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<br />Del/elopers who are willing
<br />
<br />to purchase wetlands and
<br />
<br />place conservation.
<br />
<br />easements bave removed
<br />
<br />the wetlands from
<br />
<br />any threat ojjutZ/re
<br />
<br />permitted impacTs,
<br />
<br />'r"
<br />'j'OEC"0S-Se 11.2S FROH.H,B,5.S,
<br />
<br />-,
<br />~
<br />
<br />impactS, Under the Guidance. setVicc 2tC1 ""lc:ction is
<br />to be b35ed on hydt'Ologlc (water) and biolos;cal crtt.,.
<br />na, The U5e of a bank in =s adj2<:o:m to 3 service ""'"
<br />may be 2II0....ed on a case-by<ast basis only 'when
<br />practicable and environmentally desirable" This limita-
<br />tion may hurt backing It a good Site is found In 3 ser,
<br />Vice area with little development and few ....etlmdS
<br />impacts. However, the Guidance allows the service
<br />area to be expanded to CO'= brger watersheds. if justi-
<br />fled under local or regional management p!.:lns, which
<br />could encouf'2gc regional water-
<br />shed pl'2ht'lI"8
<br />The Guld2nce uso sanctions
<br />out-of.klnd mit:ig;ation In c~ dr-
<br />cumsunc;c; If environmentall}.
<br />preferable. Out-of,klnd mitigation
<br />involves creating or restOring a dlf-
<br />ferent type of ....etland (e.g" forest)
<br />from the type of wetland being
<br />impacted (e,g., sh.rub), A bank opel"
<br />aror ...iIl /12ve the f1exi!>ility ro
<br />design a ....etlands mltiptlon projea
<br />that benefits o!her reso=s (jor
<br />instance, by n:babUltating a dcgracl,
<br />ed stream), or as p:ut of an areaw.
<br />ide management plan,
<br />Fin2J1y, !he Guidance vests
<br />bank sponsors wJ!h broad authority
<br />regarding erediting, debiting, and
<br />accounting procedures, While the
<br />Guidance IItlkes clear that a func.
<br />tional assessment methOd should be used in assigning
<br />=ditS. the bank sponsor wUl maintain a ledget of
<br />cn:dits sold :o.nd may determine the cost of credit:> with.
<br />out any agency involvement, Thus, once a bank is "UP
<br />and running, " fn:e,market forc;c; should drive the
<br />process,
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<br />...>).
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<br />:.J1
<br />
<br />A Tale 01 Two Banks
<br />
<br />Two recently CSl:lbllshed banks dcmonstnre <he
<br />promise of the federal Guidance in bdlltating private
<br />entrepreneurial banldng: The Ohio Wetlands Foundation,
<br />a nonprofit corpot2lion formed to CSl:lb1lsh private
<br />banks. which ,",cent!y comple~ twO major mitig3%ion
<br />projects; 2lJd the Florida Wetlandsbaok, which r=:ored a
<br />~;.aae degnded wetlands site on land owned by the
<br />city of Pembroke Pina,
<br />Ohio W..tIa..ds Fou>ldarton, One of the moSt $UC-
<br />cessful wetland mitlption banJcs In the country sarted
<br />when m'o environmental COnsulWltS and an Ohio Stale
<br />wildlife adminislr2tor sat down in the early 19905 to
<br />brainstonn on betlct ways ro achieve wetland mltiga,
<br />tion. Their titsthand experience with me deficiencies
<br />of the lI!llny piecemeal, on-slle wetland mitigation pro-
<br />jectS crated during the 1980. colUUUCtlon boom con.
<br />firmed that fulfilling wetland obligatioll5 ....... usuaJJy a
<br />
<br />~
<br />
<br />10.870 247 ee27
<br />
<br />~AuE
<br />
<br />~, ,
<br />
<br />hurrted aftenhought. The ~ul2to!}' drive to millg;"e
<br />on site creared many small ....etlands surrounded by
<br />development. These ....etlands were: degraded by off.
<br />road "ehldes and dumping. and thcy did not foster
<br />goOd ....etland hablt3t for wildlife,
<br />The gfOUp approached the Ohio Humebuilders
<br />ASSOCiation with the Ido of redirecting mitigation to
<br />restore l:uge ateU of ....etlands thaI would have ~-
<br />= wildlife and water qu:aJity benelits. The
<br />Homebullders A5SOCiation enthusiastic:ally endorsed the
<br />proposal and provided.. 590,000
<br />loan in 1992 to crdte the Ohio
<br />Wetbnds Foundation as a pri\'2.te.
<br />nonprofit colpOration, The founda-
<br />tion ncgotUted agrtttnents ....ith
<br />the regulatOry agencies that defined
<br />ilS responsibilitics in carrying out
<br />mitigation, The foundation'. first
<br />mitig:llion bank "''35 thirty-thrce
<br />acrcs of priot-<:onvened cropland
<br />owned by the Ohio [)cpartmenl of
<br />N2IUI'3l Resources adjacenr to a
<br />swe: fish hatchet}. in Hebron, twen-
<br />ty miles caSt of Columbus, Ohio,
<br />SimulWlCOusty, the foundation
<br />had 10 convince federal and scate
<br />regu!:ltoty 'l!:encies to allow deVel-
<br />oper.; to pwchase creditS in the
<br />mitigation bani< instead of mitigat-
<br />Ing on site. The foundation was
<br />concerned that the subslantUI up-
<br />froQI COstS of estabUshing a pure mitigation bank in
<br />which wetlands would b2ve to be fully e5t2blished
<br />before credits could. be sold would be uneconomical,
<br />Thcrdore, the found:tlion markered its concept to the
<br />regulaIoty agendes as 'pooled" or "consolidated' miti-
<br />gation, and requested permission to sell credits 10
<br />developers for the needed cash flow befon: acrual wet.
<br />land construction, A foundation goal was to sell Ot pre'
<br />debit 25 percent of its creditS before construction,
<br />The foundation found a sueng suppott~r in the
<br />Corps' Huntington District. which issues wetland per,
<br />mits for much of Ohio. The Corps saw mitigation bank.
<br />ing as a "win,win" Situation that would place wetlands
<br />whete they we:e needed. and at the same time help
<br />reduce crilicism of !he Section 404 program building in
<br />Washington,
<br />EPA took a mon: skeptical View of the foundation's
<br />initiati,.cs in various correspondence. EPA "''25 initially
<br />concerned that there ,"'ould be inadequate accounting
<br />of mitigation and objeaed 10 the predebltlng of mitiga-
<br />tion credits, which would leacllO net wetland losses
<br />should a bank fail, In addition, EPA feared that mitiga-
<br />tion banking might be substituted for the ""quencing
<br />requirements that avoid and minimize wedand impaas
<br />before <lllowing compensato!}' mitigation of unavoi<l-
<br />(Continued on page .,370)
<br />
<br />NR&E Summer 1998
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