Frequently Asked Questions about environmental resource issues

What is a wetlands mitigation bank?
A wetlands mitigation bank is land that once was a wetland area that had been ditched and drained, and then been restored and protected in a conservation easement. The restoration of land to functional wetlands status allows the restored land to be issued as credits to compensate for destruction of or impact to wetlands elsewhere within the same watershed. A wetland bank may be created when a government agency, a corporation, or a nonprofit organization undertakes such activities under a formal agreement with the local, state and federal regulatory agencies. The value of a bank is determined by quantifying the wetland values restored in terms of "credits."

To purchase credits, a permit holder within the same watershed (defined by the USGS Hydrologic Unit Code) must purchase 2 acre/credits for each acre of proposed wetland impact (thus the 2:1 ratio). Prior to purchasing credits the applicant must move through the sequencing process with the Army Corps and show the process of (1) Avoidance of impact; if not possible then, (2) Minimization of impact: then, (3) Mitigation of impact.

Why allow mitigation at all?
Mitigation has numerous positive benefits to both the environment and business:

• Successful mitigation can be ensured since the “replacement” wetlands can be functional before a project impact takes place
• Banking eliminates the temporal losses of wetland values that typically occur when mitigation is initiated during or after the development impacts
• Wetlands banking tends to replace numerous small, isolated or fragmented mitigation projects into a single large parcel that has a higher probability of a greater ecological benefit
• A mitigation bank can bring scientific and planning expertise and financial resources together in a way not practical for individual mitigation efforts
• A mitigation bank should be used as part of an overall watershed plan to maintain the integrity of wetlands in each watershed

Why is centralized, off-site mitigation preferable to on-site mitigation?
Developers who buy credits rather than develop their own on-site-mitigation (if they are even allowed the choice) are not forced to become mitigation experts. Operating a successful mitigation project demands more than careful engineering and planning. Detailed knowledge of plants and soils and the detailed monitoring required by the permitting agency over a period of years are just two of many difficult aspects of mitigation.

Because mitigation banks are held to the highest standards by permitting agencies, the success rate of these projects is high. A mitigation bank site relatively large—comprising hundreds of acres—compared to “postage-stamp” onsite mitigation projects. Managing and monitoring one centralized site rather than numerous small ones makes better use of agency time and resources to pursue enforcement actions and ensure proper sequencing of permit applications. Permitting agencies like the Corps of Engineers do not have adequate funding to provide enforcement actions for violations of the Clean Water Act or to adequately monitor the many small onsite mitigation projects scattered around their districts.

How is mitigation banking performance assured?
The Corps receive from a wetland mitigation bank a detailed, professional monitoring report annually for a minimum of five years after the restoration efforts have been completed, and an annual site visit that ensures the performance standards set forth in the banking instrument between the bank sponsor and the state and federal regulators have been met. If the performance standards are not being met, the bank sponsor must utilize a contingency fund previously set aside for such an event. When a permit is issued contingent on purchasing credits from a mitigation bank, the Corps have all assurances in place that the mitigation has already taken place (minimizing the effects of temporal loss), that the restoration efforts are successful (with funds available for long-term monitoring) and that the site is protected as a wetland preserve for perpetuity (in a binding Conservation Easement held by a government or non-profit entity).

Where is it documented that off-site mitigation is preferable to on-site mitigation?

• Studies performed by the National Academy of Sciences and the General Accounting Office and published in 2001 have documented the dramatic difference in success between wetland mitigation banks and attempts at individual mitigation. After only ten years of experience with wetland mitigation banks, it is clear that the high degree of failure (more than 50%) in attempted individual mitigation sites makes wetland mitigation banks the preferred choice in most instances.

• Created wetlands are less likely to meet functional standards than restored wetlands (Kusler & Kentula 1989, Mitsch & Wilson 1996).

• A large banked wetland may be used to compensate for several small alterations. Generally, large wetlands are preferred over small ones because they provide habitat for species that do not survive in small, isolated wetlands. In addition, they have a wider variety of habitat types and larger seed banks that may make them less sensitive to environmental changes and natural disasters (U.S. Army Corps of Engineers 1994c).
  

What happens after I submit my application? What should I expect?
There is a public comment period (not public hearing) for Individual Permits sent to the Nashville, Tennessee Corps of Engineers for wetland impacts greater than half an acre. Impacts of half an acre or less are submitted to the Decatur, Alabama Corps of Engineers office without public notice, called Nationwide Permit. The Corps writes an Environmental Assessment (EA) and publishes online on the Corps website as a PDF file (http://www.lrn.usace.army.mil/cof/proposed_activities.htm) where it may be viewed for 30 days. The general public and other regulatory agencies (U.S. Fish & Wildlife, Alabama Department of Environmental Management, Alabama Department of Conservation, to name several) may submit comments during this period and the list of adjacent property owners is provided a paper copy of the public notice. An additional 2 weeks is allowed for the Corps to assemble the responses/comments and deliver to the applicant who is required to make written responses to those issues arising from the public comment if the Corps deems the issues to be valid. If the Corps deems that the applicant has adequately responded to these comments, a permit will be issued. Otherwise, the specific issues must be addressed and resolved to the satisfaction of the Corps issuing office.

How are wetlands credits purchased or acquired?
To purchase credits, a permit holder within the same watershed (defined by the USGS Hydrologic Unit Code) must purchase 2 acre/credits for each acre of proposed wetland impact (thus the 2:1 ratio). Prior to purchasing credits the applicant must move through the sequencing process with the Army Corps and show the process of (1) Avoidance of impact; if not possible then, (2) Minimization of impact: then, (3) Mitigation of impact.