Mitigation Banking Regulations in Washington State: A Comprehensive Guide

Introduction

Mitigation banking is a market-based approach to environmental protection that allows developers to offset the unavoidable impacts of their projects on wetlands and other sensitive habitats by purchasing credits from certified mitigation banks. These banks create or restore wetlands on their property in advance of impacts and sell credits to developers who need to compensate for their own impacts.

Mitigation banking has become increasingly popular in Washington State due to its efficiency and effectiveness in protecting the state's valuable wetlands. However, navigating the complex regulations governing mitigation banking can be challenging. This guide provides a comprehensive overview of the Mitigation Banking Regulations in Washington State, including a summary of the key requirements, a step-by-step guide to the mitigation banking process, and answers to frequently asked questions.

Mitigation Banking Regulations Overview

The Mitigation Banking Regulations in Washington State are primarily governed by the following statutes and regulations:

• Washington Administrative Code (WAC) 173-204-200: This regulation establishes the general requirements for mitigation banking in Washington State, including the definition of mitigation banking, the types of mitigation activities that are eligible for banking, and the process for establishing and operating a mitigation bank.
• Washington Administrative Code (WAC) 173-204-210: This regulation outlines the specific requirements for the development and implementation of mitigation plans, including the criteria that must be met to ensure the success of the mitigation project.
• Washington Administrative Code (WAC) 173-204-220: This regulation establishes the procedures for reviewing and approving mitigation plans and bank proposals, as well as the criteria that the Washington Department of Ecology (DOE) will use to evaluate the proposals.

Key Requirements for Mitigation Banking in Washington State

The key requirements for mitigation banking in Washington State include:

• The mitigation bank must be established on lands that are suitable for the creation or restoration of wetlands.
• The mitigation activities must be designed to replace the functions and values of the wetlands that will be impacted by the development project.
• The mitigation plan must be developed in accordance with the requirements of WAC 173-204-210 and must be approved by the DOE.
• The bank proposal must be developed in accordance with the requirements of WAC 173-204-220 and must be approved by the DOE.
• The bank must be operated in accordance with the approved mitigation plan and bank proposal.

Step-by-Step Guide to the Mitigation Banking Process

The step-by-step guide to the mitigation banking process in Washington State is as follows:

1. Identify potential mitigation bank site. The first step is to identify a potential site for the mitigation bank. The site should be suitable for the creation or restoration of wetlands and should be located in an area where there is a need for mitigation.
2. Develop mitigation plan. Once a potential site has been identified, a mitigation plan must be developed. The mitigation plan must describe the goals of the mitigation project, the specific activities that will be undertaken, and the expected outcomes of the project.
3. Submit bank proposal to DOE. The bank proposal must be submitted to the DOE for review and approval. The bank proposal must include the mitigation plan, a detailed budget, and a description of the bank's experience and qualifications.

4. DOE review and approval. The DOE will review the bank proposal and make a determination on whether or not to approve the proposal. The DOE will consider the following factors in making its decision:

   • The need for mitigation in the area where the bank is proposed.
   • The suitability of the site for the creation or restoration of wetlands.
   • The likelihood of success of the mitigation project.
   • The experience and qualifications of the bank.

5. Bank establishment. Once the bank proposal has been approved by the DOE, the bank can be established. The bank must enter into a Mitigation Bank Agreement with the DOE which outlines the terms and conditions of the bank's operation.

   

6. Mitigation project implementation. Once the bank has been established, the mitigation project can be implemented. The mitigation project must be implemented in accordance with the approved mitigation plan.
7. Mitigation credit sales. Once the mitigation project has been successfully implemented, the bank can begin to sell mitigation credits to developers who need to compensate for their impacts on wetlands.

Tips and Tricks for Success in Mitigation Banking

Here are a few tips and tricks for success in mitigation banking in Washington State:

• Start early. The mitigation banking process can be lengthy, so it is important to start early.
• Get help from the DOE. The DOE can provide guidance and assistance throughout the mitigation banking process.
• Team up with experienced partners. Partnering with experienced partners can help you to develop a successful mitigation bank proposal and implement a successful mitigation project.
• Be patient. The mitigation banking process can take time, so it is important to be patient.

Pros and Cons of Mitigation Banking

There are both pros and cons to mitigation banking. The following table summarizes the pros and cons of mitigation banking in Washington State:

Frequently Asked Questions (FAQs)

The following are answers to some frequently asked questions about mitigation banking in Washington State:

1. What is the definition of mitigation banking? Mitigation banking is a market-based approach to environmental protection that allows developers to offset the unavoidable impacts of their projects on wetlands and other sensitive habitats by purchasing credits from certified mitigation banks.

2. What are the key requirements for mitigation banking in Washington State? The key requirements for mitigation banking in Washington State include:

   • The mitigation bank must be established on lands that are suitable for the creation or restoration of wetlands.
   • The mitigation activities must be designed to replace the functions and values of the wetlands that will be impacted by the development project.
   • The mitigation plan must be developed in accordance with the requirements of WAC 173-204-210 and must be approved by the DOE.
   • The bank proposal must be developed in accordance with the requirements of WAC 173-204-220 and must be approved by the DOE.
   • The bank must be operated in accordance with the approved mitigation plan and bank proposal.

3. How do I start a mitigation bank in Washington State? To start a mitigation bank in Washington State, you must first identify a potential site for the bank and develop a mitigation plan. You must then submit a bank proposal to the DOE for review and approval. Once the bank proposal has been approved, you can establish the bank and begin implementing the mitigation project.

4. How much does it cost to purchase mitigation credits in Washington State? The cost of mitigation credits in Washington State varies depending on the location of the bank and the type of mitigation activities that are being conducted. However, the average cost of mitigation credits in Washington State is between \$20,000 and \$40,000 per acre.

5. What are the benefits of mitigation banking? Mitigation banking can provide a number of benefits, including:

   • Efficiency: Mitigation banking can be a more efficient way to compensate for impacts on wetlands than traditional mitigation methods.
   • Effectiveness: Mitigation banking can be more effective than traditional mitigation methods in protecting wetlands.
   • Flexibility: Mitigation banking can provide developers with more flexibility in meeting their mitigation obligations.

6. What are the challenges of mitigation banking? There are a number of challenges associated with mitigation banking, including:

   • Cost: Mitigation banking can be more expensive than traditional mitigation methods.
   • Uncertainty: There is some uncertainty about the long-term success of mitigation banks.
   • Lack of control: Developers may have less control over the mitigation project if they purchase credits from a mitigation bank.

Additional Resources

The following resources provide additional information about mitigation banking in Washington State:

• Washington State Department of Ecology Mitigation Banking Program: https://ecology.wa.gov/Water-Shorelines/Wetlands/Mitigation-Banking
• Western States Mitigation Banking Association: https://www.westernmitigation.org/
• National Mitigation Banking Association: https://www.mitigationbanking.org/

Conclusion

Mitigation banking can be a valuable tool for protecting wetlands and other sensitive habitats in Washington State. However, it is important to understand the regulations governing mitigation banking before you start the process of establishing a mitigation bank or purchasing mitigation credits. By carefully following the regulations and working with experienced partners, you can help to ensure the success of your mitigation banking project.