$800,000+/tidal wetland credit for Naval base expansion

See on Scoop.itNature + Economics

I guess you pay a lot for mitigation when you’re building an explosives handling wharf. The Navy is building a new wharf in Hood Canal at their Kitsap-Bangor base (about 30 miles NW of Seattle, WA) which will overlay 6.3 acres of water. The cost of each ILF credit? $835,034, coming to a total of over $6 million. I would love to see this check:

Link for this mighty sales receipt.

Cost of building the new explosives handling wharf: $715 million
Cost of compensatory mitigation: $6.9 million
Mitigation cost as percent of total: <1%

The Hood Canal Coordinating Council In Lieu Fee Compensatory Mitigation Program (ILF) created in part to mitigate for this Naval base wharf expansion. The Council that sponsored the ILF is made up of 3 counties and two tribes. The ILF seems to have ruffled feathers with one county commissioner, who was surprised to find the ILF managers had already been in talks with the state department of transportation without the County Commissioner’s knowledge.

This article does a great job of explaining the ILF’s debit/credit methodology in plain language:

“On the debit side, the process begins with an estimate of the amount of habitat affected. For example, the damage from the wharf pilings alone was calculated to be .15 acre. Where the wharf casts a shadow on relatively shallow water, effects on eelgrass, kelp and other underwater plants are calculated at the full area of coverage, or about 0.25 acre.
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After acreage is calculated for each habitat type, the totals are multiplied by factors for impact and risk. Areas with partial shading, for example, are considered to have a lower impact than full shading. Risk relates to the ability to replace the lost habitat, based on experience and the types of plants and animals being displaced. Eelgrass, for example, has proved difficult to grow in new areas, so those areas get a higher risk factor.

For the Navy’s wharf, the greatest number of debits (2.44) were accumulated on the terrestrial edge of the shoreline, followed by 2.0 debits for subtidal vegetated areas, 1.8 for subtidal nonvegetated areas, 1.51 for nonvegetated beach areas, and so on.”

In related Washington state news, Naval Station Everett just spent $317,000 for compensatory mitigation of a $2.5 million small craft launch dock. The Everett base is about 40 miles (as the car drives) northeast across Puget Sound from the above-mentioned Kitsap-Bangor base.

UK Conservation Credits Prices

Hat tip to Ecosystem Marketplace’s Mitigation Mail

“The Environment Bank and Mission Markets have partnered on a new biodiversity credit trading platform for the UK. The Conservation Credits Exchange already has five proposed projects listed. Trades are expected in as little as a few weeks, as soon as local regulatory authorities give offset credits the go-ahead. Credits representing a hectare of habitat restoration are expected to sell for somewhere in the range of £30,000-40,000 ($47,000-63,000).

– Read more at CSRWire.”

Shabbington Woods and Meadows is one of the ‘offerings‘ on the MissionMarkets trading platform. Photo by net_efekt.

Prices of Environmental Markets Credits in Maryland

You don’t hear much happening in Maryland in terms of environmental markets, even though the state is located in the over-researched Chesapeake Bay. That had the governor scratching his head, so over the last couple years Maryland’s Governor O’Malley put together an Ecosystem Services Working Group. The group released their final report in October 2011, and it contains a good handful of ecosystem service credit prices. Here are a few of the gems:

  • Wetland in-lieu fee prices (set by individual counties) range  from $11,100-$58,000 per acre
  • Forest bank prices (under MD’s state Forest Conservation Act, or FCA) range from $2,000-$21,000 per acre; forest in-lieu fee prices (set by individual counties)  range from $0.40-$0.90 per square foot (or $17,424-$39,204/acre)
  • A sold-out conservation bank for Delmarva Fox Squirrel had been selling credits for $5,000-$6,500