Existing law provides that mitigation banks and conservation banks provide for the conservation of important habitats and habitat linkages, take advantage of economies of scale that are often not available to individualized mitigation projects, and simplify the state regulatory compliance process while achieving conservation goals. Existing law provides that no conservation bank, mitigation bank, or conservation and mitigation bank is operative, vested, or final, nor bank credits issued, until the Department of Fish and Wildlife has approved in writing and a conservation easement has been recorded on the site. Existing law authorizes banks to issue and sell bank credits to private and public entities. Existing law defines “conservation bank” and “mitigation bank” for these purposes.

This bill would expand the definition of “conservation bank” and “mitigation bank” to include marine artificial reefs. The bill would authorize a person to, after completion of a full environmental review in compliance with applicable California and federal laws and regulations, create a marine artificial reef for purposes of establishing a mitigation or conservation bank. The bill would clarify that both nonprofit and for-profit organizations are authorized to establish and operate a conservation bank, mitigation bank, or conservation and mitigation bank. The bill would provide that if a marine artificial reef is located on state sovereign land then a lease is required from the State Lands Commission, as provided. The bill would provide that the lease from the commission would satisfy the requirements for a bank enabling instrument and for the department to grant a conservation easement.