Stormwater fees supporting NBS for stormwater management
Adopting or adapting stormwater fees, or water utility fees, can secure funding for nature-based solutions for stormwater management.
Specific Advice
Stormwater fees, sometimes called water utility fees, are charges levied by municipalities on property owners to manage stormwater runoff from their property. They can be designed and adopted to support NBS, not merely traditional stormwater management through underground pipes. The intention and provisions of the regulations play an important role in this regard, either inhibiting or enabling NBS to be funded.
It can be beneficial to revise existing fee structures or develop new fees to ensure funding opportunities for NBS stormwater management. Important factors to consider is who can collect the fees, who must pay the fees and for which service, how to calculate the fees and what types of measures can be funded by the fee revenues.
It can be useful designing fees with variable fee rates linked to the performance of the stormwater NBS (i.e. stormwater runoff volume from the property, peak runoff reduction), alternatively a combination of fixed and variable rates. Fees should support not only the hydrological performance of NBS for stormwater management, but also vegetation and design features, i.e. adding biodiversity metrics to the performance criteria.
Urban stormwater management can include NBS (photo: Isabel Seifert-Dähnn).
Good to Know
By funding NBS for stormwater management, cities can not only handle their stormwater problems but also create improve the urban environment for humans and biodiversity.
Adopting fees supporting NBS may require changes in legislation and administration of fees, depending on national legislation.
Stormwater fees calibrated to a property’s stormwater runoff can be complex and expensive to compute. However, recent developments using remote sensing data can lower the administrative burden of calculating fee rates, which enables fair and incentivizing fees.
Context
Experience from various countries shows that NBS may not be eligible for funding through existing financing mechanisms in the water and wastewater sector. Lack of funding for NBS is one reason why grey solutions may be favoured for stormwater management even when NBS are the most cost-efficient option providing a range of benefits in addition to handling stormwater. Another factor contributing to this favouritism is engineers and practitioners’ skills and experience with technical solutions, which could be addressed by providing funding for pilot projects.
Examples and Cases
Nordic examples of how stormwater fees can support NBS:
#DENMARK - FUNDING THE HYDRAULIC FUNCTIONS OF NBS
In 2013, Denmark adopted wastewater fees (through ‘Lov om afgift av spildevand’) that can support NBS for stormwater management on municipal and private properties, by funding the hydraulic functions of the measures. The Utilities Secretariat is responsible for regulating water and wastewater fees and is tasked with assessing whether these rules are complied with in each project, thus whether the project can be supported by revenues from the fee.
More information about the Danish wastewater fees here:
#FINLAND – AN ADDITIONAL STORMWATER FEE
In Finland, municipalities' water and wastewater units are covered by the water services (2001), the purpose of which is to ensure appropriate water supply and wastewater management with regard to health and the environment. The water and wastewater units' services are paid for through fees collected from the recipients / customers.
Since 2014, municipalities in Finland have been able to charge a stormwater fee in addition to the existing service fee for stormwater management. The fee is intended to cover the municipality's costs for diverting stormwater from properties, parks and roads outside sewage pipes, including planning of the stormwater system, and is anchored in the Land Use and the Building Act. The Act requires the municipality to organize necessary measures for stormwater management in the detailed plan areas, but at the same time allows them to introduce a separate earmarked stormwater fee to cover their expenses. The landowner is responsible for managing stormwater on their own property by infiltration and possibly discharge to the municipality's stormwater system or the water and wastewater sector's wastewater system. Many taxpayers are owners of properties located in areas with municipal stormwater systems. Unlike the water and sewerage fee, it is not a direct payment for the property receiving water and sewerage services from the municipal water and sewerage sector.
More information about the Finnish stormwater fee here:
#SWEDEN – SEPARATING STORMWATER AND WASTEWATER COSTS
In Sweden, an amendment to the Water Services Act in 2006 resulted in that stormwater fees are to be separated from other water and wastewater fees. The stormwater fee shall reflect the use of the stormwater services and be set according to the "benefit" the user obtains from the service - and not the costs caused by the property's use of the service. This means that, for example, no account is taken of whether the user is located near or far from the stormwater facility. In practice, it is not easy to accurately separate the costs associated with stormwater and other wastewater. This must therefore be assessed based on the wastewater and factors such as whether property is connected to the municipal sewer network, the size of the of the plot and the proportion of impervious surfaces on the plot. In Sweden, municipalities are also allowed to charge a fee for the road owner's use of the stormwater services. The fee can take into account the amount of stormwater generated on the road and the treatment needs of the stormwater. (Seifert-Dähnn et al., 2022)
More information about the Swedish wastewater fees here:
Learn more
New Water Ways,
a Norwegian research project, studied a computational approach to calculate stormwater fee based on the estimated runoff from each property through a combination of detailed land-use maps, hydrological model, and estimates of current and expected costs related to stormwater infrastructure and treatment. The study demonstrated that recent developments using remote sensing data can lower the administrative burden of calculating fee rates more closely connected to the runoff. To learn more, read:- An article describing the approach as well as different types of stormwater fees (in Norwegian): https://hdl.handle.net/11250/2984562
- A report on the technical aspect of estimating the runoff from each property (in Norwegian): https://hdl.handle.net/11250/2723217
- The web-based tool used to demonstrate the expected runoff from properties with or without nature-based solutions (in English and Norwegian): https://nina.earthengine.app/view/new-waterways
International Obligations
Kunming-Montreal Global Biodiversity Framework, target 11
“Restore, maintain and enhance nature’s contributions to people, including ecosystem functions and services, such as regulation of air, water, and climate, soil health, pollination and reduction of disease risk, as well as protection from natural hazards and disasters, through nature-based solutions and ecosystem-based approaches for the benefit of all people and nature.”Kunming-Montreal Global Biodiversity Framework, target 8
“Minimize the impact of climate change and ocean acidification on biodiversity and increase its resilience through mitigation, adaptation, and disaster risk reduction actions, including through nature-based solution and/or ecosystem-based approaches, while minimizing negative and fostering positive impacts of climate action on biodiversity.”The strategy aims to realise the 2050 vision of a climate-resilient Union by making adaptation smarter, more systemic, swifter, and by stepping up international action.