I'm developing a new bank in a service area that has no bank currently. I've learned that a local government agency is interested in pursuing a bank. I understand they have their own mitigation needs but they have indicated they intend to market credits to other entities, including private developers . I believe this creates unfair competition as they aren't taxed and are using tax payer dollars for their start up costs. Has anyone else run into this type of situation and do you have any advice? Thanks!

Dear Kevin,
With all due respect, the mitigation business is not a place for those who worry about unfair competition. Consider this - as a result of the SWANCC decision in 2001, mitigation is no longer required for isolated wetlands and other non-navigable, isolated, intrastate waters. After Rapanos in 2006, mitigation is no longer required for insignificant non-abutting wetlands, intermittent and ephemeral streams. This hurt the mitigation business.

We have hope that the Obama Administration will change the wetlands regulatory program and resolve some of these problems, but it seems that this will have to wait until after other environmental priorities such as climate change are dealt with. My advice is to be patient and give the Administration a chance to address the jurisdictional mess before committing to a new mitigation bank.

I agree that the banking process needs to be overhauled, because currently there are not enough Mitigation Banks in any given service area to provide even a basic level of competition.