Various Private and Nonprofit Entities
Creating a Mitigation Bank
Basic process for developing your own mitigation bank:
- Pre-prospectus meeting with the US Army Corps of Engineers (USACE)
- Submission of draft prospectus for review by USACE.
- If USACE finds the prospectus feasible, it will be sent out on public notice for comment.
- Review by federal, state, and local agencies and general public
- Mitigation Bank Review Team assessment
- Mitigation bank instrument development – legal document for the bank
- Mitigation bank instrument is sent out for public notice
- Bank approval
- Initial Credit release and credit selling
- Milestones and further credit release and credit selling
Utilizing a Third Party Mitigation Bank Developer
An alternative to sponsoring your own mitigation bank is to work with an experienced mitigation bank developer. These companies may offer consultation services, or may be interested in purchasing your land to develop the mitigation bank.
USACE RIBITS (Regulatory in-Lieu Fee and Bank Information Tracking System) website lists the following mitigation bank development companies currently sponsoring a bank in Texas:
- Delta Land Services, LLC
- Ecosystem Renewal, LLC
- Mitigation Management, LLC
- Mitigation Solutions USA, LLC
- Resource Environmental Solutions
- Wetland Management, LP
The RIBITS website lists nonprofits bank sponsors which appear to have been formed for the purpose of developing a specific mitigation bank. An example is Cedar Bayou Wildlife, LLC, the sponsor for Cedar Bayou Mitigation Bank.
Additionally, some large nonprofits participate in mitigation bank development. Ducks Unlimited’s wetland mitigation program is an example.
There are likely more companies and nonprofits available which are helping to develop mitigation banks, so make sure to research companies and organizations in your area of interest.
If you are interested in developing you own mitigation bank:
- Read over the EPA publication “Federal Guidance for the Establishment, Use, and Operation of Mitigation Banks”. This document will give you a realistic idea on what it takes to start a mitigation bank.
- Read over the USACE documentation on Bank & ILF Establishment. There are many documents on this page that provide insight on the market for mitigation credits and the establishment of a bank.
- Much planning goes into the design of a mitigation bank prior to submitting the proposal to USACE for evaluation. Some of these planning steps include:
- Feasibility Study – assessment of area need and market demand
- Scope and Scale decisions: type of bank, size of bank, service area for bank
- Site Selection: watershed priority/ rare habitat priority
- Development, management, monitoring of ecological performance planning
- Development of milestones and credit release schedule
- Funding the bank and long-term financial assurances for bank
- All of these elements will be part of the draft prospectus submitted to USACE for review. Set up a Pre-prospectus meeting at your local USACE district to discuss requirements of the bank and get the agency’s preliminary views on the feasibility.
If you are interested in working with a mitigation bank developer, contact developers for more information on their process and policies.