The Fall 2024 funding window for the SRC Price Lock Program opens on October 18th, 2024 and closes on December 18th, 2024. Award notifications will be issued by January 18th, 2025.
SRC Price Lock Program
Through DOEE's Stormwater Retention Credit (SRC) Price Lock Program, eligible SRC generators have the option to sell SRCs to DOEE at fixed prices. SRC generators can participate without losing the option to sell to another buyer. The option to sell to DOEE effectively constitutes a price floor in the SRC market and offers certainty about the revenue from an SRC-generating project. If participants sell to another buyer, DOEE also pays a portion of the purchase price on behalf of the buyer.
New, voluntary green infrastructure (GI) projects in the Municipal Separate Storm Sewer System (MS4) are eligible to enter into an SRC Purchase Agreement to sell their SRCs to DOEE. Prior to construction of the SRC-generating project, participants will receive a confirmed SRC selling price from DOEE. Once an SRC Purchase Agreement is signed, its terms will not change. After completing the SRC-generating project, participants have the option to sell their SRCs to DOEE at the price specified in the SRC Purchase Agreement or sell on the SRC market (at a price negotiated with the buyer).
DOEE expects that the SRC Price Lock Program will make it easier to generate SRCs on land owned by non-profits, such as churches, cemeteries, schools, and similar institutions. DOEE will prioritize funding for these projects.
For new SRC Purchase Agreements, DOEE utilizes funds that have been unreserved through the sale of "Rate Locked" SRCs on the market and also conducts a phased roll-out of the remaining SRC Price Lock escrow balance, expected to be $1,250,000 per year.
In implementing the SRC Price Lock Program, DOEE partners with the Center for Watershed Protection (CWP) to administer several aspects of the program. As the application process reopens, CWP will continue to review all SRC Price Lock submissions. Key considerations for CWP in providing recommendations for awards include:
- The amount of funding currently available
- What community or co-benefits does the project provide?
- Has the project entered any relevant SRC sale negotiations (e.g., a contract with a developer for the first six years of SRCs)?
- What, if any, additional environmental benefits does the project provide?
- All other things being equal, DOEE will consider:
- How many projects has the applicant submitted?
- Has the applicant been previously funded through the program?
- Has the project been previously submitted for funding, and if so, has the property owner confirmed continued interest?
Application Process
You may submit your application online through the DOEE Surface and Groundwater System. Eligibility requirements and steps for participation are available in the program guide below.
Applications may be submitted year-round; however, to facilitate ongoing project development throughout the year, DOEE plans to host biannual, 60-day open application windows for funding opportunities in the spring and fall. During these windows, applications that were previously submitted may be amended and resubmitted for consideration. DOEE will provide advance notification for each funding opportunity.
Resources
SRC Purchase Prices
SRC purchase prices will be determined based on where the project is located in the Municipal Separate Storm Sewer System (MS4). DOEE offers agreements with prices locked according to the following terms:
Non-Tidal MS4:
Years 1 through 6: $2.03 | Years 7 through 12: $0.42
Tidal MS4:
Years 1 through 6: $1.77 | Years 7 through 12: $0.42
CSS: Not eligible
DOEE Payment for Sales to Non-DOEE Buyers
For years 1 through 6, DOEE will also make a payment to participants who sell SRCs to a buyer on the SRC market instead of choosing to sell to DOEE. The payment is calculated using formulas in the SRC Purchase Agreement, shown below. The formulas are also included in the DOEE Payment Calculator available in the Resources section of this page.
DOEE shall not make a payment if the non-DOEE buyer’s price paid exceeds the price DOEE would have paid to purchase the SRC (see above). DOEE also shall not make a payment if the combined price received by the seller from DOEE and the non-DOEE buyer exceeds the price DOEE would have paid by more than $0.20 per SRC.
Formula 1: Calculation of the DOEE’s payment based on the price paid by the non-DOEE buyer
DOEE payment = [P + M – B + (A*Q/5,000)]/2
P = The price DOEE would have paid to purchase and retire the SRC (see above)
M = $0.40, the maximum amount by which the payment can exceed P if fewer than 5,000 SRCs are sold.
B = The price paid by the non-DOEE buyer, not to exceed P. In any sale, if B is less than P minus $0.40, then the value of B in Formula 1 shall be $0.40 less than P.
A = $0.02, the additional payment provided by DOEE, to be multiplied by Q, to incentivize larger transaction sizes.
Q = The quantity of SRC sold, rounded down to the nearest 5,000. Any quantity in excess of 100,000 shall be rounded down to 100,000.
Formula 2: Calculation of the non-DOEE buyer’s price based on the price sought by the Subgrantee
Formula 2a
Non-DOEE Buyer’s Price = S – D
S = The price sought by the Subgrantee (the combined price paid by DOEE and the non-DOEE buyer), not to exceed P by more than $0.40. In any sale, if S is less than P, then the value of S in Formula 2 shall be the value of P.
D = The value of the DOEE payment, calculated using formula 2b below.
Formula 2b
DOEE Payment = P + M – S + (A*Q/5,000)
P = The price DOEE would have paid to purchase and retire the SRC (see above)
M = $0.40, the maximum amount by which the payment can exceed P if fewer than 5,000 SRCs are sold. S = The price sought by the Subgrantee (the combined price paid by DOEE and the non-DOEE buyer), not to exceed P by more than $0.20. In any sale, if S is less than P, then the value of S in Formula 2 shall be the value of P.
S = The price sought by the Subgrantee (the combined price paid by DOEE and the non-DOEE buyer), not to exceed P by more than $0.40. In any sale, if S is less than P, then the value of S in Formula 2 shall be the value of P.
A = $0.02, the additional payment provided by DOEE, to be multiplied by Q, to incentivize larger transaction sizes.
Q = The quantity of SRC sold, rounded down to the nearest 5,000. Any quantity in excess of 100,000 shall be rounded down to 100,000.