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Vol. 1, No. 6: June 16, 2006
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The Ecosystem Marketplace's Mitigation Mail
Conservation and Wetland News You Can Bank On
Go Ahead, There is Still Time!
If you are like us, you probably leave things to the last minute. Lucky for both of us, on at least one important issue—the proposed changes to wetland mitigation regulations in the U.S.—the last minute has been pushed back. If you failed to comment on these new rules, you now have until June 30, 2006 to do so. Late last month the U.S. Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers officially extended the public comment period for the proposed Clean Water Act Section 404 compensatory mitigation rule for an additional 30 days. As we've previously reported, this rule has been called “the most important piece of legislation to come out in the short-lived history of the mitigation banking industry.” So it is a good idea to get your ideas in while there’s still time. For more information on the rule, or on how to send comments, visit: http://www.epa.gov/wetlandsmitigation/. Now if we could only get some help on procrastination, we’d be set.
In other news, the National Mitigation Banking Association filed suit on an in-lieu fee payment in Chicago and the Ohio EPA completed a study on the effectiveness of wetland mitigation banks in the state.
Stick with us and stay abreast of what is happening across the country on mitigation banking.
The Ecosystem Marketplace Team
If you have comments or would like to submit news stories, write to us at mitmail@ecosystemmarketplace.com.
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NMBA files suit on in-lieu fee in Chicago
A recently filed lawsuit challenging a Clean Water Act (CWA) permit allowing the payment of "in-lieu" fees to compensate for destroying wetlands could force EPA and the U.S. Army Corps of Engineers to defend provisions in a proposed rule that seeks to eliminate the fees. The National Mitigation Banking Association (NMBA) last month filed a suit arguing that the Corps failed to require adequate mitigation in a permit it issued late last year for wetlands destruction to allow for expansion of O'Hare International Airport because it allowed the in-lieu fee arrangement rather than a mitigation bank.
– Read the article
Article states that Ohio EPA finds banks mostly unsuccessful
The Ohio Environmental Protection Agency conducted a study about the effectiveness of a dozen wetland mitigation banks between 1993 and 2003. The study reports that between 123 and 247 acres of wetlands were lost. The study also criticizes the diversity of the wetland banks. For example, the study reports eight of the twelve banks scored a zero for amphibian habitat, and the remaining four scored a three. The study required a score of ten to be considered more than "poor."
– Read the story
Corps closes Kentucky bank
The U.S. Army Corps (Corps) of Engineers closed the Wetland Bank of Kentucky (WBK). During an inspection, the Corps found that WBK was not in compliance with the requirements of an interagency Memorandum of Agreement (MOA). The inspection resulted in the Corps filing a civil action and a settlement of $70,000 to the Kentucky Department of Fish and Wildlife Resources Wetland and Stream Mitigation Fund. The settlement will be used to restore wetland functions and values.
– Read the story
Lake County Storm Water Management Commission announces in-lieu fee
The Lake County Stormwater Management Commission (SMC) approved in-lieu mitigation fund fees for each of the four major watersheds in Lake County. The SMC Wetland Restoration Fund program was created to provide an alternative for wetland mitigation in watersheds that do not have wetland mitigation bank credits. The fee amounts are $118,000 per acre for North Branch-Chicago River Watershed, $114,000 per acre for the Lake Michigan Watershed, $78,000 per acre for the Des Plaines River Watershed, and $74,000 per acre for the Fox River Watershed.
– Read the memo
New Jersey Department of Transportation request for proposal
The New Jersey Department of Transportation requests a proposal for a study to:
- Investigate water quality mitigation/banking/retrofit sites along State owned roadways within local watershed areas;
- Eliminate or reduce linear development waivers from strict compliance for future projects;
- Eliminate or reduce hardship waivers for project scope, schedule, cost and funding impact due to water quality mitigation.
Proposals are due July 14, 2006.
– Download the RFP [ MS Word ]
Use of conservation banking in saltwater pond valuation in San Francisco under scrutiny
An article in the San Francisco Chronicle states that "State prosecutors are seeking to suspend or revoke the license of a real estate appraiser over his work on the $100 million taxpayer purchase of the Cargill salt ponds on San Francisco Bay in 2003. The complaint filed by the state attorney general accuses Charles D. Bailey of more than 20 instances of professional misconduct in preparing the Cargill evaluation. While the complaint does not say whether Bailey's alleged mistakes led to state and federal agencies overpaying for the land, critics of the conservation deal said the evidence shows taxpayers did not get fair value."
– Read the story
Endangered fly conservation bank in the midst of potential legal controversy
A California paper reports that "Colton officials are set on boosting the city's economy by developing any available land north of Interstate 10 that's set aside for the Delhi Sands Flower Loving Fly. Officials drafted a plan that they say will help preserve the city's economic vitality through development, and protect the endangered insect through the creation of an environment in which the fly can thrive. Under the proposed plan, the undeveloped 71 acres north of I-10 would be developed and the 300 acres south of the interstate within Colton's jurisdiction would be designated as fly habitat, where a recovery plan for the inch-long fly protected by the Endangered Species Act can be implemented. The plan also calls for the 150-acre Vulcan Conservation Bank to import sand that is designated as fly habitat to create an environment that would be beneficial to the fly. If the city's plan is not in effect in one year, or making significant progress within six months, officials said they are prepared to do whatever it takes to implement it, including taking legal action."
– Read the story
Legislation on the Endangered Species Act includes conservation banking proposal
An Environment and Energy Daily story reports that “Senate Environment and Public Works Committee Chairman James Inhofe (R-Okla.) said he may turn to other vehicles to move Endangered Species Act legislation on the Senate floor in light of an apparent deadlock in negotiations and little hope of moving a bill through committee. In a related matter, Sen. Blanche Lincoln (D-Ark.) said she is not sure if the proposal that she and Sen. Mike Crapo (R-Idaho) put forward last December will see any time in the Finance Committee. "I hope so, but we have a lot of issues on our plate," Lincoln said of advancing the ESA bill. Lincoln and Crapo introduced S. 2110 last December. The measure would give landowners tax breaks as incentives for helping to recover endangered and threatened species and includes "conservation banking," a market-based initiative that would allow landowners to benefit from the sale of conservation credits.”
– Read the story
Mitigation banking profitable for Missouri farmers
According to reports, "For Dexter, Mo., farmer Davis Minton, there can be just as much profit in wetlands as there is in cropland, under the right circumstances. Minton and his family farm around 5,000 acres of corn, rice and cotton adjacent to the Otter Slough Conservation Area, 4,700 acres of prime waterfowl habitat and a popular duck-hunting spot. The farm has converted a significant amount of its cropland to wetlands, including 250 acres dedicated to a private enterprise called a mitigation bank. The farm earns income from the bank, collecting a one-time credit from farmers looking to "trade" wetlands on their farms for one in the bank. The Mintons also sell hunting leases on some of the wetlands bank units. Income from both exceed what would normally be made from cropping the land, according to Minton."
– Read the story
Advocacy group sues Army Corps for permit records
A report in Greenwire states, "An environmental group sued the Army Corps of Engineers yesterday for its alleged failure to release public documents on wetland permitting and enforcement in 2003 and 2004. Public Employees for Environmental Responsibility filed the lawsuit in U.S. District Court for the District of Columbia. It accuses the corps of failing to provide detailed records requested under the Freedom of Information Act. PEER is asking the court to order the Defense Department to release the documents that provide updates on the corps' quarterly reports for the years in question."
– Read the story
Florida developers want counties out of wetland decisions
According to reports in a Florida paper, a bill pending in the Florida Legislature contains a paragraph that would strip Florida counties of their ability to protect wetlands. The report states, "Frank Matthews, a lobbyist for developers, had lawmakers insert the provision in a bill that deals primarily with environmental permits in the Florida Panhandle...The maneuver is part of an ongoing effort by Florida developers to "streamline" wetlands permitting so they can build more quickly. Another pending bill in Tallahassee would attempt to end wetlands oversight by the U.S. Army Corps of Engineers - a goal that can't be accomplished without help from Congress. Any development that fills in a wetland that's connected to a stream or other surface water needs an Army Corps permit."
– Read the story
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