The Wisconsin Green
Tier Program:
Developing An Evaluation Tool
Analysis by:
Darryn Beckstrom, Jessalyn Frost,
Erin Rushmer, and Melody Sakazaki
Overview
Purpose of Project
 New Governance Model
 Green Tier Background and History
 Evaluation Criteria
 Recommendations

Purpose

To develop a series of criteria to evaluate
the Green Tier program, identify potential
data sources, and construct a timeline for
data collection
Background
Process Criteria
Outcomes Criteria
Recommendations
What is Green Tier?

Innovative environmental program

Encourages partnerships between Wisconsin
Department of Natural Resources and Wisconsin
businesses

Customized flexibility in exchange for a
business’s commitment to superior
environmental performance
Background
Process Criteria
Outcomes Criteria
Recommendations
New Governance

Main characteristics of New Governance are:
Classic Public Administration Model vs. New Governance Model
Classic Public Administration New Governance
Program/Agency
Tool
Hierarchy
Network
Public vs. Private
Public & Private
Command & Control
Negotiation & Persuasion
Background
Process Criteria
Outcomes Criteria
Recommendations
History: Pilot Program

Environmental Cooperative Pilot Program (ECCP)
authorized in 1997

Results: Six companies participated- all yielded
exceptional environmental results
- Example: WE Energies

Additional Benefits: Mentoring
Background
Process Criteria
Outcomes Criteria
Recommendations
Green Tier

Two Tiered System: Representing an
increasing level of environmental
performance
– Tier 1
– Tier 2

Charters
Background
Process Criteria
Outcomes Criteria
Recommendations
Evaluation Criteria

Process Criteria
– Transparency
– Stakeholder Participation

Outcomes Criteria
– Participants Costs and Benefits
– Environmental Results
– Relationships
Background
Process Criteria
Outcomes Criteria
Recommendations
Process Criteria

Transparency Criterion:
– level of stakeholder and WDNR access to information

Stakeholder Participation Criterion:
– Extent to which stakeholders given opportunity to
participate
throughout the Green Tier application and
negotiation process
Background
Process Criteria
Outcomes Criteria
Recommendations
Transparency Criterion

Justification:
– Facilitate trust-building relationship
– Ensure open negotiations and agreements

Methodology:
– Measured using a set of benchmarks
Background
Process Criteria
Outcomes Criteria
Recommendations
Stakeholder Participation Criterion

Justification:
– New governance focus on citizen involvement
– Broad participation  more representative
program

Methodology:
– Measured using a set of benchmarks
Background
Process Criteria
Outcomes Criteria
Recommendations
Outcomes Criteria

Participants Costs and Benefits Criteria

Environmental Results Criteria

Relationships Criteria
Background
Process Criteria
Outcomes Criteria
Recommendations
Participants Costs and Benefits

Transaction Costs Criterion:
– Participation costs

(EMS) Costs and Benefits Criterion:
– Costs and benefits of implementing and managing an
EMS

Benefits Criterion:
– Whether incentives created measurable benefits
to/for businesses and the WDNR
Background
Process Criteria
Outcomes Criteria
Recommendations
Transaction Costs Criterion

Justification:
– Essential to a traditional Cost-Benefit Analysis

Methodology:
– Survey data
– Case studies of participating businesses
(Tier 1, Tier 2, and Charter)
Background
Process Criteria
Outcomes Criteria
Recommendations
Transaction Costs to Businesses
Example: MEGTEC Systems, Inc. (Tier 2)
Estimated Transaction Costs:

Application Process Costs
– Application: $1,000
– Negotiation: $1,300

On-Going Costs
– Compliance Audit: $1,200
– Interested Persons Group : Not yet implemented

Total: $3,500
Background
Process Criteria
Outcomes Criteria
Recommendations
Transaction Costs to the WDNR

Application Process Costs:
– Example: Reviewing Applications

On Going Costs:
– Example: Recruiting Green Tier participants,
Reviewing Reports, and Audits
Background
Process Criteria
Outcomes Criteria
Recommendations
EMS Costs and Benefits Criterion

Justification:
– Participation cost but possible benefit
– Costs of new policy instruments

Methodology:
– Case studies (Tier 1, Tier 2, Charters)
– Survey administered to WDNR personnel
Background
Process Criteria
Outcomes Criteria
Recommendations
EMS Costs and Benefits to Businesses
Example: MEGTEC Systems, Inc. (Tier 2)
 Estimated EMS Costs:
-Initial:
$60,500
-On-Going:
$ 9,850
-Total:
$70,350
 Benefits:
-Manage hazardous waste more efficiently
-“Sleep Insurance”
Background
Process Criteria
Outcomes Criteria
Recommendations
EMS Costs and Benefits to the WDNR

Costs:
– Example: Reviewing EMS reports and
enforcement

Benefits:
– Reduced monitoring
– Example: Reduced inspection frequency
Background
Process Criteria
Outcomes Criteria
Recommendations
Benefits Criterion

Justification:
– Regulatory efficiency incentives
– New governance incentives

Methodology:
– Survey businesses participating in Green Tier
– Survey eligible businesses
– Case studies
Background
Process Criteria
Outcomes Criteria
Recommendations
Environmental Results Criteria

Direct Environmental Indicators:
– Achievement of environmental goals and
broad environmental indicators

Learning and Innovation:
– Effort to work with others in supply chain or
industry to increase environmental
performance
Background
Process Criteria
Outcomes Criteria
Recommendations
Direct Environmental
Results Criterion

Justification:
– Identify and recognize superior environmental
performance
– Maintain integrity of a Green Tier agreement

Methodology:
– Data collection
 goals and commitments listed in contract
 broad environmental indicators
Background
Process Criteria
Outcomes Criteria
Recommendations
Learning and Innovation Criterion

Justification:
– Shifting regulatory power from hierarchical
agencies (Command and Control) to
organizational networks (New Governance)

Methodology:
– Case-studies
– Interview representatives
– Survey data
Background
Process Criteria
Outcomes Criteria
Recommendations
Relationships Criteria

Between WDNR and Business Community:
– How Green Tier businesses perceive the WDNR before
and after participating in the Green Tier program

Within WDNR:
– The extent of the learning and trust taking place within
the WDNR

Between Community and Green Tier Businesses:
– The perceived effect of each business’s participation in
Green Tier on their local community
Background
Process Criteria
Outcomes Criteria
Recommendations
WDNR and the Business
Community Criterion

Justification:
– Encourage participation of interested parties
– Promote trust and cooperation

Methodology:
– Survey businesses and local governments
– Survey on Green Tier website
Background
Process Criteria
Outcomes Criteria
Recommendations
Within the WDNR Criterion

Justification:
– Foster awareness
– Increase knowledge and trust

Methodology:
– Random survey of WDNR employees
Background
Process Criteria
Outcomes Criteria
Recommendations
Between the Community and Green
Tier Businesses Criterion

Justification:
– Promotes trust and confidence among
stakeholders
– Creates a forum for cooperative relationship

Methodology:
– Focus groups
Background
Process Criteria
Outcomes Criteria
Recommendations
Recommendations

Form a Joint Executive-Legislative Working
Group to Oversee the Evaluation:
–Assess suitability of the criteria
–Establish evaluation timeline
–Identify funding
–Set realistic expectations for success
Background
Process Criteria
Outcomes Criteria
Recommendations
Recommendations Continued
Provide an open evaluation process
 Evaluate relationship between Legislature
and WDNR
 Measure learning and trust between Green
Tier participating businesses and their
employees
 Increase public awareness of Green Tier

Background
Process Criteria
Outcomes Criteria
Recommendations
Evaluation Timeline
Relationships between the WDNR and the Business
Community Criterion
Costs Criteria and Learning
and Innovation Criterion
Conduct case study
interviews with Green
Tier businesses.
Conduct interviews with WDNR
personnel.
Survey participating Green Tier
businesses.
Timeframe: about 2-3 months.
Survey businesses eligible for Green Tier about
possible incentives for participation.
Timeframe: about 2 months.
Data Analysis
Analyze data and
complete final
evaluation.
Relationships within the WDNR Criterion
Survey WDNR employees about Green Tier.
Timeframe: about 2-3 months.
Timeframe: about 2 months.
Month 1
__________________________________________________________
Stakeholder Participation and
Transparency Criteria
Collect information from
the WDNR (this
information should be
available through the
Green Tier application
process)
Timeframe: about 1 month.
Direct Environmental
Indicators Criterion
Collect
environmental results
data regarding each
business and the
state as a whole from
the WDNR.
Timeframe: about 2-3 weeks.
Relationships between
the Community and
Green Tier businesses
Criterion
Conduct focus
group of
community
perceptions of
Green Tier
businesses.
Month 10-12
Data Compilation
Assemble all
collected
information and
data for
evaluation.
Timeframe: about 1
month.
Timeframe: about 1
month.
Background
Process Criteria
Outcomes Criteria
Recommendations
Questions?