1. Beyond Environmental and Social Benefits: “Economics of Green Infrastructure” Duncan sill Santa Fe County

2. What is Green Infrastructure? Strategic network of multifunctional green spaces and processes Integrates natural and constructed environment—sites and links Supports ecological processes, sustains air and water resources Environmental, Social, Economic benefits—improves health and quality of life

3. What is Green Infrastructure (cont’d)? waterways, wetlands, woodlands, wildlife habitats, and other natural areas; greenways, parks and other conservation lands; working farms and ranches Acequias, irrigation systems forests and wilderness other open spaces that support native species, maintain natural ecological processes, sustain air and water resources Green roofs Street side improvements, porous pavements and drainage systems

4. Key Benefits Environmental and Social: Economic: Protect natural systems and mitigate effects of Climate Change —carbon sequestration, flood and erosion control, reduce run off, water quality and supply, nutrient processing and soil fertility, habitat, air quality. Natural resources for energy and related use—biomass, bio-fuel, solar and wind, earthen material, etc. Advance community participation and equity—quality of life and health improvement. E.g. 1) access to green space (walking trails, bike paths, etc)— reduce fossil fuel from vehicle use. 2) Acequias as social network and community partnership Potential reduction in capital expenditure, in comparison with conventional built infrastructure carrying incremental and increasing labor and material costs. Reduce maintenance and operation costs—in case of local government, this can be savings apply for other community programs and services Opportunities for green economic and workforce development; addresses leakage of resources Potential increase in property value and attractiveness for businesses Natural Capital Valuation Long term impact of Climate Change

5. Return on Investment Basic formula: Gain – Investment Cost Investment Cost ROI (Return On Investment) often based on Monetary or Financial return—i.e. “gain“ ROI does not always factor in avoided costs and value measurements Tangible and intangible Beyond the numbers Balance investment and return with environmental. social and economic impact Balance short and long term –understanding baseline Foundation and equity building, including capacity Decision framework integrates structure of risk, cost and value (financial, policy and social) measures

6. Environmental. Economic and Social Equity Sustainability = Value of ROI

7. Equity Building Blocks ValuationCapacityProblemsApproachImplement Value Risk Cost

8. Green Water Infrastructure Climate Change and Global Warming Improved water quality, supply Wastewater and rainwater management reduces overflow, other beneficial use and/or reuse Leverage to improve air quality—more vegetation, greenbelts, etc Water and Energy nexus Infrastructure Gap Aging and Failing High upfront costs in capital Lack of resources for operations and maintenance Encroachment on natural systems—natural and constructed systems not integrated Diverting critical resources—financial and otherwise—from other public investments

9. Green Water Infrastructure Economic Impact Job creation and local economic development According to the America Rives and Alliance for Water Efficiency 2008 paper “Creating Jobs and Stimulating the Economy through Investment on Green Infrastructure”: Green roofs—covering 1% of large buildings in mid-large cities = 190,000 jobs + investment in supplies, etc Water efficiency--$1 invested = $2.5 return. Investment of $10 Billion = 150,000 jobs Avoided costs and reinvestment Water conservation and irrigation management –”smart water” Green roofs, street side infrastructure (e.g. curb cuts, basin, etc), vegetation improvement Storm water management Reduce tax burden and allow for reinvestments of failing and aging infrastructure, acquisition of water rights Progress toward community beneficial use and reinvestments— energy, food systems, etc.

10. Barriers and Challenges Local urban barriers examples Economics and Funding—increased development costs., lack of cost/benefit analyses, lack of incentives, etc. Education and Knowledge Willingness to Change Lack of connections—between infrastructures such as municipal water and storm water management (see gaps); between various agencies Institutional constraints—policy and agencies Source: working paper by Katherine LaBadie UNM (2010): ”Identifying Barriers to Low Impact Development Green Infrastructure in the Albuquerque Area” Suggested Approach: Education is key Collaboration and integration Act now—investment upfront

11. Next steps—regional opportunities Set baselines and priorities Establish alliance, understand capacity and problems Assess resources and investment—policy, social, financial and environmental Implementation— concurrency and sequencing of programs, financing and related building blocks Pilot projects??? Measurement—Value based ROI

12. Thank you! Questions and comments: Duncan Sill Economic Development Santa Fe County 505-995-2728 dsill@santafecouny.org