Central Valley Habitat Exchange A Voluntary Program Creating New Financial Returns for Landowners RCD Conference November 13, 2014 Photo: Jacob Katz

EDF’s Vision Reverse habitat loss Incentivize outcomes/create profit Increase amount and effectiveness of restoration Better EROI

Habitat Exchanges in Development LEGEND Compliance Pre-Compliance Voluntary 3. Upper Green River Conservation Exchange 4. Colorado Habitat Exchange 2. Central Valley Habitat Exchange 5. Lesser Prairie Chicken Habitat Exchange 1. Mokelumne Environmental Benefits Program 6. NC Ecosystem Enhancement Program 7. Nevada Conservation Credit System

Problem: Net loss of habitat annually (despite $20 billion in spending) Problem: Net loss of habitat each year despite mitigation, public & private investment Net loss Habitat lost to development Mitigated through banking Mitigated through non- banking actions Farm Bill & regional programs ,000 Private non- mitigation Functional-Acres Numeric values are rough estimates for illustration only Public land mgt Fddfdfdfdfdfdfdf dfdfdfdfdfdfdf

Vision: Performance based investment Vision: Performance based investment for mitigation, public & private investment Net Gain Habitat lost to development Mitigated through banking Mitigated through non- banking actions Farm Bill & regional programs ,000 Private philanthropy 10,000,00 0 Functional- Acres Numeric values are rough estimates for illustration only Improvement Over Status Quo Status Quo Net Loss Public land mgt Fddfdfdfdfdfdfdf dfdfdfdfdfdfdf

6 Need: Significant Conservation & Mitigation Demand Projected in CA ~1.4 million acres over next 20 yrs. Coachella Valley Multispecies HCP

Exchange Goal Framework for effective habitat conservation in the Central Valley that:  Actively engages farmers and ranchers, on a voluntary basis,  Contributes to fulfillment of state conservation goals and mitigation obligations  Improves ecosystem function. Photo: Matthew Grimm

Public and private sectors engage in accountable and transparent investments in sustainable resource management. Landowners compensated for sustainable management and restoration that results in measurable improvements. Healthier streams, resilient floodplains and riparian corridors - resulting in jobs, cost savings, and other societal benefits. 8 CVHE V ISION Photo: Matthew Grimm

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Exchange Program Area

Potential Needs (concerning HCP/NCCP implementation)  Publicizing habitat mitigation and conservation needs of the HCP/NCCPs to potential willing sellers to secure sufficient habitat supply at an appropriate time.  Ability to consistently prioritize habitat projects and available funding.  Comprehensive understanding of mitigation and conservation activities across the Central Valley.

Exchange Value Tool in the toolbox to help meet goals and objectives of current and future HCP/NCCPs:  Expanding market for conservation delivery to HCPs (i.e., the Exchange as a conservation broker).  Systematic and consistent metrics to help evaluate cost benefits for HCPs.  Third party tracking to coordinate mitigation and conservation activities across the Central Valley.

$$ Exchange Administrator Oversight Committee Science Committee State & Federal Regulators External Administrative Entities Habitat Impacts Sellers Buyers Habitat Verifiers MOU Registry Exchange Structure Proposed relationship with HCP/ NCCPs MOU

$$ Exchange Administrator Oversight Committee Science Committee State & Federal Regulators External Administrative Entities Habitat Impacts Sellers Buyers Habitat Verifiers MOU Registry Exchange Structure Proposed relationship with HCP/ NCCPs Other Sellers Other Buyers MOU

Consistent Metrics Multi-Benefit Habitat Quantification Tool Water Quality Waterbird Habitat Salmon Habitat Frequency, duration of inundation Landform & structure Riparian songbird Habitat Landscape Attributes & Processes Habitat Benefits

Exchange Administrator Sellers Conservation Delivery The Exchange Administrator HCP/NCCP Administrator Buyers/ Developers OR Quantifying Swainson’s Hawk Habitat

Habitat Attribute Categories Landscape Priority Habitat Quality (percent of potential) Acres Habitat Credits Nesting Habitat Foraging Habitat

Attribute Category: Foraging Habitat Attributes Vegetative Cover Hedgerows Management Practices

Attribute Category: Nesting Habitat Attributes Tree Presence and Quality Recruitment Capacity Proximity to Disturbance Documented On-site Nesting Gary O. Grimm

Attribute Category: Landscape Priority Attributes Proximity between Foraging and Nesting Habitats Predicted Habitat Suitability Index (NADC)

Attribute Weights Foraging Habitat ___ Vegetative Cover ___ Hedgerows ___ Management Practices Nesting Habitat ___ Tree presence and density ___ On-site nesting ___ Proximity to disturbance Landscape Priority ___ Proximity of nesting to foraging ___ Proximity to off-site nesting ___ Predicted habitat suitability ___ + ___ + __ = SCORE

Summary: Central Valley Habitat Exchange Quantification Tool for Swainson’s Hawk Transparent and Accessible Demonstrates restoration outcomes Tuned for private lands Adaptable resource

Timeline: One year (Mar 2014 to Mar 2015) Target species: Swainson’s Hawk Project site: Yolo County Major goal: Demonstration of concept Exchange Pilot Project

Photo: Matthew Grimm Timeline: One year (Mar 2014 to Mar 2015) Target species: Swainson’s Hawk Project site: Yolo County Major goal: Demonstration of concept Exchange Pilot Project

Tracking, Reporting & Coordination The Exchange Registry & Annual Reports

Benefits for Landowners Makes it profitable to increase the environmental benefits their land can provide, even as they maintain or increase their productivity Involves them directly in process and outcomes More easily links them to investors 26

Conservation Benefits Links impacts more directly to scientifically quantified/verified outcomes Focuses on outcomes, not just practices Larger projects possible - aggregation Integrates landscape conservation Results in net conservation benefits Expands investment in conservation 27

Questions? Ann Hayden, Environmental Defense Fund Photo: Jacob Katz