REVERSE AUCTION SAVES WETLANDS AND MONEY

WASHINGTON, November 2, 2006—Natural Resources Conservation Service (NRCS) Chief Arlen Lancaster announced today that NRCS has enrolled 3,500 acres in the Wetlands Reserve Program (WRP) through a reverse auction pilot program that reduced easement acquisition costs by 14 percent—saving nearly $820,000 in Fiscal Year 2006.

“The WRP reverse auction is an innovative, market-based approach. These results show we can increase the nation’s wetlands through expanded public-private efforts and at less cost,” said Lancaster.

WRP is a voluntary program established for the purpose of protecting, restoring and enhancing the functions of critical wetland ecosystems.

The purpose of the reverse auction signup was to test procedures in an effort to reduce easement acquisition costs and NRCS technical assistance costs. The WRP reverse auction is an example of a market-based approach to conservation, which facilitates market-based opportunities that encourage private sector investment in conservation. Interested landowners voluntarily conducted an environmental self-assessment of the lands they wished to enroll in WRP and submitted sealed bids.

The reverse auction signup targeted tribal, state, county or non-federal, public lands that met WRP eligibility criteria in selected counties in Delaware, Georgia, Kentucky, Missouri, Idaho, California and Colorado.

Applications were prioritized according to an environmental benefits index (EBI) that was determined by dividing the landowner bid by environmental self-assessment scores. The self-assessment scores the applicants developed were verified by NRCS. Applicants submitted their bid, which was then divided by the self-assessment score to arrive at an EBI. This EBI was used to rank the applicants for funding. The applicants were notified of their ranking status and were provided an opportunity to submit a lower bid. The lower of the two bids was used to develop a final EBI for funding selection.

Since its inception in the 1930’s, NRCS’ conservation delivery system continues a unique partnership, delivering conservation that respects local needs, while accommodating state and national interests. It is an efficient, interdependent, locally-based conservation support system. For more information on NRCS, WRP, the conservation partnership, and conservation programs available in your community, stop by your local USDA service center, or visit NRCS online at www.nrcs.usda.gov or http://www.nrcs.usda.gov/programs/wrp/.


 

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