state and local mitigation banks

State and local mitigation banks are protected areas set aside to offset environmental impacts caused by development projects, such as construction or infrastructure work. When a developer damages wetlands or other natural habitats, they can purchase credits from these banks to compensate for that loss, ensuring environmental health is maintained. These banks are established and managed by governmental agencies or approved organizations, ensuring that restoration, preservation, or creation of habitats reliably occurs. This system helps balance development needs with environmental conservation, promoting sustainable growth while minimizing harm to ecosystems.