The Wisconsin Green Tier Program:

1. The Wisconsin Green Tier Program: Developing An Evaluation Tool Analysis by: Darryn Beckstrom, Jessalyn Frost, Erin Rushmer, and Melody Sakazaki

2. Overview • Purpose of Project • New Governance Model • Green Tier Background and History • Evaluation Criteria • Recommendations

3. Purpose • To develop a series of criteria to evaluate the Green Tier program, identify potential data sources, and construct a timeline for data collection Background Process Criteria Outcomes Criteria Recommendations

4. What is Green Tier? • Innovative environmental program • Encourages partnerships between Wisconsin Department of Natural Resources and Wisconsin businesses • Customized flexibility in exchange for a business’s commitment to superior environmental performance Background Process Criteria Outcomes Criteria Recommendations

5. New Governance • Main characteristics of New Governance are: Background Process Criteria Outcomes Criteria Recommendations

6. History: Pilot Program • Environmental Cooperative Pilot Program (ECCP) authorized in 1997 • Results: Six companies participated- all yielded exceptional environmental results - Example: WE Energies • Additional Benefits: Mentoring Background Process Criteria Outcomes Criteria Recommendations

7. Green Tier • Two Tiered System: Representing an increasing level of environmental performance • Tier 1 • Tier 2 • Charters Background Process Criteria Outcomes Criteria Recommendations

8. Evaluation Criteria • Process Criteria • Transparency • Stakeholder Participation • Outcomes Criteria • Participants Costs and Benefits • Environmental Results • Relationships Background Process Criteria Outcomes Criteria Recommendations

9. Process Criteria • Transparency Criterion: • level of stakeholder and WDNR access to information • Stakeholder Participation Criterion: • Extent to which stakeholders given opportunity to participate • throughout the Green Tier application and negotiation process Background Process Criteria Outcomes Criteria Recommendations

10. Transparency Criterion • Justification: • Facilitate trust-building relationship • Ensure open negotiations and agreements • Methodology: • Measured using a set of benchmarks Background Process Criteria Outcomes Criteria Recommendations

11. Stakeholder Participation Criterion • Justification: • New governance focus on citizen involvement • Broad participation  more representative program • Methodology: • Measured using a set of benchmarks Background Process Criteria Outcomes Criteria Recommendations

12. Outcomes Criteria • Participants Costs and Benefits Criteria • Environmental Results Criteria • Relationships Criteria Background Process Criteria Outcomes Criteria Recommendations

13. Participants Costs and Benefits • Transaction Costs Criterion: • Participation costs • (EMS) Costs and Benefits Criterion: • Costs and benefits of implementing and managing an EMS • Benefits Criterion: • Whether incentives created measurable benefits to/for businesses and the WDNR Background Process Criteria Outcomes Criteria Recommendations

14. Transaction Costs Criterion • Justification: • Essential to a traditional Cost-Benefit Analysis • Methodology: • Survey data • Case studies of participating businesses (Tier 1, Tier 2, and Charter) Background Process Criteria Outcomes Criteria Recommendations

15. Transaction Costs to BusinessesExample: MEGTEC Systems, Inc. (Tier 2) Estimated Transaction Costs: • Application Process Costs • Application: $1,000 • Negotiation: $1,300 • On-Going Costs • Compliance Audit: $1,200 • Interested Persons Group : Not yet implemented • Total: $3,500 Background Process Criteria Outcomes Criteria Recommendations

16. Transaction Costs to the WDNR • Application Process Costs: • Example: Reviewing Applications • On Going Costs: • Example: Recruiting Green Tier participants, Reviewing Reports, and Audits Background Process Criteria Outcomes Criteria Recommendations

17. EMS Costs and Benefits Criterion • Justification: • Participation cost but possible benefit • Costs of new policy instruments • Methodology: • Case studies (Tier 1, Tier 2, Charters) • Survey administered to WDNR personnel Background Process Criteria Outcomes Criteria Recommendations

18. EMS Costs and Benefits to BusinessesExample: MEGTEC Systems, Inc. (Tier 2) • Estimated EMS Costs: -Initial: $60,500 -On-Going: $ 9,850 -Total: $70,350 • Benefits: -Manage hazardous waste more efficiently -“Sleep Insurance” Background Process Criteria Outcomes Criteria Recommendations

19. EMS Costs and Benefits to the WDNR • Costs: • Example: Reviewing EMS reports and enforcement • Benefits: • Reduced monitoring • Example: Reduced inspection frequency Background Process Criteria Outcomes Criteria Recommendations

20. Benefits Criterion • Justification: • Regulatory efficiency incentives • New governance incentives • Methodology: • Survey businesses participating in Green Tier • Survey eligible businesses • Case studies Background Process Criteria Outcomes Criteria Recommendations

21. Environmental Results Criteria • Direct Environmental Indicators: • Achievement of environmental goals and broad environmental indicators • Learning and Innovation: • Effort to work with others in supply chain or industry to increase environmental performance Background Process Criteria Outcomes Criteria Recommendations

22. Direct Environmental Results Criterion • Justification: • Identify and recognize superior environmental performance • Maintain integrity of a Green Tier agreement • Methodology: • Data collection • goals and commitments listed in contract • broad environmental indicators Background Process Criteria Outcomes Criteria Recommendations

23. Learning and Innovation Criterion • Justification: • Shifting regulatory power from hierarchical agencies (Command and Control) to organizational networks (New Governance) • Methodology: • Case-studies • Interview representatives • Survey data Background Process Criteria Outcomes Criteria Recommendations

24. Relationships Criteria • Between WDNR and Business Community: • How Green Tier businesses perceive the WDNR before and after participating in the Green Tier program • Within WDNR: • The extent of the learning and trust taking place within the WDNR • Between Community and Green Tier Businesses: • The perceived effect of each business’s participation in Green Tier on their local community Background Process Criteria Outcomes Criteria Recommendations

25. WDNR and the Business Community Criterion • Justification: • Encourage participation of interested parties • Promote trust and cooperation • Methodology: • Survey businesses and local governments • Survey on Green Tier website Background Process Criteria Outcomes Criteria Recommendations

26. Within the WDNR Criterion • Justification: • Foster awareness • Increase knowledge and trust • Methodology: • Random survey of WDNR employees Background Process Criteria Outcomes Criteria Recommendations

27. Between the Community and Green Tier Businesses Criterion • Justification: • Promotes trust and confidence among stakeholders • Creates a forum for cooperative relationship • Methodology: • Focus groups Background Process Criteria Outcomes Criteria Recommendations

28. Recommendations • Form a Joint Executive-Legislative Working Group to Oversee the Evaluation: • Assess suitability of the criteria • Establish evaluation timeline • Identify funding • Set realistic expectations for success Background Process Criteria Outcomes Criteria Recommendations

29. Recommendations Continued • Provide an open evaluation process • Evaluate relationship between Legislature and WDNR • Measure learning and trust between Green Tier participating businesses and their employees • Increase public awareness of Green Tier Background Process Criteria Outcomes Criteria Recommendations

30. Relationships between the WDNR and the Business Community Criterion • Survey businesses eligible for Green Tier about possible incentives for participation. • Timeframe: about 2 months. • Costs Criteria and Learning and Innovation Criterion • Conduct case study interviews with Green Tier businesses. • Conduct interviews with WDNR personnel. • Survey participating Green Tier businesses. • Timeframe: about 2-3 months. • Data Analysis • Analyze data and complete final evaluation. • Timeframe: about 2-3 months. Relationships within the WDNR Criterion Survey WDNR employees about Green Tier. Timeframe: about 2 months. Month 1 Month 10-12 • Stakeholder Participation and Transparency Criteria • Collect information from the WDNR (this information should be available through the Green Tier application process) • Timeframe: about 1 month. • Direct Environmental Indicators Criterion • Collect environmental results data regarding each business and the state as a whole from the WDNR. • Timeframe: about 2-3 weeks. • Relationships between the Community and Green Tier businesses Criterion • Conduct focus group of community perceptions of Green Tier businesses. • Timeframe: about 1 month. • Data Compilation • Assemble all collected information and data for evaluation. • Timeframe: about 1 month. Evaluation Timeline __________________________________________________________ Background Process Criteria Outcomes Criteria Recommendations

31. Questions?