Wetland mitigation banking offers a promising solution to compensate for the loss of wetlands due to activities like municipal construction, private development, or agriculture. By restoring, creating, or enhancing wetland areas, these mitigation banks provide credits that developers can purchase to offset the environmental impacts of their projects. Instead of individually restoring wetlands for each project—a costly and complex task—developers can buy credits from established banks, streamlining the process and meeting environmental regulations more efficiently.
For investors, mitigation banking can be a lucrative venture. Once a mitigation bank is established, it offers a long-term revenue stream as credits can be sold over several years or even decades. Credit values are influenced by various factors, including development pressure, wetland type, and maintenance requirements, making it a flexible investment option with considerable financial potential.
What are my options?
In Wisconsin, two main options are available for those interested in creating a mitigation bank, traditional compensatory mitigation banks or agricultural mitigation banks:
Traditional compensatory mitigation banks offset impacts from general development.
Agricultural mitigation banks focus on impacts from farming activities approved by the USDA’s Natural Resources Conservation Service (NRCS).
Buyers of wetland credits in Wisconsin have three choices: compensatory mitigation banks, agricultural mitigation banks, or the in-lieu fee option. In cases where no banks are available in the impacted area, buyers can opt for in-lieu fee credits, which have pre-determined costs based on the region and wetland type.
Case Study
At Ruekert & Mielke, Inc., we’re helping establish an agricultural mitigation bank in southeast Wisconsin. Our ecological team secured approval from the Wisconsin Agricultural Mitigation Bank (WAMB) program to restore approximately 17 acres of wetland in a former agricultural field. This project involves removing drain tiles, creating shallow scrapes, and building berms to meet the required performance standards. With credit values estimated between $15,000 and $20,000, the bank could generate up to $340,000, providing our client with a direct profit thanks to NRCS grant funding that covers all project costs.
If you’re considering establishing a wetland mitigation bank or need assistance with mitigation requirements, contact the Ruekert & Mielke, Inc. Environmental Team for guidance. Wetland mitigation banking not only aids in preserving essential ecosystems but also offers substantial financial benefits for those involved.
R/M Can Help
Contact one of our experts today to help with mitigation banking!
About the Author
Theran Stautz, PWS
Senior Ecologist, Assured Wetland Delineator
Theran is a Professional Wetland Scientist and WDNR Assured Wetland Delineator with nearly 20 years of experience in wetland ecology, forest ecology, and ecological restoration. His wetland and permitting projects include commercial and municipal improvements, roads, energy and utility lines, and parks/trails. He routinely evaluates sites for wetlands and threatened and endangered species. He then provides guidance related to expected permitting requirements.