ations, and maintenance plan provided in
the charter;
‘‘(v) a reconciliation of the number of
credits sold during the previous years, the
number of credits remaining, and any
change in the number of credits made in
accordance with the requirements of this
subsection; and
‘‘(vi) any other reporting requirement
defined in the charter.
‘‘(K) RESPONSIBILITY
FOR
BANK
SUC-
CESS.—Subject to the terms of the charter, a
person holding the charter shall be responsible
for ensuring the success of the restoration, cre-
ation, enhancement, and preservation activities.
‘‘(L) REVOCATION.—A mitigation banking
charter—
‘‘(i) 
shall 
be 
revoked 
by 
the
Secretary—
‘‘(I) for a criminal conviction for
making material false statements in
the charter application or annual re-
port; and
‘‘(II) for substantial violations of
law (other than violations described in
clause (I)) that demonstrate the
unfitness of the holder of the charter
to operate the mitigation bank; and
‘‘(ii) 
may 
be 
revoked 
by 
the
Secretary—
‘‘(I) for a substantial failure of
the bank to perform as expected in
the charter; and
‘‘(II) for a substantial failure to
comply with the terms of the charter,
including financial assurances or crit-
ical operating requirements.
The charter may be revoked only after an op-
portunity for a public hearing.
‘‘(M) STANDARDS AND CRITERIA FOR SUC-
CESS.—The Secretary, in consultation with the
Administrator, shall establish standards and
criteria for the success of mitigation banks
under this subsection.
‘‘(4) CREDITS AND DEBITS.—
‘‘(A) NUMBER OF CREDITS.—The number
of credits to which a chartered mitigation bank
is entitled for wetlands restoration, enhance-
ment, and creation shall be based on the meth-
odology contained in the charter, consistent
with the approach identified in the Federal
Guidance. Limited credits may be granted, con-
sistent with the Federal Guidance, for the in-
clusion of uplands, open water, and preserved
wetlands areas within a bank if the uplands,
open water, and preserved wetlands areas with-
in the bank increase the overall ecological func-
tioning of the bank.
‘‘(B) CREDITS BASED SOLELY ON PRESER-
VATION.—The number of credits that are based
solely on preservation should be based on the
functions that would otherwise be lost or de-
graded if the wetlands were not preserved, and
the timing of such loss or degradation, pursu-
ant to the Federal Guidance. In any case in
which the Secretary determines that preserva-
tion of wetlands is appropriate as the sole basis
for providing mitigation credits, the Secretary
shall make a determination that the wetlands—
‘‘(i) perform physical or biological
functions, the preservation of which is im-
portant to the region in which the wetlands
are located; and
‘‘(ii) are under a demonstrable threat
of loss or substantial degradation due to
activities that might not otherwise be ex-
pected to be restricted and that are not the
consequence of actions under the control of
the bank sponsor.
‘‘(C) OFFERING
CREDITS
FOR
SALE.—
Upon receipt of its charter, a mitigation bank
may offer mitigation credits for sale in accord-
ance with the charter. The number of credits
that a mitigation bank may offer for sale shall
not exceed the number to which the bank is en-
titled under the charter. As specifically ap-
proved under the charter, and consistent with
the Federal Guidance, limited credits may be
sold before restoration, enhancement, or cre-
ation activities have begun if adequate financial
and legal assurances described in paragraph
(3)(A) are in place to carry out the proposed
project, the likelihood of success of the bank is
high, and a construction schedule has been ap-
proved.
‘‘(D) DEBITS.—To the maximum extent
practicable, the Secretary shall use the same
methodology to quantify debits as is used to
quantify credits at a mitigation bank.
‘‘(E) 
NO
REGULATION
OF
CREDIT
PRICE.—The Secretary may not regulate the
price charged for the sale of mitigation credits.
‘‘(5) SERVICE AREAS.—
‘‘(A) ADDITIONAL
GUIDANCE.—The Sec-
retary may provide additional guidance, con-
sistent with the Federal Guidance, on the size
and use of the service area, including policies
regarding linear utility facilities.
‘‘(B) INTERSTATE
AGREEMENTS.—If the
proposed service area or mitigation bank is lo-
cated in more than 1 State, the Secretary is au-
thorized to resolve any interstate disagreement.
‘‘(6) MITIGATION.—
‘‘(A) IN GENERAL.—A mitigation bank ap-
proved under this subsection may, in accord-
ance with this section, provide compensatory
mitigation for activities requiring authorization
under this section or provide required injunctive
relief in an enforcement action by the Secretary
or the Administrator.
‘‘(B) IN-KIND
AND
OUT-OF-KIND.—Con-
sistent with the Federal Guidance, in-kind com-
pensation of wetlands impacts should generally
be required. Out-of-kind compensation may be
acceptable if it is determined to be practicable
and environmentally desirable on a case-by-case
basis.
‘‘(C) EQUIVALENT STANDARDS AND CRI-
TERIA.—Not later than 1 year after the date of
enactment of this subsection, the Secretary and
the Administrator, in consultation with the
heads of appropriate Federal agencies, shall es-
tablish standards and criteria applicable to the
use of on-site mitigation, in lieu fees, and other
off-site mitigation as compensatory mitigation
that are similar to those applicable to a mitiga-
tion bank under this subsection. Such standards
and criteria shall include a definition of in lieu
fees and specific measures to ensure that such
fees are used only under appropriate cir-
cumstances with adequate controls.
‘‘(7) REPORT TO CONGRESS.—Not later than 2
years after the date of enactment of this subsection,
the Secretary shall transmit to Congress a written
report on the effectiveness of wetlands mitigation
banking and other forms of compensatory mitigation
in meeting the policy and goals identified in section
101(a)(8). The report shall first be issued in draft
form and, in a 60-day period, the Secretary shall re-
ceive comments from the public about the accuracy
of the information contained in the draft report. The
final report shall be revised after consideration of
the public comments and submitted to Congress not
later than 90 days after the last day of the comment
period.
‘‘(8) EXISTING BANKS.—Nothing in this sub-
section may be construed to require a person oper-
ating a mitigation bank in existence on the date of
enactment of this subsection to submit an applica-
tion for a charter under this subsection to the Sec-
retary for approval.
‘‘(9) MITIGATION BANKING APPROVED UNDER
STATE PROGRAMS.—A State that operates a pro-
gram under subsection (h)(2)(A) may administer a
wetland mitigation banking program in accordance
with procedures established by State law or regula-
tion if the banking program is approved by the Ad-
ministrator as a part of the State’s approved pro-
gram under such subsection.’’.
Æ