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Design of US Habitat Banking Systems to Support the Conservation ...

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A DETAILED LOOK AT WETLAND AND CONSERVATION BANKING<strong>the</strong> ability <strong>of</strong> compensa<strong>to</strong>ry mitigation <strong>to</strong> replace lostaquatic resource functions may be improved if permits“established clear mitigation goals with measurableperformance standards.” 226 In 2002, <strong>the</strong> Corps issuedguidance encouraging <strong>the</strong> districts <strong>to</strong> incorporatewritten and clear performance standards in<strong>to</strong> permitsand mitigation plans. 227 However, “districts still lackdirection on how those clear standards should be constructed.”228Performance standards can be stated in terms <strong>of</strong> awide array <strong>of</strong> goals, structures, and functions. Althoughbanks should be required <strong>to</strong> meet all <strong>of</strong> <strong>the</strong> requirementsin <strong>the</strong> permits and mitigation plans, meetingadministrative performance standards (e.g. securingfinancial assurances, submitting moni<strong>to</strong>ring reports)does not suffice for achieving ecological miles<strong>to</strong>nes.Ecological performance standards may include bioticor abiotic parameters. Biotic performance standardscould include measures <strong>of</strong> plant density, cover bynative or non-native invasive species, aquatic invertebratediversity, and composition <strong>of</strong> fish assemblages.Abiotic parameters may include measures such as soilconditions, hydrologic criteria, and nutrient thresholds.The peer-reviewed literature includes significantinformation on a number <strong>of</strong> <strong>the</strong> biotic and abioticparameters that might be adapted for performancestandards. 229 However, <strong>the</strong>re are currently no nationalguidelines or models for developing ecological performancestandards.Few <strong>of</strong> <strong>the</strong> banks reviewed in ELI’s 2002 study includedperformance standards for wildlife. The wildlifestandards that were included primarily focus on waterfowl,shorebirds, and indica<strong>to</strong>r bird species, as wellas threatened and endangered species. 230 Ra<strong>the</strong>r than226 Martin, Steve, Robert Brumbaugh, and Palmer Hough. March-April 2005. “Conceptualizing Mitigation Performance Standards.”National Wetlands Newsletter. 27(2): 7-10.227 RGL 02-2 (2002), § 3, E.228 Martin, Steve, Robert Brumbaugh, and Palmer Hough. March-April 2005. “Conceptualizing Mitigation Performance Standards.”National Wetlands Newsletter. 27(2): 7-10.229 For a review <strong>of</strong> this literature, see: Environmental Law Institute.April 2004. Measuring Mitigation: A Review <strong>of</strong> <strong>the</strong> Science forCompensa<strong>to</strong>ry Mitigation Performance Standards. Washing<strong>to</strong>n, DC:Environmental Law Institute.230 Banks and Fees (2002), p. 73.measuring wildlife directly, wildlife standards are generallymeasured qualitatively by assessing “evidence <strong>of</strong>use.” 231State wildlife agencies can play a lead role in workingwith <strong>the</strong> MBRT <strong>to</strong> support <strong>the</strong> design <strong>of</strong> performancestandards for wildlife criteria – particularlythose that address <strong>the</strong> needs <strong>of</strong> <strong>the</strong> wetland specieslikely <strong>to</strong> be present at <strong>the</strong> mitigation site and thatare listed as species <strong>of</strong> concern in <strong>the</strong> state wildlifeaction plan. The development <strong>of</strong> science-based wildlifeperformance standards is perhaps one <strong>of</strong> <strong>the</strong> greates<strong>to</strong>pportunities <strong>to</strong> advance <strong>the</strong> state wildlife actionplan through wetland mitigation banking. Having welldesigned ecological performance standards in placemay improve <strong>the</strong> likelihood <strong>of</strong> bank success, lead <strong>to</strong>adequate remedial actions if wildlife standards are notbeing met, and delay <strong>the</strong> release <strong>of</strong> credits until suchstandards are met.<strong>Conservation</strong> BanksThe U.S. Fish and Wildlife Service’s conservation bankingguidance defines a conservation bank as “a parcel<strong>of</strong> land containing natural resource values that areconserved and managed in perpetuity … for specifiedlisted species.” 232 Thus, like wetland mitigation banks,endangered species conservation banks are intended<strong>to</strong> be secured in perpetuity. In some circumstances,however, a proposed bank site may be divided in<strong>to</strong> discretesegments and implemented in phases. Each segmentis supposed <strong>to</strong> be capable <strong>of</strong> functioning effectivelywhe<strong>the</strong>r or not o<strong>the</strong>r segments are subsequentlyadded <strong>to</strong> it. Before <strong>the</strong> first credit is sold in any bank(or in any phase <strong>of</strong> a bank with multiple phases) <strong>the</strong>land in <strong>the</strong> bank (or relevant phase <strong>of</strong> <strong>the</strong> bank) mustbe permanently protected through a conservationeasement or transfer <strong>of</strong> fee title. Thus, phasing canfacilitate financing <strong>of</strong> a bank and hedge against economicrisk. That is, hedging may allow a bank <strong>to</strong> generatesufficient revenue from <strong>the</strong> sale <strong>of</strong> credits from <strong>the</strong>first phase <strong>to</strong> finance subsequent phases <strong>of</strong> <strong>the</strong> bank.231 Breaux, A. and F. Serefiddin. 1999. “Validity <strong>of</strong> PerformanceCriteria and a Tentative Model for Regula<strong>to</strong>ry Use in Compensa<strong>to</strong>ryWetland Mitigation Permitting.” Environmental Management. 24(3):327-336.232 Guidance on <strong>Conservation</strong> Banks (2003), § part I.B.1. Emphasisadded.52 Environmental Law Institute

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