'OSLO- Location and Wetland Values: Some Pitfalls of Off site Wetland Mitigation in the Chesapeake Watershed Curtis C. Bohlen and Dennis M. King University of Maryland System Center for Environmental and Estuarine Studies Chesapeake Biological Lab P.O. Box 38 Solomons, MD 20688 To. appear in: S. Nelson and P. Hill, eds., Towards a Sustainable Coastal Watershed: The Chesapeake Experiment. Proceedings of a Conference: CRC Publication No. 149. Chesapeake Research Consortium, Edgewater, Maryland. This work was supported under Cooperative Agreement CR-818227-CI from the U.S. Environmental Protection Agency with the University of Maryland Center for Environmental and Estuarine Studies. This support is gratefully acknowledged. '' . EPA-230-R-94-020 ------- Location and Wetland Values: Some Pitfalls of Offsite Wetland Mitigation in the Chesapeake Watershed Curtis C. Bohlen and Dennis M. King University of Maryland System Center for Environmental and Estuarine Studies Chesapeake Biological Lab P.O. Box 38 Solomons, MD 20688 Introduction Historical Mitigation Wetland mitigation—compensating for the destruction or degradation of an existing wetland by creating, restoring, or enhancing other wetland resources—has long been, and continues to be, controversial. Compensatory wetland mitigation emerged in the 1970s as a way for .sponsors of projects with adverse impacts to wetlands to obtain wetlands permits they could not otherwise get, by agreeing to undertake activities to offset a portion of those impacts (Want-1993). A deep mistrust of mitigation emerged within the environmental community at that time, because mitigation was not only frequently ineffective, but also often resulted in greater impacts to existing wetlands than would have been allowed in the absence of mitigation. Permit seekers today must generally demonstrate that a proposed project is in the public interest without mitigation, and also show that impacts to wetlands have been, avoided and minimized to the maximum extent practicable before a permit will be issued. Thus the decision to issue or deny a permit has been separated from establishment of mitigation requirements, and it is harder to argue that mitigation increases conversion of existing wetlands. Nevertheless, mistrust of mitigation and concern about potential abuses of mitigation remains strong within the environmental community. Mitigation remains at the center of controversy over wetland policy in part because of a poor record of compliance with mitigation requirements, , high reported failure rates for mitigation projects that are undertaken, and low environmental value even of superficially successful projects. Limitations of restoration science may account for some historical mitigation failures, however, considerable evidence suggests that wetland mitigation's poor record is more a result of institutional and regulatory failures (King 1991, King 1992, King and Bohlen 1994a, King arid Bohlen 1994b). ------- January 24, 1996 DRAFT Page 2 A New Focus In 1988, the National Wetland' Policy Forum developed a widely accepted national goal of no net loss and an eventual net gain of wetland resources by acreage and function (Conservation Foundation 1988). This goal has been . formally adopted by the Chesapeake Bay Program, included as the explicit goal of Maryland's Nontidal Wetlands Protection Act, and adopted by federal regulators (Chesapeake Bay Program 1988, Maryland Code 1989, Environmental Protection Agency and Department of the Army 1992). With a clear goal' for wetland policy, regulators have been developing rules and policies to improve mitigation practice. At the same time scientists have been taking a •closer look at why mitigation projects succeed or fail and are beginning to tease apart the technical, economic/and regulatory barriers to environmentally sound mitigation policies (Bernstein and Zepp 1990, Crewz and Lewis'1991, Erwin 1991, Florida Department of Environmental Regulation 1991, Harvey and Josselyn 1986, Kusler and Kentula 1991, Race 1985, King and Bohlen 1993, Kentula et al 1992). Little attention, however, has been given to the environmental and economic consequences of "off-site" wetland mitigation—allowing wetland impacts at one site to be offset by mitigation efforts somewhere else. In off- site mitigation wetlands at one location are, in essence, traded for wetlands somewhere else. When these trades are examined from a watershed or landscape perspective, however, it becomes clear that wetlands at different locations, even if functionally similar, do not generate the same ecological and economic values and do not benefit the same people. These differences in the level and distribution of ecological and economic values associated with wetlands at different locations are the focus of the research summarized here. On-site vs. Off-site Mitigation Existing regulations and other policies favor mitigation at the site of the wetland impact over off-site mitigation. Cogent criticisms of this, approach have been raised, both on environmental and economic grounds (Willard and Klarquist 1992, Shabman et al. 1994, White House Office of . Environmental Policy 1993). Environmentally, critics of a preference for on- site mitigation point out that it sometimes results in construction of wetland mitigation projects in questionable locations, such as within highway cloverleaves, or in the middle of large commercial developments. Such siting decisions may limit some wetland functions, by all but ensuring the mitigation wetland will suffer from poor water quality, provide inferior • wildlife habitat, and offer little in the way of aesthetic, recreational, or'.' educational value. Economically, the preference, for pn-site wetland mitigation often increases mitigation costs by forcing mitigation in areas where providing appropriate wetland hydrology is difficult, and land is expensive. ------- January 24,1996 ' DRAFT . ' Page 3 The controversy over on-site versus off-site wetland mitigation has taken on more importance as interest in wetland mitigation banking has increased. Mitigation banking refers to the practice of using one or more (usually large) wetland creation or restoration projects to provide mitigation for impacts from many smaller wetland impacts. By its very nature^ mitigation banking involves off-site mitigation. Thus issues and trade offs related to on-site versus off-site wetland mitigation are critical for understanding the long term environmental, economic, and policy implications of the widespread adoption of mitigation banking. Tlie Urban-Rural Landscape Gradient In the modern world, human activity alters; even the most remote landscapes (McKibben 1989), but some landscapes are affected to a much greater degree than others. Urban areas are more intensively manipulated by humans to achieve economic and social ends than are areas far from urban centers. Rural landscapes, although sometimes shaped in less direct ways, are no less profoundly influenced by human activity. The notion that urban areas as structured by humans, and rural areas are structured by nature ignores the often profound human transformation of landscapes that has occurred even in the most remote rural hinterlands that surround urban centers (Cronon 1991). The rural landscape is not natural, nor is the urban landscape artificial. Both landscapes are the result of an ongoing interaction between human economic and social systems and physical, chemical, and • ecological processes. Landscapes and the ecological and human systems of which they are composed change in systematic, if complex, ways as one moves from an urban center, through suburbs, to high intensity agriculture, through low- intensity agriculture, to non-agricultural forest, and wildlands.. This urban- rural landscape gradient (McDonnell and Pickett 1990), although often unrecognized by policy makers, in fact underlies and determines the success of much water quality and wetland policy. . Anthropogenic wetland impacts, in particular, are strongly structured by the urban-rural landscape gradient. Wetland impacts in rural areas are driven, in large part, by forestry and agricultural practices; losses in urban, suburban, and resort areas, by private and public development activities. Moreover, private development activities in urban-suburban and resort areas are less likely than their rural counterparts to avoid wetland impacts altogether, or reduce impacts to the point that mitigation is not required. Sponsors of more profitable suburban projects are generally able to afford the transaction costs associated with seeking an individual wetland permit, and in a more developed landscape, avoiding wetland impacts is typically more difficult because of constraints imposed by existing land uses. Thus individual wetland permits, and associated demand for wetland mitigation, are not randomly scattered across the landscape/but instead cluster in ------- January 24, 1996 '• DRAFT . '. . Page 4 suburban and resort areas, and in-areas where, human activity is-generally more intensive. . , Wetland mitigation costs also-vary along the urban-rural landscape gradient, with higher costs in urban settings and lower costs further from urban centers. The price of land is typically highest in urban areas, and the costs of some inputs to wetland mitigation projects (e.g. labor, costs for * disposal of fill material) also decline as the mitigation site becomes more distant from urban areas. Qualitative differences in project characteristics between urban and rural projects also have a profound effect on total project costs. Urban and suburban watersheds are often degraded by hydrologic modification, as well as by chemical and thermal effects of stormwater runoff. Thus restoration and creation projects must be carefully engineered and constructed to handle the stresses imposed by the surrounding urban setting. Moreover, many desirable sites in urban and suburban landscapes where wetland creation or restoration would be relatively inexpensive are ' unavailable for mitigation purpose's because of existing or alternative high- value land uses. Thus urban and suburban mitigation must often be located in second or third best sites, further driving up project costs and risks. On-site wetland mitigation (by definition) occurs in the same landscape context as the wetland impacts which it is meant to offset. Yet off-site mitigation is unlikely to be distributed across the urban-rural gradient in the same way that wetland impacts are. mdividuals, firms, and government institutions have a strong cost-based incentive to construct mitigation in rural settings, even for impacts in urban and suburban settings. Without clear guidance about ecological and economic trade offs, regulators may perceive that they have little reason to resist replacing urban or suburban wetlands with wetlands in rural areas because both the probability of successful wetland creation or restoration and the overall quality of the resulting wetland, are generally thought to increase as one moves from urban to more natural settings (NRC 1992). Thus expanded use of off-site wetland mitigation and widespread implementation of wetland mitigation banking is likely to lead to significant, unplanned changes in the distribution of wetlands across the urban-rural landscape gradient. The long term consequences of such a redistribution, even if it does not involve any loss of wetland acreage or function, are not well explored. ' • i " Basic Approach In the following sections, we provide a preliminary examination of the potential consequences of .replacing wetlands in urban and suburban areas with wetlands in areas further from urban centers. The basic approach we will take will be to consider how the location and landscape context of wetlands affect the values they provide to human society. -First, we introduce some conceptual tools for understanding wetland functions and values in a' landscape context. We then present three examples in which location plays an important role in determining,wetland functions, values, or both. Finally, ------- January 24, 1996 DRAFT Page 5 we present analytic tools that may help wetland managers and others assess how location and landscape context will affect wetland functions and values on a case specific basis. Conceptual Tools Wetlands are natural systems that exist independent of their significance to humans. Unlike an automobile that has a specific purpose for which it was designed, a wetland has no specific purpose, yet it generates a variety of benefits to humans. Conventional treatment of wetland benefits recognizes this fact and distinguishes between wetland functions, and wetland values. Objectively measurable properties of a wetland (e.g. size of a breeding duck population, denitrification rates) are considered functions. Subjective experience of the wetland or the flow of products and services it produces (e.g. good bird watching, improved downstream water quality) are considered values. To a first approximation, functions are the domain of natural scientists, values, the domain' of social scientists, philosophers, and politicians. Functions are a, property of the wetland alone; values are a property of the interaction of the wetland and its functions with social, political, economic and ethical systems. Values of wetlands and other natural systems come in many forms. While the market values produced by wetlands (timber, fish, hunting rights, . etc.) are often the easiest to understand and measure, wetland values are much broader, and include: non-consumptive use values (e.g., education), non-use values (e.g., flood protection), option and bequest values (value of potential future wetland benefits, to oneself or later generations), and existence values (values of knowing something exists). Moreover, some wetland values accrue far from the wetland thai: provides them because of movement of water and migratory fish, mammals, and birds. These off-site values are no less important than on-site values, but they are much harder to understand and measure, and much harder to manage. The practical difficulties of tracing chains of causation from wetland functions to discrete wetland values are formidable. Figure 1 suggests the complexity of the task for a single wetland function, sediment trapping. Many wetlands trap and retain sediments because water flow velocities in wetlands are typically too low for sediments to remain suspended in the water column. Thus, due to purely physical processes, many sediments that enter wetlands in association with flooding events or through overland flow settle out in the wetland, reducing the sediment loads of adjacent water bodies. Reduced sediment loads alter a series of ecological and physical properties of downstream environments, each of which in turn has linked ecological, physical, and economic impacts. Many distinct values are ultimately affected by wetland sediment trapping functions. Moreover, several causative pathways may lead from this function to changes in a single wetland value (e.g. support of biodiversity). This complexity is further compounded by the geographic distance that often exists between the site of ------- January 24, 1996 • DRAFT . • ' ' . Page 6 wetland functions (the wetland) and the sites at which values accrue (Bohlen 1992). Thus wetland functions and wetland values are related, but not in the simple and direct way that is sometimes assumed in a wetland management context, in which one must evaluate the extent to which one wetland is equivalent to another in environmental and economic terms. Examples Function Depends on Location—Biodiversity i " , Metapopulations are collections o.f interdependent, semi-autonomous populations of an animal or plant, species of interest (Gilpin and Hanski 1991). Although each component population may persist for many years, occasionally, site-specific processes may lead to the extirpation of one or more of the component populations. Recolonization from adjacent, extant populations can reestablish the population. A component population that goes extinct under one set of conditions (e.g., a dry year) may be highly successful under other conditions (a wet year), which may nevertheless threaten other populations with extinction. Thus populations may be dependent on one-another for recolonization in the event of a local extinction, as well as for infrequent outcrossing to maintain genetic diversity. the metapopulation as a whole is thus more resilient than the populations of which it is composed. Metapopulations in fluvial (stream and river) and flood plain ecosystems are likely to have unique features because of stream geometry.. Unlike habitat islands in an upland matrix, fluvial habitat patches are linked by a branched, and directed stream network. Small, low order streams joiri to become larger order streams, which eventually make large river systems. Water flow moves organisms and propagules preferentially downstream, from low-order streams to higher order streams, which often provide qualitatively different habitat conditions (Vannote 1972). This branched topology has profound implications for dispersal patterns within fluvial ecosystems. Locations, especially in small, low order streams, that appear close together on a topographic map may be separated by large stream distances, and thus may be effectively isolated from one another for dispersal .'. of aquatic species. Moreover, dispersal probabilities for many species along ', stream reaches may differ depending on whether dispersal is occurring upstream or down. These properties suggest that fluvial metapopulations may be strongly dependent on key populations located at or near branch points in fiver and stream systems that can link otherwise separated upstream populations. . ' Humans have long relied on surface waters for irrigation, drinking water, transportation and waste removal services. Thus many urban areas worldwide are located at the confluence of rivers and streams, at the mouths of rivers, and on estuaries. These locations, selected by humans as locations ' ------- January 24,1996 DRAFT | Page 7 for large settlements, may be (if this description of metapopulation dynamics in fluvial systems is correct) likely to harbor key metapopulation links for a variety of aquatic, flood plain, and river bank species (see figure 2). Thus human patterns of land use may sever dynamically important links among the component populations of fluvial metapopulations. Stream reaches in and immediately downstream from sites of human habitation are the most likely stream reaches to show signs of degradation under anthropogenic impacts. Yet protection of biodiversity in the larger stream network may require management of those same stream reaches to provide at least some base level of habitat for fluvial plant and animal species. Thus wetland mitigation practice that overlooks urban and suburban mitigation efforts in favor of rural projects may jeopardize habitat functions in urban and suburban areas that play an important ecological role in the larger landscape pattern, and thus may be 'especially valuable. Value Depends on Location—Stormwater Management The value of certain wetland functions depend completely or nearly completely on where they occur within the context of human-altered landscapes. Where wetland functions are significant because they ameliorate negative consequences of human activity, or because they support productive human activities, they may require proximity of human populations or the presence nearby of specific human uses, impacts, and needs. Stormwater engineers have been experimenting with the use of artificial wetlands for Stormwater management (e.g., Schueler 1992). However, in addition to control of Stormwater quantity, Stormwater wetlands provide improved water quality through trapping and biological processing of sediments, nutrients and toxic organic compounds. These values of Stormwater management wetlands depend upon their location within an urban or suburban context; most wetlands embedded in more natural landscapes can not provide similar functions. Without excess Stormwater generated by impervious surfaces like parking lots, roads and rooftops/there can be no benefits from Stormwater attenuation. Without elevated concentrations of pollutants in Stormwater, a wetland's ability to trap or eliminate pollutants has little value. While natural wetlands are sometimes geomprphically unstable in the flashy stream systems of urban landscapes, where they do persist (including in many suburban landscapes), natural wetlands can provide similar Stormwater treatment and water quality benefits to those provided by engineered wetlands. Thus off-site wetland mitigation, if improperly handled, runs the risk of trading a wetland that provides valuable services ameliorating the consequences of suburbanization for one that simply because of its location, can not. . . ------- January 24, 1996 DRAFT- Page 8 Value Depends on,Proximity to Humans—Forest-Interior Birds Functional Comparisons. From a purely functional perspective/the quality of habitat for forest-interior birds, and especially neotropical migrants, provided by a forested wetland will be greatest if that forested wetland is located far •; . from urban areas in a largely rural, non-agricultural landscape. On an acre- . by-acre basis, therefore, a forested wetland in an urban.setting is likely.to support fewer birds and harbor fewer birds species than a similar-wetland in a less altered landscape; forested wetlands in suburban and agricultural / landscapes are likely to be intermediate in habitat quality. The differences in habitat quality are a consequence of three properties of the changing landscapes across the urban-rural gradient. First, contiguous forest patches (of which a forested wetland would be part) are likely to be small in an urban landscape, intermediate in agricultural and suburban landscapes, and largest in non-agricultural rural areas. Second, the lands surrounding forest patches in an urban landscape provide few resources for -• forest interior birds. In a suburban or rural landscapes, in contrast, surrounding land includes a mix of land uses, including forest patches, lightly •forested suburban areas and agricultural lands, some of which may provide resources valuable to forest interior species. Finally, extant forested areas in urban and suburban landscapes tend to be fragmented by roads, power lines, and other linear structures, while forest patches in agricultural and non- agricultural rural areas tend to be less fragmented. Each of these changes tends to make urban wetland forest less likely to support a robust population of forest interior birds than wetland forests in other landscapes. Value Comparison. The value of a forested wetland as habitat for forest interior birds, unlike purely biophysical measures of wetland performance, is sensitive not only to habitat quality, but also to the way humans interact with and perceive that quality. Undoubtedly, individuals vary widely in whether and how they appreciate (value) forest interior birds. Some may be content merely to know that rare warblers continue to .exist. Others may value the experience of hearing the songs of warblers and other birds, while some serious birders may enjoy the opportunity to-add an unusual species to their life-list. To still others, the wetland, and its birds may provide, an outdoor classroom or laboratory in which to learn and through which to enrich the enjoyment of life for themselves and others. Many of the diverse ways that people appreciate wetland forest birds depend on physical proximity of the person to the bird. One can not enjoy the sound of bird song if one is too far away to'hear it. Moreover, the benefits to one person hearing a bird singing are little affected by the fact that others have seen or heard the bird that same day (bird song is a non-consumptive good). Thus the total, society-wide benefits of wetland forest bird habitat generally increases as more people are able to share in them—at least.until the presence of many humans deteriorates environmental systems that support the birds, ------- January 24,1996 DRAFT ; ' . Page 9 or destroys the broader aesthetic experiences of which hearing bird song is a part. In addition, as the abundance of suitable habitat for forest interior birds in the nearby landscape increases, the value of adding another hectare of suitable habitat (the marginal value of habitat) is likely to decline. In general, habitat for warblers and other forest interior birds is relatively scarce in most urban landscapes and relatively abundant in rural areas. Thus construction of a forested wetland in a rural landscape whose forested wetlands are already abundant is likely to provide fewer values than construction of a forested wetland that provides similar habitat quality in an urban or suburban landscape. Thus there is an important tradeoff between habitat quality which often increases from urban to rural landscapes, and the societal value of habitat, which may decrease along the same landscape gradient. Whether a full assessment of this tradeoff would favor preservation or construction of wetlands close to or far from urban areas will differ from case to case, but is clearly important in evaluating off-site mitigation. Critical tradeoffs can only be evaluated by carefully considering specific wetland management goals, the ecology of wetland systems and the way humans perceive and value wetlands. Analytic Tools The evaluation of off-site wetland mitigation alternatives is a complex process. As the preceding examples show, the evaluation requires regulators to weigh a wide variety of ecological, social, and economic factors in order to assess whether or not a particular mitigation proposal should be accepted. We offer here two simple analytic tools that may be useful to wetland managers and others when considering on-site and off-site mitigation alternatives. j Functions and Values Across a Landscape Gradient The functions and values provided by a created or restored wetland are both likely to change in. predictable ways as a proposed mitigation site changes from an urban setting to a suburban or rural landscape. Values, however, do not necessarily change by the same magnitude or even in the same direction as functions. Moreover, each wetland function and each wetland value may exhibit different patterns of change across the landscape gradient. A simple graphical framework for understanding these patterns on a qualitative basis is presented in figure 3. , Functions. As one moves from urban centers through suburban areas to rural landscapes, the functions of an acre of wetland change. In general the overall quality of a wetland constructed for mitigation purposes is likely to increase. Specific wetland functions, however, may increase, decrease, or change in some more complex way. Some wetland functions (e.g. flood ------- January. 24, 1996 . DRAFT '.''.-.."- Page 10 , storage capacity) are determined primarily by properties of the wetland itself, and show little change with landscape context* Other functions are controlled by dynamic relationships between 'the wetland and its surroundings and show substantial changes.in response to changing landscape context. Habitat functions and sediment trapping functions demonstrate contrasting ways that wetland functions may vary according to the condition of the surrounding landscape./Most habitat functions of a created or restored •wetland can be expected to increase as one moves further from1 urban centers, and the proximity of the wetland to and average quality of adjacent habitat patches improves. Thus habitat functions typically will be inversely related to the level of urbanization of the surrounding landscape. The degree to which a wetland traps sediment, on the other hand, depends on both wetland hydrology and the influx of sediments from the surrounding landscape. Without sediment influx induced by nearby land use practices, the wetland may have the capacity, but notrthe opportunity, to trap sediment. The clearing of land for" road construction and development of , suburban subdivisions is a major source of sediments to aquatic environments in the Chesapeake watershed. Conventional agricultural practices, in which soil bare of crops or crop residues may be exposed for 'extended periods provides another important source. Thus the opportunity to trap sediments is likely to be greatest in agricultural and suburban landscapes, intermediate in urban landscapes, and lowest in extra-agricultural rural landscapes. ,-.--.' Values. Even in the absence of functional differences, wetlands \, embedded in different landscape contexts can generate substantially different values and, perhaps more importantly, provide those values to different segments of society. First, the marginal value of a particular wetland function (the value of a small change in the level of the function) may be expected to decline as one moves from landscapes where wetlands and healthy .- environmental assets are relatively scarce to landscapes where they are relatively abundant. Construction of a forested flood plain wetland for ; mitigation along a stream that already has substantial forested flood plain, for example, may be of little value to society; if the stream in question is already healthy, water quality and ecosystem support services provided by the extra wetland area may be of little consequence. Construction of a similar wetland in a suburban area, in contrast, may offer new recreational opportunities, and make a significant difference, in the health of adjacent stream systems. The value of certain wetland functions are also affected by the wetland's proximity.and accessibility to human populations, and thus by the distribution of populations, roads, and other transportation' facilities surrounding the wetland. Values associated with consumptive and non- consumptive uses of wetlands such as,hunting or bird watching drop off quickly as the distance from the wetland increases. Non-use, values associated with the continued existence of a rare animal or plant species, on the other hand, are less dependent on access or proximity and within certain limits ------- January 24,1996 DRAFT Page 11 r drop off only slightly with distance. Off-site values and non-use values such as flood protection, water quality benefits and general ecosystem support fall somewhere in between, with values depending on proximity to ecological systems linked to the wetland, but not necessarily to the wetland itself. These kinds of relationships can be depicted as shown in Figure 3b where the overall value of a hypothetical wetland function is shown to depend on the per capita marginal value of the function and also on the size of the population that receives the resulting value. By considering, at several locations along an urban-rural landscape gradient, (1) the scarcity value of specific wetland functions of management interest and (2) the number and kinds of people who will receive value at various locations, it should be possible to get a clearer idea of how wetland values change across the landscape gradient, and thus make .better wetland mitigation decisions. If one is concerned only with the number of song birds in the region, it may make sense to favor mitigation sites in rural areas where land costs are low, the surrounding landscape is relatively healthy, and mitigation success is likely. On the other hand if one is concerned about how many people have the opportunity to hear song birds or the consequences for society at large of the existence of urban populations who have no regard for song birds there may be reason to favor more urban mitigation sites despite the higher costs and more exacting construction requirements. , Wetland Values and Functions at Multiple Scales A variety of ecological phenomena, especially at the ecosystem and landscape levels can be understood as consequences of dynamic systems operating at a multiple interdependent spatial and temporal scales (O'Neill et al. 1986). Considerable insight into wetland ecology, management, and politics can be 'gained by consideration of the scales over which wetland functions and values occur and are managed. Understanding the multiple scales of wetland management may be especially important in the context of off-site wetland mitigation and mitigation banking. Figure 4 presents a framework for analyzing wetland management efforts in terms of the scales of strong functional dependence of natural processes, and the scales over which the values of wetlands are perceived. The diagram is based on three observations: (1) Some, but not all wetland functions are dependent on phenomena that occur far from the wetland. (2) Certain wetland values accrue primarily within the wetland, to wetland owners and others with direct physical access to the wetland, while other wetland values accrue at least in part to people far from the wetland itself. And (3) the scales of functional dependence (which determines effective scales of management), and the scales over which benefits accrue (which provides incentive for management) need not be the same. Functional Dependence. Wetland functions, (and thus the values that derive from them), depend on the physical and biological environment of the ------- January 24, 1996 ' DRAFT , Page 12 wetland. However, the scale over which that dependence is significant for management purposes differs among'wetland functions. Thus production of timber in forested wetlands depends loosely, if at all on conditions outside of the wetland itself, and timber production can be managed on a wetland by • wetland or even hectare by hectare basis with little need to consider conditions elsewhere. Waterfowl populations in the, Chesapeake region, in contrast, can not be effectively managed without consideration of conditions hundreds and even thousands of miles away along migration routes, and in breeding areas. -, - For any wetland function, one can identify a range of spatial scales over which actions may be necessary for effective management. For most wetland functions, the smallest scale of management is on the order of a few meters or tens of meters, but the largest scale that needs to be considered varies widely. Wetland functions near -the top of figure 4 will be difficult to manage without considering larger scale (regional, .continental) phenomena. Wetland functions near the bottom of the figure can be managed primarily through local action. Scales Over Which Values Accrue. Values derived from specific wetland functions also accrue at certain relatively well defined spatial scales. The value of a tidal wetland for producing salt marsh hay, for example, accrues directly to the landowner or farmer. The benefits of waterfowl hunting accrue to those with physical access to the wetland. In contrast, benefits of flood attenuation by flood plain wetlands typically do not accrue to the landowner, but to those living some distance downstream. And benefits of the "water quality functions of wetlands are often realized in lakes, impoundments and estuaries like Chesapeake Bay that may be hundreds of miles away. The benefits of certain wetland functions (e.g., carbon ' sequestration, biodiversity) may even accrue over global scales. Figure 4 displays some of these differences in the spatial scale over which wetland values accrue. Wetland'values shown toward the'.right hand side of the figure are those that may be expected to accrue a substantial distance from the wetland itself; wetland values toward the left accrue primarily in or near the wetland itself. ' • Implications. The scales over which the benefits of specific wetland functions accrue, and the scales over which those same wetland functions can be managed do not necessarily match. Where the two scales do not match, wetland managers with the strongest political or financial incentives to protect wetland functions may be unable to do so. At one extreme, one may consider a globally significant wetland function—carbon metabolism. Carbon sequestration and production of methane are wetland.functions that depend on anaerobic conditions within wetland soils. These conditions are hardly ' influenced by properties of the landscape outside of the wetland, except insofar as those conditions alter properties of the wetland, yet the effects of wetland carbon metabolism on atmospheric 'chemistry have global ------- January 24,1996 'DRAFT ! . Page 13 consequences. Landowners, who are best placed to manage wetlands as carbon sinks, have little incentive to do so, while the incentive to manage for carbon uptake and storage is felt most strongly ait national and international levels, where appropriate management tools short of coercive measures are few. Scale-explicit analysis may also highlight some of the most significant and most often neglected consequences of off-site wetland mitigation and mitigation banking. A decision to accept off-site wetland mitigation is a decision to accept a trade of wetland functions and values between locations. Successful off-site wetland mitigation may have little effect on values that accrue primarily on the scale of the wetland. Production of timber, for example, will simply have moved from one location to another, but need not be diminished overall. Similarly, off-site mitigation is unlikely to have much effect on wetland values that accrue over spatial scales larger than the distance between the original and mitigation wetlands. If microbial ecology at the two sites is similar, the global carbon balance will not be altered appreciably if a wetland is lost near Annapolis, and replaced twenty miles away in southern Anne Arundel County, Maryland. Off-site mitigation will, however, affect wetland values that accrue outside of the wetland itself, but on a spatial scale similar to or smaller than the distance between the original and mitigation wetland: Such values are most likely to include benefits to local and regional populations of humans, fish, and wildlife, and benefits that accrue to downstream ecosystems and human communities, including value of wetlands as components of a regional habitat mosaics, energetic and functional linkages between wetlands and adjacent stream and estuarine ecosystems, water quality benefits, protection from flooding and storm . damage, and other primarily regional wetland benefits. Conclusions Wetland mitigation efforts and wetland mitigation-policies have been based, to a large extent on site-by-site comparisons of wetland functions and values. While such a local approach is sufficient when off-site wetland mitigation is rare, it does not provide the necessary perspective to address the complex issues raised by widespread adoption of off-site mitigation, or by the proliferation of mitigation banking programs. Both trends require the development of conceptual frameworks and management tools that explicitly address the spatial structure of wetlands, watersheds, and landscapes from ecological and economic perspectives. Even relatively simple analytic and conceptual tools can help clarify the trade offs wetland managers should consider when evaluating off-site wetland mitigation alternatives. Consideration of how wetland functions and values are likely to vary in different landscape contexts, and consideration of the scales'over .which wetland functions develop, and over which wetland values accrue is crucial for evaluation of wetland policy within a landscape or watershed perspective. Analytic tools developed for ------- January 24, 1996 DRAFT Page 14 this purpose and values atfe and in determinin rules to be us :an help wetland managers recognize which wetland functions ^ most at risk whenjconsidering off-site mitigation alternatives, ling of the size and location of trading territories and trading id by regional; mitigation banks. " ------- January 24,1996 . DRAFT- .; Page 15 References Bernstein, G. and R. L. Zepp, Jr. 1990. Evaluation of selected wetland creation projects authorized through the Corps of Engineers Section 404 ' Program. U.S. Fish and Wildlife Service, Annapolis Field Office, Annapolis, MD. i • Bohlen, C.C. 1992. Wetlands Politics from a Landscape Perspective. Maryland Journal of Contemporary Legal Issues 4(1):1-11. Chesapeake Bay Program. 1988. Chesapeake Bay Wetlands Policy. Chesapeake Bay Program, Annapolis, MD. Conservation Foundation. 1988. Protecting America's Wetlands: An Action Agenda. The Final Report of the National Wetlands Policy Forum. The Conservation Foundation. Washington, DC. Crewz, D. W. and R. R. Lewis III. 1991. An Evaluation of Historical Attempts to Establish Emergent Vegetation in Marine Wetlands in Florida. Florida Sea Grant Technical Paper TP-60. Florida Sea Grant College, Univ. of Florida, Gainesville, PL. . ~r Cronon, William. 1991. Nature's Metropolis: Chicago and the Great West. W. W. Norton and Co. New York. Environmental Protection Agency and Department of the Army. 1989. Memorandum of Agreement between the Environmental Protection Agency and the Department of the Army Concerning the Determination of Mitigation Under the Clean Water Act Section 404 1 (b)(l) Guidelines. Environmental Protection Agency and the Department of the Army. 1990. Memorandum of Agreement Between the Environmental Protection Agency and the Department of the Army Concerning the ., Determination of Mitigation Under the Clean Water Act § 404(b](l) Guidelines. June 6, 1990. i Erwin, K. L. 1991. An Evaluation of Wetland Mitigation within the South Florida Water Management District. Soiith Florida Water Management District, West Palm Beach, FL; Florida Department of Environmental Regulation. 1991. Report on the Effectiveness of Permitted Mitigation. Florida Department of Environmental Regulation. Tallahassee, FL. ------- January 24, 1996 ' . DRAFT " Page 16 Gilpin, M, and I. Hanski (eds.) 1991. Metapopulation Dynamics: Empirical and Theoretical Investigations., Academic Press! London, England Harvey, H. T. and M. N. Josselyn. 1986. Wetlands restoration and, mitigation policies: comment. Environmental Management 10 (5) 567-9. Kentula, M.E., R.P. Brooks, S.E. Gwin, C.C. Holland, A.D. Sherman and JJ. ' Sifneos. 1992. An Approach to Improving Decision Making in Wetland Restoration and Creation. Edited by A.J. Hairston. Island Press, Washington, D.C. ' King, D.M. 1991. Wetland Creation and Restoration: An Integrated i Framework for Evaluating Costs, Expected Results and Compensation Ratios. Report prepared for U.S. Environmental Protection Agency, Office of Policy Planning and Evaluation. King, Dennis M. 1992. "The Economics of Ecological Restoration". Chapter 19 in Natural Resource Damages: Law and Economics, edited by Ward and Duffield: John Wiley & Sons, New- York. King, D.M. and C.C. Bohlen. 1993. Watershed Management and Wetland Mitigation: A Framework for Determining Compensation Ratios. , Report to the U.S. Environmental Protection Agency Office of Policy, • . Planning, and Evaluation. King, D.M., and C.C. Bohlen. 1994a. Estimating the Costs of Restoration. - National Wetlands Newsletter, 16(3):3-8. King, D.M. and C.C. Bohlen. 1994b. The,Cost of Wetland Creation and Restoration. Final Report to The Department of Energy under Contract DE-AC22-92MT2006. ': Kusler, Jon A., and Mary E. Kentula. 1989. Wetland Creation and Restoration: The Status of the Science. EPA 600/3-89/038. U.S. Environmental Protection Agency, Washington D.C. Maryland Code. 1989. 'Nontidal Wetland Protection Act. MD Nat. Res Code § 8-1201 et. Seq. . . ! McDonnell, M.J. and S.T.A. Pickett. 1990. Ecosystem structure and,function along urban-rural landscape gradients: an unexploited opportunity for .ecology. Ecology 71(4):1232-1237 McKibben, Bill. 1989. The End of Nature. , DoubledayJNew York. National Research Council'(NRC) 1992. Restoration of Aquatic Ecosystems: Science Technology and Public Policy. National Academy Press, Washington, D.C. ------- January 24,1996 DRAFT Page 17 O'Neill, R.V., D.L. DeAngelis, J.B. Waide, and T.F.H. Allen. 1986. A.. Hierarchical Concept of Ecosystems. Princeton University Press. Princeton, N.J. . Race, M. S. 1985. Critique of present wetlands mitigation policies in the United States based on an analysis of past restoration projects in San Francisco Bay. Environmental Management 9 (1): 71-82. Schueler, T.R. 1992. Design of Stormwater Wetland Systems: Guidelines for Creating Diverse and Effective Stormwater Wetlands in the Midatlantic Region. Metropolitan Washington Council of Governments. Washington D.C. :' f Shabman, L., P. Scodari and D. King. 1994. Expanding Opportunities for Successful Mitigation: The Private Credit Market Alternative. National Wetland Mitigation Banking Study. IWR Report 94-WMB-3. U.S. Army Corps of Engineers Institute for Water Resources, Alexandria, Va. Want, William L. 1993. Law of Wetlands Regulcition. Release #4. Clark Boardman Callaghan. Deerfield IL. White House Office of Environmental Policy. -1993. Protecting America's Wetlands: a Fair, Flexible and Effective Approach. The White House, Washington D.C. , : Willard, D.L. and J.E. Klarquist. 1992. Ecological basis for watershed approaches to wetlands and mitigation banking or cooperative ventures. School of Public Affairs, Indiana University, Bloomington, Indiana. ------- Figure Tracing Economic Significance of Wetland Sediment Trapping Function F Species Abundance & Diversity "*" Decreased Biological Diversity Loss of Wetland . Function Increase in Sediment Entering Water Body -J — 1 ^- Lower Commercial & Recreational Fish Catches. Higher Fishing Costs ------- Metapopulations In Fluvial Ecosystems Separated Metapopulatlons\ Dagradod River- Reach Isolated Downstream Population Figure 2 ------- Wet/and Functions and Values Accross a Landscape Gradient High Low High B Low Ecological Function Societal Values Urban Suburban Agricultural Other Rural Location of Wetland Figure 3 ------- Geographic Scales of Wetland Benefits and Management Figure 4 1 y | 100Km, c <§ ^ 1Km, 0 "ra <5? 10m, Habitat for Forest Biodiversity ^ Interior Birds / Production of Wild Trout Anadromous Fishes Production / / Timber 'Education Production N . . . / "4-- SSL 10m 1 Km 100Km 10,OOOKm Scale of Derived Benefits ------- |