Exploring Incentive Based Policy Instruments for Achieving Conservation Objectives in the Beaver...
-
Upload
jocelyn-flowers -
Category
Documents
-
view
214 -
download
1
Transcript of Exploring Incentive Based Policy Instruments for Achieving Conservation Objectives in the Beaver...
Exploring Incentive Based Exploring Incentive Based Policy Instruments for Policy Instruments for Achieving Conservation Achieving Conservation Objectives in the Beaver Objectives in the Beaver
Hills.Hills.Presentation to BHI BoardPresentation to BHI Board
June 13, 2007June 13, 2007
Marian WeberMarian WeberAlberta Research CouncilAlberta Research Council
Objectives of the StudyObjectives of the Study
Evaluate incentive based policies Evaluate incentive based policies available to local government to available to local government to achieve ecological objectives in the achieve ecological objectives in the BHIBHI
Build partnerships to further explore Build partnerships to further explore key policy initiativeskey policy initiatives
Municipal Planning Municipal Planning IssuesIssues
How much development to allow and How much development to allow and where to allow it to occurwhere to allow it to occur
How to accommodate growth How to accommodate growth without increasing the amount of without increasing the amount of developed land or overextending the developed land or overextending the infrastructure within their infrastructure within their jurisdictions.jurisdictions.
Municipal Planning Municipal Planning ToolsTools
ZoningZoning Density Limits Density Limits
number and size of subdivision units; number and size of subdivision units; number of buildings per ha. number of buildings per ha.
Limits on Types of ActivityLimits on Types of Activity
ThresholdsThresholds Total number of upgradersTotal number of upgraders Total number of emissionsTotal number of emissions No Net Loss of wetlandsNo Net Loss of wetlands
Conservation Easements, Environmental Conservation Easements, Environmental ReservesReserves
ProblemsProblems
Rent SeekingRent Seeking High Administrative CostsHigh Administrative Costs FairnessFairness InefficientInefficient
Market Based ToolsMarket Based Tools
Used to Used to supportsupport planning tools planning tools Price Based ToolsPrice Based Tools
Development FeesDevelopment Fees Tax CreditsTax Credits
Quantity Based ToolsQuantity Based Tools Transferable Development CreditsTransferable Development Credits Mitigation BankingMitigation Banking Easements/Purchase of Development Easements/Purchase of Development
Rights (PDRs)Rights (PDRs)
Transferable Development Transferable Development Rights/CreditsRights/Credits
Allow private landowners in areas Allow private landowners in areas designated for conservation to sell designated for conservation to sell development credits to developers development credits to developers in areas designated for more in areas designated for more intensive developmentintensive development
Private landowners receive the Private landowners receive the financial benefit of development of financial benefit of development of their land while preserving it in its their land while preserving it in its desired state desired state
TDC programs are TDC programs are completely completely voluntaryvoluntary
TDC RequirementsTDC Requirements
Identification of sending area(s) to be Identification of sending area(s) to be protected,protected,
Identification of receiving area(s) to Identification of receiving area(s) to be developed,be developed,
Transferable credits that symbolize Transferable credits that symbolize and quantify the development rights and quantify the development rights being soldbeing sold
An administrative procedure for An administrative procedure for carrying out the transaction.carrying out the transaction.
Identification of Sending Identification of Sending and Receiving Areasand Receiving Areas
Needs to be tied to program Needs to be tied to program objectivesobjectives
More than one goal can be More than one goal can be accomplished by a single TDR accomplished by a single TDR programprogram Farmland, Timberland, and Open Space Farmland, Timberland, and Open Space
PreservationPreservation Corridor PreservationCorridor Preservation Environmental ProtectionEnvironmental Protection Historic PreservationHistoric Preservation Affordable HousingAffordable Housing
Examples Examples (Dorfman et al. 2005)(Dorfman et al. 2005)
Historic PreservationHistoric Preservation TDCs awarded to historic properties TDCs awarded to historic properties
Affordable HousingAffordable Housing Density bonuses can be designed so that builders of affordable rental or owner-occupied Density bonuses can be designed so that builders of affordable rental or owner-occupied
housing units receive additional density in exchange for some enforceable mechanism to housing units receive additional density in exchange for some enforceable mechanism to ensure the built housing is affordable ensure the built housing is affordable
Farmland, Timberland, and Open Space PreservationFarmland, Timberland, and Open Space Preservation Sending area could be AR zones. Sending area could be AR zones.
Corridor PreservationCorridor Preservation undeveloped land along major habitat corridors designated as sending areas; undeveloped land along major habitat corridors designated as sending areas;
Environmental ProtectionEnvironmental Protection Environmentally sensitive areas or area covered by regulations such as stream buffer Environmentally sensitive areas or area covered by regulations such as stream buffer
requirementsrequirements
Receiving areasReceiving areas Selected by any criteria while abiding by other regulatory requirements (e.g. runoff Selected by any criteria while abiding by other regulatory requirements (e.g. runoff
management) management) Typically include commercial and residential zones, including CR zonesTypically include commercial and residential zones, including CR zones
Potential Sending and Receiving Areas for Potential Sending and Receiving Areas for Preservation of Open Space and agricultural Preservation of Open Space and agricultural
landscapeslandscapes
Environmentally Sensitive Areas – Environmentally Sensitive Areas – potential sending areas and credit potential sending areas and credit
allocationallocation Sending areas based on Ecological Sending areas based on Ecological
Functional Zones (EFZs) based on: air Functional Zones (EFZs) based on: air quality, surface water, groundwater, quality, surface water, groundwater, biodiversity (core biodiversity area), and biodiversity (core biodiversity area), and habitat connectivity;habitat connectivity;
Credit allocation based on ecological Best Credit allocation based on ecological Best Practices specific to each EFZ that will Practices specific to each EFZ that will permit the identification of appropriate permit the identification of appropriate decisions and management actions at a decisions and management actions at a strategic level and at specificstrategic level and at specific
Calculating Credits, Prices, Calculating Credits, Prices, and Bonusesand Bonuses
CreditCredit number of TDCs allocated to land owners to sell number of TDCs allocated to land owners to sell
in the sending areain the sending area Based on zoning (1-1 ratio or higher) Based on zoning (1-1 ratio or higher)
Transfer rateTransfer rate number of TDCs required to build an additional number of TDCs required to build an additional
unit of development in the receiving areaunit of development in the receiving area BonusBonus
additional development that can be achieved at additional development that can be achieved at a receiving site through purchasing TDCs a receiving site through purchasing TDCs
Bonus CalculationsBonus Calculations ExamplesExamples
floor area ratiofloor area ratio height height parkingparking landscapinglandscaping subdivision limitssubdivision limits minimum lot areaminimum lot area open space requirementsopen space requirements frontage regulations.frontage regulations.
This flexibility is an important aspect This flexibility is an important aspect of TDCsof TDCs
Balancing Demand and Balancing Demand and SupplySupply
Allocate sufficient TDCs in the sending Allocate sufficient TDCs in the sending area to keep TDCs affordable for receiving area to keep TDCs affordable for receiving area developers while also offering area developers while also offering sufficient compensation for sending area sufficient compensation for sending area landowners.landowners. Potential market for TDCs linked to number of Potential market for TDCs linked to number of
building permits required in a year building permits required in a year Willingness to pay for TDCs – how much are Willingness to pay for TDCs – how much are
developers willing to pay for an additional developers willing to pay for an additional single family unit of housing? Or for a multi-single family unit of housing? Or for a multi-family unit?family unit?
Fiscal ImpactFiscal Impact
Tax base follows the creditTax base follows the credit Decrease in development value in Decrease in development value in
sending areas but increase in sending areas but increase in development value for the receiving development value for the receiving areaarea
Property value increases in receiving Property value increases in receiving areas (e.g. 10% - Dorfman et al. areas (e.g. 10% - Dorfman et al. 2005)2005)
Impacts on Affordable Impacts on Affordable HousingHousing
Policies such as TDR programs do not Policies such as TDR programs do not generally help or hurt housing affordability.generally help or hurt housing affordability. Bonuses can be designed to have a positive Bonuses can be designed to have a positive
impact on the supply of affordable housing. impact on the supply of affordable housing. E.g. a TDC could be worth two units of extra housing E.g. a TDC could be worth two units of extra housing
rather than 1 if the units are “affordable,” rather than 1 if the units are “affordable,” Enforcement issues Enforcement issues
Research shows that only exclusionary zoning Research shows that only exclusionary zoning type policies such as large minimum lot sizes type policies such as large minimum lot sizes have negative impacts on the affordability of have negative impacts on the affordability of housing in a community (Dorfman et al. 2005). housing in a community (Dorfman et al. 2005).
Regional ImpactsRegional Impacts Leapfrogging a problem with some TDR Leapfrogging a problem with some TDR
programsprograms Historically not a problem with mitigation banking Historically not a problem with mitigation banking
and development impact feesand development impact fees Mitigation banks instituted over larger regions than Mitigation banks instituted over larger regions than
TDRsTDRs Cross county TDC programsCross county TDC programs
May enhance demand/supplyMay enhance demand/supply E.g. New Jersey Pinelands program spans 56 municipalities E.g. New Jersey Pinelands program spans 56 municipalities
and is managed by the regional Pinelands Commission and is managed by the regional Pinelands Commission made up of representatives of the jurisdictions. made up of representatives of the jurisdictions.
E.g. Boulder County, Colorado allows transfers between E.g. Boulder County, Colorado allows transfers between Boulder County and its cities. Boulder County and its cities.
Administrative Administrative RequirementsRequirements
Calculation method for sending Calculation method for sending areas/areas/
Issuance of TDR certificatesIssuance of TDR certificates Recording TDR TransactionsRecording TDR Transactions Deed of TransferDeed of Transfer
TDC BanksTDC Banks Governmental or non-profit entities created Governmental or non-profit entities created
to facilitate the exchange of TDCsto facilitate the exchange of TDCs central clearinghouse with information about all central clearinghouse with information about all
available TDRs available TDRs May be given authority to purchase and hold TDCs May be given authority to purchase and hold TDCs
BenefitsBenefits Smooth the trading of TDCsSmooth the trading of TDCs Stabilize the price, and provide additional liquidity Stabilize the price, and provide additional liquidity
to the marketto the market Can speed land preservation by buying substantial Can speed land preservation by buying substantial
numbers of TDCs shortly after initiation of the numbers of TDCs shortly after initiation of the programprogram
Lessons LearnedLessons Learned
Programs that are SuccessfulPrograms that are Successful when demand for development is high and when demand for development is high and
market participants are motivated to market participants are motivated to participate. participate.
creation of adequate receiving areas (beware creation of adequate receiving areas (beware of NIMBY)of NIMBY)
Not used to save areas that are under Not used to save areas that are under immediate threat of developmentimmediate threat of development
E.g. land bordering urbanizing areasE.g. land bordering urbanizing areas Land with high development value forces the Land with high development value forces the
allocation of high numbers of TDCs to this land to allocation of high numbers of TDCs to this land to motivate owner participation. motivate owner participation.
Lessons LearnedLessons Learned
Programs that have less successPrograms that have less success developers are satisfied with development developers are satisfied with development
densities allowed by the existing zoning codedensities allowed by the existing zoning code variances allowing greater density are easily variances allowing greater density are easily
obtained making the use of TDCs obtained making the use of TDCs unnecessaryunnecessary
developers use other methods for achieving developers use other methods for achieving density such as clustering/conservation density such as clustering/conservation subdivisionssubdivisions
Statutory requirements to hold public Statutory requirements to hold public hearings for transfershearings for transfers
Other InstrumentsOther Instruments
Purchases or Development Purchases or Development Rights/Purchases of Rights/Purchases of Conservation EasementsConservation Easements Conservation Easement Tax Incentive Conservation Easement Tax Incentive
Program (Federal pilot program in US)Program (Federal pilot program in US) New York State Income tax program New York State Income tax program Used in conjunction with TDR programsUsed in conjunction with TDR programs
Other InstrumentsOther Instruments
Mitigation BankingMitigation Banking Developers obligation to mitigate the negative Developers obligation to mitigate the negative
impacts of development (wetlands and impacts of development (wetlands and endangered species habitat)endangered species habitat)
When a developer restores a degraded wetland or When a developer restores a degraded wetland or permanently protects an intact wetland, these permanently protects an intact wetland, these compensation wetlands are referred to as credits. compensation wetlands are referred to as credits.
In some regions private entrepreneurs have In some regions private entrepreneurs have started creating wetlands credits that they then started creating wetlands credits that they then sell to developers in need of mitigation credits sell to developers in need of mitigation credits
Transactions are administered through mitigation Transactions are administered through mitigation banksbanks
Other InstrumentsOther Instruments
Development Impact FeesDevelopment Impact Fees Upfront charges applied to new developments Upfront charges applied to new developments
to cover the cost of providing public services to cover the cost of providing public services such as roads, sewers and schools. such as roads, sewers and schools.
Purpose: reduce incentives for development Purpose: reduce incentives for development and cover full social costsand cover full social costs
Can be used in conjunction with TDCs - Can be used in conjunction with TDCs - developers who seek additional development developers who seek additional development density are simply required to pay a “sending” density are simply required to pay a “sending” fee which would go to a government agency or fee which would go to a government agency or another intermediary to purchase TDCsanother intermediary to purchase TDCs
Other InstrumentsOther Instruments Tax IncentivesTax Incentives
Use-value assessments Use-value assessments typically used to slow rates typically used to slow rates of agricultural land conversion to non-agricultural of agricultural land conversion to non-agricultural uses by assessing farmland at lower tax ratesuses by assessing farmland at lower tax rates
Mixed views on whether property tax relief is effective Mixed views on whether property tax relief is effective (Simpson 2002; Nickerson and Lynch 2001)(Simpson 2002; Nickerson and Lynch 2001)
Income tax incentives thought to be more effective Income tax incentives thought to be more effective (Simpson 2002) (Simpson 2002)
Potential loss of revenue for municipal governments is a Potential loss of revenue for municipal governments is a barrier to implementation. barrier to implementation.
Provincial grants in lieu to municipalities. Provincial grants in lieu to municipalities. Income tax incentivesIncome tax incentives
E.g. Conservation Easement Tax Incentive ProgramE.g. Conservation Easement Tax Incentive Program Municipalities have no control over income taxes in Municipalities have no control over income taxes in
Canada, this mechanism could not be relied on to Canada, this mechanism could not be relied on to achieve the land use objectives of the BHI.achieve the land use objectives of the BHI.
Review of EGS Programs in Review of EGS Programs in AlbertaAlberta
Ernie Ewaschuk (Land Stewardship Centre)Ernie Ewaschuk (Land Stewardship Centre) Reviewed 7 programsReviewed 7 programs
CWS Basin Easement Program (1967-70)CWS Basin Easement Program (1967-70) Red Deer Habitat Retention Program (1978-80)Red Deer Habitat Retention Program (1978-80) Landowner Habitat Program (1986-91)Landowner Habitat Program (1986-91)
Minburn, Red Deer, Bow River, EID (AFWS)Minburn, Red Deer, Bow River, EID (AFWS) Incentive contracts to curb habitat lossIncentive contracts to curb habitat loss
North American Waterfowl Management Plan (1986+)North American Waterfowl Management Plan (1986+) Purchase/lease of development rights/paymentsPurchase/lease of development rights/payments
Barrhead Partners in Conservation (1989+)Barrhead Partners in Conservation (1989+) Tax rebate on habitat landsTax rebate on habitat lands
MD Rockyview Municipal Tax Incentive Program (1993-MD Rockyview Municipal Tax Incentive Program (1993-1996)1996)
Tax incentive for conservation tillageTax incentive for conservation tillage
Review of EGS Programs in Review of EGS Programs in AlbertaAlberta
Lessons LearnedLessons Learned Flexibility important (Landowner Habitat Program)Flexibility important (Landowner Habitat Program) Emphasize multiple benefits/objectives (Landowner Habitat Emphasize multiple benefits/objectives (Landowner Habitat
Program)Program) Random selection of habitat reduces performance of program Random selection of habitat reduces performance of program
(Red Deer Habitat Retention Program)(Red Deer Habitat Retention Program) Incentive payments need to be high enough to change behavior Incentive payments need to be high enough to change behavior
(Red Deer Habitat Retention Program)(Red Deer Habitat Retention Program) Education and awareness increases success (NAWMP)Education and awareness increases success (NAWMP) Tax base losses in Barrhead program minimal (Barrhead Tax base losses in Barrhead program minimal (Barrhead
program)program) Landowner support/changes in behavior (Barrhead program)Landowner support/changes in behavior (Barrhead program) Conflicts with other incentives/programs for agricultural Conflicts with other incentives/programs for agricultural
development (Basin Easement Program)development (Basin Easement Program) Unanticipated consequences of pre-emptive destruction from Unanticipated consequences of pre-emptive destruction from
payment programs (Basin Easement Program)payment programs (Basin Easement Program) Agricultural incentive payments for BMPs work (Rockyview Agricultural incentive payments for BMPs work (Rockyview
Program)Program)
Price Based ToolsPrice Based Tools Quantity Based ToolsQuantity Based Tools
DevelopmeDevelopment nt Charges/In Charges/In lieu feeslieu fees
Tax Tax CreditsCredits
TDCsTDCs Mitigation Mitigation BankingBanking
Easements Easements and PDRsand PDRs
Voluntary vs Voluntary vs InvoluntaryInvoluntary
InvoluntaryInvoluntary VoluntaryVoluntary VoluntaryVoluntary InvoluntaryInvoluntary VoluntaryVoluntary
Municipal Municipal Fiscal Fiscal ImpactImpact
PositivePositive NegativeNegative
- Municipal - Municipal grants in grants in lieulieu
LowLow PositivePositive NegativeNegative
Threshold Threshold BasedBased
NoNo NoNo YesYes YesYes NoNo
FlexibilityFlexibility Differentiate Differentiate by activity by activity and impactand impact
DifferentiatDifferentiate by land e by land useuse
Multiple Multiple objectives objectives for for conservation conservation and and developmentdevelopment
Usually Usually single single objective objective (wetlands)(wetlands)
Multiple Multiple objective for objective for conservationconservation
AdministratiAdministrative ve RequiremenRequirementsts
Monitor land Monitor land useuse
Monitor Monitor land useland use
TDC TDC RegistryRegistry
ZoningZoning
Bonus/Credit Bonus/Credit calculatorcalculator
Offset Offset RegistryRegistry
Offset Offset calculatorcalculator
CertificationCertification
Impact on Impact on GrowthGrowth
NegativeNegative Negative Negative (low?)(low?)
Transfer of Transfer of growth growth versus limitversus limit
NegativeNegative Negative Negative (low?)(low?)
Next Steps for TDCsNext Steps for TDCs Detailed evaluation of potential goals and Detailed evaluation of potential goals and
identification of sending/receiving area identification of sending/receiving area options based on BHI Phase 2 plan and public options based on BHI Phase 2 plan and public inputinput
Economic analysis and potential design issues Economic analysis and potential design issues related to market size, supply, and demand;related to market size, supply, and demand;
Process for seeking public input and Process for seeking public input and recommendations on design from landowners recommendations on design from landowners and developersand developers
Evaluation of legal and administrative optionsEvaluation of legal and administrative options Education and awarenessEducation and awareness
ConclusionsConclusions Many jurisdictions struggling with these issues in Many jurisdictions struggling with these issues in
AlbertaAlberta OpportunitiesOpportunities
Landuse FrameworkLanduse Framework Review of MGAReview of MGA Institute for Agriculture, Forestry and the Environment to Institute for Agriculture, Forestry and the Environment to
identify market-based solutions to increase environmentally identify market-based solutions to increase environmentally sound practices in the renewable resource sectorssound practices in the renewable resource sectors
Partners/Shared Experience and LearningPartners/Shared Experience and Learning Red Deer County/Mistakis InstituteRed Deer County/Mistakis Institute Southern Alberta Land Trust/ALTA/NGOsSouthern Alberta Land Trust/ALTA/NGOs Watershed groups/Basin councilsWatershed groups/Basin councils FoundationsFoundations
ThreatsThreats Pace of development, affordabilityPace of development, affordability
Key ReferencesKey References Dorfman, Jeffrey, et al. 2005. The feasibitliy of Dorfman, Jeffrey, et al. 2005. The feasibitliy of
a transferable development rights program for a transferable development rights program for Athens Clarke County Georgia, Alliance for Athens Clarke County Georgia, Alliance for Quality Growth, University of Georgia.Quality Growth, University of Georgia.
University of Georgia Land Use Clinic University of Georgia Land Use Clinic http://www.law.uga.edu/landuseclinic/index.hthttp://www.law.uga.edu/landuseclinic/index.htmlml
Fulton, William, Jan Mazurek, Rick Pruetz, and Fulton, William, Jan Mazurek, Rick Pruetz, and Chris Williamson. 2004. TDRs and other Chris Williamson. 2004. TDRs and other market-based land mechanisms: How they work market-based land mechanisms: How they work and their role in shaping metropolitan growth. and their role in shaping metropolitan growth. Washington, DC: The Brookings InstitutionWashington, DC: The Brookings Institution
Thank youThank you
Max Bell Foundation, DUC, BHIMax Bell Foundation, DUC, BHI ContactContact
Marian WeberMarian Weber
Alberta Research CouncilAlberta Research Council
250 Karl Clark Road250 Karl Clark Road
Edmonton, Alberta T6N 1E4Edmonton, Alberta T6N 1E4
780-450-5193780-450-5193