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HomeMy WebLinkAboutMINUTES - 03161993 - 1.72 ✓ 1 . 7-2- STATE OF CALIFORNIA—THE RESOURCES AGENCY PETE WILSON, Governor DEPARTMENT OF FISH AND GAME 1416 NINTH STREET E m P.O. BOX 944209 ' SACRAMENTO, CA 94244-2090 (916) 653-4875 March 3, 1993 RECEIVE® MAR - 81993 Mr. Tom Torlakson, Chief Contra Costa Board of Supervisors CLERK BOARD OF SUPERVISORS . 651 Pine Street, Room 106 CONTRA COSTA CO. Martinez, California 94553 Dear Mr. Torlakson: Your letter concerning wetlands regulatory activities has been referred to me for reply. Your letter indicates that Contra Costa County is considering implementation of a wetland regulatory mechanism at the local level and requests information regarding the feasibility of a coordinated Contra Costa County, State, and Federal regulatory methodology. We believe that such an arrangement is both feasible and desirable, that consistently applied mitigation measures for unavoidable wetland impacts would clearly be of benefit to fish and wildlife resources, and that such an approach to mitigation would also be of benefit to the .development community in terms of enabling them to understand from the outset just what sort of mitigation obligation and mitigation costs would result from a given prospective project. The Department of Fish and Game has repeatedly indicated its strong support for the use of the U.S. Fish and Wildlife Service wetland definition as contained in the document entitled "Classification of Wetlands and Deepwater Habitats of the United States" (Cowardin et al. 1979) . As you likely know, we supported the incorporation of that wetland definition into the Contra Costa County general plan in 1991. Now that Contra Costa County and the Department identify wetlands in the same way, it .becomes possible to .discuss, and hopefully achieve, adequate wetland impact compensation on an individual project basis. The Department's wetland resources policy, as contained in the Fish and Game Code, may be summarized as follows: 1. Consistent with requirements of State and Federal law, as well as common sense, impacts to wetlands should be avoided where feasible. Avoidance of impact is, after all, the finest form of mitigation. 2 . To the extent that wetland impacts may not be feasibly avoided, they should be minimized. Cc Mr. Tom Torlakson March 3, 1993 Page Two 3 . Unavoidable impacts to wetlands should be offset such that no net loss of either wetland acreage or wetland habitat values would result from project implementation. Our recommended means of offsetting unavoidable project impacts to wetlands requires the maintenance of both preproject wetland acreage and preproject habitat values. The attached Department report discusses this mitigation methodology in some detail. However, the main thrust of the methodology is the creation (through conversion of nonsensitive uplands) of no less wetland acreage of no less habitat value than that acreage and those values unavoidably lost to project implementation. We also prefer in-kind compensation (i.e. , creation of the same type of wetland as that unavoidably impacted) , and we prefer on-site rather than off-site mitigation in order to provide the greatest utility to that group of fish and wildlife species impacted. You have also requested information regarding the potential establishment of a wetland mitigation bank in Contra Costa County. Please find attached the "Department of Fish and Game Guidelines for the Establishment and Use of Wetland Mitigation Banks" . This document discusses, in some detail, the Department's recommendations regarding wetland mitigation banks. However, as will be seen upon reading the Guidelines, at the heart of the methodology discussed is the need to maintain both preimpact wetland acreage and preimpact wetland habitat values consistent with our wetland resources policy. For your information, Placer County is in the process of developing wetland mitigation bank ordinances which are highly compatible with the Department's guidelines, and we suggest that Contra Costa County contact Placer County regarding these ordinances. The Department's Environmental Services Division is in the process of completing two reports which Contra Costa County may find useful, and we will forward copies to you upon completion. The first report translates the sometimes somewhat cumbersome wetland classification language contained in the U.S. Fish and Wildlife Service's wetland classification system into a more easily and widely understood wetland type terminology, while simultaneously retaining complete agreement with the wetland definition contained in the "Cowardin" document. The second report discusses long- and short-term costs associated with wetland mitigation banks, the funding of maintenance of mitigation areas in perpetuity, and other economic considerations necessary to assure that all fish and wildlife habitat loss mitigation costs are borne by project proponents. Mr. Tom Torlakson March 3, 1993 Page Three In .conclusion, thank you for the opportunity to provide. this input to Contra Costa County. Should you, other supervisors, or Contra Costa County planning staff have questions regarding this response, or any of the attached documents, please contact Mr. Bob Radovich, Environmental Specialist, Department of Fish and Game, 1416 Ninth Street, Sacramento, California 95814, telephone (916) 753-9757. Sincerely, J L. Turnr, Chief n ronment 1 Services Division Attachments -ON FIL-E W"rH GLF9A cc: Mr. Bob Radovich Department of Fish and Game Sacramento, California Mr. Boyd Gibbons Department of Fish and Game Sacramento, California January 9, 1987 WETLANDS RESOURCES POLICY The Fish and Game Commission finds that: I. California's remaining wetlands provide significant and essential habitat for a wide variety of important resident and migratory fish and wildlife species. II. The quantity and quality of the wetlands habitat remaining in California have been significantly reduced; thus, maintenance and restoration are essential to meet the needs of the public for fish and wildlife resources and related beneficial uses. In addition, the protection, preservation, restoration, enhancement and expansion of wetlands as migratory bird breeding and wintering habitat are ,justly . recognized as being critical. to the long-term.*survival of such species. Wetland habitat is also recognized as providing habitat for over half of the listed endangered and threatened species in California. III. - Projects which impact wetlands are damaging to fish and. wildlife resources if they result in a net loss of wetland acreage or wetland habitat value. IV. Through the passage of Senate Concurrent Resolution 28 (January 1, 1983) , the Legislature,. in recognition of the importance of wetlands, indicated its "intent to .preserve, protect, restore and enhance California's wetlands and the multiple resources which depend upon them for the benefit of the people of the state% The Legislature further declared its desire that wetland habitat acreage be increased by 50 percent by the year 2000. Therefore, it is the policy of the Fish and Game Commission to seek to provide for the protection, preservation, restoration, enhancement and expansion of wetland habitat in. California. Further, it is the policy of the Fish and Game Commission to strongly discourage development in or conversion of wetlands. It opposes, consistent with its legal authority, any development or conversion which would result in a reduction of wetland acreage or wetland habitat values. To that end, the Commission opposes wetland development proposals unless, . at a minimum, project mitigation assures there will be "no net loss" of either wetland habitat values or acreage. The Commission strongly prefers mitigation which would achieve expansion of wetland acreage and enhancement of wetland habitat values. Furthermore, to make recommendations to the Commission on implementation of this policy, a tempore" Worki n^ rnf;n sh;0 l be established. It. shall make recommendations concerning ti:e following: A. Long-range planning, prioritization and implementation of a comprehensive program to protect, enhance and expand wetlands; _55— B. Enhancing public* awareness of and mobilizing public support for the need to protect wetlands; C. Cooperative mechanisms and coordination with local government and private. sector interests to achieve A. and B.; and 0. Needed legislation, regulations, staffing and/or funding necessary to accomplish A., B. and C. The Working Group shall include the Commission's Subcommittee on waterfowl and one representative, selected by the Commission, from each of the following: local goverment; environmental group; sportsmen/ . conservation group; and wetlands developers/converters. Additionally, it shall include one representative of the Department of Fish and Game as designated by the Director. The group's work shall be coordinated by the Executive Secretary of the Commission who shall present its recommendations, which shall include gui del i rtes for the Departsent's implementation of this policy including an appropriate wetland definition, to the Commission no later than June 30, 2987. —56— i THE STATUS OF WETLAND HABITAT AND ITS PROTECTION, ENHANCEMENT, AND EXPANSION w DEPARTMENT OF FISH AND GAa�iE Jack C. Parnell Director Prepared by Environmental Services Division Don Lollock , Chief Presented before the .Fish and Game Commission on March 9 , 1987 by Glenn Rollins , Environmental Services Supervisor , Environmental Services Division. 313TORI C WE t'LAAWS The lack of authentic records makes the precise quantification of historic wetland habitat in California quite difficult. For this reason, substantial differences exist in the estimates of the total acreage of wetlands occurring in California prior to settlement by Europeans in the 19th century. Six million acres of wetlands were estimated by Horn and Glasgow ( Linduska 1964 ) and five million acres were reported in waterfowl of California ( Kozlik 1974 ) . A report prepared by the U. S . Fish and wildlife Service in 1978 estimates the total historic wetland area at between 4 . 1 million and 5 . 0 million acres (Appendix 1 ) . The State originally contained an estimated 500 , 000 acres of permanent freshwater marshes ( Kahrl 1979 ) . The majority of this habitat occurred as tidal and nontidal marshes along the borders, of Grizzly and Suisun bays and the Delta, Tulare and Kern lakes, and in basins along the Sacramento and San Joaquin rivers ( Mittel 1863 ) . These vast permanently flooded marshes consisted primarily of cattails , several species of bulrushes , and pondweeds . Each winter millions of additional acres of seasonal wetland were created as rivers and streams throughout the Central valley and elsewhere in the State, swollen by rainfall and melting snow, overflowed their banks and inundated adjacent grassland and wetla.nc riparian forests . vast flocks of waterfowl , which reportedly darkened the sky , for several minutes as they passed, eagerly sought the temporary abundance of grass seed and terrestrial insects . Coastal estuarine wetlands are believed to have totaled _ approximately 381 , 000 acres in the mid-1800s . They too supported vast numbers of wintering waterfowl and, in addition , were particularly important as a wintering area for millions of shorebirds . PRESENT STATUS OF WETLANDS Wetlands have suffered greatly as a result of modern man' s presence . The quantity and quality of wetland habitat in California have decreased dramatically in the face of our burgeoning population ( Appendix la . Statewide , wetlands have beer reduced in area to less than 10 percent of historic levels . Coastal estuarine wetlands have been reduced to approximately Z5 percent of historic levels . The major factors responsible for the loss of wetlands have been the construction of thousands of miles of flood control levees an subsequent conversion of natural wetlands to agricultural production and urban development , the dredging and filling of estuarine habitat for urban, industrial and port development , the construction of flood control and water storage reservoirs ; and channelizaticn of . thousands _of miles of natural water-�Fays . ,many the surviving wetlands and the `i-sh` and �i :dlie -ee our:ces they s:spport are being degraded by pollutants such as persistent pesticides and herbicides ; heavy metals and toxic chemicals from urban, industrial , and agricultural sources ; and petrochemical Spills from land based facilities , ships , and pleasure craft. Still other wetlands are succumbing to increased salinity, and the unavailability of adequate quantities of water at appropriate times of the year as a result of upstream water storage and diversions . One of the best barometers with which to monitor the status of . wetlands throughout California are those plant and animal species dependent upon wetland habitat for their continued survival . Fifty-five percent of the animal species designated as threatened or endangered by the State are dependent upon wetland habitat for their survival . Familiar examples of this group include : California freshwater shrimp ( endangered) ; giant garter. snake ( endangered) ; California clapper rail , Yuma clapper rail , and light-footed rail ( all endangered) , least Bell ' s vireo ( endangered ) , greater sandhill crane ( threatened) , western yellow-killed cuckoo ( threatened) , southern bald eagle ( endangered) , salt-marsh harvest mouse ( endangered) , desert and Owens pupfish ( endangered) , and the Little Kern golden trout ( threatened) . in addition, one out of four plants listed by the State as threatened or endangered requires wetland conditions for survival . Perhaps the most highly publicized barometers of the status of wetlands are our migratory waterfowl . The numbers of ducks and geese wintering in California has plummeted since the turn of this century. Although some of . this precipitous decline can be attributed to the drainage and conversion of their ancestral breeding grounds in Canada , the loss of 40 percent of the historic wetlands in California must also be a contributing factor to the decline in the waterfowl population of the Pacific Flyway . The results of studies conducted by resource agencies indicate that waterfowl recruitment is significantly affected by the body condition of hens .returning to their northern breeding grounds to nest. Obviously, as wintering habitat diminishes. in size , waterfowl are crowded into smaller and smaller areas . Not only does such crowding increase. the level of competition for available feed , but study results additionally indicate that a relatively high percentage of hens returning to their breeding groctnd are in moderate to poor condition and can be expected to achieve less than optimum reproductive success . Crowding also increases the vulnerability of waterfowl to disease and environmental pollution . Each year thousands of birds succumb to botulism, fowl cholera , oil spills , and/or contaminants such as selenium and pesticides . Now, more than ever before , our wetland resources need an aggressive ; comprehensive program of wetland protection , . enhancement , and expansion. we ' believe that through .the conscientious application of the Commission' s wetland Folicy and the implementation of a well-planned and creative program of wetland enhancement and expansion , that the Department will be able -4- t o 4rto halt the loss of wetland habitat and begin the process of _ restoring and expanding the wetland resources of the State to healthy levels . WETLAND PROTZCTION DFG Position and Commission Policy Regarding the Protection of wetlands The Department' s position regarding the protection of wetlands is that projects should not result in a net loss of either wetland acreage or wetland habitat value . This Department position has been consistently applied during project review analysis and in attempting to resolve our concerns regarding adverse impacts to wetland resources during negotiations with various agencies and private individuals . The mitigation and compensation of project impacts through acquisitions and restoration has been the responsibility of project beneficiaries . we believe that the Department' s position regarding wetlands is wholly consistent with the recently adopted Fish and Game Commission wetland protection policy. Among the specific wetland impact minimization techniques which have been employed by the Department in carrying out its wetland position as well as the Commission wetland policy are : 1 . Elimination- or minimization of adverse Rroiect impacts to This wetlands . T s tec nique involves the identification o the Least environmentally-damaging alternative project design and location which may feasibly be employed, and an assessment of wetland acreage and/or wetland habitat value which cannot feasibly be protected . 2 . Assuring no net loss of wetland acreage . This technique involves the creation of no less wet and acreage than that acreage which cannot be feasibly protected from loss through adoption of the least environmentally-damaging feasible project design and location criteria previously discussed. For example , if a project resulted in 2 acres of wetland fill , then the Department' s position regarding retention of wetland acreage, with . respect to this hypothetical project, would be that no less than 2 acres of wetland must be created in an area which is not presently wetland in character . Given this compensation strategy it is. of fundamental importance to locate a compensation site which is both non-wetland in character , and does not presently provide significant habitat value to of er fish or wildlife resources : Failure to properly consider the existing value of a potential compensation area could result in adverse impacts to important non-wetland- areas and destroy one vital area while attempting to compensate foe' adverse impacts to another . Compensation sites must also be selected such that wetland acreage and values lost may be reasonably expected to be fully compensated i . e . , replaced for the lime of the project . : t is also essential that post-project monitoring be performed to insure that mitigation and compensation measures are working - satisfactorily. If artificial measures are needed to sustain the replacement habitat, the operation and maintenance costs must be included as part of the project cost. 3 . Preventin2 the loss of wetland habitat values due to direct oss is requirement of botht e Commission' s policy an the Department' s position is somewhat more subjective in nature than is the retention of wetland acreage discussed above . In order to retain wetland habitat values through compensation, it follows that we must either resort to exhaustive analysis of existing resources at the project site and potential resources at the compensation site ; or that we must develop an ecologically-based general assumption regarding the habitat values associated with any given wetland area. The Department generally utilizes the latter alternative . Our assumption is , and has been, that fish and wildlife use of a given wetland area is a function of its location, size, and physical - makeup in terms of hydrology, salinity, soil characteristics and vegetation. we also assume, . based. upon sound inference , that the vegetational component of a given wetland area is directly related to the physical characteristics of that wetland area . Therefore , we have concluded that if a compensation wetland area is at least as large as the wetland area to be impacted, and if, following restoration, it possesses essentially identical physical characteristics such as water depth, periodicity of inundation and/or substrate saturation, salinity, and soil type , then it is highly probable that the wetland compensation area will develop a vegetative component functionally equivalent to the wetland area to be impacted . Logically, then , the fish and wildlife use , and, therefore , the "habitat value" of these areas will also be functionally equivalent . Therefore , we believe that the application of the general principal of in-kind compensation leads to a supportable assumption of no net loss of wetland habitat values . 4 . Prevention of indirect im acts to wetland habitat values . It o en arises t at , even though a given wetland area wilT not be reduced in acreage as a result of a given project , a net loss of habitat value nonetheless would result from project implementation. The most obvious , and common , source of such indirect impacts to wetland habitat values occurs when activities proposed within a given development area would result in increasing disturbance levels within an adjacent wetland . Such factors as increased noise levels and increased levels of visual disturbance have been demonstrated to have a negative effect upon wildlife use and , therefore , upon the habitat values associated with wetland areas . Therefore , it is necessary to assure that such indirect effects are either eliminated or adequately ;mi_tigated to assure that the indirect impacts do not result in the redu'c-tion of wetland habitat values . in this regard, the Deoartment .gas insisted upon the placement of buffer zones of sufficient width and character :o eliminate indirect adverse impacts associated with noise and visual disturbance , between proposed development and wetland areas . The Department also recommends the inclusion of such buffer zones , when appropriate , at both the project site and the compensation site, when we are dealing with wetland loss/wetland compensation scenarios such as those which we have previously discussed. A less obvious source of indirect impact arises from the simplification of an ecosystem when a component of such a systers is eliminated through development. Often the -fish and wildlife value of a wetland area is significantly influenced by adjacent non-wetland habitat. For example, the removal of, . an upland area through development may result in significant adverse indirect impacts to an adjacent upland wetland area. Such impacts include interruption of the flow of nutrients, predator/prey imbalances, elimination of all species which depend upon both wetland and adjacent habitat, and increased sedimentation rates within the wetland area. In attempting to address this issue, the Department at times recommends the inclusion of an upland component within a compensation area, or retention of important upland areas in initial project review through changes in project location and/or design criteria. However, because biologically important non-wetland areas are not generally protected by various laws to the same extent as is the case with wetlands, the Department has found that proper compensation for the subtle effects of ecosystem simplication is extremely difficult to achieve . Jurisdictions Zn attempting to carry out our position regarding protection of wetlands as well as the Commission ' s wetland policy, the Department deals with a multitude of agencies operating under State and Federal lags and policies related to the protection of fish and wildlife resources . We also deal with numerous local decision-making bodies such as planning commissions ,. city councils , and county boards of supervisors as well as semi-autonomous flood coat.oi districts , and mosquito abatement districts . From a wetland protection standpoint , the primary State and Federal permit processes are those of the U. S . Army Corps of Engineers which operates under permit guidelines promulgated in response to Section 404 ( b ) ( 1 ) of the Federal Clean water Act and the permit requirements of Section 10 of the Federal River and Harbor Act ; the California Coastal Commission which is charged with applying the wetland protection policies contained in the California Coastal Act ; and the San Francisca Say Conservation and Development Commission ( SCDC ) which is charged with applying the wetland= protection -, poli,c.ies. of the McAteer-Petri.s Act and the Suisun marsh Preservation Act . .Additionally , local entities generaily require the issuance of building permits for all projects including those which take place within wetlands. These local entities ( cities and counties ) typically function as lead agencies pursuant to the California Environmental Quality Act ( CEQA) and are, therefore, charged with responsibility for the preparation of Environmental Impact Reports and Negative Declarations of Project Impact pursuant to CEQA requirements . Because of the frequent occurrence of threatened and endangered species in wetlands , the provisions of the Federal Endangered Species Act are often activated when projects incorporate adverse impacts to wetlands . Consequently, in attempting to protect wetland resources the Department often works closely with the U. S . Fish and wildlife which is responsible for carrying out the provisions of the Federal Endangered Species Act. Additionally when the lead Agency . ( the agency responsible for carrying out or permitting a given project) is a State agency, then if adverse impacts to endangered species could result from project implementation, the provisions of the State Endangered Species Act are activated. The Department utilizes these provisions to assure that the species in question is not negatively affected. our dealings with federal agencies typically involve the requirements of the Fish and wildlife Coordination Act and often involve the requirements of the National Environmental Policy Act, as well . The role of the Department of Fish and Game in permit processes affecting wetlands is primarily advisory and consultative in nature . The Department has no permit authority. over uses proposed within wetland areas . However., Fish and Game Code Sections 1600-1606 require streambed alteration agreements to be executed prior to construction of projects which would impact wetlands associated with rivers , streams , and Lakes . Fish and Game Code Sections 5650-5654 pertain to the protection of water quality in waters of the State , but are not generally related to construction fill deposition or dredging activities within wetlands . Definitions . In order for the Department to uniformly apply its wetland position as well as the Commission ' s Policy on a consistent basis across the wide spectrum of wetland types present within the entirety of the State of California , it follows that we must be able to consistently identify wetl-and areas . In order . to identify wetlands , it also follows that we must be able to consistently and uniformly differentiate between wetlands , uplands , and non-wetland aquatic habitats . This requirement , in turn, calls . for the consistent application of a thoroughly adequate wetland definition sufficiently broad to include all wetland types occurring in California . From a practical standpoint :there are , at ores-enc ,- three distinct wetland definitions extant in California . These. definitions , in addition to that contained in ?residential Executive Order 11990 , appear in their entirety in Appendix II of our presentation. These extant wetland definitions are: . - 1 ) that which appears in the California Coastal Act; ( 2 ) that which appears in the U. S . Army Corps of Engineers Section 404 ( b ) ( 1 ) guidelines ; and 3 ) that which is contained in the U. S . Fish and Wildlife Service publication "Classification of Wetlands and Deepwater Habitats of the United States" ( Cowardin, et.al . , December 1979 ) . Since the Coastal Commission has adopted Interpretive Guidelines which indicate virtual identity between the Coastal Act definition and the U. S . Fish and Wildlife Service definition, and since these guidelines indicate that the U. S. Fish and wildlife Service definition and classification system are to be used in the field identification of wetland resources within the Coastal Zone, therefore, for all intents and purposes , there are ,only two wetland definitions presently in use . The wetland definitions used by the Corps and the Fish and Wildlife Service differ substantially in terms of their interpretation. The Corps of Engineers has repeatedly found that wetlands must, ( 1 ) exhibit hydric (wetland indicator) soils and, ( 2 ) evidence of periodic inundation .or soil saturation, and ( 3 ) a prevalence of hydrophytic (wetland indicator ) plants . while it is true that areas which exhibit all three of these characteristics are definitely wetlands , it is also true that not all wetlands exhibit all three characteristics . For this reason, the Corps definition ( and/or its interpretation by the Corps of Engineers ) does not include all those areas which the Department considers to be wetlands . For example , the Corps , definition ( if strictly interpreted pursuant to Corps wetland recognition criteria) might exclude periodically inundated, non-vegetated intertidal mudflats from being recognized as wetlands ; further , periodically inundated non-vegetated salt flat areas could be excluded from being recognized as wetlands as well . In order to regulate salt flats which are important to migratory waterfowl , the Corps has recently begun to regulate uses within these areas by referring to these wetlands as "other waters of the United states which are important to interstate commerce . " The USFWS definition , :n the other hand is intended to include all wetland types and :aerefore all fish and wildlife resources therein. This definition requires that a given area satisfy at least one of three criteria in order to be definable as a wetland . These criteria are similar to those three criteria utilized --y the Corps of Engineers . The criteria are : 1 ) the presence of at least periodic predominance of hydrophyt:. z vegetation ; Z ) predominately hydric soils; and 3 ) periodic inundation . Inasmuch as only one of these ,_characterisz: cs must be present in order to define an ' area is a wetland , and using the example discussed above , the USFWS definition would correctly recognize intertidal mudflats and periodically inundated salt flats as -9- wetland areas . This ability of the USFWS definition to - include all wetland types has resulted in claims from the development community that the USFWS definition is overly broad, and that this definition could lead to absurd conclusion regarding wetland identification. A freeway, some respondents to the Commission' s Policy have argued, would be defined as a wetland by virtue of its periodic inundation by extremely shallow water during winter rains . The fact of the matter is, however , that the USFWS definition clearly states that at least one of the three criteria must be present. Implicit i�his wording is that in some cases more than one of the criteria must be present and that some areas exhibiting only one of the three criteria ( such as freeways ) are not necessarily definable as wetlands . obviously, it is not the Department' s intent to pursue the protection of areas devoid Of fish or wildlife values . The Department has used the USFWS wetland definition and classification system on a statewide basis in wetland identification efforts . We have found this definition to be adequately broad to include all areas which the Department believes . to be wetlands . We have found the USFWS definition to be scientifically elegant in that it includes a systematic application of the same physical and biological criteria on a case—by—case basis . Inaddition, we have found the wetland classification system, which is also contained in _the USFWS publication referenced previously, to be uniformly applicable to wetlands within the State of California. Although it may be argued, with some merit , that no classification system is completely infallible , we have found that the the USFWS definition and classification system thoroughly adequate to encompass all of those areas which the Department considers to be wetlands . The Corps ' definition ( and/or Corps interpretation of that definition ) , however contains several significant inconsistencies and at times has resulted in what the Department considers to be erroneous findings regarding the non—existence of wetland habitat . For all of the reasons previously addressed, the Department has been using- the USFWS definition and classification system in the identification of wetland resources within the State of California for the last 8 to 9 years and Intends to continue to do so . We would again remind the Commission that the Department ' s role relative to various permit programs is advisory and that the identification of wetland habitat on the site of a proposed project does not , in and of itself , prevent project construction . The decision to permit a project or to impose mitigation measures as permit conditions rests entirely with permitting 'agencies n accordance with applicable laws . -10- Long Range Protection The State of California incorporates widely divergent climatic patterns and geological settings within its nearly 160 , 000 square mile area. California' s wetlands reflect this diversity in terms of their physical character . They range from extensive salt marshes to desert washes , and from small vernal pools to huge estuaries . Additionally, threats to the continued viability of California' s remaining wetlands vary significantly from area to area. whereas residential, commercial and industrial development; water quality problems; and channelization/flood control projects are threats which are, more or less , universal in nature, these . problems vary in intensity from area to area throughout the State. Further , some pressing problems related to wetland protection are unique to specific geographic regions of the State . Because of the variety of wetland types involved, and because problems associated with wetland protection vary significantly from area to area throughout the State; the Department believes that in addition to the measures previously described for the review of projects , the greatest opportunity for wetland protection in California consists of devising problem resolution strategies which are customized to specific problems which occur in each geographic area of the State . Although the State may be divided into numerous distinct subareas along climatic , geographic, wetland types , and wetland protection problem criteria, the Department has found that the following .six general geographic areas contain the most pressing wetland protection problems ; and that these areas are distinct from one another regarding wetland protection problems . Therefore , we find that these six areas should receive priority emphasis from a problem resolution standpoint , and that each of these six areas will require an individualized approach to resolve its unique wetland protection problems . I . North Coast - This area is currently experiencing economic problems associated with the faltering lumber industry. it is sparsely populated compared to other areas in which pressing wetland protection problems exist . North Coast wetland protection problems are mainly centered in and around Humboldt Bay which is the second largest estuarine environment in California . Primary wetland problems are related to urban and industrial expansion; the most serious arising from potential coastal-dependent industrial development around Humboldt Bay and the attendant potential resultant need for harbor improvements and infrastructure expansion . Z . San Francisco Sav - "his area ( together with San Pablo and Suisun ays ) contains approximately 80 percent . of all remaining estuarine wetland habitat in California . Protection of the Say and its associated wetlands is of vital importance from a biological standpoint : :'he overall population of the Say area is in excess of fire million people . Development pressure upon remaining wet'_dnd resources is severe . Among the most pressing wetland protection problems associated with the San Francisco Bay area are : development of marinas and - water-front marina oriented housing; light-industrial development particularly in the South Say; the need the for disposal of solid waste; general industrial development; port-related development; and widespread unregulated discing of wetland areas purportedly for agricultural purposes . 3 . South Coastal ( Santa Barbara County Soutli) - Remaining coastal wetlands in southern California are generally small compared to the estuarine wetlands associated with San Francisco Bay ' and Bunbol.dt Bay. For the most part, these coastal wetlands were,-fo*maILy ice-age river valleys bordered by small hills , and occur at the mouths of south coastal streams and rivers . Seventy percent of California' s population is located south of the Tehachapi ' s and over SO percent of southern California' s population is concentrated along the coastal shelf within ZS to 30 miles of the Pacific Ocean. Consequently, development pressure upon remaining southern California coastal wetlands is intense, and opportunities to compensate for adverse impacts to these wetlands while retaining wetland acreage, are limited. in addition to direct problems related to competing potential land uses such as industry, energy production, water-front housing, port-gelated development, high-density residential development, and commercial development, problems associated with sedimentation within the remaining coastal wetlands of southern California are of extreme concern. As previously indicated, most of these wetlands occur at the mouths of small streams . These streams generally are associated with rather small watersheds composed primarily of highly erodible sandy substrate . The watersheds are being subjected to development on a grand scale as Orange and San Diego counties continue to increase in population at prodigious rates . The result of large-scale development in coastal wetland watersheds .is that the process of sedimentation within these wetlands has drastically increased. Consequently, future survival of many of these wetlands will hinge upon our ability to minimize indirect sedimentation impacts and to remove sediment from these wetlands at least as East as it is deposited. 4 . San Die o County vernal Pool Assemblage .- This unique wetland type lias already been reduced by over 90 percent . Remaining pools are located on undeveloped mesas in the coastal shelf portion of southern San Diego County just outside the Coastal "one . Factors which limit our ability to protect these sensitive areas are that these mesas are relatively flat and are therefore quite easily developed ; that there is only limited regulatory control over development of these vernal pools ; and that the pool areas are designated for large-scale _ development by the various responsible local .governments . Southern California Interior - A considerable per'ceacage of sour ern California ' s fiture population growth will be within presently undeveloped portions of southern and eastern Orange County, Riverside County, and San Bernardino County. Each of these counties contains significant wetland areas associated with the floodplains of rivers and streams . San Bernardino and Riverside counties also contain desert and "near-desert" areas which, in turn, contain springs which are vital to maintenance of fish and wildlife resources in the and environment. Future stream channelization, flood control, and urban expansion projects threaten the maintenance of existing wetlands in these counties . 6 . Central valley ( a) Sacramento valley - The single most profound .impact upon the vast historic wetlands of the Sacramento valley was their conversion to agricultural production, mainly orchards, row crops, corn and rice. This widespread conversion was accomplished by a combination of levee construction, stream and river channelization, and the construction of flood control/water storage reservoirs . Although waste grain is eagerly sought after by waterfowl in the burned and flooded rice fields , it is high in starch and provides insufficient protein to maintain bird vigor throughout the winter and pre-breeding period. Thus , a very real need exists to provide a more diversified winter food supply. Natural wetland habitat supports a variety of plant species and invertebrates which are very high in nutritional value and are •thus capable of supplying the dietary elements necessary to maintain a healthy waterfowl population. Therefore , a primary goal of the resources agencies is the acquisition of non-wetland area� and their conversion to high quality marsh habitat . Same of the primary limiting factors for wetland creation and enhancement in this region are the cost of water , its priority of use , and its timely availability. Present wetland management is dependent upon the delivery of water by local irrigation districts and groundwater pumping. Pumping costs are prohibitive for most private duck clubs , and surface deliveries are timed primarily fat rice culture . Although the cost of flooding duck clubs in the fall does not seem to be a serious problem, many clubs are unable to afford the delivery of water in the spring when it is most critical from a habitat management standpoint. Developed water from the Federal Central valley Project is available only on a second priority basis for refuges below that for municipal , industrial , and agricultural uses . The widespread use of persistent herbicides and pesticides can represent a hazard to wet+and associated wildlife , particularly species of waterfowl that nest in the valley . In the last two years we have investigated several cases o.4 waterfowl mortality which have cesulted from use of carbofuran, a pesticide widely used to control the rice leaf -13- miner . In addition, there is increasing concern regarding the use of agricultural wastewater , bearing even minute amounts of " contaminants, for fear of concentrating these substances in the receiving wetlands as has occurred in the case of Kesterson wildlife Area. . An ongoing problem, which continues -to result in severe impacts to wetland habitat and associated wildlife species , is the channelization of natural rivers and streams and the removal of wetland vegetation growing along the banks . The removal of vegetation and the prevention of seasonal flooding are direct impacts which can be easily observed. Less obvious are the significant deleterious effects upon young salmon and steelhead, and other fish which require streamside wetland habitat for escape cover and as a source of food both directly in the form of terrestrial insects and indirectly in the form of nutrients necessary for the production of zooplankton. . Residential and industrial development of valley and foothill communities is a threat to wetlands which will continue to worsen. The filling of vernal pools . and seasonally flooded low areas , coupled with increased levels of flood protection achieved through the channelization of waterways and improved regional drainage facilities , can be expected to severely challenge our ability to maintain wetland acreage and habitat values in this section of the State . ( b ) San Joaquin valley - The wetlands present in the San Joaquin Valley and adjacent . foothills are subject to the same threats posed by residential and industrial development , channelization, the removal of streamside wetland vegetation , and widespread use of persistent herbicides and pesticides , as described for the Sacramento valley. Due to its drier climate and its reliance on expensive imported water supplies , the problems associated with the cast of water , its secondary priority to other uses , and its timely availability in sufficient quantities for the purpose of wetland habitat management are. even more acute than those of the Sacramento valley. A problem unique to the San Joaquin valley is its inability to safely dispose of wastewater . The use of relatively inexpensive agricultural drain water has proven disastrous to wetland resources in certain portions of the valley . We are not sure at this point just how widespread the problem of selenium and heavy metal contamination is , and we will have to await the results of oncoing studies . The identification of sources of good quality water available for the Grasslands duck clubs and State and Federal wildlife refuges on an equal priority basis will require the concerted efforts of a variety of agencies , ,as well as private organizations and individuals . In order to successfully resolve problems associated with wetland protection in t.;e above areas as well as throughout the remainder of the State , the Department intends to apply the following protective measures . -14- 1 . Attempt to avoid adverse impacts to wetlands through review of and comment upon proposed projects , land use plans , and ` community plans during the public permit and planning consideration process, and seek no less than acre-for-acre, in-kind compensation for unavoidable adverse impacts to wetlands; 2 . Identify specific wetland areas subject to intensive development pressure , and develop conflict solution strategies for these areas consistent with Commission policy regarding no net. losa of either wetland acreage or wetland habitat value ; 3 . Compile a prioritized list of wetlands for public acquisition through purchase , gifts, land exchanges , and other forms of public acquisition; 4 . Intensify efforts to assure adequate water quality and supply; S . Seek to preserve privately-owned wetlands through the creation. of economic and other incentives ; 6 . Increase public awareness of wetland protection problem through intensified educational . programs ; and 7 . Maintain close coordination with appropriate local, State, and Federal agencies . EXPANSION AND ENHANCEMENT OF WETLANDS The Department is supportive of the goals of Senate Concurrent Resolution 28 regarding the expansion of the States wetland area by 50 percent by the year 2000 . Toward this end , the Department intends to pursue each of the following means of wetland expansion and enhancement . 1 . Evaluate the potential for creating additional wetlands , and of enhancing existing wetlands , on Department-owned lands ; 2 . Evaluate the potential for creating wetlands on other State-owned lands ; 3 . Seek the expansion and enhancement of privately-owned wetlands through the application of economic and other incentives ;- 4 . Identify potential existing and possible future sources of funds which could be used to enhance , restore , and create wetlands ; 5 . Evaluate the Feasibility of creating , restoring, and enhancing wetlands an, federally-owned lands , such as those of the Bureau _ � of Land management and U . S.-' Forest Serv�.ce ; 6 . Encourage the creation, restoration, and enhancement of wetlands by federal agencies ; and 7 . Maintain and intensify Department extension and advisory efforts related to wetland management practices on private lands . CURRENT WETLAND ACTION PROGRAMS - Suisun Marsh Protection Program - We are very pleased to announce that the Department of Fish and Game, Department of water Resources, the U. S . Bureau of Reclamation, and the Suisun Resource Conservation District executed several interagency agreements last Monday, March 2 . These agreements authorise the construction of water distribution facilities throughout the Suisun Marsh; guarantee adequate water quality for wetlands management, provide for ongoing post-project monitoring; and assure implementation of mitigation needed to offset wetland losses due to the construction. of water control - and distribution ' facilities in the Marsh. The signing ceremonies concluded over 25 years of research and 17 years of, negotiations. State Duck Stamp Program ( 1971 ) - The sale of State duck stamps is presently generating approximately $750 , 000 per year . Two-thirds percent of these funds are spent in California on wetland habitat maintenance , development, and enhancement activities designed to benefit waterfowl , although many other wetland dependent species also benefit from the program. X.A.R. S .H. Program - , The Matching Aid to Restore State' s Habitat Program is sponsored by Ducks Unlimited. The program is funded ny earmarking 7 1/2 percent of the revenue generated by fund raisers . About $300 , 000 is generated in California each year and is spent on the development and enhancement of waterfowl habitat. - Proposition 19 - This Bond Act provided at total of $85 million of which $70 million is earmarked of which $70 is earmarked for the acquisition, restoration, and enhancement of inland and coastal wetlands . - Federal Waterbank Program - The current funding level is $575 , 000 per year . Private land owners in designated areas of the State receive payments in return for entering into wetland management agreements which guarantee the presence of winter habitat and/or the retention of water on the properties in the spring to provide breeding habitat . - Federal wetland Easement Program - ,Current funding is $5 million per year . These funds provide for a one-time , per-acre payment to the owners of wetlands provided that t.hey agree to maintain their property as wetland habitat in perpetuity . This program is presently centered around the Grasslands Butte Sink , willow Creek , and Colusa areas and is intended to preserve existing wetlands . - Cal Marsh Program - The California waterfowl Association sponsors this program. Funding amounts to $50 , 000 a year and is derived from fund raisers . The purpose of the program is to fund waterfowl research and the development of waterfowl wintering and breeding habitat. - Federal Food Security Act of 1985 - This Act in part attempts to prevent the destruction of wetlands as a result of agricultural practices by denying farm subsidies to farmers who drain, fill or otherwise destroy wetland habitat on their property. . - San Joaquin valley Drainage Program - This program is composed of two State and three Federal agencies and is funded on a joint ( State/Federal ) basis . The program is intended to solve the problems which have arisen from the presence of selenium and 13 other trace elements in agricultural drain water . Some possible solutions which the interagency team is evaluating are : a . A substantial reduction in the volume of drain water through the application of modified irrigation practices . b. The development of treatment techniques which would remove the contaminants prior to entry into the environment. c. Studies which are directed at determining safe levels of the contaminants , and which would then lead to regulated water quality standards . d . Alternative methods of drain water disposal . e . Beneficial uses of adequately treated wastewater . r t HWORJCAL.LQS,,;,S 4F LN CALIMRAKA s � 1850 ..... .^. 9 3.7 • .. acre�Ot hYltfs,..._ gar19 rf w _"'r.^moi t � 4a2. Qp acres qE w°ids i r onor to t qW,, tri A.i to 3 �o3p reap IS7Q roo0 logo 1900 rS�ygw r��v � r 9io r 9sp 91"ar� r 9 0 � S--ft t Source: U. S. CaQeQFish attd Wi2dli�e P=eservatioa (Haa Setvi a (may. 19' fowl Maceriaq Ha►bi ac �l$r APPENDIX 11 WETLAND DEFINITIONS President Carter' s E. O . 11990 ( dated may 24 , 1977 ) defines wetlands as follows : T e term wetlands means those areas that are inundated by surface or ground water with a frequency sufficient to support and under normal circumstances do or would support a prevalence of vegetative or aquatic life that requires saturated or seasonally saturated soil conditions for growth and reproduction. Wetlands generally include swamps , marshes , bogs , and similar areas such as sloughs ,, potholes , wet meadows, river overflows , mudflats, and natural ponds . " The ;oint 404 ( b ) permit regulations ( dated July 19 , e ine wetlands as o ows ; "The term. wetlands means 'those areas that are inundated or saturated by surface or ground water at a frequency and duration sufficient to support, and that under normal circumstances do support, a prevalence of vegetation typically adapted for life in saturated soil conditions . Wetlands generally include swamps , marshes , bogs and similar areas . " The Fish and Wildlife Service' s wetland classification system ( dateZI December defines wet an s as follows : "Wetlands are lands transitionsbetween ter-restriai and aquatic systems where the water table is usually at or near the surface or the land is covered by shallow water. for purposes of this classification wetlands must have one or more of the following attributes : ( 1 ) at least periodically, the land supports predominantly hydrophytes ; ( 2 ) the substrate is predominantly undrained hydric soil ; and ( 3 ) the substrate is non-soil and is saturated with water or covered by shallow water at some time during the growing season of each year . " The California Coastal Act defines wetlands as follows : "Land which may be covered periodically or permanently wit shallow water and include saltwater marshes , freshwater marshes , open or closed brackish water marshes , swamps , mudflats , and fens . " i a . T DEPARTMENT OF FISH AND GAME RECOMMENDED WETLAND DEFINITION, MITIGATION STRATEGIES, AND HABITAT VALUE ASSESSMENT METHODOLOGY DEPARTMENT OF FISH AND GAME Prepared by Environmental 'Services Division Presented by Glenn Rollins, Environmental Services Supervisor in public workshop to the Fish and Game Commission, on June 24, 1987, Sacramento INTRODUCTION At the Match 9, 1987 Fish and Game Commission hearing during which the Commission adopted a wetlands policy, the Commission assigned the Department two tasks. These tasks were: 1) - to recommend a wetland definition for use in the implementation of the Commission's adopted policy, and 2) to recommend a means by which retention of wetland habitat values may be assured when it becomes necessary to compensate for.the loss of wetland acreage and/or wetland habitat values resulting from the implementation of projects or other activities. This report is intended to respond to the Commission's request. The Commission's wetland policy is not a regulatory program. The Department and the Commission possess only limited regulatory authority over potential uses within remaining wetlands not currently, owned by the Department. Our role in. wetland protection, as we have explained in our March 9, 1987 report to the Commission, is primarily advisory in nature. Therefore, this report identifies a wetland definition and . an implementable procedure by which wetland acreage and habitat values will be retained when it has been determined that projects, plans or other activities will occupy or otherwise adversely impact wetlands. 2 WETLAND DEFINITION It is apparent that the adequacy of the Commission's wetland policy is directly related to the adequacy of the wetland definition to which the policy relates. As we indicated in our previous report to the Commission, the Department has found the U.S. Fish and Wildlife Service (USFWS) wetland definition and classification system to be the most biologically valid of those definitions and classification systems presently utilized in California. The USFWS definition utilizes hydric soils'/1 saturation or inundation, and vegetative criteria, and requires the presence of at least one of these criteria (rather than all three) in order to classify an area as a wetland. The USFWS definition has been employed in project review nationwide for over 8 years. It has been well tested and proven to be adequate. Further, because it requires the application of the same array of biological and physical parameters, it exhibits a degree of consistency and uniformity which is advantageous to biological and developmental planners alike. The Department's use of the USFWS wetland definition as the principal means of wetland identification, combined with on-site inspections to establish actual wetland acreage and habitat values, will substantially 1/Hydric soils are those soils identified as such by the U. S. Soil Conservation Service criteria. 3 increase the consistency of our wetland determinations. This improved level of consistency should subsequently alleviate the past uncertainties and frustrations experienced by the development community. Lastly, and as will be explained in greater detail later, if a wetland compensation site is to be located within or adjacent to the project site, assurances regarding the establishment and long-term retention of fish and .wildlife habitat values must be provided. The USFWS 'definition is as follows: "Wetlands are lands transitional between terrestrial and aquatic systems where the water table is usually at or near the surface or the land is covered by shallow water. For purposes of this classification, wetlands must have one or more of the following three attributes: (1) at least periodically, the land supports predominantly hydrophytes2/; (2) the substrate is predominantly undrained hydric soil; and (3) the substrate is non-soil and is saturated with water. or covered by shallow water at some time during the growing season of each year. " (Classification of Wetlands and Deepwater Habitats of the United States" ; FWS/OBS 79/31; December 1979) . 2/Pursuant to the USFWS document "List of Plant Species that Occur in Wetlands - Region 0" - Region 0 is California. 4 The USFWS wetland classification publication also describes the upper (landward) and lower (waterward) limits of wetlands. These limits are described as follows: "The upland limit of wetland is designated as (1) the boundary between land with predominantly hydrophytic cover and land with predominantly mesophytic or xerophytic cover; (2) the boundary between. soil that is predominantly hydric and soil that is predominantly non-hydric; or (3) in the case of wetlands without vegetation or soil, the boundary between land that is flooded or saturated at some time each year and land that is not. " (Ibid, page 4) . The lower limit of wetlands in estuarine or marine areas (i.e. , those wetlands which are subject to the ebb and flow of the tide) is established as coincident with the extreme low spring tide. The lower limit of wetlands in an inland setting (i.e. , those wetlands associated with lakes, rivers, ponds, vernal pools, etc. ) is established at a depth of two meters (6. 6 feet) below low water; however, if emergents, shrubs, or trees grow beyond this depth at any time, then the deepwater edge of such vegetation is the boundary. The USFWS definition includes, swamps; freshwater, brackish water, and saltwater marshes; bogs; vernal pools; periodically inundated saltflats; intertidal mudflats; wet meadows; wet pastures; springs and seeps; portions of lakes, ponds, rivers . and streams; and all other areas which are periodically or permanently covered by 5 shallow water, or dominated by hydrophytic vegetation, or in which the soils are predominantly hydric in nature. Therefore, for all of the reasons set forth above,. the Department recommends the USFWS definition as its .principal means of wetland identification in conjunction with on-site inspections for implementation of the Fish and Game Commission's policy. RETENTION OF WETLAND ACREAGE AND HABITAT VALUES The Commission's wetland policy contains essentially two considerations for offsetting adverse impacts to wetland resources. The policy stresses the need to compensate for the loss of wetland habitat on an acre-for-acre basi6. That is, for every acre of wetland lost, no less than an acre of wetland must be created from non-wetland habitat. Compensation for the loss of wetland habitat values to fish and wildlife resources requires the creation of habitat values at the the compensation site which at least duplicate those habitat values which are lost to project implementation. Requisite assurance that habitat values will, in fact, be at least retained shall be the subject of the remainder of this discussion. Mitigation for habitat values lost to the implementation of a project may be accomplished in four ways taking into consideration mitigation .site location and wetland type to be created. The term "out-of-kind" as used in mitigation scenarios 3 and 4 refers to different types of wetlands and does not include the replacement of wetland habitat with nonwetland habitat. These mitigation alternatives, in descending order of general acceptability are: 1. "In-kind, On-site". This form of mitigation would seek to duplicate the physical nature of the wetland area to be negatively impacted within or adjacent to a project site. This Mitigation technique, if properly applied, would tend to assure that the habitat derived from wetland creation is essentially identical to that which was lost to development; would concentrate on benefiting those fish and wildlife species and local populations adversely impacted by development; and would tend to provide a greater degree of certainty that the benefits provided by the impacted wetland to associated plant and animal communities in the project vicinity are retained. 2. "In-kind, Off-site". This form of mitigation would be selected when "in-kind, on-site" mitigation would result in the creation of wetlands of demonstrably inferior quality to, those which could be created elsewhere. In general, "in-kind, off-site" mitigation should be located as near to the impact site as is feasible. The advantage of in-kind, off site mitigation is that it would, through duplication of the physical nature of the wetland area to be negatively impacted, tend to benefit those fish and wildlife species which would be adversely impacted at the project site and would also tend to maintain their population levels. This form of mitigation 7. does not necessarily assure retention of the local fish and wildlife populations affected by the project. 3 . "Out-of-kind, On-site". It is conceivable that situations could exist where fish and wildlife resources would be better served from a regional standpoint if creation of wetlands of a different type than those adversely impacted through development were selected as mitigation. For example, it could be that, from a management perspective, a freshwater marsh is more valuable to fish and wildlife resources in a given region than an equivalent area of saltmarsh. In such a situation, the Department believes that an alternative to mandatory in-kind replacement of habitat values can be desirable. . However, out-of-kind mitigation is generally inferior to in-kind mitigation, since it does little to provide assured benefit to those species which would be negatively impacted as a result of development. Therefore, only if a compelling biologically-based rationale exists for acceptance of out-of-kind mitigation should such a form of mitigation be employed. Application of out-of-kind compensation on site would generally provide values which relate geographically to those values lost through development, .and would generally result in benefiting that ecosystem, or collection of communities, with which the developed wetland was associated. 4 . "Out-of-kind,. Off-site" - This form of mitigation would not result in the maintenance of those fish and wildlife values 8 lost through development nor would it necessarily have any bearing upon the ecosystem involved at the project site. For these reasons, "out-of-kind, off-site mitigation" is a less acceptable means of compensating for adverse impacts to wetlands. However, if mitigation approaches 1, 2, and 3 cannot be employed, and if the choice is retention of wetland acreage through out-of-kind, off-site compensation or a net loss of wetland acreage, then, and only then, would the Department accept out-of-kind, off-site compensation. For the reasons explained above, the Department will normally seek to compensate for adverse impacts to wetland through in-kind compensation. The controlling assumptions involved in this mitigation approach are: (1) Given duplication of the physical features associated with wetlands to be impacted, the vegetative component of the wetland to be impacted can also be duplicated either through a planting program or through natural colonization and (2) If the physical features and the vegetational components of the impacted area are duplicated, then fish and wildlife resources should become established at the mitigation site at levels which compensate for losses sustained at the project site. Physical features include substrate contours, water depth, duration of inundation, periodicity of inundations, salinity, and soil type. When dealing with in-kind compensation, it is essential to consider each of the representative species or species groups present at a project site and to assure that those representative 9 species or species groups will not be negatively affected. This can be accomplished by taking into consideration existing values provided at the project site and comparing those to the values which would be provided at the compensation site. A habitat evaluation procedure, such as that used by the USFWS, could be used to assure no reduction in habitat value for any of the representative species or species groups present at the project site, provided that such a procedure presumes that there shall be no net loss of wetland acreage. When dealing with out-of-kind compensation, it .is neither desirable nor reasonable to attempt to show equivalency between values foregone at the project site and those different values to be generated at the compensation site. As we have previously indicated, the rationale for acceptance of out-of-kind compensation shall be based upon a biological determination that, from a regional perspective, out-of-kind compensation is demonstrably superior to in-kind compensation. Buffers between existing or proposed development and existing wetlands or wetland compensation sites should be included as an integral component of all mitigation plans in order to assure the attainment and maintenance of habitat values sufficient to . compensate for project impacts. Buffers should be of sufficient width and should be designed to eliminate potential disturbance of fish and wildlife resources from noise, human activity, feral animal intrusion, and any other potential sources of disturbance. The size and character of buffers shall ultimately be determined by the requirements of the affected species most sensitive to such disturbances. When feasible, buffers should be designed in a 10 manner which compliments the habitat values associated with adjacent wetland. For example, a buffer located near freshwater ponds could be planted with those grasses and forbes known to support high density nesting by waterfowl. In no case -shall such buffers be credited as wetland acreage necessary to achieve compliance with the requirements of the Commission's policy . regarding retention of wetland acreage. The loss of wetland acreage and habitat values to project implementation is permanent. Therefore, it is necessary to maintain the mitigation area in perpetuity in order to compensate for the permanent effects of development. It follows then that the project sponsor and his successor(s) must be responsible for the acquisition, development, and permanent maintenance of the compensation site in a manner which fully mitigates the projects impacts to fish and wildlife resources. For this reason, the Department recommends that permanent maintenance of compensation sites be required as a condition of the granting of any permits which might be required for project construction. As was pointed out by several public speakers at the Commission's March 9, 1987 hearing, the art of wetland creation and enhancement is not yet a science. The Department is confident that wetlands can be created in such a manner as to duplicate or exceed that acreage and those habitat values associated with wetland .areas which may, in the future, be developed. However, we are also aware of the possibility that wetland creation sites may not develop all of those fish and wildlife values which were projected 11 at their inception. Therefore, the Department recommends the universal application of requirements that fish and wildlife values at compensation sites shall be thoroughly assessed after their construction pursuant to appropriate permit conditions; that these values be compared to the values which were lost through project development; and that the project sponsor or his successor(s) be required to take such actions as may be necessary to offset any habitat value shortfall which may be discovered as a result of followup studies. The foregoing discussion relates primarily to individual project review, and provides a framework for assuring retention of wetland habitat values lost through project implementation. However, a related, but somewhat less obvious, problem threatens the preservation of wetland habitat values on a statewide basis. This problem involves the direct impacts of large-scale urban expansion upon upland plant communities, and the indirect impacts of such upland development upon wetland habitat values. The problem revolves around the fact that wetlands generally exist as biologically valuable components of larger aggregations of biological communities including a variety of upland communities. Wetlands and associated uplands complement one another. Numerous animals found in wetland areas are, nevertheless, at least partially dependent upon associated uplands. For example, waterfowl, which rest and forage in wetlands, are also, at times, dependent upon associated upland areas for nesting. If, in this example, we protected the wetland but lost the associated upland to development, then the wetland would provide reduced habitat 12 values for waterfowl. So it is with many animals. In spite of the fact that elimination of the ecological bond between wetlands and associated uplands often reduces the value of wetlands to fish and wildlife resources, relatively little regulatory authority exists for, dealing with this issue on a project review, or permit review, basis. It seems that the most effective means of addressing this ongoing problem is to place increased emphasis upon the future review of county general plans in an attempt to steer unavoidable future urban expansion into patterns which provide for retention of upland/wetland relationships. Failure to retain this ecological bond between wetland and associated uplands will result in the creation of isolated wetland enclaves scattered throughout highly urbanized areas, and will result in indirect loss of wetland habitat values. The Commission should be aware that no universal regulatory framework exists for effectively dealing with this issue. Nevertheless, the Department shall attempt to address this issue through county general plan review and the review of other long-range planning documents and actions by local, state, and federal agencies. . The Department believes that a concerted effort to protect California's remaining wetlands can result in achieving compliance with. the Commission's wetland policy. : In order to retain and to expand California's wetland acreage and wetland habitat values, it Will be necessary, in light of the non-regulatory nature of the Commission's .policy, to work closely with the development community and various local, state, and federal governmental entities. Given a mutual commitment on the part of all concerned 13 parties, maintenance of wetland acreage and attendant fish and wildlife values is possible. Through a combination of such cooperation and a continuation of ongoing wetland acquisition, enhancement, and creation activities by local, state, and federal agencies as well as similar efforts by various sportsmen's groups and other conservation organizations, the Department is optimistic that expansion of California's wetland acreage and considerable increases in attendant wetland habitat values are both achievable. The Department wishes to thank the Commission for the opportunity to recommend a comprehensive. wetland definition and identification process, and to recommend the means by which the Commission's wetland policy may be implemented. 14 Department of Fish and Game GUIDELINES for the ESTABLISHMENT and USE Of. WETLAND MITIGATION BANKS STATE OF CALIFORNIA THE RESOURCES AGENCY CALIFORNIA DEPARTMENT OF FISH AND GAME November 1990 i S , r . TABLE OF CONTE"$ Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Definitions: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Qualified Watland Mitigation Bank.. . . . . . • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 BankDeveloper. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . . . . . . . . . . . . . . 4 ProjectProponent. . . . . . . . . . . . . . . . . . . . . . . • . . . . . . . . . . . . . . . . . y . . . . . . . . . . . . 4 Mitigation Credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . . . . . . • . . . 4 BufferZone. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Bank Establishment. . . . . . . . . . . • . . . . . . . . . . . . . . . . . • . . . . . • . . . . . . . . . . . . . . . . . • • • . . . 5 BankTermination. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . . . . . . . . . . . . 4 Bank Financial Qualifications. . . . . . . . . . . . . . . . . . • . . . . . • . . . . . . . . . . . . . . . . . . . y . . .10 ProjectQualification. . . .f . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . .11 Useof Bank• . . , • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . , . . . . . . . . . , . . . • . . , • .12 GeneralConditions. . . Jy . . : • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 Cost of Credits in W*tland Mitigation Banks Ownedby the DFG. . ... . . . . . . . . • . . . . . . . . . . , . . . • . . . . . . . . . . . . . . . . . . . . . . . . . . .14 Administration. . . . . . . . . . . . . . . . . . . . . . . INTRODUCTION In January 1987 the Fish and Gam .Commission adopted the wetlands Resources Policy which states that the Commission (and therefore the Department of Fish and Game [DFG]) shall seek to provide for the protection, preservation, restoration, enhancement and expansion of wetland habitats (as defined in the U.S Fish and Wildlife Service report entitled Classification of Wetlands and Deep Water Habitats of the United States [December 1979]) . The policy further states that the DFG shall strongly discourage development in or conversion of wetlands to non-wetlands and oppose those actions which would result in a not loss of either wetland acreage or wetland habitat values. Mitigation measures for unavoidable impacts to wetlands must therefore result in no net loss of either wetland acreage or wetland habitat values. It should be pointed out here that these.guidelines do not represent regulations. The DFG has only limited authority over land. uses except on property owned by the Department of Fish and Case. However, in its role as trustee for the welfare of the State's fish, wildlife and plant resources, the DFG is authorized to comment on the adequacy of measures required to protect these-resources from project impacts by the California Environmental Quality Act, the California Endangered Species Act, the California Coastal Act and the California Fish and Game Code. Comments and recomsendations provided to permitting agencies by the DFG are to be given great weight in the decision making process. In addition, the DFG is mandated by the Fish and Wildlife Coordination Act to comment upon and make recommendations concerning projects which require federal permits or in which there is a federal interest. The DFG prefers and consistently recomends the avoidance of project impacts to wetlands. Whenever possible, projects should be designed such that they do not impact wetlands. When avoidance of such impacts is not feasible, project impacts to wetland habitat should be minimized. However, the DFG recognizes that in the case of some projects it is not always possible to avoid impacting wetland habitat and, further, that on-site mitigation is at times either infeasible or undesirable from a biological perspective. Although the DFG will continue its policy of seeking on-site mitigation for unavoidable project impacts to wetlands, it has determined 'that in sone cases impacts to wetland resources can be better mitigated off-site. Piecemeal urban development often results in the loss of and encroachment upon seasonal and permanent wetlands and riparian corridors. Obviously. thoughtful regional planning prior to the commencement of urban expansion can minimize wetland impacts and is, from a wetland resource perspective, far superior to the conwn practice of providing mitigation only as individual impacts occur. It is unlikely; hovever, that impacts to wetlands will be completely eliminated and thus the need for providing adequate mitigation for relatively small, isolated wetland impacts will continue. The concept of vetland mitigation banking is not a new one and has been applied in a number of states ranging from Florida to Oregon. To maintain consistency with the DFG's Wetlands Resources Policy, a mitigation bank must be established by converting an upland area to wetland habitat. This can be achieved by reconfiguring the area through excavation and/or by the construction of levees such that the area remains inundated long enough each year that it, assumes the characteristics of a wetland. Such characteristics may include permanent or periodic inundation, the presence of hydrophytic vegetation, the. presence of saturated or hydric soils. and/or the production of aquatic invertebrates. The precise character of wetlands present in a wetland mitigation bank can, to a large extent, be controlled through the management practices applied to the area. Once established, the vetland 2 habitat values present in the bank are determined by a team of wtland experts on a unit area basis. At this point. project proponents, whose projects .qualify, may mitigate the wetland impacts of their projects by merely purchasing an appropriate number of mitigation credits from the owner of the bank. This process relieves the project proponent from having to locate a suitable mitigation site to compensate unavoidable wetland impacts and from having to create the required wetland acreage. From a resource perspective it assures the long-term maintenance of high quality vetland habitat to replace that lost to project development. Most mitigation banking in California has been limited to compensating the .loss of deep-nater marine embayment habitat through the creation of shallow, . subtidal estuarine areas. This program appears to possess a high probability of success because of the relative ease of creating shallow subtidal habitat for nearshore marine fishes. "There does not appear to be. any reason, however, why the saw banking principles can not be successfully employed to compensate the loss of wetland habitat provided that the conditions for wetland mitigation bank establishment defined in these guidelines are implemented. These guidelines do not apply to the process of mitigating impacts to vernal pools. The use of wetland mitigation banks, for qualifying projects, is one of many options open to project proponents to accomplish wetland mitigation required by permitting authorities, These guidelines have been formulated in an effort to achieve a high degree of uniformity and consistency in the establishment and use of such banks throughout the State. DFC employees who become involved with wetland mitigation banks must adhere to these guidelines. Any deviations 3 from these guidelines by DFC employees shall require prior authorization from the Director. The DFG shall apply these guidelines to all future wetland mitigation banks. Qualifigd Wetland Mitigation Bank - A single contiguous parcel of land consisting of upland habitat which has undergone those physical changes necessary to create wetland acreage and optimise the quality of wetland habitat on the site for the express purpose of providing mitigation credits to offset the adverse impacts to wetlands from approved projects elsewhere. To be *qualified' such banks must have received the review and approval of the DFG. Bak Developer, - A legal entity empowered to acquire land, to create or restore and maintain wetland habitat upon that land and to operate said land as a qualified wetland mitigation banjo pursuant to the conditions of an operations agreement with the DFG. the Banjo Developer may employ an agent(s) to actually operate the mitigation bank provided that said agents) has been approved by the DFG. .Project Proponent - Public or private entity acting on its proprietary or management capacity which seeks to implement a project which would unavoidably and adversely impact wetlands and which seeks to compensate for the loss of the wetland acreage and/or vetland habitat values through participation in a " mitigation bank. , Mitigation Credit, - A unit of measured area supporting wetland habitat and wetland habitat values not preexisting at the bank site prior to bank development. Each such unit shall have been assigned a habitat value by the DFG in consultation with other appropriate resource agencies. 4 Buffer Zone - As used herein, a buffer zone is normally a strip of land which lies immediately adjacent to a wetland mitigation bank for the purpose of protecting the wetland habitat and wildlife within the bank from the deleterious impacts of current or future activities occurring outside the zone. The character of buffer zones may vary widely depending on a variety of site specific circumstances. Buffer zones say be composed primarily of water or include fences, 'walls or unbroken screens of vegetation. Regardless of their design, buffer zones must be of sufficient width and character to protect the wetland resource values supported within a mitigation bank from any diminishment due to land uses occurring outside the bank. In this regard buffer zones shall be designed to preclude disturbance associated impacts to the most sensitive species inhabiting the mitigation bank site. BANK The following conditions must bi met .during the establishment of new wetland mitigation banks: 1. Mitigation bank sites shall be located near areas of expectedfuture wetland impacts to assure that those wetland resources being impacted will benefit from bank establishment. 2. Mitigation banks shall be sited in locations which minimise the probability of potential conflicts with present.and future adjacent land uses. 3. The establishment of wetland mitigation banks shall not result in the loss of upland habitat which is especially valuable to wildlife in and of itself. Further, the establishment, operation and maintenance of wetland mitigation banks shall .not result in any uncompensated adverse impacts to existing wetlands. 5 4. Mitigation banks shall include buffer zones determined by DFG to be of appropriate width and character to protect wetland resource values from the effects of foreseeable future adjacent land uses.- The buffer zones will be designed to preclude disturbance to the most sensitive species inhabiting the bank. No wetland mitigation credits of any kind shall accrue from such buffer zones. 5. No uses shall be permitted kthin the bank sites that reduce the wetland acreages or significantly reduce habitat values within the bank sites. In addition, the DFC shall make every effort to limit land uses adjacent to established mitigation banks to those uses which are compatible with bank operations and, failing that, the DFC shall seek the provision of expanded buffer zones and other mitigation actions to assure that future noncompatible land uses do not result in a diminishment of wetland acreage or wetland habitat values in the bank. 6. Vetland mitigation banks shall contain. no less than 54 acres of newly created wetland habitat unless special circumstances varrant otherwise and then, following review by the affected region and the Environmental Services and Wildlife Management divisions, only with the Director's concurrence. The DFC strongly favors and shall encourage the establishment of a few relatively large banks to service an area rather than the development'of many small banks. 7. Following planning consultations with DFG personnel, the Bank- Developer of a proposed mitigation bank shall submit detailed construction and* management plans for the bank to the DPC . for review and approval. Rejected plans may be resubmitted following appropriate modification consistent with DFC recommendations. .6 S. Prior to any mitigation transactions, the -Bank Developer shall have entered into a management and operations agreement with the DFD which shall fully describe the specific requirements of bank management, operations, maintenance, and monitoring, including the intended habitat to be established on the bank site. 9. Wetland mitigation banks shall not be qualified to engage in any mitigation transactions until DFC personnel have determined that the planned vetland habitat, as specified in the management and operations agreement, has become established on at least 50 contiguous acres of the bank or throughout the entire bank if the bank is less than 50 acres in size. 10. The DFC shall evaluate existing, if any, wetland acreage and habitat values present on each bank site prior to the initiation of vetland creation efforts. The DFC shall monitor the construction of each bank to assure adherence to design specifications. Following the establishment . of wetland habitat, the DFC shall inspect each bank site to determine the net increases in.vetland acreage and wetland habitat values which have resulted from these efforts. The net increase in wetland acreage and wetland habitat values, shall be available to compensate for unavoidable negative impacts to wetland resources only in so far as such use is consistent with the other requirements set forth in these guidelines. The habitat evaluation process used by the DFC to determine habitat values shall be a modified version of the: Habitat Evaluation Procedure developed by the U.S. Fish and Wildlife Service except that the process will not employ species models and will include assumptions designed to ensure compatibility with these guidelines. The bank developer, lead agency and appropriate federal agencies may be represented during the bank site habitat evaluation processes described above. 11. The DFG shall accept the use of only those mitigation banks which it has first inspected in the field and for which it has calculated the net acreage and habitat value credits available for use, established that maintenance, operation and monitoring are adequate to achieve and maintain optimum habitat quality, and determined that funding and other factors necessary to ensure operation and maintenance in perpetuity are in place. 12. Prior to the initiation of bank transactions involving Project Proponents, title to privately held mitigation bank land shall be encumbered by a permanent conservation easement, in favor of the DFG, or a non-profit conservation organization acceptable to the DFG, that runs with the property in perpetuity and is senior to all other liens or encumbrances. 13. The bank must be supplied with a firm (guaranteed) and permanent source of water of adequate quantity and quality necessary to permanently support continuance of optimum wetland acreage and maximized habitat values. 14. The DFG shall monitor and evaluate the effectiveness of the management program based upon the habitat objectives defined in the operations agreement specified in item 8 above in order to assure that these objectives are achieved. Such monitoring shall occur annually for the first five years following bank qualification and periodically thereafter. These assessments can result in adjustments being made to the number of credits left in a bank and/or operational changes. The Bank Developer or his successor(s) shall be responsible for implementing recommended operational changes to the satisfaction of the DFG. i 15. The establishment of all mitigation banks shall be consistent with State and federal laws and DFG policies. 16. The Bank Developer shall reimburse the DFG for all costs incurred during the establishment of a wetland mitigation bank, the annual monitoring required during the first five years following bank establishment, and the periodic monitoring thereafter. RANK TERNIMT12l 1. - At the time all of the mitigation -credits in the bank are expended or in the case of failure to operate and maintain the bank pursuant to the operations and maintenance agreement with the DF+C, title to the entire bank property shall be conveyed to tho DFC or another natural resource oriented agency or nonprofit conservation organisation acceptable r . to the DFG. Subsequent owners shall be subject to the same land use constraints involving the bank property as the Bank Developer. 2. A Bank Developer may withdraw his property as a mitigation bank at any time within a two-year period following the initial introduction of water onto the bank site even if wetland vegetation has become established thereon, and return it to its prior use provided that: (a) no mitigation credits developed in the bank have been used to compensate the loss of wetland habitat; (b) the wetland acreage and habitat values of any wetland habitat existing on the bank site prior to.the initiation-of effotts• to develop the site shall be preserved in a condition at least equal to that prior to initiation of bank establishment efforts;* (c) all costs incurred by the DFG during the bank establishment, qualification and monitoring processes shall be paid to the DFG by the Bank Developer prior to his 9 release from the operations and maintenance agreement with the DFG; and (d) such bank termination and subsequent habitat conversion, if any, are consistent with local, State and federal laws and regulations. 3. A Bank Developer say withdraw his property as a mitigation bank at any time after the two-year initial period described in item 2 above. However, after the two-year initial period, all four conditions (a through d) specified in item 2 above must be met and additionally the Bank Developer must offer to sell the mitigation bank property to the DFG and other conservation oriented agencies and organizations acceptable to the DFG. In the event that all appropriate conservation agencies and organizations decline to purchase the mitigation bank property, the Bank Developer may return the mitigation bank property to its former use. RANK EMETAL QUALIFICATIONS All mitigation banks and their lands must be prequalified in order to engage in bank transactions with the DFG. The following requirements have been established to ensure the proper development, operation and maintenance in perpetuity of replacement wetland habitat. 1. All qualified Bank Developers must be either a legal public or private entity duly empowered to engage in mitigation bank activities. 2. All private developers of qualified mitigation banks must provide sufficient endo+nuent funds (cash, letters of credit or other acceptable, means) to the DFG or its designees to fully ensure the perpetual operation and maintenance of bank lands transferred to thea as a result of bank termination or default. If the Bank Developer is a public entity, that entity will provide the DFG with sufficient assurances to enable the DFG to conclude that the entity will discharge its operation and maintenance responsibilities in perpetuity. PROJECT QUALIFICATION Project impacts upon wetland habitat may be offset at a qualified wetland mitigation bank only if all of the following conditions have been met: • 1. The DFG has concluded, based upon the final project.design, that the project design has incorporated adequate environmental safeguards. 2. The DFC has determined that on-site mitigation is either infeasible.or undesirable. from a resource protection perspective. 3. The Project Proponent has provided evidence to the satisfaction of the DFG that there is no feasible or suitable mitigation site closer to the point of impact than the subject bank and that there is no feasible mitigation option superior. to the use of the bank, 4. The project is located no more than 40 aerial miles from the bank site and the DFG has concluded that a lesser distance is not needed to assure effective compensation for affected species. However, consistent with the DFG's position regarding the mitigation of impacts to wetlands located in the San Francisco Bay Area, all impacts to wetlands located south of the Bay Bridge must be mitigated south of that bridge and all impacts to wetlands north of the Bay Bridge must be mitigated north of that bridge. 5. The Project Proponent has received written statements from all permitting agencies that use of the selected mitigation bank is acceptable to each and the DFG has received copies thereof. In those instances where authorization is required pursuant to the Federal Clean Water Act, the DFG shall coordinate with the O.S. Fish and Wildlife Service and other appropriate federal agencies before committing to accept the use of a mitigation bank to offset project impacts. I1 { 6. In determining the eligibility of a project to utilize a mitigation bank and in determining the required acreage and habitat credits necessary to compensate project impacts, the DFG shall consult with all involved resource conservation agencies and permitting authorities. USE OF SAN[ The following criteria shall be complied with when a mitigation bank is used to offset project impacts to wetlands: General Conditions 1. Use of a aitigation bank out be consistent with State and. federal laws and DFG policies. 2. Mitigation shall be in-kind wetland habitat unless the Director determines, on a case-by-case basis, that the resource is better served by out-of-kind wetland habitat. 3. Project Proponents shall be required to purchase from the bank not less than 200 percent of the wetland acreage and votland habitat values being lost to the project. The wetland acreage expended to offset project impacts together with all current and future habitat values associated therewith shall be immediately and permanently retired and no longer available for mitigation purposes. 4. Prior to the purchase of mitigation credits by a Project Proponent, the wetland acreage, wetland habitat values and wetland habitat type{s} which will be lost or degraded as a result of the project, based upon the permitted project design, shall be determined to the satisfaction of the DFG through the use of the habitat evaluation methodology described in 12 item 10 under the Bank Establishment section. The Project Proponent, the lead agency and appropriate federal agencies may be represented during this evaluation process. S. No wetland acreage or wetland habitat values present on the bank site prior to the creation of additional wetland habitat on the site shall be counted as mitigation credits available for offsetting project losses, nor shall any mitigation credits be derived from incidental increases in habitat valise occurring on lands adjacent to the bank, nor wetland mitigation credits from buffer zones required to protect vetland habitat values pursuant to item 4 under the Bank Establishment section of those guidelines. 6. The DFC shall maintain a current account of all available and expended wetland habitat credits in each bank. 7. The DFC shall not be responsible ,for conducting the actual administration, operation or maintenance on mitigation banks established by any other entities except as may result from actions taken pursuant to item 12 under the Bank Establishment section of these guidelines. E S. The DFC shall not permit (in the_ case of DFC-owned banks) or accept the use of a mitigation bank to compensate the wetland impacts resulting from a project: for which the DFC has officially recommended the denial of requisite permits. 13 Cost of Credits -in Wetland Mitigation Banks Owned by the DFG The purchase price of the mitigation credits shall be at least sufficient to offset all of the prorate costs associated with bank establishment, perpetual operation and maintenance of the acreage and habitat values purchased and shall include but not be limited to the following: a. Fair-market value of the mitigation bank land based .upon either its use prior to its conversion to wetland habitat or its current value whichever is greater. b. Cost of wetland acquisition process, planning, engineering design and development adjusted to reflect the effect of inflation on labor-intensive construction activities which has occurred between the year in which the wetland acreage and wetland habitat values were created at the bank and the year in which they are sold to the Project Proponent. c. Accvaulated administration, operation and maintenance costs between the year in which the wetland acreage and wetland habitat values were created and the year in which resulting credits are sold to the Project Proponent. d. The cost of perpetual administration, operation and maintenance of the wetland acreage and wetland habitat values purchased adjusted to account for the effect of inflation. 14 e. Accumulated and projected future costs of taxes, assessments, insurance, water supplies and other such expenses as say bo necessary to operate and maintain the mitigation bank. All costs, adjusted to reflect the effect of, inflation, associated with initial and ongoing periodic bank site habitat evaluations and monitoring. f. Any other costs relevant to a determination of the cost of preserving the wetlands in perpetuity. ADMINISTRATION The establishment and use of wetland mitigation banks will be closely coordinated among the involved Region, the Bnvironmental Services Division. (ESD) , the Wildlife Management Division MM) , the Natural Heritage Division (NHD) , the Legal Advisor and the Directorate. Some situations may occur where coordination may also be required with other DFG units and the Wildlife Conservation Board (WCB) . The Department unit which first becomes- involved in the establishment of a mitigation bank shall immediately notify the other responsible units. All units will maintain close communications during the site selection, design, and management and operations agreement preparation stages of bank development. Prior to seeking the Director's approval for a given bank, the Regional Manager, Chief ESD and Chief %(D must concur with all aspects of the proposed bank. The following is a delegation of responsibility to the principal Department units involved: 1. Inspection of bank site and determination of existing wetland acreage and habitat values • Region (lead) , ESD, WMD. 1 S 2. Inspection of completed bank for compliance with approved design plan - Region (lead) , ESD. WM. 3. Inspection of completed boric and determination of newly created wetland acreage and habitat values - Region (lead) , ESD. WMD. 4. Formulation of operations agreement - ESD (co-lead) , WMD (co-lead). Region, Legal Advisor, Contract Section. 5. The securing of performance letters of credit - Region (lead) , ESD, Legal Advisor, MM. 6. Establisbment and operation of computer database for bank transactions - NHD. 7. Review of project impacts and determination of acreage and habitat units in the bank needed to. offset wetland losses - Region (lead) , ESD. S. Communication of bank transactions to MW - ESD. 9. Seai-annual field inspections of banks to assure compliance with these guidelines and the operating agreement and to communicate results to computer database in WM - Region (lead) , MSD. 10. Coordination throughout the process with State and federal permitting and resource agencies - Region (lead) , ESD. 11. Coordination throughout the process with the local permitting agencies . Region (lead) . ESD. _ ._ -. 12. The transfer of bank land title to DFC.et al. - WMD (lead) , Region, ESD, MM, Legal Advisor, WCB. 13. The DFG shall consult with the WCB concerning banks involving property right transfers and the State Lands Commission for determination of State Public Trust interests - Legal Advisor (lead) , WCB.