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

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

Purpose To develop a series of criteria to evaluate the Green Tier program, identify potential data sources, and construct a timeline for data collection 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

New Governance A philosophy based on perception that traditional forms of governance unable to efficiently achieve goals A philosophy based on perception that traditional forms of governance unable to efficiently achieve goals New Governance Approach built on Five Principles New Governance Approach built on Five Principles 1. Problem solving orientation 2. Stakeholder participation 3. Provisional solutions 4. Improved accountability 5. Flexible engaged agency Background Process Criteria Outcomes Criteria Recommendations

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

New Governance Main characteristics of New Governance are: Main characteristics of New Governance are: Classic Public Administration Model vs. New Governance Model Classic Public AdministrationNew Governance Program/AgencyTool HierarchyNetwork Public vs. PrivatePublic & Private Command & ControlNegotiation & Persuasion Background Process Criteria Outcomes Criteria Recommendations

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

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

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

Process Criteria Transparency Criterion: Transparency Criterion: –level of stakeholder and WDNR access to information Stakeholder Participation Criterion: 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

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

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

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

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

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

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

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

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

EMS Costs and Benefits to Businesses Example: 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

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

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

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

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

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

Relationships Criteria Between WDNR and Business Community: Between WDNR and Business Community: –How Green Tier businesses perceive the WDNR before and after participating in the Green Tier program Within WDNR: Within WDNR: –The extent of the learning and trust taking place within the WDNR Between Community and Green Tier Businesses: 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

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

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

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

Recommendations Form a Joint Executive-Legislative Working Group to Oversee the Evaluation: 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

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

Evaluation Timeline 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. 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. 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 within the WDNR Criterion Survey WDNR employees about Green Tier. Timeframe: about 2 months. Relationships between the WDNR and the Business Community Criterion  Survey businesses eligible for Green Tier about possible incentives for participation. Timeframe: about 2 months. Data Compilation  Assemble all collected information and data for evaluation. Timeframe: about 1 month. Data Analysis  Analyze data and complete final evaluation. Timeframe: about 2-3 months. Relationships between the Community and Green Tier businesses Criterion  Conduct focus group of community perceptions of Green Tier businesses. Timeframe: about 1 month. Month 1Month Background Process Criteria Outcomes Criteria Recommendations __________________________________________________________

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