional nonprofit, public policy entities and regional planning agencies have participated in vehicle emission reduction and AFV programs. Some airports have received assistance from private for-profit firms to support AFV programs as well. In addition, local and regional utility companies offer a vari- ety of financial assistance and incentive programs to encourage reduction of fossil fuel-based energy consumption. Assistance for energy efficiency measures and the development of renew- able energy alternatives is offered. During the process, a small number of individual charitable foundations were identified as potentially providing funding for environmental initiatives. However, the scope of their funding activities (in terms of funds provided and types of projects funded) could not always be precisely determined. Local or regional planning agencies may also be a source of funding (directly or as a pass-through from other agencies). The scope of this synthesis did not permit an investigation of potential funding opportunities from these sources. However, it is believed that information from these organizations would be readily available to airports within the individual planning agencies’ jurisdiction. This chapter summarizes the findings outlined previously. A brief discussion of general considerations is provided fol- lowed by a discussion of the individual funding sources. A matrix of funding opportunities is then presented in Table 3. Information from this table was derived from web searches (primarily from state government sites) and from interviews to support the case examples in chapter six. GENERAL CONSIDERATIONS • Nongovernmental funding for emission and energy reduction initiatives—For both fixed energy source emis- sions and vehicle emissions, nongovernmental entities are a significant source of funding. As noted previously, many utility companies pro- vide incentives for reduction in fossil fuel consumption. Incentives are provided for equipment that increases effi- ciency of traditional electrical and heating, ventilation, and air conditioning (HVAC) systems or equipment to supply energy needs through renewable energy. The latter can include geothermal HVAC or water heating, solar power for electrical power, HVAC or water heat- ing, and wind power. However, the FAA has estab- lished standards for approach protection that could be impacted by solar or wind projects. Coordination with the FAA will ensure that these projects do not conflict with FAA standards. Incentives can include rebates on the cost of equipment or utility rate reduction. For renewable energy initiatives, some utilities will execute contracts to purchase any energy generated in excess of the airport’s needs. • Guaranteed Energy Savings Contract—Another device to assist in funding energy efficiency initiatives is the GESC, which is the result of a collaborative process between a facility owner, such as an airport, and an ESCO. The following steps are included in the process. 1. The ESCO conducts a comprehensive energy analy- sis or audit of the facilities and develops recommen- dations to improve energy efficiency or otherwise reduce energy consumption. 2. The ESCO develops a GESC offer in which it (1) esti- mates the energy costs savings that will be achieved if the recommendations are followed, (2) guarantees that the savings will be obtained if the ESCO is retained to implement the recommendations, and (3) agrees to be compensated for its work in imple- menting the recommendations through the energy savings achieved by the facility owner. 3. The ESCO and facility owner execute the GESC. The financial benefit to an airport in a GESC is what would have been a capital cost of investing in the equipment to implement the recommendations can now be recovered as an O&M expense, pre- serving the airport’s debt capacity. Another signifi- cant benefit is that through the guarantee the ESCO assumes the risk if the projected energy savings are not realized. Despite the benefits, some airports have elected to adopt the basic funding premise of the GESC— financing the capital improvements for energy savings through the reduction in energy consumption— without the use of a GESC. The airports may con- duct the energy audit in-house or retain the ESCO to CHAPTER FIVE REGIONAL, LOCAL, AND NONGOVERNMENTAL FUNDING OPPORTUNITIES

Entity Program Project Description/Project and Applicant Eligibility Guidance and Contact Information Funding Description, Matching Requirements, Funding Limits Timeline Application Process Administrative and Post-Grant Requirements Notes Getty Conservation Institute Conservation grants Projects for development of conservation plans Implementation projects for preserving a buildingís historic structure and fabric http://www.getty.edu/conse rvation/institute/ The Getty Conservation Institute (310) 440-7325; gciweb@getty.edu Grants South Florida Water Management District (SFWMD) Water Savings Incentive Program (Water SIP) Funding for local programs for water savings hardware or technology, including: • Indoor plumbing retrofits • Automatic fire hydrant flush devices • Rainwater harvesting • Pre-rinse spray devices for commercial kitchens Eligible applicants— Local governments, public utilities, commercial and industrial facilities http://www.sfwmd.gov/port al/page/portal/levelthree/wa ter%20conservation#sip June 21 http://www.sfwmd.gov/port al/page/portal/xrepository/ sfwmd_repository_pdf/fy20 11%20watersip%20informa tional%20seminar.pdf Rupert Giroux (561) 682- 2532; rgiroux@sfwmd.gov Local match—50% Maximum grant— $50,000 Minimum project cost—$15,000 June 21— solicitation released July 22—proposals due August 24— selection committee meeting September 9 Governing Board selection meeting October 1—grant agreements to applicants November 30— agreements executed August 31— projects completed Projects evaluated by five-member SIP Selection Committee All projects must provide 0.5 million gallons in savings per year Application must document financial commitment Payments on reimbursement basis after completion of entire project. All expenditures must be documented Quarterly progress report Final report Project Performance Tracking Report TABLE 3 REGIONAL, LOCAL, OR NONGOVERNMENTAL ENVIRONMENTAL FUNDING OPPORTUNITIES (Table 3 continued on the next page)

SFWMD Board makes final selections Georgia Power Solar Buyback Program Georgia Power buys power generated by photovoltaic systems. Rate per kilowatt hour is higher than rate for conventional power buyback Residential and commercial customers eligible http://www.georgiapower.c om/spotlightsolar/solar_cus tomers.asp http://www.dsireusa.org/inc entives/incentive.cfm?Incen tive_Code=GA46F&re= 1&ee=1 Payment of 17 cents per kilowatt hour Customer must also sell renewable energy credits to Georgia Power Tennessee Valley Authority (TVA) Generation Partners Program TVA buys power generated by alternative technologies including solar, wind, hydro, biomass, and landfill gas http://www.dsireusa.org/inc entives/incentive.cfm?Incen tive_Code=GA03F&re= 1&ee=1 http://www.tva.com/greenp owerswitch/partners/ Payment of 12 cents above retail rate for solar power; 3 cents above retail rate for other sources Also $1,000 up- front payment to help pay for systems Customer must also sell renewable energy credits to TVA CALSTART Clean transportation programs and advocacy Coordinated applications for three California airports for DERA grants Website included link to California Hybrid Truck and Bus Voucher Incentive Program (HVIP) (fully subscribed) Other incentive programs are also listed http://www.calstart.org/Ho mepage.aspx N/A N/A N/A CALSTART does not provide funding, but has coordinated funding requests Surdna Foundation N/A Grants to nonprofit organizations to support sustainable http://www.surdna.org/ http://www.surdna.org/gran FY 2010 environmental grant range: Continuous application process, but grants awarded Information not available Partnering would be required for an Entity Program Project Description/Project and Applicant Eligibility Guidance and Contact Information Funding Description, Matching Requirements, Funding Limits Timeline Application Process Administrative and Post-Grant Requirements Notes Table 3 continued (Table 3 continued on the next page)

environments and strong local economies ts/grants-overview.html Surdna Foundation: 212- 557-0010 $40,000–$450,000 FY 2010 community revitalization grant range: $15,000– $300,000 in February, May, and September. Foundation needs 3–4 months to review On-line application process preferred Foundation accepts letters of interest, as precursor to full application airport to access funds Various Minnesota utilities Energy rebates Rebates (rate reductions) to residential and commercial customers undertaking initiatives to reduce energy consumption or increase use of renewable energy http://www.dsireusa.org/inc entives/index.cfm?re=1&ee =1&spv=0&st=0&srp=1&s tate=MN (lists utilities participating in program with web links) Rebates (rate reductions) Varies Varies State website provided a link to the DSIRE web page for Minnesota utilities Various Minnesota utilities Energy efficiency grants Projects to increase energy efficiency Eligible applicants— Commercial and industrial customers http://www.dsireusa.org/inc entives/index.cfm?re=1&ee =1&spv=0&st=0&srp=1&s tate=MN (lists utilities participating in program with web links) Grants Varies Varies State website provided a link to the DSIRE web page for Minnesota utilities Various Minnesota utilities Energy efficiency loans Projects to increase energy efficiency Eligible applicants— Commercial customers http://www.dsireusa.org/inc entives/index.cfm?re=1&ee =1&spv=0&st=0&srp=1&s tate=MN (lists utilities participating in program with web links) Loans Varies Varies State website provided a link to the DSIRE web page for Minnesota utilities Various Missouri utilities Energy rebate programs Various energy reduction initiatives http://www.dsireusa.org/inc entives/index.cfm?re=1&ee =1&spv=0&st=0&srp=1&s tate=MO (lists uti8lities participating in program with web links) Rebates Varies Varies State website provided a link to the DSIRE web page for Missouri utilities Various Missouri utilities Energy Projects to increase http://www.dsireusa.org/inc entives/index.cfm?re=1&ee =1&spv=0&st=0&srp=1&s Low interest loans Varies Varies State website provided a link to the DSIRE Entity Program Project Description/Project and Applicant Eligibility Guidance and Contact Information Funding Description, Matching Requirements, Funding Limits Timeline Application Process Administrative and Post-Grant Requirements Notes energy efficiencyefficiency loans Table 3 continued (Table 3 continued on the next page)

tate=MO (lists utilities participating in program with web links) web page for Missouri utilities Norcross Foundation Conservation Projects to support conservation Recipients primarily nonprofits Grants primarily support administrative functions Land acquisition financed primarily by low-interest loans http://www.norcrossws.org/ Foundmain.html Grants and loans Maximum grant— $10,000 Maximum loan— $250,000 Continuous Loan applications by regular mail or e-mail For loans, applicants must provide security in form or unrestricted funds or marketable security Loan term limited to one year Applicant must show habitat value of land Executed purchase of option agreement must be included with application Typical grant $5,000 Grant summaries available at listed URL Airport would need to partner with local nonprofit conservation organization to participate Bullitt Foundation Various environmental, conservation, and energy initiatives Grants Eligible applicants— 501(c)(3) nonprofits, local governments, public agencies, and tribal organizations located in Washington, Oregon, Idaho, western Montana, and coastal Alaska http://bullitt.org/grantmaking http://bullitt.org/grantmakin g/faq Bullitt Foundation 206- 343-0807; info@bullitt.org Grants Twice-yearly grant cycles March 15, September 15— Inquiries due May 1, November 1—Applications due Grants must be completed within 1 year and final report completed Applicants must complete projects and close grants before applying for new grant Links to application and reporting forms available at second listed URL Grants not provided for capital projects Summaries of prior grants available at first listed URL Links to other grant sources available at second listed URL Entity Program Project Description/Project and Applicant Eligibility Guidance and Contact Information Funding Description, Matching Requirements, Funding Limits Timeline Application Process Administrative and Post-Grant Requirements Notes (Table 3 continued on the next page) Table 3 continued

Clean Fuels Ohio Alternative fuels, emission reductions Promotes use of alternate fuels Certified Clean Cities Coalition Website describes grant programs for alternative fuel marketers Website also has links to AFV and low emission diesel funding opportunities Based on interview, coordinated grants under Clean Cities Program http://www.cleanfuelsohio. org/cms/ Various N/A N/A Link to lists of fleet funding opportunities at: http://www.clea nfuelsohio.org/c ms/index.php?o ption=com_cont ent&view=articl e&id=123&Item id=76 Ohio Environmen- tal Council (OEC) Advocacy, financial support for environmental issues Promotes greening initiatives for Ohio Based on interview, coordinated funding for retrofits of diesel equipment at Port Columbus International Airport and three municipalities http://www.theoec.org/ Ohio Environmental Council (614) 487-7506; oec@theoec.org N/A N/A N/A Per interview, filing in partnership with other entities and OEC improved rating of application Energy Trust of Oregon Various incentives for energy efficiency, renewable energy Promotes energy efficiency and renewable energy with technical assistance, cash incentives, and other support Specific programs for government entities and nonprofits http://energytrust.org/public -sector/ Energy Trust of Oregon 866.368.7878 Various incentives Listed URL has links to grant writing assistance William Penn Foundation Environmental and communities grants Funds for various activities to promote vital communities http://www.williampennfou ndation.org/info- url_nocat3569/info- url_nocat.htm Grants Two step application process Development of outputs and outcomes required to assist Foundation focuses on projects in the Greater Entity Program Project Description/Project and Applicant Eligibility Guidance and Contact Information Funding Description, Matching Requirements, Funding Limits Timeline Application Process Administrative and Post-Grant Requirements Notes Table 3 continued (Table 3 continued on the next page)

within a healthy regional ecosystem Eligibility limited to tax exempt nonprofits and public charities as defined in Internal Revenue Code However, based on application template, partnering may be permitted http://www.williampennfou ndation.org/info- url_nocat3584/info- url_nocat_show.htm?doc_i d=228820 http://www.williampennfou ndation.org/info- url3574/info-url.htm Hillary Murray (215) 988- 1830 Step 1—Letter of Inquiry Step 2—Formal proposal, based on foundation review of Letter of Inquiry For requests over $82,500, the following deadlines apply Letters of Inquiry— September 23, January13, May 19 Formal proposals— November 18, March 10, July 21 Hardcopy applications only in tracking project’s accomplishments after grant awarded Philadelphia region Detailed application instructions with additional links at third listed URL The Reinvestment Fund (TRF) Pennsylvania Green Energy Loan Fund Loans for energy conservation and efficiency improvements commercial, nonprofits and government buildings Projects can include limited energy retrofits, extensive energy retrofits and gut rehabs. Loans for new construction projects considered on a case- by-case basis. http://www.pagreenenergyl oanfund.com/ Green Energy Loan Fund 215-574-5800; PaGELF@trfund.com Interest rates— 4.0% to 6.5% Loan amounts $100,000 to $2.5 million Two step application process Step 1—Initial Financing Request Step 2—Loan Application Projects must result in a reduction in energy consumption of at least 25% Links to Initial Financing Request and Loan Application forms available at listed URL Palmetto State Clean Fuels Coalition Clean fuel projects Vehicle emissions Coalition partners with applications to obtain cost-share grants for clean fuel projects including: www.palmettocleanfuel.org Erika Myers emyers@energy.sc.gov Funding appears to be in the form of grants Local match—50% Entity Program Project Description/Project and Applicant Eligibility Guidance and Contact Information Funding Description, Matching Requirements, Funding Limits Timeline Application Process Administrative and Post-Grant Requirements Notes (Table 3 continued on the next page) Table 3 continued

• Alternative fuel vehicles • Alternative fuel infrastructure • Diesel retrofits • Idle reduction Alliant Energy Foundation Community Grants Various environmental resources Grants to support protection of the environment, among other objectives Eligible applicants— federal, state and local government entities, accredited educational institutions and section 501(c) nonprofits http://www.alliantenergy.co m/Community/CharitableF oundation/ApplyforaComm unityGrant/index.htm http://www.alliantenergy.co m/wcm/groups/wcm_intern et/@int/documents/content page/012195.pdf Grants Three grant cycles Cycle 1— Applications due January15 with decisions by April 1 Cycle 2— Applications due May 15 with decisions by August 1 Cycle 3— Applications due September 15 with decisions by December 1 Applications will not be accepted earlier than 30 days before deadline for a cycle Hard copy application Energy related projects that may benefit Alliant Energy or its utility subsidiaries are not eligible Funding targeted to residents and communities served by Alliant Energy’s utility subsidiaries Preference given to projects with advocate or sponsor, among other considerations Links to information on previous grants available at first listed URL Entity Program Project Description/Project and Applicant Eligibility Guidance and Contact Information Funding Description, Matching Requirements, Funding Limits Timeline Application Process Administrative and Post-Grant Requirements Notes Table 3 continued

205 perform the energy audit and develop recommenda- tions without committing to the GESC. The airports then implement the recommendations on their own or through traditional third-party contracting. Staff of one airport, Rolf Wold Minneapolis–St. Paul Inter- national Airport, pointed to (1) concerns about con- tractual issues in a GESC, in particular defining how energy savings would be calculated; and (2) the abil- ity to get rebates directly from a utility, as reasons for pursuing the initiatives without a GESC. • Vehicle emissions—The study shows that local or regional consortiums and regional planning agencies can play an important role in financing initiatives to reduce vehicle emissions. No instances were found in which these entities were themselves the source of funds. How- ever, as conduits of funds, they can enhance an airport’s access to other funding programs in a number of ways. First, for the Clean Cities program, only certified coali- tions are eligible to apply, as reflected in Table 2. Sec- ond, some programs may provide a higher priority to applications submitted by consortiums, including mul- tiple fleet owners. Third, by assembling projects from multiple fleet owners, coalitions or other regional agen- cies can meet high minimum grant requirements for some programs, as noted in some of the case examples in the next chapter. Finally, as the direct grant recipient, these regional entities may perform some of the admin- istrative work in support of a grant normally performed by the airport if it were the grantee. Regional coalitions and planning agencies may also provide support for ridesharing initiatives as another alternative to reducing vehicle emissions. Another form of funding assistance for vehicle emis- sion reduction involves financial support by the private sector. One airport—Dallas/Fort Worth International Air- port (DFW) was able to get a CNG refueling station built at no cost to the airport by a commercial CNG station operator. The CNG station serves the airport’s CNG fleet, and the station operator provides reduced rates to the airport. The station operator benefits because the station is open to the public for retail sales. Another airport— John F. Kennedy International Airport (JFK)—was able to implement a hydrogen fuel vehicle program at limited cost by working cooperatively with a vehicle manu- facturer to obtain vehicles and a fuel/energy company for construction of the hydrogen fueling station. These examples are discussed in more detail in the next chapter. CHARITABLE FOUNDATIONS The study located a limited number of charitable foundations that may provide grants for environmental initiatives. Because of requirements to maintain the tax exempt status imposed on foundations, it may be necessary for the airport to partner with a local nonprofit to qualify. Information on these foundations is included in the matrix. The study also identified two websites that provide listings of grant making foundations. The Founda- tion Center at http://foundationcenter.org/ offers comprehen- sive listings of foundations. A subscription is required to access some of the center’s databases. However, listings of open RFPs are available at no charge at http://foundationcenter.org/pnd/ rfp/. The Norcross Wildlife Foundation includes in its website a link to general information on foundations. However, the links appear to be oriented toward foundations, rather than potential grantees. The link is http://www.norcrossws.org/ Foundation%20Infor/Foundmain.html. MATRIX OF NONGOVERNMENTAL FUNDING OPPORTUNITIES Table 3 summarizes the information on nongovernmental funding opportunities. A blank cell means that the relevant information was not readily available through the referenced websites. Listings of consortia or planning agency organi- zations are limited to those identified through searches of other websites or through interviews. Clean Cities Certified Coalitions are listed at http://www.afdc.energy.gov/cleancities/ progs/coalition_locations.php. The listings of utilities that offer financial incentives are limited to those that were cited on state government websites and are presented for illustrative purposes. Similar programs may be available from utilities in other states. As noted pre- viously, the DSIRE website—www.dsireusa.org—provides a complete listing of utilities providing financial incentives sorted by state. The charitable foundations identified during this study are also included in the matrix.

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TRB’s Airport Cooperative Research Program (ACRP) Synthesis 24: Strategies and Financing Opportunities for Airport Environmental Programs summarizes public and private funding opportunities and strategies available to airports to help accomplish their environmental programs and objectives.

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