Executive Order on Zero-Based Regulatory Budgeting Puts Mitigation Banking at Risk
On the heels of the recently issued Executive Order on Zero-Based Regulatory Budgeting, serious concerns are emerging across the environmental and mitigation banking communities. This sweeping directive mandates that federal agencies—including the U.S. Army Corps of Engineers, U.S. Fish and Wildlife Service, and Environmental Protection Agency—must assign expiration dates to nearly all environmental regulations unless re-justified and formally extended.
What’s at Stake? The Order threatens the very legal frameworks that make mitigation banking possible. Key statutes such as:
- The Clean Water Act
- The Endangered Species Act
- The Migratory Bird Treaty Act
- The Marine Mammal Protection Act
- The Bald and Golden Eagle Protection Act
- Essential Fish Habitat designations
are now at risk of sunset unless agencies proactively reauthorize them. This includes the specific regulatory tools that enable and support mitigation banking: wetland and habitat crediting systems, credit release schedules, service area determinations, and performance standards.
Without these protections and mechanisms in place, the market demand for credits—both wetland and species—could decline, undermining the very foundation of private conservation investment.
MBG’s Position & Response
We view this as a pivotal moment for the mitigation banking industry and a call to action. We are already taking steps to protect our clients and the integrity of the industry:
- Engaging with Florida’s DEP and Water Management Districts to assess how state-led programs can provide stability in the face of federal uncertainty.
- Coordinating with industry associations and legal advisors to advocate for the continued enforcement of foundational environmental protections.
- Supporting our clients—mitigation bank owners, investors, and developers—with timely updates and market insights as regulatory dynamics shift.
- Reinforcing the message that mitigation banking is a proven private-market solution that delivers quantifiable environmental outcomes.
What You Can Do
This is not the time for silence. We encourage landowners, consultants, environmental professionals, and developers to:
- Stay informed.
- Engage with your state representatives and industry organizations.
- Advocate for clarity and continuity in environmental regulation.
The potential erosion of regulation could devastate not just mitigation banks, but the long-term health of our wetlands, wildlife, infrastructure resilience, and responsible development.
We’re Here to Help
If you have questions about how this Executive Order may affect your project, investments, or an existing mitigation bank, please don’t hesitate to reach out. At MBG, we remain committed to defending environmental safeguards and helping our clients navigate this evolving regulatory landscape.
Contact:
Victoria Bruce, CEO & Founder
📧 victoria@mitigationbankinginc.com
📞 (407) 960-5787
Together, let’s continue protecting our land, our future, and the principles that safeguard both.
