

Individuals, businesses, or other organizations with authorized impacts to wetlands and other habitats may be allowed to pay into a restoration fund instead of completing their own mitigation project. Funds collected through the in-lieu-fee program are used to develop a mitigation site that can provide compensation for multiple impacts. Similar to a mitigation bank, an in-lieu-fee program sells mitigation credits to permit recipients whose obligation to provide compensatory mitigation is then transferred to the sponsor of an approved in-lieu-fee program. Only governments and non-profit organizations are eligible to be in-lieu-fee program sponsors.
Studies of wetland mitigation in Washington and other states indicate high rates of failure. The primary reasons include inappropriate selection of mitigation sites, poor site design, inadequate construction techniques, and lack of monitoring and maintenance. In-lieu-fee (ILF) mitigation programs are professionally managed and solely focused on providing high quality environmental mitigation. In-lieu-fee mitigation is intended to target ecological restoration on the highest priority sites to maximize the improvement to watershed health.
The mission of the Puget Sound Partnership is to reverse Puget Sound’s decline and restore it to health by 2020. The ILF Program will contribute to this mission by improving the effectiveness of compensatory mitigation. Development of an ILF program for the Puget Sound has been recommended and supported by the Mitigation that Works Forum, a group made up of 22 members representing state and federal agencies with mitigation responsibilities, local governments, ports, business, environmental, and land use/conservation interests. The Puget Sound Action Agenda (near term action D.4.6) also calls for the establishment of an ILF program as one tool to improve the health of Puget Sound. In 2009 the Washington State Legislature allocated funds for the development of an ILF mitigation program as well as the implementation of pilot ILF mitigation sites in advance of impacts to aquatic resources.
The Puget Sound Partnership’s ILF Program will serve as one of many options available to permit applicants and permitting agencies to provide mitigation for unavoidable impacts to resources. Permitting agencies with jurisdiction over impacts make decisions regarding appropriate compensatory mitigation. This program will not change those agencies permitting authority. All agencies with permitting authority over a development impact will have to agree that the ILF program would be appropriate compensatory mitigation.