developing new funding mechanisms in the nisqually

© 2013 Earth Economics

Developing New Funding Mechanisms in the Nisqually

April 19, 2013


501(c)3 founded in 1998

Part I: About Us


Where We Work


How We Work •  Demonstrated applications:

•  Watershed characterization •  Environmental Impact Assessment •  Benefit-Cost Analysis •  Funding mechanism development •  Health and human welfare valuation •  Jobs Analysis

•  Incubating: •  Watershed Investment District •  No-Net-Loss Policy •  Return on Investment of Regulation •  Best-management Practice Valuation •  Ecosystem Services in the Built Environment •  Cultural and Non-Monetary Valuation •  Natural Capital Accounting •  Blue Carbon •  Floodplains by Design


21st Century Washington Initiative •  29%: Percentage of Tacoma residents who exercise in parks

•  $9,644,757: Annual health cost reduction due to parks for Tacoma’s adults and seniors

•  $1,127,807: Social capital value of Metro Parks Tacoma volunteers in 2010

•  1 million: gallons of untreated storm water per hour into Budd Inlet during the 2007 flood event

•  $50: Value of a single pollinating bee

•  25,348: Acres of rare prairie habit left in Thurston County

•  $247,290,005: Maximum value of increased forest buffer with Thurston County’s 2012 CAO Update

•  $70 million: 10 year funding mechanism for Washington State parks with the 2011 Discovery Pass

• 


1913


Microeconomics

Macroeconomics

Eartheconomics


Built Capital Social Capital Human Capital Natural Capital

Four Types of Capital


Loss of Natural Capital


Track of Hurricane Katrina, August 23-29, 2005, showing spatial extent and storm intensity along its path (source: NOAA)��


IdenIfying: Provisioners, Beneficiaries and Impairments

NaIonal Science Grant


IdenIfying: Provisioners, Beneficiaries and Impairments


Carbon sequestration & storage


Flood protection


SeaPle Public UIliIes


Freshwater Provisioning Value: $200 million


Part II: History of EE’s Work in the Watershed: Valuing the Ecosystem

Services in the Nisqually

© 2013 Earth Economics hPp://en.wikipedia.org/wiki/File:Nisqually_Watershed.JPG

12 Ecosystem Services 18 Land Cover types

Nisqually Watershed


Freshwater Supply



Erosion Control


Biological Control


Flood Protection

http://www.ucmp.berkeley.edu/glossary/gloss5/biome/wetlands/wetlandsgallery.htm


Nutrient Cycling

http://www.plantanswers.com/Articles/DirectSeedingIntoGardenSoil.asp


Carbon Sequestration



Soil Formation

hPp://www.trekearth.com/gallery/Asia/India/North/Jammu_and_Kashmir/Gurez/photo1160427.htm


Pollination



Wildlife Habitat

http://robinloznakphotography.blogspot.com/2010/07/northern-spotted-owl.html


Aesthetic and Recreation



Categories of Ecosystem Services

Informa4on Func4ons Aesthe4c & Recrea4on

Cultural & ar4s4c Science & educa4on

Habitat Func4ons Wildlife Habitat

Nursery

Provision Func4ons Water supply

Drinking Water Purifica4on Food

Raw materials Gene4c resources Medicinal resources Ornamental resources

Regula4on Func4ons Climate Stability Gas Regula4on Flood Protec4on Storm Protec4on Water Regula4on Soil Erosion Control

Soil Forma4on Nutrient Cycling Waste Treatment

Pollina4on Biological Control

Provision Func4ons Water supply

Drinking Water Purifica4on Food

Raw materials Gene4c resources Medicinal resources Ornamental resources

Informa4on Func4ons Aesthe4c & Recrea4on

Cultural & ar4s4c Science & educa4on

Regula4on Func4ons Climate Stability Gas Regula4on Flood Protec4on Storm Protec4on Water Regula4on Soil Erosion Control

Soil Forma4on Nutrient Cycling Waste Treatment

Pollina4on Biological Control

Habitat Func4ons Wildlife Habitat

Nursery


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!


ES in Nisqually Report-‐2009

High

$280 million Low

$4.1 Billion

In yearly benefits


Part III: From ValuaIon to Funding Mechanisms in the Nisqually

© 2013 Earth Economics Copyright © 2011 Earth Economics

Stakeholders

Identify Value Model and Map Analyze Fund

Watershed Managers UIliIes

Standards Boards

Farmers

Government Agencies

Business Interests

Academic InsItuIons

Rural Landowners

NGOs

Urban Residents

Tribes


Categories of Funding Mechanisms

1. Investment in Watershed Services (Payments for Ecosystem Services)

2. Regulatory Markets: trading, offset markets, miIgaIon banking

3. Special Fees: assessed by Park Service in Mt. Rainier NaIonal Park

4. Taxes

5. Watershed Investment District

6. ConservaIon Easements & Tradable Development Rights


Categories of Funding Mechanisms

7. Loans: State Revolving Loans (low interest)

8. Grants (from Government, NGOs, Private FoundaIons)

9. Special Purpose Districts (water, conservaIon)

10. Special Purpose Funds (Eugene, OR-‐ Watershed Investment Fund)

11. Voluntary Offsets (carbon, in stream water rights, stormwater)


Overview of Project Secure sufficient funding for the full implementation of the

Nisqually Salmon Recovery Plan.

hPp://www.wetlandsplendors.com/porlolio/allegheny-‐river-‐clearing-‐storm-‐2/


Goals and Outcomes

1. IdenIfy 3-‐5 potenIal funding mechanisms; provide an overview of economic benefits to residents, ciIes and private firms

2. Stakeholder engagement

3. Evaluate different funding mechanisms based on specific need, implemenIng one of these within a year


QuesIons to address…

1. How much funding is needed?

2. How much funding is dedicated to habitat restoraIon annually?

3. Verify the scale of implementaIon for the funding mechanism (whole watershed or sub-‐watershed).

4. Note: one FM should be able to be implemented within one year of compleIon of the project.


PotenIal Funding Mechanisms for Nisqually

1. Watershed ProtecIon Charge (Driven by water uIlity)

2. ApplicaIon of special fee (Collected upon entrance to Mt. Rainier NaIonal Park)

3. Tacoma Power

4. Watershed Investment District (WID)

5. Joint Base Lewis McCord

6. Per parcel property tax (i.e. 70,000 x $30 = $2,100,000)


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developing new funding mechanisms in the nisqually

Technology

earth economics idenifying

earth economics hpp

earth economics pollination

earth economics 501c3

earth economics erosioncontrol

earth economics breaker

storm intensity

watershed investment