CREDIT ACCOUNTING. MARS seeks to achieve a net gain in ecological functions through mitigation actions within each Service Area through its Statewide ILF mitigation program. At a minimum the program must achieve no net loss of aquatic ecological function in a watershed context. Through its ILF program, MARS seeks to balance objectives of no net loss for each wetland and stream type through a watershed approach that may emphasize restoration or preservation of certain aquatic types or functions that differ from types or functions impacted by permitted actions. In order to track the balance of gains and impacts, XXXX will establish credit accounting that records impacts from permitted actions and lift from compensatory mitigation projects according to wetland and stream type. MARS will use Corps’ established Montana wetlands and stream mitigation procedures (Exhibit C) as the basis for maintaining a credit ledger of debits from permitted actions and credits generated from mitigation actions, unless other appropriate means for measuring credits are mutually agreed on by the Corps and MARS for specific compensatory mitigation projects. XXXX will be responsible for taking the following steps to ensure functional losses are mitigated through implementation of projects that achieve equivalent or greater functional gains within each Service Area:
CREDIT ACCOUNTING. A. Advance Credits Upon the Program Establishment Date, Program Sponsor is permitted to Transfer fifty (50) Advance Credits. The number of Advance Credits that are approved for Transfer was developed in coordination with the USACE and IRT and is based on (1) the percentage of the projected mitigation opportunities within the Service Area as outlined in the compensation planning framework in Exhibit A, (2) the Program Sponsor’s past performance for implementing Enhancement, Restoration, Establishment, and/or Preservation activities within the Service Area, and (3) the projected financing necessary to begin planning and implementation of ILF Projects. No more than 25%, or 12.5 Advance Credits, may be Transferred and later fulfilled as Preservation Credits. At least 75% of the Advance Credits must be fulfilled as Establishment, Enhancement, Buffer and/or Restoration Credits. Once the Program Sponsor has sold all of its Advance Credits, no more Advance Credits may be sold until an equivalent number of Credits has been released in accordance with the approved Credit Release schedule outlined in an ILF Project-specific Development Plan. Once all Advance Credits are fulfilled, an equivalent number of Advance Credits may be made available for Transfer, at the discretion of the USACE and IRT. Program Sponsor shall complete land acquisition and initial physical and biological improvements by the third full growing season after the Transfer of Advance Credits. If Program Sponsor fails to meet these deadlines, the USACE must either make a determination that more time is needed to plan and implement an ILF project or, if doing so would not be in the RCRCD In-Lieu Fee Program public interest, direct the Program Sponsor to disburse funds from the Program Account to provide alternative Compensatory Mitigation to fulfill those compensation obligations.
CREDIT ACCOUNTING
