United States Environmental Protection Agency
                        Office of Wetlands, Oceans and Watersheds
                                Washington, D.C. 20460

                 :   United States Department of the Army
                ,              U.S. Army Corps of Engineers
                                Washington, D.C. 20314

                                         23 1993
MEMORANDUM TO THE FIELD

SUBJECT:   APPROPRIATE LEVEL OF ANALYSIS REQUIRED FOR
             EVALUATING COMPLIANCE WITH THE SECTION 404(b)(l)
             GUIDELINES ALTERNATIVES REQUIREMENTS
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1. PURPOSE:  The purpose of this memorandum is to clarify the appropriate level of
analysis required fcjr evaluating compliance with the Clean Water Act Section 404(b)(l)
Guidelines' (Guidelines) requirements for consideration of alternatives. 40 CFR 230.10(a).
Specifically, this memorandum describes the flexibility afforded by the Guidelines to make
regulatory decisions based on the relative severity of the environmental impact of proposed
discharges of dredged or fill material into waters of the United States.

2. BACKGROUND:  The Guidelines are the substantive environmental standards by which
all Section 404 permit applications are evaluated.  The Guidelines,  which are binding
regulations, were published by the. Environmental Protection Agency at 40 CFR Part 230 on
December 24, 1980.  -The fundamental precept of the Guidelines is that discharges  of
dredged or fill material into waters of the United States, including wetlands, should not occur
unless it can be demonstrated that such discharges,  either individually or cumulatively, will
not result in unacceptable adverse effects on the aquatic ecosystem.  The.Guidelines
specifically require.'that "no discharge of dredged or fill material shall be permitted if there is
a practicable alternative to  the proposed discharge which would have less adverse impact on
the aquatic ecosystem, so long as the alternative does not have other significant adverse
environmental consequences," 40 CFR 230.10(a).  Based on this provision, the applicant is
required in every case (irrespective of whether the discharge site is a special aquatic site or
whether the activity associated with the discharge is water dependent) to  evaluate
opportunities for use of non-aquatic areas and other aquatic sites that would result in less
adverse impact on the aquatic ecosystem.  A permit cannot be issued, therefore, in
circumstances where a less environmentally damaging practicable alternative for the proposed
discharge exists (except as  provided for under Section 404(b)(2)).

3. DISCUSSION:  j The Guidelines are, as noted above, binding regulations.  It is important
to recognize, however, that this regulatory status does not limit the inherent flexibility
provided in the Guidelines  for implementing these provisions.  The preamble to the
Guidelines is very clear in  this regard:

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       Of course, as the regulation itself makes clear, a certain amount of flexibility
       is still intended.  For example, while the ultimate conditions of compliance are
       "regulatory*, the Guidelines allow some room for judgment in determining
       what must be done to arrive at a conclusion that those conditions have or have
       not been met.

Guidelines Preamble, 'Regulation versus Guidelines', 45 Federal Register 85336 (December 24, 1980).

       Notwithstanding this flexibility, the record must contain  sufficient information to
demonstrate that the proposed discharge complies with the requirements of Section 230.10(a)
of the Guidelines.  The amount of information  needed to make such a determination and the
level of scrutiny required by the Guidelines is commensurate with the severity of the
environmental impact (as determined by the functions of the aquatic resource and the nature
of the proposed activity) and the scope/cost of the; project.

       a. Analysis Associated with Minor Impacts:

       The  Guidelines do not contemplate that  the same intensity of analysis will be required
for all types of projects but instead envision a correlation between the scope of the evaluation
and the potential extent of adverse impacts on the aquatic environment.  The introduction to
Section 230.10(a) recognizes that the level of analysis required may vary with the nature and
complexity of each individual case:              \

       Although all requirements in § 230.10 must be met,  the compliance evaluation
       procedures will vary to  reflect the seriousness  of the potential for adverse
       impacts on the aquatic ecosystems posed by specific dredged or fill material
       discharge activities.

40 CFR 230.10

       Similarly, Section 230.6 ("Adaptability") makes clear that the Guidelines:

       allow evaluation and documentation for  a variety of activities, ranging from
       those with large, complex impacts on the aquatic environment to those for
       which the impact is likely to be innocuous. \ It  is unlikely that the Guidelines
       will apply in their entirety to any one activity,  no matter how complex.  It is
       anticipated that substantial numbers of permit  applications will be for minor,
       routine activities that have little, if any,  potential for significant degradation of
       the aquatic environment. It generally is not intended or expected that
       extensive testing,  evaluation or analysis  will be needed to make findings of
       compliance in such routine cases.

40 CFR 230.6(9) (emphasis added)

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        Section 230.6 also emphasizes that when making determinations of compliance with
 the Guidelines, users:

        must recognize the different levels, of effort that should be associated with
        varying degrees of impact and require or prepare commensurate
        documentation.  The level of documentation should reflect the significance and.
        complexity 'of the discharge activity.

 40 CFR 230.6(b) (emphasis added)

        Consequently, the Guidelines clearly afford flexibility to adjust the stringency of the
 alternatives review;for projects that would have only minor impacts. Minor impacts are
 associated with activities that generally would have little potential to degrade the aquatic
 environment and include one, and frequently more, of the following characteristics:   are
 located in aquatic resources of limited natural function;  are small in size and cause little
 direct impact; have little potential for secondary or cumulative impacts; or cause only
 temporary impacts.;  It is important to recognize, however, that in some circumstances even
 small or temporary,fills result in  substantial impacts, and that in  such cases  a more detailed
 evaluation is necessary.  The Corps Districts and EPA Regions will, through the standard
 permit evaluation process, coordinate  with the U.S. Fish and Wildlife Service,  National
 Marine Fisheries Service and other appropriate state and Federal agencies in evaluating the
 likelihood that adverse impacts would result from a particular proposal. It is not appropriate
 to consider compenjsatory mitigation in determining whether a proposed discharge will cause
only minor impactsjfor purposes of the alternatives analysis required by Section 230.10(a).

       In reviewing projects'that  have the potential for only minor impacts on the aquatic
environment, Corps and EPA field offices are directed to consider,  in coordination with state
and Federal resource agencies, the following factors:
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       i)  Such projects by their nature should not  cause or contribute to significant
       degradation Individually or cumulatively. Therefore, it generally should not be
       necessary to [Conduct or require detailed analyses  to determine compliance with
       Section 230. |10(c).

       ii) Although sufficient information must be developed to determine whether the
       proposed activity is in  fact the least damaging practicable alternative, the Guidelines
       do not- require an elaborate search for practicable alternatives if it is reasonably
       anticipated that there are only minor differences between the environmental impacts  of
  •:-   the proposed activity and potentially practicable alternatives.   This decision will be
       made after consideration of resource agency comments on the proposed project. It
      often makes sense to examine first whether potential alternatives would result  in no
      identifiable or discernible difference in impact on the aquatic ecosystem.  Those
      alternatives that do not may be eliminated from the analysis since Section 230.10(a)  of
      the Guidelines only prohibits discharges when a practicable alternative exists which

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       would have less adverse impact on the aquatic ecosystem.  Because evaluating
       practicability is generally the more difficult aspect of the alternatives analysis, this
       approach .should save time and effort for both the applicant and the regulatory
       agencies.1 By initially focusing the alternatives analysis on the question of impacts
       on the aquatic ecosystem, it may be possible to limit (or in some instances eliminate
       altogether) the number of alternatives that have to be evaluated for practicability.

       Hi)  When it is determined that there is no; identifiable or discernible difference in
       adverse impact on the environment between the applicant's proposed alternative and
       all other practicable alternatives, then the applicant's alternative is considered as
       'satisfying the requirements of Section 230.10(a).

       iv)  Even where a practicable alternative exists that would  have less adverse impact
       on the aquatic ecosystem, the Guidelines allow it to be rejected if it would have
       "other significant adverse environmental consequences." 40 CFR 230.10(a).  As
       explained in the preamble, this allows for consideration of "evidence of damages to
       other ecosystems  in deciding whether there is a 'better' alternative."  Hence, in
       applying the alternatives analysis required toy the Guidelines, it is not appropriate to
       select an alternative where minor impacts on the aquatic environment are avoided at
       the cost of substantial impacts  to other natural environmental values.

       v) In cases of negligible or trivial impacts  (e.g., small discharges to construct
       individual driveways),  it may be possible to conclude that  no alternative location
       could result in less adverse impact on the aquatic environment within the meaning of
       the Guidelines.  In such cases, it  may not be necessary to  conduct an offsite
       alternatives analysis but instead require only any practicable onsite minimization.

       This guidance concerns application of the Section 404(b)(l) Guidelines to projects
with minor impacts.  Projects which may cause more than  minor  impacts'on the aquatic
environment, either individually or cumulatively,;should be subjected  to a proportionately
more detailed  level of analysis to determine compliance or noncompliance with the
Guidelines.  Projects which cause  substantial impacts, in particular, must be thoroughly
evaluated through the standard permit evaluation process to determine compliance with all
provisions of the Guidelines.
    lln certain instances, however, it may be easier to examine practicability first.  Some
projects may be so site-specific (e.g., erosion control, bridge replacement) that no offsite
alternative could be practicable.' In such cases the alternatives analysis may appropriately be
limited to onsite options only.

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         b.     Relationship between the Scope of Analysis and the Scope/Cost of the
                Prciposed Proj ect:

         The Guidelines provide the Corps and EPA with discretion for determining the
  necessary level of analysis to support a conclusion as to whether or  not an alternative is
  practicable.  Practicable alternatives are those alternatives that are "available and capable of
  being done after taking into consideration cost, existing technology,  and logistics in light of
  overall project purposes." 40 CFR 230.10(a)(2).  The preamble to the Guidelines provides
  clarification on how cost is to be considered  in the determination of practicability:

         Our intent  is to consider those alternatives which are reasonable, fr terms nftk?
         overall scope/cost of the proposed protect.'  The term economic [for which the term
         "cost' was substituted in the final rule] might be construed to include consideration of
         the applicant's financial standing, or investment, or market share, a cumbersome
         inquiry -which is not necessarily material to the objectives of the Guidelines.

  Guidelines Preamble,  "Alternatives", 45 Federal Register 85339 (December 24, 1980) (emphasis added).

        Therefore, the level of analysis required for determining which alternatives are
  practicable will vary depending on the type of project proposed.  The determination of what
  constitutes an unreasonable expense should generally consider whether the projected cost is
  substantially greater than the costs normally associated with  the particular type of project
  Generally, as the scope/cost of the project increases, the level of analysis should also
  increase.  To the extent the Corps obtains information on the costs associated with  the
  project, such information may be considered when making a determination of what
  constitutes an unreasonable expense.

        The preamble to the Guidelines also states that H[i]f an alleged alternative is
 unreasonably expensive to the applicant, the alternative is not 'practicable '" Guidelines
 Preamble, "Economic Factors",  45 Federal Register 85343 (December 24, 1980)
 Therefore, to the extent that individual homeowners and  small businesses  may typically be
 associated with small projects with minor impacts, the nature of the applicant may also be a
 relevant consideration in determining what constitutes a practicable alternative  It is
 important  to emphasize, however, that it is not a particular applicant's financial standing that
 is the primary consideration for determining practicability, but rather  characteristics of the
 project and what constitutes a reasonable expense for these projects that are most relevant to
 practicability determinations.

 4.  The burden of proof to demonstrate compliance with the Guidelines rests with the
 applicant; where insufficient information is provided to determine compliance, the Guidelines
 require that no permit be issued. 40 CFR 230.12(a)(3)(iv).
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5.  A reasonable, common sense approach in applying the requirements of the Guidelines'
alternatives analysis  is fully consistent with sound environmental protection. The Guidelines
                    i

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       contemplate that reasonable discretion should be applied based on the nature of the
aqcSJe and potential impacts of a proposed activity in determining compliance with
Sernatives test. Such an approach.encourages effective decisionmakmg and fosters a
better understanding and enhanced confidence in the Section 404 program.

6  This guidance is consistent with the February 6, 1990 "Memorandum of Agreement
Between L Environmental Protection Agency and the Department
   Determination of Mitigation under the Clean Water Act Section
 ROBERT H. WYLAND, El    (date)
 Director,
 Office of Wetlands, Oceans,
  and Watersheds
 U.S. Environmental Protection Agency
MICHAEL L. DAVIS
Office of the Assistant Secretary
 of the Army (Civil Works)
Department of the Army
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