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US Army Corps of Engineers Jacksonville District. KEY CONCEPTS OF MITIGATION BANKING. March 27, 2003. What is mitigation banking? History of mitigation banking Federal Guidance MBRT Green Book Fundamental requirements of mitigation banks Mitigation Service Area Credit Assessment
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US Army Corps of Engineers Jacksonville District KEY CONCEPTS OF MITIGATION BANKING March 27, 2003
What is mitigation banking? History of mitigation banking Federal Guidance MBRT Green Book Fundamental requirements of mitigation banks Mitigation Service Area Credit Assessment Benefits/goals of mitigation banking Mitigation banks in Florida US Army Corps of Engineers Jacksonville District OVERVIEW
Mitigation banking – wetland restoration, creation, enhancement, and preservation for the purpose of compensating for unavoidable wetland losses in advance of development actions when such compensation cannot be achieved on site or would not be as environmentally beneficial. US Army Corps of Engineers Jacksonville District Mitigation Banking
Concept of mitigation banking has been around since the 80’s when Corps recognized onsite mitigation was not effective. Banks at that time were public for usually linear projects. EPA disagreed with Corps’ concept and promoted onsite mitigation. US Army Corps of Engineers Jacksonville District History
Mitigation MOA 1990 August 23, 1993 - the Clinton Administration released package on improvements to Federal wetlands programs including support for the use of mitigation banks. Subsequently, the Corps and the EPA issued interim guidance clarifying the role of mitigation banks (RGL 93-2). US Army Corps of Engineers Jacksonville District History
November 28, 1995 – The Feds jointly issued Federal Guidance for the Establishment, Use and Operation of Mitigation Banks. The Guidance was provided to encourage the effective use of mitigation banks as a means of compensating for the authorized loss of wetlands and other aquatic resources. US Army Corps of Engineers Jacksonville District Federal Guidance
A key point of the Federal Guidance is that proposed mitigation banks should be evaluated by an interagency Mitigation Bank Review Team (MBRT). Banker submits a Prospectus which includes objectives and need for the bank, initiates review by appropriate agencies, and establishes bank goals. US Army Corps of Engineers Jacksonville District Federal Guidance
Federal recognition of a mitigation bank is through a mitigation banking instrument (MBI). MBI describes physical and legal characteristics of the bank. The MBI is signed by the federal MBRT members and the banker. Signature indicates concurrence on the objectives and administration of the bank. US Army Corps of Engineers Jacksonville District Federal Guidance
Federal Representatives (e.g Corps, FWS, NMFS, NRCS, EPA) State Representatives (e.g. DEP, WMD, FWC) Tribal Representatives Local Representatives US Army Corps of Engineers Jacksonville District MBRT
Corps serves as Chair. NRCS serves as Chair if purpose of bank is for complying with FSA. If bank satisfies requirements of another program, the administering agency serves as co-Chair. US Army Corps of Engineers Jacksonville District MBRT
Facilitate the establishment of mitigation banks through development of the MBI. Signatory to the MBI. Oversees the establishment, use, and operation of the bank. Goal is to obtain consensus. US Army Corps of Engineers Jacksonville District MBRT’s Role
If no consensus is reached within a reasonable time, the Chair makes final decisions regarding the terms and conditions of the MBI. US Army Corps of Engineers Jacksonville District MBRT’s Goal
Reviewed 119 wetland fill projects over a 6 month period. 34 percent of proposed mitigation had not been constructed. The rate of noncompliance was 93 percent. The rate of actual success and the likelihood of success combined was 27 percent. US Army Corps of Engineers Jacksonville District 1991 FDER Study
February 1994 – DEP and WMD’s issued rules for wetland mitigation banking. State recognition of a bank is through a Mitigation Bank Permit. US Army Corps of Engineers Jacksonville District As a follow-up to the 1991 Study…
Serves to implement the Federal Guidance. Requirement of Federal guidelines but not of the State statute or rules. Streamlines the evaluation process and reduces redundancy between Federal and State reviews. Prevents significant time and cost expenditures. Maximizes interagency coordination. Does not preclude need for Corps construction permit or guarantee issuance of a State permit. State/Federal MBRT Process for Florida“Green Book”
Fundamental requirements of mitigation banks MBRT process/flow chart Prospectus guidelines Mitigation Service Areas Calculating credits & credit release Various appendices including Federal Guidance, Florida Statutes, and outline of a MBI GREEN BOOK CONTENTS:1997/1998
Improve the ecological conditions of the regional watershed Provide viable and sustainable ecological and hydrological functions for the mitigation service area Will be effectively managed in perpetuity Will not destroy areas with high ecological value Will achieve mitigation success Fundamental Requirements of Mitigation Banks
Will be adjacent to lands that will not harm the viability of the mitigation bank due to unsuitable land uses or conditions Will operate in accordance with State and Federal law Applicant can legally and financially ensure perpetual management of the land Can meet the financial responsibility requirements prescribed for mitigation banks Fundamental Requirements of Mitigation Banks
The designated area that a bank can reasonably be expected to provide appropriate compensation for unavoidable, authorized impacts. The MSA should be based on hydrologic and ecological criteria. US Army Corps of Engineers Jacksonville District Mitigation Service Area(MSA)
Hydrologic drainage basins of the South Florida Water ManagementDistrict
The ecological benefits attributable to the banker’s effort are quantified using a wetland functional assessment technique. The delta is multiplied by the acreage to give the number of mitigation “credits.” Once the bank is authorized, these credits are available for purchase by a developer to fulfill their obligation in accordance with the 404(b)(1) Guidelines. US Army Corps of Engineers Jacksonville District Credit Assessment
WRAP EWRAP MWRAP WATER (Wetland Assessment Technique for Environmental Reviews) FUWMAM US Army Corps of Engineers Jacksonville District Credit Assessment
Loxahatchee Mitigation Bank $57,500/herbaceous & $67,500/forested Bluefield Ranch Mitigation Bank $40,000/1 agency & $55,000/both Everglades Mitigation Bank $46,000/freshwater & $75,000/estuarine Cost of Credits – determined by banker
10% released up front Second release following construction Remaining credits released upon attainment of success criteria which should be tied to the functional assessment US Army Corps of Engineers Jacksonville District Credit Release Schedule
Adjacent to protected land / corridor Large in size High likelihood of success Protects rare and unique habitats Historically appropriate Reference wetlands to evaluate success Provides full suite of wetland functions and values US Army Corps of Engineers Jacksonville District What makes a good mitigation bank?
Consolidation of several small, fragmented mitigation projects into one large, strategically located site (inherent benefits to wide-ranging species) Increased likelihood of mitigation success Temporal loss is minimized since the mitigation is successful in advance of wetland impact US Army Corps of Engineers Jacksonville District Benefits of Mitigation Banking
To provide economically efficient and flexible mitigation opportunities while fullycompensating for wetland and other aquaticresourcelosses in a manner that contributes to long-term ecologicalfunctioning of the watershed. US Army Corps of Engineers Jacksonville District Goal of Mitigation Banking
US Army Corps of Engineers Jacksonville District Details on this topic are found in the Joint State/Federal Mitigation Bank Review Team Process, Operational Draft, October 1998 Questions? http://www.saj.usace.army.mil/permit
US Army Corps of Engineers Jacksonville District THANK YOU