TABLE 5–1 Taxonomy of Compensatory Mitigation Mechanisms

 

Permittee-Responsible Mitigation

Third-Party-Responsible Mitigation

 

Permit Specific

Single-user Mitigation Bank

Commercial Mitigation Bank

Location of compensatory mitigation action

On- or off-site

On- or off-site

Off-site

Responsible party

Permittee

Permittee

Sponsor, typically a private firm that provides capital for project initiation. Recovers cost and earns a market rate of return by selling mitigation credits to permittees.

Relationship of mitigation actions to permitted activities (timing)

Mitigation action required concurrent with or soon after the project begins. Mitigation action required before permitted activity can begin varies by permittee.

Permitted activity cannot commence unless there are available credits; number of credits available is generally commensurate with the level of aquatic functions at a bank's site. Limited early withdrawals from the bank may be possible.

Permitted activity cannot commence unless there are credits available for sale to the permit recipient. Number of credits available is generally commensurate with the level of aquatic functions at a bank site. Limited early sales of credits may be possible.

MBRT review

No

Yes

Yes

Stewardship requirements

None required, although requirements may be imposed on an ad hoc basis.

Yes. Banking instrument should contain provisions for long-term management endowment and transfer of site to government agency or appropriate stewardship organization.

Yes. Banking instrument should contain provisions for long-term management endowment, and transfer site to government agency or appropriate stewardship organization.



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