Report for Executive Committee February 2, 2005

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Agenda Item No.: E.4.h.
Wetlands Conservation Policy
Recommendation:
That the February 2, 2005, Planning and
Development report 2005PDP016 be
received for information.
Report Summary
This report responds to the second part of a
motion passed at the July 27, 2004,
Executive Committee concerning Alberta
Environment’s practices regarding
compensation that the Province receives
from wetlands drained in Edmonton.
Previous Council/Committee Action
At the July 27, 2004 Executive Committee
meeting, the following motion was passed:
1. That the July 27, 2004, Planning and
Development report 2004 PDP103 be
received for information.
2. That Administration prepare a report on
the compensation that the Province
receives from wetlands sold in
Edmonton to ensure that these funds
directly benefit the City of Edmonton.
3. That the Mayor send a letter to the Hon.
Lorne Taylor, Minster of Environment,
requesting information regarding
compensation that the Province receives
from wetlands sold in Edmonton.
Report
This report addresses the second part of the
July 27, 2004, Executive Committee report
referenced above regarding the
compensation that the Province receives
from wetlands drained in Edmonton and
what Administration is doing to ensure that
these funds directly benefit the City of
Edmonton. Mayor B. Smith sent a letter to
Routing:
Delegation:
Written By:
February 2, 2005
File: 2005PDP016
Hon. Lorne Taylor, Minister of Environment
in August 2004 that addresses the third part
of the Executive Committee motion.
Provincial Wetland Policy: Alberta
Environment is presently preparing a
Provincial Wetland Policy. It is expected
that a draft will be issued to the public in
late 2005 or early 2006. The intent of the
proposed policy is to have “no net loss” of
wetlands in Alberta. It is important to note
that although the proposed Provincial
Wetland Policy has not been approved,
aspects of the policy have been applied in
Edmonton since 1997.
Alberta Environment has been using three
criteria in order of priority to assess the
merits of applications for wetland drainage:
i) avoid wetland impacts if possible, ii) if
avoidance is not acceptable, then mitigate
the wetland impacts, and iii) if avoidance
and mitigation are not options, provide
financial compensation for the wetland
restoration elsewhere in the watershed to
achieve “no net loss” of wetlands in
accordance with a compensation formula.
The compensation formula requires
applicants to provide money to a third party
to restore wetlands at another location in the
watershed in a provincially sanctioned
mitigation “bank.” If the location is adjacent
to the drained wetland, the compensation
requirement might be for a wetland area
twice the area of the drained wetland. If the
compensation is applied to a wetland in the
same watershed 100 km away, the
requirement might be 10 to 14 times the area
of the drained wetland. The applicant selects
the compensation solution based on the
Executive Committee
L. Benowski/R. Caldwell/G. Pearsell
G. Pearsell
Planning and Development Department
(Page 1 of 3)
E
4
h
Wetlands Conservation Policy
formula provided by Ducks Unlimited on
behalf of Alberta Environment.
Alberta Environment has proposed that
wetland mitigation “banks” be established in
the province to accept compensation money
from wetland drainage approvals as a way of
streamlining the process. Alberta
Environment is allowing Ducks Unlimited’s
past wetland conservation projects to serve
as provincially sanctioned mitigation banks.
It is their hope that others will step forward
to establish other banks.
Edmonton’s Experience: Alberta
Environment has provided Administration
with information regarding wetland
approvals within Edmonton for the period
between 1997 and 2003. This wetland
drainage information can be considered in
two categories: i) approvals with
compensation within the City of Edmonton,
and ii) approvals with compensation outside
of Edmonton.
In general, applications for wetland drainage
are approved by Alberta Environment
because they feel that negative impacts are
difficult to avoid or mitigate in Edmonton,
and compensation outside of Edmonton is
considered to be a better conservation
strategy from a provincial perspective.
Administration does not share this view.
There have been 15 approvals issued with
compensation within Edmonton between
1997 and 2003. Two of approvals were
granted to a third party using City
stormwater management lakes for
compensation without the knowledge of
Administration.
There have been seven approvals issued
with compensation provided outside of
Edmonton. All compensation was provided
to Ducks Unlimited Canada. Two of the
compensation cases involved wetland
drainage in the same neighbourhood as the
City’s Schonsee wetland conservation
project for Environmentally Sensitive Area
NE8084.
Administration has made proposals to
Alberta Environment to have some
Environmentally Sensitive Areas or
constructed wetlands designated as
mitigation banks whereby compensation
money would be kept within the city instead
of flowing out of the city to rural
municipalities. To date, Alberta
Environment has not been receptive to these
proposals.
Administration’s Approach to Change
Current Practice: The Senior Management
Team, Natural Areas Policy Implementation
Committee, and the Office of the
Conservation Coordinator have been
working on this issue in 2004 and are
working with a coordinated approach to
convince Alberta Environment to change
their practices as follows:
 Amend the compensation formula so
that it is not advantageous for a drainage
applicant to compensate for wetland
losses outside of Edmonton.
 Disallow the use of City of Edmonton
stormwater management facilities by
third parties as a viable compensation
option without Administration’s consent.
 Designate several existing wetlands
within Edmonton as mitigation banks to
accept compensation money for wetland
(Page 2 of 3)
Wetlands Conservation Policy

losses in Edmonton. Designation of a
mitigation bank would help to pay for
conservation lands acquisition and
restoration. It would provide cost
benefits to drainage functions such as
water quality enhancement and flood
control.
Make Alberta Environment aware that
the drainage of wetlands in Edmonton
with compensation outside of Edmonton
is adding extra costs to the City to
provide additional water quality
enhancement and flood control that the
wetlands provided. Keeping the
compensation money in Edmonton to
conserve other wetlands would help to
offset this cost.
is expected that the Conservation
Coordinator will sit on Protect Team.
Others Approving this Report


Current Status of the Provincial Wetland
Policy: Recently, Alberta Environment has
rethought their approach outlined in its
unreleased Provincial Wetland Policy.
Alberta Environment has decided to consult
affected stakeholders throughout the
province and is using the new Alberta Water
Council as a forum for these discussions.
The City Manager sits on the Water Council
representing the interests of large urban
municipalities.
A Working Committee of the Alberta Water
Council has been formed to develop a
consensus based process to find agreement
on a new provincial wetland policy. The
Conservation Coordinator has been
appointed to sit on the Working Committee.
The first meeting of the Working Committee
was January 13, 2005.
A Project Team will be assembled later in
2005 to examine the technical aspects of the
proposed policy and recommend changes. It
(Page 3 of 3)
W. D. Burn, General Manager, Asset
Management and Public Works
Department
D. Kloster, General Manager,
Community Services Department
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