Incentivizing Onsite and District Scale Reuse in New York City

Encouraging onsite reuse to free up sewer system capacity and facilitate redevelopment

In NYC, onsite reuse systems reduce wastewater discharges to the combined sewer system. This can free up capacity in sewer constrained areas, facilitating higher density development and reducing the need for costly sewer system upgrades. However, upfront costs and/or lack of familiarity with reuse can  discourage real estate developers from incorporating it into new buildings. With careful design, incentive programs can reduce capital and operating expenses and reduce barriers to entry for reuse, encouraging broader implementation.

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Making a business case for incentive programs

One Water Econ analyzed a range of existing onsite reuse systems in NYC to help DEP make the business case for reuse incentives in a sewer-constrained area of the City slated for redevelopment. We calculated the return on investment for development sites, accounting for the cost of reuse systems, avoided potable water and wastewater costs, and the effect of alternative incentive program models. We also calculated the benefits for New York City, including avoided sewer upgrade costs and economic benefits associated with the redevelopment facilitated by reuse.  With this information, DEP is better able to design incentive and other support programs to accelerate onsite reuse in New York City. One Water Econ conducted this work as a subconsultant to Stantec.