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Indiana Stream and Wetland
Mitigation Program (IN SWMP)
Indiana’s In-Lieu Fee Mitigation Program
June 2017
Kankakee
Middle Wabash
Upper White
Whitewater-East Fork White
Lower White
Upper Ohio
Ohio-Wabash Lowlands
Calumet-Dunes St. Joseph River
Maumee
Upper Wabash
±
Indiana Stream and Wetland Mitigation ProgramService Areas
IN SWMP Service Areas:
Calumet-Dunes
St. Joseph River
Maumee
Upper Wabash
Kankakee
Middle Wabash
Upper White
Whitewater-East Fork White
Lower White
Upper Ohio
Ohio-Wabash Lowlands
Permits the Program will sell credits for:
• Army Corps of Engineers – regulations under:– Section 10 Harbors Act
– Section 404 of Clean Water Act (CWA)
• Indiana Dept of Environmental Management –regulations under: – Section 401 Water Quality Certifications (CWA)
– Indiana Isolated Wetlands Law
• Indiana DNR Division of Water: – For construction in a floodway, public freshwater lake
or navigable waterway
Compensatory Mitigation
• Compensatory mitigation means the restoration, establishment, enhancement, and/or in certain circumstances preservation of aquatic resources for the purposes of offsetting unavoidable adverse impacts which remain after all appropriate and practicable avoidance and minimization has been achieved. – 3 types of mitigation are allowable:
(1) Mitigation Bank credits,
(2) In-Lieu Fee Program credits, and
(3) Permittee-Responsible Mitigation/Restoration project
Compensatory Mitigation and Permitting Process
Proposed Compensatory
Mitigation
1. Mitigation Bank Credits2. In-Lieu Fee Credits3. Permittee Responsible
MitigationRatio
Proposed Impact
Avoid
Minimize
Permitted Impact
Perm
it D
ecis
ion
Co
mp
en
sato
ry M
itig
atio
n P
lan
What is “in-lieu fee” mitigation?
• Permittee provides funds to an in-lieu-fee (ILF) sponsor (must be a public agency or non-profit natural resource organization).
• Typically sponsor collects funds from multiple permittees and pools the financial resources.
• Sponsor builds and maintains a larger mitigation project than permittee-responsible mitigation projects.
• MUST FOLLOW 2008 Federal Mitigation Rule
In-Lieu Fee Mitigation
• In-lieu fee program: restoration, establishment, enhancement, and/or preservation of aquatic resources through funds paid to a governmental or nongovernmental natural resource management organization.
• Permittee purchases credits from ILF sponsor
• Sponsor builds and maintains larger mitigation projects than permittee-responsible mitigation projects after impacts are authorized.– MUST FOLLOW 2008 Federal Mitigation Rule
Indiana Stream & Wetland Mitigation Program • Reduce Public’s Regulatory Burden
• Finding suitable mitigation sites
• 11 Watershed-Based Service Areas
• Consolidate Mitigation • Gain Efficiencies
– Consolidate w/other conservation• Increase Ecological Significance• Prioritization of potential projects per
CPF
Mitigation Project Selection: Compensation Planning Framework
Mitigation Project Selection: Compensation Planning Framework
• CPF includes a “Statewide Prioritization Strategy” for project selection1) Must Replace Lost Functions & Services
2) Re-establishment / Rehabilitation / Establishment / Enhancement / Preservation.
3) Within or Adjacent to Other Priority Conservation Areas
4) Address identified threats within the watershed/SA
• Each Service Area has more specific priorities
• All projects will require real estate restrictions
IN SWMP Mitigation Projects
Sponsor/DNR will identify several potential mitigation projects for advance credits sold
*Corps Letter of Permission Process* 1. Develop/submit a Conceptual Project Plan & JD
– Corps & IRT review & approval
2. Develop/submit a Mitigation Project Plan & Design– Corps & IRT review, approval; Permits acquired
3. Construction of project4. Monitoring & Maintenance 2008 Mitigation Rule
Each Mitigation Plan is an amendment to the Instrument
Accountability
• ILF Projects must have
same accountability as a mitigation bank
• All proposed projects are public noticed by the Corps (Lead District for given project)
• Submit annual program reports and project specific performance monitoring reports
Program Management
• Indiana DNR is the Program Sponsor
• Sponsorship entails:
– Identification of projects
–Project planning & approval
–Contracts for construction
–Credit sales and tracking of credits
–Regular reporting to the Corps• Formal annual reports & informal monthly updates
Program Management
• Indiana NRF to serve as the Fiscal Agent –Deposits / Expenditures
– Tracking all funds
– Federal rule requires funds be used only for the ILF program projects (up to 15% for administrative costs are allowable)
–May require hiring an accountant
• Fits into the Foundation’s mission
Credit Sales
Developer Wants To Use Credits
See if Credits are Available in USACE
RIBITS
Contact DNR IN SWMP to confirm credit availability
Permit Application
Mitigation Plan
ILF Credits
AvoidMinimize
Mitigation Reqmt
Contingent Permit Approval
Developer Purchases Credits
DNR Issues Credit Sale Letter
Final Permit Developer Submits Credit Sale Letter
Mitigation Fulfilled
Program Management
Indiana DNR
Program Administration, Tracking & Reporting
Credit
Sales
IN NRF
Fiscal Agent
Mitigation
Projects
Planning/ Approval
RestorationMonitoring/
Reporting
Indiana DNR / Consultants
Admin
Fee
Project
Funds
Credit Sales
• In-lieu fee programs sell “Advance Credits”– Each service area will have a specific allotment of
advance wetland and stream credits available
• ILF projects will generate Released Credits to fulfill Advance Credits that have been sold
• 2008 Mitigation Rule allows 3 growing seasons after credit sale for construction to begin
Requested Advance Credit Allocation
• Subject to approval by the Corps & IRT…
• Wetland Credits:
– 75 wetland credits in most of the service areas
– 85 and 100 credits in 2 of the 11 service areas
• Calumet-Dunes and Upper White respectively
• Stream Credits:
– 37,500 in most service areas
– Upper White service area; DNR requesting 50,000
Credit Price Components
Project Component Wetland Stream
Land Acquisition/Protection 20-50% 20-35%
Engineering Design/Project Management 1-5% 1-5%
Financial Assurances 1-5% 1-5%
Construction 10-20% 25-40%
Monitoring / Adaptive Mgm’t 3-15% 2-10%
Long Term Management 15% 15%
Contingencies 5-10% 5-10%
IN SWMP Administration Fee 15% 15%
DRAFT Credit Pricing• Pricing is dependent upon anticipated
mitigation required within that service area based upon 2009-2015 USACE mitigation data.
Service Area Stream Credit Price Wetland Credit Price
Calumet-Dunes $500 $65,000
St. Joseph River (Lake MI) $600 $105,000
Maumee $400 $65,000
Kankakee $450 $80,000
Upper Wabash $400 $65,000
Middle Wabash $400 $80,000
Upper White $450 $65,000
Whitewater-East Fork White $350 $65,000
Lower White $400 $65,000
Upper Ohio $350 $65,000
Ohio-Wabash Lowlands $350 $65,000
IN SWMP & Partnerships
• IN SWMP will be looking to partner with other conservation programs/funding sources
• IN SWMP Program/Project Restrictions– Not likely on lands acquired with federal $$$
– All projects will require real estate restrictions
– Legal Drains will be tricky…
• Ownership of IN SWMP projects
– DNR, land trusts, local govt parks dept.
– Long-term maintenance funding post-release
Considerations: • ALL mitigation projects will require Corps and IRT
review and approval
• ILF portion of a larger conservation project will have to be clearly defined and delineated from portions funded with other funding sources
• Restrictions on use during establishment and monitoring period
• “Preservation alone will likely be infrequent”
– Priority in Calumet-Dunes SA
– Must meet conditions as required in 2008 rule
Contractors & ILF
• DNR will conduct site selection
• IDOA Division of Public Works – Pre-certification required through IDOA PW
– Category: Wetland, Stream and Upland Restoration and Mitigation
• DNR will likely have on-call contractors– Wetland delineations?
– Land appraisals & surveys?
– Maintenance?
– Other to be determined…
IDNR DIVISION OF WATER PERMITS
•Construction in a Floodway – Flood Control Act (IC 14-28-1)
•Construction on a Public Freshwater Lake – Lake Preservation Act
(IC 14-26-2)
•Construction in a Navigable Waterway – Navigable Waterways Act
(IC 14-29-4)
DNR ILF Rules• The Natural Resources Commission formally
adopted 312 IAC 9.5 on July 15, 2014.
• Rule establishes an option for an in-lieu fee to mitigate for adverse impacts to fish, wildlife and botanical resources for construction in a floodway, public freshwater lake or navigable waterway
– DNR permit staff will determine appropriateness of proposed mitigation
• Gives applicants a third option for mitigation
DNR ILF Program Policy
• Non-rule policy is under development by DNR– Site specificity consideration
• Being developed in parallel with the in-lieu fee program for Section 404 and 401 permits– Funds will be kept separate
• Will include credit pricing and fee structure– Will account for full costs of mitigation project
Any Questions?
Carl Wodrich Director of Ecological Services
Indiana Department of Natural ResourcesDivision of Land Acquisition
317-232-1291cwodrich@dnr.IN.gov
IN SWMP Mitigation Specialists: Brad Baldwin (North) – 317-234-9702 bbaldwin@dnr.IN.gov
David Carr (South) – 317-234-9703 dcarr@dnr.IN.gov
http://www.in.gov/dnr/heritage/8340.htm
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