VMRC presents revised mitigation-compensation policy; Lancaster board to draft ad-hoc in-lieu fee language

County staff and a representative from the Virginia Marine Resources Commission (VMRC) summarized an amended VMRC wetlands mitigation-compensation policy adopted in February 2025 that changes the recommended sequence of mitigation options and provides guidance on when ad-hoc in-lieu fees may be used.

Justin Worrall of VMRC said the updated policy prefers mitigation via private mitigation banks or VARTF (e.g., Nature Conservancy sites) when available; on-site compensation and in-lieu (ad-hoc) fee options are now lower in the sequence and permitted only after other options are exhausted. Worrall noted the guidance includes performance-bond or letter-of-credit requirements and a 2-to-1 in-lieu fee recommendation when the ad-hoc option is used. He also emphasized that boards should first decide whether a proposed project is appropriate for the site before debating compensation and then document any compensation decision clearly in the record.

Board members asked about the policy’s trigger (a recent General Assembly action led to the change), enforcement concerns, how often VMRC overturns local boards (Worrall said overturns are infrequent, maybe once or twice a year), and whether local mitigation banks or partnerships exist (examples such as Virginia Beach creating a bank were discussed). Staff said the county will draft ordinance language to add an ad-hoc in-lieu fee option and will consult the county attorney to ensure compliance with state code.

VMRC urged caution about using in-lieu fees as a primary tool because counties collecting funds historically hold them without adequate opportunities to create or purchase wetlands; VMRC prefers professional banks that maintain mitigation sites in perpetuity. The board acknowledged those risks and agreed to pursue model language and coordination with VMRC and county legal counsel before changing county code.