1. Compensatory Mitigation Rule: Corps/EPA Notice of Proposed Rulemaking Regulatory Branch U.S. Army Corps of Engineers Office of Wetlands, Oceans and Watersheds U.S. Environmental Protection Agency October 2006

2. Overview Status of compensation Rule drivers and timeline Rule outline Key changes in practice Next steps

3. Type of Compensation Permittee-responsible mitigation (PRM) Third-party mitigation –Mitigation Banks –In-lieu fee (ILF) (USACOE, 2006)

4. Rule Drivers and Timeline 2001 NRC report on compensation 2002 Initiation of Mitigation Action Plan Defense Authorization Act for 2004 Timeline: –1/05 – 12/05– Corps/EPA coordination –12/5/05-3/10/06 – OMB review –3/28/06 – Federal Register publication –6/30/06 – Comment period closed

5. Supporting Materials Primary sources used in drafting: –2002 Mitigation RGL –2000 ILF Guidance –1995 Banking Guidance –1990 Army/EPA Mitigation MOA –2001 NRC Report, others –2003/2004 MAP work-productions and stakeholder input

6. Rule Outline 1.Purpose and general considerations 2.Definitions 3.General requirements 4.Planning and documentation 5.Ecological performance standards 6.Monitoring 7.Management 8.Mitigation banks 9.In-lieu fee mitigation

7. Changes: 3 rd Party Compensation Grandfathers existing banks –Instrument modification will trigger compliance with new requirements In-lieu Fee mitigation –Suspension of new authorizations –Existing ILFs: 5-yr transition period Preamble solicits comment on: –Impacts of and alternatives to ILF phase- out

8. Changes: Public Notice Individual permits - –…the public notice for the proposed activity must explain how impacts associated with the proposed activity are to be avoided, minimized, and compensated for. §332.4/230.94 Mitigation banks – –All proposed banks to receive public notice and comment

9. Changes: Contents of Mitigation Plans 1.Project objectives 2.Site selection factors 3.Site protection instrument 4.Baseline information (at impact site and compensation site) 5.Credit determination methodology 6.Work plan 7.Maintenance plan 8.Performance standards 9.Monitoring requirements 10.Long-term management plan 11.Adaptive management plan 12.Financial assurances

10. Additionally for Banks… Prospectus and draft and final instruments must include: 1.Service area 2.Credit release schedule 3.Accounting procedures 4.Transfer of liability for site success 5.Default and closure provisions Rule includes timelines for bank review and dispute resolution

13. Next Steps Process/post public comments –~12,100 total comment letters –~900 unique comment letters Analyze public comments –Draft comment response Implementation –MBRT/IRT Academy

14. Questions Compensatory Mitigation Website: –http://www.epa.gov/wetlandsmitigation/http://www.epa.gov/wetlandsmitigation/ Federal Docket –http://www.regulations.govhttp://www.regulations.gov Contacts: –Corps HQ: David Olson David.B.Olson@HQ02.USACE.ARMY.MIL David.B.Olson@HQ02.USACE.ARMY.MIL –EPA HQ: Palmer Hough Hough.palmer@epa.gov