This alternative results in mitigation occurring after the fact, a practice that is generally discouraged by the regulators. This option is available in limited parts of the country. No in-lieu fee programs are known to exist in Colorado. Participating agencies included the U.S. Army Corps of Engineers, Environmental Protection Agency, Fish and Wildlife Service, Natural Resource Conservation Service, and National Oceanic and Atmospheric Administration. Recognizing the potential benefits mitigation banking offers for streamlining the permit evaluation process and providing more effective mitigation for authorized impacts to wetlands, the agencies encourage the establishment and appropriate use of mitigation banks.
Banks provide mitigation in advance of impacts, which is of significant benefit to the environment.
Banks have a greater probability of success because of consolidation of professional and regulatory resources, in addition to the financial guarantees banks provide. Banks reduce the permit processing time, thereby increasing the effectiveness of the regulatory agencies.