What is Mitigation Banking?
Definition
Mitigation banking is an environmental restoration mechanism established under Section 404 of the Clean Water Act (and analogous state programs) that allows developers and other permittees to offset unavoidable impacts to aquatic resources (wetlands, streams, etc.) by purchasing “credits” from a pre-approved mitigation bank. A mitigation bank is a site where wetlands or streams are restored, enhanced, created, or preserved ahead of time. Each quantifiable ecological benefit (e.g., acre‐feet of stream restored, acres of wetland created) is converted into a “credit” that purchasers can buy to satisfy their compensatory mitigation obligations.
Key Components
- Bank Sponsor: Entity responsible for planning, financing, and managing the mitigation site.
- Mitigation Bank Instrument (MBI): Legal agreement approved by regulatory agencies (e.g., USACE, EPA, state environmental agencies) that defines service area, credit types, performance standards, and monitoring requirements.
- Credits: Measurable units of ecological uplift (e.g., 1 credit = 1 acre of wetland restored or X linear feet of stream improvement). Credits are released in phases as performance milestones are met.
- Service Area: Geographic area—often defined by HUCs (Hydrologic Unit Codes)—within which bank credits can be used to offset impacts.
Key Considerations
- Advance vs. Future Credits: Advance (already released) credits usually cost more but reduce timing risk, whereas future credits are cheaper but contingent on bank meeting performance milestones.
- Pricing Factors: Location (urban vs. rural), credit type (wetland vs. stream), bank maturity, and demand can significantly influence per-credit cost.
- Service‐Area Restrictions: Credits typically cannot be used outside the service area defined in the MBI. Purchasing outside the service area requires in-lieu fees or alternative mitigation.
- Agency Coordination: Early engagement with the U.S. Army Corps of Engineers (or relevant permitting authority) ensures alignment on credit selection and avoids later permit delays.
- Broker vs. Direct Purchase: Brokers can simplify credit searches and negotiations but charge fees; direct purchase from the bank sponsor may reduce transaction costs.
How We Operate
Tetonka Wetland Mitigation Banking is a fully permitted, pre-approved mitigation site under Section 404 of the Clean Water Act. We have restored, enhanced, and created high-quality wetlands across our service area—each unit of ecological uplift is converted into a “wetland credit” that you can purchase to offset unavoidable project impacts.
Why Choose Tetonka?
- Proven Performance: Over X acres of wetlands successfully established.
- Responsive Service: Dedicated account managers to guide you through every step.
- Transparent Pricing: Clear, published credit rates with no hidden fees.
- Regulatory Confidence: Fully approved by USACE and state agencies.
How You Purchase Credits from Tetonka
Assess Your Wetland Impacts
- Review your permit to quantify required wetland credits (e.g., acres of wetland impacted).
- Confirm your project’s HUC location so you can use credits from our approved service area.
Check Credit Availability
- Visit our online credit ledger or call our office to see how many credits are released and available in your HUC.
- We offer both Advance Credits (fully released, ready for immediate use) and Future Credits (released upon completion of upcoming performance milestones).
- Download our Mitigation Bank Instrument from the Tetonka website.
- Verify release schedule, monitoring obligations, and any habitat-specific criteria to ensure compliance.
- Submit a Credit Reservation Form via our portal or email us at [email protected].
- Specify the quantity, credit type, and your permit number.
Negotiate Terms & Pricing
- Our standard rate is $X per wetland credit; bulk and advance-purchase discounts are available.
- Confirm payment schedule: typically a 25% reservation deposit and 75% upon credit release.
- Once your deposit is received, we’ll issue a Credit Reservation Letter.
- Upon final payment and proof of permit, you receive a formal Credit Certificate to submit to your permitting agency.
- Provide your Credit Certificate and Reservation Letter to the U.S. Army Corps of Engineers (or state agency) to modify your permit.
- With Tetonka credits in hand, your compensatory mitigation obligation is satisfied.
