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Mitigation Banks and In-Lieu Fee FundsProcesses and LessonsMitigation Banks and ILFProvide compensation for stream or wetland impacts permitted under the Virginia Water Protection Permit Program (VWPP)Credits derived from stream or wetland restoration, enhancement, preservation; upland buffer restoration and preservationCredits sold on open marketSite Approval ProcessSite Approval ProcessInteragency Review Team (IRT)DEQ and Corps are Co-ChairsOther members of IRT: EPA, FWS, NOAA, DGIF, DCR, DOF, VMRC, localitiesIRT develops template documents and guidance used for banks and ILFsIRT meets monthlyIRT strives for consensus but Chairs make final decisionDispute resolution processes established

Projects reviewed and approved by Interagency Review Team (IRT)

5ProspectusProvides Sponsor identificationGeneral information on projectMaps of location, topos, aerials, draft site designLand ownership informationService AreaSite selection factorsFeasibility issues (threats to site, locality zoning/plans, known encumbrances

SponsorSponsor is responsible party for bankIf Sponsor is LLC, Company, or other, IRT must insure that representative has ability to sign for LLCReview of Operating AgreementsSponsor must be registered with SCC if companyMBI DevelopmentMitigation Banking Instrument (MBI) is a contract between Sponsor, DEQ, and CorpsOutline credit creation, monitoring requirements, success criteria, reporting requirements, Long Term Management, financial assurances, credit release schedule, closure procedures.Service AreaArea in which a bank can sell creditsLimited by SWCLSame or adjacent subbasin (8 digit HU) within same river watershedIRT may also limit based on physiographic province or other factors to ensure similar resources and consistencyLand OwnershipSponsor does not need to own land but must have sufficient interest in propertyFee simple ownership is preferredSponsor must have easement if not ownedAllow access for Sponsor, IRT, and Long Term StewardAllow construction and repair activitiesTransfers all rights for sale of credits derived from eased land to SponsorLand OwnershipIf land owner is LLC, Company, or other, IRT must insure that representative has ability to sign for LLCReview of Operating AgreementsTitle search and title insurance determine encumbrances and other interests (utility easements, separated resource rights)Site ProtectionRequired by State Law and federal regSites must be protected in perpetuityDeed RestrictionUses template languageRestricts activitiesMust be recorded with localityRuns with the landConservation Easement Restricts activitiesMust be recorded with localityRuns with the landConservation EasementsAdditional credit given if conservation easement is held by third-party non-profit in accordance with Virginia Conservation Easement Act or Virginia Open Space Act (State agencies including Virginia Outdoor Foundation)Provides additional protectionFinancial AssurancesFour financial assurances for each siteInitial Credit ReleaseMonitoring and MaintenanceCatastrophic EventsLong Term ManagementAccepted Types: Escrow Accounts, Bonds, Letters of Credit, Casualty InsuranceManaged by escrow agent per MBI and escrow agreementFinancial AssurancesInitial Credit Release15% credits released prior to constructionFA ensures compensation is built or can be purchased elsewhereTypically bond, LOC, or fully funded escrowMonitoring and Maintenance% of each credit sale proceed put into escrow accountEnsures money available for yearly monitoring and maintenance1/10 of fund released each year

Financial AssurancesCatastrophic Events% of each credit sale proceed put into escrow account % based on complexity of projectReleased only when catastrophic event occursLong Term ManagementAmount based on complexity of project, site conditions, complexity of Long Term Management needs.Either % of credit sales or payment planReleased to Long Term Steward yearly and when maintenance activities occur

Success CriteriaBased on goals of the projectClear, quantitative criteriaWetland criteria based on hydrology, vegetative success, hydric soil developmentStream criteria based on stability of streamBuffer criteria based on stem density, herbaceous cover, vigorTree Success Criteria400 stems per acre until 30% canopy cover60+% herbaceous coverNo more than 5% invasive species coverGoal to develop a diverse native forestMonitoring RequirementsBased on the activity conductedCorrelate with Success Criteria10 year monitoring periodAdditional years added if success is not met by 10th year

Reporting RequirementsReports required each monitoring yearRequirements correlate with Success Criteria and monitoring requirementsReports include maintenance activities for the year and a description of successDue date in MBI Credit releases based on results of monitoring report and outcome of site visitsCredit Release Schedule15% initial credit release (seed money)Must be built within 1 full growing seasonWetland credits released upon successStream credits released yearly based on success and bankfull events10% of each type of credit is withheld until Year 5 Credit ReleasesReleases by formal letterCredit releases and sales recorded on ledgerLedgers available to public on Corps-sponsored website

http://ribits.usace.army.milRIBITSRegulatory In-lieu fee and Bank Information Tracking SystemMap of all approved, proposed, terminated, and closed banks in VAPOC informationLedgerService AreaCyber Repository Monitoring ReportsCredit release lettersLong Term ManagementSponsor is default Long Term StewardMoney for Long Term Management provided by LTM FundLTM Plan outlines requirements, typically including:General monitoringSite protect from trash and trespassDefense of easementFence, gate, road repairYearly report preparationTemplatesEnsures consistencyAllows project-specific modificationsEliminates the need for legal review on most projectsProponents submit redlined documents highlighting changes from templateSpeeds up document review

TemplatesMitigation Banking InstrumentDeed Restriction Escrow AgreementLong Term Management PlanOther documents could use templates:Letters of Credit/BondsMonitoring ReportsConservation easements

Guidance DocumentsProvide public with clear expectationsProvide consistencyProvide IRT with support for decisionsExamples:Mitigation Dos and DontsSite Selection CriteriaWetland Mitigation Design RecommendationsUnified Stream Methodology (crediting)Approval of Mitigation BanksData as of April 2011All mitigation banks (wetlands and streams)28SummaryInteragency Review Team provide diverse agency review and participationDEQ Co-Chair of IRTSite protection importantGoals of project drive success criteriaFinancial assurances Long Term ManagementTemplates and Guidance Docs provide consistency