Credits are given to property owners who reduce their property’s stormwater runoff.
Some programs allow credits to be sold or traded to other property owners.
Quick Facts
Community Mission When implementing a stormwater credits fee be sure to show your community how this
fee helps you meet your community’s mission
Eligibility Property owners, Homeowners, Business Owners, and more
What do credits do? Incentivize installation of projects that reduce stormwater runoff by private landowners
Cost to the Utility or Community No funding is provided directly to the participating landowners. There is time and
effort to manage the program and potential loss of revenue due to discounted stormwater
fees. However, the benefit in flood risk reduction and water quality will likely outweigh
the costs.
Stormwater Credits are financial incentives, given to property owners (private, nonprofit or business),
to reduce stormwater runoff from their property. A stormwater credit program gives
reductions in stormwater charges for reducing a property’s demand on the stormwater
system.
Typically, stormwater credits are earned through the installation of green infrastructure
like bioretention, rain gardens, permeable pavement, green roofs, cisterns, etc.
A stormwater credit program can also allow trading and selling credits to those who
are unable or unwilling to install stormwater reduction on their property. This gives
everyone the ability to financially contribute to a better stormwater system, which
ultimately reduces their flood risk and improves local water quality.
A Stormwater Credit program can be implemented by a municipality to generate dedicated
revenue to develop and implement stormwater projects that meet community development,
flood reduction and sustainability goals.
As a dedicated funding source, stormwater credits do not compete with other community
priorities. With a reliable and dedicated funding source it is easier to develop long-term
stormwater plans, to integrate stormwater projects into the capital improvement plan,
and meet regulatory compliance on structures and discharge.
Project Examples
City of Chattanooga, TNWater Quality Program Credits & Incentives Manual
Chattanooga’s Water Quality Credits Program provides stormwater credits to non-residential parcels only. Credits coordinate with
the MS4 performance standards, and credits are offered for exceeding the specified
volume standard. Earned credits can be used or sold on the “open market.” Credits
can be used on new development if they are within the same watershed where they were
earned. Credits on redevelopment can be used in any watershed. To apply the credit
coupon, the developer may demonstrate hardship meeting basic standard. The City does
not track trades, only who gets and redeems them.
City of Toledo, OHStormwater Utility Credit Program
Non-residential property owners in Toledo are able to reduce their stormwater charges
by up to 50% through stormwater runoff reduction practices like detention ponds, grass
swales, etc. “Stormwater credits are offered as an incentive for being good stewards
of the City of Toledo stormwater resources.” More Info
City of Portland, ORClean River Rewards
The Clean River Rewards program gives residential and commercial property owners the opportunity for reduced stormwater
fees (up to 100% of the on-site stormwater charge).
Consult your community’s attorney and financial advisors prior to moving forward with
any of these funding options. Any reference in this website to any person, or organization,
or activities, products, or services related to such person or organization, or any
linkages from this website to the website of another party, do not constitute or imply
the endorsement, recommendation, or favoring of companies or organizations.
