Systems Approach for EPA’sSustainability Strategy

Gary Foley , USEPACo-Chair, Institutions & Development Implementaion Board (IDB)

Sept 19, 2014

A POSSIBLE IDIB CONTRIBUTION TO ENVIRONMENTAL INDICATORS

Presntation OverviewOverview EPA’s Approach to Sustainability

Discuss EPA’s Triple Value (3V) approach:

A platform for capacity building with stakeholders & decision makers while addressing challenging sustainability issues (e.g., Narragansett Bay pilot)

An integrative framework for big picture “systems thinking”, considering not only environment but also economy and society with broad focus on energy, water, materials, infrastructure, etc.

Sustainability and Capacity Building in the FY 2014-2018 EPA Strategic PlanStrategic Goals

1. Taking Action on Climate Change and Improving Air Quality

2. Protecting America’s Waters3. Cleaning Up

Communities and Advancing Sustainable Development

4. Ensuring the Safety of Chemicals and Preventing Pollution

5. Enforcing Environmental Laws

Cross-Cutting Strategies

Working Toward a Sustainable Future

Working to Make a Visible Difference in Communities

Launching a New Era of State, Tribal, Local and International Partnerships

Embracing EPA as a High-Performing Organization

How are all these aspirations connected?

And how do they relate to existing statutes?

Sustainability and Capacity Building in the FY 2014-2018 EPA Strategic PlanStrategic Goals

1. Taking Action on Climate Change and Improving Air Quality

2. Protecting America’s Waters3. Cleaning Up

Communities and Advancing Sustainable Development

4. Ensuring the Safety of Chemicals and Preventing Pollution

5. Enforcing Environmental Laws

Cross-Cutting Strategies

Working Toward a Sustainable Future

Working to Make a Visible Difference in Communities

Launching a New Era of State, Tribal, Local and International Partnerships

Embracing EPA as a High-Performing Organization

How are all these aspirations connected?

And how do they relate to existing statutes?

REQUIRES CAPACITY BUILDING

Synergy of Cross-Agency Strategies

5

Working for a sustainable future

Making a difference in communities

Launching a new era of partnerships

Enhancing EPA performance

Sustainable Products& Purchasing

Sustainable MaterialsManagement

GreenInfrastructure

EnergyEfficiency

Focus Areas

Synergy of Cross-Agency Strategies

6

Working for a sustainable future

Making a difference in communities

Launching a new era of partnerships

Enhancing EPA performance

Sustainable Products& Purchasing

Sustainable MaterialsManagement

GreenInfrastructure

EnergyEfficiency

Focus Areas

RE

QU

IRE

S C

APA

CIT

Y

BU

ILD

ING

Discovering SynergiesHow can a regulatory agency build on

existing statutory requirements to support the achievement of sustainability objectives? (e.g., climate action)

How can a regulatory agency meet existing statutory requirements in a ”smarter” way (more results with fewer resources) by leveraging sustainability initiatives (innovative approaches, voluntary actions, etc.)?

7

Regulatory performanc

e

Sustainability

performance

Discovering SynergiesA Simple Air Quality Example

Increased carpooling and public transit use

Reduced air pollution and

GHG emissions

Reduced cost of

pollution control

Reduced regulatory

burden

Investment in air

quality education

Reduced medical

costs and improved quality of

life

Addressing LegislativeMandatesWith fewer

EPA resourcesfor traditionalapproaches

IncreasedResources

For voluntary& innovativeapproaches

Discovering SynergiesA Simple Green Infrastructure Example

Increased green

space and riparian zones

Improved stormwater attenuation

Reduced cost of water

treatment

Reduced regulatory

burden

Investment in green

infrastructure

Improved climate

resilience

Improved quality of

life

Addressing LegislativeMandatesWith fewer

EPA resourcesfor traditionalapproaches

IncreasedResources

For voluntary& innovativeapproaches

Discovering SynergiesTriple Value (3V) Framework

Environment(Natural Capital)

waste and emissions may degrade the

environment

industrial demand for ecological goods and

services places stress on

natural capital

community use of ecological goods

and services places stress on natural capital

some waste is recovered

and recycled

emissions may harm humans

Society (Human & Social Capital)

Industry (Economic & Built Capital)

economic valueis created for

society

labor is utilized in industry

Discovering SynergiesTriple Value (3V) Framework

Environment(Natural Capital)

waste and emissions may degrade the

environment

industrial demand for ecological goods and

services places stress on

natural capital

community use of ecological goods

and services places stress on natural capital

some waste is recovered

and recycled

emissions may harm humans

Society (Human & Social Capital)

Industry (Economic & Built Capital)

economic valueis created for

society

labor is utilized in industry

TRADITIONAL FOCUS OF GOV’T & NGOs

TRADITIONAL TARGETS OF GOV’T & NGOs

Strategic & Beneficial Use of the 3V Framework (see following graphic)

Provide unifying conceptual framework to look at the issues of a stakeholder group from a big picture point-of-view

Do stakeholder capacity building to understand available interventions and desired outcomes (sets of indicators that show what can be achieved)

Understand the use high-level composite performance indicators to capture progress in sustainable resource use and resulting benefits (water, energy and waste intensity)

Assess the availability of data/science to produce causal linkages between interventions and indicators.

Beneficial Impacts of EPA Initiatives

Environment(Natural Capital)

Society (Human & Social Capital)

Industry (Economic & Built Capital)

WasteTreatment

PollutionPrevention

RenewableResources

GreenBuildings

Ecosystem Restoration

EnvironmentalJustice Brownfields

Revitalization

Green Chemistry

SustainableAg & Forestry

Remediation

Recycling

Risk Assessment

Water Conservation

Sustainable Products& Purchasing

Sustainable MaterialsManagement

GreenInfrastructure

Energy Efficiency Energy Efficiency

2015Focus

ROE indicator

s

Waste intensity

Water intensity

Energy intensity

Economy Society

Environment

Employment &

investment

Water quality & ecosystem

health

Storm intensity &

sea level rise

Industry

BusinessContinuit

y

Operating efficiency

Forest & land

preservation

Built environment

Impervious

surfaces

People

Human health

Quality of life

Water

Infrastructure

affordability

Stormwater

attenuation

Citizen prosperit

y

Property

values

Economic developme

nt

Energy, water, & waste volume

Amplifies

Diminishes

Indicators

Legend

G.I. Benefits

Environmental pollution

Flood resilien

ce

Cultural & recreation

al amenities

Green Infrastructure: Triple Value Creation an example

The Systems Approach in Action:Nutrient Management Policies

for Narragansett Bay Watershed

EPA New England (Region 1) and

Office of Research & Development

Triple valuesimulation

Sustainability Realization Process

System Characterizati

on

Sustainability

Assessment

Sustainability

Enhancement

System Adaptation

Scope, context, stakeholders,

goals, problems, stressors, barriers, solution options,

thenGo/NoGo Decision

Indicators, baseline

assessment, option

evaluation, risks & benefits, trade-offs,

knowledge gaps

Decision making,

consideration of system resilience

Monitoring,

response to

problems

Stakeholder Involvement

Conceptualframework

Intervention Outcomes

Lessons for Gov’ts policy &

research

2 to 4 months 6 to 9 months

“The Triple Value Model: A Systems Approach to Sustainable Solutions,” Clean Technology & Environmental Policy, 2014.

Application of Systems Thinkingat a Watershed Scale

Challenges of Nutrient PollutionConcentrations of Nitrogen (N) and

Phosphorus (P) in many U.S. waterways have increased greatly due to human sources, e.g., municipal wastewater treatment, agricultural & stormwater runoff, airborne emissions

These excess nutrients result in algal blooms and degraded aquatic ecosystems, adversely impacting drinking water, fishing, recreation, and tourism

N and P are difficult to control or remove because the sources are broadly dispersed, the environmental pathways and mechanisms are complex, and the removal technologies are costly and energy-intensive

Triple Value (3V) Framework

Environment(Natural Capital)

waste and emissions may degrade the

environment

industrial demand for ecological goods and

services places stress on

natural capital

community use of ecological goods

and services places stress on natural capital

some waste is recovered

and recycled

emissions may harm humans

Society (Human & Social Capital)

Industry (Economic & Built Capital)

economic valueis created for

society

labor is utilized in industry

NEXT STEP

FROM THE GENERIC FRAMEWORKTO A

PROBLEM-SPECIFIC FRAMEWORKFOR

SUSTAINABLE WATER RESOURCES20

Solution Options for Sustainable Water Resources

water & nutrient

reuse

water demand reduction

Environment

SocietyEconomyAgricultu

re

Energy

Manufacturing

Transport

Infrastructure

industrial & commercial

water use reduction

BusinessesHouseholds

Public Utilities

coastal & wetland restoration & resilience

Forests SoilsEcosystem

s

Living Species

Watersheds

Groundwater

Global Climate

runoff reduction

exposureand risk

reduction

water conservation & rain harvesting

wastewater treatment

ecosystem impact reduction

green infrastructure &low-impact development

pollutionprevention

innovative technologies

stormwatermanagement

best management practices

discharge limits

NEXT STEP

REFINING THE PROBLEM-SPECIFIC FRAMEWORK

INTO ANUTRIENT MANAGEMENT DIAGRAM SHOWING LINKAGES BETWEEN

INTERVENTIONS & INDICATORS22

LegendSustainabilityIndicators

Amplifies

Diminishes

Property Values

Economy Society

Environment

Social Development

Well-Being

Examples of Indicators for Nutrient Management

Resource flows• Energy & water

demand• Renewable energy

use• GHG emissions• Wastewater volume• Wastewater pollution• Food waste volume• Fertilizer application

Climate Change

Access to Nature

• Finfish, salmon, etc.• Shellfish beds

InterventionsTreatment Biodigestion Behavior change Water quality trading

CSO tunnels Biofiltration Design for resilience Flood control

LID and GI Aquaculture Habitat protection Land use zoning

Best practices Phytoremediation Hydrologic engin. Local sourcing

A

B

C

D

E

F

G

H

A

F

G

Nutrient and Pathogen Inflows

H

J

K

L

M

K

N

O

P

Q

Q

Agriculture, Fishing,

Logging, Tourism• Nutrient conversion ratio • Available farmland• Agricultural chemical

input• Land development• Tourism activity and

revenue• Salmon & shellfish

harvest• Agricultural production• Lumber production

Food supply• Locally-

produced• Seafood quality

Resource Flows

Economic Development

Food Supply

E

Agriculture, Fishing,

Logging, TourismD

Fish Abundance

• Pollutant concentrations in water• Stream temperature,

acidification• Water quality impairment, TMDL• Fish & shellfish habitat

conditions • Benthic index—biotic integrity• Biodiversity in waterways• Hydrographic changes

• Nitrogen & phosphorus loadings• Chemical & microbial

contaminants• Natural attenuation in

waterways

• Snowpack• Precipitation • Sea level rise• Storm

intensity

Storms & Floods

• Floodplain area• Natural protection• Flood damage risk• Stormwater runoff• Land cover

changes

Storms & Floods

O

• Cultural spaces

• Tribal fish catch

• Recreation

• Quality of life• Flood insurance

cost• Household income

• Population growth• Job creation & job quality

• Industry growth (GDP)• Built environment &

infrastructure

Human HealthB

P

C

N

Coastal Ecosystem Health M

L

J

Adapted from the Tulalip Tribe/Region 103V Model for Snohomish

Basin

NEXT STEP

REFINING THE NUTRIENT MANAGEMENT DIAGRAM INTO THE

NARRAGANSETT BAY MODELWITH CAUSAL LINKAGES

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3V Simulation for Narragansett Bay

Stormwaterrunoff

Fishing & Tourism

Surface water

conditions

Fish kill likelihood

Dissolved oxygen

Watershed GDP

Aquatic ecosystem impairment

Wastewater treatment

Municipal tax revenue

Nutrient loadings

Disposableincome

Atmospheric deposition

Agricultural fertilizer use

Near-shore

turbidity

Property values

Resident beach visits

Septic tanks &

cesspools

Algae blooms

Climate change

Pathogen loadings

Rain

Economy

Society

Energy demand

Finfish & shellfish

abundance

Recreational fishing

Environment

Legend

SustainabilityIndicator

Causal link PotentialIntervention

Emissions & VMT

reductions

BMPs

Aquaculture

ISDS improvement

s

Waterway engineering

Improved treatmen

t

CSO tunnels

LID and GI

NEXT STEP

ADDING THE DASHBOARD TO THE

NARRAGANSETT BAY MODEL

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Interactive Dashboard Interface for User Definition of “What-if” Scenarios

27

NEXT STEP

USING THE DASHBOARD TO FORECAST

INTERVENTIONS vs BASE CASEAND

VIEW CHANGES IN THE INDICATORS28

$

Benefits : Property Value Rise after 50% N Reduction

ConclusionsThe 3V model can provide a unifying

framework Capacity Building for Decision Makers &

StakeholdersDevelop cross-cutting sustainability indicatorsDevelop a “big picture”, screening-level system

dynamics model focused on the problems identified by the stakeholders and the interventions that could be used

Use of the model projections over 20 to 40 years by stakeholders to understand their issues in the “big picture” context and better discover the synergies and also possible “unintended consequences”

Systems Thinking“Systems thinking is a discipline for seeing wholes rather than parts, for seeing patterns of change rather than static snapshots, and for understanding the subtle interconnectedness that gives living systems their unique character.”

Peter Senge, author of The Fifth Discipline:

The Art and Practice ofthe Learning Organization