Transcript Slide 1

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)
ILF
7%
Banks
33%
• Third-party
mitigation
– Mitigation Banks
– In-lieu fee (ILF)
PRM
60%
(USACOE, 2006)
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
[email protected]
– EPA HQ: Palmer Hough
[email protected]