By Brett Rosenberg
November 9, 2009

This year’s first MWMA Fall Summit presentation focused on successful strategies to compete for and acquire American Recovery and Reinvestment Act (ARRA) dollars, Energy Efficiency and Conservation Block Grant funds (EECBG) and other federal funding opportunities to stimulate local economies. Although many ARRA and EECBG funds have largely been distributed already, local governments still have time to apply for remaining grants. Emerging climate legislation may provide additional resources for local programs.

John Williams, National Director for Sustainable Development at HDR, an architectural, engineering and consulting firm, presented Leveraging Federal Funds & Building a Strong “Green Business Case.” Williams, who had previously given similar presentations before The U.S. Conference of Mayors’ Sustainability and Climate Protection Task Forces, reiterated a new twist on an old economic indicator. According to Williams, based on the tried and true return on investment, the Sustainable Return on Investment (SROI) is a tool municipalities can use to bolster their cases when applying for federal grants, especially those that focus on green jobs, energy efficiency and overall environmental quality.

When considering a comprehensive sustainability plan or even a single “green” project, a city, according to Williams, has several factors it should consider before committing public funds. In order to realize the highest possible SROI, mayors and their staff should analyze the traditional return on investment; project resilience – i.e., how well the project will stand up over time; greenhouse gas reduction; green job creation; functionality; and deliverability. This extra analytical step is especially important because most of the new grants stipulate a much higher degree of accountability and transparency than ever before.

Williams’ presentation delved into several metrics beyond standard financial criteria that applicants should consider when seeking federal stimulus dollars for their projects. For instance, considering that recent demand for Transportation Improvements Generating Economic Recovery (TIGER) funds exceeded $54 billion for a $1.5 billion supply, Williams said that it is absolutely crucial that municipal applicants articulate the sustainability case for their projects. Stating that “green is local,” Williams said, “You need to plan to maximize the benefits you can bring to your community.” Such benefits include the addition of new, green jobs; tons of greenhouse gases offset or not emitted; and other sustainability indicators beyond standard economic returns.