Mitigation Banking

A Simple Explanation for Landowners and Partners

What Is Mitigation Banking?

Mitigation banking is a way to offset environmental impacts from development while creating financial opportunities for private landowners and delivering meaningful ecological restoration.

When roads, subdivisions, utilities, or commercial projects impact streams, wetlands, or other sensitive habitats, federal law requires those impacts to be compensated. Mitigation banking allows developers to meet this obligation by purchasing mitigation credits instead of performing restoration themselves.

Those credits come from professionally restored sites—called mitigation banks—where real ecological improvements have already occurred.

In simple terms:

  • Developers meet regulatory requirements

  • Landowners earn income from their land

  • Streams and wetlands are restored and permanently protected

How Mitigation Banking Works

  1. A mitigation banker restores, enhances, or preserves streams, wetlands, or other natural resources on a qualified property.

  2. The project is reviewed and approved by regulatory agencies.

  3. The project earns mitigation credits based on ecological performance.

  4. Developers purchase those credits to offset their permitted impacts.

  5. The site is monitored and protected long-term to ensure success.

Think of it like a traditional bank:
A commercial bank provides money.
A mitigation bank provides environmental credits.

Types of Mitigation Banks

  • Stream Mitigation Banks – Offset impacts to streams and waterways

  • Wetland Mitigation Banks – Offset impacts to wetlands and aquatic resources

Mitigation banks are regulated and approved by:

  • U.S. Army Corps of Engineers (USACE)

  • U.S. Environmental Protection Agency (EPA)

  • State regulatory partners

Why Mitigation Banking Matters

Environmental Benefits

  • Restores degraded streams and wetlands

  • Improves water quality

  • Reduces erosion and sedimentation

  • Protects wildlife habitat and biodiversity

Landowner Benefits

  • Generates income from underutilized land

  • No loss of property ownership

  • No public access required

  • Potential tax benefits from conservation easements

Economic Benefits

  • Provides reliable compliance options for development

  • Attracts private investment into conservation

  • Creates long-term protected natural assets

How Waypoint Helps

Waypoint is a team of stream and wetland restoration specialists who partner with private landowners to:

  • Identify eligible properties

  • Evaluate restoration and credit potential

  • Design and permit projects

  • Manage regulatory coordination and approvals

  • Oversee construction and long-term monitoring

We handle the complexity so landowners can participate with confidence.

How to Participate (For Landowners)

1. Initial Conversation

Contact Waypoint to discuss your property and determine whether it may be a good candidate.

2. Site Evaluation

We perform a preliminary desktop review and/or site visit to assess feasibility.

3. Project Planning

If suitable, we develop a clear scope, timeline, and funding approach.

4. Regulatory Approval

Waypoint prepares the Mitigation Banking Instrument (MBI) and works directly with regulatory agencies. Federal requirements typically involve a minimum 5-year agreement.

5. Construction

Once approvals are in place, restoration construction begins. Additional permits may be required for earthwork.

6. Monitoring

Projects are monitored annually for at least five years to ensure performance and long-term success.

General Program Features

  • Participation is voluntary

  • Landowners retain property ownership

  • No public access is required

  • Projects must benefit streams, wetlands, and/or natural habitats

  • Minimum 5-year agreement

  • Permanent protection through a conservation easement

What Makes a Property a Good Fit?

Good candidates often include properties with:

  • Eroding or unstable streams

  • Degraded stream banks

  • Limited tree cover along waterways

  • Channelized or historically modified streams

  • Opportunities for restoration, enhancement, or preservation

Even high-quality streams may qualify for preservation-based credits.

Typical Stream Size

  • 1,000 feet or more is ideal (but smaller sites may still qualify)

  • Small to mid-sized streams often perform best

Access Considerations

  • Access to both sides of the stream is usually needed

  • Neighboring landowners may participate together

Permanent Protection & Conservation Easements

All mitigation projects must be permanently protected.

  • Conservation easements typically extend at least 50 feet on each side of a stream or wetland

  • Landowners retain ownership

  • Development is restricted within the easement area

  • Easements do not require public access

  • Easements may be donated or compensated

Restoration Practices May Include

  • Stream channel restoration

  • Wetland creation or enhancement

  • Riparian forest restoration

  • Native grassland and prairie restoration

  • Livestock exclusion fencing

  • Bank stabilization

  • Invasive species removal

  • Native tree and vegetation planting

Engineering, Construction & Monitoring

Engineering & Design

  • Detailed analysis of hydrology, soils, and stream stability

  • Design phase typically takes 6–18 months

  • All necessary permits are obtained

Construction

  • Typically completed in 3–9 months

  • May include grading, channel reconstruction, and vegetation installation

Monitoring

  • Annual monitoring for a minimum of five years

  • Long-term protection and compliance continue permanently

Why Private Land Conservation Matters

Approximately 94% of Kentucky is privately owned. Without conservation efforts on private land, many streams and wetlands would not recover.

Waypoint helps bridge that gap by providing the technical expertise, regulatory coordination, and project leadership needed to restore and protect these critical resources.

Frequently Asked Questions

How do mitigation banks make money?
By generating mitigation credits that are sold to developers who need to offset environmental impacts.

Who determines how many credits a project earns?
Regulatory agencies determine credit quantities based on watershed needs, habitat quality, and ecological performance.

Is mitigation banking effective?
Yes. Mitigation banking has a strong national track record of restoring ecosystems and improving watershed health.

Contact Us to Discuss a Potential Project