In-Lieu Fee Program

A local, watershed-based approach to mitigation and restoration

Overview: What is the In-Lieu Fee (ILF) Program?

The Fountain Creek Watershed District is developing an In-Lieu Fee (ILF) Program to provide a streamlined, watershed-based approach to compensatory mitigation, consistent with federal and state mitigation frameworks.

This program will allow permit applicants to purchase mitigation credits to offset unavoidable impacts to:

  • Streams and wetlands (Waters of the U.S. and Waters of the State)
  • Riparian corridors and floodplains
  • Certain federally listed threatened and endangered species (such as the Arkansas Darter, Flathead Chub, Preble’s Meadow Jumping Mouse, etc.)

Instead of completing individual, fragmented mitigation projects, permittees can contribute to a coordinated program that restores and enhances the Fountain Creek Watershed at a meaningful scale.

In-Lieu Fee Program Handout

Why is the ILF Program needed?

The Fountain Creek Watershed has experienced significant impacts from both historic land use practices and ongoing development pressures. Agriculture, mining, urban runoff, military impacts, and altered hydrology have contributed to erosion, water quality degradation, and loss of riparian and floodplain function.

Currently, there are no commercial mitigation options within the proposed Service Area. As a result, permittees often rely on permittee-responsible mitigation (PRM) or purchase credits outside the watershed at higher replacement ratios.

The FCWD ILF Program keeps mitigation investments local while providing a more coordinated, science-based, and watershed-scale approach to restoration. By aligning impacts and mitigation within the same watershed, the program maximizes long-term ecological benefits and regional resilience.

How does the ILF Program work?

The image outlines the ILF Program steps: impacts, credits purchase, fees collection, projects implemented, and watershed benefits.
Flow Chart depicitng the five steps of the ILF program. Step 1. Impacts Occur: a permitted project results in unavoidable impacts to wetlands, streams, or species habitats. Step 2. Credits Purchased: Permittees purchase credits through the FCWD ILF Program. Permitted project proceeds, Step 3. Fees Collected: Fees from all projects are deposited into a dedicated restoration fund. Step 4. Projects Implemented: FCWD delivers high-qaulity restoration projects. Step 5. Watershed Benefits Realized: Improved water qaulity, flood resiliency, hbaitat, and stream stability.

The ILF approach provides permitteess with a predicatable and efficient mitigation pathway while supporting larger-scale restoration projects with stronger long-term ecological outcomes. This program also leads to more consistent monitoring and maintenance of mitigation work and restoration projects.

Initial Example Projects

Potential mitigation and restoration projects are currently being evaluated throughout the watershed and and will be added as the program develops.  

Where does the ILF Program operate?

The proposed Service Area for the District's ILF consists of El Paso and Pueblo Counties, aligned with the legislative boundaries of FCWD. This helps ensure that mitigation investments remain within the same watershed, maximizing ecological relevance and local benefit. 

Proposed In-Lieu Fee Service Area Map.

ILF Service Area Map

Primary Goals and Objectives of the Fountain Creek Watershed District ILF Program

  • Provide a clear and efficient mitigation pathway
  • Restore and protect stream corridors, wetlands, and floodplains
  • Reduce erosion and improve water quality
  • Offer a reliable and efficient mitigation option for projects in the region
  • Support habitat for native and listed species
  • Align projects with watershed-scale planning efforts
  • Ensure long-term success through monitoring and partnerships

Program Status

The FCWD ILF Program is currently in development and undergoing coordination with regulatory agencies. Credit sales are not yet available.

ILF Subcommittee (Technical Advisory Committee)

The ILF Program is being devleoped by a dedicated ILF Subcommittee of the Technical Advisory Committee (TAC), which includes representatives from:

  • Local governments
  • Utilities
  • Counties
  • Technical experts

Interested in Learning More or Purchasing Credits?

Whether you’re:

  • Planning a project
  • Exploring mitigation options
  • Interested in partnership opportunities

We’d love to connect.

Contact:

Alli Schuch, Executive Director

fountainckdist@gmail.com