Mitigation Banks Outperform Other Forms of Compensatory Mitigation

If a restoration project will result in significant impacts to streams, rivers, or wetlands the project will be responsible for compensatory mitigation. It must compensate for damage or losses to these resources in an equivalent way to ensure “no net loss” to wetlands. 

There are three options when it comes to how to fulfill a compensatory mitigation requirement:

The 2008 Mitigation Rule (which was recently strengthened) clearly defines mitigation banking as the U.S. Army Corps of Engineers  preferred mechanism for protecting water resources.  Here’s why the Corps prefers mitigation bank credits and why opting for this choose when and where available is the best choice. 

Time and Efficiency

The Corps recognizes that in-lieu-fee programs and permittee-responsible mitigation are inferior to mitigation banking.The permit approval process, construction and other tasks involved in creating or restoring a wetland or stream are time-consuming and costly. In addition, permitting, construction, and monitoring will require long term operations and maintenance of the wetland/stream restoration project, possibly up to ten years. The process of purchasing credits could take a relatively short time to complete and involves a few simple steps (obtaining a quote, agreeing on a contract, invoicing/payment, and issuing a sale certificate).  In fact, Corps data consistently show that purchasing bank credits can cut permitting time in half.

Risk

A mitigation bank must have an approved mitigation plan and other assurances in place before any credits can be used to offset permitted impacts.  Purchasing bank credits reduces the risks and uncertainties associated with compensatory mitigation and ecological failure.  The 2008 Mitigation Rule addresses concerns regarding in-lieu fee programs’ past performance and compares its equivalency with the standards for mitigation banks. 

Responsibility

When mitigation bank credits are purchased, all responsibility for mitigation and long-term stewardship and management is legally transferred to the mitigation banker.  Once the credits are purchased, the permit holder is free of all regulatory responsibility – all remaining responsibility for the mitigation project lies with the bank.  With permittee responsible mitigation, the permit holder assumes all responsibility for site preparation, monitoring, reporting, maintenance, management (adaptive and routine), and long-term protection.  This process can take 7 to 10 years to complete. Conversely, long-term stewardship and management costs and responsibilities continue in perpetuity through an NGO for In-Lieu Fee programs. 

Success

Landowners or developers lacking the know-how in wetland or stream restoration are at greater risk of failing, thereby reducing or eliminating increases in temporal gain of beneficial ecological functions by the mitigation. With mitigation bank credits, restoration is performed successfully prior to impacts. 

Wetlands mitigation banking has established a track record of success in restoring and preserving crucial ecosystems in many states during the past several decades.

Tye River Mitigation Bank not only provides credits to clients looking to offset the unavoidable environmental impact of their projects, but we also ensure that cost-effective solutions are ready and waiting for all those needing mitigation.

Learn more about what we do and how environmental credits can help save the planet and reduce the time and cost it takes your project to get a permit.