DUDEK - Selecting a Mitigation Bank Site

Regulatory Compliance

Mitigation Banks: On-Site vs. Off-Site
A mitigation bank is a portion of land set aside in perpetuity as preserved land and can provide mitigation credits to prospective buyers. This usually involves the purchase of land with some type of native habitat. The mitigation bank land should have a high biological value to benefit the environment if it is preserved, such as native habitat, rare habitat or habitat that is becoming more scarce in a particular area.

The promoter of a mitigation bank owns the mitigation land, coordinates with the appropriate regulatory agencies to acquire the necessary approvals, and sets up a mitigation bank agreement. Once the mitigation bank is set-up, credits equating to a portion of the land are sold to interested parties. The land is then portioned off as needed to various entities “buying” into the bank. The mitigation bank is maintained, monitored and managed in perpetuity by the land owner/promoter, utilizing funds set aside for those purposes as a result of the purchase of the credits.

On-site vs. Off-site
Municipalities and developers with projects in Southern California face two main challenges in establishing on-site mitigation. First, it is increasingly difficult to find unencumbered land that is suitable for the mitigation purposes and has the appropriate conditions to support the goals. Second, the on-site mitigation often is so costly that alternative solutions are sought.

Buying into an off-site mitigation bank is one option that has become a reasonable alternative to on-site mitigation.

Off-site mitigation banks allow municipalities and developers to fulfill their obligations rather than go through an on-site process of revegetation design, implementation, maintenance and usually five years of monitoring. This also eliminates the need to both set-up an on-site conservation easement, and long-term management endowment for on-site work. Instead, the buyer acquiring the mitigation bank credits helps pay to set up, maintain, manage and monitor the off-site mitigation bank in perpetuity.

Establishing an off-site bank requires evaluating a site’s potential as appropriate mitigation compensation based upon its: biological resources, the need for mitigation associated with a particular type of native habitat, permitting strategies with the resource agencies, ability to provide appropriate long-term maintenance and monitoring, and identifying potential clients who could buy into the mitigation bank.

Establishing mitigation banks usually involves the following:

Biological resources evaluations
Habitat mitigation feasibility assessments
Resource agency coordination and permitting
Habitat restoration and revegetation
Long-term biological monitoring
Long-term maintenance coordination
Long-term management coordination

Newsletter Sign Up
Don't miss May's issue! Learn about landscape water conservation tips, complying with FOG regulations and more.

Latest Dudek Headlines