EPA/600/R-07/057
                                 Research Prospectus

                   Willamette Ecosystem Services Project
                                  Western Ecology Division
                                        May 2007
Goal
The Willamette Ecosystem Services
Project seeks to quantify ecosystem
services and understand the effects
of anthropogenic stresses  on those
services in order to provide a  rigor-
ous scientific basis for valuing eco-
logical benefits of existing and pro-
posed policies.
Problem Statement

     The EPA has not adequately valued the

ecosystems services that provide for human

well-being.

     While the agency has achieved impressive reduc-
tions in point source pollution, further improvements in
environmental quality over the past decade have been
problematic. This is primarily because of economic con-
straints to implementing regulations and because of our
inability to influence non-point source pollution.

     Economic constraints have led to requiring bene-
fit-cost analysis before regulations can be put in place.
The EPA uses traditional benefit-cost analysis to evalu-
ate proposed actions that are intended to protect the en-
vironment (http://www.epa.gov/regulations/follow.htm;
Executive Order  12866,  30  September 1993).  Fre-
quently, these analyses are performed for  single issue
problems with little spatial and temporal understanding
of how proposed  decisions will  affect the ecosystems
involved, or of their contribution to human well-being.
To that end EPA has been criticized by its Science Ad-
visory Board (SAB) for dramatically undervaluing im-
provements to ecosystems resulting from  proposed
regulations (US EPA, 2006). Undervaluing ecosystem
services can result in failure  to implement necessary
environmental regulations.

     Non-point source pollution such as agricultural
runoff and greenhouse gas emissions, does not lend it-
self to traditional "end-of-pipe" regulation. Besides aris-
ing  from dispersed, uncontrolled  sources, non-point
pollutants become intricately linked with ecological
processes. Ecosystems can affect the amount of pollut-
ants entering the soil, air and water. Ecosystems can
influence pollutants in different ways depending on the
particular source and type. Ecosystems can remove or
sequester pollutants thereby providing a cleansing ser-
vice. However, ecosystems that are disturbed, or are in a
state of decline may not provide those services that con-
tribute to human well-being and can actually add to ad-
verse effects.

     EPA's inability to value ecosystem services  has
prevented full recognition of the benefits to human well-
being provided by proposed regulations and policies.
While today's technology and knowledge can reduce
considerably the human impacts on ecosystems, they are
unlikely to be deployed fully until ecosystem services
cease to be perceived as free and limitless, and their full
value is taken into account. We may know the techno-
logical cost of providing clean drinking water and clean
air, but we do not really know the value of lost or exist-
ing ecosystem services, which may perform the same
functions more economically. Without this understand-
ing we cannot realistically determine the cost of pollu-
tion-control regulations, nor can we calculate the eco-
nomic benefits of ecosystem services.


 Project Objectives

 •   Provide   a   model-based    ap-
 proach  that predicts  responses of
 ecosystem  services to  probable fu-
 ture conditions.
 •   Identify  critical  knowledge gaps
 in  the ecological processes underly-
 ing ecosystem services.
 •   Quantify ecosystem  services,  in-
 cluding their distribution, status, and
 responses  to  current  and  projected
 future conditions.
 •   Evaluate net  benefits of bundled
 ecosystem  services  and  tradeoffs
 among   management  actions that
 affect these services.

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                                                                                      EPA/600/R-07/057
Research Needs
      The research proposed in this project addresses
some of the most complex, divisive, and important eco-
logical challenges that will be facing the nation through
this century. EPA's Regional and Program Offices have
a growing need to  evaluate  complex environmental
problems. This is particularly true for non-point source
pollution resulting from land use practices and widely
dispersed  pollutants  such as nitrogen deposition  and
carbon dioxide emissions.
      With the success of sulfur trading to control this
important source of acid rain, the EPA has demonstrated
the  ability to  achieve designated reductions in point
source pollutants  using  economic forces. Moreover,
trading has had limited success  in regulating other eco-
logical goods and services such as fisheries and water
resources (Colby 2000).  Similar approaches for control-
ling  non-point pollutants—ranging from  greenhouse
gases to water pollutants—by harnessing the power of
market economics are being considered. However, ef-
fective application of economic-based techniques to
non-point pollution requires the  ability to apply value to
ecosystem services.
      The EPA recognizes ecosystem services as the
outputs of ecosystem processes that contribute to human
well-being (USEPA 2006). To protect and manage eco-
systems in support of human well-being, we  need to
know what services ecosystems  provide, the distribution
of those  services across the landscape, and what eco-
logical processes influence them. Applying the concept
of ecosystem services provides  a way to value ecologi-
cal processes and their linkages  to any end point of con-
cern.
      The scientific  community is  increasing research
activities  in an effort to articulate and  measure the
gamut  of ecosystem services.  Early  publications in-
clude Holdren and  Ehrlich  (1974),  Costanza  et  al.
(1997) and the Ecological Society of America (1997).
These efforts, along with the  more recent Millenium
Ecosystem Assessment  (2005), provide  a developing
scientific  basis and  conceptual organizing framework
for  considering the  range of ecosystem services  that
influence  human well-being. This  knowledge needs to
be applied directly to issues facing the EPA.
      In order to quantify ecosystem services we need
to understand the complex web  of ecosystem processes
that create and sustain those services, and how human
and  environmental  stressors  affect  these  processes.
Ecosystem processes can  mitigate impacts of environ-
mental stressors, but processes  can also  be negatively
impacted, decreasing the amount  or quality of ecosys-
tem services they provide.
      Most importantly, we need to be able to quantify
the  collective benefit of  many  ecosystem services  to
human well-being.  Restoration of riparian systems to
provide fish habitat, for example, would also enhance a
number of other ecosystem services such as  nitrogen
control  and carbon sequestration. Sequestering carbon
biologically not only removes greenhouse gases  from
the atmosphere, it also improves soil structure, which
reduces nutrient losses and improves erosion control.
This notion of multiple, linked ecosystem services can
be viewed as  "bundled services" and is a key compo-
nent of this project.  That is, we will not examine ser-
vices individually in response to stressors, but will con-
sider bundles of services  in relation to ecosystem proc-
esses and environmental stressors.
      The immediate  context for  this research is the
Ecological Research Multi-Year Plan (ECO MYP) of
the Office of  Research and Development.  The plan's
focus on ecosystem  services provides overall direction
for this research effort. Our most direct Regional Office
client will be Region X,  in which our study area is lo-
cated (Figure  1), but we  envision national applicability
across EPA Regions and  Program Offices, and we will
seek to  interact with Regions and other ORD  research-
ers to help broaden the application of our efforts.  In
addition, we will seek to  understand and represent Pro-
gram Office needs in liaison with the Ecology National
Program Director.
  Figure 1. The Willamette Ecosystem Service District.

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                                                                                       EPA/600/R-07/057
Approach
      We propose to conduct research in an area  of
western Oregon,  roughly defined by the  Willamette
River Basin, but including counties, ecological regions,
and other components of the appropriate  spatial con-
text, termed the "Willamette Ecosystem Service Dis-
trict" after Heal et al. (2001) (Figure l). However, the
quantification of some services, such as carbon seques-
tration may require a larger, regional perspective.
      Our approach  is based on the concept of human-
centric ecology—the study of ecosystem structure and
functioning from the perspective of human well-being.
It is reflected in using "placed-based societal issues and
values" to provide context for the research (Figure 2.).
The place-based perspective  allows  the results to be
explicitly relevant to  the stakeholders in the geographic
area. Societal issues  and values provide the framework
for the selection of  specific  ecosystems services and
the formulation of future scenarios. Issues include na-
tional and regional concerns like  global climate change
and air pollution, but they also include local  concerns
like land use, fish and wildlife, agriculture, and timber
production.
      The project builds upon a strong foundation  of
research on landscape condition and projected future
change from the Baker et al.  study (2004). The capa-
bilities of WED scientists in conjunction with collabo-
rators and existing scientific networks will provide for
characterization and  evaluation of land use/land cover,
forest productivity, wildlife, agricultural practices, ri-
parian wetland and aquatic biota.
      Within the place-based framework, natural and
human stresses to ecosystem structure and functioning
form  the basis of scenario development for futures
analyses  and for determining ecosystem  service  re-
sponse functions. Population  trends,  pollutants, land
use patterns and climate—past and predicted—provide
the forcing functions for changes in ecosystem struc-
ture and functioning.
      Once the  relations between specific ecological
processes  and ecosystem services are quantified,  re-
sponse functions are  generated. In this way, ecological
effects of anthropogenic  and  natural forcing functions
are translated into effects on ecosystem services. More-
over,  the  linkages and trade-offs among bundles  of
ecosystem services can be established.
      Quantified responses of ecosystem services  or
bundles of services,  to changes in ecosystem  structure
and functioning are  the  basis for developing futures
scenarios. Anticipated changes in ecosystem services
resulting from  future policy changes or changes  in
stressors, such as global  climate  change and land use,
will be evaluated  for the study area as a whole (Figure
 3). In  this  way, quantifiable  future projections  of
 changes in ecosystem services can be calculated for use
 in economic and policy analyses. These quantified bun-
 dles of ecosystem services can also form the basis for
 trading by establishing the ecological metrics for bene-
 fit-cost analyses.
       The targeted, integrated ecological research con-
 ducted within this project will yield a framework and
 knowledge-base  for  evaluating  regulatory  decisions
 from the perspective  of their impacts on  ecosystem
 services. Products will link validated ecosystem mod-
 els with user-friendly  interfaces.  The results will help
 EPA and  others evaluate implications  of  regulatory
 actions with regard to ecosystem services  over large
 spatial areas.

 For further information contact: Dr. Dixon H. Landers
 (Landers.Dixon@epa.gov)

References
Baker, J.P., D.W. Hulse, S.V. Gregory, D. White, J.
    Van Sickle, P.A. Berger, and N.H. Schumaker.
    2004. Alternative futures for the Willamette River
    Basin, Oregon.  Ecological Applications  14:313-
    324.

Colby, B. G. 2000. Cap-and-trade policy challenges: a
    tale of three markets. Land Economics 76: 638-
    658.

Costanza, R., R. d'Arge, R. de Groot, S. Farber, M.
    Grasso, B. Harmon, K. Limburg, S. Naeem, R.V.
    O'Neill, J. Paruelo, R.G. Raskin, P. Sutton, and M.
    van den Belt. 1997. The value of the world's eco-
    system services and natural capital. Nature
    387:253-260.

Ecological_Society_of_America.  1997. Ecosystem
    Services: Benefits Supplied to Human Societies by
    Natural Ecosystems.  Issues in Ecology 2.

Heal, G., G.C. Daily, P.R. Ehrlich, J. Salzman, C.
    Boggs, J. Hellmann, J. Hughes, C. Kremen, and T.
    Ricketts. 2001. Protecting natural capital through
    ecosystem service districts. Stanford Environ-
    mental Law Journal 20:333-364.

Holdren, IP., and P.R. Ehrlich.  1974.  Human popu-
    lation and the global environment. The American
    Scientist 62:282-292.

Millenium_Ecosystem_Assessment. 2005. Ecosystems
    and Human Weil-Being: Synthesis. Island Press,
    Washington, D.C.

United States Environmental Protection Agency. 2006.
        Ecological Benefits Assessment Strategic
        Plan. U.S. Environmental Protection Agency.

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                                                       EPA/600/R-07/057
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                                                                           EPA/600/R-07/057
Figure 3.
Depiction of the tradeoffs and bundling of ecosystem services within a land-use category.  A land-use practice
might have a negative impact on a service as well as a positive impact on others. The evaluation of ecosystem
services must include the linkage and tradeoffs between services.
             Hypothetical ecosystem service values:
                 Bundled by land use in the Willamette ESD
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Ecosystem Services.
• Nutrient rer>'oval
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    'Relative value could be a rate, say kg/ha/yr, or represent economic or social value.

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