The Stress of Working with Public Agencies

Recent data released by the National Environmental Banking Association reveals that years of extended slow-downs in Mitigation Banking Instrument (MBI) approvals has resulted in fewer and fewer banks being approved each year (by nearly 50% year-after-year) and a significant MBI processing backlog at the U.S. Army Corps (419 banks today awaiting approval).

A reader at our website last week thanked NEBA for highlighting this industry-wide problem which they too had experienced, and went on to say: "Our (mitigation bank) project is currently active, but winding down.   Although we would like to do another restoration project, the stress of working with the state and federal agencies is prohibitive."

Many in our industry continue to ask why the permitting process must be made so onerous for these environmentally-beneficial projects. Why is the mitigation banking community not recognized for putting decades of private investment at risk in solving some of the most challenging environmental problems facing our Nation? Why does the MBI approval process and/or mitigation credit release process often feel like a 'fight'?

Given their long record of success, mitigation bank credits have rightly been prioritized, beginning with the 2008 Mitigation Rule and recently confirmed by the Energy and Water Development Appropriations Act, for offset of unavoidable environmental impacts – this owing to banking’s high standards and proven performance. This begs the simple question – why all the delay, confusion, and obstruction?

As the U.S. Congress addresses a growing list of priorities this fall, NEBA has little doubt that it may well call on the U.S. Army Corps and its leadership to refocus their energies and attention on the approvals of mitigation banks (and the timely release of mitigation bank credits).