Compensatory Mitigation Rule:
Corps/EPA Notice of Proposed Rulemaking
Regulatory Branch U.S. Army Corps of Engineers Office of Wetlands, Oceans and Watersheds U.S. Environmental Protection Agency
October 2006
Overview
• Status of compensation • Rule drivers and timeline • Rule outline • Key changes in practice • Next steps
Type of Compensation
• Permittee-responsible mitigation (PRM) • Third-party mitigation – Mitigation Banks – In-lieu fee (ILF)
Banks 33% PRM 60%
(USACOE, 2006)
ILF 7%
Rule Drivers and Timeline
• 2001 NRC report on compensation • 2002 Initiation of Mitigation Action Plan • Defense Authorization Act for 2004 • Timeline:
– – – – 1/05 – 12/05– Corps/EPA coordination 12/5/05-3/10/06 – OMB review 3/28/06 – Federal Register publication 6/30/06 – Comment period closed
Supporting Materials
• Primary sources used in drafting:
– – – – – – 2002 Mitigation RGL 2000 ILF Guidance 1995 Banking Guidance 1990 Army/EPA Mitigation MOA 2001 NRC Report, others 2003/2004 MAP work-productions and stakeholder input
Rule Outline
1. Purpose and general considerations 2. Definitions 3. General requirements 4. Planning and documentation 5. Ecological performance standards 6. Monitoring 7. Management 8. Mitigation banks 9. In-lieu fee mitigation
Changes: 3rd Party Compensation
• Grandfathers existing banks
– Instrument modification will trigger compliance with new requirements
• In-lieu Fee mitigation
– Suspension of new authorizations – Existing ILFs: 5-yr transition period
• Preamble solicits comment on:
– Impacts of and alternatives to ILF phaseout
Changes: Public Notice
• Individual permits – “…the public notice for the proposed
activity must explain how impacts associated with the proposed activity are to be avoided, minimized, and compensated for.” §332.4/230.94
• Mitigation banks –
– All proposed banks to receive public notice and comment
Changes: Contents of Mitigation Plans
1. Project objectives 2. Site selection factors 3. Site protection instrument 4. Baseline information (at impact site and compensation site) 5. Credit determination methodology 6. Work plan 7. Maintenance plan 8. Performance standards 9. Monitoring requirements 10.Long-term management plan 11.Adaptive management plan 12.Financial assurances
Additionally for Banks…
• Prospectus and draft and final instruments must include:
1. 2. 3. 4. 5. Service area Credit release schedule Accounting procedures Transfer of liability for site success Default and closure provisions
• Rule includes timelines for bank review and dispute resolution
Next Steps
• Process/post public comments
– ~12,100 total comment letters – ~900 unique comment letters
• Analyze public comments
– Draft comment response
• Implementation
– MBRT/IRT Academy
Questions
• Compensatory Mitigation Website:
– http://www.epa.gov/wetlandsmitigation/
• Federal Docket
– http://www.regulations.gov
• Contacts:
– Corps HQ: David Olson David.B.Olson@HQ02.USACE.ARMY.MIL – EPA HQ: Palmer Hough Hough.palmer@epa.gov