Investing in natural infrastructure for drinking water: Reporting on lessons from Colorado and the USA

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1 Investing in natural infrastructure for drinking water: Reporting on lessons from Colorado and the USA April 8, 2016 Heidi Huber-Stearns Institute for a Sustainable Environment, University of Oregon

2 Presentation roadmap 2 Background: defining watershed investments, explanation of projects Findings: Forested source water protection across US Colorado findings Overall lessons Conclusions

3 Investments in Watershed Services 3 Agreements or transactions between two or more parties that compensate a land manager for restoring, maintaining or enhancing the natural infrastructure that maintains clean water supplies Bennett & Carroll, 2014) Global IWS tracked in 2013: Active Pilot Design Transaction value: $12.3 billion 345 Hectares managed: 365 million Total: 454 Bennett & Carroll, 2014

4 Investments in Watershed Services IWS) 4 Upstream Population Suppliers) Figure Source: Forest Trends

5 µ µ OR ID WY WY CO NV UT 2014 Programs CO AZ CA Pacific Ocean Program In Design Program In Design AZ Demonstration/Pilot Program Active Program Mexico Regional Program 0 Statewide Program Program Count Program Count 4-6 Active Program Pacific Ocean Program Mexico In Design Statewide Program NM Demonstration/Pilot Program Miles 1-3 Program Count Active Program 4-6 Program In Design Demonstration/Pilot Program Active Program Regional Program Program Count 2014 Programs 5 AZ 1:11,000, Regional Program 7-11 MexicoStatewide Program Statewide Program Author: Katherine Sever Colorado State University Projection: North America Albers Equal Area Conic Date: 04/20/ :11,000,00 Mexico Programs Regional Program Demonstration/Pilot Program NM UT CA NV AZ As of 2014: 48 active programs 12 pilot or design programs 2014 Programs Program Status and Scale Pacific Ocean ID Pacific MT Ocean OR MT Canada CA WA WA Canada IWS in the Western US :11,000,000 Author: K Colorado S 200 Miles Projection: Albers Eq Da Author: Katherine Sever Colorado State University Projection: North America Albers Equal Area Conic Date: 04/20/2015

6 The need for new approaches & research 6 In response to complex water resource issues, new partnerships and programs have emerged, such as IWS Research studying programs: What works, what mechanisms are being used? Colorado: most watershed protection partnerships in the western US

7 Research Projects 7 Dissertation research: Investments in watershed services: Understanding a new arena of environmental governance in the western US World Resources Institute: Analysis & support tools for investment-based forested source water protection programs Colorado case studies US case studies WRI Report: Investing In Natural Infrastructure for Drinking Water: Lessons from 13 Watershed Investment Programs in the US Authors: Suzanne Ozment, Heidi Huber-Stearns, Todd Gartner, and Nathaniel Lichten

8 I. Forested Source Water Protection 47 identified source water protection IWS programs: 35 programs in forested watersheds Main drivers: Catastrophic ecological events Consequences of land use change

9 Forested Source Water Protection in the US 9 Forested Drinking Water Programs by Region Midwest 6% Multiple 3% East 26% Arid West/SW 37% Pacific Northwest 28%

10 Forested Source Water Protection Challenges Lack of buyers/investors 40% Lack of policy/decision-maker support Perceived lack of direct benefit 30% 20% 10% 0% Raising initial capital Lack of suppliers Regulatory uncertainty Lack of scientific data on outcomes

11 II. Western US: Forested Source Water Protection 11 Number of Programs o o o Program Totals: 19 active 4 pilot 1 design 0 State

12 Western US: Source Water Protection Types Watershed restoration, risk reduction 2. Watershed protection 3. Water flow restoration

13 13 Source Water Protection Types: 1. Watershed Restoration, Risk Reduction Main Drivers: wildfires and subsequent flooding Management actions: forested watershed treatments Land type: mainly public, some private Photo from Denver Water

14 14 Source Water Protection Types: 2. Watershed Protection Main driver: mix of land development, recreational usage, forest health protection Management actions: land acquisition, patrols, easements Land type: municipality, public, private

15 15 Source Water Protection Types: 3. Water Flow Restoration Main Drivers: competing water uses, changes in climate affecting available water supplies Management actions: purchasing water leases and rights to improve water flow quality and quantity) Land type: mainly private landowner water rights Kingdon, 2003

16 Watershed Wildfire Protection Partnerships WPPs) in Colorado 16 WY WY NB UT UT WY Denver UT ^Aurora Denver WY NB NB UT Fort Collins Loveland CO AZ NM WY NB OK OK NM ^ UT Denver ^ TX Aurora Water - USFS Aurora Water-USFS Aurora Water - USFS WY WY UT KS CO AZ AZ OK NM NM KS AZ TX TX Pueblo Board of Water Works - USFS WY NB WY UT UT ^Denver ^Denver Springs CO KS OK Pueblo Board of Water Works-USFS µ HUC 8NB Watershed Boundary :8,000, Miles ^Denver CO NM Denver Water - USFS AZ TX KS OK NM Denver Water-USFS Denver Water - USFS CO NM TX OK Springs TX KS Colorado Springs Utilities - USFS AZ OK NM Colorado Springs Utilities-USFS Colorado Springs Utilities - USFS Colorado Watershed Protection Partnership HUC 8 Watershed Boundary :8,000,000 KS AZ TX Pueblo Board of Water Works - USFS Colorado AZ NM Colorado Watershed Protection Partnership ^Denver Colorado CO µ OK OK NM Colorado-Big Thompson NB Pueblo Pueblo OK AZ TX Colorado - Big Thompson Headwaters KS Colorado - Big Thompson Headwaters NB UT CO KS TX Denver ^Denver CO KS KS NB UT CO CO AZ Fort Collins Loveland ^Denver ^Aurora WY NB TX Author: Katherine Sever Colorado State University Projection: North America Albers Equal Area Conic Date: 04/16/ Miles

17 Watershed Protection Partnerships Buffalo Creek Fire Hayman Fire Formation of the Front Range Fuels Treatment Partnership Pinchot: Protecting Front Range Forest Watersheds from High-Severity Wildfires Watershed Wildfire Protection Group: Watershed Prioritization Denver Water-US Forest Service Partnership Aurora Water-US Forest Service Partnership High Park Fire Waldo Canyon Fire Northern Water Conservancy District, US Forest Service, Bureau of Reclamation, and Colorado State Forest Service Partnership Pueblo Board of Water Works-US Forest Service Partnership Black Forest Fire Colorado Springs Utilities-US Forest Service Partnership

18 WPP formation 18 Wildfires created window of opportunity to: Generate political support Form coalitions for collaborative learning Craft responses solutions) Key individuals within organizations were crucial to partnership formation

19 Innovation & adaptation 19 The unpredictability of disasters leaves decision makers with challenges to which they do not have a pre-formed response WPPs = recombination of existing ideas to forge novel solutions and partnerships All of these changes show innovation and adaptation in managing natural resources

20 III. Forested Source Water Protection Case Studies 20 World Resources Institute Report: Investing In Natural Infrastructure for Drinking Water: Lessons from 13 Watershed Investment Programs in the US -Ozment, Huber-Stearns, Gartner, and Lichten in review, to be released summer 2016)

21 Key lessons from watershed investment programs New or unlikely partnerships to address shared risks No blueprint Learning and adaptation Quantifying and measuring program performance can be key to program longevity

22 Key lessons from watershed investment programs: Report structure Building Momentum Identifying a need and purpose for the program, and securing commitment from the necessary partners Designing the Program Assessing the scientific and economic underpinnings of the program, and creating a strategy to achieve program goals Implementing an Action Plan Putting action on the ground by investing in natural infrastructure and tracking results

23 Key lessons: Building momentum 1. Identifying risks and opportunities to rally support 2. Building partnerships to fill essential roles and responsibilities 3. Creating a shared vision of success 4. Cultivating champions and advocates

24 Key lessons: Designing the program 5. Developing a scientifically based plan to prioritize where and how to improve watershed management 6. Evaluating the business case for investment return on investment) 7. Identifying funding and financing mechanisms

25 Key lessons: Implementing an action plan 8. Managing and administering a program 9. Engaging landowners to protect and restore natural infrastructure 10. Monitoring and evaluating program performance

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