Conn. Gen. Stat. § 22a-32a: Watershed-level compensatory mitigation. Authorization. Requirements. Contracts. Program.

(a)(1) Notwithstanding the provisions of this chapter and chapter 444 and sections 22a-361 and 22a-363b, the Commissioner of Energy and Environmental Protection may require, as a condition of any permit issued pursuant to section 22a-32, 22a-42, 22a-361 or 22a-363b, or as a condition of any certification regarding water quality pursuant to 33 USC 1341, watershed-level compensatory mitigation to offset impacts to water resources caused by any regulated activity (A) that is authorized under permit actions and conducted by any department, agency or instrumentality of the state, except any local or regional board of education, or (B) that is authorized under permit actions for activities within the public trust, including, but not limited to, impacts to inland wetlands and watercourses, tidal wetlands and coastal waters.

(2) The commissioner may include conditions for any license or certification referenced in subsection (a) of this section only if the commissioner determines that the applicant has demonstrated that: (A) It is not prudent to further minimize impacts of the regulated activity, and (B) for licensees or certificates that authorize actions for activities within the public trust, the commissioner additionally determines that the applicant has demonstrated that the watershed-level mitigation project will provide substantial public benefit.

(3) The commissioner may enter into any contract or agreement with any contractor, state agency or federal agency in order to implement the provisions of this section.

(b) Provided the requirements of subdivision (2) of subsection (a) of this section are met, the commissioner may require one or both of the following actions by the permittee: (1) The purchasing of resource credits to provide compensation, in an amount established by the commissioner, to fund compensatory mitigation projects, or (2) participation in a compensatory mitigation project in lieu of a fee program or mitigation bank that has been approved for use by the United States Army Corps of Engineers and the Department of Energy and Environmental Protection.

(c) Any land purchase, conservation easement or other protective instrument used as a compensatory mitigation project pursuant to this section shall be held by a third party, unless the commissioner determines it is in the interest of the state for the state to hold the asset. All lands or interests in land acquired pursuant to this section shall be preserved in perpetuity for the protection of the wetland and hydrological functioning.

(d) Any watershed-level mitigation project pursued in accordance with this section shall create, restore or enhance the same or similar types of water resource to be impacted by the regulated activity and such compensation shall be proportional to the impacts caused by the proposed regulated activity.

(e) All watershed-level compensation resources acquired pursuant to this section shall be adequately protected, in perpetuity, to protect the water resources subject to mitigation under this section.

(f) (1) The commissioner shall issue, and may periodically reissue, a request for proposals for contractors who will develop a watershed-level mitigation program. Any such selected contractor shall be responsible for identifying potential watershed-level mitigation project locations for the commissioner's approval and performing wetland and water resource creation, restoration or enhancement projects, including providing for such project's long-term management. The request for proposals may include any elements necessary for operation of the watershed-level mitigation program, as determined by the commissioner. In evaluating contractors for selection under any such request for proposals, the commissioner shall evaluate contractor qualifications that include, but are not limited to, sufficient financial resources to monitor and maintain any mitigation project for the appropriate time periods and sufficient and reliable demonstration of financial controls to administer the accounts necessary to conduct, monitor and maintain any such projects. The commissioner may select one or more contractors to carry out the purposes of this section.

(2) Any contractor selected pursuant to subdivision (1) of this subsection shall seek the commissioner's approval for any project location or scope before initiating such a compensatory mitigation project.

(3) Each such contractor may accept other federal, state or private funding for such projects in order to enhance or expand the compensatory mitigation project.