Board of Directors ___________________ Wayne White President Michael Sprague Vice President Donna Collier Treasurer Randy Vogel Secretary Doug Lashley Immediate Past President ___________________ Stephen Collins Director At Large Adam Davis Director At Large Pamela Fetterman Director At Large Ben Guillon Director At Large Travis Hemmen Director At Large Russ Krauss Director At Large Will McDow Director At Large James Parker March 15, 2016 Re: Mitigation Hierarchy To whom it may concern: The National Mitigation Banking Association (“NMBA”) represents businesses and non-profits who invest in advanced compensatory mitigation in the form of Wetland Mitigation Banks, Stream Mitigation Banks, and Conservation Banks with the ultimate goal of providing a timely, cost effective, “environment first” way to replace lost wetland, stream, and habitat functions. In the Federal Compensatory Mitigation for Losses of Aquatic Resources; Final Rule 2008 (Rule) some 113 pages, including the preamble, give weighty consideration to development and implementation of a mitigation hierarchy.. The Authors drew from scientific studies as well as other governmental studies in developing the hierarchy. The Authors considered not only the environmental benefits, but also the potential for efficiencies and streamlining in the permitting and compliance processes performed by various federal resource agencies. Use of credits from mitigation banks was considered the first option in this mitigation hierarchy. The preamble to the rule is very clear on this point. Page 19605 of the rule states “In this final rule, we have established a preference for mitigation bank credits, since mitigation banks must have an approved mitigation plan and other assurances in place before credits can be provided to permittees --.” The NMBA believes that the application of the hierarchy to satisfy compensatory mitigation requirements under Section 404 of the Clean Water Act and Section 10 of the Rivers and Harbors Act is appropriate and is fully supportive thereof. The following are quotes from the Rule Federal Register (33 CFR Parts 325 and 332; 40 CFR Part 230, P. 19673): Director At Large Don Ross Director At Large Randy Wilgis Director At Large Headquarters ___________________ 1155 15th Street, NW Suite 500 Washington, DC 20005 tell: 202-457-8409 fax: 202-530-0659 www.mitigationbanking.org info@mitigationbanking.org (b) Type and location of compensatory mitigation. (1) When considering options for successfully providing the required compensatory mitigation, the district engineer shall consider the type and location options in the order presented in paragraphs (b)(2) through (b)(6) of this section… (2) Mitigation bank credits. When permitted impacts are located within the service area of an approved mitigation bank, and the bank has the appropriate number and resource type of credits available, the permittee’s compensatory mitigation requirements may be met by securing those credits from the sponsor… (3) In-lieu fee program credits. Where permitted impacts are located within the service area of an approved in-lieu fee program, and the sponsor has the appropriate number and resource type of credits available, the permittee’s compensatory mitigation requirements may be met by securing those credits from the sponsor… (4) Permittee-responsible mitigation under a watershed approach. Where permitted impacts are not in the service area of an approved mitigation bank or in-lieu fee program that has the appropriate number and resource type of credits available, permittee- responsible mitigation is the only option…. (5) Permittee-responsible mitigation through on-site and in-kind mitigation. In cases where a watershed approach is not practicable, the district engineer should consider opportunities to offset anticipated aquatic resource impacts by requiring on-site and in-kind compensatory mitigation… (6) Permittee-responsible mitigation through off-site and/or out-of-kind mitigation. If, after considering opportunities for on-site, in-kind compensatory mitigation as provided in paragraph (b)(5) of this section, the district engineer determines that these compensatory mitigation opportunities are not practicable, are unlikely to compensate for the permitted impacts, or will be incompatible with the proposed project, and an alternative,… We understand mitigation proposals originate from project applicants seeking permits and the Corps can only evaluate what is proposed by those applicants. However, the use of the Hierarchy was so important to the Corps that in one of the few post rule communications a permit decision template was created and provided for use in all Corps Districts to assure, amongst other things, application of the hierarchy in the permitting process. A copy of the permit decision template is attached for your consideration, and we request that this template be incorporated into the permitting process. In conclusion the hierarchy as written in the Rule is a well-reasoned, important part of insuring the “No Net loss” policy, and the NMBA supports the use of the hierarchy in determining how compensatory mitigation will be provided in all permit decisions. We request that it be followed as envisioned and established in the rule. We also fully support the completion of the permit decision template to document the use of the hierarchy and justify any deviations.