Bonds and Insurance for the Conservation and Ecological Restoration Market
We serve sponsors, contractors, regulators and other stakeholders within the conservation and ecological restoration market.
Why Choose Great American?
- Expertise: Our leadership’s more than 35 years of combined field experience in conservation, restoration, resource management and related financial assurance enables our team to underwrite and support complex risks across a broad spectrum.
- Flexibility: Conservation and ecological restoration projects often require novel or bespoke solutions. We deliver annual and multiyear solutions, from construction to close out of the project, and accommodating changing limit requirements to meet the needs of sponsors, regulators, and other project stakeholders.
- Limits Tied to Performance: The limits under our programs do not automatically change based on the calendar. Rather, limits for project phases remain in place until the subject regulatory agency approves the applicable report triggering a limit reduction or increase. This helps avoid unwanted compliance issues and delays with regulators relating to limits in effect.
- Timely Indications & Quotes: We typically deliver indications within one (1) business day and quotes within two (2) days of a completed application.
- Longevity: For more than 155 years, organizations and people have trusted us to protect them.
Covered Conservation and Restoration Activities
We underwrite conservation and ecological restoration activities including:
- Stream & River: Restoration, rehabilitation, or reclamation of streams and rivers to a pre-disturbed state.
- Riparian Restoration: Stream bank planting and erosion control to improve nutrient absorption and improve water quality.
- Wetland Restoration: Restoration, rehabilitation, or recreation of wetland hydrology and habitat.
- Habitat Restoration: Activities on protected lands that preserve genetic diversity, prevent species extinction, and support recovery of endangered species.
- Native Species Planting: Planting native species to improve and preserve diverse habitat.
- Invasive Species Removal and Control: Managing invasive species to preserve natural habitat.
Financial Assurance for Compensatory Mitigation
Compensatory mitigation is a requirement under the Clean Water Act (“CWA”) stipulating that unavoidable adverse impact to wetlands resulting from development must be offset by an equal positive impact. The offsetting positive impact is derived from projects that restore, establish, enhance, and preserve wetlands, streams, and other aquatic resources.
We underwrite specialized, multiyear performance bonds and insurance policies that meet the project-specific financial assurance requirements of federal and state regulators:
- Mitigation Banks: A wetland, stream, or other aquatic resource area that has been restored, established, enhanced, or preserved for the purpose of providing compensation for unavoidable impacts to aquatic resources permitted under Section 404 of the CWA.
- Permittee-Responsible Mitigation (“PRM”): Restoration, establishment, enhancement, or preservation of wetlands undertaken by a permittee to compensate for unavoidable wetland impacts resulting from their own project(s). PRM may occur at the site of the permitted impacts or at an off-site location within the same watershed.
- In-Lieu Fee: Mitigation that occurs when a permittee provides funds to an in-lieu-fee sponsor (a public agency or non-profit organization). The in-lieu fee sponsor is responsible for the success of the mitigation. Like mitigation banking, in-lieu fee mitigation is also "off-site," but unlike mitigation banking, it typically occurs after the permitted impacts.
- Civil Works: Projects that do not generate offset credits, but the underlying work is to restore, establish, enhance, and preserve wetlands, streams, and other aquatic resources.
USF&W permits conservation banks involving protected lands permanently managed for species that are endangered, threatened, candidates for listing, or are otherwise at risk.
NCRS permits mitigation banks on agricultural lands that restore original wetlands, enhance existing wetlands, or create new wetlands.
- Departments of Environmental Quality (“DEQs”) or Environmental Protection (“DEPs”). Examples include NC DEQ, Division of Mitigation Services, NJ DEP and VA DEQ.
- Fish, Wildlife & Land Agencies. Examples include KS Dept. of Wildlife & Parks and OR Dept. of Lands.
Other Programs
Regulatory permitting agencies, grantors and funders often require bonds, also known as performance security, to guarantee that ecological outcomes and project performance standards are met. Performance bonds protect the environment by safeguarding societal investment in mitigation, conservation, and ecological restoration projects. We serve mitigation providers, grantees, contractors, and other stakeholders required to place bid, performance, or payment bonds in connection with such projects.
State agencies often require performance security to guarantee project outcomes and to protect the state from the burden of unmet ecological performance obligations. Examples include:
- California Fish and Game Code (CFGC):
- Lake and Streambed Alteration (LSA) Program: The California Department of Fish and Wildlife (CDFW) accepts bonds as performance security to ensure that permitted activities do not substantially divert, obstruct, or alter the natural flow of any river, stream, or lake.
- Incidental Take Permit (ITP): CDFW allows permittees under infrastructure and other public benefit projects to minimally impact species listed under the California Endangered Species Act. Performance Security is often required to guarantee that impacts fall within the accepted parameters and to provide funds to mitigate for unintended impacts.
- Natural Community Conservation Planning Program (NCCP): Performance security under CDFW’s NCCP ensures that the permittee fulfills their obligations relate to habitat conservation and mitigation measures. Performance bonds guarantee that conservation measures defined under the NCCP Agreement are implemented even if the permittee fails to complete the project.
- Coastal Development Permit: The California Coastal Commission permits development activities within the coastal zone to ensure compliance with the Coastal Act. Depending on the scale and nature of potential impact, permit conditions may require performance security.
- State Water Resources Control Board (SWRCB): Certain projects funded by the SWRCB may require bonds or other forms of financial security. This is particularly true for projects funded through the Clean Water State Revolving Fund (CWSRF) and the Storm Water Grant Program (SWGP).
- H2Ohio: An Ohio water quality initiative guided by science and data to reduce algal blooms, stop pollution, and improve access to clean drinking water by supporting best farming practices, road salt runoff reduction, litter cleanup, dam removal, land conservation, and water infrastructure revitalization.
- Maryland Department of the Environment, Clean Water Commerce Act (“CWCA”): The CWCA provides an opportunity for private sector investments to efficiently reduce sediment and nutrient pollution entering Chesapeake Bay. The State is able to purchase these pollution reductions using the Bay Restoration Fund.
Examples include:
- Great Lakes Restoration Initiative ("GLRI"): GLRI accelerates efforts to protect and restore the largest system of fresh surface water in the world – the Great Lakes.
- US Fish and Wildlife Service (USFWS):
- Ecosystem Restoration Program (ERP): This program focuses on the restoration and conservation of natural habitats and ecosystems. Habitat restoration and invasive species control projects funded under this program often require bid, performance, and payment bonds.
- American the Beautiful Challenge Grant Program: This is a public-private grant program for locally led ecosystem restoration projects that invest in watershed restoration, resilience, equitable access, workforce development, corridors and connectivity, and collaborative conservation. Recipients may be required to post bid, performance, and payment bonds.
- Natural Resources Conservation Service (NRCS)
- Environmental Quality Incentives Program (EQIP): This program provides financial and technical assistance to agricultural producers to implement conservation practices. Performance bonds may be required to ensure compliance with contract terms.
- Conservation Stewardship Program (CSP): The CSP encourages producers to maintain and improve their existing conservation systems. Performance bonds may be required to guarantee the implementation of conservation practices.
- Agricultural Conservation Easement Program (ACEP): The ACEP helps protect agricultural lands and wetlands. Performance bonds may be required to ensure that easement terms are met, and conservation practices are implemented.
Nonprofit conservation organizations such as The Nature Conservancy, Ducks Unlimited, land trusts, and resource conservation districts receive private, state, and federal funds for habitat restoration to distribute through competitive grants. We offer specialized bonds for grantees under a wide variety of programs aimed at restoring America’s natural resources.
Local governments play a significant role in ecological restoration efforts, often collaborating with federal and state agencies, nonprofit organizations, and community groups to implement restoration projects. Wetland restoration, urban forestry, and invasive species management projects undertaken by municipalities are often contracted through competitive bid programs that require bid, performance, and payment bonds.