- Habitat Conservation Plans (HCPs)
- Safe Harbor Agreements
- Candidate Conservation Agreements
- Candidate Conservation Agreements with Assurances
- Recovery Credits
- Conservation Banking
- Conservation Plans Database
- Information, Planning and Consultation System (IPaC)
- Recovery Online Activity Reporting System (ROAR)
For Landowners | Conservation Banking | Frequently Asked Questions
Who benefits?
A conservation bank is a market enterprise that offers landowners incentives to protect habitats of listed species, candidates, and other species-at-
risk. Landowners can profit from selling habitat or species credits to parties who need to compensate for adverse impacts to these species. Landowners can generate income, keep large parcels of land intact, and possibly reduce their taxes.
Developers and others whose activities result in adverse environmental impacts typically are required to compensate for such impacts. Providing compensatory habitat off-site is often the best solution. However, it can be difficult for individual project proponents to locate appropriate lands and costly to restore, protect, and provide for the long-term management of these lands. Conservation banks provide a simple, economical alternative for developers and other project proponents. A one-time purchase of credits saves developers time and money and provides regulatory certainty.
Conservation banking benefits species by establishing large reserves that function as compensatory mitigation areas for multiple projects. It costs less per acre to manage a conservation bank than the equivalent acreage divided among many small isolated mitigation sites. Larger reserves are more likely to ensure ecosystem functions, foster biodiversity, and provide opportunities for linking existing habitat. In coordination with other tools, this collaborative, incentive-based approach to conservation may aid in the recovery of listed species.
Conservation banking also benefits the public by protecting open space and contributing environmental services such as nutrient recycling, pollination services, and climate regulation.
Conservation banking works best in concert with regional conservation planning where the community is involved in determining which areas are conserved and which are developed to achieve a healthy environment and economy.
What lands are eligible?
Private, Tribal, State and local government lands are eligible to become conservation banks. Federal lands may require special consideration concerning applicability of the lands for mitigation purposes and review and approval by the Service for consistency with other regulations and policies. Generally, lands previously designated for conservation purposes through another program are not eligible unless designation as a bank provides an additional conservation benefit to the species. Before the Service can approve a conservation bank, landowners are required to:
- enter into a Conservation Banking Agreement with the Service;
- grant a conservation easement to an eligible third party, precluding future development of the property and restricting certain land uses;
- develop a long-term management plan for the conservation bank; and
- provide funding for monitoring and long-term management of the conservation bank.
In return, the Service approves landowners to sell a specified number of credits to project proponents requiring mitigation for species that occur on the conservation bank and are within the bank's designated service area.
What is a conservation easement?
A conservation easement is a legal contract between the landowner (grantor) and the easement holder (grantee) in which the landowner gives up certain development rights and agrees to certain restrictions on the property. Public agencies, land trusts, and other nonprofit conservation organizations are typical
groups that States authorize to hold conservation easements. Restrictions on the property may include a reduction in the number of livestock that may be grazed, prohibition of recreational off-road vehicle use, or prohibition of construction of new roads and buildings. Any activities inconsistent with the purposes of the conservation bank are restricted under the easement. Because perpetual conservation easements are binding on future owners, the resource values of these properties are protected in perpetuity. Many States and local governments offer tax benefits associated with this type of property encumbrance.
What is a management plan?
A management plan identifies tasks for operating and maintaining a bank site as well as methods for monitoring and maintaining desired habitats for species. A management plan may include removing trash on a regular basis, mending and replacing fencing, monitoring the listed species or habitat conditions, controlling invasive species that interfere with the naturally functioning ecosystem, conducting prescribed burns, and other activities to maintain the habitat. A management plan is long-term, requires careful development, and should take into account any foreseeable changes that may affect property management. A management plan should be as specific as possible, but flexible enough to allow changes in management practices in response to monitoring results.
How is management funded?
Most often an endowment is established to fund the long-term management of the conservation bank. The endowment is an interest-bearing account in an amount sufficient to generate enough yearly income to fund the annual management of the conservation bank. Since only the interest is available for use and the principal is not withdrawn, the endowment is “non-wasting,” providing a perpetual source of funding for management of the conservation bank. The endowment may be funded in full at the time of conservation bank approval or in increments, but should be fully funded within five years.
What are credits?
Credits are units on the conservation bank representing listed species, candidates, and other species-at-risk, or habitat for those species. A credit may be equivalent to:
- an acre of habitat for a particular species;
- the amount of habitat required to support a breeding pair;
- a wetland unit along with its supporting uplands; or
- some other measure of habitat or its value to the listed species.
Methods of determining available credits may rely on ranking or weighting of habitats based on habitat condition, size of the parcel, or other factors.
What is a service area?
The service area for a conservation bank is the area outside the bank property within which the bank owner may sell credits. The Service determines service areas for conservation banks based on physical and ecological attributes such as watersheds, soil types, species recovery units, and/or species and population distributions. Banks with more than one type of credit may have different service areas designated for different credit types.
What projects are eligible?
Only projects that would otherwise be permitted and are suitable for off-site mitigation may use conservation banks. The species and habitats for which the
project proponent requires mitigation must be present at the conservation bank. Conservation banking is not a substitute for avoiding and minimizing effects on listed species on-site. The purpose of conservation banking is not to encourage development of listed species' habitats, but rather to provide an ecologically effective alternative to small on-site preserves which are not defensible.
Species
What We Do
For Landowners
- Habitat Conservation Plans (HCPs)
- Safe Harbor Agreements
- Candidate Conservation Agreements
- Candidate Conservation Agreements with Assurances
- Recovery Credits and Tax Deductions
- Conservation Banking
- Conservation Plans Database
- Information, Planning and Conservation System (IPaC)
- Recovery Online Activity Reporting System (ROAR)
Permits
Grants
News
- News Stories
- Featured Species
- Recovery Success Stories
- Endangered Species Bulletin
- Partnership Stories