What Is Mitigation Banking?

It's a wetland, stream, or other aquatic resource area that has been restored or enhanced for the purpose of providing compensation for unavoidable impacts to aquatic resources.

Where Did Mitigation Banking Come From?

A mitigation bank is created when an entity undertakes the activities of restoring, establishing, or enhancing an aquatic resource areas under a formal agreement with the regulatory agencies. This activity is in accordance with Section 404 and state or local wetland regulations. In the United States, federal agencies , as well as many state and local governments, require mitigation or 'offset' for the disturbance or destruction of wetland, stream, or endangered species habitat.

Mitigation banks have four distinct components

Site Area: The identified physical acreage of the area to be preserved, enhanced, restored, or created.
Agreement: The formal agreement between regulatory agencies and the bank owner, which establishes liability and success of the mitigation bank.
Interagency Review Team (IRT): The IRT team provides regulatory review, approval, and oversight of all bank activity.
Service Area: The geographic area that permitted impacts can be compensated for through the bank.

The goal is to replace the exact function and value of specific habitats that would be adversely affected by a proposed activity or project. The value of a bank is defined in "compensatory mitigation credits."