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Does your property have a stream that is eroding away? Does it have wetlands, perhaps limiting the available area for agriculture? If so, you may be eligible to work with the Wetland and Stream Mitigation “Fee-In-Lieu-Of” (FILO) program, administered by the Kentucky Department of Fish and Wildlife Resources (KDFWR).
We are a group of specialists who undertake stream and wetland restoration projects on eligible properties. To do so, landowners may either agree to a conservation easement on their property or sell it in its entirety to KDFWR.
FILO’s mission is to offset the loss of aquatic resources in the state due to development, roads etc., as required by Federal regulations. Projects are funded from the Mitigation Fund held in trust solely for compensating for aquatic resources loss. No state tax general funds or hunting/fishing license dollars are used.
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Are you a landowner interested in contributing to stream and wetland mitigation? Read more about what projects entail down below. For more technical information about credit rates, click here.
Stream Instability and Habitat
We work on streams that are unstable, eroding, and have trees removed from stream banks. Projects whose primary purpose is sewer improvements or utility lines do not qualify. Properties with existing wetlands or indicators of potential wetlands (hydrology, soil, vegetation) may be eligible for preservation, enhancement, rehabilitation or establishment of wetland habitat.
Both Stream Banks
Generally, both sides of the stream must be available for work. In many cases, several landowners may be involved in the same project to provide access to both banks and appropriate protection.
Stream and Wetland Size
A minimum of 1,000 feet of the stream is needed to develop stream projects; the longer the project, the better. Wide, deep streams or rivers are often too big and expensive to undertake restoration. Instead, we work on smaller intermittent or perennial streams. As for wetlands, the ideal size varies from project to project.
Mineral Ownership
The project area cannot be mined or developed for coil, oil, gas or other mineral production. Projects are screened during the initial evaluation to determine ownership of mineral rights. Sites, where coal, oil, or gas rights cannot be restricted, will not qualify. However, in some cases, projects can be developed where there are mineral leases if they are no longer active or do not interfere with the project area.
Project Assessment
Potential projects are screened by FILO members. Call us to discuss your situation and determine whether you may qualify. Landowners expressing interest are under no obligations. If the project has potential, we assess the streams/wetlands, then prepare and present a conceptual plan to the U.S. Army Corps of Engineers, which has the final authority on project approval.
Property Title
A property title review is conducted when a project is selected for funding. The title review is required to verify ownership and to identify existing easements, liens, or other issues that may need to be addressed before a project is developed.
Permanent Protection
All projects must be permanently protected. Landowners can sell their property to KDFWR or opt for a permanent conservation easement. Signing the easement contract allows FILO to begin restoration design and survey the easement boundary.
More information about Conservation Easements:
Engineering
We analyze streams and watersheds to develop detailed design plans. Analysis may include hydraulic considerations, stream flow, channel dimensions, stress, construction specifications, and a construction budget estimate. Private engineering firms are typically hired to complete the project design plans, construction specifications, and budget. Again, this is at no cost to the landowner.
Construction
Construction involves reshaping stream banks, constructing new channels, installing rock or wood structures to direct flow and reduce erosion, and planting trees along the stream within the easement, usually during winter or early spring.
Monitoring
Stream projects are monitored annually for a minimum of 7 years to measure success and make any adjustments needed after construction. Wetland projects are monitored for 10 years. After this initial period of monitoring, projects enter the long-term management (LTM) phase. This may include suppressing exotic/invasive species, supplemental planting, signage, fencing, etc.
Credit sales are on a first-come, first-serve basis. No reservations in advance of permit concurrence with USACE. Credit rates changes could happen at any time and should be expected.
In order to better distribute funds and meet mitigation needs, the state is divided into service areas based on river basins and physiography. Credit availability and rate depends on service area (see map and fee schedule).
The EIU rate is based on the Eastern Kentucky Stream Assessment Protocol (EKSAP), the AMU rate is based on the Central Kentucky Assessment Protocol (CKAP).
Effective 05/01/2025 - Fees have changed for both Stream Service areas and Wetland Service areas. Please review the tables below to view the updated prices.
Effective 04/05/2022 - There are no available AMU Wetland Credits in the Upper and Lower Cumberland River Service Areas.
Effective 02/10/2020 - Due to availability, check in advance prior to purchasing credits.
Effective 11/17/2014 - No Credits are currently being sold in the Big Sandy Service Area.
The Stream Team is also known as the Wetland and Stream Mitigation “Fee-in-Lieu-Of” Program, or FILO for short. An in-lieu-fee program is an agreement between a regulatory agency and a sponsor and is meant to mitigate impacts to aquatic resources resulting from activities requiring permits, such as development, road construction, and other projects.
Under an in-lieu-fee agreement, permittees pay fees to the sponsor in lieu of providing the permittee-responsible compensatory mitigation required by regulations. The sponsor uses the funds from those fees, which are paid in the form of credits, to offset the loss of aquatic resources by creating, restoring, enhancing, or preserving wetlands and streams.
Kentucky Revised Statute 150.255 authorizes KDFWR to conduct mitigation and to recover costs associated with conducting mitigation. No state general fund tax or Department license dollars are used to fund the program.
The Instrument is a document approved by USACE that officially establishes KDFWR as an in-lieu-fee sponsor. The Instrument requires that KDFWR uses full cost accounting in setting credit prices, pursuant to federal regulations (2008 “Final Rule” 33 C.F.R. §332.8(o)(5)(ii)). This means that credit rates must be sufficient to fund all expected costs of the mitigation program. The sponsor shall determine the cost of compensatory mitigation credits and may adjust them as necessary.
Credit Sales Breakdown
Administrative and program operating costs may include:
Most of the funds coming from credit sales in each of the eleven service areas are dedicated solely to projects in that same service area. This covers the costs of the following activities:
Permanent Protection:
This is required for all mitigation projects and is accomplished by purchasing properties and establishing deed restrictions or conservation easements on other properties. Costs include legal reviews, title opinions, curative work to correct defective property titles, surveys, and property or easement purchases.
Engineering/Design:
This is the phase of mitigation projects that includes surveying property boundaries for creating the easement, surveying streams and delineating wetlands, hydrogeomorphological analyses, design plans, preparing permit applications, development of a construction budget, and construction oversight. Engineering services are typically contracted to private firms.
Construction:
This phase involves capital construction and revegetation of individual mitigation projects. Construction contracts are awarded to private companies through a low-bid process. The construction is typically bonded and includes a warranty period on the contract.
Monitoring (Minimum of Seven Years Post-construction):
All projects are monitored after completion as required by the Instrument and the USACE and Kentucky Division of Water (KDOW) permits. Projects must meet performance standards during the monitoring period before mitigation credits are validated. Monitoring includes conducting an as-built survey(s), hydrogeomorphological analyses and observations, and vegetation surveys. The monitoring period is a minimum of seven years but may last longer depending on the permit requirements for a particular project. Monitoring is typically contracted to the engineering firm that completed the design of the project.
Adaptive Management:
Each project includes a percentage of the overall project costs that is set aside to cover unexpected costs. The percentage set aside for adaptive management varies but usually is 10% of the project budget.
The Reserve is maintained by credit sales and monthly interest accruing to the in-lieu-fee program account. The Reserve has a minimum non-wasting limit that functions as an endowment. The non-wasting limit enables the program to maintain enough funding to meet long-term mitigation obligations.
Activities funded by the Reserve are subject to the approval of the Corps of Engineers, except for minor actions that do not require permit authorization.
The purposes of the Reserve are:
Before
Before
During Construction Phase
During Construction Phase
Before (Eroding Banks)
After
Before (Erosion Along Right Bank)
Immediately After
After (During Growing Season)
Before (View of Valley and Eroding Channel)
After (View of Valley After Construction)
Before (Close Up of Erosion)
After (Close Up of New Stream and Banks)
Above: over 90,000 feet of unstable headwater streams will be restored on Veteran’s Memorial WMA to reduce erosion and siltation impacts downstream and to improve stream and wetland habitat along riparian corridors. The project was targeted for 2013-2014 construction.