i _
                              f   November 4t 1992
                                Part VIII
                                EnyironmentaL
                                Protection Agency
                                40 CFR Part 230
                                Exception From Wetlands Mitigation
                                Sequence for Alaska; Proposed Rule

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52716     Federal Register /  Vol.  57.  No. 214  /  Wednesday. November 4. J992 ^ .ftoppsed _Ruteg_
 ENVIRONMENTAL PROTECTION
 AGENCY

 40 CFR Part 230

 IFRL-4530-6J

 Exception From Wetlands Mitigation
 Sequence for Alaska

 AGENCY: Environmental Protection
 Agency.               .     '
 ACTION: Proposed rule.   	.,_,,__

 SUMMARY: The Environmental Protection
 Agency (EPA) is proposing to revise the
 Clean Water Act Section 404(b)(l)
 Guidelines (Guidelines) to provide an
 exception from the wetlands mitigation
 sequence (i.el, avoidance, minimization,
 and compensation) for proposed
 discharges of dredged or fill material
 into wetlands in States with less than
 one percent loss of historic wetlands
 acreage. Under this proposed revision,
 proposed discharges of dredged or fill
 material into wetlands in the State of
 Alaska, which is the only State with less
 than one percent loss of his historic
 wetlands acreage, would be excepted
 from current provisions of the
 Guidelines that require that all proposed
 discharges of dredged or fill material
 represent the least environmentally
 damaging practicable alternative (i.e.,
 avoid adverse impacts to the aquatic
 ecosystem). In addition, this proposed
 revision would no longer require, for
 discharges of dredged or fill material  '
 into wetlands in the State of Alaska,
 that all appropriate and practicable
 measures to  compensate for potential  •
 unavoidable adverse impacts on the
 aquatic ecosystem be undertaken. For
 the State of Alaska, minimization of
 impacts would constitute the requisite
 mitigation necessary to  meet the
 mitigation requirements of the
 Guidelines. The Administrator of EPA,
 in consultation with the Secretary of the
 Interior and  the State of Alaska, will
 monitor wetlands losses in the State to
 determine if the assumptions underlying
 this rule remain valid and whether the
 exception would continue to apply. This
 rule is being proposed in accordance
 with the President's August 9,1991,
 Wetlands Plans.
 DATES: Written comments must be
 submitted on or before December 21,
 1992.  '
 ADDRESSES: Written comments should
 be submitted to: Mr. Gregory E. Peck,
 Chief, Wetlands and Aquatic Resources
 Goodin at (202) 260-9910 or Mr. Clifford
 Rader at (202) 260-6587.
 SUPPLEMENTARY INFORMATION:

 Background
   The Federal Water Pollution Control
 Act of 1972 (renamed in 1977 as the
 Clean Water Act) established, at section
 404, a regulatory program for the
 evaluation of permit applications for
 propose"d discharges of dredged or fill
 material into waters of the United
"States, including wetlands. Section  ,
 404(a) authorizes the Secretary of the
 Army, acting through the Chief of
 Engineers, to issue permits specifying
 disposal sites in waters of the U.S. in
 accordance with regulatory
 requirements of the Section 404(b)(l)
 Guidelines (Guidelines). The Guidelines,
 which were published as final
 regulations on December 24,1980 (45 FR
 85338), are the substantive
 environmental criteria used in  "   •
 evaluating discharges of dredged or fill "
 material under section 404 of the Clean
 Water Act
   The Guidelines provide  four general
 restrictions in 1230.10 that must bejnet
 before a permit can be issued .'" • ^i-\
 authorizing the discharge of dredged or  "'
 fill material into waters of the U.S.
 Today's rulemaking involves two of ;
 these restrictions: The prohibition in
  § 230.10(a) against any discharge where
 •there is a less damaging practicable
  altema'tive and the requirement in
  § 2$0.10(d) that appropriate and
 practicable steps be taken to minimize
:  potential harm to the aquatic ecosystem. .
 ," As~required by the Guidelines and  - •
 . clarified in an EPA/Department of the
  Army Memorandum of Agreement
  (MOA) concerning the determination of
  mitigation (55 FR 9210. March 12,1990).
  these two regulatory provisions are the
>- basis for the Guidelines' three step
  sequence for mitigating potential
  adverse impacts to the aquatic
  environment associated with a proposed
  discharge (i.e., first avoidance, then
  minimization,  and lastly compensation
  for unavoidable impacts to aquatic
  resources).           -      .  „•    ,
    The mitigation process is designed to
  establish a consistent approach to be
  used in ensuring that all practicable'
  measures have been taken to reduce
  potential adverse impacts associated
  with proposed projects in wetlands and
  other aquatic systems..The first step in
  the sequence requires the evaluation of
  potential alternative sites to locate the
  proposed project so that aquatic impacts
  are avoided to the maximum extent
  Regulatory Branch, Wetlands Alaska
  Docket (A-104F), U.S. EPA. 401M StreeT practicabfe. As the next step in the
  SW.. Washington. DC 20460.            sequence, remaining impacts are
  FOB FURTHER INFORMATION CONTACT:
  Details are available from Mr. John
   minimized, by making changes in project
   design or construction methods that
 reduce overall project impacts. Lastly.
 after all practicable steps have been
 taken to avoid and minimize potential
 adverse effects, compensation for
 remaining unavoidable impacts is
 sought by such measures as wetlands
 creation or restoration in order to
 replace lost aquatic functions and
 values. The result is prevention of
 wetlands impacts when reasonable and
 practicable; but where the actions
 necessary to prevent such impacts are
 not available and capable of being done,
 associated losses of wetland and
 aquatic functions and values are offset
 to the extent appropriate and
 practicable with compensatory
 mitigation. As recognized in the MOA,
 no net loss of wetlands is a goal of the
 section 404 regulatory program.
   On August 9,1991. the President
 issued a plan for protecting wetlands
 (President's plan or plan) that contains
 proposed provisions  to "improve and
 streamline the current regulatory
 ' system." One  element of the plan
 provides that "States with less than a 1
 percent historic rate  of wetlands .
 development wiU be able to satisfy
 permit requirements through
 minimization." Based on historic loss
r data (Dahl. T.E., 1990. "Wetlands Losses
 in the United States 1780's to 1980's"     s
 U.S. Department of the Interior. Fish and
 Wildlife Service. Washington, DC, 21
 pp.), this provision is applicable only in
 the State of Alaska. According to this
 data, using the estimated 170,200,000
 acres of wetlands present in Alaska in
• the late 1700's, only 200,000 acres have
. been converted, or 0.1 percent of the
 State's original wetland acreage. Such a
 low loss rate in Alaska indicates a
 minimal impact to the State's wetlands.
 An estimated 45 percent of Alaska's
 surface area remains wetlands.
    No other State in the U.S. has
 experienced so low a percentage loss of
 original wetlands acreage as has
 Alaska. The average wetlands loss for
 States outside of Alaska is
 approximately 53 percent of.their.
 original wetlands acreage.
    In addition, the U.S. Fish and Wildlife
 Service has determined that 40 percent
 of Alaska's wetlands—€8 million  acres,
 more than the total remaining wetlands
 in Florida, Louisiana, Minnesota, Texas,
 North Carolina, Michigan, Wisconsin, •
 Georgia, Maine, and South Carolina
 combined—are already in federal or
 state conservation units. In many cases
 in Alaska, there are no practicable
  alternatives for development except in
 wetlands due to factors such as
  topography and climate. For example, in
  Alaska, because of the high proportion
 - of land that is wetland, it is difficult to

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               Federal Register  / Vol. 57, No.  214 / Wednesday, November 4, 1992 / Proposed Rule*    . 52717
   avoid .impacts to wetlands •when.
   development end growth occur.
   Similarly, due to the high proportion of
   wetlands in Alaska, it is difficult to
   compensate for wetland loss. In most
   other states, compensation takes the
   form of restoration of historic wetlands.
   In the case of Alaska, because of its
  . extremely low loss rate, it is
   exceptionally difficult to restore historic
   wetlands. In addition, opportunities for
   compensatory mitigation are reduced
   when loss rates are low and there are
   many unimpacted wetlands.
     EPA and the Department of the Army
   issued a joint memorandum to their field
   staff on January 24,1992, that
   emphasized existing mitigation
   provisions in the Guidelines and the
  • EPA/Department of Army MO A that
   currently apply to most.permit decisions
   in Alaska. Consistent with the
   Guidelines and MOA,'the guidance
  -noted that the agencies should strive for
   avoidance of impacts to existing aquatic
   resources, and that there is a general
   goal of a -minimum of one for one
   functional replacement of wetlands.
   However, the guidance emphasized that
   the MOA also stales  that "this minimum
   requirement may not be appropriate and
   practicable, and thus may not be
'. Jslevant in all cases." This statement is
, farther explained in footnote seven of
   the MOA, which states in part
     For example, there are certain areas where,
   due to hydrological conditions,  the  •
   technology for restoration or creation of .
   wetlands may not be available  at present, or
   may otherwise be impracticable. In addition,
   avoidance, minimization, and compensatory
   mitigation may not be practicable where
   there U a high proportion of land which is
   wetlands.
                /
     The guidance memorandum notes that
   this footnote makes it clear  that there
   are areas where it may not be
   practicable to restore or create
   wetlands; in such cases compensatory
   mitigation is not required under the
   Guidelines.
     Section 404{b)(l) grants authority to
   the Administrator to develop guidelines
   for use by the Secretary of the Army
   (i.e.. the Corps of Engineers) in
   designating disposal sites for dredged or
   fill material into waters of the United
   States. Section 404(b)(l) commits to the
   AdmirJstrator's discretion the exact
   terms of those guidelines, which "shall
   be based upon criteria comparable  to
  . the criteria applicable to the territorial
   seas, the contiguous zone, and the ocean
   under [Clean Water Act] section 403(c}."
   EPA believes that, if there is a
   reasonable basis for treating Alaska
   wetlands differently from wetlands in
   the rest of the United States (based on  .
   the gee-graphic, climatic, historical,  and
 other factors summarized above),.*, _•
 section 404(b)(l) provides sufficient -",;'..
 discretion to the Administrator to   ;
 modify the section 404(b}{lj Guidelines
 to treat Alaska differently for wetlands -
 sequencing purposes.      -     ......
 Summary of Proposed Ride
  Today's proposed rule would revise
 the Guidelines to provide an exception <
 from the wetlands mitigation sequence
 for proposed discharges of dredged or
 fill material into wetlands in the State of
 Alaska. This rule is being proposed in
 accordance with the President's August
 9,1991, Plan and in recognition of: (1)
 The relatively low historic loss 0f
 wetlands in the  State of Alaska; the
 State retains over 99 percent of its
 original wetlands  acreage, which totals
 approximately 170,000,000 acres, or 45
 percent of the State's total surface area;
 (2) the significant  percentage of Alaska's
 wetlands being  managed as Federal and
 State conservation units; (3) the limited
 availability of upland alternatives for
 development projects given the high
 percentage of wetlands in Alaska, as
 well as large expanses of permafrost,
 mountainous terrain, glaciers and lakes;
 and (4) the technical and logistical
 difficulties in restoring or creating
 wetlands in large portions of Alaska;
 some of these difficulties include  ' .
•permafrost hydrology, unavailability of
 restoration sites, and limited creation  •'••'
 opportunities  due  to the high proportion
 of wetlands,    . • •          '  :       ./•
  Under this proposed revision,-"  .    -
 proposed discharges of dredged or fill
 material into wetlands in the State of
 Alaska would not be subject to .current
 provisions of the Guidelines that require
 that all proposed discharges of dredged
 or fill material represent the least
 environmentally damaging practicable
• alternative. In addition, this proposed
 revision would no longer require, for
 discharges of dredged or fill material
 into wetlands in the State of Alaska.   •
 that all appropriate and practicable
 measures to compensate for potential
 unavoidable adverse impacts on the
 aquatic ecosystem be undertaken.  For
 discharges of dredged or fill material
 into wetlands in the State of Alaska.
 minimization of impacts would
 constitute the requisite mitigation
 necessary to meet the requirements of
 the Guidelines. The proposed rule would
 revise | 230.10 (a)  and (d), and add a
 new subsection  at 230.10{a){6} to codify
 these changes. Conforming changes are
 also proposed at §§ 230.5(c), 230.5(j),
 and 230.12(a)(3).
  EPA notes that subpart H of part 230.
 which remains unchanged, details
 possible actions to minimize adverse
 impacts of a proposed discharge. These
actions may be undertaken to minimize
adverse Impacts of proposed discharges
in the State of Alaska, although the
wetlands development and restoration
techniques discussed .in 5 230.75(d) are
no longer applicable to Alaska as part of
the wetland mitigation sequence which
applies in other States. Appropriate and
practicable steps to minimize potential
adverse impacts of proposed discharges
in Alaska, as elsewhere, would continue
to include the use of such techniques as
altering project size or configuration.
  EPA also notes that nothing In this
rule affects the current provision of
S 230.10{c) of the Guidelines, which
requires that  no permit can be. issued
where the proposed discharge would
result in significant degradation of the
aquatic environment. In addition,
S 230.10(b) remains unchanged, which
requires, among other things, that no
discharge be  permitted if it violates
State water quality standards or
jeopardizes threatened or endangered
species.
  It is important to note that the
exception in Alaska from the
requirements found at § 230.10(a}
applies only to requirements under
section 404 of the Clean Water Act
Today's proposed rule does not
eliminate the need to conduct othw •
applicable alternative'analyses •''"
potentially required by such statutes as •
the National Environmental Policy Act,
Endangered Species Act, or other
regulations or Federal planning  '
processes.            "     ".^ :'.'' '..
  It is also important to note that this
rule does not affect the ability of the
State of Alaska to protect what It
considers to be high value wetlands .
using its authority under section 401 of
the Clean Water Act, applicable   .. .
authorities under the Coastal Zone  . ,
Management Act, or other authority
under State or Federal law. Neither does
this rule affect the ability of local
governments  to protect wetlands
through their  power to regulate land use.
to the extent allowable under Alaska
law. With regard to the most relevant
Federal statutes, section 401(a)(l) of the
Clean Water  Act provides that "No
license or permit shall be granted if
certification has been denied by the .
State * * *".  Similarly, the Coastal Zone
Management  Act (16 U.S.C.
1455{c}(3)(A3) provides that "No-license
or permit shall be granted by the Federal
agency until the State or its designated
agency has concurred with the
applicant's certification * * *", although
under certain circumstances the
Secretary of Commerce retains the right
to over-rule the State.

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 52718      Federal Register /  Vol. 57.  No. 214  /  Wednesday, November 4. 1992 / Proposed Rules
   In addition, the Administrator of EPA,
  in consultation with the Secretary of the
  Interior and the Slate of Alaska, will
  monitor wetlands losses in the State to
  determine if the assumptions underlying
  this rule remain valid and. whether the
  exception wouFd continue fo apply.
   Efforts underway by Jhe State of
  Alaska to develop a wetlands
  categorization approach as part of a
  State regulatory package for freshwater
  •wetlands may prove  useful for the
  identification and protection of high
  value wetlands. Examples of the types
  of wetlands which may be identified as
  being of high value include, but are no!
  necessarily limited to, fenportant
  anadroroous fish spawning habitat and
  significant spawning and nursery
  habitat for commercially valuable
  marine fisheries. This rule is not
  intended to, and should not conflict with
  the State's effort*. Indeed. EPA
  specifically invites comment on bow
.  Alaska's wetlands regulatory initiative
  might be integrated into EPA's final role.
  and how Federal agencies might most
  appropriately apply Alaska'* system for
  identifying high value wetlands. More
  generally, EPA invites jwfclic comment ,
  on whether or not it would be
  appropriate for this rale to- more directly '
  address the protection of, high value
  wetland* as identified through Alaska's^
  wetlands categorization process,
  including the option of maintaining the
  full sequencing of avoidance.  •
  minimization, and compensation for
  high value wetlands*  and if appropriate,
  how this might be accomplished.
   This proposal will become effective 30
  days after publication of a final rule in
  the Federal Register.    :
  Paperwork Reduction Act
   Today's rule places no additional
  information collection or record-keeping
  burden on respondents. Therefore, an
  information collection request has not
  been prepared and submitted to the
  Office  of Management and Budget under
  the Paperwork Reduction Act (44 U.S.C.
  3501 et seq.].
  Executive Order 12291 tod the
  Regnlsrtory Ftedbtlitjr Act
   The Environmental Protection Agency
 has determined that the revisions to this
  regulation do not constitute a major
.  proposal requiring the preparation of a
 regulatory analysis under E.0.12291.
 This rule was submitted to the Office of
 Management and Budget for Review
 under E.0. 12291. Pursuant to section
 605(b) of the Regulatory Flexibility Act,
 the Environmental 'Protection Agency
 certifies that this regulation will not
 have a significant impact on a
 substantial  number of small  entities.

 List of Subjects in 40 CFR Part 230
   Alaska, Water pollution control,
 Wetlands.
 William ICReillSr,
 Administrator, Environmental Protection
 Ag&ocf.
   Accordingly, 40 CFR part 230 is
 proposed to be amended as follows:
 40 CFR CHAPTER f— {AMEXDEDJ

 PART 230-SECTION 404
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