A multi-benefit framework for funding forest management in fire-driven ecosystems across the Western U.S.

Forests across the Western U.S. face unprecedented risk due to historic fire exclusion, environmental degradation, and climate change. Forest management activities like ecological thinning, prescribed burning, and meadow restoration can improve landscape resilience. Resilient forests are at a lower risk of high-intensity wildfires, drought, insects, and other disturbances and provide a wide range of benefits to ecosystems and communities. However, insufficient funding limits implementation of critically needed management. To address this challenge, we propose a multi-benefit framework that leverages the diverse benefits of forest management to engage a suite of stakeholders in sharing project costs. We take a three-pronged approach to develop our conceptual model: examining existing frameworks for environmental project implementation, conducting a literature review of forest management benefits, and evaluating case studies. Through our framework, we describe the steps to engage partners, starting by identifying benefits that could accrue to potential public and private beneficiaries, and moving through an iterative and collaborative process of valuing benefits, which can accrue over different spatial and temporal scales, in close consultation with potential beneficiaries themselves. The aim of this approach is to stack funding streams associated with each valued benefit to fully fund a given forest management project. The multi-benefit framework has the potential to unlock new sources of funding to meet the exceptional challenges of climate and wildfire disturbances. We apply the framework to dry forests of the Western U.S., but opportunities exist for expanding and modifying this approach to any geography or ecosystem where management provides multiple benefits.

Valuing the benefits of forest restoration on enhancing hydropower and water supply in California's Sierra Nevada.

Forest restoration through mechanical thinning, prescribed burning, and other management actions is vital to improving forest resilience to fire and drought across the Western United States, and yields benefits that can be monetized, including improvements in water supply and hydropower. Using California's Sierra Nevada as a study area, we assess the water and energy benefits of forest-restoration projects. By using a scalable top-down approach to track annual evapotranspiration following forest disturbance, coupled with hydropower simulations that include energy-price information, and marginal prices for water sales, we project the potential economic benefits of hydropower and water sales accruing to water-rights holders. The results found that water-related benefits from strategically planned fuels-reduction treatments now being carried out can be sufficient to offset costs of management actions aimed at forest restoration, especially in the face of climate change. Our findings justified investments in restoring forests and reinforce the central role of water and hydropower providers in partnerships for management of source-water watersheds. Results also highlighted the importance of accurate, scalable data and tools from the hydrology and water-resources community.