Wetlands
Mitigation Banking
Mitigation banking has
the potential to play a significant role in the Section 404 regulatory
program by reducing uncertainty and delays, as well as improving the success
of wetlands mitigation efforts. Land owners needing to "mitigate" or compensate
for authorized impacts to wetlands associated with development activities
may have the option of purchasing credits from an approved mitigation
bank rather than restoring or creating wetlands on or near the development
site.
A wetlands mitigation bank is a wetland area that has been restored,
created, enhanced, or (in exceptional circumstances) preserved, which
is then set aside to compensate for future conversions of wetlands for
develop ment activities. A wetland bank may be created when a government
agency, a corporation, or a nonprofit organization undertakes such activities
under a formal agreement with a regulatory agency. The value of a bank
is deter mined by quantifying the wetland values restored or created in
terms of "credits."
Benefits of Mitigation Banking
Banking can provide more cost effective mitigation and reduce uncertainty
and delays for qualified projects, especially when the project is associated
with a comprehensive planning effort.
Successful mitigation can be ensured since the wetlands can be functional
in advance of project impacts.
Banking eliminates the temporal losses of wetland values that typically
occur when mitigation is initiated during or after the devel opment impacts
occur.
Consolidation of numerous small, isolated or fragmented mitigation projects
into a single large parcel may have greater ecological benefit.
A mitigation bank can bring scientific and planning expertise and financial
resources together, thereby increasing the likelihood of success in a
way not practical for individual mitigation efforts.
Status
The Administration supports mitigation banking and is currently develop
ing interagency guidance for the establishment and use of mitigation banks.
Approximately 100 mitigation banks are in operation or are proposed for
construction in 34 States across the country, including the first private
entrepreneurial banks.
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