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In-Lieu Fee Mitigation Program | How It Works

How does the ILF Program work?

An in-lieu fee program involves the restoration, establishment, enhancement and/or preservation of aquatic resources through funds paid to a government or non-profit natural resources management entity to satisfy compensatory mitigation requirements for permits. An in-lieu fee program sells “advance credits” to permittees who purchase these credits in lieu of performing mitigation themselves (i.e., permittee-responsible mitigation). The legal obligation to provide compensatory mitigation is then transferred to the sponsor of the in-lieu fee program (Indiana DNR) upon receipt of funds for sales of wetland and/or stream credits in a service area(s).

The DNR's ILF is a fee-based program that is carried out through fees collected from credit sales to applicants who elect to use the ILF program to fulfill their compensatory mitigation requirements. The State of Indiana will not be subsidizing mitigation for permit recipients with taxpayer dollars.

Fees collected for these credit sales will be deposited in the appropriate accounts owned and managed by the Indiana Natural Resources Foundation, a not-for-profit organization that exists to promote, support, assist, sustain and encourage the charitable, educational and scientific programs, projects and policies of the DNR.

In-lieu fee programs are regulated by the U.S. Army Corp of Engineers under the 2008 Federal Rule (33 CFR Part 332), "Compensatory Mitigation for Losses of Aquatic Resources" ("Mitigation Rule") as published in the Federal Register by the Corps of Engineers and the U.S. Environmental Protection Agency on April 10, 2008.

DNR's in-lieu fee mitigation program approved final instrument

The final instrument is the governing document for in-lieu fee programs and mitigation banks as laid out in the 2008 Federal Mitigation Rule. Below is a copy of the DNR's Final Instrument.

**The credit prices are subject to change as the DNR deems necessary in order to provide complete cost accounting for fulfilling advance credits sold for mitigation. The State of Indiana should not be subsidizing mitigation for permittees with taxpayer dollars.

Annual Report