TO WHOM IT MAY CONCERN: Dieguito Asset Management, Inc. (POC: Charles Salas), through its agent Althouse and Meade, Inc. (POC: Jason Dart), has submitted a Prospectus to the San Francisco District of the U.S. Army Corps of Engineers (Corps), and other members of the Interagency Review Team (IRT) for the establishment of the Rancho Estrellita Mitigation Bank. If authorized, this mitigation bank would receive money from individuals or entities (“project proponents”) receiving Corps authorization under Section 404 of the Clean Water Act of 1972 (33 U.S.C. §1344), when appropriate, to provide compensatory mitigation credit as part of Section 404 permits or enforcement actions within the proposed service area. Additionally, the proposed mitigation bank may be utilized to offset unavoidable impacts to waters of the State that are regulated by the Regional Water Quality Control Board (RWQCB) under Section 401 of the Clean Water Act or Section 13260 of the Porter-Cologne Act, and impacts to state and federally listed species under the jurisdiction of the U.S. Fish and Wildlife Service (USFWS) and California Department of Fish and Wildlife (CDFW). The purpose of this public notice is to solicit comments from the public regarding the work described below:
PROPOSED MITIGATION BANK:
Activity: Establish the Rancho Estrellita Mitigation Bank (Bank) pursuant to the requirements of the Corps-EPA Compensatory Mitigation Rule (33 CFR 332.8(d)). Supporting documents are available online at the Corps’ Regulatory In-Lieu Fee and Bank Information Tracking System (RIBITS) website: https://ribits.ops.usace.army.mil/ords/f?p=107:10:::::P10_BANK_ID:7324
WATERWAY AND LOCATION: The proposed Rancho Estrellita Mitigation Bank property is located south of River Grove Drive, off Highway 46 East, in 6 Section, 27 S Township, 14 E Range; at Latitude 35.629376 and Longitude -120.494739; in Paso Robles, San Luis Obispo County, CA (APNs: 019-151-006, 019-161-003, 019-161-005, 019-161-006, 019-161-007, 019-161-009, 019-161-010, 019-161-012, 019-161-013, 019-151-036, 019-151-042. 019-171-021, 019-171-035). See attached map (Figure 1).
EXISTING BANK SITE DESCRIPTION: The approximately 1,709.5-acre Bank is located within the California Central Valley region. The landscape features gently rolling hills covered in annual grasslands and oak woodlands, with the Estrella River winding along the norther border. Elevations range from 840-feet above mean sea level (amsl) in the north to 1,400-feet amsl in the southeastern portion of the site. The property contains a mosaic of upland and wetland habitats connected to large adjacent undeveloped lands that support a diversity of species. The Estrella River is an intermittent stream corridor that supports riparian forests and wetlands, which provide hydrological connectivity and breeding habitats for species. The property has largely been undeveloped, with dry-land farming (e.g., barley, wheat, and/or oats) and cattle ranching as the primary uses of the property since the early part of the century. Farming largely disappeared in the 1980s and 1990s (see attached aerial images, Figure 2). Currently the site is used as rangeland for cattle grazing, and contains one ranch house and outbuildings that support ongoing cattle operations, as well as a residential structure.
Bank Description: As shown in the Prospectus, the Sponsor is proposing to protect a large undeveloped property containing rare and endangered species within an important and impaired watershed (preservation); rehabilitate riparian habitat along the Estrella River; and enhance intermittent and ephemeral stream habitats, vernal pool habitats and seasonal pond habitats within the Bank site. These enhancements would benefit rare and endangered wildlife habitat and improve water quality within the Estrella River (see attached Figure 3).
Bank Service Area: The proposed service area for 404 and 401 aquatic resources credits would include all Hydrologic Unit Codes (HUC)10 map units with aquatic inputs into the Estrella River and Huerhuero Creek watersheds, the southern end of the Salinas HUC 8, and the HUC 10 map units directly connected with the Salinas River downstream of the confluence with Estrella River, and HUC 10 units north to Monterey Bay (See Figure 4 attached).
ADDITIONAL INFORMATION/BACKGROUND:
Mitigation Rule: The Mitigation Rule established a process and defined requirements for the establishment and management of mitigation banks, in-lieu fee agreements and permittee-responsible mitigation (33 CFR 332). In addition, the Mitigation Rule established a public review process and timeline for the development of mitigation banks and in-lieu fee agreements. This mitigation bank development process will include, but is not limited to, the following: 1) public review and comment on the Prospectus, 2) IRT coordination on the Prospectus and the Bank Enabling Instrument (BEI), 3) development of a mitigation credit production approach and credit release schedule, 4) long-term site protection and management measures, and 5) financial assurances estimation approach.
Mitigation Approval and Permitting Processes: Mitigation requirements for a particular project are negotiated between the project proponent and the Corps. The project proponent must therefore first submit a compensatory mitigation proposal to the Corps that describes the proposed use of an In-Lieu Fee (ILF) Program or Mitigation Bank. Per the Mitigation Rule, preference is first given to use of Mitigation Banks over ILF Programs and Permittee-based mitigation types, as Bank credits are usually in place prior to the permitting of a proposed project.
A Mitigation Bank contains wetlands, streams and/or other aquatic resources that have been restored, established, enhanced, or preserved. The Bank area is then utilized to compensate for future impacts to aquatic resources resulting from permitted activities. The value of a Bank is determined by quantifying the aquatic resource functions restored, established, enhanced, and/or preserved in terms of “credits.” If appropriate credits are available at a Mitigation Bank located within the service area, and the Corps determines that the Bank is the most appropriate approach to mitigation implementation, then the project proponent would contact the Bank sponsor to discuss mitigation options. The Bank sponsor would review copies of all permits issued to the project proponent and then submit a proposal to the project proponent, including the estimated cost of the proposed mitigation credits. Prior to acceptance of payment (“credit sale”), the Bank sponsor would also contact the Corps in order to verify the Corps’ compensatory mitigation requirements.
As part of the process of establishing a Bank, the IRT would determine the types and number of potential Bank credits that may be generated. Upon meeting either administrative milestones (e.g., BEI completion, funding of long-term management endowment) or performance-based milestones (e.g., 1-year, 3-year, 5-year conditional assessments), potential credits then become released credits and are available for sale. In addition to the final IRT approvals of the Bank Prospectus and BEI, the sponsor would also need to obtain the appropriate federal, state, and local permits required to implement the Bank restoration activities. The Bank sponsor would submit an application for Corps permit(s) should the proposed bank mitigation activities involve a discharge of dredge or fill material within waters of the U.S. or work or structures within navigable waters of the U.S. The Corps would complete consultation, if appropriate, under the Endangered Species Act, the National Historic Preservation Act, and other applicable laws, prior to any permit authorization.
Bank funds would be held in an account for the Bank, and all credit sales would be tracked and reported by the Bank sponsor to the IRT at a minimum on an annual basis, and uploaded to RIBITS.
To ensure permanent protection of the Bank site, in coordination with the IRT, the Bank sponsor would secure an in-perpetuity conservation easement and/or fee title transfer. An endowment would be provided by the Bank sponsor to a third party, non-profit, conservation entity that would fund long-term management of the Bank property.
To ensure a high level of confidence that the Bank would be successfully completed in accordance with applicable mitigation performance standards, the Bank sponsor in coordination with the IRT, would secure sufficient and appropriate financial assurances.
CONSIDERATION OF COMMENTS:
The Corps is soliciting comments from the public; Federal, state, and local agencies and officials; Indian tribes; and other interested parties in order to help inform the Corps and the IRT as to the overall merits of the proposed Bank, the scope of the proposed mitigation bank, the delineation of the service area, the ecological suitability of the individual sites to achieve wetlands restoration, and to identify project aspects that should be addressed during the development of a draft BEI. Any comments received will be considered by the Corps to determine whether the proposal has the potential to provide mitigation opportunities for project proponents (permittees) authorized to impact waters of the U.S. under Section 404 of the Clean Water Act or as a means of resolving Section 404 enforcement actions.
Interested parties are hereby notified that a Prospectus has been received in order to authorize a mitigation bank for the purpose of mitigating impacts to waters of the United States authorized, or enforcement actions resolved, under section 404 of the Clean Water Act. As stated above, additional details and project plans are provided in the Prospectus, available online through RIBITS at the following link: https://ribits.ops.usace.army.mil/ords/f?p=107:10:::::P10_BANK_ID:7324
The San Francisco District will receive written comments on the proposed work, as outlined above, until December 14, 2025. Comments should be submitted electronically via the Regulatory Request System (RRS) at https://rrs.usace.army.mil/rrs or to:
Frances Malamud-Roam
San Francisco District, Regulatory Division
450 Golden Gate Avenue, 4th Floor
San Francisco, California 94102.
Frances.P.Malamud-Roam@usace.army.mil.
Comment letters should cite the Bank name, sponsor name, and public notice number to facilitate review by the Regulatory Permit Manager. All substantive comments will be forwarded to the applicant for resolution or rebuttal. Additional project information or details on any subsequent project modifications of a minor nature may be obtained from the applicant and/or agent or by contacting the Regulatory Permit Manager by telephone or e-mail (cited in the public notice letterhead). An electronic version of this public notice may be viewed under the Public Notices tab on the USACE website: https://www.spn.usace.army.mil/Missions/Regulatory.