Presentation Given By: Tracy Stanton, Earth Economics

1. ©
2013
Earth
Economics
Developing
New
Funding
Mechanisms
in
the
Nisqually
July 19, 2013

2. ©
2013
Earth
Economics

3. ©
2013
Earth
Economics
Built Capital Social Capital Human Capital Natural Capital
Four Types of Capital

4. ©
2013
Earth
Economics
Nisqually
Watershed
12
Ecosystem
Services
18
Land
Cover
types

5. ©
2013
Earth
Economics
Freshwater
Supply
© 2013 Earth Economics

6. ©
2013
Earth
Economics
Erosion
Control

7. ©
2013
Earth
Economics
Biological
Control

8. ©
2013
Earth
Economics
Flood
Protection
http://www.ucmp.berkeley.edu/glossary/gloss5/biome/wetlands/wetlandsgallery.htm

9. ©
2013
Earth
Economics
Nutrient
Cycling
http://www.plantanswers.com/Articles/DirectSeedingIntoGardenSoil.asp

10. ©
2013
Earth
Economics
Carbon
Sequestration
© 2012 Earth Economics

11. ©
2013
Earth
Economics
Soil Formation
hEp://www.trekearth.com/gallery/Asia/India/North/Jammu_and_Kashmir/Gurez/photo1160427.htm

12. ©
2013
Earth
Economics
Pollination
© 2012 Earth Economics

13. ©
2013
Earth
Economics
Wildlife
Habitat
http://robinloznakphotography.blogspot.com/2010/07/northern-spotted-owl.html

14. ©
2013
Earth
Economics
Aesthetic and
Recreation
© 2012 Earth Economics

15. ©
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

16. ©
2013
Earth
Economics
ES
in
Nisqually
Report-­‐2009
High
$280
million
Low
$4.1
Billion
In yearly benefits

17. ©
2013
Earth
Economics
Copyright © 2011 Earth Economics
Applying
Ecosystem
Services
Identify
Value
Model and
Map
Analyze
Fund
What?
Why?
Result

18. ©
2013
Earth
Economics
Copyright © 2011 Earth Economics
Stakeholders
Identify
Value
Model and
Map
Analyze
Fund
Watershed
Managers
U[li[es
Standards
Boards
Farmers
Government
Agencies
Business
Interests
Academic
Ins[tu[ons
Rural
Landowners
NGOs
Urban
Residents
Tribes

19. ©
2013
Earth
Economics
Overview
of
Project
Secure sufficient funding for the full-scale implementation of
the restoration of the Nisqually Watershed
hEp://www.wetlandsplendors.com/porbolio/allegheny-­‐river-­‐clearing-­‐storm-­‐2/

20. ©
2013
Earth
Economics
Goals
and
Outcomes
1.
Iden[fy
3-­‐5
poten[al
funding
mechanisms;
2.
Stakeholder
engagement
to
evaluate
the
funding
mechanisms
based
on
a
set
of
criteria;
3.
Of
the
3
selected
by
stakeholders,
provide
an
overview
of
economic
benefits
to
residents
and
the
implementa[on
strategy;
4.
Focus
on
one
mechanism
that
is
likely
to
be
implemented
within
one
year
ager
the
project
concludes.

21. ©
2013
Earth
Economics
Ques[ons
to
address…
1.
How
much
funding
is
needed?
A:
($3
million)
2.
How
much
funding
is
dedicated
to
habitat
restora[on
annually?
A:
($1
-­‐
1.5
million)
3.
Verify
the
scale
of
implementa[on
for
the
funding
mechanism
A:
(aiming
for
$1.5M
(new
sources
of
$$)
for
the
whole
watershed;
for
a
suite
of
ac[vi[es
and
needs
that
go
beyond
the
Salmon
Recovery
Plan).

22. ©
2013
Earth
Economics
List
of
Funding
Mechanisms
1.
Investment
in
Watershed
Services
(Payments
for
Ecosystem
Services)
2.
Regulatory
Markets:
trading,
offset
markets,
mi[ga[on
banking
3.
Special
Fees:
assessed
by
Park
Service
in
Mt.
Rainier
Na[onal
Park
4.
Taxes
5.
Watershed
Investment
District
6.
Conserva[on
Easements
&
Tradable
Development
Rights
7.
Loans:
State
Revolving
Loans
(low
interest)
8.
Grants
(from
Government,
NGOs,
Private
Founda[ons)
9.
Special
Purpose
Districts
(water,
stormwater,
conserva[on)
10.
Special
Purpose
Funds
(Eugene,
OR-­‐
Watershed
Investment
Fund)
11.
Voluntary
Offsets
(carbon,
in
stream
water
rights,
stormwater)

23. ©
2013
Earth
Economics
Poten[al
Funding
Mechanisms
for
Nisqually
1.
Watershed
Protec[on
Fee
(collected
by
water
u[lity)
2.
Watershed
Stewardship
Fee
(levied
upon
entrance
to
Mt.
Rainier
Na[onal
Park
and
Nisqually
Na[onal
Wildlife
Refuge)
3.
Watershed
Investment
District
(WID)
4.
Per
parcel
tax
assessment
or
“flush”
tax
(flat
rate
or
based
on
value:
i.e.
70,000
x
$30
=
$2,100,000)
5.
Voluntary
Offset
Fund
(for
water
use,
stormwater
or
biodiversity-­‐poten[ally
in
conjunc[on
with
large
ins[tu[onal
players
in
the
basin-­‐Joint
Base
Lewis-­‐McChord,
Tacoma
Power,
others)

24. ©
2013
Earth
Economics
1.
Watershed
Protec[on
Fee
(Driven
by
water
u[lity)

25. ©
2013
Earth
Economics
2.
Watershed
Stewardship
Fee
(Collected
upon
entrance
to
Mt.
Rainier
Na[onal
Park
and
Nisqually
Na[onal
Wildlife
Refuge)

26. ©
2013
Earth
Economics
3.
Watershed
Investment
District
(WID)

27. ©
2013
Earth
Economics
4. Special assessments (tax)
Per parcel: (i.e. $30 x 70,000 =
$2,100,000); flush tax

28. ©
2013
Earth
Economics
5.
Voluntary
Offset
Fund
Model:
Voluntary
Carbon
Offsets
used
for
biodiversity,
stormwater
or
water-­‐use
offsets
(opportunity
to
engage
across
the
watershed
including
with
large
ins[tu[onal
players
in
the
basin
such
as
Joint
Base
Lewis-­‐
McChord,
Tacoma
Power
and
others)

29. ©
2013
Earth
Economics
Stakeholder
Engagement
Evalua[on/Ra[ng
Criteria
of
the
FM:
• Equity/fairness
• Adequacy
to
generate
sufficient
revenue
• Poli[cal
feasibility
• Meets
outreach
and
educa[onal
goals
• Can
be
implemented
ager
one
year

30. ©
2013
Earth
Economics
Thank
You
tstanton@eartheconomics.org
lflores@eartheconomics.org