collaborative finance structures - california water commission
TRANSCRIPT
Collaborative FinanceStructures
February 2021
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Overview
► Natural Infrastructure projects – like Conveyance projects – have multiple benefits, but it can be hard to engage all stakeholders / beneficiaries. ► Conveyance is pipes and canals, but also rivers and streams
► Forest Resilience Bonds (FRBs) = proven public-private partnerships to finance/fund collaborative watershed projects
► Example: Watershed Health FRB allows multiple groups to collaboratively finance projects that benefit all parties► Pay based on the benefits YOU receive► Structure payments over the useful life of the project► Leverage other public investments at the federal, state, and
municipal level
► FRB structure is flexible to fit any multi-beneficiary project
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Connecting Investor Capital to Conservation
Investor Capital
Immense, untapped
resource to finance
conservation
Evaluation of Benefits
Innovative Contracts
Financial Vehicle
Ecosystem Services
Quantifies benefits
accruing to multiple
stakeholders
Monetizes multi-
faceted benefits as payments
Converts contractual payments
into investor returns
Fire, water, and hydro benefits
valuable to stakeholders
Forest Resilience Bond
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How FRBs Work
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Pilot FRB: Yuba Restoration
► North Yuba River Watershed, Tahoe NF, California
$4M FRB
Restoration work 2019 – 2022
Restoring 7,114 acres => protecting 15,000 acres
Fuels Reduction, Meadow Restoration, Rx burns
Key partnerships: USFS, CA Stateand Yuba Water Agency
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Pilot FRB: Structure & Stakeholders
Investors
Loan Agreements
Loan Agreement
Grant Agreement
Stewardship Agreement
Green = cash flowsOrange = contracts
Service Contract
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Driving Scaled Investment and Impact
► Start with initial FRB of $4M -$10M
Scale to future FRBs of $100M+ – Same
watershed
– Same stakeholders
– Same contracts
Cornerstone for sustainable rural development
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Thank [email protected]