1320.1 In general, local governments and/or independent agencies or authorities (e.g., DC Water and PEPCO) are responsible for the maintenance and upkeep of infrastructure. There are a number of ways that local governments fund infrastructure improvements. The most common are long-term financing via bonds and pay-as-you go revenues collected via taxes or utility rates. In many cases, municipalities have foregone investment in infrastructure due to revenue constraints. The result is deferred maintenance and a long backlog of unfunded repairs—an unfortunate reality in cities across the country.

1320.2 Many local governments require infrastructure costs for new development to be borne by the developer through impact fees, special assessments, or other fees or taxes. Such fees are usually proportionate to the actual costs of building new water lines, sewer lines, and other utilities to serve the development site. While impact fees are an effective way to address the impacts of new development, they usually cannot be used to address deferred maintenance. Those costs must be financed through other means—generally through higher rates that cover the cost of bonds and capital projects that address deferred maintenance.

1320.2a Text Box: Green Century Bonds In July 2014, DC Water issued its inaugural green bond to finance a portion of the DC Clean Rivers Project. This historic \$350 million issuance represented DC Water's inaugural green bond issue and the first certified green bond in the U.S. debt capital markets. It was also the first municipal century bond issued by a water/wastewater utility in the United States. The bond will be paid back over a 100-year period, to distribute the cost among those who benefit from the significant investment. The issuance achieved its green certification based upon the DC Clean Rivers Project's environmental benefits, which include improving water quality by remediating CSOs, promoting climate resilience through flood mitigation and improving quality of life through promotion of biodiversity and waterfront restoration.

1320.3 Policy IN-6.2.1: Creative Financing Promote creative financing tools to fund infrastructure development, maintenance, and replacement. These could include innovative taxing programs, user fees, new development charges, improvements through Planned Unit Developments, and other innovative cost recovery mechanisms.

1320.4 Policy IN-6.2.2: Developer Contributions Require that private developers fund the necessary relocation or upgrading of existing utilities to address limitations with existing infrastructure on or adjacent to proposed development sites. For necessary upgrades to infrastructure, including water and wastewater, developers should contribute to the cost of extending

utilities to the project site or upgrading existing utilities to the specifications necessary for their proposed project.

1320.5 Policy IN-6.2.3: Infrastructure Maintenance Support investments in infrastructure to reach and maintain a state of good repair across all systems.

1320.6 Action IN-6.2.A: Developer Reimbursement Agreements Formulate consistent, equitable, and manageable developer reimbursement agreements for the incremental costs of utility upgrades, including water and sewer. The agreements should provide a means for the initial developer to be reimbursed by the District through payments by other developers who benefit from the initial developer's infrastructure improvements.

1320.7 Action IN-6.2.B: Community Infrastructure Investment Explore methods to properly assess and meet infrastructure needs associated with incremental development.

SOURCE: District of Columbia Comprehensive Plan Act of 1984, effective April 10, 1984 (D.C. Law 5-76; 31 DCR 1049 (March 9, 1984)); as amended by District of Columbia Comprehensive Plan Act of 1984 Land Use Element Amendment Act of 1984, effective March 16, 1985 (D.C. Law 5-187; 32 DCR 873 (February 15, 1985)); as amended by District of Columbia Comprehensive Plan Amendments Act of 1989, effective May 23, 1990 (D.C. Law 8-129; 37 DCR 55 (January 5, 1990)); as amended by District of Columbia Comprehensive Plan Amendments Act of 1989 NCPC-Recommended Amendments, and Closing of Public Alleys in Square 669, S.O. 88-452, Act of 1990, effective May 23, 1990 (D.C. Law 8-132; 37 DCR 2213 (April 6, 1990)); as amended by District Government Land Use Temporary Amendment Act of 1994, effective October 1, 1994 (D.C. Law 10-190; 41 DCR 5360 (August 12, 1994)); as amended by Comprehensive Plan Amendments Act of 1994, effective October 6, 1994 (D.C. Law 10-193; 41 DCR 5536 (August 19, 1994)); as amended by District of Columbia Comprehensive Plan Act of 1984 Land Use Amendment Act of 1994, effective March 21, 1995 (D.C. Law 10-235; 42 DCR 30 (January 6, 1995)); as amended by Technical Amendments Act of 1996, effective April 18, 1996 (D.C. Law 11-110; 43 DCR 530 (February 9, 1996)); as amended by Second Technical Amendments Act of 1996, effective April 9, 1997 (D.C. Law 11-255; 44 DCR 1271 (March 7, 1997)); as amended by Comprehensive Plan Amendment Act of 1998, effective April 27, 1999 (D.C. Law 12-275; 46 DCR 1441 (February 19, 1999)); as amended by Technical Amendments Act of 1999, effective April 12, 2000 (D.C. Law 13-91; 47 DCR 520 (January 28, 2000)); as amended by Comprehensive Plan Amendment Act of 2006, effective March 8, 2007 (D.C. Law 16-300; 54 DCR 924 (February 2, 2007)); as amended by Technical Amendments Act of 2008, effective March 25, 2009 (D.C. Law 17-353; 56 DCR 1117 (February 6, 2009)); as amended by Comprehensive Plan Amendment Act of 2010, effective April 8, 2011 (D.C. Law 18-361; 58 DCR 908 (February 4, 2011)); as amended by Comprehensive Plan Amendment Act of 2021, effective August 21, 2021 (D.C. Law 24-20; 68 DCR 006918 (July 16, 2021)).