About the Conservation Credit System

Nevada Conservation Credit System

Administered by the Sagebrush Ecosystem Technical Team (SETT), the Nevada Conservation Credit System (CCS), established in 2014, is an innovative approach to Greater Sage-grouse (GRSG) habitat protection that ensures habitat impacts from man-made disturbances are fully compensated by long-term enhancement and protection of habitat that results in an overall benefit for the species, while allowing for appropriate anthropogenic disturbances that are vital to the Nevada economy and the Nevada way of life. Nevada's CCS creates new incentives for private landowners and public land managers to preserve, enhance, and restore the ecosystem, and reduce the threat of wildfire to important habitat for species in the ecosystem and for industries to avoid and minimize impacts to important habitat for species.

It is a performance-driven and market-based mechanism that consistently calculates the direct and indirect impacts on GRSG habitat from human disturbances (debits) and the outcomes of habitat conservation efforts (credits). Credits are used to offset debits from habitat impacts through free market transactions as mitigation. The Sagebrush Ecosystem Program (SEP), with the assistance of its many partners, establishes the policy, operations, and tools necessary to facilitate more effective and efficient conservation investments through the CCS. It is intended to provide regulatory certainty for landowners by addressing mitigation needs whether or not a species is listed under the Endangered Species Act. 

In 2019, the Sagebrush Ecosystem Council (SEC) adopted a permanent mitigation regulation, NAC 232.400-480 that was subsequently passed by the Legislative Commission. This regulation requires compensatory mitigation for Greater Sage-grouse for certain man-made disturbances on public lands using the Nevada Conservation Credit System (CCS).

What is the Goal of the Nevada Conservation Credit System?

The goal of the Nevada CCS is to generate a net benefit of greater sage-grouse habitat by ensuring the impacts to sage-grouse habitat in the State and Federal lands from human disturbances (debits) are offset with corresponding habitat conservation actions (credits). While the near-term goal of the Nevada CCS is focused on Greater Sage-grouse habitat, the system may be adapted to support the ongoing preservation, enhancement, and restoration of Nevada’s sagebrush ecosystem and other sagebrush obligate species in the future.  

Credit System Currency and Functional Acre Approach

Credits are the currency of the Credit System. A credit consists of verified habitat value that is protected for the duration of the project through financial assurances and contract requirements to maintain habitat standards and conservation actions.

Credits are used to offset debits, which represent units of Greater Sage-grouse habitat value lost by anthropogenic disturbances. The credit obligation is the quantity of credits required to offset a debit project.

The Credit System measures habitat value in units of functional acres, or how much the habitat is providing for GRSG, and includes the direct and indirect effects of anthropogenic disturbances. Surrounding disturbances are also taken into account in the calculations of debits and credits. 

CCS Net Benefit Generated

The goal of the CCS is for impacts from anthropogenic disturbances to be offset by habitat enhancement and protection that results in a net benefit for greater sage-grouse habitat in the State of Nevada. The CCS ensures net benefit to Greater sage-grouse habitat by using a scientifically rigorous habitat quantification tool to assess equally both debit and credit projects, mitigation ratios to ensure more functional-acres are gained than lost, and several standards to ensure credits are additional and durable. Functional acres for both credit and debit projects are multiplied by a mitigation ratio, which incorporates the Management Importance and Meadow Factor. The Management Importance Factor (Priority, General, and Other Habitat Management Area) are 5% higher for debit projects than for credit projects. Meadows, as limited areas of importance for GRSG, receive an 8x multiplier to highlight their necessity. In addition to the Mitigation Ratio, the Proximity Ratio is multiplied by the final debit score according to how far the offsetting credit project is located from the debit project. The Proximity Ratio ranges from a 0% to a 15% increase in credit obligation. The combination factors result in a net benefit for sage-grouse habitat in Nevada.

Standards that Ensure Net Benefit:

  • Consistent metrics are used to measure both credits and debits
  • A mitigation ratio ensures that functional-acres gained are greater than functional-acres lost
  • A reserve account of credits that are not used to offset debits is maintained to ensure that impacted credit projects can be covered in the event of a loss (fire, etc.)
  • Advanced mitigation is required to replace sage-grouse habitat before impacts occur
    • ≥1/3 of the mitigation obligation is required to be offset prior to breaking ground
  • Additionality provisions ensure credits are based on habitat enhancement and protection that were not funded by public sector investments

Making continual improvements to the CCS is crucial to ensure the Credit System fulfills participant needs and achieves program objectives over time. The CCS uses a transparent, structured continual improvement approach to identify important opportunities for program improvement, get the improvements approved by the Sagebrush Ecosystem Council through a public forum, and implement approved improvements every year. Please check out the SEC meeting schedule if you would like to participate in these improvements. If you have suggestions on ways to improve the Program, the System, or just general comments, please reach out to us. 

For additional information on Nevada's Conservation Credit System, visit the FAQs or review the Nevada CCS Manual for further details about the CCS, including program policies and management and how to generate or acquire credits.

Programmatic Documents