FbD Lunch & Learn:

The Pay for Success Model, Accelerating the Pace of Restoration

April 6, 2023

Today’s Speakers:

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• Grace Edinger - Senior Manager at the Restoration Economy Center where she explores restoration’s role in mitigating the effects of Climate Change, and researches and writes recommendations that focus on restoration’s role in improving systems, policies, and processes.
• Charlotte Biggs - Assistant Division Manager of Multi-benefit Initiatives with the California Department of Water Resources where she supports multi-benefit habitat restoration and flood improvement projects. Charlotte has successfully deployed this model as part of the Lookout Slough Delta Smelt Habitat Restoration project, a 3,400-acre tidal wetland restoration project in the Sacramento-San Joaquin Delta.

Agenda:

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• 12:00 - 12:05 - Welcome and Introductions
• 12:05 - 12:25 - Grace Edinger, Restoration Economy Center
• 12:25-12:45 - Charlotte Biggs - Assistant Division Manager of Multi-benefit Initiatives with the California Department of Water Resources
• 12:45 - 12:55 - Discussion

What is Pay for Success?

Speeds things up Cheaper Frees up government time Guarantees success

Investors provide upfront capital to scale outcomes-based projects

Contractors deliver environmental outcomes and cost savings that government values.

Government pays contractor (who in turn repays investors) once outcomes are verified

Investors

Government

Contractors

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On the Ground

• Single contract makes the contractor responsible for all restoration work, resulting in cost savings
• This approach reduces risk, allowing the contractor to offer a performance guarantee for ecological success and a payment schedule that aligns with outcomes

Adopting these changes: Policies & Practices

Statute Analysis & Recommendations

• Analyze current statute landscape

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• Interview stakeholders

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• Propose legislative solutions

Education & Awareness

• Identify bottleneck/ core issue

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• Develop white papers, blog posts, webinars, etc.

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• Conduct one-on-one conversations

Maryland: Conservation Finance Act & �Clean Water Commerce Act

CFA

• Green and blue infrastructure can be financed the same ways as gray
• Allows the state to more simply purchase environmental outcomes, only paying when projects successfully deliver

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• Creating a commission to look at ways to make permitting easier for ecological restoration and climate resilience projects

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• Prioritizing environmental justice outcomes

CWCA

• $20M to purchase water quality outcomes

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• Clear, quantifiable outcomes

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• Agreement on outcomes measurement

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• Transparent priorities

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• Verification

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Other Resources to Explore:

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• Pay for Success as a way to deploy federal money quickly
• Pay for Performance Toolkit
• Case Studies
• Easy to Understand Analogy
• State Policy Gold Star: MD Conservation Finance Act
• Feel free to email me! Grace Edinger, grace@policyinnovation.org

Lookout Slough

• Multibenefit habitat restoration and flood improvement project
• Public-private partnership
• Over 3,000-acres
• Started construction in less than 5 years

Project Location �

North Delta Arc

Restoration Design

• Delta Smelt habitat creation
• Tidal marsh development

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• Giant Garter Snake habitat enhancement
• Upland/wetland interface improvement

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• Other fish species 
• Longfin Smelt, Chinook Salmon, Central Valley DPS Steelhead, Sacramento Splittail

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Flood Protection

Project Location

Project Timeline:

• Feasibility – 2017
• Contracts – October 2018
• CEQA FEIR – December 2020
• Final Permits – Summer 2021
• Construction Start – May 2022
• Construction End – October 2023/24

Project Delivery

• Public Private Partnership
• Two Contracts (Restoration & Flood)
• Two Funding Sources (SWP & Prop 1)
• Coordination Across DWR Divisions

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