Beating Around the Bush
Bilking the Bank

Bush administration scheme allows developers to undermine national no-net-loss wetlands policy

The Bush administration has proposed a new federal rule that allows developers to buy credits from mitigation banking companies to compensate for wetlands and streams they destroy. This policy encourages the trading of waterways where nature put them, for wetlands or streams wherever the banker is selling.

Under long-standing federal law, developers may not destroy wetlands or streams unless they replace or enhance them. Banking was originally set up to help implement the long-standing national policy of no-net-loss of wetlands – meaning no wetlands will be destroyed without an equal amount created or restored. Wetlands mitigation banking allows developers to outsource watershed protection, buying into a reserve to offset the wetlands they have destroyed.

The administration’s scheme expands the controversial use of mitigation banking to include streams. Evidence shows that mitigation banks do not replace wetland values and functions where they are most needed. Banking redistributes healthy wetlands and streams from urban areas to rural ones, leaving city dwellers with diminished water filtration, erosion protection, wildlife habitat and flood control.

The administration is now accepting public comments through June 30. Waterkeeper Alliance and our partners will submit detailed comments, which we expect EPA and the Corps of Engineers to strongly consider before they issue the final regulation.