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

The Wisconsin The Wisconsin Green Tier Green Tier Program:Program:

Developing An Evaluation ToolDeveloping An Evaluation Tool

Analysis by: Analysis by: Darryn Beckstrom, Jessalyn Frost, Darryn Beckstrom, Jessalyn Frost,

Erin Rushmer, and Melody SakazakiErin Rushmer, and Melody Sakazaki

OverviewOverview

Purpose of ProjectPurpose of Project New Governance ModelNew Governance Model Green Tier Background and HistoryGreen Tier Background and History Evaluation CriteriaEvaluation Criteria RecommendationsRecommendations

PurposePurpose

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

Background Process Criteria Outcomes Criteria Recommendations

What is Green Tier?What is Green Tier?

Innovative environmental program Innovative environmental program

Encourages partnerships between Encourages partnerships between Wisconsin Department of Natural Wisconsin Department of Natural Resources and Wisconsin businessesResources and Wisconsin businesses

Customized flexibility in exchange for a Customized flexibility in exchange for a business’s commitment to superior business’s commitment to superior environmental performanceenvironmental performance


New GovernanceNew Governance

Main characteristics of New Governance Main characteristics of New Governance are:are:

Classic Public Administration Model vs. New Governance Model

Classic Public Administration New Governance

Program/Agency Tool

Hierarchy Network

Public vs. Private Public & Private

Command & Control Negotiation & Persuasion


History: Pilot ProgramHistory: Pilot Program Environmental Cooperative Pilot Program Environmental Cooperative Pilot Program

(ECCP) authorized in 1997(ECCP) authorized in 1997

Results:Results: Six companies participated- all Six companies participated- all yielded exceptional environmental resultsyielded exceptional environmental results

- - Example: WE EnergiesExample: WE Energies

Additional Benefits:Additional Benefits: Mentoring Mentoring


Green TierGreen Tier

Two Tiered System: Representing an Two Tiered System: Representing an increasing level of environmental increasing level of environmental performanceperformance– Tier 1Tier 1– Tier 2Tier 2

ChartersCharters


Evaluation CriteriaEvaluation Criteria

Process CriteriaProcess Criteria– TransparencyTransparency– Stakeholder ParticipationStakeholder Participation

Outcomes CriteriaOutcomes Criteria– Participants Costs and BenefitsParticipants Costs and Benefits– Environmental ResultsEnvironmental Results– RelationshipsRelationships


Process CriteriaProcess Criteria

Transparency Criterion:Transparency Criterion:– level of stakeholder and WDNR access to level of stakeholder and WDNR access to

informationinformation

Stakeholder Participation Criterion:Stakeholder Participation Criterion:– Extent to which stakeholders given opportunity Extent to which stakeholders given opportunity

to participate to participate throughout the Green Tier application throughout the Green Tier application and negotiation and negotiation processprocess


Transparency CriterionTransparency Criterion

Justification:Justification: – Facilitate trust-building relationshipFacilitate trust-building relationship

– Ensure open negotiations and agreementsEnsure open negotiations and agreements

Methodology:Methodology:– Measured using a set of benchmarksMeasured using a set of benchmarks


Stakeholder Participation Stakeholder Participation CriterionCriterion

Justification:Justification:– New governance focus on citizen New governance focus on citizen

involvementinvolvement– Broad participation Broad participation more representative more representative

programprogram

Methodology:Methodology:– Measured using a set of benchmarksMeasured using a set of benchmarks


Outcomes CriteriaOutcomes Criteria Participants Costs and Benefits CriteriaParticipants Costs and Benefits Criteria

Environmental Results CriteriaEnvironmental Results Criteria

Relationships CriteriaRelationships Criteria


Participants Costs and Participants Costs and Benefits Benefits

Transaction Costs Criterion:Transaction Costs Criterion:– Participation costsParticipation costs

(EMS) Costs and Benefits Criterion:(EMS) Costs and Benefits Criterion:– Costs and benefits of implementing and managing Costs and benefits of implementing and managing

an EMS an EMS

Benefits Criterion:Benefits Criterion:– Whether incentives created measurable benefitsWhether incentives created measurable benefits

to/for businesses and the WDNR


Transaction Costs Transaction Costs CriterionCriterion

Justification:Justification: – Essential to a traditional Cost-Benefit AnalysisEssential to a traditional Cost-Benefit Analysis

Methodology: Methodology: – Survey dataSurvey data– Case studies of participating businesses Case studies of participating businesses

(Tier 1, Tier 2, and Charter) (Tier 1, Tier 2, and Charter)


Transaction Costs to BusinessesTransaction Costs to BusinessesExample: MEGTEC Systems, Inc. (Tier Example: MEGTEC Systems, Inc. (Tier 2)2)Estimated Transaction Costs:Estimated Transaction Costs:

Application Process CostsApplication Process Costs– Application: $1,000Application: $1,000– Negotiation: $1,300 Negotiation: $1,300

On-Going CostsOn-Going Costs– Compliance Audit: $1,200Compliance Audit: $1,200– Interested Persons Group : Not yet implementedInterested Persons Group : Not yet implemented

Total: $3,500Total: $3,500


Transaction Costs to the Transaction Costs to the WDNRWDNR

Application Process Costs:Application Process Costs:– Example: Reviewing Applications Example: Reviewing Applications

On Going Costs:On Going Costs:– Example: Recruiting Green Tier Example: Recruiting Green Tier

participants, Reviewing Reports, and participants, Reviewing Reports, and AuditsAudits


EMS Costs and Benefits EMS Costs and Benefits CriterionCriterion

Justification: Justification: – Participation cost but possible benefitParticipation cost but possible benefit– Costs of new policy instruments Costs of new policy instruments

Methodology:Methodology:– Case studies (Tier 1, Tier 2, Charters)Case studies (Tier 1, Tier 2, Charters)– Survey administered to WDNR personnelSurvey administered to WDNR personnel


EMS Costs and Benefits to EMS Costs and Benefits to BusinessesBusinessesExample: MEGTEC Systems, Inc. Example: MEGTEC Systems, Inc. (Tier 2)(Tier 2) Estimated EMS Costs: Estimated EMS Costs:

-Initial: -Initial: $60,500$60,500-On-Going:-On-Going: $ 9,850$ 9,850-Total: -Total: $70,350$70,350

Benefits: Benefits: -Manage hazardous waste more efficiently-Manage hazardous waste more efficiently-“Sleep Insurance”-“Sleep Insurance”


EMS Costs and Benefits to the EMS Costs and Benefits to the WDNRWDNR

Costs:Costs:– Example: Reviewing EMS reports and Example: Reviewing EMS reports and

enforcement enforcement

Benefits: Benefits: – Reduced monitoringReduced monitoring– Example: Reduced inspection frequencyExample: Reduced inspection frequency


Benefits CriterionBenefits Criterion

Justification:Justification:– Regulatory efficiency incentivesRegulatory efficiency incentives– New governance incentivesNew governance incentives

Methodology:Methodology:– Survey businesses participating in Green Survey businesses participating in Green

TierTier– Survey eligible businessesSurvey eligible businesses– Case studiesCase studies


Environmental Results Environmental Results CriteriaCriteria

Direct Environmental Indicators:Direct Environmental Indicators:– Achievement of environmental goals Achievement of environmental goals

and broad environmental indicatorsand broad environmental indicators

Learning and Innovation:Learning and Innovation:– Effort to work with others in supply Effort to work with others in supply

chain or industry to increase chain or industry to increase environmental performanceenvironmental performance


Direct Environmental Direct Environmental Results CriterionResults Criterion

Justification:Justification:– Identify and recognize superior environmental Identify and recognize superior environmental

performance performance – Maintain integrity of a Green Tier agreementMaintain integrity of a Green Tier agreement

Methodology:Methodology:– Data collectionData collection

goals and commitments listed in contract goals and commitments listed in contract broad environmental indicatorsbroad environmental indicators


Learning and Innovation Learning and Innovation CriterionCriterion

Justification:Justification:– Shifting regulatory power from hierarchical Shifting regulatory power from hierarchical

agencies (Command and Control) to agencies (Command and Control) to organizational networks (New Governance)organizational networks (New Governance)

Methodology:Methodology:– Case-studiesCase-studies– Interview representatives Interview representatives – Survey dataSurvey data


Relationships CriteriaRelationships Criteria Between WDNR and Business Community:Between WDNR and Business Community:

– How Green Tier businesses perceive the WDNR before How Green Tier businesses perceive the WDNR before and after participating in the Green Tier programand after participating in the Green Tier program

Within WDNR:Within WDNR:– The extent of the learning and trust taking place within The extent of the learning and trust taking place within

the WDNRthe WDNR

Between Community and Green Tier Businesses:Between Community and Green Tier Businesses:– The perceived effect of each business’s participation in The perceived effect of each business’s participation in

Green Tier on their local communityGreen Tier on their local community


WDNR and the Business WDNR and the Business Community CriterionCommunity Criterion

Justification:Justification:– Encourage participation of interested Encourage participation of interested

partiesparties– Promote trust and cooperation Promote trust and cooperation

Methodology:Methodology:– Survey businesses and local governmentsSurvey businesses and local governments– Survey on Green Tier website Survey on Green Tier website


Within the WDNR Within the WDNR CriterionCriterion

Justification:Justification:– Foster awarenessFoster awareness– Increase knowledge and trust Increase knowledge and trust

Methodology:Methodology:– Random survey of WDNR employeesRandom survey of WDNR employees


Between the Community and Between the Community and Green Green

Tier Businesses CriterionTier Businesses Criterion Justification:Justification:

– Promotes trust and confidence among Promotes trust and confidence among stakeholdersstakeholders

– Creates a forum for cooperative Creates a forum for cooperative relationshiprelationship

Methodology:Methodology:– Focus groupsFocus groups


RecommendationsRecommendations Form a Joint Executive-Legislative Form a Joint Executive-Legislative

Working Group to Oversee the Working Group to Oversee the Evaluation:Evaluation:

– Assess suitability of the criteriaAssess suitability of the criteria– Establish evaluation timelineEstablish evaluation timeline– Identify funding Identify funding – Set realistic expectations for successSet realistic expectations for success


Recommendations Recommendations ContinuedContinued

Provide an open evaluation processProvide an open evaluation process Evaluate relationship between Evaluate relationship between

Legislature and WDNRLegislature and WDNR Measure learning and trust between Measure learning and trust between

Green Tier participating businesses Green Tier participating businesses and their employeesand their employees

Increase public awareness of Green Increase public awareness of Green TierTier


Evaluation TimelineEvaluation 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.


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.


Month 1 Month 10-12


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Questions?Questions?

Documents

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