1. Robin Jenkins & Heather Klemick EPA National Center for Environmental Economics Peter Meyer The E.P. Systems Group, Inc. June 22, 2012 EPA’s New Handbook on the Benefits, Costs, and Impacts of Land Cleanup and Reuse Hosted by

2. Land Reuse Handbook 2 National Center for Environmental Economics

3. Land Reuse Handbook What is the Handbook? – Summary of economic theory and methods for analysis of land cleanup and reuse projects & policies What is the Handbook not? – Spreadsheet model or “toolkit” Whom is it for? – Federal, state, and local analysts 3 National Center for Environmental Economics

4. Economic Analysis at EPA Analysis of economically significant new regulations Retrospective analysis of major programs 4 National Center for Environmental Economics

5. Measuring Economic Consequences Benefit-cost analysis (BCA) – Is the aggregate well-being of the nation/state/city higher or lower with the action? – Some individuals might be worse off with the action, but could those who are better off potentially compensate those who are worse off? Economic impact analysis (EIA) – Miscellaneous set of economic effects resulting from the action. – How will the allocation of resources across industries, regions, or other sub-groups change? Note: Chapter 3 of Handbook covers BCA vs EIA. 5 National Center for Environmental Economics

6. For BCA and EIA Key question: What is the relevant geographic scale for the analysis? – For most EPA regulations, national – For other projects, could be regional, state, or local Key distinction: Gross vs. net impacts at the chosen scale 6 National Center for Environmental Economics

7. EIA of Land Cleanup and Reuse What types of impacts are measured? – Employment & income – Business openings & output, agglomeration – Taxes & government impacts – Household and residential impacts – Equity & environmental justice, gentrification Note: Chapter 8 of Handbook covers EIA. 7 National Center for Environmental Economics

8. BCA of Land Cleanup & Reuse Value all social benefits and costs in $ terms If can’t monetize, quantify If can’t quantify, consider qualitatively Costs usually easier to measure than benefits Note: Chapters 6 (benefits) and 7 (costs) cover BCA. 8 National Center for Environmental Economics

9. Many benefits are “intangibles” Potential categories: – Human health – Ecological – Aesthetics – Materials – Increased land productivity Relevant categories depend on type of site/context 9 Social Benefits of Land Cleanup & Reuse

10. Methods for Measuring Social Benefits Risk Assessment – quantify direct health impacts Economic valuation – Cost-of-illness and value of micro-risk reductions – Property value models – Stated preference Cannot usually add up results across methods 10 National Center for Environmental Economics

11. Methods for Measuring Social Benefits Benefit transfer – Use estimates from one or more existing studies – Key question: how similar is the study site to the new site? Affected population/neighborhood Contaminants and affected media (soil, groundwater, other) Size of site, types of land use – Large variations across contaminated sites make this difficult! 11 National Center for Environmental Economics

12. 12 Appendix: Data Sources by Cleanup Program General – Pollution Abatement Costs and Expenditures Survey (PACE) http://yosemite.epa.gov/ee/epa/eed.nsf/webpages/pace2005.html http://yosemite.epa.gov/ee/epa/eed.nsf/webpages/pace2005.html – Cleanups in My Community http://iaspub.epa.gov/Cleanups/http://iaspub.epa.gov/Cleanups/ RCRA Corrective Action Program – RCRAInfo http://www.epa.gov/enviro/html/rcris/index.htmlhttp://www.epa.gov/enviro/html/rcris/index.html – Envirofacts http://www.epa.gov/enviro/index.htmlhttp://www.epa.gov/enviro/index.html Superfund Removals & Remedial Programs – CERCLIS http://cfpub.epa.gov/supercpad/cursites/srchsites.cfmhttp://cfpub.epa.gov/supercpad/cursites/srchsites.cfm UST Program – UST Corrective Action Program State Policy Database http://www.gsi- net.com/USTPolicyDatabase/start.htmhttp://www.gsi- net.com/USTPolicyDatabase/start.htm Brownfields Program – ACRES http://www.epa.gov/brownfields/pubs/acres/acresinfo.htmhttp://www.epa.gov/brownfields/pubs/acres/acresinfo.htm

13. Handbook Location The Handbook is publicly available for download in a single PDF file at http://yosemite.epa.gov/ee/epa/eed.nsf/webpages/ LandHandbook.html http://yosemite.epa.gov/ee/epa/eed.nsf/webpages/ LandHandbook.html Robin Jenkins National Center for Environmental Economics US Environmental Protection Agency (202)566-2292 PHONE (202)566-2338 FAX jenkins.robin@epa.gov Heather Klemick National Center for Environmental Economics US Environmental Protection Agency (202)566-2522 PHONE (202)566-2338 FAX klemick.heather@epa.gov 13 National Center for Environmental Economics