BNG Section 106 Agreement Explained: Legal Requirements & Compliance
With mandatory biodiversity net gain now in effect under the Environment Act, understanding Section 106 agreements has become crucial for developers, landowners, and local authorities alike. As specialists in BNG solutions, we’ll explain how these planning obligations work within the biodiversity net gain framework and what they mean for your development projects. Understanding Section 106 Agreements in the BNG Context Section 106 agreements, established under the Town and Country Planning Act, have evolved significantly to incorporate biodiversity net gain requirements. These legal agreements now serve as one of the primary mechanisms for securing biodiversity gain objectives and ensuring that long-term habitat enhancement commitments are maintained throughout the development process. An alternative agreement, Conservation Covenants, may also be used. The statutory framework for BNG obligations through Section 106 agreements builds upon the National Planning Policy Framework, which sets the foundation for biodiversity net gain requirements. Local planning authorities must ensure that development proposals and we deliver a minimum 10% increase in biodiversity value compared to pre-development levels. Where habitat creation or enhancement is used to deliver that net gain, this must be maintained for a minimum of 30 years, often requiring ongoing habitat management and ecological monitoring. Section 106 agreements secure this ongoing requirement, tying the specific management and monitoring scheme to the area of land in question and empowering local authorities to monitor and enforce the delivery. Integration with Local Policy Each local authority integrates BNG requirements with their existing local policies, creating a comprehensive approach to biodiversity conservation. This integration ensures that planning obligations support both national requirements and local biodiversity objectives. The result is a robust framework that considers local environmental priorities while meeting statutory requirements. Local planning authorities play a pivotal role in this process, working with developers to ensure that biodiversity gain plans align with local nature recovery strategies. This collaborative approach helps create more effective and locally relevant conservation outcomes. Key Components of BNG Section 106 Agreements A well-structured Section 106 agreement for biodiversity net gain must address several crucial elements. At its core, the agreement outlines how the development will achieve its biodiversity gain objective through a detailed biodiversity gain plan which references a specific habitat management and monitoring plan (HMMP). This plan must clearly demonstrate the pre-development biodiversity value of the site and outline specific measures for habitat enhancement. Perhaps most importantly, the agreement must secure a minimum 30-year management commitment. This long-term perspective is essential for ensuring that biodiversity gains are maintained and enhanced over time, with clear provisions for monitoring and maintenance responsibilities. The Planning Journey The journey through the planning application process begins well before submission. Early consideration of BNG requirements is essential, starting with initial biodiversity metric calculations and preliminary discussions with your ecologist. These early stages set the foundation for successful outcomes. During the application stage, developers working on simple sites only technically need to report the following as a minimum: the existing baseline habitats on site. However, especially in the case of complex sites, it is very prudent to frontload your BNG considerations. Calculating BNG from early proposals and formulating a draft or preliminary BNG plan is a great way to make sure you’re heading in the right direction. In some cases, particularly sensitive sites, local planning authorities will also require a bit more information than the bare minimum; providing them with this improves the planning application process and highlights any potential issues or bespoke requirements at an early stage while your plans are still fluid. Since Section 106 agreements are made in principle as part of the application stage, the local authority may NEED to know what’s coming in the post-consent stage so that Section 106 includes relevant sections or flexibility for those sections to be added. Early consideration also enables early review of cost and options for the next stage: implementation. Once planning permission is granted, the focus shifts to implementation. If creating habitats within your redline boundary, these need to be secured and the 30-year process outlined in a management plan; if biodiversity offsetting is involved, this includes registering on the biodiversity gain site register, initiating habitat enhancement measures, and beginning the long-term monitoring process. Either way, a legal agreement such as Section 106 will be needed to secure the proposed habitat works. Each step must be carefully documented and reported to relevant authorities. Ensuring Compliance Compliance with BNG obligations requires ongoing attention and commitment. Local planning authorities maintain oversight through regular monitoring and enforcement via the Section 106 agreement. They also maintain local land charges records and provide guidance as needed to ensure successful implementation. Developers bear significant responsibilities in this process. Beyond implementing agreed measures, they must maintain enhanced habitats and provide regular reports to authorities. This ongoing commitment ensures that biodiversity gains are realised and maintained over the required 30-year period. Alternative Approaches While Section 106 agreements are the primary mechanism for securing BNG commitments, alternative approaches may be appropriate in certain circumstances. Conservation covenants, for example, can complement or sometimes replace Section 106 agreements, offering more direct agreements with responsible bodies and simplified enforcement mechanisms. Either way, all legitimate biodiversity banks need to be secured and enforced by either a Conservation Covenant or a Section 106 Agreement. Some examples of Section 106 agreements for BNG are available here. In cases where neither on-site nor off-site gains are feasible, statutory biodiversity credits may provide an alternative pathway to compliance. However, these should be considered only after exhausting other options within the biodiversity gain hierarchy. Looking Forward The landscape of biodiversity net gain continues to evolve, with ongoing updates to planning practice guidance and the biodiversity metric. Staying informed about these changes, along with developments in the biodiversity unit market and management solutions, is essential for successful compliance. Conclusion Section 106 agreements represent a crucial tool in securing meaningful biodiversity net gain commitments. Understanding and effectively implementing these legal requirements is essential for successful development project delivery and long-term environmental benefits. Take the next step in your BNG journey: Call our specialist team on 0208 050 6076 Email us at hello@civitynge.com Visit us at 3a Orbis Wharf, Bridgers Court Road, SW11 3GW Let Civity guide you through the complexities of BNG Section 106 agreements, ensuring your development project achieves full compliance while contributing to meaningful environmental enhancement. Frequently Asked Questions How long does it take to negotiate a BNG Section 106 agreement? The negotiation timeline varies depending on project complexity and local authority requirements, typically ranging from 8-12 weeks. Early engagement with planning authorities and clear biodiversity gain plans can help streamline the process. Can Section 106 agreements be modified after approval? Yes, modifications are possible through formal variation procedures, but changes must maintain the original biodiversity gain objectives and secure appropriate alternative arrangements if necessary. What happens if a developer fails to meet BNG obligations? Non-compliance with Section 106 BNG obligations can result in enforcement action by the local planning authority, potentially including legal proceedings, fines, and requirements for remedial action. Note: This guidance reflects current regulations as of February 2024. As BNG requirements continue to evolve, specific details may change. Always consult with BNG specialists for the most up-to-date advice.