The Official Publication of the National Mitigation Banking Association

President’s Corner
Board of Directors Summer 2010

Dave Urban
President Summer is here and the operations side of the mitigation business is in full swing -- every mitigation bank
has construction or maintenance activities underway. In the office, plans are being made for the future and
Stephen Collins (hopefully) sales are being made. At the NMBA level, we are still absorbing the information that was
Vice President disseminated at the annual conference and the various committees are starting their work in monthly calls.

Ann Redmond For those of you who could not make it to the conference, the biggest news was the support that Assistant
Secretary Secretary of the Army (Civil Works) Jo Ellen Darcy gave for the preference in the 2008 rules. During a
question and answer session, John Ryan of NMBA member Land and Water Resources asked Secretary Darcy
Ren Martyn about the Preference in the rule. Secretary Darcy replied that there was a definite preference for mitigation
Treasurer banks. Chief of Regulatory Meg Gaffney Smith, later in the conference, reminded the audience that
although there was a preference, the Corps still had the ability to override the preference if it was better for
George Kelly the resource. Meg however, stated that the Corps was working to do a better job at documenting the reasons
Immediate Past President which preferences are overruled. The Association is working hard to ensure this issue, and the Corps
addresses other issues surrounding the rule over time.
Ben Guillon
Director at Large
One of the central issues we are working on right now is the issue of taxation of the credits sold. Currently
Mike McCollum there are several interpretations of whether credits can be taxed at a capital gains rate or an ordinary income
Director at Large rate. The Association has been working with NMBA member Resource Environmental Solutions who has
taken the lead to promote a tax bill that clarifies the sale of credits should be taxed at capital gains rate. As
Elliott Bouillion of the writing of this note, great progress has been made to set up this bill for inclusion into a small business
Director at Large jobs bill that has a great chance of passing. Alternative vehicles are still being sought as no one can bank on
Congress.
Randy Wilgis
Director at Large On the Conservation Banking front, the Association is continuing the slow, but necessary work to gain more
acceptance of conservation banking as a tool in the Endangered Species Act . It took 10 years of work in the
Don Ewoldt Association to get the wetland mitigation rule passed, and it could easily take as long to get rules in place
Director at Large for Conservation Banking. It takes time, but we can do nothing but keep the ball moving.

Wayne White Please join our committees and to help continue the great work the
Director at Large Association is doing! We are making a more concerted effort
to announce committee calls so that all who are interested
Sheri Lewin can work on these issues.
Director at Large Dave Urban
NMBA President

www.mitigationbanking.org
 News from Washington
With the mid-term elections looming, Congress
has shortened work periods this year. They are
in session for a few weeks in July, then take an
August break through Labor Day, and then
have a session again which will end in October.
During these sessions, they need to address
federal appropriations and many other press-
ing matters. We are working hard to assure
that mitigation banking needs are also
addressed in these busy, short sessions.

Legislation. Our major legislative item is

clarifying the tax treatment of wetland mitiga-
tion bank credit sales as capital gains rather
than ordinary income. The House (H.R. 3609)
and Senate (S. 2876) bills are pending, and we
are working on seeing these bills enacted as
tent work on the tax legislation. They provide The Association’s Rules Committee continues to
part of a larger piece of legislation, such as a
updates during the Monthly conference calls, address issues of implementation. This is an
Small Business bill or other law that will move
but things can happen quickly while Congress area where member participation is most
this year.
is in session this year. Keep on reminding your helpful. The Committee needs to know where
Senators and Congressmen that you support there are issues, so that the Association can
Many thanks are due to the work of the
these bills. spend its efforts wisely.
Association's Legislative Committee for consis-
Regulation. We continue to work on issues of Final note. I encourage all members to try to
implementation of the Mitigation Banking participate in the Association's committees, by
regulations. Many of our regular contacts joining in conference calls and offering ideas to
within EPA and the Corps have been involved in Committee Chairs. This is the way that we can
responding to the Gulf Oil Spill, so it is an effort provide the best service to the Association and
to keep their attention on mitigation banking. its members.
Among the issues, we are pushing to assure
that the Corps documents its decisions select- If you have any questions or need more
ing mitigation, including documenting how it information, contact Peggy Strand,
has applied the preference for mitigation bank- mstrand@venable.com
ing. We are also trying to improve the compli-
ance with the regulatory timetables for mitiga-
tion bank review and approvals.

www.mitigationbanking.org
 Member Milestones
NMBA Website
Wildlands Take a look at the updated
website! We’ve added a Conserva-
Received Bank Approvals and Groundbreaking Approvals tion Banking page and are in the
In California, Wildlands has received approval on Liberty Island Native Fisheries Conservation Bank, River Ranch process of updating member
Wetland Mitigation Bank, River Ranch Valley Elderberry Longhorn Beetle Conservation Bank (Phase III) and the Toad listings and bank information. The
Hill Ranch Wetland Mitigation Bank.
Member’s Only section of the site
In the Pacific Northwest, Wildlands has received groundbreaking approvals for the Nookachamps Wetland Mitigation contains meeting agendas and
Bank and the Blue Heron Slough, National Marine Fisheries Salmon Conservation Bank. Projects in entitlement notes plus documents prepared by
include the first vernal pool conservation bank in Oregon as well as many other wetland and salmon restoration the association for member use as
projects. you navigate challenges related to
banking.
In the Southeast, Wildlands in partnership with TimberVest, LLC received approval on the Lone Oak Stream Mitiga-
tion Bank. The approval marks Wildlands first project in Virginia.
If you do not have, or do not know,
Mitigation Marketing your website username and
passcode, please contact
Southport Ranch Mitigation Bank info@mitigationbanking.org and
Mitigation Marketing, LLC is proud to announce the June 2010 SFWMD permit issuance for the Southport Ranch we’ll get your account activated.
Mitigation Bank, located in the south-central portion of Osceola County, Florida. The 3,316 acre bank has a service Please contact Courtney Greer at
area that encompasses portions of Orange, Osceola, and Polk Counties. The project site includes an extensive variety cgreer@advancedecology.com
of habitat communities that are of regional significance, with its location adjacent to South Florida Water Manage- with suggestions or updates for
ment District lands, Disney Wilderness Preserve, Reedy Creek Swamp, and the Kissimmee Chain of Lakes. In addition,
the Website.
the majority of the site provides vital hydrologic recharge functions for the Florida Aquifer, Reedy Creek Swamp, and
Kissimmee Chain of Lakes. Significant habitat within the project site is suitable for: the Florida black bear, crested
caracara, bald eagle, red-cockaded woodpecker, Florida sandhill crane, and wood stork, as well as an extensive
wading bird population, white-tailed deer, wild turkey, and other various mammals and reptiles. In addition, www.mitigationbanking.org
enhancement of the upland areas will provide habitat suitable for the gopher tortoise.

www.mitigationbanking.org
 Member Milestones
Little Pine Island Wetland Mitigation Bank Welcome
Featured in the United Nations Environment Program New Members
Publication: “Dead Planet, Living Platet. Biodiversity & Ecosystem Restoration for Sustainable Development”
The UNEP report confirms that large scale ecosystem restoration such as the Little Pine Island Wetland Mitigation Joseph Ivers
Bank is essential to achieving world wide sustainability and a transition to a low carbon resource efficient green Foggy Bottom, LLC
economy.

Kevin L. Erwin Consulting Ecologist, Inc. would like to acknowledge Mariner Properties Development for having the Lon Mikkelsen
Little Pine Island Wetland Mitigation Bank chosen as one of 36 world wide case studies in the UNEP Report. Inter-Fluve, Inc.

For additional information on the UNEP Report visit: www.UNEP.org/pdf/RRAecosystems_screen.pdf Brandon Pike
Wetlands Solutions, LLC

Phillip J. Harris
Red Roundel Tree Farm

Wetlands
Restoration, LLC

DEAD PLANET, LIVING PLANET

BIODIVERSITY AND ECOSYSTEM RESTORATION FOR SUSTAINABLE DEVELOPMENT

A RAPID RESPONSE ASSESSMENT

www.mitigationbanking.org
 Member Milestones
Call for
Little Pine Island Wetland Mitigation Bank continued Newsletter Articles
Wetland Restoration: Little Pine Island, Lee County, Florida, USA
Publication: “Dead Planet, Living Platet. Biodiversity & Ecosystem Restoration for Sustainable Development” When business is hot, no one wants
By the early 1990’s, forty years of drainage canal impacts resulting from extensive mosquito ditching of this 4670 to write an article – we’d all rather
acre island, had resulted in the complete loss of freshwater habitats and extensive infestations of exotic plant restore and sell. When it’s not there’s
species. Recognizing the ecological significance of this island which is now strategically located within the 40,000 not much to share regarding projects
acre Charlotte Harbor State Park, the State of Florida acquired the island in 1974 as its development was being
planned, however the state had no plans to attempt any restoration activities due to the anticipated cost. In the early or other relevant mitigation banking
1990’s the new concept of mitigation banking appealed to both the State of Florida and a private developer, Mariner news. However, this is YOUR news-
Properties Development, Inc. In 1997 restoration activities began, undertaken as a public private partnership that
was formed between Mariner and the State as the Little Pine Island Wetland Mitigation Bank. One of the first of its
letter – we encourage all members
kind in the US the bank has privately financed over 12 million USD in habitat restoration and its perpetual mainte- to submit articles! Remember,
nance, ultimately from the sale of bank credits. Without this innovative financial arrangement it would not have info@mitigationbanking.org is the
been possible to undertake the carefully planned and phased restoration designed and monitored by Kevin L. Erwin
Consulting Ecologist, Inc. Approximately 60 tons of biomass per acre was removed over nearly 2000 acres, consisting destination for your newsworthy
mostly of melaleuca (Melaleuca quinquenervia), Australian pine (Casuarina equisetifolia), and Brazilian pepper articles.
(Schinus terebinthifolius). These exotic trees dominated the island after drainage impacts occurred often forming a
dense canopy and completely displacing the native plants and wildlife. As the exotic vegetation was removed in
each phase, a deliberate process of backfilling the drainage canals commenced to restore the interior freshwater
system and the natural tidal flows along shore. Recovery of the restored fresh and saltwater marshes, mangroves
and slash pine wetland habitats has been remarkable. Following exotic removal and the restoration of natural
hydropatterns seeds of native wetland vegetation that for decades had been dormant in the soil have sprouted to
produce well-balanced native ecosystems replete with wildlife (11, 109, 17, 7, 13 and 95 species of mammals, birds,
reptiles, amphibians, fish and aquatic macro-invertebrates, respectively.)

Little Pine Island Mitigation Bank is an excellent example of a highly successful, cost effective, risk free wetland
restoration project consisting of regionally significant ecosystem restoration that will be perpetually maintained at
absolutely no cost to the public. (Biodiversity Conservation, Financial Benefits of Innovative Ecosystem Restoration)

www.mitigationbanking.org
 State Associations Update
State Associations are increasing in number and are
being created to fill gaps in addressing state and
local laws, regulations and policies that affect the
industry of mitigation banking. Currently, three
associations have formed and a fourth is pending.
State associations are now in place in North
Carolina, Georgia and Florida and a group has taken
steps to form one in Texas.
The North Carolina Environmental Restoration
Association has been in place since 2002. It has
twelve (12) active members and recently was very
successful in enacting state legislation that codified
a preference for mitigation and nutrient offset
banks over payments to in-lieu fee programs. The
law goes further than the federal mitigation
preference by requiring private entities to buy from
existing banks, to the extent such banks exist.
The Georgia Environment Restoration Association
recently formed in 2009 and already has 30
members, including professionals, consultants,
tion (TERA) formation meeting was held on May
26, 2010. This organization is initially comprised of
drafted and it is expected that there will be ten (10)
founding members, actively pursuing projects in
Texas and intended to keep up with Texas’ unique
and evolving regulatory environment. By-laws and
organizational formation paperwork are in process.
One of the issues the association is seeking to
provide input on is the promotion of new and clear
standards relating to stream mitigation. Also, they
are exploring ways to help fund the position of a
mitigation specialist within the Army Corps of
Engineers. Stay tuned for more happenings as
TERA gets underway and invites interested parties
including consulting firms to join.
The NMBA continues to evaluate the role in assist-
ing these evolving state associations. Clearly, there
are a number of issues raised by the state associa-
partners and friends in government. It maintains a
tions that are national in scope and that are of
website and has three working committees. It is
interest to the NMBA and its members. These
wrestling with issues such as the transition
issues include, without limitation: 1) how to
between new and old banking rules and the viabil-
contend with the old inventory of bank credits
ity of credits produced under the old rules. In
when new standards are implemented; 2) how to
addition, it has provided significant input on newly
comply with the preference under federal law and
published guidelines on the establishment and
to promote similar preferences under state law; 3)
operation of mitigation banks and bank credit
how to address proposed commercial banks on
purchases.
public lands; 4) how to promote stream mitigation
standards; and 5) how to help fund positions at the
The Florida Association of Mitigation Bankers was
resource agencies that would assist in the adminis-
formed in 2010 and has 27 members. Its primary
tration of the mitigation program. The NMBA will
purpose is to promote and foster the wetland
continue to provide technical support and advice
mitigation banking industry in Florida. It is consid-
and the state associations are urged to consult the
ering passage of a state law to provide a preference
NMBA on intractable issues that have national
for the use of mitigation banks, similar to the
implications.
federal law. It is also promoting polices that would
allow easy up-front determination of projected
credits on tracts of land prior to purchase.
The inaugural Texas Ecological Restoration Associa-
www.mitigationbanking.org
 Emerging Markets and Conservation Banking Committee Update
It sure is rewarding when the NMBA’s efforts
with the regulatory agencies results in action in
the field. After three years of lobbying by the
NMBA Board and committee members for an
investment by U.S. Fish & Wildlife Service in
training field personnel on conservation bank-
ing, this month we saw our efforts come to
fruition. U.S. Fish & Wildlife Service, in
partnership with The Conservation Fund, held
the first Conservation Banking Training Course
at their National Conservation Training Center
in Shepherdstown, WV this past week. Over 45
people attended with representation from U.S.
Fish & Wildlife Service, U.S. Army Corp of
Engineers, Federal Highway Administration,
Department of Defense, NOAA, and U.S.
Department of Agriculture. This effort to
expand understanding and awareness of
conservation banking at the regional and field
office level is critical to the expansion of endan-
gered species banking throughout the United
States.
The other aspect which made the training To all NMBA members who are interested in
program particularly relevant was the inclusion advancing conservation banking throughout
of representatives from the private sector in the the United States, or have an interest in other
teaching staff. Six NMBA members with emerging markets, please join us. We have a
conservation banking experience participated standing committee call the first Wednesday of
in the weeklong program, and provided invalu- every month at 1pm EST/10am PST. All are
able insights into the reality of implementing welcome.
conservation banks, and the challenges of
establishing viable credit trading markets Thanks for your continued support!
under the Endangered Species Act. The
feedback we received from Kris Hoellen, the
program coordinator from The Conservation
Fund, was that training participants “…were
really pleased to see the bankers present and
that they learned a lot from the interactions.”
Thanks to the NMBA members who invested
their time and effort to make this initial
program a success, and we look forward to the
expansion of this training effort within the
regions over the coming year.
www.mitigationbanking.org
Resource Environmental Solutions Readies for
Gulf Coast Restoration Efforts

Take a look at these pictures of offshore berms being constructed along the Louisiana Gulf
Coast as protection for environmentally sensitive areas impacted by the BP Oil Spill.
Should offshore berms not be planted to provide erosion control, these berms will wash
away, as is evident here. Coastal wetland and estuary habitats receive protection from
such barriers but they require careful design and monitoring, and, most important, plant-
ing and long term maintenance.

This is but one area where Resource Environmental Solutions aids such restoration efforts
– post construction vegetative supply and planting and long term maintenance. RES, a
leading mitigation banking firm, provides Louisiana’s largest commercial supply of marsh
grasses and coastal ecosystem restoration services.

www.mitigationbanking.org
 Interesting Articles, Courtesy Ecosystem Marketplace

BP Disaster Highlights Need to Value Ecosystem Services

BP says it will pay at least $20 billion for lost income and clean-up in the wake of its Deepwater Horizon debacle, but that doesn’t begin to cover the cost
of ecosystem services lost in the spill. Ecosystem Marketplace examines the role that environmental finance can play in preventing future disasters, and in
helping us recover from this one. Go to this link to view full article: http://tinyurl.com/36n7yld

Feds Lay Groundwork for Chesapeake Water Market

The US Environmental Protection Agency will impose pollution caps on the Chesapeake Bay, and the US Department of Agriculture will work more tightly
with farmers to keep nitrogen and phosphorous out of local waterways under a new executive order that asks the USDA to lead the development of a
watershed-wide water-quality trading market. Go to this link to view full article: http://tinyurl.com/2wf8ldf

More Governments Using Markets to Save Species

Cash-strapped governments around the world are turning to market-based schemes that preserve endangered species by incorporating the cost of habitat
destruction into the cost of development, according to a new report compiled by Ecosystem Marketplace. Unfortunately, most schemes lack the transpar-
ency needed to send the kind of price signals necessary to create an incentive to conserve.
Go to this link to view full article: http://tinyurl.com/yjmsnt9

Seeds of Change for US Environmental Markets

Markets for ecosystem services, such as endangered species, water quality and carbon in the United States currently operate in a patchwork fashion. The
Department of Agriculture’s new Office of Environmental Services aims to fix that by weaving a tracking process that pulls them together.
Go to this link to view full article: http://tinyurl.com/36fqmhh

Ecosystem Marketplace Events

5th National Conference on Coastal and Estuarine Habitat Restoration (11/13/2010 to 11/17/2010)
Texas, United States of America - The 5th National Conference on Coastal and Estuarine Habitat Restoration will focuse on the most pressing issue facing
our coasts: Preparing ... Go to this link to view event: http://tinyurl.com/35o7kfw

ACES: A Community on Ecosystem Services 2010 Conference (12/06/2010 to 12/09/2010)

Arizona, United States of America - ACES brings together government, NGOs, academia, tribal, and private sector leaders to ...
Go to this link to view event: http://tinyurl.com/32folds

NAHB Construction Forecast Conference Webinar (10/27/2010)

District of Columbia, United States of America - The National Association of Home Builders' webinar provides a current and accurate fall forecast for building
industry professionals. Go to this link to view event: http://tinyurl.com/33p2z9e

www.mitigationbanking.org
THANK YOU TO OUR 2010 PARTNERS AND SPONSORS

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and
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If you should have any questions or comments regarding the associaton, please contact Victoria K. Colangelo at info@mitigationbanking.org

10

www.mitigationbanking.org