Mitigation and Conservation Banking
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1 Mitigation and Conservation Banking Ryan Orndorff Headquarters, Marine Corps Marine Corps Installations Command
2 Definitions, Policies & Guidelines Existing banks and credit prices Why banks? Banking Mechanics Other similar programs DoD Authorities and Programs Case Studies
3 Mitigation or Conservation Banking, what s the difference? Mitigation Bank (CWA) a site, or suite of sites, where resources (e.g., wetlands, streams, riparian areas) are restored, established, enhanced, and/or preserved for the purpose of providing compensatory mitigation for impacts authorized by DA permits. In general, a mitigation bank sells compensatory mitigation credits to permittees whose obligation to provide compensatory mitigation is then transferred to the mitigation bank sponsor. The operation and use of a mitigation bank are governed by a mitigation banking instrument (2008 USACE/EPA Mitigation Rule). Conservation Bank (ESA) a parcel of land containing natural resource values that are conserved and managed in perpetuity, through a conservation easement held by an entity responsible for enforcing the terms of the easement, for specified listed species and used to offset impacts occurring elsewhere to the same resource values on non-bank lands (2003 USFWS Guidance for the Establishment, Use, and Operation of Conservation Banks). Joint CWA/ESA Banks authorized by both programs.
4 Where can you find banks? RIBITS - Regulatory In-Lieu Fee and Banking Information Tracking System Ecosystem Marketplace Wetland & Stream Banks 717 Species Banks 102 Credit Prices $1.5k - $650k
5 Why use banks? Conservation/mitigation performance is already met Transfer of liability Aggregates smaller conservation actions Can be more time, cost and ecologically effective No long term commitment for long term monitoring, performance evaluation or possible remediation of failed mitigation Does not encumber DoD lands
6 How are banks developed? Site selection Real estate assurances for land conservation Develop ecological performance standards Credit determination methodology & service area determination Financial assurances for long term management Development and approval of Banking Instruments (Interagency Review Teams) Credits available for use/sale
7 In Lieu Fee Programs Restoration, establishment, enhancement and/or preservation of aquatic resources through funds paid to a governmental or non-profit natural resource management entity to satisfy compensatory mitigation requirements for DA permits (USACE/EPA 2008 mitigation rule) Primarily for CWA banks, but permissible for ESA banks Conservation actions are identified ahead of time, but implemented upon funding Is not necessarily land conservation, may include other "conservation" activities (riparian restoration, erosion control, etc) Requires ILF enabling instrument
8 Recovery Crediting USFWS, Recovery Crediting Guidance, 2008 Allows federal agencies to accrue credits for conservation actions on non- federal land, that may be debited to compensate to unavoidable impacts to a listed species. Varies from a bank in that credits may be for temporary or permanent effects, that may be used in the context of respective impacts. Implements recovery action identified in recovery plans, or other FWS approved documents Must provide for a "net-benefit" to the species
9 DoD Authorities 2004 NDAA: provides authority for the DoD to participate in Mitigation banks and ILF programs 2010 NDAA: provides authority for the DoD to participate in Conservation Banks or ILF Programs 10 USC 2684a: provides authority to acquire interests in land that are ecologically connected to an installation and and would result in reducing encroachment to current or future military operation. Also authorizes payment for Natural Resource Management in lump sum payments that may be deposited into interest. Bearing accounts. 16 USC 670c-1 (Sikes Act): authorizes use of Cooperative Agreements for natural resource management off-base if it would alleviate restrictions to current or future military activities MILCON: provides land acquisition authority
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