August 01, 2019PlanningLocal Government

Mitigation Credits, In-Lieu Fee

By Land Learning Foundation

In-Lieu Fees allow developers, states and local governments to offset 鈥渦navoidable impacts鈥� to streams or wetlands and fulfill the National Policy of 鈥渘o net loss of wetlands鈥� through compensatory mitigation conducted by public agencies or nonprofits in compliance with Clean Water Act Section 404 Permitting. In other words, developers can 鈥渙ffset鈥� stream and/or wetland impacts by purchasing credits that are generated by ILF programs which create, restore, and protect streams and wetlands within the affected Ecological Drainage Unit (watershed).

About

In-Lieu Fee is a method of 鈥渃ompensatory mitigation鈥� used to compensate for unavoidable impacts to streams and wetlands due to development, road construction, or other projects. The developer pays a fee to a sponsor, such as the Land Learning Foundation. The fee represents the expected costs of replacing stream or wetland functions that will be lost or degraded as a result of the development. The Land Learning Foundation then pools the funds and uses them to identify, plan, build, and maintain conservation projects at 鈥渕itigation sites,鈥� and to monitor and protect them in perpetuity.

The U.S. has a legislative goal of no net loss of wetlands (marshes, fens, bogs, etc.) despite growth and development that sometimes has an unavoidable impact. EPA requires developers to avoid or minimize impacts to wetlands, and to provide compensatory mitigation where an impact is unavoidable. Wetland mitigation banking is a cost-effective way of compensating for those impacts through conservation offsets where a project would otherwise be too expensive, or even impossible, to build without destroying wetlands. In 2015, wetland mitigation banking was a $3B industry.

At no out-of-pocket cost to local jurisdictions, Land Learning Foundation is a potential partner, using in-lieu mitigation fees to provide funding for conservation activities including wetland restoration, streambank stabilization, riparian restoration, and land acquisition in exchange for a commitment to long-term protection through a conservation easement.

 Project Examples

City of Chesterfield Mitigation Site (Wetland)

Labadie Bottoms, in Franklin County, MO, is the location of a mitigation site equaling 60 acres (+/-) of wetlands, 30 acres being forested and 29 acres emergent wetland.

Big Creek Mitigation Site (Stream)

Located in Lincoln County this site protects over one mile of riparian corridor on Big Creek. The project included a total of 1,900 feet of streambank stabilization. Funds where pooled from multiple impacts to fund the project including MODOT鈥檚 impact in developing the Warrenton overpass.

More Info/Resources

Contact Info

Land Learning Foundation
Scott Martin, Executive Director
Office: 877-573-2323
ILF Hotline: 800-761-6171


Email
Consult your community鈥檚 attorney and financial advisors prior to moving forward with any of these funding options. Any reference in this website to any person, or organization, or activities, products, or services related to such person or organization, or any linkages from this website to the website of another party, do not constitute or imply the endorsement, recommendation, or favoring of companies or organizations.