Mitigation Credit Agreement

Connectivity Advance Mitigation (CAM)

Guidelines established under SB 790 (CAM) created two pathways for connectivity advance mitigation projects: MCAs or Banks

Image with labels showing landmarks and elements of a proposed wildlife crossing over a highway that is passing through a gap between two hillsides with a valley in the distance.
Hwy 17 Wildlife crossing Plan for wildlife crossing and connectivity over Highway 17 between Los Gatos and Santa Cruz. © Midpeninsula Regional Open Space District

Mitigation for Connectivity

Existing habitat connectivity projects are funded by infrastructure projects, (e.g., transportation, energy and water) or land trusts and with some exceptions, are not being built for mitigation needs. However, these projects can be used to mitigate impacts to connectivity. Advance mitigation could help reduce potential mitigation requirements by avoiding temporal loss, and can contribute to funding construction costs by selling mitigation credits.

The Wildlife Connectivity Advance Mitigation (CAM) Guidelines create incentives for projects that improve habitat connectivity for threatened, endangered and sensitive species, such as wildlife crossings over or under transportation corridors, or fish passage projects. There are two advance mitigation pathways for connectivity projects: through an MCA or a Bank; the CAM Guidelines provide information and guidance on the pathways.

Is your connectivity project a good fit for advance mitigation?

If the project will improve habitat connectivity, there are several questions project proponents should consider when making the decision to move forward with a CAM project, either through an MCA or bank:

  • Does your connectivity project benefit species that have a compensatory mitigation credit market in the area?
  • Does the amount of credits you could receive from the CAM project make your project financially feasible based on your business model?
  • What regulatory agencies besides CDFW are you wanting compensatory mitigation credits from for your project? Have you engaged with them on this project?
  • Is there land already protected or that could be protected as part of your project on either side of the connectivity action beyond the right of way?

To decide which advance mitigation pathway is most appropriate for connectivity projects, project proponents should determine if an MCA or a conservation/mitigation bank best aligns with the project design and location, project impacts, and potential regulatory mitigation needs.

  • If the project will be creating an MCA, the MCA and CAM guidelines will be used to value credits.
  • If the project will be creating a mitigation/conservation bank, the CAM and banking program guidelines will be used to value credits.

Each pathway can create credits to fulfill CESA, CEQA, and Lake and Streambed Alteration Agreements requirements, and potentially for other state and federal mitigation needs. It is important to engage early with all potential regulatory agencies (i.e., federal, state, and local) to ensure all appropriate regulatory mitigation requirements are included in the MCA or mitigation/conservation bank design.

Developing Credits through the CAM Guidelines

A benefit to developing a CAM project is that the credits generated include not just the acreage of the project itself (e.g., a wildlife overcrossing), but also the number of acres of habitat connected by the project, allowing for a value beyond a typical 1:1 ratio.

The CAM Guidelines provide information on the crediting analysis, including a crediting factor. Additional components are evaluated and considered when developing and valuing credits through CAM include:

  • Ecological engineered design
  • Value of habitat connected
  • Value of the particular location
  • Critical linkages
  • Population-level benefits to target species
  • Other factors CDFW determines are important

The more information a sponsor provides to CDFW supporting the project’s ecological benefits are helpful in determining the credit amounts for the project. This could include a broad range of factors into credit valuation that extends beyond the connectivity structures footprint, thereby increasing the number of credits generated by the project.

How to decide if your CAM project is developed through an MCA or a Bank?

Below are two charts that outline the pathways available for connectivity advance mitigation projects.

The first is a comparision outlining general charateristics of MCAs and Banks. The second is a flowchart developed by CDFW that helps guides your decision.

Comparison of MCA requirements and features vs Banks
Program Comparison Comparison of MCAs and banks. Outlines the scope and differences between MCAs and banks for advance mitigation. © CDFW

This is a table that lists the difference between MCAs and banks. MCA programs must occur within an approved RCIS; bank programs can occur anywhere. MCAs offer non-permanent and permanent credits; banks offer only permanent credits. MCAs require a permanent conservation easement and non-permanent long-term durability agreement; banks only require a conservation easement. MCA programs can occur on public-owned lands, while bank programs are generally not on public lands. MCAs have a framework option available while banks do not. MCA programs involve a CDFW subprogram; bank programs include up to 8 agencies that use the Bank Enabling Instrument. MCAs can be created from excess mitigation, while bank programs cannot. Public review is required for MCA approval; bank programs require no such review. Closure of an MCA program still allows for the use of credits purchased prior to closure, while bank program closure stops the transfer or use of credits purchased prior to closure.

CDFW Decision Tree to determine best advance mitigation option:  MCA or Bank?
Advance Mitigation Decision Tree: MCA vs Bank CDFW Decision Tree to determine best advance mitigation option: MCA or Bank? © CDFW

This graphic visually depicts the options of bank or MCA for advance mitigation. To make that decisions, it asks: whether your proposed project occurs within an approved RCIS and proposes credits that are implementing actions in that RCIS; whether you are proposing a project with excess mitigation; whether you are proposing non-permanent credits; whether you want to use a traditional advance mitigation process with access to all MOU agencies; and whether the proposal includes a wildlife connectivity action.

Image with labels showing landmarks and elements of a proposed wildlife crossing over a highway that is passing through a gap between two hillsides with a valley in the distance.
Hwy 17 Wildlife crossing Plan for wildlife crossing and connectivity over Highway 17 between Los Gatos and Santa Cruz. © Midpeninsula Regional Open Space District

Case Studies

The Highway 17 Wildlife and Trail Crossings project will be building a wildlife-only undercrossing that will connect over 30,000 acres of habitat in the Santa Cruz Mountains. The project, led by the Midpeninsula Open Space District, is currently exploring the development of an MCA to self-mitigate project impacts and sell excess credits, while using the CAM guidelines to achieve uplifted credit amounts.

Target species may include mountain lion, badger, western pond turtle, and California red-legged frog. There are project impacts associated with these species that should be mitigated through the credits generated. The project is likely to receive uplifted credit amounts for species because the crossing will enhance genetic connectivity, climate change resilience, and reduce vehicle-related mortality. Any excess mitigation generated can be sold to third parties needing mitigation, or saved for the District’s future project maintenance impacts.

The Santa Clara Valley Water District is developing advance mitigation for a series of fish passage projects. They are starting with developing an MCA framework, and may consider using CAM guidelines for projects that intersect linear infrastructure. Projects that have the same purpose and actions, as well as the same credits, will be included in the MCA framework. The remaining projects will go through an iterative process to determine if the CAM guidelines are applicable to each MCA site.

CDFW Connectivity Advance Mitigation (CAM) Guidelines

Learn more about how the connectivity advance mitigation guidelines mandated through SB 790 create incentives for improving habitat connectivity that will protect and enhance movement and migration for California’s most threatened species.