What is Wetland Banking?

Wetland banking is a process of tracking wetland and upland buffer credits that are designated for replacement of future wetland losses. These wetland credits may result from a prior replacement project with excess credits earmarked for banking, or from a wetland creation/restoration project done solely for the purpose of establishing wetland credits in the State Wetland Bank. Wetland banking allows wetland acreage to be purchased from an account holder who has an account of functioning wetland credits.

Who Controls Wetland Banking?

Wetland banking must conform to the requirements in the Wetland Conservation Act (WCA). Refer to this document for a complete description of the wetland banking process. The LGUs control the banking program as they must approve banking project plans and certify all deposits and withdrawals to ensure the wetland impacts meet sequencing requirements. The Board of Water and Soil Resources (BWSR) will maintain a record of deposits and withdrawals and oversee banking operations statewide. The sale of the credits remains with the account holder.

The bank maintained by BWSR is the only officially recognized wetland bank in Minnesota.

How Can a Landowner or LGU Participate?

The rules in WCA outline in great detail the necessary components of a banking plan. A several page banking plan application that identifies all the requirements is available at the Anoka Conservation District (ACD) or the BWSR website. Application requirements include, but are not limited to, several maps, a topographic survey, design specifications drawn to scale, the size, type and location of banking wetlands, sworn statements of site history, ownership and responsibility, a site resource analysis, a description of the methods to be used, Best Management Practices (BMPs) to be incorporated, and a full five year monitoring plan. Private consultants will be able to assist in plan development. For a list of consultants please contact the ACD.

Principles of Wetland Banking

• Functional wetlands and buffers must result. Persons having expertise in site selection and construction should be involved while developing a banking plan.
• The restored or created wetland area must not be less than the wetland credits in the bank. This means that all wetland size and type determinations (before and after) should be done conservatively. If it turns out that more wetland was restored or created than proposed, the banking plan can be amended. Credits will be granted conservatively.
• The purchase of wetland banking credits must go through the same sequencing process as direct replacement. The wetland type may be different but ultimately the LGU must be satisfied that functions and values have been replaced and approve the purchase of credits.
• Wetland banking is allowed for any impact subject to the requirements of part 8420.0543 which emphasizes replacement as geographically close to the wetland impact as possible.
• A wetland cannot be restored for banking credit if it was previously drained or filled under an exemption. Excavations within existing wetlands do not qualify for banking credit.
• A perpetual conservation easement over the banked wetland is needed prior to deposit.
• The owner of the account must report the sale of the credits.

Deposits and Withdrawals for Anoka County Projects

Deposits

• Wetlands restored or created without prior LGU approval are not eligible for deposit in the bank.
• A proposal to deposit a wetland in the bank undergoes the same scrutiny as a proposal to directly replace a wetland.
• The wetland restoration/creation must be done specifically for wetland banking and /or direct replacement purposes.
• The Technical Evaluation Panel will review banking projects to ensure that necessary wetland characteristics have developed before recommending them eligible for deposit.
• To ensure that only functioning wetlands are deposited, created wetlands must be monitored for at least one year and restored wetlands must be monitored for at least six months before they may be deposited into the bank.
• There is no maximum or minimum wetland acreage eligible for deposit.
• The proposed wetland must be restored or created within two years of approval or the bank plan must be resubmitted.

Withdrawals

• When using the wetland bank to replace wetland impacts, a completed replacement plan must be submitted.
• The proposed wetland impact must be determined unavoidable according to the sequencing process.
• The price of the credits is negotiated between the buyer and seller.
• Wetland impacts shall not begin until the LGU formally approves the wetland replacement plan using the acknowledged wetland credits as replacement.
• Wetland credits may be transferred between accounts and held for future use or resale.

Steps to Establishing a
Wetland Banking Project

The WCA Rules contains all of the requirements for planning, approving, conducting and monitoring wetland banking projects. A synopsis of the steps is shown below:

• Select a feasible location for the wetland to be restored or created for banking.
  
• Secure property rights (e.g. purchase, permanent easement) subject to delineation.
  
• Delineate and classify any remnant or adjacent wetland areas.
  
• Determine approximate wetland size and type to be created or restored. The concept plan should take into account the original landscape, soils, and hydrology of the site.
  
• Request that the Technical Evaluation Panel (TEP) review the delineation and concept plan to offer recommendations and ensure WCA compliance.
  
• Develop specific construction and maintenance plans for the project addressing the data items required in the WCA Rule. For restorations, refer to the "Native Vegetation in Restored and Created Wetlands" guide for site selection, design and construction recommendations.
  
• Distribute the banking plan for public notice and comment.
  
• Modify the plan if necessary based on pubic review and comment.
  
• The LGU reviews the plan and either approves, approves with conditions or rejects the proposal.
  
• If approved, complete the structural work, grading, and seeding as per the final plan.
  
• Have the LGU certify that the construction conforms with the approved project plans.
  
• After the required waiting period and after the wetland is functional, have the TEP determine the resultant wetland type and size. The TEP will determine the amount of new and public value wetland credits available for deposit.
  
• Complete the deposit form and have the LGU send it to BWSR for deposit of wetland credits in the state wetland bank.
  
• Wetland credits may be transferred between accounts and held for future use or resale.