1. Decision-making 2: Dilemmas in Designing Forest Practices Rules 1 www.BrentLaycock.com

2. Today’s Agenda Updated themes Decision-making theories Case: 6% solution policy design – Tools - instrument choice – Configuration Forest Practices – Code – Results-based regulation – FRPA Conclusion October 30, 2014 2

3. New Themes A major challenge for forest policy making is designing policies to accommodate spatial diversity Forest practices regulation in BC relies on a combination of vague performance objectives, practice requirements, and planning requirements. Measurability challenges have limited efforts to develop a results-based framework October 30, 2014 3

4. Readings this week October 28, 30 – Decision-making: Dilemmas in policy design: choice of instrument, making trade-offs, optimal precision of rules Marty Luckert, David Haley, and George Hoberg, Policies for Sustainably Managing Canada’s Forests: Provincial Tenure, Stumpage Fees, and Forest Practices, (Vancouver: UBC Press, 2011), pp. 97-102 CONCEPTS OF POLICY DESIGN AS APPLIED TO FOREST PRACTICES, ACCOMMODATING SPATIAL DIVERSITY Forest Practices Board, A Decade in Review: Observations on Regulation of Forest and Range Practices in British Columbia HOW FRPA IS DESIGNED, IMPLEMENTATION CONSTRAINTS (NEXT WEEK) – not responsible for specific material on PR or effectiveness monitoring October 28, 2014Sustainable Forest Policy4

5. Instrument Configuration formality - guidelines or rules? transparency simplicity congruence: rule varies to match problem October 30, 2014 5

6. Riparian Protection October 30, 2014 6

7. design challenge: accommodating spatial diversity Objective: congruent, but simple and clear 1.Vary the rules to account for different circumstances (Prescriptive congruence) 2.Rely on professional judgment (Professional delegation) 3.Rely on local plans (Geographical delegation) October 30, 2014 7

8. design challenge: accommodating spatial diversity October 30, 2014 8 congruencetransparencysimplicity Prescriptive congruence good poor Professional delegation goodpoorgood Geographical delegation goodmedium

9. Sample Short answer question Using forest policy examples, describe the three approaches to accommodating spatial diversity. October 28, 2014Sustainable Forest Policy9

10. Today’s Agenda Updated themes Decision-making theories Case: 6% solution policy design – Tools - instrument choice – Configuration Forest Practices – Code – Results-based regulation – FRPA Conclusion October 30, 2014 10

11. BC Forest Practices: Evolution pre-1994 – guidelines and plans 1995-2004 – Forest Practices Code (“the Code”) – mix of planning and practice regulations – considered overly costly, complex, and prescriptive by industry – considered weak and inadequate by environmentalists – very high compliance October 30, 2014 11

12. “results-based code” 2004 Forest Range and Practices Act (2002) – Simplified planning structure eliminated approval of site level plans – increased reliance on “forest stewardship plans” to propose results and strategies to meet specified government objectives Major design tension: – government’s desire to have strong default standards – industry’s desire for maximum flexibility October 30, 2014Hoberg – Policy Framework12

13. Why they stopped calling it “the code” October 31, 2013 13

14. Result-based regulation - concept aka Performance-based regulation Focus on objective Leave means up to industry 3 components: – Characterize desired outcomes – Specify performance standards – Measure performance October 30, 2014 14

15. Result-based regulation – challenges in forestry For many forest values, we lack the specific knowledge to design measureable performance standards October 30, 2014 15 but still provide flexibility in choice of practice Standards that are sufficiently specific to be clear and measurable

16. FRPA solution Rather than government-provided performance standards, require plans to include “results or strategies” If operators prefer not to develop their own, they choose government “default standards” October 30, 2014 16

17. FRPA Design 1.Objectives established by government 2.Some performance standards 3.Forest Stewardship Plan prepared by lisencee – measurable results and strategies to meet objectives – may choose government “defaults” – reviewed and approved by government 4.Compliance and enforcement 5.Professional Reliance 6.Effectiveness Monitoring October 30, 2014 17

18. FRPA Regulations - Objectives http://www.for.gov.bc.ca/tasb/legsregs/frpa/frparegs/frparegs.htm http://www.for.gov.bc.ca/tasb/legsregs/frpa/frparegs/frparegs.htm Objectives for 10 values In regulation, not statute – Soils – Timber including forest health – Wildlife – Riparian – Fish – Community watershed – Wildlife and biodiversity – stand – Wildlife and biodiversity – landscape – Visual Quality – Cultural Heritage Resources “without unduly reducing the supply of timber from British Columbia's forests” October 30, 2014 18

19. Example FPRA Objective: Riparian The objective set by government for water, fish, wildlife and biodiversity within riparian areas is, without unduly reducing the supply of timber from British Columbia's forests, to conserve, at the landscape level, the water quality, fish habitat, wildlife habitat and biodiversity associated with those riparian areas. October 30, 2014 19

20. FRPA Regulations http://www.for.gov.bc.ca/tasb/legsregs/frpa/frparegs/frparegs.htm http://www.for.gov.bc.ca/tasb/legsregs/frpa/frparegs/frparegs.htm Performance-based regulation for fish passage (called a practice standard): October 30, 2014 20 Activities must not have a material adverse effect on fish passage in a fish stream

21. FRPA: Forest Stewardship Plans 5 year plan Map of development activities proposed Results and strategies to address 10 FRPA values – Or reliance on defaults Reviewed and approved by government Legal document, basis for enforcement October 30, 2014 21

22. FPRA “defaults” = Code rules October 30, 2014 22 Riparia n Class Riparian Management Area (metres) Riparian Reserve Zone (metres) Riparian Management Zone (metres) S1-A1000 S1-B705020 S2503020 S34020 S4300 S5300 S6200

23. Forest Practices Board “Decade in Review) FSPs meet legal requirements Too many results and strategies are not measurable or verifiable Poor vehicles for planning and public involvement Surprisingly little innovation: licencees adopt default October 30, 2014 23 Consequence? Surprisingly little change from the Code

24. Sample exam question True or False: The key change when the BC government replaced the Forest Practices Code with the Forest Range and Practices Act is that the government established measurable, performance-based for a wide range of forest values. October 30, 2014 24

25. Conclusion Design dilemmas – optimal specificity – Tradeoffs between congruence, simplicity, transparency Due to measureability problems, FRPA not as results-based as envisioned October 30, 2014 25

26. New Themes A major challenge for forest policy making is designing policies to accommodate spatial diversity Forest practices regulation in BC relies on a combination of vague performance objectives, practice requirements, and planning requirements. Measurability challenges have limited efforts to develop a results-based framework October 30, 2014 26

27. October 30, 2014 27