The Nevada Conservation Credit System (“Credit System”) is heading into its third year of implementation, and on November 4th the State of Nevada announced another $1,200,000 of funding to generate anticipated credits intended to fulfill future mitigation needs.
In 2015, the State announced $1,000,000 of funding, 21 applications were received, and four outstanding credit projects received funding to enhance and protect greater sage-grouse habitat and to generate a supply of mitigation credits. The four funded projects are anticipated to generate 5,550 credits on over 13,000 acres of greater sage-grouse habitat. The response to the 2015 funding announcement exceeded expectations, and along with the recent funding announcement demonstrate the State’s commitment to investing in high-quality sage-grouse conservation as well as land owner interest in participating in the Credit System.
The State of Nevada is providing seed funding to land owners using a public-private partnership model. Land owners receive seed-funding at no risk to generate anticipated credits during this time of significant regulatory and emerging market uncertainty, and then the State is reimbursed their investment if the credits are sold to offset impacts of BLM permits. Potential future credit sales are negotiated by land owners and mitigation buyers, and land owners receive the difference of the State’s seed funding and the mitigation buyer payment. The State does not fund durability instruments and financial assurances, so the State is able to leverage their investment to generate significant anticipated credits.
Environmental Incentives is thrilled to assist the State in the design of their seed funding strategy and performance contracts, and applauds the State for being a leader of sage-grouse conservation and a trailblazer in the development of innovative mitigation programs.
Written by Alyssa Krag-Arnold and Eoin Doherty
