Eco-Enterprise Zones: An idea looking for a home
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1 Eco-Enterprise Zones: An idea looking for a home A Community on Ecosystem Services Conference Chandler, AZ Nov 2010 Albert Todd, Chesapeake Bay Team Leader USDA
2 We will not be able to sustain our businesses over the long haul because they are based on assumptions that no longer hold. One was cheap, unlimited supplies of non-renewable resources would always be available. The other was assuming an unlimited capacity for the earth's ecosystems to absorb the waste of our production and consumption. Chad Holliday, CEO, DuPont (2001)
3 Environmental markets offer farmers and ranchers new sources of revenue that also create public benefits for all Americans, such as clean water, clean air, and wildlife habitat. USDA Secretary Tom Vilsack, 2009
4 "The most urgent priority is to put into practice what we already know, with all the accompanying warts. We must learn by doing and mistakes will be made, but we cannot afford to wait for certainty. because doing better today is more important than doing the best tomorrow." Craig Cox, SWCS, 2006
5 History of Enterprise Zones 1967 Bill introduced by Sen. Robert Kennedy 1970 s first zones established in the UK (Peter Hall) 1980 Federal regs (HUD); 1981 first State EZs 1993 Federal tax code revisions stimulated additional push for use of targeted business incentives in US Over 450 cities and 26 States have EZ policies
6 Types of Enterprise Zones Urban enterprise zones trigger business investment in blighted or depressed areas Manufacturing enterprise zones to group businesses and enhance job training Science and Technology Enterprise Zones Silicon Valley and Denver Tech Center Empowerment Zones and Enterprise Communities USDA Rural Development long-term rural sustainability and diversification
7 Types of Incentives Highly diverse and sometimes localized Tax waivers, credits (capital gains, investment tax credit, accelerated depreciation, hiring Financing low or no interest loans, endowments Regulatory licensing requirements, permit exemptions, streamlining review, alignment of federal, state, and or local. Job training and housing subsidies
8 Environmental Markets can help Reduce overall costs of restoration Target and prioritize conservation actions Facilitate private investment Create business opportunities Retain working lands by expanding revenue portfolio Improve accountability by measuring the products of conservation and restoration
9 An Eco-Enterprise Zone is. a designated geographic area where economic growth and ecological restoration are linked through business, community development and conservation incentives. Target areas with a growing population need for economic development and job creation critical ecological/environmental restoration needs a supportive regulatory environment
10 Why Eco-Enterprise Zones? Stimulate the development of working models for environmental markets Restoration and conservation also require business development Like business, restoration investments have risk There is a need for green job creation
11 Business Infrastructure for Environmental Markets Buyers Business, sewage plants, cities, developers, private investors Trading Platform Landowners (Sellers) Aggregator Standards Entity Scientists, NGOs, & government Metrics Verifier Third party Credit Registry
12 Eco EZ Approaches Environmental Markets Tax Incentives Job and practice Incentives Regulatory Relief Financing Incentives
13 Elements of an Eco-Enterprise program Grants to coordinate comprehensive land use and watershed planning with state and federal programs Tax credits for business development in Eco-Enterprise Zones Development of ecosystem services markets providing additional revenues for local land owners. Targeted incentives for green job creation and job training New business tax credits and no interest loans for green industries that create jobs Support for community education and sustainability Support for environmental market design and infrastructure operation.
14 Benefits of Eco-Enterprise Zone Concept Accelerate testing of environmental market principles Economic benefits accrue in the same locality as ecological improvement. Local businesses pursue triple bottom line Ecological improvement linked to community wellbeing and stability. Business incentives tied to investments in land stewardship and ecological health. Slide 14
15 Experimental Program: Eco-Enterprise Zones would be selected through a competitive process Criteria for selection could include an ability to: use a multi-credit approach to ecosystem services; deliver strong local alliances with capacity for action; create new investments in conservation; engage local regulatory governance; define operational systems that connect providers and beneficiaries; deliver revenue directly to private landowners; have capacity to restore/conserve ecosystems and measure progress. Implementation would consist of a dedicated 5 year commitment of technical and financial assistance investments, tax incentives, and regulatory relief.
16 Eco-nomics 101 Jobs from Watershed Restoration University of Oregon study (2010) jobs per $M spent ($1 generated $2.40 in local spending) Humbolt University, CA study (2010) - 20 jobs per $1 million spent University of Massachusetts ARRA Study Highest number of jobs created from natural resource conservation and forestry 2-40 jobs per $M spent Freshwater Trust restoring 30,000 miles of stream would cost $1.5 billion but create 28,000+ jobs and $3 billion in local spending
17
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