How Mitigation Banks and ILF Programs Can Help Conservation
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1 How Mitigation Banks and ILF Programs Can Help Conservation Devin Schenk, Mitigation Program Manager Anthony Sasson
2 The Nature Conservancy Mission: To conserve the lands and waters for which all life depends
3 The Nature Conservancy Mission: To conserve the lands and waters for which all life depends Operating Principals Whole-system conservation Non-confrontational Science-based
4 Clean Water Act Clean Water Act under 401/404 requires permitting for all activities impacting waters of the U.S. The discharge of dredged or fill materials into waters of the United States, including wetlands is prohibited without a permit. A permit generally requires offsetting mitigation in order to achieve No Net Loss.
5 Mitigation Clean Water Act 401/404 permitting for impacts to streams or wetlands (many state regs.) Requires 1. Avoidance, 2. Minimization, 3. Compensatory Mitigation (as a last resort) Avoid Impacts Minimize Impacts Compensate for Impacts
6 What is Compensatory Mitigation? COMPENSATORY MITIGATION: The restoration, creation, enhancement, or preservation of natural resources to compensate for impacts permitted through regulatory programs.
7 Why we should care
8 because the funds are significant Regulatory Program or Authority Cost Estimate (in millions) Clean Water Act 404 $2,947.3 Endangered Species Act $ Federal Natural Resource Damage Programs $87.7 Federal Power Act $210.3 Northwest Power Act $207.1 Total: $3,822.7 Environmental Law Institute. October Mitigation of Impacts to Fish and Wildlife Habitat: Estimating Costs and Identifying Opportunities. Washington, DC: Environmental Law Institute. Supported by the Doris Duke Charitable Foundation
9 because the acreage is significant
10 Since 2004 wetland mitigation in Ohio has averaged 340 acres per year Average Annual Wetland Mitigation
11 Since 2006 stream mitigation in Ohio has averaged 194,983 linear feet per year Average Annual Stream Mitigation
12 Need to Increase Performance There is an average of 194,000 feet of stream and 314 acres of wetlands mitigated each year in Ohio. Independent research has identified a high rate of failure. Permittee restoration can be difficult because: Small projects Scattered in landscape Located in substandard sites Unavailable watershed-based planning When a project fails, there is a net loss of aquatic resources in Ohio.
13 and because All compensatory mitigation sites must be: Afforded permanent protection Designed to be selfsustaining
14 Compensatory Mitigation Hierarchy (2008 Federal Rule) BANKS develop a restoration project that creates mitigation credits, which can be sold to permitees. This is the preferred option. IN-LIEU-FEE govt. or non-profit sponsored program that receives credits to sell upfront, and then uses funds to do restoration projects PERMITEE-RESPONSIBLE - the developer puts together a project to meet their own mitigation requirements.
15 Mitigation provider Roles in Compensatory Mitigation for Land Protection Entities Allow restoration on fee lands Participant in restoration Long-term stewardship of mitigation lands Fee title holder Easement holder and defense Long-term management and maintenance
16 Mitigation Bank Challenges Capacity and Specialized Knowledge Required A lot of up-front investment required no credits until project approved Uncertain market must be located in watershed where credits can sell
17 Time Commitment ILF Program Challenges Reputation and Public Perception Internal Capacity Required Regulatory understanding, Legal expertise, Financial management, Accounting, Restoration ecology, Conservation planning This is NOT a revenue generating program Full Cost Accounting and excess fund restrictions Risk and Liability
18 ILF Risk and Liability Ultimately you are guaranteeing a 100% success rate Corrective actions, financial assurances, default Required to find and initiate projects under a 3-year timeline Meet budgets Feasibility analysis/service Areas Credit pricing full cost accounting Balance credit ledger
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21 Ohio State-wide ILF program 43 HUC-8 Service Areas
22 Project Criteria Occur within the same watershed service area 3-year timeline to complete restoration Inter-Agency Review Team (IRT) review and approval 4 stages of approval All mitigation projects must be permanently protected No Severed Mineral / Oil & Gas Rights
23 TNC s Commitment to Partnerships Request for nominations of potential properties Park districts, land trusts, ODNR, etc. Credit prices contain an accounting for the purchase and permanent protection of land. Site Selection Checklist - objective scoring system used to select best candidates Highest scoring projects will be those that best improve water quality in the watershed and improve other resource and community needs.
24 Funding for Conservation and Restoration TNC ILF Projects come with funds for: Site Selection Acquisition Design Restoration Permanent Protection Long-term Management
25 Permanent Land Protection All mitigation projects must be under longterm protection Fee-simple ownership and conservation easements may be held by: Federal, tribal, state, or local resources agencies Non-profit conservation organizations in good standing
26
27 Wetland and Stream Mitigation: A Handbook for Land Trusts
28 Thank you! Devin Schenk The Nature Conservancy Ohio Field Office 6375 Riverside Drive, Suite 100 Dublin, Ohio 43017
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