Compensatory Mitigation Rule: Corps/EPA Notice of Proposed Rulemaking

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Compensatory Mitigation RuleCorps/EPA Notice of
Proposed Rulemaking

• Regulatory Branch
• U.S. Army Corps of Engineers
• Office of Wetlands, Oceans and Watersheds
• U.S. Environmental Protection Agency
• October 2006

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Overview

• Status of compensation
• Rule drivers and timeline
• Rule outline
• Key changes in practice
• Next steps

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Type of Compensation

• Permittee-responsible mitigation (PRM)
• Third-party
• mitigation
• Mitigation Banks
• In-lieu fee (ILF)

(USACOE, 2006)
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Rule Drivers and Timeline

• 2001 NRC report on compensation
• 2002 Initiation of Mitigation Action Plan
• Defense Authorization Act for 2004
• Timeline
• 1/05 12/05 Corps/EPA coordination
• 12/5/05-3/10/06 OMB review
• 3/28/06 Federal Register publication
• 6/30/06 Comment period closed

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Supporting Materials

• Primary sources used in drafting
• 2002 Mitigation RGL
• 2000 ILF Guidance
• 1995 Banking Guidance
• 1990 Army/EPA Mitigation MOA
• 2001 NRC Report, others
• 2003/2004 MAP work-productions and stakeholder
  input

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Rule Outline

• Purpose and general considerations
• Definitions
• General requirements
• Planning and documentation

• Ecological performance standards
• Monitoring
• Management
• Mitigation banks
• In-lieu fee mitigation

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Changes 3rd Party Compensation

• Grandfathers existing banks
• Instrument modification will trigger compliance
  with new requirements
• In-lieu Fee mitigation
• Suspension of new authorizations
• Existing ILFs 5-yr transition period
• Preamble solicits comment on
• Impacts of and alternatives to ILF phase-out

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Changes Public Notice

• Individual permits -
• the public notice for the proposed activity
  must explain how impacts associated with the
  proposed activity are to be avoided, minimized,
  and compensated for. 332.4/230.94
• Mitigation banks
• All proposed banks to receive public notice and
  comment

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Changes Contents of Mitigation Plans

• Project objectives
• Site selection factors
• Site protection instrument
• Baseline information (at impact site and
  compensation site)
• Credit determination methodology
• Work plan

• Maintenance plan
• Performance standards
• Monitoring requirements
• Long-term management plan
• Adaptive management plan
• Financial assurances

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Additionally for Banks

• Prospectus and draft and final instruments must
  include
• Service area
• Credit release schedule
• Accounting procedures
• Transfer of liability for site success
• Default and closure provisions
• Rule includes timelines for bank review and
  dispute resolution

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Next Steps

• Process/post public comments
• 12,100 total comment letters
• 900 unique comment letters
• Analyze public comments
• Draft comment response
• Implementation
• MBRT/IRT Academy

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Questions

• Compensatory Mitigation Website
• http//www.epa.gov/wetlandsmitigation/
• Federal Docket
• http//www.regulations.gov
• Contacts
• Corps HQ David Olson David.B.Olson_at_HQ02.USACE.ARM
  Y.MIL
• EPA HQ Palmer Hough
• Hough.palmer_at_epa.gov