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Rivanna Forests to Faucets (F2F) Initiative Payments for Watershed Services and the Optimum Infrastructure Expenditure (OIE) Version I System

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Rivanna Forests to Faucets (F2F) Initiative Payments for Watershed Services and the Optimum Infrastructure Expenditure (OIE) Version I System Rivanna Forests to Faucets (F2F) Initiative Payments for Watershed Services and the Optimum Infrastructure Expenditure (OIE) Version I System Interim Program Report By: Funded by: October 18, 2012 I. Abstract A 3-year payment for watershed services initiative is being tested in the Rivanna River Basin of Virginia. Protocols to compensate landowners for tree planting, forest stewardship management plans, harvest site stabilization, enhanced conservation easement, forest establishment, riparian buffer tax credit match, and fencing from livestock have been developed. Actual payments totaling approximately $200,000 have been provided to date. A prototype Optimum Infrastructure Expenditure (OIE) Version I System was created to provide a financial linkage between urban water consumers and rural landowners. The system is designed for water supply utility and local government watershed managers to optimize annual expenditures for afforestation, forest conservation easements, and dredging. A system metric, the Watershed Reservoir Wellness Index (WRWI) was created to provide an optimization goal. Use of the system on the South Fork Rivanna River Watershed Reservoir, Virginia reveals four findings. Afforestation has similar impact on reservoir lifetime as does dredging for approximately the same expenditures during a 30 year planning horizon. The lifetime cost effectiveness of afforestation as compared to dredging ranges from approximately the same to significantly greater, due to sediment load reduction that continues beyond the planning horizon, depending upon the likelihood of afforestation reversion. Forest conservation easements have a high lifetime cost effectiveness to mitigate future increases in sediment loading, when future forestland conversion is certain. A combination of expenditures for afforestation, easements, and dredging maximizes reservoir lifetime and WRWI at least infrastructure lifetime cost. Creation of a Joint Grey/Green Infrastructure Optimization Committee for the Charlottesville region and a future OIE Version II are recommended. Deliverables include a Program Document, OIE Version I Manual, and the OIE Version I System written using Excel software (2010 and 2003). 2 II. Acknowledgements This interim report was prepared by Conserv, in association with Virginia Groundwater, LLC, and Civil and Environmental Services, LLC for the Virginia Department of Forestry and the U.S. Endowment for Forestry and Communities, Inc. The Project Team is indebted to Vijay Satyal, State of Oregon, and Dan Spethmann, Working Lands Investment Partners, LLC, for counsel during early stages of the project. The project could not have been completed without the generous donation of time and talents by F2F Advisory Council participants. Project Team Everette “Buck” Kline Director, Forestland Conservation Division Virginia Department of Forestry Michael Collins Executive Director, Conserv Nick Evans Virginia Groundwater, LLC Chris Sonne Civil and Environmental Services, LLC Brian Becker Conserv Project Partners participating on the F2F Advisory Council Allen Brockenbrough Virginia Department of Environmental Quality Alyson Sappington Thomas Jefferson Soil and Water Conservation District Bill Kittrell The Nature Conservancy Brad Williams Virginia Department of Forestry Ches Goodall County of Albemarle, Va. Dave Morris City of Newport News, Va. Dave Powell Virginia Department of Forestry Diane Dunaway Virginia Department of Conservation and Recreation Ed Bain Conserv Board of Directors Brian Fuller Virginia Outdoors Foundation Greg Harper County of Albemarle, Va. Gregg O’Donnell Virginia Department of Forestry John Reynolds Shenandoah National Park Trust Jay Willer Blue Ridge Homebuilders Jeffrey Plank University of Virginia Joe Jones Albemarle County Landowner Joe Kuhn Virginia Outdoors Foundation Leslie Middleton Rivanna River Basin Commission Krystel Riddervold City of Charlottesville, Va. Mark Campbell Virginia Farm Bureau Kevin McGuire Virginia Tech Mike Santucci Virginia Department of Forestry Michael Gaffney Rivanna Water and Sewer Authority Richard Collins University of Virginia 3 Rex Linville Piedmont Environmental Council Rob Farrell Virginia Department of Forestry Richard Price UVA and Conserv Board of Directors Sally Thomas County of Albemarle Sarah Richardson Virginia Department of Conservation and Recreation Tom Frederick Rivanna Water and Sewer Authority Tim Hulbert Charlottesville Regional Chamber of Commerce Tamara Ambler Rivanna Water and Sewer Authority 4 III. Table of Contents I. Abstract ............................................................................................................................ 2 II. Acknowledgements ........................................................................................................ 3 III. Table of Contents .......................................................................................................... 5 IV. Introduction................................................................................................................... 7 Background ..................................................................................................................... 7 Purpose ............................................................................................................................ 8 V. PES Program Development ........................................................................................... 9 Program Design .............................................................................................................. 9 Eligible Practice Description and Protocol ................................................................. 9 Forest Stewardship Management Plan .................................................................... 9 Harvest Site Stabilization ...................................................................................... 10 Enhanced Conservation Easement ........................................................................ 10 Forest Establishment ............................................................................................. 12 Riparian Buffer Tax Credit Match ........................................................................ 13 Fencing from Livestock ........................................................................................ 13 Landowner Enrollment ............................................................................................. 13 Phase I: Reverse Auction in the South Fork Rivanna River Reservoir Watershed (SRRRW) .............................................................................................................. 13 Phase II: Continuous Enrollment for South Fork Rivanna River Reservoir Watershed ............................................................................................................. 15 Phase III: Continuous Enrollment for entire Rivanna River Reservoir Watershed ............................................................................................................................... 16 Watershed Subarea Prioritization ............................................................................. 17 Overview ............................................................................................................... 17 Prioritization for Phase I Forest Establishment Reverse Auction ......................... 17 Prioritization for Phases II/III Forest Establishment Ongoing Enrollment .......... 18 Community Outreach ................................................................................................ 19 F2F Advisory Council and Technical Sessions .................................................... 19 Discussions with Rivanna River Basin Commission, Charlottesville City and Albemarle County, Virginia Chapter of the American Water Works Association, and the Rivanna Water and Sewer Authority ....................................................... 20 Landowner Prioritization and Marketing .................................................................. 20 General F2F Landowner Prioritization and Marketing ......................................... 20 Forest Establishment Landowner Prioritization and Marketing ........................... 21 Results (as of August, 2012) ................................................................................. 21 VI. Optimum Infrastructure Expenditure (OIE) Decision Support System ...................... 22 OIE Overview ............................................................................................................... 22 About the OIE ............................................................................................................... 22 Version I Prototype ................................................................................................... 22 OIE Version I Limitations ........................................................................................ 23 OIE Development ......................................................................................................... 24 OIE Theory ................................................................................................................... 26 OIE Architecture ........................................................................................................... 27 5 Readme File .............................................................................................................. 30 Dashboard ................................................................................................................
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