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Developing New Funding Mechanisms in the Nisqually
- 1. ©
2013
Earth
Economics
Developing
New
Funding
Mechanisms
in
the
Nisqually
April 19, 2013
- 2. ©
2013
Earth
Economics
501(c)3 founded in 1998
Part
I:
About
Us
- 4. ©
2013
Earth
Economics
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 PracticeValuation
• Ecosystem Services in the Built Environment
• Cultural and Non-MonetaryValuation
• Natural Capital Accounting
• Blue Carbon
• Floodplains by Design
- 5. ©
2013
Earth
Economics
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
•
- 9. ©
2013
Earth
Economics
Microeconomics
Macroeconomics
Eartheconomics
- 10. ©
2013
Earth
Economics
Built Capital Social Capital Human Capital Natural Capital
Four Types of Capital
- 13. ©
2013
Earth
Economics
Track of Hurricane Katrina,August 23-29, 2005, showing spatial extent and storm intensity along its path (source: NOAA)
- 15. ©
2013
Earth
Economics
IdenIfying:
Provisioners,
Beneficiaries
and
Impairments
NaIonal
Science
Grant
- 16. ©
2013
Earth
Economics
IdenIfying:
Provisioners,
Beneficiaries
and
Impairments
- 21. ©
2013
Earth
Economics
Freshwater
Provisioning
Value:
$200
million
- 22. ©
2013
Earth
Economics
Part
II:
History
of
EE’s
Work
in
the
Watershed:
Valuing
the
Ecosystem
Services
in
the
Nisqually
- 23. ©
2013
Earth
Economics
hPp://en.wikipedia.org/wiki/File:Nisqually_Watershed.JPG
12
Ecosystem
Services
18
Land
Cover
types
Nisqually
Watershed
- 24. ©
2013
Earth
Economics
Freshwater
Supply
© 2013 Earth Economics
- 27. ©
2013
Earth
Economics
Flood
Protection
http://www.ucmp.berkeley.edu/glossary/gloss5/biome/wetlands/wetlandsgallery.htm
- 28. ©
2013
Earth
Economics
Nutrient
Cycling
http://www.plantanswers.com/Articles/DirectSeedingIntoGardenSoil.asp
- 29. ©
2013
Earth
Economics
Carbon
Sequestration
© 2012 Earth Economics
- 30. ©
2013
Earth
Economics
Soil Formation
hPp://www.trekearth.com/gallery/Asia/India/North/Jammu_and_Kashmir/Gurez/photo1160427.htm
- 31. ©
2013
Earth
Economics
Pollination
© 2012 Earth Economics
- 32. ©
2013
Earth
Economics
Wildlife
Habitat
http://robinloznakphotography.blogspot.com/2010/07/northern-spotted-owl.html
- 33. ©
2013
Earth
Economics
Aesthetic and
Recreation
© 2012 Earth Economics
- 34. ©
2013
Earth
Economics
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
- 35. ©
2013
Earth
Economics
!
! #$%'#(')! ! *+,)-!#.+/'!*01'#(')!!
.+/'!*01'! $%'2! 3+4!! 5678! 3+4!! 5678!
#$%!'($)*+! ,-./01! 23433! 23433! 23433! 23433!
5(%)!'($)*+! 0/.016! 2--4,-! 21014-0! 2/36.0,74/7! 26-.898.,6/49-!
:;!'($)*+! 91.//7! 2,04/6! 2-.370461! 2/.-//.66-417! 21-.,-0./6/48-!
#+)?%!'($)*+! 09.//-! 20794,,! 26./634/8! 2-/.361./8/49,! 289.,8/.60-418!
@;A#$;#B!'($)*+!5(%)! 66.688! 2094/7! 2-6.91,4/0! 2,73.7364/9! 2683.-3,./3/4--!
@;A#$;#B!'($)*+!:;!+(!
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D$EFCJ$EF! 6-.,--! 2--4,-! 21014-0! 269/.60948-! 2-0.8--.3-84/0!
K$#**%#BL)$F! 67.183! 27,401! 27,401! 26.887.19,4/6! 26.887.19,4/6!
MN$;JE%+E$)! -.-73! 267473! 207413! 209.91,430! 2/,.-39493!
5#*+E$)! 61.8/9! 21469! 21469! 2-1,.,8348,! 2-1,.,8348,!
O$F#B!K$))B!CA#J)! 68.019! 2-.6,8406! 2/.,/04-3! 201.697./-/430! 2-0/.90,.90848,!
P)#JD! 6! 266.090406! 28-.96843-! 20,.00343/! 2-01.-9-4,8!
#%+!:#$*D! -.6-9! 20984,/! 2--/.,074/8! 2/01.3-6413! 2-07./9/.010477!
*+E#$!G#+)$*! -.7-6! 2-8416! 2-.81849-! 209.13-4//! 20.9,6.97-4-6!
:#$;B)!G#+)$*! 0.337! 269740/! 2,,6418! 2,83.09/431! 26.06/.77/4-6!
*+,)-2! 99:;! ! ! :=;???;???! 9;@??;???;???!
!
- 36. ©
2013
Earth
Economics
ES
in
Nisqually
Report-‐2009
High
$280
million
Low
$4.1
Billion
In yearly benefits
- 37. ©
2013
Earth
Economics
Part
III:
From
ValuaIon
to
Funding
Mechanisms
in
the
Nisqually
- 38. ©
2013
Earth
Economics
Copyright © 2011 Earth Economics
Applying
Ecosystem
Services
Identify
Value
Model and
Map
Analyze
Fund
What?
Why?
Result
- 39. ©
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
- 40. ©
2013
Earth
Economics
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
- 41. ©
2013
Earth
Economics
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)
- 42. ©
2013
Earth
Economics
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/
- 43. ©
2013
Earth
Economics
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
- 44. ©
2013
Earth
Economics
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.
- 45. ©
2013
Earth
Economics
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)
- 46. ©
2013
Earth
Economics
dbatker@eartheconomics.org
tstanton@eartheconomics.org