S425 Summary

• Reorganizes the North Carolina Ecosystem Enhancement Program (NCEEP) to establish a four-tiered mitigation procurement preference system prioritizing full delivery and private bank credits over other methods.

• Defines new categories of compensatory mitigation banks, distinguishing between private compensatory mitigation banks and existing local compensatory mitigation banks operated by units of local government with pre-July 1, 2011 agreements.

• Excludes units of local government from the definition of "government entity" unless they were party to a mitigation banking instrument executed on or before July 1, 2011, effectively limiting their role in future mitigation activities.

• Requires existing local compensatory mitigation banks to comply with public property disposal requirements under G.S. 160A-12 when transferring mitigation credits to other parties.

• Makes regulatory requirements for mitigation banks and full delivery projects vest at the time the Mitigation Banking Instrument is executed or full delivery contract is awarded, providing regulatory certainty going forward.