Wetland Mitigation Banking in Michigan

Presentation Outline Overview of Wetland Banking Bank Approval Process Proposed Banking Reforms Wetland Banking Grants and Loans Pine River Bank Spotlight

What is wetland banking?

What is wetland banking?• Replacement of wetland functions and valuesthrough the restoration of new wetland areas(banks) in advance of anticipated impacts• Wetlands established in banks provide “credits”which can be used by the bank sponsor or sold tomeet permit conditions• Administrative rules took effect December 25,1997

Why Michigan Encourages WetlandBanking• Preferred method of mitigation under FederalMitigation Rule and 2009 amendments to Part303.• Applicant benefits- Reduced permit processing time and costs- Increases certainty of mitigation• State benefits- Providing for establishment of new wetlands inadvance of losses- Consolidating small mitigation projects into larger,better designed and managed units- Encourages integration of wetland mitigation projectswith watershed based resource planning

Process for Establishing Banks• Contact DEQ todiscuss banking• Locate suitable site• Submit banking preproposal• Draft bankingagreement• Final bankingagreement• Construct bank• Monitor, report,long-termmanagement

General Requirements• Minimum of 10 acres in size• Services specified watersheds or ecoregions• Must have signed banking agreement before construction• No more than 15% of credits can come from preservation• Credits are not approved until wetland is constructed andhydrology has been achieved for 1 year (more on this later)There are currently 15 approved bank sites in Michigan

Certification of Bank Credits•Credit approval is based on construction ofsite in accordance with plans and successbased on monitoring•Monitoring must be initiated at least 1year prior to approval of credits•Three stage credit approval

Credit Approval/Certification1. 50% of credits are approved if construction hasbeen completed and design hydrology hasbeen achieved2. Additional 25% are approved when plantcommunity reaches 50% design cover3. Remaining 25% are approved when wetlandreaches fully functional status

Proposed Banking Reforms

Wetland Banking ReformsThe DEQ proposes to establish incentives (throughadministrative rule) that would encourage the creation of moremitigation banks and ensure bank credits are available indeveloping areas, including:• Increasing service area size of banks• Allowing earlier release of credits (e.g. release credits sooner forprivately owned banks and allowing the release of advancecredits to municipalities as done with in lieu fees programs)• Allowing wetland preservation in areas where there are notwetland restoration opportunities• Developing state backed low interest loans to municipalitiesutilizing the State Water Pollution Control Revolving Fund• Devoting a staff person to wetland mitigation banking

Wetland Banking Grants andLoans•Effective January 2, 2013•Provides municipalities grants and loansunder the Strategic Water Quality InitiativeProgram•3 Million in FY 2014

MunicipalityA city, village, county, township, authority, orother public body, including an intermunicipalagency of 2 or more municipalities, authorizedor created under state law; or an Indian tribethat has jurisdiction over construction andoperation of sewage treatment works or otherprojects qualifying under section 319 of title IIIof the federal water pollution control act, 33USC 1329.

Wetland Banking Grants•$500,000•Developing an approvable wetlandbanking agreement•Notifying local units of government•Planning and designing a wetland bank•Completing a wetland bank loanapplication

Wetland Banking Loans•$10,000,000•Completing and executing a bankingagreement•Completing design and engineering•Purchase of property•Construction of wetland bank•Monitoring and maintenance of bank

Pine River Bank Spotlight• 23 acre bank site in Emmet County, Pine River*Charlevoix* Watershed (1 mile north of Bear River)• MDOT bank sponsor• Groundwater site- Two years hydrology data- Difficult watershed for mitigation due to topography• Designed to incorporate Michigan Tech University(MTU) study on northern white cedar restoration• Approved watershed plan (Little Traverse Bay)• 65 acre conservation easement- Includes existing cedar swamp adjacent

Site LocationEmmet CountyPine River WatershedApprox. 4 miles SE ofthe City of Petoskey

Aerial PhotoExisting CedarSwamp

Plan ViewTwo Tier DesignForested and Scrub-Shrub

Pit and Mound GradingAs part of the research study, White Cedars wereplanted both on and off of mounds, and both in andout of fences.

Habitat Structure Placement

Water Control Structure

Northern White Cedar Study

Long Term Management• MDOT intends to donate land to Bear CreekTownship• Endowment for long term management- Minimal invasive species control due to siting- Regular inspections/maintenance• Wetland will be incorporated into adjacent soccerfields/park owned by township

Recent Aerial

Contact InformationMichael PenningtonWetlands, Lakes and Streams UnitWater Resources Division517-241-3303penningtonm@michigan.gov