Frequently Asked Questions (FAQs)

What is Green Tier?
Green Tier is a program that gives environmentally innovative companies who go beyond compliance with minimum regulatory standards support for their efforts to engage in superior environmental performance while improving their bottom line.
The program adapts to the needs of the company, community and environment by using collaborative contracts, charters and environmental management systems. The goals of the program include environmental improvement beyond that which is achieved through mere compliance, community development and economic gain. more... [PDF 25KB]
What is the vision?
Imagine your capacity for sustainable growth and environmental performance in a flexible, collaborative system.
Green Tier is a voluntary program that recognizes and rewards environmental performance “that voluntarily exceeds legal requirements related to health, safety and the environment resulting in continuous improvement in this state’s environment, economy, and quality of life.” SS 299.83(1m)(b)
This vision is based largely on the principles of the Coalition for Environmentally Responsible Economies [exit DNR].
Not sure how the program works? Many provisions of Green Tier were recently tested in our Environmental Cooperation Pilot Program (ECPP). Check out what ECPP participants have accomplished. You bring the ideas, we'll bring the tools.
  • As part of its ECPP agreement, Wisconsin Electric committed to reduce its annual coal use by at least 10,000 tons and generate more than 10,000 MWh of electricity per year by burning coal ash recovered from company-owned landfills. This is enough electricity to meet the average annual needs of more than 1000 Wisconsin homes! Wisconsin Electric's activities normally would have required multiple case-by-case approvals for each landfill site and ash reuse plan. The cooperative agreement allows DNR to grant Wisconsin Electric a blanket approval to save both parties time and labor. Wisconsin's environment benefits more quickly, and at a lower cost.
  • Northern Engraving Corporation (NEC) manufactures nameplates and similar items at five facilities in Wisconsin and Iowa. A cooperative agreement allows NEC to close a costly but relatively ineffective waste incinerator at their Sparta, WI, facility and focus their resources on cleanups and other meaningful methods of environmental improvement. The agreement also allows NEC to operate new equipment prior to obtaining a permit in certain cases, provided ambient air quality standards are protected and NEC first receives written approval from the DNR. NEC has realized tremendous emissions reductions over the past several years, and we hope this agreement gives them the flexibility they need to pursue further reductions.
What is the problem?
Current law does not allow us to differentiate between exceptional environmental performers and those performing at or near the regulatory minimum. The use of staff resources to oversee these exceptional environmental performers does not yield environmental results proportional to the investment. Failure to tap the capacity and capability of good companies to produce substantive environmental results creates costly inefficiencies within the DNR and inhibits environmental improvement.
"I want to get away from command and control. If you have good actors with good records, why do you need that level of scrutiny?" Scott Hassett, Wisconsin Depatment of Natural Resources1
How will the department support a company’s efforts to achieve superior environmental performance?
Environmental policy programs in the past have centered on a “command and control” approach to regulation. Regulatory programs have no mechanism for recognition of regulated entities that go beyond compliance with minimum environmental requirements. Therefore, entities achieving a high level of environmental performance receive no more benefits or recognition than those that merely comply with minimum standards. In some instances, in the short term, it may be costly for entities to go beyond compliance when they are in competition with others that are expending only those resources necessary to meet minimum regulations. Green Tier is designed to help entities offset these costs. While the department doesn’t directly provide funding to achieve superior environmental performance, it can indirectly increase the competitive position of companies that are exceptional environmental performers.
Once a formal environmental management program is implemented, Tier I participants will experience the lowest allowable level of inspection frequency from the DNR. The systems audit required for Tier I and the combine systems/compliance audit for Tier II will subject entities to more limited liability than traditional DNR inspections. The single, professional point of contact will also help increase communication and trust between the entity and the department. This individual will help remove obstacles to smooth, timely processing of participants’ paperwork and provide them with valuable information about how to work effectively with regulators. In addition to these benefits, Tier II participants are eligible for regulatory incentives. These benefits are negotiated by the participant and the department, which ensures that the incentives granted are proportional to the environmental benefits provided by the participant.
How does the program work?
While entry into the program is voluntary, participation is governed by a legal agreement. Companies, communities and governments negotiate agreements, contracts, and charters that are flexible, innovative, efficient and enforceable. Contracts and charters are linked to an organization's environmental management system to assure predictable performance, due diligence and continual improvement. Self-auditing, public involvement and reporting make the processes transparent and the results verifiable. Get involved to learn more. more ... [PDF 40KB]
The timelines below show the major steps and associated timeframes.
Is an Environmental Management System (EMS) required for Green Tier?
Wisconsin’s Green Tier program places great value on Environmental Management Systems (EMS). Tier 1 participants must have an ISO-14001 certified or a functionally equivalent Environmental Management System (EMS) in place within the first year of participation. Tier 2 participants must have a well-developed EMS (ISO certified or functionally equivalent) at the time of application with a documented history of results. (See the Environmental Management Systems:
Create Business Value through Comprehensive Performance Management for more information.)
How stringent are the requirements for adequate demonstration of superior environmental performance?
The Green Tier program requires “performance that results in measurable or discernible improvement in the quality of the air, water, land, or natural resources, or in the protection of the environment, beyond that which is achieved under environmental requirements…” The precise criteria for meeting this requirement will vary according to the creative strategy submitted by the entity for recognition in Green Tier.
Are the requirements for participation in Green Tier the same for each applicant? If not, how does the department facilitate diversity among participants’ approaches to moving beyond compliance?
While the requirements for eligibility for Tier I and Tier II are the same for all applicants, the specific activities to achieve superior environmental performance are established by the participant. This allows participants to move beyond compliance by committing to an environmental strategy that is sensitive to their unique strengths and opportunities.
Each participant is paired with one regulator at the DNR who gets to know the participant’s particular strengths and opportunities. This departmental contact will often specialize in an area that is of particular interest or concern to the participant. They can then offer their guidance to help enhance the participant’s performance in their area of expertise and other areas that impact the participant.
How might Green Tier administrators limit participation in the program? Is this something to be cautious of when applying? Are there some inevitable limitations participants may face?
The DNR staff in charge of Green Tier will only limit the extent of participation by an applicant if it is determined that this limitation is necessary to protect the best interest of the department. This may be necessary due to the substandard quality of an application or lack of department staff and/or resources available to process applications. The department may also delay admission to the program and wait for an applicant to demonstrate environmental performance that is judged to be superior. While DNR has delayed admission of applicants, we have not limited participation because of resource constraints.
What is a participation contract?
A participation contract is a contract entered into by the DNR and a program participant that specifies:
1) the participant's legal commitment to superior environmental performance, and
2) incentives to be provided to the participant (may include regulatory flexibility, public recognition, branding, etc.)
How will Green Tier administrators ensure that the incentives to participants are proportional to their benefits to the environment? How is this proportionality determined?
The appropriateness of the exchange of incentives for the environmental benefits proposed is determined, in part, by individuals who participate in the required public comment period for each applicant. The DNR’s Green Tier administrators will also weigh the value of the proposed benefits to the environment against the magnitude of the incentives requested. A Tier II contract that describes substantial environmental benefits will be approved unless:
  1. The department determines that the environmental benefits proposed are not sufficient to justify granting the incentives.
  2. The department determines that the incentives granted would result in adverse environmental change way before the environmental benefits would be realized.
  3. The department determines that the speculative nature of the environmental benefits provides insufficient justification for issuing immediate and tangible incentives.
  4. The department determines that the declaration of proportionality is not in the best interest of the program. This reaction will occur if public reactions to the proposal indicate that determining proportionality would erode public confidence in the program.
Why is the participant responsible for explaining how its proposed measures for improvement are proportional to the incentives it expects to receive?
Tier II participants submit a letter of intent to the DNR stating how they propose to achieve superior environmental performance and the incentives they expect in return. If the department determines that the applicant is eligible for Tier II, then, following an initial public comment period, they will begin negotiating the terms of the contract with the participant. This could take up to a year or longer depending on the department’s assessment of how proportional the participant’s proposed environmental benefits are to its requested incentives.
Green Tier is not a program that tells entities what to do. Part of participating in the program is the development of contracts that indicate a commitment to improving environmental performance while diminishing the need for regulation. While the DNR determines eligibility and negotiates the terms of these contracts, the commitments necessary to receive the incentives are actually specified by the participant. In this way, the program encourages creative thinking about ways to increase business value while achieving better environmental results.
What is an environmental results charter? What necessitates these charters? What are the potential benefits? Potential costs?
A charter is a contract entered into by the DNR and an association committed to helping some group of entities participate in Green Tier. An association may consist of private entities, public entities, or a combination. In a charter, the association must describe its goals, the responsibilities of its members, and the methods its members will use to accomplish their goals. The term of a charter can be between 3 and 10 years, with the opportunity for renewal. Charters help business sectors or regions establish environmental goals and develop systems that support the accomplishment of those goals.
These environmental results charters are typically composed of entities in similar locations, business sectors, or regulatory situations that are committed to achieving common superior environmental performance goals. These charters provide an excellent opportunity for more environmentally proficient entities to demonstrate leadership by collaborating with and assisting those that may be less capable, but want to get involved. These less capable members are given the assistance they need to meet environmental performance goals and are provided with a framework for future participation in Tier I or II.
Members of charters that participate in Tier 1 or Tier 2 receive both statutory incentives and any additional incentives that are negotiated in the charter. They are also expected to provide the same transparency and potential for public participation. In addition to the incentives provided by the department, Green Tier charter members may enjoy lower transaction costs than individual participants in Tiers I and II. Since a charter may include several entities, the costs of application, negotiation, and audits may be spread out to decrease the expenses of each member.
Said one Green Tier advocate: "The complexity of environmental challenges facing Wisconsin demands that we move beyond the current compliance model."2
What is Tier 1?
Tier 1 is the entry level into the Green Tier program. It is designed to allow companies committed to enhanced environmental protection to distinguish themselves from others. Tier 1 companies are generally environmental innovators with proactive management teams. The DNR is committed to supporting these companies with incentives, including use of the Green Tier logo, that are not available to other companies.
What are the participation criteria for Tier 1?
  • A strong environmental compliance record, with no recent civil or criminal judgments or DNR citations. (See the application instructions [PDF 290KB] for more information.)
  • Commitment to a formal EMS that has been or will be implemented.
  • Annual performance reviews, with results submitted to the DNR.
  • Prompt follow-up action to any findings of non-compliance discovered during the annual reviews.
  • Continual improvement of environmental performance.
What is Tier 2?
Tier 2 is designed for companies with an effective Environmental Management System and a history of superior environmental performance. Tier 2 participants represent the truly exceptional companies that are not only committed to going above and beyond, but are also committed to bringing about change in their industry, region, or within their supply chain.
What are the participation criteria for Tier 2?
Participation in Tier 2 requires an even stronger environmental compliance record than is required in Tier 1. Tier 2 participants also must implement an EMS prior to Tier 2 entry. (See the application instructions [PDF 290KB] for more information.)
Tier 2 participants negotiate customized environmental contracts with the DNR and interested stakeholders, including the public. These flexible agreements carry the force of law and enable significant environmental improvements. Tier 2 contracts may be the most innovative and valuable part of Green Tier, as they support both government efficiency and business competitiveness.
What's in it for businesses?
While most companies have achieved consistent compliance with regulatory requirements, the current business environment provides the opportunity for companies to engage in behaviors that would constitute superior environmental performance. Green Tier would save time, reduce costs, encourage innovation, contain liability and adapt to market demands. more... [PDF 25KB]
What are the benefits to participants of Tier 2 over Tier 1? Is the public aware of the differences?
Tier II participants negotiate contracts with the DNR staff stating their specific strategy for achieving superior environmental performance, their commitment to implement that strategy, and the incentives they expect to receive from the department. These incentives may be more valuable than those offered only in Tier I because they can directly reduce costs associated with regulation and improve participants’ positions relative to their competitors. These contracts also foster greater efficiency in the department by reducing the time and resources spent on regulation.
Participants in Tier II are also recognized for satisfying more rigorous eligibility requirements than those in Tier I with a stronger environmental compliance record and an environmental management system already in place at the time of application. Insofar as the public is aware of the higher expectations of Tier II, participants establish themselves as stronger and more accomplished environmental innovators than those in Tier I. The DNR will promote awareness of the distinctions between Tiers I and II through public hearings, annual news releases, and information recorded on the department website regarding program participants.
What are the costs of applying to the program? How can the proposed incentives offset the costs of participation? Are there other benefits that may offset the costs besides the proposed incentives?
There are no direct costs of applying to Green Tier. While there are some costs associated with participation in the program, these are costs that are internal to the applicant; the DNR collects no fees from applicants. Environmental management systems are a part of participation in Green Tier, but there are often many other reasons for their implementation. However, while the costs of implementing an EMS may not be direct transaction costs of joining Green Tier, they should still be considered. Other costs include time and resources spent on the initial application, negotiation, and ongoing audits. Successful participants will often offset these costs with the increased efficiency that comes from both the direct incentives proposed by the program and the increased organization and effective investment that occur as the result of participation.
How informed is the public about Green Tier? How much of an impact will participation have on public perceptions?
Green Tier is still under development and has yet to gain significant public recognition. Those who visit the department’s website have access to information about the program and each applicant submits a list of stakeholders who might be interested in knowing more about Green Tier. These stakeholders are contacted directly by the DNR. In addition, an annual notice of participation is sent to newspapers in the area in which each participant is located. As more entities participate in Green Tier, more of these notices will be sent to newspapers around the state, so the potential for positive public perception increases as more participants enter the program. These news releases along with the program logo will stimulate public interest and discussion and create business value for Green Tier participants.
What are the advantages of the Environmental Results Program logo? It seems as if this could really enhance brand image.
The logo is meant to stimulate interest in the program and create an easily recognizable symbol that ties the participant’s name to the goals and values of an innovative and credible environmental excellence program. As Green Tier achieves greater recognition among members of the public, this logo will prompt recognition of superior environmental performance and enhance the quality of participants’ images.
How might participants benefit from sharing information with those who have an interest in their actions, performance, and involvement in Green Tier? What kinds of negative consequences might this have for participants?
Participants in Green Tier are required to inform stakeholders about their progress toward superior environmental performance. This information sharing provides a means by which participants can be recognized for their Green Tier actions while building trust with stakeholders. Participants who deliver superior environmental performance will earn positive recognition and distinction among their competitors. Providing public notice of participants’ involvement and performance in Green Tier might entice competitors to follow similar paths. This may increase the number of entities that demonstrate superior environmental performance, but some participants may not want to share this information with their competitors. Moreover, Green Tier’s requirement for public involvement may expose negative aspects about participants to community stakeholders, regulators, and environmental groups. While some may view the transparency of Green Tier as a potential threat to businesses, there are ways for participants to fulfill the requirement and involve the public without surrendering their competitive edge.
Although Green Tier participants must share relevant information with stakeholders, they are not required to share all information that may be relevant to competitors. The department does require an annual report from participants including a summary of their accomplishments, information on generic indicators, audit findings and reports on the success of the environmental management system. Participants are not required to submit a copy of the actual EMS. Aside from the contents of the annual report, they may submit any other information with a request that the information be held confidential because of trade secrets.
How will participants be recognized on the department web site? Is this recognition obvious to visitors? Who will be looking at this?
Green Tier participants will be listed on the DNR website’s Green Tier page along with links to public notices, press releases, and photos. The web page provides these entities with a showcase for their superior environmental performance and innovative thinking. The information provided about the performance of the participants in the program is apparent and understandable to anyone who is loosely familiar with Green Tier. Potential viewers of this information include regular visitors to the DNR website, those seeking more information about Green Tier, and those looking for information about the participants.
What's in it for the environment?
Each company in the program commits to specific and measurable environmental improvements and reports regularly on their progress. Actions may include the application of new pollution control technologies, production process changes and/or implementation of sustainability strategies. more... [PDF 25KB]
What's in it for the community?
A cleaner environment, more communication between public and private entities, and increased community involvement.
What's in it for taxpayers?
Green Tier reduces bureaucracy and allows regulators to focus on the most pressing environmental concerns, like businesses with sub-standard environmental records.
What is the department’s relationship with the public? How does their input affect Green Tier?
One of Green Tier’s most important goals is transparency. Community stakeholders’ access to all pertinent information regarding Green Tier participation is crucial to the success of the program. This transparency is necessary both to encourage trust between the DNR and participants and to allay public suspicions about the interests behind Green Tier negotiations.
Public support is vital to the successful Green Tier applicant. Each application is subject to public scrutiny before it is accepted. Public hearings are held to allow the community to respond to these applications. The department also communicates with the public on its website and through annual notices to newspapers regarding entities’ participation in the program.
Further questions? Contact:
Mark McDermid at 608-267-3125.

1Green Tier on fast track, Joanne M. Haas, WisPolitics.com, 3/18/03
2Freeing Companies from bureaucracy would spur growth, John Torinus, Milwaukee Journal Sentinel, 2/23/03

3/20/03


Last Revised: Thursday March 27 2008