Wetlands Mitigation Banking Agreement
A Wetlands Mitigation Banking Agreement is a contractual arrangement that allows for the restoration, creation, or enhancement of wetlands to compensate for unavoidable wetland losses due to development or other activities. This agreement enables developers or project proponents to offset their impacts on wetlands by purchasing credits from a wetland mitigation bank, which has already established or conserved wetlands.
The agreement typically involves the following key components:
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Mitigation Bank: A wetland mitigation bank is a site where wetlands have been restored, established, enhanced, or preserved expressly for the purpose of providing compensatory mitigation for projects that impact wetlands. The bank generates credits, representing a quantifiable ecological benefit, which can be sold to developers.
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Credits: Credits represent the ecological value of the wetlands created or restored in the mitigation bank. Each credit usually corresponds to a specific area of wetland restored or a particular ecological function provided by the wetlands. Developers can purchase these credits to satisfy regulatory requirements for compensating wetland impacts associated with their projects.
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Regulatory Approval: A Wetlands Mitigation Banking Agreement must be approved by regulatory agencies, such as the U.S. Army Corps of Engineers and state environmental agencies. These approvals ensure that the bank meets legal and ecological standards and that the credits can be used for mitigation purposes.
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Long-term Management: The agreement often includes provisions for long-term monitoring and management of the wetlands created or restored within the mitigation bank. This ensures that the ecological functions and values of the wetlands are maintained over time.
For example, if a developer intends to build a commercial property that will fill in a portion of a wetland, they may be required to mitigate this loss by purchasing credits from a Wetlands Mitigation Banking Agreement. By doing so, they help ensure that an equivalent area of wetland is restored or enhanced elsewhere, thus maintaining ecological balance and complying with environmental regulations.
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