Companies that establish mitigation banks in North Carolina work with EEP by selling compensatory-mitigation credits to the program. EEP purchases credits from banks through two mechanisms: 1) waiver of competition, and 2) a full-delivery procurement process. EEP has established a new proposal to increase opportunities to purchase credits from established mitigation banks.
PROPOSAL TO SELL CREDITS TO EEP
EEP is pursuing the means to increase opportunities to purchase credits from established mitigation banks. At present, EEP purchases credits from banks through two mechanisms: 1) waiver of competition, and 2) a full-delivery procurement process.
Waiver of Competition
The waiver of competition may be used when there are relatively small quantities of need to meet its compliance issues, and when it is both ecologically and fiscally beneficial to the state. Under such a system, EEP must justify and secure permission from the NCDENR Purchase and Services Division. This process has been used on an infrequent basis, and where only one bank has credits of need in the appropriate service area.
Full-Delivery Procurement Process
Mitigation banks may participate in a full-delivery request for proposal. This process is usually structured for larger credit quantities and based on a value award system. Mitigation banks may compete with other suppliers who are qualified for the solicitation. For additional information, please visit the Full Delivery Program.
Establishing a New Procedure
In anticipation of an increased number of mitigation banks across the state, the program is working with the Department of Administration, Purchase and Contracts Division, and the DENR Purchase and Services Division to streamline bank purchases in certain circumstances. This new method will likely apply to those cases where multiple banks exist in an area of EEP need.
If sufficient banks exist within an appropriate service area, a direct solicitation to those banks may be possible through pertinent procurement rules. It is expected that this system will provide more advance mitigation and a faster procurement process. Sponsors for existing or proposed mitigation banks are encouraged to fill out the voluntary Mitigation Banking Questionnaire to help EEP establish this new procedure.