Habitat Banking

Habitat conservation banking is a market-based approach used to offset impacts to protected species and their habitat. A conservation bank permanently protects and manages land that provides habitat value, and credits generated by the bank may be purchased by developers or others who are required to mitigate impacts associated with permitted activities.

Conservation banks can provide larger, more coordinated areas of protected habitat than mitigation conducted separately at individual development sites. Credit prices generally reflect the value of the habitat as well as the costs associated with establishing, protecting, monitoring, and managing the conservation bank over the long term.

The number and type of credits generated by a conservation bank depend on the species involved, the quality and quantity of habitat, applicable regulatory requirements, and the terms of the banking agreement. Credits may be measured by acres of habitat or through other measures appropriate to the species and conservation objectives involved.

Habitat banking may provide an additional revenue opportunity on school trust lands with significant habitat value. Careful evaluation of expected returns, management obligations, market demand, and long-term land-use implications can help identify where conservation banking may contribute to portfolio performance.