Definition
A Mitigation Land Bank is a conservation tool that allows property developers to purchase environmental credits to offset the ecological impacts of their projects. These banks involve preserving, enhancing, restoring, or creating a significant amount of sensitive natural areas, such as wetlands, to maintain the environmental balance. The credits earned may then be sold to developers whose projects entail unavoidable impacts on similar natural areas.
Oversight primarily comes from the U.S. Army Corps of Engineers and the U.S. Environmental Protection Agency (EPA), but other federal and state agencies may also be involved.
Examples
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Farmland Restoration: Green has been farming 100 acres of land along a riverbank. If Green returns 25 acres to its natural state, contributing it to a mitigation land bank, he will receive 20 credits from the Army Corps of Engineers. Industrial developer Brown, on the same river, is willing to pay Green $10,000 per credit to build on 20 acres of nearby wetlands, aiding in the development of a factory on the waterfront, within the same county as Green’s farmland.
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Wetland Enhancement: A real estate company purchases a degraded wetland area and rehabilitates it, enhancing its capacity to support wildlife and natural vegetation. The company then earns credits based on the amount of functional ecological value restored and can sell these credits to other developers needing to mitigate the impact of their land development.
Frequently Asked Questions
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What is a Mitigation Land Bank?
- A Mitigation Land Bank is a program aimed at conserving natural areas by allowing landowners to set aside parts of their property for ecological purposes and sell credits to developers who need to offset the environmental impact of their developments.
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Who oversees Mitigation Land Banks?
- These banks are primarily overseen by the U.S. Army Corps of Engineers and the U.S. Environmental Protection Agency (EPA). Other federal and state agencies may also be involved in regulation and oversight.
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How do credits work in Mitigation Land Banking?
- Credits are earned by preserving, restoring, or creating environmentally sensitive areas. These credits can then be sold to developers who need to offset the impact of their construction projects on similar natural areas.
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Who can participate in a Mitigation Land Bank?
- Landowners who possess environmentally sensitive areas (e.g., wetlands) and developers needing to mitigate ecological impacts can participate.
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What kind of land qualifies for a Mitigation Land Bank?
- Typically, environmentally sensitive land such as wetlands, streams, or other habitats essential for biodiversity and ecological functions qualifies.
Related Terms
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Wetlands Mitigation: The process of compensating for the loss of wetland areas due to development by preserving, enhancing, restoring, or creating alternative wetlands.
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Environmental Credits: Units that represent a quantifiable amount of environmental offset, used in trading under mitigation banking, carbon trading, etc.
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Conservation Easements: Legal agreements that permanently limit uses of the land to protect its conservation values.
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Habitat Restoration: The practice of returning a natural environment to a state where it can sustain wildlife and natural processes.
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Biodiversity Offset: Conservation activities designed to compensate for the loss of biodiversity due to development projects.
Online Resources
- U.S. Army Corps of Engineers - Mitigation Banking Information
- Environmental Protection Agency - Wetlands Mitigation
References
- U.S. Army Corps of Engineers, Compensatory Mitigation, www.usace.army.mil
- Environmental Protection Agency, Wetlands Compensatory Mitigation, www.epa.gov
Suggested Books for Further Studies
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“The Law and Policy of Ecosystem Services” by J.B. Ruhl, Steven E. Kraft, and Christopher L. Lant - This book explores the legal, economic, and policy dimensions of ecosystem services.
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“Compensatory Mitigation for Wetlands Permitting: Learning from Experience” by National Research Council - An excellent resource for understanding the nuanced process of wetlands mitigation.
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“Wetlands and Habitats: Law, Science, and Policy” by William J. Mitsch and James G. Gosselink - This book covers the legal and policy aspects of wetlands, and discusses various strategies for wetland preservation and mitigation.
