HOUSE BILL No. 5151

 

October 9, 2003, Introduced by Reps. Moolenaar, Caul, LaJoy, Ward, Pastor, Milosch, Bisbee, Walker, Stahl, Casperson, Palmer, Hummel, Emmons and Farhat and referred to the Committee on Land Use and Environment.

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1994 PA 451, entitled                                             

                                                                                

    "Natural resources and environmental protection act,"                       

                                                                                

    by amending section 30301 (MCL 324.30301), as amended by 2003 PA            

                                                                                

    14, and by adding sections 30312a, 30312b, 30312c, 30312d,                  

                                                                                

    30312e, 30312f, 30312g, and 30312h.                                         

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 30301.  As used in this part:                                          

                                                                                

2       (a) "Bank sponsor" means a person who independently or in                   

                                                                                

3   cooperation with another person is responsible for the                      

                                                                                

4   establishment, operation, and long-term management of a                     

                                                                                

5   mitigation bank.                                                            

                                                                                

6       (b)  (a)  "Beach" means the area landward of the shoreline of               

                                                                                

7   the Great Lakes as the term shoreline is defined in section                 

                                                                                

8   32301.                                                                      

                                                                                

9       (c)  (b)  "Beach maintenance activities" means any of the                   

                                                                                


                                                                                

1   following in the area of Great Lakes bottomlands lying below the            

                                                                                

2   ordinary high-water mark and above the water's edge:                        

                                                                                

3                                                                                (i) Manual or mechanized leveling of sand.                                          

                                                                                

4       (ii) Mowing of vegetation.                                                   

                                                                                

5       (iii) Manual de minimis removal of vegetation.                               

                                                                                

6       (iv) Grooming of soil.                                                       

                                                                                

7       (v) Construction and maintenance of a path.                                 

                                                                                

8       (d)  (c)  "Debris" means animal or fish carcasses, zebra                    

                                                                                

9   mussel shells, dead vegetation, trash, and discarded materials of           

                                                                                

10  human-made origin.                                                          

                                                                                

11      (e)  (d)  "Department" means the department of environmental                

                                                                                

12  quality.                                                                    

                                                                                

13      (f)  (e)  "Director" means the director of the department.                  

                                                                                

14      (g) "Ecoregion" means a geographic region of relatively                     

                                                                                

15  homogenous ecological systems.  The mapped sub-subsections found            

                                                                                

16  in the publication entitled "Regional Landscape Ecosystems of               

                                                                                

17  Michigan, Minnesota, and Wisconsin," Dennis A. Albert, 1994,                

                                                                                

18  north central forest experiment station, United States department           

                                                                                

19  of agriculture, shall be used to identify ecoregion boundaries.             

                                                                                

20      (h)  (f)  "Fill material" means soil, rocks, sand, waste of                 

                                                                                

21  any kind, or any other material that displaces soil or water or             

                                                                                

22  reduces water retention potential.                                          

                                                                                

23      (i)  (g)  "Environmental area" means an environmental area as               

                                                                                

24  defined in section 32301.                                                   

                                                                                

25      (j)  (h)  "Grooming of soil" means raking or dragging,                      

                                                                                

26  pushing, or pulling metal teeth through the top 4 inches of soil            

                                                                                

27  without disturbance of or destruction to plant roots, for the               


                                                                                

1   purpose of removing debris.                                                 

                                                                                

2       (k) "In-kind mitigation" means replacement of unavoidably                   

                                                                                

3   lost wetland with created, restored, or, in exceptional                     

                                                                                

4   circumstances, preserved wetlands of a similar physical and                 

                                                                                

5   biological type, with the goal of replacing as fully as possible            

                                                                                

6   the functions of the lost wetland.                                          

                                                                                

7                                                                                (l)  (i)  "Leveling of sand" means the relocation of sand                            

                                                                                

8   within areas being leveled that are predominantly free of                   

                                                                                

9   vegetation, including the redistribution, grading, and spreading            

                                                                                

10  of sand that has been deposited through wind or wave action onto            

                                                                                

11  upland riparian property.                                                   

                                                                                

12      (m)  (j)  "Minor drainage" includes ditching and tiling for                 

                                                                                

13  the removal of excess soil moisture incidental to the planting,             

                                                                                

14  cultivating, protecting, or harvesting of crops or improving the            

                                                                                

15  productivity of land in established use for agriculture,                    

                                                                                

16  horticulture, silviculture, or lumbering.                                   

                                                                                

17      (n) "Mitigation bank" means a site where mitigation banking                 

                                                                                

18  takes place.                                                                

                                                                                

19      (o) "Mitigation banking" means the process of restoring or                  

                                                                                

20  creating self-sustaining functioning wetlands, or, in exceptional           

                                                                                

21  circumstances, preserving high-quality and threatened wetlands,             

                                                                                

22  as prior replacement of chemical, physical, and biological                  

                                                                                

23  wetland functions for wetlands that are expected to be                      

                                                                                

24  unavoidably impacted by development within a watershed or                   

                                                                                

25  ecoregion.                                                                  

                                                                                

26      (p) "Mitigation banking agreement" means a formal written                   

                                                                                

27  agreement between a mitigation bank sponsor and the department              


                                                                                

1   that identifies all relevant establishment, operation, and                  

                                                                                

2   management considerations of a wetland mitigation bank.                     

                                                                                

3       (q) "Mitigation credit" means a unit of value generally                     

                                                                                

4   equivalent to 1 acre of created or restored functioning wetland             

                                                                                

5   that may be bought and sold on the open market.                             

                                                                                

6       (r)  (k)  "Mowing of vegetation" means the cutting of                       

                                                                                

7   vegetation to a height of not less than 2 inches, without                   

                                                                                

8   disturbance of soil or plant roots.                                         

                                                                                

9       (s)  (l)  "Ordinary high-water mark" means that term as it is               

                                                                                

10  defined in section 32502.                                                   

                                                                                

11      (t) "Out-of-kind mitigation" means the replacement of                       

                                                                                

12  unavoidably lost wetland with created, restored, or, in                     

                                                                                

13  exceptional circumstances, preserved wetland that is physically             

                                                                                

14  or biologically different than the wetland that was lost.                   

                                                                                

15  Out-of-kind mitigation may result in the replacement of different           

                                                                                

16  wetland functions than the functions that were lost.                        

                                                                                

17      (u)  (m)  "Path" means a temporary access walkway from  the                 

                                                                                

18  upland riparian property directly to the shoreline across swales            

                                                                                

19  with standing water, not exceeding 6 feet in bottom width and               

                                                                                

20  consisting of sand and pebbles obtained from the exposed,                   

                                                                                

21  nonvegetated bottomlands or from the upland riparian property.              

                                                                                

22      (v)  (n)  "Person" means an individual, sole proprietorship,                

                                                                                

23  partnership, corporation, association, municipality, this state,            

                                                                                

24  an instrumentality or agency of this state, the federal                     

                                                                                

25  government, an instrumentality or agency of the federal                     

                                                                                

26  government, or other legal entity.                                          

                                                                                

27      (w)  (o)  "Removal of vegetation" means the manual or                       


                                                                                

1   mechanized removal of vegetation, other than the manual de                  

                                                                                

2   minimis removal of vegetation.                                              

                                                                                

3       (x) "Service area" means an area in which a mitigation bank                 

                                                                                

4   can reasonably be expected to provide appropriate compensatory              

                                                                                

5   mitigation for impacts to wetlands, defined on a watershed or               

                                                                                

6   ecoregion basis.                                                            

                                                                                

7       (y) "Unavoidably lost" means a wetland impact which has been                

                                                                                

8   approved by the department in accordance with permit review                 

                                                                                

9   criteria under this part.                                                   

                                                                                

10      (z) "Watershed" means a drainage area within which the                      

                                                                                

11  replacement of certain wetland functions, including hydrologic,             

                                                                                

12  water quality, and aquatic habitat functions, may be authorized             

                                                                                

13  by the use of a mitigation bank.  Mitigation bank watersheds are            

                                                                                

14  illustrated in figure 1 in R 281.961 of the Michigan                        

                                                                                

15  administrative code.                                                        

                                                                                

16      (aa)  (p)  "Wetland" means land characterized by the presence               

                                                                                

17  of water at a frequency and duration sufficient to support, and             

                                                                                

18  that under normal circumstances does support, wetland vegetation            

                                                                                

19  or aquatic life, and is commonly referred to as a bog, swamp, or            

                                                                                

20  marsh and which is any of the following:                                    

                                                                                

21                                                                               (i) Contiguous to the Great Lakes or Lake St. Clair, an                             

                                                                                

22  inland lake or pond, or a river or stream.                                  

                                                                                

23      (ii) Not contiguous to the Great Lakes, an inland lake or                    

                                                                                

24  pond, or a river or stream; and more than 5 acres in size; except           

                                                                                

25  this subparagraph shall not be of effect, except for the purpose            

                                                                                

26  of inventorying, in counties of less than 100,000 population                

                                                                                

27  until the department certifies to the commission it has                     


                                                                                

1   substantially completed its inventory of wetlands in that                   

                                                                                

2   county.                                                                     

                                                                                

3       (iii) Not contiguous to the Great Lakes, an inland lake or                   

                                                                                

4   pond, or a river or stream; and 5 acres or less in size if the              

                                                                                

5   department determines that protection of the area is essential to           

                                                                                

6   the preservation of the natural resources of the state from                 

                                                                                

7   pollution, impairment, or destruction and the department has so             

                                                                                

8   notified the owner; except this subparagraph may be utilized                

                                                                                

9   regardless of wetland size in a county in which subparagraph (ii)            

                                                                                

10  is of no effect,  ;  except for the purpose of inventorying, at             

                                                                                

11  the time.                                                                   

                                                                                

12      (bb) "Wetland creation" means the physical and biological                   

                                                                                

13  establishment of a wetland where a wetland did not formerly                 

                                                                                

14  exist.                                                                      

                                                                                

15      (cc) "Wetland function" means the physical, chemical, or                    

                                                                                

16  biological processes which provide benefits to the public and               

                                                                                

17  which are recognized in section 30302(1)(b).                                

                                                                                

18      (dd) "Wetland preservation" means the protection of an                      

                                                                                

19  ecologically critical wetland in perpetuity through the                     

                                                                                

20  implementation of appropriate legal and physical mechanisms.                

                                                                                

21      (ee) "Wetland restoration" means the reestablishment of                     

                                                                                

22  wetland characteristics and functions at a site where they have             

                                                                                

23  ceased to exist through the replacement of wetland hydrology,               

                                                                                

24  vegetation, or soils.                                                       

                                                                                

25      Sec. 30312a.  (1) Any person may establish a mitigation bank                

                                                                                

26  and may buy, sell, or use mitigation credits as approved by the             

                                                                                

27  department to meet the requirements of this part.                           


                                                                                

1       (2) The department may authorize the use of credits from an                 

                                                                                

2   approved mitigation bank to satisfy all or a part of the wetland            

                                                                                

3   mitigation requirements associated with any permit application in           

                                                                                

4   accordance with applicable statutory criteria.                              

                                                                                

5       (3) The department may authorize the use of credits from an                 

                                                                                

6   established mitigation bank only to offset the unavoidable loss             

                                                                                

7   of wetlands as approved in accordance with this part.  Before               

                                                                                

8   approving the use of a mitigation bank, the department shall                

                                                                                

9   determine that the applicant has taken all feasible and prudent             

                                                                                

10  steps to avoid the loss of wetland resources and has used all               

                                                                                

11  practical means to minimize impacts to wetlands.  The                       

                                                                                

12  establishment of, or purchase of, credits from a mitigation bank            

                                                                                

13  does not eliminate the need to comply with the permit review                

                                                                                

14  criteria established in this part.                                          

                                                                                

15      (4) Site-specific functions shall be replaced on site where                 

                                                                                

16  practical and where the department has determined that on-site              

                                                                                

17  replacement is environmentally preferable.  In these                        

                                                                                

18  circumstances, mitigation banking shall not be used.                        

                                                                                

19      Sec. 30312b.  (1) A mitigation bank shall be maintained in                  

                                                                                

20  perpetuity.                                                                 

                                                                                

21      (2) To the extent possible, a mitigation bank shall provide                 

                                                                                

22  multiple chemical, physical, and biological functions.  Single              

                                                                                

23  function, low-quality wetlands, such as wastewater ponds, shall             

                                                                                

24  not qualify as mitigation banks.  The department shall quantify             

                                                                                

25  the wetlands in a mitigation bank as mitigation credits that are            

                                                                                

26  available for use by the bank sponsor or other persons to                   

                                                                                

27  compensate for adverse impacts.                                             


                                                                                

1       (3) The department shall normally base the number of                        

                                                                                

2   mitigation credits in a mitigation bank on the acres of created             

                                                                                

3   and restored wetland in the mitigation bank after monitoring by             

                                                                                

4   the bank sponsor demonstrates that wetland functions have been              

                                                                                

5   established.                                                                

                                                                                

6       (4) In exceptional circumstances, the preservation of certain               

                                                                                

7   existing wetlands may also contribute to the number of mitigation           

                                                                                

8   credits.  Not more than 15% of the total wetland acreage in any             

                                                                                

9   mitigation bank shall be for the preservation of existing                   

                                                                                

10  wetlands.  The department shall grant mitigation credit for                 

                                                                                

11  preserved wetlands only if all of the following apply:                      

                                                                                

12      (a) The preserved wetlands perform exceptional physical or                  

                                                                                

13  biological functions that are essential to the preservation of              

                                                                                

14  the natural resources of the state or the preserved wetlands are            

                                                                                

15  an ecological type that is rare or endangered.                              

                                                                                

16      (b) The preserved wetlands are under a demonstrable threat of               

                                                                                

17  loss or substantial degradation due to human activities that are            

                                                                                

18  not under the control of the mitigation bank sponsor and that are           

                                                                                

19  not otherwise restricted by state law.                                      

                                                                                

20      (c) Inclusion of the preserved wetlands in a mitigation bank                

                                                                                

21  and implementation of other actions identified in the mitigation            

                                                                                

22  bank plan will serve to protect functions associated with the               

                                                                                

23  wetlands that would otherwise be lost.                                      

                                                                                

24      (5) Mitigation credit granted for preserved wetlands shall be               

                                                                                

25  at a rate of 0.1 credit for each acre of preserved wetland.                 

                                                                                

26      (6) A mitigation bank shall be planned and managed in a                     

                                                                                

27  watershed or ecoregion context, or both, and shall include                  


                                                                                

1   restored, created, or, in exceptional circumstances, preserved              

                                                                                

2   wetlands that will provide functions which meet the needs of the            

                                                                                

3   watershed or ecoregion, or both.                                            

                                                                                

4       (7) A mitigation bank may be established on either public or                

                                                                                

5   private land.  However, a mitigation bank shall be established on           

                                                                                

6   public lands only if it furthers established management                     

                                                                                

7   objectives that have been defined by the agency responsible for             

                                                                                

8   managing the public land, and with the approval of the agency               

                                                                                

9   responsible for management of that land.                                    

                                                                                

10      (8) A mitigation bank shall provide at least 10 acres of new                

                                                                                

11  wetland.  The new wetland may consist of multiple sites if the              

                                                                                

12  sites are a minimum size of 1 acre each and are administered                

                                                                                

13  under a single mitigation banking agreement.                                

                                                                                

14      Sec. 30312c.  (1) The establishment and use of a mitigation                 

                                                                                

15  bank are voluntary.  A permit applicant has the option of                   

                                                                                

16  providing compensatory mitigation for a single permitted action             

                                                                                

17  at the time of permit issuance.                                             

                                                                                

18      (2) A person who chooses to establish and operate a                         

                                                                                

19  mitigation bank shall enter into a written mitigation banking               

                                                                                

20  agreement with the department before construction of the                    

                                                                                

21  mitigation bank or any sale or use of credits from the bank.  The           

                                                                                

22  agreement shall define the size of the bank, the ecological type            

                                                                                

23  of wetlands to be included, wetland functions to be provided, the           

                                                                                

24  area to be served by the mitigation bank, and the requirements              

                                                                                

25  for establishment, operation, and long-term maintenance by the              

                                                                                

26  mitigation bank sponsor.  The mitigation bank sponsor shall                 

                                                                                

27  provide the department with all of the information needed to                


                                                                                

1   prepare the mitigation banking agreement.  A mitigation banking             

                                                                                

2   agreement shall include all of the following elements and                   

                                                                                

3   provisions:                                                                 

                                                                                

4       (a) A legal identification of and authorized signature for                  

                                                                                

5   the mitigation bank sponsor.                                                

                                                                                

6       (b) The mitigation bank's location and size, including a                    

                                                                                

7   legal description of the property.                                          

                                                                                

8       (c) Ownership of the site and documentation that the                        

                                                                                

9   mitigation bank sponsor is authorized to use the property.  If              

                                                                                

10  the owner is not the mitigation bank sponsor, then the owner                

                                                                                

11  shall also sign the mitigation banking agreement.                           

                                                                                

12      (d) Mitigation bank goals and objectives and the geographic                 

                                                                                

13  area to be served.  The goal statement shall indicate the types             

                                                                                

14  of wetlands to be developed and the types of wetland losses for             

                                                                                

15  which the bank is to be used.                                               

                                                                                

16      (e) An analysis of the ability of the site to support a                     

                                                                                

17  diverse wetland system.                                                     

                                                                                

18      (f) Consistency with existing watershed or ecoregion                        

                                                                                

19  management plans.                                                           

                                                                                

20      (g) Long-term development trends in the area and their                      

                                                                                

21  potential impact on the long-term viability of the mitigation               

                                                                                

22  bank.                                                                       

                                                                                

23      (h) A description of baseline conditions at the proposed                    

                                                                                

24  mitigation bank, including delineation of all existing surface              

                                                                                

25  waters or wetlands.                                                         

                                                                                

26      (i) The mitigation bank development plan.                                   

                                                                                

27      (j) A long-term mitigation bank management plan.  If the                    


                                                                                

1   person responsible for ongoing management of the mitigation bank            

                                                                                

2   is not the mitigation bank sponsor, that person shall also sign             

                                                                                

3   the mitigation banking agreement.                                           

                                                                                

4       (k) The accounting procedures to be used to track the                       

                                                                                

5   availability, sale, and use of mitigation credits and the                   

                                                                                

6   procedures for notifying the department of the sale or use of               

                                                                                

7   mitigation credits.                                                         

                                                                                

8                                                                                (l) Performance standards for determining mitigation bank                           

                                                                                

9   success and certification of mitigation credits.                            

                                                                                

10      (m) A monitoring plan to evaluate the achievement of                        

                                                                                

11  performance standards and reporting protocol.                               

                                                                                

12      (n) Provisions for financial assurances to be used to                       

                                                                                

13  complete remedial action in the event of mitigation bank default            

                                                                                

14  or failure, and provisions for the release of financial                     

                                                                                

15  assurances once an approved mitigation bank is determined by the            

                                                                                

16  department to be self-sustaining.                                           

                                                                                

17      (o) Provisions for the protection of the site in perpetuity,                

                                                                                

18  such as through a conservation easement or deed restriction.                

                                                                                

19      (p) Assumption of liability for construction and operation by               

                                                                                

20  the mitigation bank sponsor.                                                

                                                                                

21      (q) If the mitigation bank will also be used to meet                        

                                                                                

22  mitigation requirements of another agency, whether federal,                 

                                                                                

23  state, or local, the signature of an authorized official of the             

                                                                                

24  agency.                                                                     

                                                                                

25      (3) Before submitting a mitigation banking proposal to the                  

                                                                                

26  department, the mitigation bank sponsor shall notify all affected           

                                                                                

27  local units of government and adjacent property owners of the               


                                                                                

1   proposed mitigation bank and shall take reasonable steps to                 

                                                                                

2   address any objections to the project.  The bank sponsor shall              

                                                                                

3   provide copies of any comments received and documentation of                

                                                                                

4   efforts to resolve local issues to the department with the                  

                                                                                

5   mitigation banking proposal.                                                

                                                                                

6       (4) The mitigation bank sponsor shall obtain the necessary                  

                                                                                

7   construction permits for the alteration of existing wetlands or             

                                                                                

8   surface waters and all other required federal, state, or local              

                                                                                

9   approvals before initiating mitigation banking.  The permit                 

                                                                                

10  review criteria in the act will be applied in reviewing an                  

                                                                                

11  application to construct a mitigation bank.                                 

                                                                                

12      (5) This part does not preempt any requirements to obtain                   

                                                                                

13  local approval for construction of a wetland mitigation bank                

                                                                                

14  under a local zoning ordinance or other local regulation.                   

                                                                                

15      Sec. 30312d.  (1) In determining whether mitigation credits                 

                                                                                

16  from a particular mitigation bank may be used to meet the                   

                                                                                

17  requirements of this part, the department shall consider all of             

                                                                                

18  the following factors:                                                      

                                                                                

19      (a) The location of the mitigation bank relative to the                     

                                                                                

20  permitted wetland impact.                                                   

                                                                                

21      (b) The wetland types represented in the mitigation bank.                   

                                                                                

22      (c) The sustainable wetland functions provided by the                       

                                                                                

23  mitigation bank.                                                            

                                                                                

24      (d) The area of wetland provided as mitigation relative to                  

                                                                                

25  the impact.                                                                 

                                                                                

26      (2) In-kind mitigation is required unless the department                    

                                                                                

27  determines that it is not practical or that in-kind mitigation is           


                                                                                

1   not essential and that out-of-kind wetland mitigation provides a            

                                                                                

2   greater benefit to the wetland resources of the state.  The                 

                                                                                

3   department may consider the use of out-of-kind mitigation, based            

                                                                                

4   on 1 or more of the following criteria:                                     

                                                                                

5       (a) The types of wetlands restored or created in the                        

                                                                                

6   mitigation bank help to restore the historic balance of wetland             

                                                                                

7   types within the watershed or ecoregion.                                    

                                                                                

8       (b) The mitigation bank provides particular wetland functions               

                                                                                

9   that meet defined resource management needs and goals articulated           

                                                                                

10  in an established watershed or ecosystem plan and will contribute           

                                                                                

11  to the overall health of the ecosystem.                                     

                                                                                

12      (c) The mitigation bank supports a diverse wetland complex                  

                                                                                

13  that offsets cumulative primary and secondary impacts within the            

                                                                                

14  watershed.                                                                  

                                                                                

15      (d) The mitigation credits will be used to offset the loss of               

                                                                                

16  wetland types that cannot readily be recreated in a manner that             

                                                                                

17  is consistent with the permit review criteria of this part.                 

                                                                                

18      (3) The service area of a mitigation bank shall be                          

                                                                                

19  appropriate to the functions provided.  The department shall use            

                                                                                

20  all of the following criteria in defining the service area of a             

                                                                                

21  mitigation bank:                                                            

                                                                                

22      (a) Functions that are dependent upon the location of the                   

                                                                                

23  wetland in the subwatershed shall be replaced by mitigation                 

                                                                                

24  credits from a bank or other site within the same subwatershed.             

                                                                                

25      (b) Wetland functions which are watershed dependent, but                    

                                                                                

26  which are not specific to a subwatershed, will be replaced in the           

                                                                                

27  same watershed as the impact.                                               


                                                                                

1       (c) Wetland functions, such as migratory bird habitat, that                 

                                                                                

2   are not dependent upon location in the watershed shall be                   

                                                                                

3   replaced either within the same watershed or within the same                

                                                                                

4   ecoregion.                                                                  

                                                                                

5       (d) The mitigation required by an individual permit may be                  

                                                                                

6   split so that location-specific wetland functions are replaced on           

                                                                                

7   site or within the same subwatershed area, while other functions            

                                                                                

8   are replaced through a mitigation bank that has a larger defined            

                                                                                

9   service area.                                                               

                                                                                

10      (4) When credits from a mitigation bank are used, the                       

                                                                                

11  mitigation ratio shall be determined based on the nature of the             

                                                                                

12  permitted wetland loss in accordance with R 281.925 the Michigan            

                                                                                

13  administrative code.                                                        

                                                                                

14      Sec. 30312e.  (1) Before use of mitigation credits, the                     

                                                                                

15  mitigation bank sponsor shall assess the establishment of                   

                                                                                

16  wetlands in accordance with a monitoring program defined in the             

                                                                                

17  mitigation banking agreement and shall certify the extent to                

                                                                                

18  which performance standards defined in the mitigation banking               

                                                                                

19  agreement have been met.  The design of the monitoring program              

                                                                                

20  shall measure the achievement of performance standards associated           

                                                                                

21  with the targeted wetland functions.  Monitoring shall begin at             

                                                                                

22  least 1 year before use of credits.  Once mitigation credits in             

                                                                                

23  the bank are used, monitoring shall continue on an annual basis             

                                                                                

24  until performance standards for the full establishment of the               

                                                                                

25  bank are met.  Monitoring parameters shall include all of the               

                                                                                

26  following:                                                                  

                                                                                

27      (a) Hydrology.                                                              


                                                                                

1       (b) Plant community structure.                                              

                                                                                

2       (c) Animal community structure.                                             

                                                                                

3       (d) Design acreage.                                                         

                                                                                

4       (e) Other measures as defined in the mitigation banking                     

                                                                                

5   agreement.                                                                  

                                                                                

6       (2) The mitigation bank sponsor shall certify that                          

                                                                                

7   appropriate wetland functions have been established in the                  

                                                                                

8   mitigation bank pursuant to the banking agreement by submitting a           

                                                                                

9   report to the department that includes all of the following                 

                                                                                

10  information:                                                                

                                                                                

11      (a) All data collected during the monitoring program.                       

                                                                                

12      (b) An evaluation of the status of wetlands in the mitigation               

                                                                                

13  bank as compared to design criteria.                                        

                                                                                

14      (c) A list of the number and type of mitigation credits for                 

                                                                                

15  which approval is requested.                                                

                                                                                

16      (3) The department shall approve or disapprove the                          

                                                                                

17  certification of the mitigation bank sponsor within 60 days of              

                                                                                

18  receipt of the sponsor's report.  The department may determine              

                                                                                

19  that mitigation credits cannot be approved because the wetlands             

                                                                                

20  have not achieved design wetland functions or because of a lack             

                                                                                

21  of adequate information to document wetland functions.  The                 

                                                                                

22  department's evaluation may include an on-site inspection of the            

                                                                                

23  mitigation bank.  If the department determines that wetland                 

                                                                                

24  conditions have been established in accordance with the                     

                                                                                

25  mitigation banking agreement, the department shall issue a letter           

                                                                                

26  to the mitigation bank sponsor approving the number and type of             

                                                                                

27  wetland credits that are available for use and shall list the               


                                                                                

1   approved credits in a mitigation bank registry as required in               

                                                                                

2   section 30312f.                                                             

                                                                                

3       (4) The department shall not authorize the use of credits                   

                                                                                

4   from a mitigation bank in advance of initial restoration or                 

                                                                                

5   creation of wetlands in the bank except as provided in section              

                                                                                

6   30312h.  The department shall authorize the use of approved                 

                                                                                

7   mitigation credits from the mitigation bank in accordance with              

                                                                                

8   the following schedule:                                                     

                                                                                

9       (a) The use of 50% of approved mitigation credits shall be                  

                                                                                

10  allowed after the department determines that construction has               

                                                                                

11  been completed in accordance with plans and specifications                  

                                                                                

12  included in the mitigation banking agreement and design hydrology           

                                                                                

13  has been achieved and maintained for at least 1 calendar year.              

                                                                                

14      (b) The use of an additional 25% of total mitigation credits                

                                                                                

15  shall be allowed when the mitigation bank wetland plant community           

                                                                                

16  achieves 50% of design cover based on performance standards                 

                                                                                

17  defined in the mitigation banking agreement.                                

                                                                                

18      (c) The use of the final 25% of credits shall be allowed when               

                                                                                

19  the created and restored wetlands in the bank are fully                     

                                                                                

20  functional and meet performance standards defined in the                    

                                                                                

21  mitigation banking agreement.                                               

                                                                                

22      (5) If the department agrees to inclusion of preserved                      

                                                                                

23  wetlands in a mitigation bank under section 30312b, the                     

                                                                                

24  mitigation bank sponsor shall provide documentation of permanent            

                                                                                

25  protection of the wetlands through appropriate legal instruments            

                                                                                

26  and shall complete and document all other steps defined in the              

                                                                                

27  mitigation banking agreement needed to permanently protect the              


                                                                                

1   preserved wetland area before department approval of the use of             

                                                                                

2   the credits.                                                                

                                                                                

3       (6) The department may audit a mitigation bank at any time to               

                                                                                

4   evaluate the status of the wetlands in the mitigation bank and to           

                                                                                

5   confirm the number of mitigation credits available.  The                    

                                                                                

6   department may inspect a mitigation bank at any reasonable time.            

                                                                                

7       Sec. 30312f.  (1) The department shall maintain a mitigation                

                                                                                

8   bank registry of established mitigation banks and approved                  

                                                                                

9   mitigation credits to track the generation and use of credits and           

                                                                                

10  to provide information to the public regarding the availability             

                                                                                

11  of credits.  The registry shall include all of the following                

                                                                                

12  information for each mitigation bank:                                       

                                                                                

13      (a) A general description of the mitigation bank.                           

                                                                                

14      (b) The total number of credits (acres) in the mitigation                   

                                                                                

15  bank, the number previously used to meet mitigation requirements,           

                                                                                

16  the number offered for sale by the mitigation bank sponsor, and             

                                                                                

17  the number sold.                                                            

                                                                                

18      (c) The number of acres of each major ecological type of                    

                                                                                

19  wetland.                                                                    

                                                                                

20      (d) The defined service area of the mitigation bank.                        

                                                                                

21      (e) The name and address of the mitigation bank sponsor.                    

                                                                                

22      (f) The date of mitigation bank establishment by the                        

                                                                                

23  mitigation banking agreement, and the date of approval of                   

                                                                                

24  mitigation credits.                                                         

                                                                                

25      (g) An identification code.                                                 

                                                                                

26      (2) Within 60 days of the sale of approved mitigation bank                  

                                                                                

27  credits, the bank sponsor shall report the sale and the per                 


                                                                                

1   credit sale price to the department.  The sale price shall not be           

                                                                                

2   included in the mitigation bank registry.                                   

                                                                                

3       (3) The department shall list approved mitigation credits in                

                                                                                

4   the mitigation bank registry.  Inclusion of uplands in mitigation           

                                                                                

5   bank plans is encouraged and may be essential to fully meet                 

                                                                                

6   functional goals.  However, uplands will not be included in the             

                                                                                

7   mitigation credits available in the bank, except as provided in             

                                                                                

8   section 30312h.                                                             

                                                                                

9       (4) All information contained in the mitigation bank registry               

                                                                                

10  shall be readily available to the public.                                   

                                                                                

11      Sec. 30312g.  (1) A mitigation bank sponsor shall assure,                   

                                                                                

12  through legally binding instruments, including leases, contracts,           

                                                                                

13  deed restrictions, or conservation easements, that the mitigation           

                                                                                

14  bank shall be maintained in perpetuity.  Restrictive covenants              

                                                                                

15  that provide for long-term management shall be included in any              

                                                                                

16  lease, sale, or other conversion and shall run with the                     

                                                                                

17  property.                                                                   

                                                                                

18      (2) Long-term management is the responsibility of the                       

                                                                                

19  mitigation bank sponsor and shall include site maintenance,                 

                                                                                

20  monitoring of wetland conditions, remedial action needed to fully           

                                                                                

21  establish and maintain wetland characteristics in accordance with           

                                                                                

22  permit requirements, and notification of subsequent owners of               

                                                                                

23  limitations on the property.  The bank sponsor shall submit a               

                                                                                

24  long-term management plan as part of the mitigation banking                 

                                                                                

25  agreement.  Responsibility for the long-term management of a                

                                                                                

26  mitigation bank may be transferred through the sale or lease of             

                                                                                

27  the property or through an agreement with another person if the             


                                                                                

1   department approves of the transfer and if the mitigation banking           

                                                                                

2   agreement is amended accordingly.                                           

                                                                                

3       (3) A mitigation bank sponsor may enter into a legal                        

                                                                                

4   agreement with a state or local agency or a nonprofit resource              

                                                                                

5   management organization to manage the mitigation bank for a                 

                                                                                

6   particular purpose as defined in the mitigation banking                     

                                                                                

7   agreement.  An authorized official of the agency or organization            

                                                                                

8   shall sign the mitigation banking agreement.                                

                                                                                

9       (4) Before the use of any credits from an approved mitigation               

                                                                                

10  bank, the mitigation bank sponsor shall provide financial                   

                                                                                

11  assurances in the form of a performance bond, irrevocable letter            

                                                                                

12  of credit, or equivalent legal instrument that is sufficient to             

                                                                                

13  guarantee that mitigation bank establishment, monitoring, and, if           

                                                                                

14  necessary, remedial action will be carried out in accordance with           

                                                                                

15  the mitigation banking agreement.  The mitigation banking                   

                                                                                

16  agreement shall define the form and amount of the financial                 

                                                                                

17  assurance to be provided and shall also define the temporal                 

                                                                                

18  limits on the financial assurances tied to the achievement of               

                                                                                

19  performance standards that define the establishment of a fully              

                                                                                

20  functional, self-sustaining wetland.  If the wetland by design is           

                                                                                

21  not self-sustaining, because maintenance is required for dikes,             

                                                                                

22  dams, water control structures, or other components essential to            

                                                                                

23  the preservation of functional wetlands on the site, the bank               

                                                                                

24  sponsor shall make financial provisions for perpetual management            

                                                                                

25  and maintenance.  A state agency that sponsors a mitigation bank            

                                                                                

26  may enter into a formal interagency agreement with the department           

                                                                                

27  to guarantee long-term protection and management of the                     


                                                                                

1   mitigation bank instead of providing financial assurances.                  

                                                                                

2       Sec. 30312h.  (1) The department may, in cooperation with                   

                                                                                

3   the department of natural resources, designate priority wetland             

                                                                                

4   restoration areas in large former wetland complexes which have              

                                                                                

5   been impacted by significant historic loss or degradation of                

                                                                                

6   wetlands and which have a high potential for successful wetland             

                                                                                

7   restoration.  Areas so designated may include either public or              

                                                                                

8   private lands, but must have the potential to provide the public            

                                                                                

9   with vital wetland functions after ecologically sensitive                   

                                                                                

10  restoration of wetland areas.                                               

                                                                                

11      (2) The department shall develop a management plan for each                 

                                                                                

12  priority wetland restoration area and shall consider the concerns           

                                                                                

13  of the department of natural resources and the potential of the             

                                                                                

14  area to provide critical wetland for any of the following:                  

                                                                                

15      (a) Habitat.                                                                

                                                                                

16      (b) Wildlife and fish production.                                           

                                                                                

17      (c) Flood control.                                                          

                                                                                

18      (d) Water quality protection.                                               

                                                                                

19      (e) Groundwater recharge.                                                   

                                                                                

20      (f) Recreation.                                                             

                                                                                

21      (3) Priority wetland restoration area management plans that                 

                                                                                

22  impact lands administered by the department of natural resources            

                                                                                

23  are subject to the approval of the department of natural                    

                                                                                

24  resources.                                                                  

                                                                                

25      (4) The department may enter into partnerships with other                   

                                                                                

26  state agencies, local units of government, or private parties to            

                                                                                

27  promote the restoration and protection of wetlands within a                 


                                                                                

1   priority wetland restoration area in accordance with the                    

                                                                                

2   management plan.  The department may provide funding or in-kind             

                                                                                

3   services to the partnership to support the management plan.                 

                                                                                

4       (5) Any person may establish a mitigation bank within a                     

                                                                                

5   priority wetland restoration area.  All of the general                      

                                                                                

6   requirements that apply to mitigation banks apply to mitigation             

                                                                                

7   banks established in priority areas, subject to subsections (6)             

                                                                                

8   and (7).  The department may assist in the establishment of a               

                                                                                

9   mitigation bank by identifying state lands suitable for use in              

                                                                                

10  the mitigation bank or by providing technical assistance.                   

                                                                                

11      (6) The department may establish a mitigation bank within a                 

                                                                                

12  priority wetland restoration area if a mitigation bank is not               

                                                                                

13  established by other parties within 1 year after designation of             

                                                                                

14  the priority wetland restoration area or if existing banks do not           

                                                                                

15  provide adequate capacity or wetland functions.                             

                                                                                

16      (7) A mitigation bank established within a priority wetland                 

                                                                                

17  restoration area may utilize 1 or more of the following                     

                                                                                

18  incentives if approved by the department in the mitigation                  

                                                                                

19  banking agreement:                                                          

                                                                                

20      (a) Up to 15% of planned wetland credits may be used before                 

                                                                                

21  the establishment of wetland conditions if the department has               

                                                                                

22  approved the site plan and signed the mitigation banking                    

                                                                                

23  agreement, the bank sponsor has obtained all state and local                

                                                                                

24  permits and approvals required for construction of the mitigation           

                                                                                

25  bank, and the bank sponsor has provided adequate financial                  

                                                                                

26  assurances to ensure the timely establishment of wetland                    

                                                                                

27  functions.                                                                  


                                                                                

1       (b) The department may approve partial mitigation credit for                

                                                                                

2   uplands within the priority wetland restoration area mitigation             

                                                                                

3   bank that are vital to the successful functioning of wetlands in            

                                                                                

4   the mitigation bank.  The condition of these uplands shall be               

                                                                                

5   protected under a conservation easement or equivalent                       

                                                                                

6   instrument.  The mitigation banking agreement shall specify the             

                                                                                

7   credit received for uplands based on the extent to which the                

                                                                                

8   uplands directly enhance or maintain the integrity of the aquatic           

                                                                                

9   ecosystem, but not more than 0.5 credits shall be authorized for            

                                                                                

10  each acre of upland.  Not more than 10% of the total acreage for            

                                                                                

11  which mitigation credit is given in a mitigation bank shall be              

                                                                                

12  upland.                                                                     

                                                                                

13      (c) The department may approve mitigation credit for the                    

                                                                                

14  preservation of certain existing wetlands which provide                     

                                                                                

15  exceptional functions or which represent rare wetland types, such           

                                                                                

16  as lakeplain wet prairie.  Not more than 25% of the wetland                 

                                                                                

17  acreage approved in a priority wetland restoration area                     

                                                                                

18  mitigation bank shall be for the preservation of existing                   

                                                                                

19  wetlands.