The Costs of Restoring the Industrialized/Polluted Section
 of the Mahoning River

CONTENTS:

Sources & Descriptions: 
Note: It’s important to understand the four phases of restoration before reading this section. (See River Restoration, which details the process of restoring the Mahoning River.)

Phase 1, 1999: Reconnaissance. This phase, which is complete, cost $500,000 and was fully funded by federal money. 

Phase 2, 2002 - 2004: Feasibility. This phase is cost-shared, a 50/50 split, federal/non-federal and requires a local sponsor, which is the Eastgate Regional Council of Governments. The estimated cost is $3 million of which the non-federal (local) cost is $1.5 million. However, because of innovations in funding (see below and WRRSP), the Mahoning Valley had to pay only $80,000.

Phase 3, 2005 - 2006: Pre-construction. This phase is cost-shared, a 65/35 split, federal/non-federal. The estimated cost of this phase will be $10 to 15 million of which the non-federal share is $3.5 to $5.2 million.

Phase 4, 2007 – 2017: Construction Phase. The cost for the actual river restoration is estimated to be $100 million, a 65/35 split, federal/non-federal over a 10-year project lifespan. The non-federal share of this phase is estimated to be $35 million, but does not include the disposal of the sediment from the river, which each river community will have to pay for.

Total cost of all four phases is approximately $113,500,000 to $118,500,000, split between federal and non-federal sources. The non-federal cost is estimated to be $40 to 42 million. But there are innovative ways of reducing this and/or raising the funds.

Innovations in Funding: 
This is good news and offers hope throughout the lifespan of the project.

     DEFA & WRRSP: The Ohio EPA’s Division of Environmental and Financial Assistance (DEFA) developed a low interest loans program to fund public works projects. In an innovative arrangement between two communities and these two programs (DEFA & WRRSP), DEFA funding for the City of Massillon’s wastewater improvement project allowed for reduced funding for the feasibility of the Mahoning River Ecological Restoration Project, which qualified as a stream remediation project under WRRSP (Water Resources Restoration Sponsor Program). This is important because, under the guidelines, concurrent funding for WRRSP is allowed with DEFA low interest loans.
To further explain, the city of Massillon proposed sanitary sewer improvement and treatment plant projects. The applications were made for DEFA loans (to fund Massillon’s projects) and concurrent WRRSP funding (to pay for the non-federal portion of the Phase 2 feasibility phase of the restoration efforts of the Mahoning River.) Thus, the local payment toward the non-federal share of Phase 2 is then minimized to $75,000 - an administrative fee paid to Massillon - resulting in a savings of $1, 425, 000.

     CLEAN OHIO FUNDS: In the summer of 2000 Gov. Taft proposed the “Clean Ohio” program, a bond program providing $400 million for cleaning the environment ($200M for Brownfields and $200M for Greenspace). In Nov. 2000 the residents of Ohio approved the ballot initiative. Throughout 2001, rules and procedures were developed. In 2002, methods to apply for grants (and matching funds) as well as applications were made available.

     MRC: The mission of the Mahoning River Consortium (MRC) is to restore and maintain higher environmental quality of the Mahoning River, its corridor, and its watershed. This will positively impact the quality of life in the Valley. One of the functions of the MRC is fundraising. Tax-deductible contributions are solicited by the MRC from businesses, trusts, organizations and individuals. The MRC has no paid staff; a $10 membership fee provides for administrative overhead. 

Roles 
US Army Corps of Engineers (USACE or ACOE) and Local Sponsor & Fiscal Agent:
     The Mahoning River is included in Section 312(b) of Water Resources Development Act (WRDA) of 1990, as amended, "environmental dredging" by Section 205 of WRDA 1996. This amendment directed the Army Corps of Engineers, Pittsburgh Office, to give priority to the environmental restoration projects of the five rivers included in the amendment (the Mahoning being one of the five). Section 312, as amended, spells out how these projects are to be conducted, such as the role of the ACOE, the need for a local sponsor, and the funding ratio (fed/local match). 

     The ACOE are the lead agency in the project. This includes participation in phases 1 through 4 and the actual work of phases 3 and 4 (See River Restoration for more details on the four phases.). The ACOE makes the determination as to the methodologies used in the project, however, they will be working with the steering committee and entertaining suggestions. The Mahoning River Consortium will definitely encourage the use of bioremediation if possible.
The criterion for a local sponsor is also spelled out. They must be a fiscal agent (i.e.: secure and manage the monies, pay the ACOE for work completed, etc.). The local sponsor’s (working with municipalities and counties) must also have the ability for eminent domain and the capability to generate monies through taxes or bonds. Eastgate Regional Council of Governments has entered into a joint venture agreement with the ACOE to be the fiscal agent in restoring the Mahoning River.

EASTGATE REGIONAL COUNCIL OF GOVERNMENTS
The Eastgate Regional Council of Governments “was formed in 1973 as a regional Council of Governments through a merger of the Mahoning-Trumbull Council of Governments and the Mahoning-Trumbull Comprehensive Transportation Study. EASTGATE is the Metropolitan Planning Organization (MPO) for Mahoning and Trumbull counties and is committed to promoting cooperative regional efforts in the planning, programming, and implementation of public sector activities. EASTGATE serves as a forum to discuss common problems, formulate policies, and affect rational plans for the benefit of the region. As the designated MPO, EASTGATE is responsible for long-range transportation planning, transportation improvement programs, among other activities.” http://www.eastgatecog.org/ataglance/history.htm

OEPA (OHIO EPA), DEFA (Division of Environmental and Financial Assistance) and WRRSP (Water Resources Restoration Sponsor Program) 
The Ohio EPA's Division of Environmental and Financial Assistance (DEFA) recently initiated an incentive program. It allows loan interest from any municipal/county DEFA loan project for a wastewater treatment or collection system improvement to be diverted to fund stream restoration projects. (Stream restoration projects eligible for funds include: Land conservancy easements, Stream bank re-stabilization, Riparian restoration, Dam modification, Sediment remediation projects, Source Water Protection Plans, Watershed Implementation Plans, Watershed Action Plans.) The program, Water Resource Restoration Sponsor Program (WRRSP), allows communities to add projects protective of water resources to approved Water Pollution Control Loan Funds (WPCLF).

EXAMPLE: Massillon and the Use of WRRSP for the Mahoning River Restoration Project
“While it may appear to be like a grant, the WRRSP functions as a discounted loan, with conditions. In general, a city like Massillon can receive a reduction to the interest rate on their wastewater treatment plant loan in exchange for agreeing to act as the sponsor for a non-point source pollution control project. In this case, Massillon sponsored multiple non-point source projects, including Phase 2 of the Mahoning River Project.
So Massillon receives money from the Water Pollution Control Loan Fund for the cost of its wastewater project, plus funds for the cost of the sponsored projects. Massillon agrees to oversee the implementation of the sponsored projects, but it passes the sponsorship portion of the loan funds onto the individual parties who are directly responsible for implementing the individual non-point projects. These implementers do not have to pay back those funds to Massillon or to the Ohio EPA; they only have to carry out their individual non-point projects as previously agreed with Massillon. Massillon carries out the work on its wastewater project and monitors the progress and completion of the non-point projects. It then repays the principal portion of the loan for the wastewater project, plus the principal portion of the loan for the non-point source projects, plus interest. However, instead of repaying the interest cost that would be due on, say for example a rate of 3.8%, it repays interest at a rate of say 1.38%. The reduced interest rate cuts the interest payment by an amount that is sufficient to cover the cost of the principal portion of the loan for the non-point source projects. In addition to that discount, Ohio EPA reduces the interest rate by an additional 0.1% so that Massillon pays even less in interest as a benefit to the city and its wastewater customers, in exchange for Massillon's meeting the terms of the conditions for the non-point projects sponsorship. The result is that Massillon receives a low-interest loan for its wastewater project, plus a bonus reduction of 0.1% in its interest repayments in exchange for overseeing the non-point source projects. The implementing parties receive funds to carry out the non-point source projects. The Water Pollution Control Loan Fund will receive less interest payments than it would otherwise, but it also achieves the implementation of multiple water pollution control projects: the wastewater project plus the non-point source projects.” (From Greg Smith, OEPA, 12/17/01)

Resources 

Clean Ohio: www.dnr.state.oh.us/cleanohiofund/default.htm or www.dnr.state.oh.us (click on Clean Ohio Fund)

Glossary of Terms: www.pwc.state.oh.us (click on Clean Ohio program, scroll and click on glossary)

EPA: at the www.state.oh.us website, select the agency link for OEPA. This is where DEFA, WRRSP, and the Department of Natural “white paper” regarding the Clean Ohio Fund can be found.

US Army Corps of Engineers www.usace.army.mil/

Local Sponsor, Eastgate Regional Council of Governments www.eastgatecog.org 

Other related site: www.conservationeconomy.net

Mahoning River Consortium http://www.MahoningRiver.co.trumbull.oh.us

By Leanne Turner, 2002, through a grant from the US EPA. The Mahoning River Education Project: A Partnership between Youngstown State University and the Mahoning River Consortium. Mahoning River website: www.cc.ysu.edu/mahoning_river

Support for this project provided in part by the Ohio Board of Regents' Urban University Program