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Creating a Framework for Sustainability in California: Lessons Learned from the New Zealand Experience

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Creating a Framework for Sustainability in California: Lessons Learned from the New Zealand Experience Creating a Framework for Sustainability in California: Lessons Learned from the New Zealand Experience Andrea P. Sumits Jason I. Morrison A report of the Pacific Institute for Studies in Development, Environment, and Security 654 13th Street, Preservation Park Oakland, California 94612 (510) 251-1600 fax (510) 251-2203 www.pacinst.org December 2001 Prepared with the support of: California Environmental Protection Agency California Resources Agency Fred Gellert Family Foundation Quantum Corporation Silicon Valley Group IBM About the Pacific Institute The Pacific Institute for Studies in Development, Environment, and Security is an independent, non-profit center created in 1987 to do research and policy analysis in the areas of environment, sustainable development, and international security. Underlying all of the Institute's work is the recognition that the pressing problems of environmental degradation, regional and global poverty, and political tension and conflict are fundamentally interrelated, and that long-term solutions must consider these problems in an interdisciplinary manner. The Institute’s mission is to conduct and distribute meaningful and usable research and policy suggestions on the interactions among these issues. The organization seeks to produce quality, impartial research and to make sure it is accessible not only to public and private sector decision-makers, but also to community groups and the public at large. The ultimate objective of the Pacific Institute’s work is to contribute to equitable and sound development, the reversal of environmental degradation, and regional and international peace and security. About the Authors Andrea Sumits is a senior attorney in the Environment & Land Use Group of Pillsbury Winthrop LLP, and counsels clients domestically and internationally with regard to Environmental, Health, and Safety regulatory compliance and strategic EH&S management. Her practice includes the design and implementation of EH&S and sustainability management systems, internal EH&S auditing programs, and environmental performance evaluation and reporting. Ms. Sumits has conducted over 20 compliance and management systems audits of industrial facilities across the U.S. She also advises clients and governmental agencies in connection with environmental regulatory innovation and reinvention projects. She has conducted this study while on sabbatical as a Research Affiliate of the Pacific Institute. Ms. Sumits was conferred a Juris Doctor degree from Santa Clara University School of Law and a B.A. with honors from the University of Texas at Austin. She is a member of the State Bar of California (Environmental Law Section), the American Bar Association (Section of Natural Resources, Energy, and Environmental Law; International Environmental Law Committee; Special Committee on 2nd Generation Issues), the Multi-State Working Group on Environmental Management Systems (MSWG), and is a certified ISO 14001 Lead Auditor. Jason Morrison is the director of the Pacific Institute’s Economic Globalization and the Environment Program, where he is currently studying the policy implications of private sector environmental initiatives and voluntary international standards, with a focus on the environmental management standards -- ISO 14000. He has co-authored numerous publications on the subject, including Managing a Better Environment: Opportunities and Obstacles for ISO 14001 in Public Policy and Commerce, which was released in March 2000. Since 1997, Mr. Morrison has been a member of the U.S. Technical Advisory Group (and U.S. delegate) to ISO Technical Committee 207. He was a founding member of the NGO Working Group on ISO 14000, and is currently Chair of the ISO/TC 207 NGO Task Group. Mr. Morrison is a coordinating committee member of the Multi-State Working Group on EMSs, a coalition of state and federal agencies investigating the use of environmental management systems in regulatory innovation. He sits on the EMS Advisory Council for NSF International Strategic Registrations, Ltd. and is an Advisory Committee member of the National Biosolids Partnership - Environmental Management Systems Initiative. Mr. Morrison holds a Master's Degree from Boston University's Center for Energy and Environmental Studies and a B.A. in Philosophy from the UC San Diego. In addition to working on issues relating to international environmental standards, he is a leading researcher on the sustainable management of freshwater resources and water planning in California and the southwestern U.S. Acknowledgments This report of the Pacific Institute is the result of a yearlong effort, and could not have happened without the support, assistance, and guidance of many people and organizations. Funding for this report was provided by a broad range of interests from government, the environmental community, and the private sector. Project funders included the California Environmental Protection Agency, California Resources Agency, Fred Gellert Family Foundation, IBM Corporation, Quantum Corporation, and Silicon Valley Group. We gratefully acknowledge their support. The findings of this report express the views of the authors and not necessarily those of the project funders. Our deepest appreciation goes out to our newfound friends and colleagues New Zealand, particularly the 50 or so individuals who generously gave of their time and insights during our interviews with them. These individuals are listed in Appendix A of this report. We would also like to express our sincere gratitude to members of our project advisory committee, which consisted of: Bob Harvey, Mayor of Waitakere City, New Zealand Craig Mallett, New Zealand Ministry for the Environment Wendy Pulling, Pacific Gas & Electric Edward Quevedo, WSP Group North America Robert Stephens, California Environmental Protection Agency Michael Sweeney, California Resources Agency Beth Vaughan, Resource Renewal Institute Cath Wallace, Victoria University of Wellington Janet Whittick, California Environmental Dialogue Robert Wilkinson, Earth Island Institute; lecturer, University of California, Santa Barbara John Wise, formerly with the U.S. Environmental Protection Agency, Region IX Valuable comments on an earlier draft were provided through formal reviews by Richard Morrison, Ed Quevedo, Keith Smith, Beth Vaughan, Cath Wallace, and John Wise. Any errors are our own. Special thanks to Beth Vaughan, who opened many doors for us during our stay in New Zealand, and provided invaluable support and guidance throughout our research and drafting of this report. We are grateful to David Young for sharing the tapes of the interviews he conducted in connection with his recent work on the history of the RMA. We also would like to thank the following people and organizations for their wide range of advice, criticisms, guidance, assistance, support, and general camaraderie: Patricia Brenner, Shirley Brown, Nick Cain, California Environmental Dialogue, Graeme Drake, Amy Kerxton, Pillsbury Winthrop LLP, and Resource Renewal Institute. © Copyright 2001 by the Pacific Institute for Studies in Development, Environment, and Security. All Rights Reserved A. Sumits and J. Morrison Executive Summary In California there is growing recognition among government, the private sector, and the public interest community that the existing environmental protection “framework” is inadequate to deliver the levels of environmental protection that will be needed in the future. The state currently faces many serious environmental and natural resource challenges, such as water supply and quality, smog, biodiversity, and preservation of open space. These challenges, among others, will only become more severe with the state’s increasing environmental pressures. Growth projections indicate that the state’s population will increase by 30 percent in the next two decades. Without effective plans for managing this growth, we will face significant negative impacts to the environment, as well as to our quality of life in areas such as traffic congestion, air quality, and the availability of affordable housing. Sustaining environmental quality, natural resources, and quality of life for all segments of our diverse population are prerequisite components underlying a vibrant economy. This raises the question of whether California is equipped with the policy framework and instruments that are capable of delivering the quality of our environment, society and economy that we desire for the future. Although our current system of environmental laws and regulations has made significant strides in environmental protection over the past 30 years, it is cumbersome and in many areas it is not well suited to deliver desired environmental outcomes efficiently and effectively. Top state policy-makers have begun searching for new policy tools that hold promise for fulfilling environmental protection needs. New approaches include: “regulatory innovation” programs in which regulatory benefits are offered to regulated entities in exchange for performance outcomes that go “beyond compliance;” environmental management systems models; integrated management of media; collaborative and long-term strategic planning; delegation of strategic planning processes to local government; and market-based incentives for environmental performance and conservation. Much can be learned from the experiences of other states and countries that have experimented with such innovations. This report examines the comprehensive reforms adopted in New Zealand as a basis of informing California
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