Presentation for: Puget Sound Ecosystem Science and Policy University of Washington November 29, 2010 New Opportunities for Market-based Conservation in the Puget Sound region Dan Stonington Cascade Land Conservancy

About the Cascade Land Conservancy Cascade Land Conservancy (CLC) is Washington’s largest independent land conservation and stewardship organization Conserved over 160,000 acres using market-based approaches

Growth and The Cascade Agenda Community Forestry Bonds Local Conservation Authority TDR and Infrastructure Conservation Villages Agenda

Growth is happening

King County Growth Trends

Cascade Agenda Actions Our goal: 1.3 Million acres of conserved landscapes

1.3M acres = $ Billions The Bottom Line Value Added Conservation ToolsValue Added Conservation Tools New Financing ResourcesNew Financing Resources Alignment of Market and Regulatory ForcesAlignment of Market and Regulatory Forces Funding Needed Available Funding $ millions $ billions Achieving Regional Conservation Requires:

Growth and The Cascade Agenda Community Forestry Bonds Local Conservation Authority TDR and Infrastructure Conservation Villages Agenda

Community Forestry and Conservation Act of 2009 (S1501, HR3302) Community Forestry and Conservation Act of 2009 (S1501, HR3302) Murray, Cantwell, McDermott, and Reichert are all co-sponsors Murray, Cantwell, McDermott, and Reichert are all co-sponsors Legislation has been introduced, and is pending in the Ways & Means and Finance Committees Legislation has been introduced, and is pending in the Ways & Means and Finance Committees Community Forestry Bonds

Tax exempt revenue bonds for the purpose of conserving working forestland Tax exempt revenue bonds for the purpose of conserving working forestland “Cutting the trees to save the forest” “Cutting the trees to save the forest” Bonds backed by project, not taxpayer Bonds backed by project, not taxpayer Private investors Private investors Timber harvested to service debt Timber harvested to service debt What are Community Forestry Bonds?

How a CFB Deal Works Form non- profit (buyer) Negotiate with landowner Create a management plan Harvest timber to service debt Purchase forest with proceeds Gov entity issues bonds Continue to manage according to plans

Growth and The Cascade Agenda Community Forestry Bonds Local Conservation Authority TDR and Infrastructure Conservation Villages Agenda

Local Conservation Authority Local Conservation Authorities (LCAs) are a conservation equivalent of Public Development AuthoritiesLocal Conservation Authorities (LCAs) are a conservation equivalent of Public Development Authorities This is an untested concept, but allowable under current state law (RCW – )This is an untested concept, but allowable under current state law (RCW – ) LCAs, similar to CFBs, would purchase forestland by revenue-backed bondsLCAs, similar to CFBs, would purchase forestland by revenue-backed bonds

LCA Considerations Community interestCommunity interest Debt limitDebt limit Ability to marry with other tools (e.g. TDR)Ability to marry with other tools (e.g. TDR)

Growth and The Cascade Agenda Community Forestry Bonds Local Conservation Authority TDR and Infrastructure Conservation Villages Agenda

TDR and Infrastructure Local Conservation Financing legislation introduced in Olympia during the 2010 sessionLocal Conservation Financing legislation introduced in Olympia during the 2010 session HB 2850 and SB 6602HB 2850 and SB 6602 AWC, King County, and Pierce County testified in support of the concept this past sessionAWC, King County, and Pierce County testified in support of the concept this past session We are working with stakeholders to refine the bill for the 2011 sessionWe are working with stakeholders to refine the bill for the 2011 session

Transfer of Development Rights

Issues Facing Cities (and TDR) Cities struggle with:Cities struggle with: – Growth targets – Housing affordability – Building/upgrading infrastructure TDR into cities adds to challengesTDR into cities adds to challenges

Infrastructure Backlog

Crossing the Hurdle: New financing opportunities with TDR Address sprawl & urban infrastructure needs together by linking TDR new infrastructure financing tools  Commit & Plan  Infrastructure Investment  Redevelopment  Forest & Farm Conservation HB2850 / S6602: Local Conservation Financing

Growth and The Cascade Agenda Community Forestry Bonds Local Conservation Authority TDR and Infrastructure Conservation Villages Agenda

State legislation introduced in 2007State legislation introduced in 2007 CLC is meeting with counties to discuss the range of strategies that can help address land conversion in rural and resource areas, including Conservation VillagesCLC is meeting with counties to discuss the range of strategies that can help address land conversion in rural and resource areas, including Conservation Villages

Thank You! CONSERVING GREAT LANDS CREATING GREAT COMMUNITIES Dan Stonington