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SECTION 4.0

ASSEMBLING THE MSHCP CONSERVATION AREA

Methods for assembling and equitably distributing the costs associated with the MSHCP Conservation Area have been the subject of extensive discussion and consideration by stakeholders, officials from state and federal Wildlife Agencies, private land owners and elected officials. The Western Riverside County MSHCP Advisory Committee, composed of representatives of private development groups, farming groups, environmental groups, and public agencies, helped to develop and recommend strategies for assembling and funding the MSHCP Conservation Area. The MSHCP, which incorporates the input from this diverse group of entities, offers a balanced approach to conserving species and Habitats while equitably distributing the costs.

The MSHCP establishes a framework for compliance with state and federal endangered species laws and regulations that accommodates future growth in the Plan Area. Without the MSHCP, the responsibility for conserving Endangered Species and their Habitats would rest only with those public and private entities whose activities directly affect declining species and their Habitats. The MSHCP distributes this responsibility for Conservation more widely under the assumption that the benefits of a successful MSHCP will be shared by a broader group that includes not only the existing and future communities within the MSHCP Plan Area but also the citizens of California and the United States. The following groups will directly benefit from the MSHCP; they will also share in the responsibility for implementing the MSHCP, which includes the costs associated with land acquisition and the long-term management and monitoring of those lands:

  • Federal and state governments. The U.S. Congress and the California legislature have determined that conserving species and their natural Habitats is an issue of both national and state importance. The federal and state governments will fulfill their responsibilities for Conservation by assisting local governments and property owners to assemble, manage, and monitor an MSHCP Conservation Area in Western Riverside County that will reduce or avoid the need to list additional species as threatened or endangered. The federal and state governments have significant lands under their jurisdictions that will contribute to the successful implementation of the MSHCP. The management and enhancement of the conservation values on federal and state lands is consistent with the mission of the state and federal Wildlife Agencies and will further the Conservation of Covered Species in Western Riverside County.
  • Local governments. Jurisdictions in the MSHCP Plan Area are responsible for contributing to the assembly of the MSHCP Conservation Area. Existing communities benefit from the preservation of their natural heritage and the visual and recreational values of regional open space in a consolidated and more functional manner than would occur without the Plan. Critical regional infrastructure and facilities that will benefit current and future residents of these communities are being identified and planned for as part of the overall RCIP process. Local governments will direct mitigation for impacts of public projects they undertake and private projects they approve toward assembling, managing, and monitoring the MSHCP Conservation Area.
  • Private landowners. Private landowners and developers benefit from the MSHCP because it establishes a local permitting process for the Incidental Take of Covered Species; this modified permitting process will reduce uncertainty about the future and eliminate the duplication of effort that often occurs when projects are reviewed and permitted piecemeal by the Wildlife Agencies. Private landowners and developers will direct mitigation efforts they undertake to address the impacts of their development projects; these efforts will contribute to the assembly, management, and monitoring of the MSHCP Conservation Area.
  • Current and future residents of Riverside County. Current and future residents of western Riverside County will benefit from the MSHCP because it establishes a process through which infrastructure projects that serve the County’s residents can be undertaken and conserves the County’s natural heritage for generations to come. Through the funding mechanisms identified in Section 8.0 of this document, current and future residents of Riverside County will contribute to the assembly, management, and monitoring of the MSHCP Conservation Area.

4.1 SUMMARY OF ACTIONS TO ASSEMBLE THE MSHCP CONSERVATION AREA

The MSHCP Conservation Area will contain approximately 500,000 acres of which approximately 282,000 acres are state or federal lands and approximately 56,000 acres are privately owned lands that will be acquired from willing sellers by state and federal agencies. Approximately 97,000 acres of private lands will be conserved through local development processes, including mitigation for impacts to biological resources as a result of development projects in the Plan Area. See Table 8-1. Existing and future federal and state lands will constitute 338,000 acres (68%) of the MSHCP Conservation Area, private sector Development will contribute 72,000 acres (14%), public infrastructure projects will contribute 25,000 acres (5%), and local public lands will contribute about 65,000 acres (13%).

The MSHCP Conservation Area will be assembled through a combination of the following methods:

  • Conservation of Existing Public Lands. The MSHCP Conservation Area incorporates maximum use of existing Public/Quasi-Public Lands to achieve conservation objectives.
  • Local Acquisition of Private Lands. Private property rights will be fully respected and upheld. Where public funds are used to acquire lands for the MSHCP Conservation Area, the lands will be acquired from willing sellers at fair market value or upon terms mutually satisfactory to the buyer and the seller. The MSHCP has been designed to avoid any unnecessary acquisition of private lands.
  • Federal and State Acquisition of Private Lands. Federal and state agencies will acquire lands within the Plan Area using processes specified in federal and state laws. Lands acquired by federal and state agencies for conservation purposes include lands acquired as mitigation for state and federal projects.
  • Private and Public Development Contributions. Private Development will contribute lands and/or funds for land acquisitions through the land-use entitlement process. Section 6.1.1 of this document describes the local implementation strategy that provides the framework for Conservation resulting from private development approvals.
  • Regional Infrastructure. A goal of the MSHCP is to facilitate the timely development of local and regional infrastructure. Mitigation efforts required as a result of these infrastructure projects will contribute to Reserve Assembly.

4.2 CONTRIBUTIONS OF EXISTING PUBLIC LANDS

4.2.1 Existing Federal and State Lands

Federal and state lands that contribute to the Conservation of Covered Species are summarized below. These lands total 282,198 acres, including approximately 247,789 acres of federal lands and 34,409 acres of state lands. Summary descriptions of these lands are included in the Description of Existing Reserves, Western Riverside County MSHCP (DUDEK 2000) on file with the County of Riverside Transportation and Land Management Agency.

Federal Lands
Name Ownership Acreage
Cleveland National Forest U.S. Forest Service  
San Bernardino National Forest U.S. Forest Service  
Prado Basin U.S. Army Corps of Engineers  
BLM Lands Bureau of Land Management  
Miscellaneous Lands   ___________
Total Acres 247,789
 
State Lands
Name Ownership Acreage
Lake Perris Recreation Area DPR  
San Jacinto Wildlife Area CDFG/DPR  
Chino Hills State Park DPR  
Anza Borrego Desert State Park DPR  
Mt. San Jacinto Wilderness State Park DPR  
Santa Margarita Ecological Reserve CSU/CDFG  
Santa Rosa Plateau Ecological Reserve CDFG  
Motte Rimrock Reserve UC Regents  
Box Springs Reserve UC Regents  
Miscellaneous Lands Miscellaneous ___________
Total Acres   34,409

4.2.2 Existing Local Government Lands

Local government lands that will contribute to the Conservation of Covered Species are summarized below. These lands total approximately 64,330 acres, including approximately 9,000 acres of open water lakes. Summary descriptions of these lands are included in the Description of Existing Reserves, Western Riverside County MSHCP (DUDEK 2000) on file with the County of Riverside Transportation and Land Management Agency.

Name Ownership Acreage
Kabian Park County of Riverside  
Norton Younglove/De Anza Reserve County of Riverside  
Harford Springs Reserve County of Riverside  
Box Springs Mountain Reserve County of Riverside  
Santa Ana Regional Park County of Riverside  
Lake Skinner Recreation Area MWD  
RCHCA Lands RCHCA  
Orange County Water District Lands OCWD  
Sycamore Canyon Wilderness Park City of Riverside  
Lake Mathews/Estelle Mtn Reserve MWD/DFG (and others)  
Southwestern Riverside County    
Multi-Species Reserve MWD (and others)  
Other MWD Lands MWD  
Riverside County Flood Control Lands RCFCWD  
Miscellaneous Lands Miscellaneous ___________
Total Acres   64,330

 


 

4.3 CONSERVATION OF PRIVATELY OWNED LANDS

Most of the privately owned lands within the Criteria Area are located in the unincorporated County and six of the cities participating in the MSHCP: Murrieta, Lake Elsinore, Temecula, Perris, Hemet and San Jacinto. To assemble the MSHCP Conservation Area, significant acreages of private lands will be acquired by federal, state, or local agencies in these jurisdictions.

In estimating acquisition needs, the jurisdictions and Wildlife Agencies recognized that each jurisdiction will contribute its fair share of the MSHCP Conservation Area lands through the land-use entitlement process. Therefore, each jurisdiction’s implementation program incorporates a combination of mechanisms for Conservation. Section 6.1.1 identifies the mechanisms the jurisdictions will use to contribute lands to the MSHCP Conservation Area.

Tables 4-1 and 4-2 show the estimated Conservation of private lands by Vegetation Community and Area Plan.

TABLE 4-1
ESTIMATED CONSERVATION OF HABITAT ON PRIVATE LANDS
IN PLAN AREA BY VEGETATION COMMUNITY
Vegetation Category Acreage Range
Agricultural Land 6,150-10,930
Chaparral 46,730-83,070
Coastal Sage Scrub 33,960-60,370
Desert Scrubs 2,650-4,700
Grassland 14,410-25,610
Meadows and Marshes 160-280
Montane Coniferous Forest 10-22
Peninsular Juniper Woodland and Scrub 240-430
Playas and Vernal Pools 2,760-4,900
Riparian Scrub, Woodland, and Forest 2,820-5,020
Riversidean Alluvial Fan Sage Scrub 2,280-4,060
Water 860-1,520
Woodlands and Forests 1,720-3,060
Total 114,750-203,970*
* Totals may not add up accurately due to rounding.

 


 

TABLE 4-2
ESTIMATED CONSERVATION OF HABITAT ON PRIVATE LANDS
IN PLAN AREA BY AREA PLAN
Area Plan and Associated Cities Acreage Range
Eastvale  
Unincorporated County 150-290
Total 150-290
Elsinore  
Unincorporated County 6,700-10,940
Canyon Lake 30-50
Lake Elsinore 4,830-7,870
Total 11,560-18,860
Harvest Valley/Winchester  
Unincorporated County 410-630
Total 410-630
Highgrove  
Unincorporated County 310-610
Total 310-610
Jurupa  
Unincorporated County 930-1,850
Total 930-1,850
Lake Matthews/Woodcrest  
Unincorporated County 3,090-5,610
Total 3,090-5,610
Lakeview/Nuevo  
Unincorporated County 6,700-10,260
Total 6,700-10,260
March  
Unincorporated County 0
Total 0
Mead Valley  
Unincorporated County 1,190-2,250
Perris 720-1,400
Total 1,910-3,650
REMAP  
Unincorporated County 35,060-65,100
Total 35,060-65,100
Reche Canyon/Badlands  
Unincorporated County 9,770-16,290
Moreno Valley 80-130
Total 9,850-16,420
San Jacinto Valley  
Unincorporated County 9,280-16,140
Hemet 620-1,000
San Jacinto 1,580-2,680
Total 11,480-19,820
Southwest Area  
Unincorporated County 18,140-34,440
Murrieta 1,580-3,200
Temecula 600-1,380
Total 20,320-39,020
Sun City/Menifee  
Unincorporated County 1,120-1,580
Total 1,120-1,580
Temescal Canyon  
Unincorporated County 3,020-5,360
Corona 330-610
Total 3,350-5,970
The Pass  
Unincorporated County 1,670-2,730
Banning 50-90
Beaumont 5,440-9,060
Calimesa 1,240-2,240
Total 8,400-14,120
Cities of Riverside and Norco  
Norco 60-140
Riverside 50-130
Total 110-270

 


 

4.4 THE ROLE OF FEDERAL AND STATE GOVERNMENTS IN RESERVE ASSEMBLY

Sensitive species and their Habitats are public resources; the benefits of protecting these resources accrue broadly to the citizens of the state and the nation. The federal and state governments have acknowledged their role in Conservation and agree to assist in creating an MSHCP Conservation Area that reduces or avoids the need to list additional species and contributes to the recovery of Covered Species. Through the MSHCP and its Implementing Agreement with the participating jurisdictions and special districts, the federal and state governments have agreed to partner with the participating local jurisdictions and the private sector in assembling, managing, and monitoring the MSHCP Conservation Area. The federal and state governments will undertake the following actions:

  • Provide for the Conservation and management of Covered Species and their Habitats on approximately 282,000 acres of existing federal and state lands, excluding military lands except U.S. Army Corps of Engineers lands noted in Section 4.4.1;
  • Acquire approximately 56,000 acres of privately owned lands in the Criteria Area from willing sellers of which approximately 6,000 acres will be mitigation for State Permittees;
  • Manage federal and state lands; and
  • Participate in the monitoring program.

4.4.1 Existing Federal and State Lands

Federal lands within the Plan Area include lands administered by the U.S. Forest Service (USFS).

➤ U.S. Forest Service

The USFS lands within the MSHCP Plan Area include portions of Cleveland and San Bernardino National Forests, including all or part of the San Mateo Canyon Wilderness, Agua Tibia Wilderness, San Gorgonio Wilderness Management Area, and San Jacinto Wilderness. Congress has directed the USFS to manage national forests for multiple uses and benefits, including protection and management of natural resources; forestry and range land management and research; and community assistance and cooperation with state and local governments.

➤ U.S. Bureau of Land Management

The BLM manages Habitat in the region for multiple objectives, including protection and management of natural resources; forestry and range land management and research; and community assistance and cooperation with state and local governments. BLM lands occur throughout the Plan Area, including small parcels ranging from one to 40 acres in size.

➤ U.S. Army Corps of Engineers (Department of Defense)

In the Plan Area, the ACOE maintains and operates their facilities within the Prado Flood Control Basin, including the Prado Dam.

➤ State of California

The State of California administers important Habitat within the Plan Area, including lands managed by the California Department of Parks and Recreation (DPR), California Department of Fish and Game (CDFG), California State University (CSU), and the Regents of the University of California (UC Regents). The UC Regents administer the Motte Rimrock and Box Springs Reserves, which allow limited public access, as research and instructional sites.

➤ California Department of Parks and Recreation (DPR)

The mission of DPR is to provide for the health, inspiration, and education of the people of California by helping to preserve the state’s extraordinary biological diversity, protecting its most valued natural and cultural resources, and creating opportunities for high-quality outdoor recreation. DPR lands (some jointly managed with CDFG) within the Plan Area include all or portions of Lake Perris Recreation Area, San Jacinto Wildlife Area, Chino Hills State Park, Anza Borrego Desert State Park, and Mt. San Jacinto Wilderness State Park.

➤ California Department of Fish and Game (CDFG)

The mission of CDFG is to manage California’s diverse fish, wildlife, and plant resources and the Habitats upon which they depend for their ecological values and for their use and enjoyment by the public. CDFG lands within the Plan Area include all or portions of San Jacinto Wildlife Area, Santa Margarita Ecological Reserve and Santa Rosa Plateau Ecological Reserve.

4.4.2 Habitat Acquisitions by Federal and State Governments

The federal government and State of California have committed to acquire and contribute in the aggregate approximately 56,000 acres. Of this acreage, approximately 6,000 acres will be mitigation for State Permittees’ projects. Biological value, cost, vulnerability to Development, and proximity to existing Public/Quasi-Public Lands will be considered in determining which lands are acquired.

If, after the exercise of all available authority and utilization of all available resources, the federal and/or state contribution committed to the MSHCP Conservation Area cannot be provided, the MSHCP will be reevaluated, with possible adjustments made to Permit coverage and assurances, given the extent of the federal/state contribution.

The federal and state governments may use various methods including but not limited to the following to acquire privately owned Habitat:

  • Direct purchase from willing sellers/landowners using appropriated funds
  • Cooperative federal/state programs for the Conservation of Endangered or Threatened Species
  • Land exchanges (including bundling lands for sale or exchange)
  • Grants and matching funds
  • Tax credits
  • Purchases of mitigation for state or federally funded projects
  • Other methods including land acquisition through the Base Closure and Realignment Program and the Federal Deposit Insurance Corporation

The following state and federal programs are among the potential funding sources for land acquisition:

  • Land and Water Conservation Fund Appropriations
  • Grant funds from entities such as Wildlife Conservation Board
  • National Fish and Wildlife Challenge Grants
  • Federal funds provided pursuant to Section 6 of the FESA
  • Transportation Enhancement Act Funds
  • State Bond Acts
  • Funds generated from sale of public agency lands
  • Federal aid programs

4.4.3 Additional Federal and State Contributions

The following non-acquisition contributions are expected to be provided by federal and state governments:

  • Management of federal and state lands for the benefit of the species addressed in the MSHCP and in accordance with adaptive management plans incorporated in the MSHCP
  • Consideration of Reserve Assembly, Conservation, and management when federal and state lands are being exchanged or sold
  • Facilitation of ecological research or restoration activities by other entities on federal and state lands that benefit MSHCP resources
  • Participation in the monitoring program

➤ Mitigation for Federal and State Projects

Consistent with existing law, federal and state agencies will mitigate the impacts of their projects within the MSHCP Plan Area through the purchase and/or protection of Habitat within the Criteria Area. Potential federal and state projects that would require mitigation include state and federal highways, highway appurtenances, off-road vehicle recreation areas, and recreation-associated facilities.

4.5 ACTIONS BY LOCAL GOVERNMENTS

Riverside County’s previous experience with conservation planning has convinced local residents and elected officials that, to be successful, responsibility for implementing the Plan must be broad based. Local jurisdictions and stakeholders recognize their responsibility in planning for the region’s future and in addressing species Conservation through their funding of a proportionate fair share of the MSHCP costs. The MSHCP balances the requirements of species Conservation with the protection of private property rights.

The MSHCP’s strategy for assembly of the MSHCP Conservation Area takes a balanced approach; it allocates responsibility for assembling the MSHCP Conservation Area equitably among the County of Riverside, the 14 Cities in Western Riverside County, and private and public entities engaged in construction activities that potentially impact Covered Species. It sets forth the obligations of local projects, both public and private, to mitigate for their impacts on species. The implementation strategy relies heavily on incentives to encourage private property owners to conserve their lands. Where incentives are not sufficient, Conservation will require the purchase of properties from willing sellers. The Local Permitees will carry out the following actions:

  • Contribute approximately 64,330 acres of existing locally owned Public/Quasi-Public Lands to permanent Conservation and management
  • Acquire approximately 56,000 acres of privately owned Habitat from willing sellers to be incorporated into the MSHCP Conservation Area
  • Contribute approximately 41,000 acres for permanent Conservation and management by working with proposed development projects; using incentives and existing local, state, and federal regulations; and identifying physical and topographical constraints to Conservation
  • Manage and monitor the local share of the MSHCP Conservation Area.

4.5.1 Non-Acquisition Means of Conservation by Local Governments

Privately owned Habitat may be acquired for the MSHCP Conservation Area by using alternative methods that do not require spending public funds. Among these non-financial methods are land exchanges, fast-tracking, waiver and/or reduction of certain development fees, density bonuses, transfer of development rights, private land donations, and tax credits.

Land exchanges may involve developable lands owned by public agencies that could be exchanged for private lands within the Criteria Area. Such exchanges could also occur between public entities.

Conservation partially accomplished using density bonuses, transfer of development rights, and other incentives available under the new Riverside County General Plan may also result in Additional Reserve Lands.

Private landowners may donate Habitat to Wildlife Agencies, local governments, or qualified nonprofit conservation organizations. Alternative forms of donation include the following:

  • Gift of fee title
  • Donation with the retention of a term or life estate
  • Sale at fair market value and donation of a portion of the fair market value
  • Use of tax credits
  • Use of state and federal programs for Conservation of agricultural lands

➤ Prior Commitment of Funds for Habitat Management

Previously approved HCPs or private conservation banks and mitigation areas may provide for the long-term management of the Habitats conserved. The MSHCP anticipates that lands conserved under these programs will contribute to the overall MSHCP Conservation Area. The funding and other management obligations of the owners of these previously conserved properties will continue pursuant to the terms of their respective agreements.

4.5.2 Additional Reserve Assembly by Local Governments

The local jurisdictions participating in the MSHCP will be collectively responsible for assembling approximately 97,000 acres of land for the MSHCP Conservation Area. They will also be responsible for the management, monitoring, and administrative costs of these lands. Mechanisms for funding these responsibilities are described in Section 8.0 of this document.

As described in Section 8.0, in the event that adequate regional funding for the MSHCP is not provided, the Wildlife Agencies will assess the impact of the funding deficiency on the scope and validity of the Take Authorizations. The Wildlife Agencies and jurisdictions will meet and confer to develop a strategy to address the funding shortfall and will undertake all practicable efforts to maintain the level of coverage afforded by the Take Authorizations under the program until the situation can be remedied.

Methods. Securing funds for local acquisition of lands for the MSHCP Conservation Area will be carried out by the Western Riverside County Regional Conservation Authority. The Western Riverside County Regional Conservation Authority will purchase Habitat from willing sellers; funds will be obtained from one or more regional funding sources. Some lands will be acquired using the Habitat Acquisition and Negotiation Strategy (HANS) Process or other mechanisms described in Section 6.1.1 of this document. Habitat lands may be purchased in fee or as less than fee interest; for example, a permanent conservation easement may be recorded in favor of a public agency or qualified nonprofit conservation organization. The standard conservation easement form shown in Appendix D shall be used. Habitat preserved on private lands as a result of development regulations that require the avoidance of impacts may be transferred in fee title to a government or nonprofit agency if the landowner voluntarily dedicates the land. Any mitigation lands contributed to the Additional Reserve Lands shall be protected in perpetuity, and recorded documents shall provide rights of access for monitoring and management of the lands by the Permittees, their designees and the Wildlife Agencies and their designees on the property consistent with achieving the biological goals of the MSHCP. Lands may also be acquired through exchanges of local government lands or through a transfer-of-development-rights program.

Baseline Measurements. February 3, 2000, the date of execution of a letter agreement between the Wildlife Agencies and the County regarding land acquisitions for the MSHCP Conservation Area, is the baseline date for computing public acquisition by federal, state, and local governments. Lands acquired by the local jurisdictions or by federal and state governments that contribute to achieving the MSHCP conservation goals and that are acquired after the baseline date will be credited toward meeting their respective acquisition obligations under the MSHCP. Table 4-3 summarizes lands conserved between February 3, 2000, and July 31, 2002, that contribute to Reserve Assembly.

TABLE 4-3
MSHCP RESERVE ASSEMBLY
LANDS CONSERVED BETWEEN FEBRUARY 3, 2000 AND JULY 31, 2002
Area Plan Acquired in Fee
(acres)
Conservation through
development review
(acres)
Total Lands Conserved
between 2/3/00 and 7/31/02
(acres)
SWAP 1,742.0 171.0 1,913.0
Sun City/Menifee   74.0 74.0
Highgrove   251.4 251.4
Reche Canyon/Badlands 118.1 40.0 158.1
REMAP 1,004.4   1,004.4
Jurupa 186.0   186.0
Elsinore 40.0   40.0
TOTAL 3,626.9

4.6 PRIVATE CONSERVATION OR MITIGATION AREAS/ CONSERVATION BANKS

A conservation bank is land that is permanently conserved and managed for its natural resource values; it sells conservation credits to private or public entities that are required to mitigate for their impacts on natural resources. A mitigation area is an area with resource value, where the owner records a conservation easement on the property and sells mitigation credits prior to the execution of a mitigation banking agreement with the Wildlife Agencies. Mitigation areas are permanently conserved and managed for natural resource values. Conservation banks and mitigation areas are intended to protect resources in large, connected areas in advance of the need for mitigation and therefore are considered a valuable tool for assembling the MSHCP Conservation Area.

4.6.1 Private Conservation Banks and Mitigation Areas in the MSHCP Plan Area

As of July 2002, the following informal conservation banks and mitigation areas have or are in the process of recording a conservation easement and are selling acres to parties seeking Mitigation Lands; all of the conservation banks and mitigation areas may have draft mitigation banking agreements and/or draft or approved management plans:

  • Goldrich – 445 acres, 322.63 credits remaining for sale (May 15, 2000)
  • Silverado Ranch – 2,480 acres, 2,260 credits remaining for sale
  • Wilson Valley/Won Yoo – 1,280 acres, 288.05 credits remaining for sale
  • Sedco Hills – 180 acres, 75 credits remaining for sale
  • Wilson Creek/Joe A. Gonzalez – 1,850 acres, 1,161.70 credits remaining for sale
  • Four Seasons – 99 acres (easement pending), 99 credits remaining for sale
  • North Peak – 789.27 acres, 373 credits remaining for sale.

The MSHCP considers the remaining acres within these private conservation banks and/or mitigation areas noted above to be included within the estimates of privately owned Habitat that will be conserved. The MSHCP anticipates the Conservation of these areas, whether through the sale of acres or through other mechanisms as may be negotiated between the parties and the owners of the banks. However, the Permittees are not obligated to purchase any acres in any existing conservation bank or mitigation area. Moreover, remaining acres in mitigation banks are considered conserved under the Plan only after such acres are conserved pursuant to the Plan. Owners of conservation banks and mitigation areas may choose to initiate the HANS Process as set forth in Section 6.1.1 of this document.

In addition to Conservation of the mitigation bank lands through the processes described above, such lands may be purchased as “In-lieu Payments” of the Local Development Mitigation Fee. In lieu of payment of the Local Development Mitigation Fee, a private project applicant may elect to acquire acreage from a conservation bank ("In-lieu Payment"). In order for a project applicant to utilize an In-lieu Payment, the following conditions must be met:

  1. The conservation bank must be listed in Section 4.6.1 of the MSHCP.
  2. The conservation bank owner must have executed a formal, written banking agreement with the Wildlife Agencies within twelve months of Permit issuance. If the conservation bank owner has taken all necessary actions to execute the banking agreement and the Wildlife Agencies fail to execute the agreement within this time frame, the bank owner, at his/her discretion, will either extend this time period for an additional 12 months or provide to the RCA and the Wildlife Agencies an irrevocable offer to record conservation easements on the conservation bank property.
  3. The In-lieu Payment must be at a 1:1 ratio to gross area of project impact, (i.e. for every acre of Development, at least one acre of land would have to be acquired from a conservation bank).
  4. For conservation bank lands that have been conserved on or before June 17, 2003, the bank owner/operator or management entity retained by the bank owner/operator must use best efforts to manage the lands consistent with and pursuant to Section 5.0 of the MSHCP. Alternatively, the bank owner/operator will transfer management of the lands with all related financial commitments for the management and monitoring of such lands, such as endowments, to the RCA, to the extent legally feasible. In the event that neither of the above options is feasible, the bank owner/operator shall cooperate with the RCA to allow any additional management activities to occur on the conservation bank lands, including but not limited to access, to ensure that management will occur pursuant to Section 5.0 of the MSHCP.
  5. For conservation bank lands that have not been conserved on or before June 17, 2003, the conservation bank must be managed by the bank owner/operator or management entity retained by the bank owner/operator consistent with and pursuant to Section 5.0 of the MSHCP.
  6. The conservation bank acreage relied upon for the In-lieu Payment must be contained in the bank as of June 17, 2003, as reflected in Section 4.6.1 of the MSHCP, located within the Criteria Area and contribute to Reserve Assembly.
  7. The conservation bank owner/operator must provide written documentation to the RCA proving the availability of adequate acreage to meet project requirements.

The RCA must approve all In-lieu Payments pursuant to the provisions of this Section as early as possible but in no instance later than grading permit issuance. The bank owners may at any time initiate negotiations for acquisition of any remaining acreage in the bank.

4.6.2 Establishment of Future Private Conservation Banks or Mitigation Areas

Private parties may establish private conservation banks or mitigation areas. Proposed conservation banks or mitigation areas should follow the official policy adopted by the California Resources Agency and the California EPA as well as the supplemental policy issued by the USFWS and CDFG for the NCCP region of Southern California and recent USFWS Conservation Banking Guidance. An owner of Habitat may voluntarily conserve Habitat or purchase Habitat in anticipation of the future sale of mitigation credits. Establishment of new conservation banks or mitigation areas typically occurs in conjunction with market conditions, and credits from such banks would be acquired to the extent that a market exists for such credits; however, because of the HANS process and the fee-based mitigation program, it is not anticipated that any new conservation banks or mitigation areas will be established. The Wildlife Agencies will consult with the Western Riverside County Regional Conservation Authority when any proposals are received for new private conservation banks within the MSHCP Plan Area. The Parties shall not be obligated to purchase any credits in any future private conservation banks or mitigation areas. However, should the RCA enter into a negotiation with an owner of a conservation bank/mitigation area including lands that are subject to banking agreements or conservation easements and for which a management agreement exists, the RCA would negotiate the management obligation along with the acquisition.

4.7 Indirect Fiscal Impacts of the MSHCP

The acquisition of privately held lands for conservation purposes may have direct and indirect fiscal impacts on local jurisdictions. A local jurisdiction may be negatively impacted as a result of a reduction in current and/or future property tax revenues, a reduction in potential for future generation of sales tax revenues, a reduction in the number of new dwelling units or commercial or industrial spaces, and the loss of productive agricultural lands. Jurisdictions may be positively affected by the streamlining of the regulatory process because it will expedite Development and subsequently, revenue generation. These impacts are not distributed equally among all jurisdictions in the MSHCP Plan Area. Mitigation of fiscal impacts, whether positive or negative, on local jurisdictions is not included in the MSHCP financing plan.