Decision-making 2: Dilemmas in Designing Forest Practices Rules 1

www.BrentLaycock.com

Today’s Agenda

Updated themes Decision-making

theoriesCase: 6% solution

policy design Tools - instrument choice Configuration

Forest Practices Code Results-based regulation FRPA

Conclusion

October 31, 2013 2

Instrument Configuration formality - guidelines or rules? transparency simplicity congruence: rule varies to match

problem

October 31, 2013 3

Riparian Protection

October 31, 2013 4

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 31, 2013 5

design challenge:

accommodating spatial diversity

October 31, 2013 6

congruence transparency simplicity

Prescriptive congruence

good good poor

Professional delegation

good poor good

Geographical delegation

good medium medium

Today’s Agenda

Updated themes Decision-making

theoriesCase: 6% solution

policy design Tools - instrument choice Configuration

Forest Practices Code Results-based regulation FRPA

Conclusion

October 31, 2013 7

October 31, 2013 8

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 31, 2013 9

New Era Agenda - 2001

Election promise: Streamline the Forest Practices Code to establish a workable, results-based Code, with tough penalties for non-compliance

Cut the forestry regulatory burden by one-third within three years, without compromising environmental standards.

October 31, 2013 Hoberg – Policy Framework 10

“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 31, 2013 11

Why they stopped calling it “the code”

Pirates’ Code: must be a pirate

for the pirates’ code to apply

the code is more what you call guidelines than actual rules

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 31, 2013 12

Result-based regulation – challenges in forestry

For many forest values, we lack the specific knowledge to design measureable performance standards

October 31, 2013 13

but still provide flexibility in choice of practice

Standards that are sufficiently specific to be clear and measurable

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 31, 2013 14

October 31, 2013 15

FRPA Design

1. Objectives established by government

2. Some performance standards3. Forest Stewardship Plan prepared

by lisencee measurable results and strategies to

meet objectives may choose government “defaults” reviewed and approved by government

4. Auditing and Compliance5. Professional Reliance

October 31, 2013 16

FRPA Regulations - Objectiveshttp://www.for.gov.bc.ca/tasb/legsregs/frpa/frparegs/frparegs.htm

Objectives for 11 values In regulation, not statute

Soils Resource features Timber including forest health Recreation resources Fish Visual Quality Wildlife Cultural Heritage Resources Biodiversity Forage Water

“without unduly reducing the supply of timber from British Columbia's forests”

October 31, 2013 17

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 31, 2013 18

FRPA Regulations http://www.for.gov.bc.ca/tasb/legsregs/frpa/frparegs/frparegs.htm

Performance based regulation for fish passage:

▪ Activities must not have a material adverse effect on fish passage in a fish stream

FRPA: Forest Stewardship Plans

5 year plan Map of development activities

proposed Results and strategies to address 11

FRPA values Or reliance on defaults

Reviewed and approved by government

Legal document, basis for enforcementOctober 31, 2013 19

October 31, 2013 20

FPRA “defaults” = Code rules

Riparian Class

Riparian Management Area

(metres)

Riparian Reserve Zone (metres)

Riparian Management Zone

(metres)

S1-A 100 0 100

S1-B 70 50 20

S2 50 30 20

S3 40 20 20

S4 30 0 30

S5 30 0 30

S6 20 0 20

FRPA Implementation

Sample plan from Tolko

Forest Practices Board Report 2006 FSPs inscrutable and

not effective for public review

Industry is not committing itself to enforceable or measureable results, preferring instead ▪ Default requirements▪ Strategies without

measure outcomesOctober 31, 2013 21

78%

8%

4% 10%

Forest Practice Com-mitments for Soils, Biod-

iversity and Riparian Areas

1. Default Practice

2. Default with Minor Change

3. Land Use Objec-tive

4. Alternative Prac-tice

Leah Malkinson Thesis

Conclusion

Design dilemmas – optimal specificity Tradeoffs between

congruence, simplicity, transparency

Due to measureability problems, FRPA not as results-based as envisionedOctober 31, 2013 22

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 31, 2013 23

October 31, 2013 24