The New Jersey Department of Environmental Protection (NJDEP) has adopted new financial assurance regulations for mitigation banks. Mitigation banks are wetlands, streams, or other aquatic resource areas that have been restored, established, enhanced or sometimes preserved as compensation for unavoidable impacts to aquatic resources. The new regulations allow surety bonds as an acceptable form of financial assurance, to be obtained before beginning to restore, establish, enhance or create mitigation banks. The changes amend sections 7:7-17.17 and 7:7-17.21 of the New Jersey Administrative Code (N.J.A.C.).
The surety bond is in place to ensure the success of the mitigation project and that the project adheres to the provisions of Title 7 of the N.J.A.C. The amount of bond coverage is determined based on 115% of both the project’s construction and maintenance costs, as stipulated in N.J.A.C. 7:7-17.17. The NJDEP can also increase the amount of the financial assurance as they see fit.
Those interested in establishing a mitigation bank in New Jersey can find the list of required information here. The NJDEP Division of Land Use Regulation has compiled the checklists and forms for proposed mitigation as well as the applicable laws and regulations. If you have any questions about obtaining a surety bond, contact the experts at SuretyBonds.com.