Excessive Surplus Mitigation Assets Workshop

1. Excessive Surplus Mitigation Assets Workshop September 5, 2007 U.S. Army Corps of Engineers Wilmington District

3. Purpose of Excessive Surplus Mitigation Asset Workshop Develop a strategy to reduce existing surplus assets Develop a plan to prevent creation of additional surplus assets

4. PARTICIPANTS • Tri-Party Sponsors • Secretaries NCDOT, NCDENR • Commander, USACE Wilmington District • USACE • USEPA Region IV • FHWA, North Carolina • NCDOT Preconstruction and Operations Areas • NCDENR, NCDWQ, NCEEP • USFWS • Michael Baker Corporation (Presenter Only)

5. Results of Workshop The team has produced an action plan to address surplus assets either by application toward the needs of NCDOT or agreed upon disposal.

6. MICHAEL BAKER CORPORATION Surplus Asset Analysis Jim Buck, PE, and Suzanne Unger Young, PE September 5, 2007

7. Scope of Work • Estimate available surplus NCDOT (legacy) assets • Identify assets (accounting for existing debits) • Recommend use of assets to meet anticipated TIP permit needs • Determine approximate value of remaining assets using in-lieu fee schedule • Summarize Tier 1 high quality preservation (HQP) assets • Identify assets (accounting for existing debits) • Determine approximate value • Summarize Tier 1 MOA (non-NCDOT initiated) assets • Identify assets (accounting for existing debits) • Determine approximate value

8. Sample Legacy NCDOT/MOA Cape Fear 05 (Divisions 3 & 6)

9. Major Findings • Several CUs with large surpluses across the state • Majority of surplus NCDOT (legacy) assets are located in the Coastal Plain • Some surplus stream in the Piedmont and Mountains • Surplus assets are in various stages of implementation (e.g., design, bidding, monitoring) • Reasons for surplus: • NCDOT invested in greater quantity of assets than needed to meet current TIP needs (philosophy of obtaining maximum assets available) • Some sites originally developed with intention of use in adjacent CUs; this has subsequently not been allowed (e.g., Croatan) • EEP initiated some MOA sites prior to reduction in TIP spending and improvements in TIP impact forecasting • On-site mitigation, other permit-specific requirements • High quality preservation • Surplus stream HQP in the Northern Mountain ecoregion • Potential to use less HQP if existing restoration assets used to cover equivalent needs

10. Statewide Overview – Largest Surpluses (Legacy NCDOT + MOA Assets; No HQP)

11. WORKSHOPPRE-DEFINITIONS Asset Secured mitigation site with designer assigned Excessive Mitigation Credits not used based on impacts for projects funded for letting within 7-year TIP

12. Solution Hierarchy Sell Umbrella Bank CurrentSurplus Case-By-Case Future Projects 7 Year TIP Needs

13. Future Projects Sell Umbrella Bank CurrentSurplus Case-By-Case Future Projects 7 Year TIP Needs

14. Current TIP Projects Funded for right of way acquisition or construction Non-funded TIP projects that are along a strategic highway corridor or on an Interstate, US, or NC route & all bridge replacement projects Future Identified Needs Forecast Needs to year 2025 Include needs that are on the strategic highway corridor or an Interstate, US, or NC route; include all identified bridge replacement needs Retain Mitigation for Future Projects

15. Future Project Identification(to “reserve” mitigation) Work to be done by NCDOT • Coordination with Divisions/BOT Members • Develop list • Calculate Impacts • Review Impacts versus Assets

16. CASE BY CASE Sell Umbrella Bank CurrentSurplus Case-By-Case Future Projects 7 Year TIP Needs

17. CASE BY CASE

18. CASE-BY-CASE(NCDOT) • Coordination with USACE Required • Requires • Selection of TIP project to be mitigated by surplus assets • USACE and agency determination of appropriateness • Permit application or pre-application to USACE • Processing permit application & receipt of permit • Debit mitigation site

19. CASE-BY-CASE(Example Proposal: Fayetteville Outer Loop) • Mitigation needs in Cape Fear 04: stream 25,676 feet riparian wetland 101.76 acres non-riparian wetland 23.68 acresMitigation available in Cape Fear 05 (from Privateer Mitigation Site): 25,676*$245 = $6,290,620 23.68*$14,676 = $347,527 • Potential Mitigation Value = $6,638,147

20. UMBRELLA BANK Sell Umbrella Bank CurrentSurplus Case-By-Case Future Projects 7 Year TIP Needs

21. UMBRELLA BANK(NCDOT) • Create a “bank” of existing surplus credits to be used in approved service areas • Flexible service area • Applies to known and unanticipated needs • Agency approved

22. Sites Service Area 1 Service Area 2 Conceptual Umbrella Bank Negotiated Service Areas Multiple Sites Multiple Projects

23. SELL CREDITS Sell Umbrella Bank CurrentSurplus Case-By-Case Future Projects 7 Year TIP Needs

24. Sell Credits/Sites • ID sites to be sold after allocation to needs • Case-by-case, Umbrella Banks • EEP MOA, Sales to in-lieu programs • Establish Surplus Committee (similar to R/W) • State agencies (Parks, Heritage, WRC, etc) • Land Trusts • Bankers/other states • Private interests

25. Management Structure • Decision Makers- Secretaries and Commander • Process Owners- Deputy Secretary Level • Board Communicators • Work Plan Sponsor • Project Initiatives • Team Leaders • Progress reporting • Monthly initially • Quarterly • Yearly

26. Umbrella Bank Case-By-Case SEQUENCE Responsible Party NCDOT Sell NCDOT Case-By-Case NCDOT Future Projects Feb 08 Aug 07

27. Preventing New Surplus Assets • Action plan involves holding future workshop • Major topics • Forecasting • On-site mitigation • Ratios • Just in time mitigation • Risk management

28. Excessive Surplus Mitigation Assets Workshop U.S. Army Corps of Engineers Wilmington District