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potential air and water quality impacts in performing its land use planning functions, <br />property owners and wildlife agencies do not. <br />The Service recognizes the importance of concurrent local regulation of conservation <br />activities. According to the Conservation Bank Guidance: <br />Conservation banks covered by this policy are those established to meet <br />the requirements of the ESA. State or local laws may also impose <br />requirements that can be met by the measures provided for in a <br />conservation bank. When that is the case, the Service requires that the <br />relevant state or local government entity be given an opportunity to <br />participate in the development of a conservation banking agreement and <br />to become a party to it. The Service will coordinate its requirements with <br />those of State or local government entities to the extent possible in order <br />to minimize expenses, burdens, or duplicative requirements for bank <br />sponsors, project proponents, and other governmental agencies. Although <br />the Service will encourage the. appropriate State and local governmental <br />agencies to participate in the development of conservation banking <br />agreements and to become parties to them, the failure of such other <br />agencies to participate in developing, or to sign an agreement that <br />otherwise meets the requirements of this policy and of the ESA, shall not <br />preclude the Service from entering into such an agreement. <br />(Conservation Bank Guidance, at pp. 11-12 (emphasis added).) Thus, federal, state and <br />local regulation of conservation activities may properly overlap. Similarly, regulation <br />of conservation activities by local government will not interfere with protection of <br />endangered species. Moreover, the City could not legally interfere with the Service's <br />activities under the Federal Endangered Species Act. <br />In addition to the physical impacts caused by habitat conservation and management, <br />habitat conservation may also disrupt land use planning by altering the assumptions on <br />which a general plan is based. For example, the City's General Plan must demonstrate <br />that it has sufficient developable land available to satisfy its projected housing need. <br />(Gov. Code, § 65583, subd. (a)(3).) If the City's Community Development Department <br />were unaware that a site was encumbered by a conservation easement, a shortage of <br />developable residential property may result. Conversely, if the City's Community <br />Development Department learned that a conservation easement was created on land <br />that was originally designated as residential, it may be appropriate to allow industrial <br />or commercial uses on adjacent parcels. Another potential planning challenge posed by <br />conservation easements is their duration. While general plan designations may be <br />