U.S. Fish & Service Conservation Banking Incentives for Stewardship

Conservation banks are permanently protected lands that contain natural resource values. These lands 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. In exchange for permanently protecting the land and managing it for these species, the U.S. Fish and Wildlife Service (FWS) approves a specifed number of or species credits that bank owners may sell. Developers Wildlands, Inc. Wildlands, or other project proponents who need A biologist monitors the vernal pool vegetation in spring at the Orchard Creek to compensate for the unavoidable Conservation Bank, Placer County, California. adverse impacts their projects have on species may purchase the credits from conservation bank owners to mitigate compensatory habitat off-site is concert with regional conservation their impacts. often the best solution. However, it planning where the community is can be diffcult for individual project involved in determining which areas Conservation banking offers proponents to locate appropriate lands are conserved and which are developed opportunities for a variety of and costly to restore, protect, and to achieve a healthy environment and landowners through preservation, provide for the long-term management economy. It is particularly useful when enhancement, restoration and/or of these lands. Conservation used in conjunction with regional or establishment of habitat for species. banks provide a simple, economical county-wide Plans Lands used for ranching, farming, alternative for developers and other (HCPs) or green infrastructure plans. and timber operations or similar project proponents. A one-time agricultural purposes can function as purchase of credits saves developers Background conservation banks if they are managed time and money and provides Conservation banking for federally- as habitat for species. Degraded regulatory certainty. listed species has its roots in habitat, such as retired croplands or mitigation banking. In the early 1990s, orchards, may be restored. Linear Conservation banking benefts species the FWS began working with other areas or corridors, such as stretches of by establishing large reserves that Federal agencies to establish wetland streams and their associated riparian function as compensatory mitigation mitigation banks. In 1995, the fnal habitat that link populations of species, areas for multiple projects. It costs less policy on wetland banking, Federal may also qualify as conservation banks. per acre to manage a conservation bank Guidance for the Establishment, Use, than the equivalent acreage divided and Operation of Mitigation Banks, Who benefts? among many small isolated mitigation was published (60 FR 58605-58614). In A conservation bank is a market sites. Larger reserves are more likely that same year, the State of California enterprise that offers landowners to ensure functions, foster established a policy to promote regional incentives to protect species and their , and provide opportunities conservation by encouraging a second habitat. Landowners can proft from for linking existing habitat. In generation of mitigation banks, called selling habitat or species credits to coordination with other tools, this conservation banks, to preserve parties who need to compensate for collaborative, incentive-based approach existing . In the early 1990s, adverse impacts to these species. to conservation may aid in the recovery the FWS began approving conservation Landowners can generate income, of listed species. banks for a variety of federally-listed keep large parcels of land intact, and species, often in cooperation with possibly reduce their . Conservation banking also benefts the other Federal agencies and the State public by protecting open space and of California. As of October 2011, Developers and others whose activities contributing environmental services 105 conservation banks have been result in adverse environmental such as nutrient , pollination approved by the FWS. Information on impacts typically are required to services, and climate regulation. these banks can be found at RIBITS, compensate for such impacts. Providing Conservation banking works best in the Regulatory In-lieu Fee and Bank Tracking System, at https:// on the property. Public agencies, at the bank site. A credit may be ribits.usace.army.mil. land trusts, and other nonproft equivalent to: conservation organizations are typical In May 2003, in what has been termed groups that States authorize to hold (1) an acre of habitat for a particular “a hallmark event in the conservation . Restrictions species; 36-year history of the Endangered on the property may include a (2) the amount of habitat required to Species Act,” the FWS issued the first reduction in the number of livestock support a breeding pair; comprehensive Federal guidelines that may be grazed, prohibition of (3) a wetland unit along with its designed to promote conservation recreational off-road vehicle use, or supporting uplands; or banks as a tool for mitigating adverse prohibition of construction of new (4) some other measure of habitat or its impacts to species. Although no two roads and buildings. Any activities value to the listed species. banks will be developed or used in an inconsistent with the purposes of the identical fashion, the guidelines foster conservation bank are restricted under Methods of determining available national consistency by standardizing the . Because perpetual credits may rely on ranking or establishment and operational criteria. conservation easements are binding weighting of habitats based on habitat A copy of the guidance is available on future owners, the resource values condition and/or function, size of the at http://www.fws.gov/endangered/ of these properties are protected in parcel, or other factors. landowners/conservation- perpetuity. Many States and local banking.html. governments offer benefts What is a service area? associated with this type of property The service area for a conservation What lands are eligible? encumbrance. bank is the area outside the bank Private, Tribal, State and local property within which the bank owner government lands are eligible to What is a management plan? may sell credits. The FWS determines become conservation banks. Federal A management plan identifes tasks service areas for conservation banks lands may require special consideration for operating and maintaining a bank based on physical and ecological concerning applicability of the lands for site as well as methods for monitoring attributes such as watersheds, soil mitigation purposes and review and and maintaining desired habitats for types, species recovery units, and/or approval by the FWS for consistency species. A management plan may species and population distributions. with other regulations and policies. include removing trash on a regular Banks with more than one type of Generally, lands previously designated basis, mending and replacing fencing, credit may have different service areas for conservation purposes through monitoring the listed species or habitat designated for different credit types. another program are not eligible unless conditions, controlling invasive species designation as a bank provides an that interfere with the naturally What projects are eligible? additional conservation benefit to the functioning ecosystem, conducting Only projects that would otherwise be species. Before the FWS can approve a prescribed burns, and other activities permitted and are suitable for off-site conservation bank, landowners are to maintain the habitat. A management mitigation may use conservation banks. required to: plan is long-term, requires careful The species and habitats for which the • enter into a Conservation Banking development, and should take into project proponent seeks mitigation Agreement with the FWS; account any foreseeable changes that must be present at the conservation • grant a conservation easement to an may affect property management. A bank. Conservation banking is not a eligible third party, precluding future management plan should be as specifc substitute for avoiding and minimizing development of the property and as possible, but fexible enough to allow effects on listed species on-site. The restricting certain land uses; changes in management practices in purpose of conservation banking is not • develop a long-term management response to monitoring results. to encourage development of listed plan for the conservation bank; and species’ habitats, but rather to provide • provide funding for monitoring How is management funded? an ecologically effective alternative to and long-term management of Most often an endowment is small on-site preserves which are not the conservation bank through established to fund the long-term defensible or sustainable. establishment of a non-wasting management of the conservation endowment. bank. The endowment is an interest- Contact Us bearing account in an amount suffcient If you would like more information In return, the FWS approves to generate enough yearly income on conservation banking, please landowners to sell a specifed number to fund the annual management of contact the FWS Regional Offce with of credits to project proponents seeking the conservation bank. Since only responsibility for the State or Territory mitigation for listed species or other the interest is available for use and in which the project is being proposed. species-at-risk. The FWS designates a the principal is not withdrawn, the Regional Office information can service area for the bank within which endowment is “non-wasting,” providing be found at https://www.fws.gov/ the landowner/bank sponsor may sell a perpetual source of funding for endangered/regions/index.html. credits. management of the conservation bank. The endowment may be funded in U.S. Fish and Wildlife Service What is a conservation easement? full at the time of conservation bank Ecological Services Program A conservation easement is a legal approval or in increments, but should 5275 Leesburg Pike contract between the landowner be fully funded within fve years. Falls Church, VA 22041 (grantor) and the easement holder 703-358-2171 (grantee) in which the landowner What are credits? http://www.fws.gov/endangered/ gives up certain development rights A credit is a defned unit of trade and agrees to certain restrictions related to habitat or species of interest September 2019