Background

A mitigation bank is a wetland, stream, or other aquatic resource area that has been restored, established, enhanced, or preserved for the purpose of providing compensation for unavoidable impacts to aquatic resources permitted under Section 404 or a similar state or local wetland regulation. The overarching goal of the program, established by the Clean Water Act, is “no net loss” of wetlands.

The objective of a mitigation bank is to provide for the replacement of the chemical, physical and biological functions of wetlands and other aquatic resources that are lost because of authorized impacts. Using appropriate methods, the newly established functions are quantified as mitigation “credits’' which are available for use by the bank sponsor or by other parties to compensate for adverse impacts, ‘debits.’

Credits are categorized in one of four ways. The total number and compensatory value of the credits is determined by the US Army Corps of Engineers.

1. Creation
2. Restoration
3. Enhancement
4. Protection/Maintenance (Preservation)

The Corps carefully considers the ecological suitability of a site and whether it supports the establishment of desired aquatic resources and functions. Size and location of the site relative to other ecological features, hydrologic sources (including the availability of water rights), and compatibility with adjacent land uses and watershed management plans are important factors for consideration. Generally, only mitigation credits created within close proximity to the identified development area can be used to compensate for lost resources. For example, the Corps may require a developer to purchase mitigation credits in the same county or parish in order to qualify as an in-kind compensatory credit. 

Our Role

Resource Environmental Solutions creates wetland mitigation banks and sells resulting credits to developers. Our company actively participates in the restoration, enhancement or preservation of a wetland area. RES does not engage in wetland creation, as we believe this course of action can work against the natural order of an ecological system. Instead, we focus on purchasing wetlands that can be preserved, enhanced or restored to their natural state.

As a subsidiary of an experienced private equity company, Resource Environmental Solutions introduces investors to opportunities for growth. As partners, RES and its investors acquire a wetland area, restore the area in accordance with guidelines set by the US Army Corps of Engineers, and sell the resulting credits. A true win-win scenario, RES and its investors benefit financially and important ecological systems are restored and preserved for generations to come.  

Custom Mitigation Solutions