Northern Forest Watershed Incentives Project:

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1 Northern Forest Watershed Incentives Project: Using Incentives to Connect Forests, Water, and Communities ACES Todd Gartner, M.F. Senior Associate Conservation Incentives and Markets December 9, 2010

2 The has four programs

3 Future of US Forests Rests in the Hands of Private Landowners Source: Margaret Munford, American Forest Foundation

4 The water we drink and utilize may be our most important connection to the forest. Source: Forests to Faucet Partnership

5 Northern Forest Watershed Incentives Project Goals and Funding Develop a replicable marketbased model for transactions to protect and enhance watershed services in two important watersheds in Northern Forest Highlight and enhance the connection between upstream family forest owners and downstream water users Source: Margaret Munford, American Forest Foundation

6 Making the Case Priority watersheds Defining the threats Understanding beneficiaries and marketplace drivers Practices and incentives What do we get for the $? Telling the story

7 GIS Threat Assessment Watershed Prioritization

8 Crooked River Watershed THE WESTERN FOOTHILLS LAND TRUST

9 Upper Connecticut River Watershed

10 Summary of Watershed Concerns Forest conversion and fragmentation Sedimentation in tributaries Nonpoint source pollution Pollution from aging municipal water treatment plants or overflow during storm events Proposed dam construction Loss of flood plains Invasive species Loss of biodiversity Adverse effects related to climate change

11 Vision of a Watershed Services Marketplace Sellers Products Users Water District/Utility Rate Payers, Comm. Users Stewardship Incentive Fund Recreation Industry NRCS EQIP Dedicated Pool Buyers/ $ Sources State/Town/ ENGO Current Use Tax Zoning/TDR Easements Restoration Improved Practices Preservation Mitigation Funds In-Lieu Fee Compensation Program (ME DEP/TNC)

12 Demand Drivers Regulatory Driver Review for VT, NH, ME VT Law School Land Use Institute Incentive Mechanisms Case Study Analysis VT Law School Land Use Institute Yale School of Forestry Partnerships National Watershed Networks Sharing Results for Replication Good and Bad

13 Beneficiaries Need to know: Who uses the water How they use it How they benefit from clean water How they fit into a broadly-defined market framework

14 What can we do? Example Practices Riparian Buffer Culverts and Drainage Improvements Vegetative Cover Increase width beyond statutory minimums Increase forest cover within buffer (afforestation) Resize culvert Rehabilitate drainage and vegetative buffers Forest cover replaces agriculture or other land cover Road Retirement Silvicultural Practices Road Network Discontinue non-essential forest or agricultural roads Higher retention Low-impact equipment (reduce rutting) Upgrade road network Permanent bridges Manomet Natural Capital Initiative

15 Where should we focus our $ and effort? Soils (1/2 weight) Landscape characteristic Land use Distance to streams (feet) Distance to ponds/wetlands(feet) Depth to water table Permeability s Conservation Priority Index (CPI) - prioritization of parcels Conducted By - Bill VanDoren, & Paul Barten, UMass Slope Water Forest Roads f Increasing importance Decreasing importance

16 Registry System and Verification & Monitoring

17 Watershed Incentives Framework Development

18 Fundamental Challenges Making the case when most beneficiaries don t know there is a problem (or soon will be) Communicating the complexities to BOTH the buyers and sellers Assuring that we get what we pay for, and can keep it Creating self-sustaining systems (that can last until we get to Capitalism 3.0)

19 Advisory Committee Al Todd - USDA Office of Environmental Markets Bobby Cochran Willamette Partnership Brad Gentry Yale School of Forestry and Environmental Studies David Sleeper Hubbard Brook Research Foundation Will Price Pinchot Institute/Bay Bank James Remuzzi Sustainable Solutions, LLC Jerry Greenberg American Forest Foundation Joe Short Northern Forest Center John Gunn Manomet Center for Conservation Sciences Kinvin Wroth Vermont Law School Land Use Institute Katherine Garvey Vermont Law School Land Use Institute Lee Dasler Western Foothills Land Trust Mary Russ White River Partnership Paul Barten UMASS-Amherst/Forest to Faucet Partnership Paul Hunt Portland Water District Peter Stangel U.S. Endowment for Forestry and Communities Todd Gartner Tracy Stanton Forest Trends Tom O Brien The Network of Oregon Watershed Councils Josh Donlan Advanced Conservation Strategies Wayne Barstad Dartmouth College Kelly Hart Trust for Public Lands Technical Committees local experts and stakeholders in each watershed

20 Where We re Going Green vs. Gray Infrastructure analysis Leveraging other ES Revenue Streams (e.g., carbon $ for riparian restoration) Outreach and Education Demonstrate/Transactions

21 Market Transaction: Trees for Miles

22 Market Transaction: Landscape Auction $20,000 raised 30 projects adopted

23 Questions and Discussion Source: Margaret Munford, American Forest Foundation Todd Gartner, Senior Associate, Conservation Incentives & Markets People & Ecosystems Program