HIGHLIGHTS  OF SECTION 404

              FEDERAL REGULATORY PROGRAM
                                         TO
       PROTECT WATERS OF THE UNITED STATES
INTRODUCTION

       The U.S. Congress enacted the Clean Water Act to "restore  and maintain the chemical,
physical, and biological integrity of the Nation's waters." Section 404 of the Clean Water Act
establishes  a permit program to ensure that such discharges comply with  environmental
requirements. The Section 404 program is administered at the federal level by the U.S. Army Corps
of Engineers (Corps) and the U.S. Environmental Protection Agency (EPA).  The U.S. Fish and
Wildlife Service (FWS) and the National Marine Fisheries Servcie (NMFS) have important advisory
roles. The Corps has the primary responsibility for the permit program and is authorized, after notice
and opportunity for public hearing to issue permits for the discharge of dredged or fill material.
States can assume a portion of the permitting program from the federal government (for some waters
only), but there has been limited interest by the States.  EPA has primary roles in several aspects of
the Section 404 program including development of the environmental guidelines by which permit
applications must be evaluated; review of proposed permits; prohibition of discharges with
unacceptable adverse impacts; approval and  oversight  of  State assumption  of the  program;
establishment ofjurisdictional scope of waters of the United States; and interpretation of Section 404
exemptions. Enforcement authority is shared between EPA and the Corps.

       Waters of the United States protected by the Clean Water Act include rivers, streams,
estuaries, the territorial seas, and most ponds, lakes, and wetlands.  The term wetlands includes
swamps, marshes bogs, and similar areas.  Wetlands are a particularly important and sensitive
segment of our waters, and therefore merit special attention.  Wetlands provide critical habitat for
many important species offish and wildlife, and export plant particles (called detritus) that serve as
food for aquatic organisms in adj acent waters. Peak floodwaters are absorbed by wetlands, reducing
damage to downstream property, often farms and municipalities.  Water quality is improved as a
result of anumber of natural processes that remove pollutants from water flowing through wetlands.
In addition, aesthetic, recreational, scientific, and educational values are provided by these natural
           information contained in this document is intended to provide a basic understanding of the Section
404 program. It is not a form of policy or guidance and should not be relied on as such. For official guidance on
Section 404 policy, the reader should go to the specific documents (such as the Clean Water Act and the MOA's
between EPA and the Army Corps of Engineers) or contact the appropriate EPA or Corps office.

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aquatic areas. While not every wetland, performs all of these functions, healthy wetlands provide one
or more of these other valuable services.

       Throughout history, wetlands have been misunderstood as "wastelands" to be drained or
filled for conversion to other uses. Within the last 200 years, over half of the wetlands in the lower
48 States have been lost to agriculture, mining,  forestry, oil, and gas production, water resource
development and urbanization. High rates of loss are continuing; about ten percent of remaining
wetlands are lost in a recent 20 year interval.

       The Section 404 Program is broadly recognized as the most significant regulatory program
affecting wetlands; it does not regulate all activities that harm or affect wetlands (see Appendix 1
for details on Section 404).

GEOGRAPHIC SCOPE OF SECTION 404

       Like other Clean Water Act programs, the jurisdiction of Section 404 extends to all waters
of the United States.  This phrase includes waters which are currently used, were used in the past,
or may be used in interstate or foreign commerce, including:

•       all waters which are subject to the ebb and flow of the tide;
       the territorial sea;
• *     interstate waters and wetlands;
       all other waters (such as intrastate lakes, rivers, streams and wetlands),  if their use,
       degradation or destruction could affect interstate  or foreign commerce;
       tributaries to waters or wetlands identified above; and
       wetlands adjacent to waters identified above.

       In determining waters that are within the scope of the Clean Water Act, Congress intended
to assert federal jurisdiction to the broadest extent permissible under the commerce clause of the
Constitution. One factor that establishes a commerce connection is the use or potential use of waters
for navigation.  Other factors include (but are not limited t) use of a wetland  (or other water) as a
habitat by migratory birds, including waterfowl, use by federally listed endangered species or
recreation by interstate visitors.

       As defined in Section 404 program regulations, wetlands are "those areas that are inundated
or saturated with surface or groundwater at a frequency and duration sufficient to support, and that
under normal circumstances do support, a prevalence of vegetation typically adapted for life in
saturated soil conditions." In applying this definition in the field, government agency scientists use
indicators of vegetation, soils and hydrology to identify wetlands and to establish their boundaries.
Wetlands can be coastal or inland; saltwater or freshwater. Around, the  country, wetlands may be
known by a variety of names, including swamps, marshes, bogs, potholes, sloughs, fens, mangroves,
pocosins, wet meadows, savannahs, wet tundra, play lakes and vernal pools.

ACTIVITIES REGULATED BY SECTION 404
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       Discharges of dredged and fill material are commonly associated with activities such as port
development, channel construction and maintenance, fills to create development sites, transportation
improvements, and water resource projects (such as dams, jetties, and levees).  Other kinds of
activities such as landclearing, are regulated as Section 404 discharges if they involve discharges of
dredged or fill material (e.g. soil) into waters of the United States. However, some activities which
can adversely affect and even destroy wetlands, such as drainage and groundwater pumping, are
often conducted without discharging of dredged or fill material into waters of the United States, 'and
in those circumstances, are not regulated under Section 404.

       The Federal Clean Water Act also includes specific exemptions from permitting requirements
for certain activities (§404(f)(l)). These activities include:

1. Normal farming, silviculture and ranching practices;

2.  Maintenance, including emergency reconstruction of recently damaged parts of currently
serviceable structures such as dikes, dams, levees, groins, rip rap, breakwaters, causeways, bridge
abutments or approaches, and transportation structures;

3. Construction of maintenance of farm or stock ponds or irrigation ditches or the maintenance (but
not construction) of drainage ditches;

41 Construction of temporary sedimentation basins on a construction site which does not include
placement of fill material into waters of the United States; and

5. Construction or maintenance of farm or forest roads or temporary roads for moving mining
equipment if best management practices are followed.

       Section 404(f)(l) is applied narrowly and is not intended to exempt activities with more than
minor  impacts  on aquatic  resources.  Under the recapture provision at Section 404(f)(2),  the
exemptions do not apply if the discharge is part of, or incidental to, an activity whose purpose is to
convert an area of the  waters of the United States into a use which it was not previously subject,
where the flow or circulation of waters of the United States may be impaired or the reach of such
waters is reduced. This limitation on the Section 404(f) exemptions would, for example, require a
farmer to obtain a permit for a discharge to convert a wetland area to produce upland crops.

       The Clean Water Act provides another limited exemption under Section 404(r) for projects
specifically authorized by Congress. To be covered under this exemption, an Environmental Impact
Statement under the National Environmental Policy Act must be prepared on the project  and
submitted to Congress. The Statement must contain information on the effects of the discharge on
environmental values protected by Section 404, including consideration of the Section 404(b)(l)
Guidelines.
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INTRODUCTION
PERMIT PROCESS
TO   THE
       Discharges can be authorized
by   either  individual   or  general
permits.   If an  individual permit is
required,  an  application  form
describing the proposed activity is
submitted to  the Corps (or a State
agency if the;  -program,, .has been
assumed  from   the   federal
government).    Once  a  complete
application is received, the permitting
agency  issues   a   public   notice
containing the information needed to
evaluate  the  likely  impact  of  the
proposed activity. Notice is sent to all
interested parties including adjacent
property  owners,   appropriate
government agencies at the Federal,
State, and local level, and others as
requested. Any person may request
that a public hearing  be held  to
consider the application.

       General permits eliminate the
need for individual permits for some
activities which  conform to specified
terms  and  conditions.     General
permits  may  be used on a  State,
regional, or nationwide basis. Section
404(e) authorizes general permits for
activities which are similar in nature
and will  cause  minimal  adverse
environmental effects individually or
cumulatively.   General permits  are
developed through the same public
notice and opportunity  for public
hearing that is used for an individual
permit. Once issued, a general permit
may be  modified or revoked if the
permitted activities are found to have
an adverse environmental impact.  In
some instances, the discharger must
notify the Corps prior to discharging
               Advance Identification of Disposal Sites

               The individual permit process under Section 404 is sometimes
               an intensive, time consuming and controversial case-by case
               evaluation process. Section 230.80 of the Section 404(b)(l)
               Guidelines provides for a planning process that can results in a
               more predictable decision making process. In this planning
               process, information is developed that can be used by the
               regulated and general public to plan and consider potential
               projects. Such information can include general locations and
               values of waters of the U.S. and potential threats and impacts to
               those values.  This process usually results in maps which
               provide information on where discharges to waters of the U.S.
               including wetlands, may be generally suitable or unsuitable.

               The Advance Identification (ADID) process is conducted by the
               EPA and Corps of Engineers (or any State that has assumed the
               Section 404 permitting responsibilities) and includes
               consultation with the affected State. Active State and local
               involvement result in a much better product and are encouraged
               by both EPA and the Corps.

               Since the ADID process can require a substantial amount of
               staff time and funds, it is usually conducted for areas that have
               important resource value and are under development pressure.
               Further, the area that is studied and mapped is usually a very
               limited portion of a watershed. Attempts are made to limit the
               geographic extent of the ADID to a manageable size.

               The ADID process may include collecting existing data and
               generating new data on the aquatic system and its value to
               surrounding and downstream aquatic ecosystems. This
               information is then used to determine which areas are the most
               valuable, and therefore, in need of the highest level  of
               protection.

               The products that result from the ADID process include, at a
               minimum, designation of areas as generally suitable or
               unsuitable for use as a discharge site. Additional actions quite
               often result, such as some anticipatory method of processing
               the most valuable areas. For example,  ADEDs may  result in
               State or local land use or regulatory restrictions, or use of
               EPA's Section 404(c) authority to restrict or prohibit discharge
               to a defined area.  The Corps may issue general permits for
               certain activities in portions of the area designated as suitable
               for .disposal.
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under the authority of the general permit.  On a case-by-case basis, the permitting agency may
invoke discretionary authority and require a discharger that would otherwise be covered by a general
permit to apply for an individual permit.

MAKING THE PERMIT DECISION

       The Corps' evaluation of a Section 404 permit application is a two part test which involves
determining whether the proj ect complies with the Section 404(b)(l) Guidelines and apublic interest
review.  A permit must be denied if the project fails to comply with the Guidelines or is found to be
contrary to the public interest.

       The Corps' public interest review is a balancing test in which the public and private benefits
of a project are weighed against its adverse impacts to  the  environment.  It  includes such
considerations as aesthetics,  recreation, historic values, economics, water supply,  water quality,
energy needs, and flood damage prevention. The Corps also considers all comments received in the
permit process, whether in the response to a public notice or a public hearing, in arriving at a final
permit decision. As part of this evaluation, the Corps conducts an environmental assessment under
the National Environmental Policy Act (NEPA) to determine whether the project has significant
environmental impacts.

 '*•     The Section 404(b)(l) Guidelines (Guidelines), published by EPA in conjunction with the
Corps, contain substantive environmental criteria used in evaluating discharges of dredged or fill
material. Reflecting the goals of the Clean Water Act, the Guidelines establish key policies for the
Section 404 Program:

•  Dredged or fill material should not be discharged into waters of the United States unless it can be
demonstrated that such discharge will not have an unacceptable adverse impact (individually or
cumulatively) on the aquatic  ecosystem.

•  From a national perspective, the degradation or destruction of special aquatic site, such as filling
operations in wetlands, is considered to be among the most severe environmental impacts addressed
by Section 404.

       To implement these, polipies, the Guidelines include a number of key requirements.. One of
them states that no discharge can be permitted if there is a practicable alternative with less adverse
impact  on the aquatic environment (unless the identified alternative  poses other  significant
environmental problems). This alternatives test is applied more rigorously (i.e., alternatives are
presumed to exist) for projects that are proposed to be located in special aquatic sites when the
project is not water dependent.  For example, boat docks in a marina require water  access and are
water dependent; a restaurant is not.  Special aquatic sites include: wetlands, coral reefs, mud flats,
riffle and pool complexes in streams, vegetated shallows and sanctuaries and refuges. However, the
Guidelines require a demonstration that no practicable  alternatives exist (as discussed above) for
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                Enforcement

Enforcement is a necessary component of an
effective regulatory program. EPA and the Corps
share Section 404 enforcement authority. Section
309 of the Clean Water act gives EPA the
authority to act against persons who discharge
without a permit and also to enforce against
violations of Section 404 permit conditions.
Section 309 also provides EPA with a variety of
enforcement mechanisms. For example, an
administrative compliance order issued pursuant
to Section 309(a) generally requires a violator to
stop an all illegal discharges and, where
appropriate, to remove the fill and/or restore the
site. Section 309(g) authorizes EPA to assess
administrative civil penalties for, among other
things, violations of Section 404. A third
enforcement mechanism allows EPA to seek
monetary penalties, injunctive relief, and even
prison sentences through judicial action pursuant
tp Section 309(b) and (c).  Under these Sections,
EPA may refer cases to the Department of Justice
.for criminal and/or civil litigation.

EPA has focused its resources on identifying and
enforcing against unpermitted discharges of
dredged or fill material. The Corps has the lead
on acting against violations of Corps-issued
permits, and has also been responsible for a
significant amount of the enforcement efforts
against unauthorized discharges.

A Section 404 enforcement case frequently begins
with EPA receiving information regarding a
potential violator from a citizen or local official.
Violations are also discovered by State, EPA or
Corps staff, or other Federal personnel while in
the field on other routine business.  Thus, state
and local officials/residents can serve as the "eyes
and ears" of EPA in recognizing and reporting
potential Section 404 violations.  States may also
assume the Section 404 program, including
enforcement; however, even where States assume
the program, the Corps maintains permitting
authority in traditionally navigable waters.
both  water  dependent and non-dependent
projects.

       No discharge can be permitted under
the  Guidelines  if  it  would violate  other
applicable laws, such as State water quality
standards, toxic effluent standards, or  the
Endangered Species Act.  The Guidelines also
prohibit any discharge that would cause or
contribute to significant degradation of waters
of the United States.  In addition, discharges
can be permitted under the Guidelines only if
all appropriate and practicable steps are taken
to minimize (i.e., mitigate) the adverse impacts
of the discharge on the aquatics ecosystem,
including  compensating   for  unavoidable
impacts (see Appendix 2 for details on the
Section 404(b)(l) Guidelines).

        In addition to the evaluation conducted
by the  Corps under the Guidelines and their
public interest review, Section 401 of the Clean
Water Act must be complied with  before a
permit can be issued. Section 401 requires that
the Sate in  which  an activity  occurs  must
certify that  the activity complies with the
State's water quality standards  or waive its
rights to so certify by not taking actions within
a specified time. Similarly, coastal States must
concur that the activity meets the requirements
of  the coastal zone management  program
(CZMP) of the State or waive their right to
concur by not taking action within a specified
time. CZMP's are developed by States under
the Coastal Zone Management Act of 1972.

ADDRESSING   UNACCEPTABLE
ADVERSE IMPACTS

        Under the authority of Section 404(c),
EPA may prohibit, withdraw, or restrict the
discharge of dredged or fill material into waters
of the  United States  if the discharge would
have unacceptable adverse effects on municipal
water supplies, shellfish beds and fishery areas
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(including spawning and breeding areas), wildlife, or recreational areas. This authority may be used
before, during or after Corps action on a permit application. EPA may also exercise this authority
in absence of a specified permit application or Corps regulatory action. In this instance, EPA may
conduct a  404(c)  action in conjunction with an Advance  Identification or a  Special Area
Management Plan, or where otherwise appropriate.

       EPA generally exercises its Section 404(c) "veto" authority when the regulatory process
results in  a permit decision that would have unacceptable adverse effects on municipal water
supplies, shellfish beds and fishery areas (including spawning  and breeding areas), wildlife or
recreational areas.  In those cases, EPA's  Section 404(c) decision process may include data
collection and analysis, consultation with the applicant and the Corps, and public notice with
opportunity for a hearing. EPA is increasing its use of Section 404(c) authority, but to date has used
it infrequently.                                                   .

       EPA works with the Corps during the permit decision process whenever possible to ensure
unacceptable adverse impacts are avoided and most concerns are resolved through its interagency
consultation. The Corps and EPA have developed a process through a Memorandum of Agreement
(MOA) to quickly resolve any differences over permit decisions. In instances where there has been
either insufficient interagency coordination, information, or where the proposed project raises
environmental issues of national importance, this MOA allows for EPA's Assistant Administrator
for Water to request that the Army' s Assistant Secretary for Civil Works elevate the proposed permit
decision to higher authority for review.  The Fish and Wildlife Service and the National Marine
Fisheries Service have similar agreements with the Corps.

ENFORCEMENT          .

       As a jointly administered program, the Corps and EPA share responsibility for enforcing the
Section 404 program.  The Corps, as  the permitting  agency, has primary responsibility for
monitoring and enforcement of compliance  with Section 404 conditions. EPA can also enforce
against non-compliance with permit conditions; however, EPA generally focuses its resources
towards discovering and enforcing against-unpermitted (unauthorized) discharges.  Anyone in
violation of the Section 404 program, either by conducting an unauthorized activity or by violating
permit conditions, is subject to civil or criminal action or both.  Penalties can be imposed by the
agencies administratively, that is, without use of judicial procedures.   When judicial action ,is
pursued, the violator may be required to restore the site and may be subject to payment of fines,
imprisonment or both. The agencies and the courts also frequently require restoration of the site/and
or mitigation at the expense of the violator, often in addition to other penalties.

STATE PROGRAMS

       The Clean Water Act provides  that States may assume a portion of the Section 404
permitting responsibility. EPA is responsible for approval or denial of State program assumption
requests and for oversight of State programs  subsequent to approval.  States may assume. the
program in all waters within the State except (1) those which are subject to the ebb and flow of the
tide, plus adjacent wetlands and (2) waters which are presently used or may be susceptible to use

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(through reasonable improvement) to transport interstate or foreign commerce, plus adjacent
wetlands. The Corps retains jurisdiction over all waters which the States cannot assume.

       States must meet specific statutory and regulatory requirements for an approvable State
program.  Some of these  requirements are that the States must: establish jurisdictional limits
equivalent to the federal rules; regulate at least the full scope of activities regulated by Section 404;
deny permits which do not  comply with the Section 404(b)(l) Guidelines; provide sufficient notice
and opportunity for public hearing; have the authority to enforce compliance with the program
through civil and criminal penalties and other means; and be able to terminate and modify permits
for cause. In addition to the States and territories, Indian tribes may be considered a "State" for
purposes of the Clean Water Act, including Section 404, if they meet certain requirements.

       A number of States actively exercise their authority under Section 401 of the Clean Water
Act, and coastal states under Section 307 of the Coastal Zone Management Act, to certify whether
a proposed activity complies with State Water quality standards, or is consistent with the State's
coastal zone management plan, respectively. Both of these actions by the State apply to activities
regulated by the federal government and give the State an effective veto of the proposed activity.

THE CITIZEN'S ROLE IN SECTION 404

       Aquatic resources,  including wetlands, play an important role in our lives.  They perform
Valuable ecological, water  quality, hydrologic and economic functions. Yet these areas are rapidly
disappearing or being degraded to the point that their important benefits can no longer be realized.
Increased awareness and appreciation of the values of these natural areas can lead to a greater
willingness and ability to protect what is left.

       The concerned and informed citizen can play an important role in the protection of wetlands
in American communities. Once familiar with nearby wetlands and other aquatic resources citizens
can provide meaningful comments on public notices on applications for Section 404 permits.  In
addition, one of the most effective enforcement mechanisms for the Corps and EPA is notification
of either agency when citizens believe wetland filling is not permitted or the permit conditions are
being violated.   Comments  are also  encouraged  on proposed regulations  implementing
environmental programs at the Federal, State, or local level.

       Citizens can also form activist groups to protect and possibly even purchase sensitive aquatic
environments such as wetlands, free flowing streams, lakes, or estuaries that  are  subject to
development pressure.  Once formed, the group can work with local governments to establish
protective zoning or State government to use water quality laws for protection of these aquatic
ecosystems. In addition to these efforts, a citizens group can encourage EPA and the Corps to help
the protection  effort through advance planning  such as advance identification or special area
management planning..   '    .      .      .
                                          •-^
ADDITIONAL INFORMATION

       Because the Section 404 program is complex, and application of regulations and policies to

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specific cases is often-specif, the reader may want to contact local offices of EPA or the Corps for
additional information.  For more information on wetlands, contact EPA Headquarters, Office of
Wetlands, Oceans and Watersheds, Ariel Rios Building (4502F), 1200 Pennsylvania Avenue, NW,
Washington, DC 20460.
EPA Office of Wetlands Protection
October 1989

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                                     APPENDIX 1
                           Federal Water Pollution Control Act
                       Renamed Clean Water Act, 1977 Amendments

The 1972 Amendments to the Federal Water Pollution Control Act included the addition of the
Section 404 regulatory program.
Section 301(a):
Section 309
       404(s):
                    States that any discharge of a pollutant (including dredged or fill material) is
                    unlawful unless permitted under other sections of the Act, including Section
                    404.
Section 404(a):
Section 404(b):
                    Provide that the EPA and Corps may initiate administrative or judicial
                    enforcement action against violations, including discharging dredged or fill
                    material without a Section 404 permit, or violating the conditions of an
                    issued permit.

                    Provides that  the Corps may  issue  permits, after, public notice and
                    opportunity for a pub lie hearing, for the discharge of dredged or fill material
                    into waters of the United States, at specified disposal sites.

                    Each disposal  site shall be specified by the Corps through application of
                    guidelines  developed by the EPA in conjunction with the Corps.  The
                    guidelines (known as the Section 404(b)(l) Guidelines) shall be based upon
                    criteria comparable to those applicable to ocean discharges under Section 402
                    (National Pollutant Discharge Elimination System) permits defined at Section
                    403(c).                            .

                    EPA is authorized to prohibit  the specification (including withdrawal of
                    specification) of any disposal site and to deny or restrict the use  of any
                    disposal site. The prohibition or restriction is based, after public notice and
                    opportunity for public hearing, on unacceptable adverse effect on municipal
                    water supplies, shellfish beds and fishery areas (including spawning and
                    breeding areas), wildlife, or recreational areas.

The 1977 amendments to the FWPCA included additions to Section 404, Subsections (d) thorugh
(f) were added; notable changes were:
Section 404(c):
Section 404(e):
                    Provides authority to the Corps to issue permits for a period of up to 5 years
                    provided the activities covered are similar in nature and will have only
                    minimal adverse environmental effects individually and cumulatively. The
                    general permit maybe issued on a nationwide, regional or statewide basis and
                    is subject to application of the Section 404(b)(l) Guidelines and public notice
                    and opportunity for public hearing procedures.
                                                                                        ^^•^••f-S^MnyK,^
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 Section 409(f):
 Section
       404(g)-(l):
 Section 404(q):
Section 404(r):
Exempts discharges associated with certain limited activities, most dealing
with minor agricultural or silvicultural activities, from requirements to obtain
a permit.  Discharges associated with activities that convert a water of the
United States to upland use are not exempt.
Establishes a mechanism for States to assume administration of the Section
404 regulatory program in certain waters of the United States. Those waters
that are subject to tidal action and their adjacent wetlands and waters which
are presently used, or with reasonable improvement could be  used, to
transport interstate or foreign commerce and their adjacent wetlands are not
assumable (these waters are the same as those the Corps determines to be
subject to Section 10 of the Rivers and Harbors Act of 1899, except for
historical Section 10 waters, plus adjacent wetlands).

Requires that  the  Corps enter into memoranda of agreement with EPA,
Department of Commerce, Department  of the Interior, Department of
Agriculture, and Department of Transportation to minimize duplication and
delay in decisionmaking.

Provides that  the discharge of fill material as  part of federal project
specifically  authorized by Congress is not subject to the requirements of
Section 404, provided that information on the effects of the discharge,
including consideration of the Section 404(b)(l) Guidelines, is included in
the environmental impact statement under the National Environmental Policy
Act provided to Congress prior to authorization.
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                                         APPENDIX 2
                                   Section 404(b)(l) Guidelines            . .
                                    Restrictions on Discharges

       In order to be permitted under Section 404 of the Clean Water Act, an activity must be found to be
in compliance with the Section 404(b)(l) Guidelines (40 CFR 230). There are several specific restrictions
on discharges listed in 40 CFR 230.10.                       .

40 CFR 230.10(a):     States that "no discharge of dredged or fill material shall be permitted if there is a
                      practicable alternative to the proposed discharge that would have less adverse
                      impact on the aquatic ecosystem,, so long as the alternative does not have other
                      significant adverse environmental consequences."  A practicable alternative is
                      defined as one that " is available  and capable of being done  after taking into
                      consideration cost, existing technology, and logistics in light of overall project
                      purposes."   An alternative does not have to be owned by an applicant to be
                      considered practicable.  The burden of proof is  always on  the applicant to
                      demonstrate that there are no available practicable alternatives.  Moreover, the
                      alternatives test includes two presumptions were discharges are proposed for special
                      aquatic site, including wetlands:

                      1. for activities which are not water dependent, "practicable alternatives that do not
                      involve special  aquatic  sites are presumed to  be  available,  unless clearly
                      demonstrated otherwise," and

                      2.  "where a discharge is proposed  for a  special aquatic  site,  all practicable
                      alternative to the proposed discharge which do not involve a discharge into a special
                      aquatic site are permitted to have less adverse impact on the aquatic ecosystem,
                      unless clearly demonstrated otherwise."

40 CFR230.10(b):     This restriction is based on compliance of the  proposed activity with several
                      environmental laws, including: applicable water quality standards, toxic effluent
                      standards, Endangered Species Act, and marine sanctuaries designated under the
                      Marine Protection, Research, and Sanctuaries Act of 1972.

40 CFR 230.10(c):     This restriction states that "no discharge of dredged or fill  material shall be
                      permitted which will cause or contribute to significant degradation of the waters of
                      the United States.: This determination involves  a consideration of impacts on
                      human health; aquatic life and wildlife dependent on aquatic ecosystems, aquatic
                      ecosystem diversity, productivity and stability, and recreational, aesthetic, and
                      economic values of the ecosystem.

40CFR230.10(d):     This restriction states that "no discharge  of dredged or fill  material shall be
                      permitted unless appropriate and practicable steps have been  taken which will
                      minimize (mitigate) potential adverse impacts of the discharge  on the aquatic
                      ecosystem."
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