A recent headline on the front page of the Wall Street Journal hailed the opening of the nation's first "butterfly bank." The "deposits" in this unusual bank are conservation credits earned by preserving an important area of habitat for the Quino checkerspot butterfly, an endangered species restricted to California. The bank's intended customers are other landowners who hope to develop other sites where the butterfly occurs. In order to do so, they can buy credits from the private entrepreneur who established the butterfly bank.

Despite the recent furor over the environmental damage threatened by the Republican-dominated 104th Congress, the so-called salvage logging bill—a rider on a budget-rescissions bill—so far is one of the few changes to environmental protection programs actually signed into law. One should not assume, however, that the logging rider's ability to survive a presidential veto means that it is an innocuous compromise.

When the 103d Congress convened on January 5, 1993, many observers believed that it would make up for the dismal environmental record of its predecessor. The 102d Congress had tried and failed to reauthorize the Federal Water Pollution Control Act (FWPCA), the Endangered Species Act (ESA), and the Resource Conservation and Recovery Act (RCRA). Its attempt to elevate the U.S. Environmental Protection Agency (EPA) to a cabinet-level department had been blocked in the House of Representatives, and its attempt to reform the General Mining Law of 1872 had been blocked in both houses.

 In November 1995, five federal agencies—the U.S. Army Corps of Engineers (the Corps), the U.S. Environmental Protection Agency (EPA), the Natural Resources Conservation Service, the U.S. Fish and Wildlife Service (FWS), and the National Oceanic and Atmospheric Administration—issued joint guidance concerning wetland mitigation banking. The guidance's chief virtue is its detailed explanation of the approval process for the establishment and operation of mitigation banks. Its chief flaw, however, flows from the complexity of this approval process.