ECO-ASSET MANAGEMENT, LLC INTRODUCTION TO MITIGATION BANKING IN MONTANA

Transcription

1 ECO-ASSET MANAGEMENT, LLC INTRODUCTION TO MITIGATION BANKING IN MONTANA

2 I NTRODUCTION TO MITIGATION BANKING Mitigation overview Mitigation process, options and results Mitigation costs sources of costs Efficiencies and benefits Users of mitigation banks in Montana Example projects Montana mitigation banks current and pending

3 AQUATIC RESOURCE PERMITTING IN MONTANA Rearrange the landscape to suit projects traditional process: Feasibility analyses; Planning and budgeting; Design, specs and construction; PERMITTING

4 WHAT IS MITIGATION? Mitigation is the restoration, creation, enhancement, or preservation of a wetland, stream, or other habitat area expressly for the purpose of compensating for unavoidable resource losses associated with development in such resource areas. Stream mitigation is accomplished through livestock exclusion fencing, reestablishment of natural stream geomorphology, riparian buffer planting, etc. Wetland mitigation is accomplished through livestock exclusion fencing, reestablishment of natural wetland topography and vegetation communities, establishment and planting of upland buffers, etc. 4

5 LEGAL AUTHORITY 1972/1977 Clean Water Act (CWA) states that the wetlands program goal is no net loss of wetlands Section 404 requires any construction project that may require the loss of an acre or more of wetlands to notify and apply for a permit from the Corps Memorandum to the Field. Federal Guidance for the Establishment, Use and Operation of Mitigation Banks CFR 332 Compensatory Mitigation for Losses of Aquatic Resources 2010/2013 Montana Stream Mitigation Procedure 5

6 BANK CREDITS VS. PERMITTEE RESPONSIBLE M I TIGATION ~ 45 days Done! Submit 404 permit application Select Bank credits as solution Purchase credits from a bank Streamlined/accelerated permitting process Predictable costs No on-going performance risk Immediate transfer of mitigation liability Submit 404 permit application Select mitigation solution Initiate design for mitigation project Agency review and approval process Construct, monitor, maintain & manage Significant delays for project Increased costs for clients Permanent long-term performance liability Unknown and unknowable outcome 6 18 Months Limitless liability 6

7 PERMITTEE RESPONSIBLE M I TIGATION Corps requirement that permittees complete 12 Components checklist and provide documentation for anticipated costs: 6 18 months Do-it-yourself wetland mitigation: up to $45K/credit (acre-based) + up to 10 yrs liability Do-it-yourself stream mitigation: up to $30/credit (linear ft based) + up to 7 yrs liability 7

8 WHY CREDITS ARE SO BENEFICIAL 1:1 credits:debits (other forms of mitigation DOUBLE up to 2:1 (credits:debits) Agency endorsements in advance US Army Corps of Engineers US EPA US Fish and Wildlife Service Time efficiencies: Reduce permitting to 45 days on average Cost effectiveness: Credits developed at scale, so 20% - 30% lower cost than permittee-responsible 100% successful every time Montana DEQ Montana Fish, Wildlife and Parks ALL liability and risk transfers to Mitigation Bank immediately and permanently 8

9 WHO USES A MITIGATION BANK? Public Sector MDT Federal Highways City/County Public Works Commercial/Industrial St. Vincent s Hospital Burlington Northern Railway Northwestern Energy Developers Private Landowners and Ranchers 9

10 RESTO RATION LIVE WATER Before After 10

11 RESTO RATION WETLANDS Before After 11

12 WHERE ARE THE BANKS NOW? Upper Clark Fork Bank Upper Missouri Bank Upper Yellowstone Bank Middle Missouri Bank 12

13 BANKS UNDER DEVELOPMENT Missouri-Sun-Smith Bank Upper Clark Fork Bank Upper Missouri Bank Upper Yellowstone Bank Middle Missouri Bank Lower-Middle Yellowstone Bank (multiple sites) 13

14 Q UESTIONS 14