Conservation banking

Conservation Banking

Overview/Introduction

Conservation banking is an environmental market-based tool designed to offset adverse impacts to species that are protected under the United States Endangered Species Act (ESA). The ESA prohibits the “take” (link? Or define) of fish and wildlife species which are officially listed as endangered or threatened in their populations. However, under section 7(a)(2) for Federal Agencies, and under section 10(a) for private parties, a take may be permissible through conservation mitigation measures. Purchasing “credits” through a conservation bank is one such mitigation measure to remedy the loss.

A conservation bank is a permanently protected parcel of land with inherent abilities to harbor, preserve, and manage the survival of endangered and threatened species, along with their critical habitat. Banks are often considered to be the more ecological efficient option for mitigation because they are generally large tracts of land, which enable higher quality habitat and range connectivity, thereby creating a stronger chance of survival and sustainability for the species. (citation)

Background

History Terminology

(variation from mitigation banking and history)

Conservation banking is derived from wetland mitigation banks that were created in the early 1990’s. Through Federal agency efforts, mitigation banks were created to focus on preserving wetlands, streams, and other aquatic habitats or resources and offered compensatory mitigation credits to offset unavoidable impacts on the habitats or resources under Section 404 of the Clean Water Act (7). After the “Federal Guidance for the Establishment, Use, and Operation of Mitigation Banks (60 FR 5860558614)” was published in 1995, California contemporaneously led efforts to create conservation banks as to further increase regional conservation (6). Approval of conservation banks for various federally-listed species by the FWS, in conjunction with other Federal agencies, began throughout the early 1990’s (6).

Key Terminology Define: Taking HCP Credit

Direct quotes ***will paraphrase later***: “Conservation Bank: Permanently protected lands containing natural resource values that are conserved and permanently managed for species that are endangered, threatened, candidates for listing, or are otherwise species-at-risk. Conservation banks function to offset adverse impacts to these species that occurred elsewhere, sometimes referred to as off-site mitigation.” (3)

Habitat Conservation Plans (HCPs): "HCPs are planning documents required as part of an application for an incidental take permit. They describe the anticipated effects of the proposed taking; how those impacts will be minimized, or mitigated; and how the HCP is to be funded. HCPs can apply to both listed and nonlisted species, including those that are candidates or have been proposed for listing." (3)

Environmental Market Tool

- describe the two other mitigation options, and expand on why this is the preferred option? 

Mitigation Options:

Mitigation alternatives, aside from conservation banking, includes in-lieu fee program and permittee-responsible mitigation.

ESA connection (we should combine this to another section) Under the Endangered Species Act of 1973, endangered or threatened species and their respective critical habitat [link to ESA critical habitat page] and geographical range are protected for conservation with efforts made to restore the species and habitat back to well-being (5).

<add in section 7 connection for federal purchase?>

Under ESA Section 10 (b), takings are permitted only if the taking is incidental and otherwise lawful activity but requires that impacts be minimized and mitigated to the maximum extent practicable (5). For projects and development that will have a negative impact on an at-risk species’ habitat, such as reducing, modifying, or degrading its habitat, its developers are required to mitigate the impact. Conservation banks act as a mechanism for compensation when a species or habitat is impacted during development by providing credits that can be purchased by developers to offset their negative impact.

How Conservation Banks Function

Conservation banking is a market mechanism that increases the bank owner or landowner's stewardship and incentive for permanently protecting their land by providing them a set number of habitat or species credits that the respective owners are able to sell. These conservation credits can be sold to projects or developments that result in unavoidable and adverse impact of species from development in order to satisfy the requirements of a species or habitat conservation measures (2). Essentially, conservation banks act as a reserve for compensation for loss or damage to a species or their habitat.

Traditionally, preservation of some habitat area of an at-risk species were required by a project developer during development. This could result in habitat that became isolated, small, with reduced connectivity or functionality, and was more costly to maintain. Comparatively, conservation banks are more cost effective as they are able to maintain larger areas with greater functionality for a species.

• • include lifecycle and description about what happens when bank is full

Creation of a Conservation Bank

In California, a multi-agency process oversees the review and approval of conservation banks by the Interagency Review Team, which can be composed of all or some of the following agencies; the U.S. Army Corps of Engineers, Region IX of the Environmental Protection Agency, U.S. Fish and Wildlife Service, National Atmospheric Administration’s National Marine Fisheries Service, and the California Department of Fish and Game.

Unless the lands have been previously listed or designated for other conservation purposes, Private, Tribal, State, and local government lands are all considered eligible to be conservation banks (2). Agricultural lands, such as used for farming, ranching, timber operations, croplands or related, qualify as conservation banks for the designated species if the habitat is managed, restored, and functioning (6).

Lifecycle of the Bank

...what happens when credits run out

How are they regulated? What is USFWS’s role in regulation?

- maybe combine with the overview or how they function section from above?

Locations Currently Used

There are currently ten states and Saipan, the largest of the Northern Mariana Islands in the US, with approved USFWS conservation banks. The states include Arizona, Colorado, Florida, Kansas, Maryland, Mississippi, Oklahoma, Oregon, South Carolina, Texas, Utah, Washington, and Wyoming (1). Collectively, the nation’s 130 conservation banks is equivalent to over 160,000 acres of permanently protected land (1).

Nationally, some species with the largest respective habitat coverage include: American burying beetle, California tiger salamander, California red-legged frog, calippe silverspot butterfly, Florida panther, golden-cheeked warbler, lesser prairie chicken, Utah prairie dog, valley elderberry longhorn beetle, vernal pool fairy shrimp, vernal pool tadpole shrimp (3).

Additionally, other Californian species include the burrowing owl, coastal sage scrub, delta smelt, California giant garter snake, longfin smelt, California salmonids, San Bernardino kangaroo rat, San Joaquin kit fox, Santa Ana River Woollystar, Swainson's Hawk, and valley elderberry longhorn beetle (4).

Examples of Californian habitats include Contra Costa Goldfields, ephemeral drainages, riparian zones, vernal pools, and wetlands (4).

Key examples we should elaborate on: California Vernal Pools Chinook Salmon in Puget Sound, Washington State. (First-ever conservation bank for Chinook Salmon, Blue Heron Slough Conservation Bank)

Future outlook

Discuss new USFWS mandate <draft policy stage>; which appears to be similar to the US Corp of Engineers, which essentially requires the use of mitigating banking for those who create wetland impacts Tie in AB 2087 as a companion

In September of 2016, two pieces of legislation were created, which will likely have an impact on the future of conservation banking. First of all, the Department of the Interior (DOI) issued notice and request for comment of the draft Endangered Species Act Compensatory Mitigation Policy. This policy is intended to create a mechanism for the DOI to comply with Executive order (80 FR 68743), which directs Federal agencies that manage natural resources “to avoid and then minimize harmful effects to land, water, wildlife, and other ecological resources (natural resources) caused by land- or -water-disturbing activities…” This policy would provide guidance to the USFWS about planning and implementation of compensatory mitigation strategies. If adopted, the policy would require a shift from project-by-project compensatory mitigation approaches to broader, landscape oriented approaches such as conservation banking.

In addition, the California legislature passed Assembly Bill 2087, which will enable large conservation goals to be achieved through the creation of advance mitigation credits associated with Regional Conservation Investment Strategies (RCIS). Although

References (will properly cite these later - currently used as placemarkers)

(1) https://www.fws.gov/endangered/landowners/conservation-banking.html (2) Conservation Banking Fact Sheet https://www.fws.gov/endangered/esa-library/pdf/conservation_banking.pdf (3) Results From A Survey of Conservation Banking Sponsors and Managers. https://www.fws.gov/endangered/landowners/pdf/CB%20Sponsors%20and%20Managers%20Survey%20Report_Final_092716.pdf (4) http://www.wildlandsinc.com/map/ (5) http://www.nmfs.noaa.gov/pr/laws/esa/text.htm (6) Conservation Bank: Incentives for Stewardship Fact Sheet https://www.fws.gov/sacramento/es/Conservation-Banking/Home/Documents/conservation_banking.pdf (7) https://www.epa.gov/cwa-404/mitigation-banking-factsheet (8) http://www.csgcalifornia.com/blog/legislature-adopts-new-approach-to-conservation-planning-and-mitigation/