Environmental and Land Use Department Update Summer 2003 U.S. District Court for Oregon Tells EPA to Rewrite Oregon’s Water Quality Standards and Voids NOAA Fisheries Earlier ESA Approvals By Catherine Drews and Sally Brick The United States District Court for Oregon recently entered an order that potentially confuses the regulatory landscape for development involving Oregon waters. In Northwest Environmental Advocates v. EPA and NMFS (D. Or. No. CV-01-510HA, Slip Op. Mar. 31, 2003), the court ordered the United States Environmental Protection Agency (EPA) to rewrite substantial portions of Oregon’s revised water quality standards. The Order required parties to establish a timeline for EPA compliance by April 30, 2003. The court also invalidated the Endangered Species Act (ESA) approval for Oregon’s revised standards, and ordered the National Marine Fisheries Service (NMFS now known as NOAA Fisheries) to initiate a new round of ESA consultation on the EPA’s actions. Finally, the court ordered the EPA to either issue more stringent standards to satisfy the ESA or determine through a new consultation that the existing standards do not jeopardize listed species. In reaching these conclusions the court addressed a complex range of claims by Northwest Environmental Advocates (NWEA) under the Clean Water Act (CWA), the Administrative Procedure Act (APA) and the ESA. The court’s specific rulings are as follows: Water Quality Temperatures for the Willamette River The court found that the EPA had failed to exercise its mandatory duty to revise the temperature criteria on the Willamette River after having determined that Oregon’s new 68 degree Fahrenheit standard would not protect salmonids. The EPA must now issue a new temperature standard for the Willamette in accordance with the schedule the court has ordered the parties to develop. Water Quality Temperatures for the Columbia River Inside This Issue: In contrast, the court U.S District Court for Oregon found that because Tells EPA to Rewrite Oregon’s Water Quality Standards and Oregon had not submitted Voids NOAA Fisheries Earlier a new or revised temperaESA Approvals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 ture standard for the A Closer Look at the Pollution Control Hearings Columbia River and the PCHB’s Third Runway Ruling EPA had not independentOn Wetland Assessment in Mitigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 ly concluded that a new standard was necessary, Working with Aquifer Storage and the court did not have Recovery Regulations jurisdiction under the in Washington . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 CWA’s citizen suit provision to review the adequacy of Oregon’s existing temperature standard for the Columbia. Consequently, Oregon’s numeric temperature standard for the Columbia will remain at 68 degrees unless Oregon or the EPA affirmatively act to change it. Oregon’s Antidegradation Implementation Policy The purpose behind the CWA’s antidegradation policy is to permit existing uses while preventing further degradation of water bodies, and it requires states to submit and the EPA approve implementation plans for their antidegradation policy. The court held that Oregon’s one-sentence antidegradation implementation plan lacked the necessary detail, and that the EPA’s failure to propose an alternative plan with sufficient details was arbitrary and a violation of the APA. The court ordered the EPA to promulgate an antidegradation implementation plan pursuant to the schedule to be submitted to the court on April 30, 2003. Revised Numeric Water Quality Criteria Water quality standards consist of two components: water quality criteria (numeric or narrative) and designated uses where the criteria apply. The relevant criteria here included Oregon’s 64 degree temperature for salmon spawning, 50 Continued on Page 6 Page 2 Environmental and Land Use Department Update A Closer Look at the Pollution Control Hearings PCHB’s Third Runway Ruling On Wetland Assessment in Mitigation By Eric Laschever The Pollution Control Hearings PCHB’s (PCHB) decision in Airport Communities Coalition v. Ecology and the Port of Seattle provides the PCHB’s latest thinking on a number of wetland assessment and mitigation issues. This article focuses on the PCHB’s rulings regarding the proposed wetland fills. The PCHB’s decision, including the key wetlands ruling, is currently pending before the State Supreme Court. Background Regarding Proposed Wetland Impacts To construct the Third runway, the Port of Seattle proposed to affect a total of 21.34 acres of wetlands by permanently filling 18.37 acres of wetlands and 0.92 acres of prior converted cropland and by temporarily affecting 2.05 acres of wet- land during construction. The final mitigation strategy included in-basin and out-of-basin mitigation. The Port’s planned in-basin mitigation included improvements to over 112 acres of land in the affected basins. Specifically, the Port proposed to: (1) restore 11.95 acres of degraded wetlands, (2) enhance 22.32 acres of degraded wetlands, (3) enhance 54.93 acres of wetland and riparian buffers, and (4) preserve 23.55. Siting new wetland creation in-basin was Continued on Page 7 Summary of Wetland Mitigation Credit for Seattle-Tacoma International Airport Master Plan Update MITIGATION ON SITE Wetland Restoration - Credit ratio 1:1 Remove Fill Adjacent to Lora Lake Remove Fill at Des Moines Way Nursery Site Remove Fill at Wetland A17 Vacca Farm (prior converted cropland and other upland) Temporary Impact Mitigation Area (ac) Mitigation Credit Subtotal 1.00 2.00 0.30 6.60 2.05 11.95 1.00 2.00 0.30 6.60 2.05 11.95 Subtotal 0.86 5.70 10.25 4.50 1.01 22.32 0.43 2.85 5.12 2.25 0.51 11.16 Subtotal 40.86 4.58 1.81 1.57 3.38 2.73 54.93 8.17 0.92 0.36 0.31 0.68 0.55 10.99 Subtotal Total On-Site 2.35 21.20 23.55 112.75 0.24 2.10 2.34 36.44 Total Off-Site TOTAL 29.98 19.50 15.90 65.38 178.13 29.98 9.75 3.18 42.91 79.35 Wetland Enhancement - Credit ratio 1:2 Des Moines Way Nursery Vacca Farm (Farmed Wetland, Other Wetlands, Lora Lake) Wetlands in Miller Creek Wetland and Riparian Buffer Tyee Valley Golf Course Wetland in Des Moines Creek Buffer Buffer Enhancement - Credit ratio 1:5 Miller Creek Buffer, South of Vacca Farm Vacca Farm Lora Lake Tyee Valley Golf Course Mitigation Area Buffer West Branch Des Moines Creek Buffer Des Moines Way Nursery Preservation - Credit Ratio 1:10 Borrow Area 3 Wetland Borrow Area 3 Buffer OFF-SITE Wetland Creation - Credit ratio 1:1 Forest (17.20 acres), Shrub (6.0 acres), Emergent (6.20 acres), and Open Water (0.60 acres) Wetland Enhancement - Credit ratio 1:2 Buffer Enhancement - Credit ratio 1:5 Page 3 Working with Aquifer Storage and Recovery Regulations in Washington By Matthew D. Wells Introduction and Summary Aquifer storage and recovery (ASR) is a simple concept. Water is added to an underground formation or “aquifer” through injection or infiltration, and is stored there until it is needed. In many regards ASR is identical to surface storage projects. The critical difference is that ASR does not require dams or reservoirs. ASR therefore offers the most important benefits of storage — the ability to accumulate water during times of plenty for use during times of shortage — while avoiding the most significant drawbacks of surface impoundments — adverse environmental impacts of dams and reservoirs. ASR then offers the potential of providing much-needed storage capacity in an environmentally responsible manner without further compounding the competition between fish, farmers and growing communities for surface water resources. In 2000, the same year the Washington legislature created a Water Storage Task Force, the legislature identified ASR as an important tool for sound water management and expressly authorized use of aquifers as underground “reservoirs.” The legislature also directed the state Department of Ecology (Ecology) to develop standards for permitting ASR projects and mitigating adverse effects. In 2002, the legislature amended the ASR statute to further encourage ASR by streamlining the permitting process. Ecology published its final ASR regulations in early 2003. While several applications have been filed for ASR projects around the state, no full scale projects have been permitted. Ecology’s regulations resolve some key ASR issues — such as the priority date for water withdrawn from an ASR project — but create new issues likely to make ASR permitting challenging. In addition, the interaction between ASR permitting and other regulatory programs — specifically Washington’s ground water quality regulations and antidegradation policy — poses challenges for full scale ASR permitting. 2000 Legislation Expressly Authorizes ASR Prior to the legislation enacted in 2000, permitting an ASR project in Washington was possible, under existing statutes such as RCW 90.44.130, but would have likely been difficult, requiring significant interpretation and creativity from both applicants and Ecology. With the enactment of the 2000 ASR legislation (ESSHB 2867, 2000 Wash. Laws Ch. 98), ASR is now both authorized and identified as an important tool for water management. As Section 1 of the 2000 legislation states: permitting will be done “subject to the provisions of” RCW 90.03.250 through .320, which include some relevant substantive standards such as the no impairment of existing rights and no detriment to public interest tests. The statute also contains the list of issues set out in footnote 1. But the statute does not set the applicable standard for the enumerated issues — in other words, it does not indicate whether the standard is least practicable impact or zero impact, and whether mitigation is required where practicable or in all circumstances. Instead, the legislation passes to Ecology the responsibility to establish these substantive standards. 2002 Amendments Streamline ASR Permitting “The legislature recognizes the importance of sound water management. In an effort to promote new and innovative methods of water storage, the legislature authorizes the Department of Ecology to issue reservoir permits that enable an entity to artificially store and recover water in any underground geological formation, which qualifies as a reservoir under RCW 90.03.370” (codified at RCW 90.44.460). In addition to expressly authorizing ASR, the 2000 legislation did several key things. First, it characterized ASR as a type of reservoir project, thereby establishing the permitting path as the same as for surface water storage projects. Second, it enumerated eight issues against which underground geological formations proposed for ASR projects must be assessed to identify adverse 1 impacts and mitigation. Third, it placed the onus of analyzing proposed ASR projects and aquifers on the applicants, with review by Ecology. Fourth, it directed Ecology to issue “standards for review and standards for mitigation of adverse impacts” associated with ASR. Interestingly absent from the statute are substantive standards specific to ASR projects. The statute indicates that In 2002, amendments were enacted that help streamline ASR permitting. EHB 2993, 2002 Wash. Laws, Ch. 329, Section 10. The two key features of the amendments relate to priority processing and the need for secondary permits. While Ecology has made some recent progress in reducing the backlog of water right applications, the backlog still poses a significant administrative hurdle to many projects. The 2002 amendments gave ASR projects a helping hand by identifying several types of ASR projects for which Ecology must provide expedited or priority processing. These include projects that do not require a new water right for the water to be stored - i.e., projects for which the applicant already has a water right - and applications involving changes to existing storage facilities. RCW 90.03.370.370(1)(b)(i) through (iv). The effect of this amendment is that, in Washington’s new “two-line” water rights permitting system, applications for these types of ASR projects get placed in the shorter line for water rights changes, rather than the much longer line for new water rights. The second key amendment in 2002 relates to “secondary permits” and when they are required. The reservoir permitting statute generally calls for issuance of two separate permits for each reservoir. Continued on Page 4 Page 4 Environmental and Land Use Department Update Working with Aquifer Storage and Recovery Regulations in Washington (cont’d from page 3) The first for the reservoir itself (reservoir permit), and the second for withdrawals from the reservoir and subsequent beneficial use (secondary permit). This two part permit system reflects the irrigation company model common when the water code was adopted, wherein a private developer or association would build a storage system and individuals would then contract for the use of the stored water. Under this model, the reservoir permit would typically be senior to the secondary permit - sometimes by years or even decades. “...the Rule establishes a rigorous process for approval of ASR projects that may make it impractical for any but the largest and most sophisticated applicants to pursue ASR.” The 2002 amendments did away with the requirement for a secondary permit for projects where the applicant already has water rights for the water to be stored and where those rights authorize the proposed end use for the stored water. RCW 90.03.370(1)(c). Effectively, the amendment recognizes that someone with an existing right to divert and use water should not be required to get a new right to use that same water after storage. In practical terms, this amendment likely makes it much easier to permit an ASR project in areas where groundwater is closed to further appropriation and recognizes that key aspects of the underlying water right — such as its purpose of use and priority date — run with the water and are not lost after storage. Implicit in these two key amendments is the concept that storage is a beneficial use inherent in all water rights. Both amendments recognize that ASR proponents can and often will come to the table with existing rights to divert and use water. However, rather than requiring such applicants to first obtain a change of purpose of use to allow storage, the amendments instead provide expedited processing of reservoir permits and do not require secondary permits. 2003 ASR Regulations Good, Bad and Indifferent Ecology developed the ASR Rule with input from a Technical Advisory Group (TAG), and provided drafts to interested parties for review. Ecology should be commended for its collaborative approach to developing the Rule. Evaluating ASR projects will undoubtedly involve complex technical issues, and the early input from the TAG reflected in the final Rule should improve the permitting process. As discussed below, the Rule establishes a rigorous process for approval of ASR projects that may make it impractical for any but the largest and most sophisticated applicants to pursue ASR. On substantive issues, the Rule provides clarity on several potentially unresolved issues. However, it also fails to resolve other potential impediments to ASR, and creates some new concerns along the way. The Permitting Process in a Nutshell The basic procedural aspects of ASR permitting under the Rule are not surprising. Applicants submit detailed applications to Ecology regional offices. If applications are complete, Ecology seeks input from other state agencies and tribes on projects where injection or withdrawal may impact surface waters. Ecology seeks public comment. Ecology considers the comments of all reviewers, including the public. Ecology issues permits with appropriate conditions. After completion of the project, Ecology issues “proper documentation,” i.e., certificates. On closer review, however, the Rule contemplates intensive and ongoing project review and presumably adjustment by Ecology, even after permitting is complete. • First, the Rule indicates that Ecology may require a “detailed feasibility study” if an application does not adequately describe the “general set tings and conditions” for the proposed ASR project. WAC 173-157-100(1). • Second, the Rule requires all projects to include a “pilot phase” that will be used to validate models, monitor performance, and adjust monitoring, operation and mitigation plans. WAC 173-157-100(2). While not spelled out in the Rule, the pilot phase Ecology contemplates would presumably typically occur after initial permitting has occurred. • Third, the Rule requires at least annual monitoring, perhaps for the life of the project, so Ecology can verify assumptions during both the pilot and operational phases. WAC 173-157-170. The major emphasis of the ASR regulations is on the contents of applications. Required contents of an application include: • conceptual model of the hydrogeologic system (prepared by licensed hydrogeologist) • operation plan including pilot and operational phases (prepared by licensed engineer or geologist) • description of legal framework • environmental assessment • mitigation plan (prepared or approved by “appropriately experienced” licensed engineer) • monitoring plan WAC 173-157-110. This focus on applications is apparently in response to the legislation’s directive that ASR permitting be based on Ecology’s review of “applicantinitiated studies.” RCW 90.03.370(2)(b). The result, however, is a rule that is over-prescriptive as to the contents of applications and potentially underprescriptive as to the standards Ecology should apply in evaluating applications. Key Benefits of 2003 Regulations Several features of the final ASR Rule resolve outstanding issues and clarify permitting expectations. First among these is the Rule’s clear determination that the priority date for stored water is the priority date of the water that is placed in storage, not the priority date of the application. WAC 173-157-200(7). While this issue may seem somewhat academic given the no impairment test, it could have significant effect in areas closed to further withdrawals or where groundwater withdrawals are otherwise restricted. Because the water being withdrawn is water the applicant stored — as opposed to groundwater generally — it is entirely reasonable to retain the original priority date. The second clarification relates to treatment of water stored in an ASR project. Early drafts of the Rule suggested that treatment — including treatment to drinking water quality standards — Page 5 would be required for all ASR projects. The final Rule simply requires a description of any treatment that will be provided and of the project’s compliance with the state’s ground water quality standards (WAC 173-200), including the antidegradation policy. WAC 173-157-130(6). Shortcomings of 2003 Regulations and “To be determined” While resolving some key outstanding issues, the Rule has several shortcomings that could, depending on implementation, make permitting more challenging. The Rule may, therefore, require amendment after Ecology and project proponents experience working with ASR and the new ASR Rule. Briefly stated, some of the issues that may arise under the final Rule are: • No recognition of environmental benefit or balancing. The rule ignores the possibility that ASR projects can provide significant environmental benefit by reducing demand on surface water at critical times of year and replenishing depleted aquifers. Nor does the Rule appear to contemplate balancing this environmental benefit against potential impacts associated with ASR projects. Instead, the Rule presumes that all environmental changes are adverse and require mitigation, regardless of avoided adverse impacts associated with alternate actions. • Scattered substantive standards. The Rule does not include a consolidated section containing the substantive standards Ecology will use to evaluate applications for ASR projects. Instead, the substantive standards are scattered throughout the Rule, imported from other statutory and regulatory schemes, and implied in the Rule’s description of the required contents of an application. As a result, applicants may have a hard time knowing what target they have to hit for project approval, and Ecology may likewise have a hard time determining whether a project should be permitted and establishing appropriate conditions. • Mandatory pilot phase. The final Rule appears to require all projects to include a pilot phase, after which a project could presumably be further conditioned or even denied. Given the substantial investment that can be required to conduct ASR — even on a pilot phase basis — this requirement may effectively preclude smaller projects from getting off the drawing board. • Confusing exercise of underlying water right with implementing ASR. Given the scarcity of new water rights, most ASR proponents will have to bring to their projects valid water rights that they propose to store. In such situations, the Rule appears to indicate that, through issuance of a reservoir permit, Ecology might seek to condition an applicant’s exercise of their otherwise valid water right. Where a project proponent has a valid water right, their exercise of that right should not be subject to new regulation simply because they choose to store the water for later use. • No clear resolution of tension between ASR and ground water quality standards. ASR is often associated with municipal systems in which stored water is treated to drinking water standards. Chlorination is the most widespread means of treatment. In the chlorination process, disinfection byproducts are formed in concentrations that meet tandards for human consumption, but can exceed Washington’s ground water quality criteria. WAC Ch. 173-200. Ecology can grant temporary variances in cases of overriding public interest, but these are currently limited to a maximum of five years, after which they must be renewed. “While resolving some key outstanding issues, the Rule has several shortcomings that could, depending on implementation, make permitting more challenging.” WAC 173-200-050(3)(b)(vi). The ASR Rule begins to address this issue by stating that Ecology “shall give strong consideration to the overriding public interest in its evaluation of compliance with ground water quality protection standards” which will help with obtaining temporary variances. WAC 173157-200(2). However, relying on a variance that must be renewed every five years creates significant uncertainty for infrastructure investment in ASR faciliies, bonding surety, and water supply planning, all of which typically operate with horizons of 20 years or more. Fully resolving the potential inconsistencies between the groundwater quality regulations and the practicalities of ASR will be challenging, and may require amendment of the groundwater regulations. Summary and Conclusions Over the last three years, Washington has come a long way toward developing the statutory and regulatory framework for ASR. However, there continue to be a number of issues that may present challenges for actual permitting and operation of ASR projects. How applicants and Ecology handle these issues in the next few years will make the difference between having a “new and innovative tool” available for managing Washington’s scarce water resources and having an interesting but unused statute and regulation on the books. 1 The issues are: (i) Aquifer vulnerability and hydraulic continuity; (ii) Potential impairment of existing water rights; (iii) Geotechnical impacts and aquifer boundaries and characteristics; (iv) Chemical compatibility of surface waters and ground waters; (v) Recharge and recovery treatment requirements; (vi) System operation; (vii) Water rights and ownership of water stored for recovery; and (viii) Environmental impacts. RCW 90.03.370(2)(a)(i) through (viii). Some of these factors are rather unclear. Others obviously refer to aspects of an ASR project other than the geological formation. Nevertheless, the factors and their interpretation will likely come into play in appeals of ASR permit decisions. Environmental and Land Use Department Seattle mattheww@prestongates.com Page 6 Environmental and Land Use Department Update U.S. District Court for Oregon Tells EPA to Rewrite Oregon’s Water Quality Standards and Voids NOAA Fisheries Earlier ESA Approvals (cont’d from page 1) degree temperature for bull trout spawning, and a dissolved oxygen criteria of 6.0 milligrams per liter of water. The court found that the EPA’s approval of the temperature standards was arbitrary because Oregon’s standards failed to designate the specific areas and times where and when the criteria would apply. The court ordered the EPA to rescind its approval of the criteria and to issue revised criteria that complied with the CWA, complete with designated uses for those criteria. NWEA also challenged the EPA’s approval of Oregon’s inter-gravel dissolved oxygen standard. NWEA contended that the EPA approved Oregon’s 6.0 milligram per liter standard based on the state’s unenforceable promise to apply a higher standard of 8.0 milligrams per liter when endangered fish species were present. Also, Oregon again failed the “time and place” test for its dissolved oxygen standard. The court ordered the EPA to rescind its approval of this standard, and to issue a revised standard that would meet the dissolved oxygen needs of salmonids. Narrative Criteria The court found the EPA’s approval of Oregon’s narrative water quality criteria rational and upheld the agency’s approval of Oregon’s surface water temperature management plan, which allows sitespecific plans to override numeric water temperature criteria. The discharger must take all feasible steps to meet the criteria, and the Director of Oregon’s DEQ must determine that the exemption will not adversely impact designated uses. The court found this plan consistent with EPA regulations. The court also upheld Oregon’s 1 degree cumulative increase and its 0.25 degree increase over numeric temperature criteria, finding both programs had mechanisms to protect beneficial uses. Alternate Mixing Zones The court struck down the EPA’s approval of Oregon’s alternate mixing zone provision purely on a technicality. This provision allows for a larger area of the waterway to exceed numeric water quality criteria than under Oregon’s standard mixing zone rule. The court found that Oregon had never properly submitted its program to the EPA for approval; therefore, the standard is not an applicable water quality standard under the CWA. As a result, Oregon’s existing mixing zone rule applies until the state properly submits its plan. NMFS’s Biological Opinion In another facet of the case that adds an interesting twist on some of the CWA specific findings above, the court also struck down the Biological Opinion (BO) issued by NMFS on the EPA’s approvals of the new or revised Oregon standards. The BO had given the EPA the ESA “seal of approval” for Oregon’s revised water quality standards - it concluded that Oregon’s standards would not jeopardize ESA listed species. However, the court held that NMFS acted arbitrarily in drawing this conclusion because NMFS relied on conservation commitments by Oregon that were speculative and unenforceable, and because NMFS’s own scientists had expressed contrary views about the impacts of these standards on listed salmonids. The court ordered NMFS to withdraw its BO and reinitiate consultation with the EPA under the ESA. ESA Duty to Conserve Threatened Species The court denied plaintiffs’ claim that the EPA must create a conservation plan for ESA-listed bull trout and salmonid species. The court held that the ESA does not require species-specific programs, and that the EPA’s water-related conservation programs were sufficient. ESA Duty Not to Jeopardize Threatened Species However, the court did find that the EPA had breached the ESA because it failed to ensure that its actions did not jeopardize threatened species, notwithstanding NMFS’s approval of its action. In approving Oregon’s water quality standards, the court found that the EPA had improperly relied on NMFS’s BO and ignored evidence that the criteria were harmful. The EPA was ordered to either issue more stringent standards to satisfy the ESA or determine through a new consultation supported by the available evidence that the existing standards do not jeopardize listed species. Conclusion This is a highly complex decision with several interweaving components. The full implications of this decision are not clear at this time and will vary depending on the agencies’ response to it and on project-specific circumstances. For further information about the water quality aspects of the Oregon decision and its implications, contact Adam Gravley at adamg@prestongates.com, Eric Laschever at ericl@prestongates.com or Catherine Drews at catherined@prestongates.com. For further information about the endangered species aspects of the decision and its implications, contact Will Stelle at wills@prestongates.com, Matt Wells at mattheww@prestongates.com, or Sally Brick at sallyb@prestongates.com. Environmental and Land Use Department Seattle catherined@prestongates.com sallyb@prestongates.com Page 7 A Closer Look at the Pollution Control Hearings PCHB (cont’d from page 2) difficult because of aircraft safety concerns about new wildlife attractants; however, Ecology’s goal was to have the Port replace all impacted wetland functions in-basin, with the exception of the wildlife attractant functions. In addition to these in-basin mitigation measures, the Port proposed to construct wetland mitigation off-site on a 65-acre parcel in the City of Auburn. This mitigation site would provide forested, shrub, emergent, and open water wetland habitats and functions to a site where these functions are currently absent or degraded. The Auburn site is in the same Water Resource Inventory Area as the Airport (WRIA 9). Table 1 (on page 2) summarizes the wetland mitigation for the Project. The PCHB also noted that the Port’s proposed wetland mitigation plan would remove pollutant sources (e.g. lawns, golf courses, farmland, streets, driveways, septic systems, livestock grazing and home sites) of pollutants to wetlands, and to the Miller, Des Moines, and Walker Creeks by removing land uses, which contribute excess nitrogen and other pollutants. PCHB’s ruling Appellants contested Ecology’s decision regarding the proposed wetland fill on several grounds, including the method used to assess wetland functions, the approach to mitigation credit for restoration and the credits provided for buffer enhancement, preserving existing wetlands and the surface of Lora Lake. The PCHB upheld Ecology on a number of important issues. With regard to the assessment method, the PCHB rejected Appellants’ arguments that the Port was required to use a peerreviewed published methodology for its functional assessment. The PCHB also rejected Appellants’ argument that the assessment relied too heavily on best professional judgment. The PCHB also affirmed the Port’s use of an assessment methodology other than Ecology’s Washington Functional Assessment Method (WFAM). The PCHB reached this decision in part because approximately 77% of the wetlands were sloped wetlands to which the WFAM did not apply. Finally, the PCHB upheld the 2:1 restoration credit for the Vacca Farm wetlands. The PCHB rejected the Appellants’ argument that restoration credit could not be given because the restoration site was already a jurisdictional wetland under the Department of Ecology’s guidelines. The PCHB reasoned that “[t]here is not a hard line distinguishing restoration from enhancement. Depending on the circumstances, a former wetland may be so degraded that efforts to correct past practices may qualify as restoration.” The PCHB noted that this distinction is one for best professional judgment and that the Appellants had not shown the judgment used was biologically flawed. The PCHB, however, ruled against Ecology on a number of grounds. First, the PCHB held that no credit should be given for enhancing wetland buffers. The PCHB reasoned that no net loss is measured in both acreage and function, so in order to achieve no net loss in acreage, projects must, at minimum, restore or create an equal area of wetland. Enhancement activities and upland preservation should not be used in exchange for the baseline acres and are not a substitute for replacement of actual wetland losses. Second, the PCHB ruled that no credit should be given for preserving existing wetlands. The PCHB concluded that the area lies within the jurisdiction of both the Growth Management Act and the Forest Practices Act and that both of these laws have mechanisms to protect valuable wetlands. Finally, the PCHB ruled that the surface area of Lora Lake should not receive credit because the Port was not enhancing this area. Based on these determinations, the PCHB subtracted the 3.06 acres for the surface of Lora Lake, the 10.99 acres of credit for enhancing 54.93 acres of buffer, and the 23.55 acres of preserved wetlands and concluded that the remaining 31.22 acres of mitigation did not meet the 2:1 ratio needed to mitigate the 21.34 acres of wetland impacts. The PCHB also concluded that there were opportunities for inbasin mitigation. In identifying acreage to meet the 2:1 mitigation ratio, the PCHB encouraged the Port to evaluate the potential opportunities in the headwaters to Walker Creek. Taken together, the PCHB’s ruling recognizes that Ecology and applicants must be able to exercise professional judgment in developing appropriate mitigation, and that flexibility is necessary under appropriate circumstances for using off-site mitigation. The ruling, however, limits Ecology’s ability to give credit to actions that preserve existing wetlands or enhance ecosystem functionality by enhancing buffers, rather than enhancing wetlands. Environmental and Land Use Department Seattle ericl@prestongates.com 925 Fourth Avenue, Suite 2900 Seattle, WA 98104-1158 925 Fourth Avenue Suite 2900 Seattle, WA 98104-1158 Tel: (206) 623-7580 Fax: (206) 623-7022 www.prestongates.com HOW TO REACH US If you would like more information about these or other Environmental and Land Use issues, or have a suggestion for a future article, please contact the authors, Update editor James Goeke at jgoeke@prestongates.com, or Environmental and Land Use Department chair Konrad Liegel at konradl@prestongates.com or (206) 623-7580. If you would like to add someone to our mailing list or update your mailing information, please contact our Mailings Coordinator, Brenda McDaniels, at bmcdaniels@prestongates.com or (206) 623-7580. Note: Past issues of the Update may be found online at www.prestongates.com. DISCLAIMER This newsletter provides general information about Environmental and Land Use laws. It is not a legal opinion or legal advice. Readers should confer with appropriate legal counsel on the application of the law to their own situations. Entire contents copyright © 2003 by Preston Gates & Ellis LLP. Reproduction of this newsletter in whole or in part without written permission is prohibited. Printed on recycled paper.