Wetland Resource Group Meeting March 9 1993

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kinds of wetlands. So we come away with the conviction that Let me make another point about the problems I see with the federal regulatory program. It is singularly focused on a valuation or classification mechanism is the key to impos- into the wetlands regulatory wetlands. If the real charge.of responsible land utilization in- market -driven resources and development is to impact the natural environment to the scheme. Let me tell you a little bit about our company, so you can least extent possible, then the focus on wetlands alone is understand that I don't speak totally from lack of experience We developing communities in Florida, Georgia, inappropriate. Most state and local governments have a larger matrix of here. are North Carolina. Texas, and California, and I have obtained notions that they look at when they talk about development. case that in a number of examples, wetlands permits in every one of those jurisdictions. I have in a variety of venues with a variety of the EPA I can make a compelling it is more appropriate to impact this particular wetland here operated offices and the Corps offices, and I think I can say that my than it is to impact this upland immediately adjacent on the environmental importance to the eco- experiences have,-rtot been all that good, although we have basis of their relative system of that region. yet to fail to get a permit. There are several things that would make the process not And yet, the federal government is focusing on this wet - doing it with a rigid sequencing methodology. The only more workable, but would accomplish what I think the of §404 was at the outset. To the land, and system would work much, much better if I could walk into fundamental objective extent that §404 contemplated wetlands regulation at all, it's the agency and bring in to it a holistic approach for its that acknowledged the validity of the upland a resource management tool. But as it is applied and imple- review: one habitat on this side, the wetland's contribution on that side, mented through sequencing, it has less to do with how we can maximize the return on this particular resource and more the development plan superimposed over the whole system, to do with land -use planning. integrated with the compensatory mitigation. If the regulators divorce themselves from the process of A valuation mechanism absolutely assumes that there are resources that are better utilized for avoidance, minimization, and the rest, and take a look at the certain types of wetland development or agriculture than for preservation. I don't whole plan and ask, is there net environmental benefit here as opposed to no net loss, you would have a system that has think there is anything inappropriate with that idea, particu- the vast majority of wetlands are a chance for succeeding in creating the kinds of benefits that larly since in this country, owned by private individuals. But, if I had the ability to refer all of us are trying to achieve, not only from the economic but from the resource management and envi- gulatory scheme that to a valuation mechanism and a reallowed me to look at a piece of real estate that I was going point of view, ronmental protection point of view. is that by to buy, and to know with some degree of certainty and The difficulty with such a system government, its very nature, is suspect of anything that seems to surrender predictability what that resource was valued at in the context in- measure of control and trust to market conditions. The of a wetlands regulatory scheme, I could make a very decision whether or not I want to pursue that some only response government seems to be able to come up with formed about as an investment alternative for development. as increasingly higher is more regulation, more bureaucracy, more cost, less pre- dictability, and, ultimately, more cost to you and I who want If you set up a scheme that extracts penalties with the higher value wetlands as a cost of doing in I can you there is no land to own a home. You heard in the opening remarks that many in the envi- business that area, promise developer in the United States that will seek to develop on ronmental agenda have some suspicion about the ability to do and I will tell you unqualifiedly that EPA pristine or high- quality wetlands. The reality is that the development industry will focus its energies on finding those valuations, yet. and the Corps of Engineers are doing valuation assessments every that is issued. Valuation assesment, ulti- resources that have the least path of resistance. If I could that a wetland on a scale of one to 10, on permit mately, is the lynchpin which tells exactly what impacts know with assurance one being the lowest, IO being the highest, was a one -value I knew I could go into that wetland area and you're going to be able to have, and what you're going to do about the impacts — the regulatory agencies are all driven wetland and develop it without the necessity or the rigors of sequencing, by some methodology for valuing those resources. They do it when they go out to do an advance identification. They're practicable alternatives, or project purpose, my resources effectively valuing resources. In fact, they will draw a map, would be targeted there. 'My industry, as a whole — I can't speak for everybody, and the red zone is high -value wetlands, the green zone is low wetlands, and the yellow zone is in- between but certainly I can speak for my company — is perfectly willing to fully compensate for all the wetland impacts that the -value wetlands. So they are doing the exact thing that many in their do with enough we cause. And by that I suggest that a valuation mechanism industry claim that they cannot do, or cannot that required compensation as a condition of going forward, irrespective of the value of the resource being impacted, scientific precision. Furthermore, the fact that valuation systems are difficult fundamental would accomplish more effective resource management. here to establish and administer does not change the reality that it is the right way to go if we are serious about That is a system that says we have the opportunity to not only allow this individual to utilize his capital to develop, resource management and not trying to simply have an initiative that draws a line in the sand and says you can't but, also by forcing him to compensate the environment, to is now a degraded wetland resources and to build anywhere within these parameters. If we want to go convert what elevate it to a higher value resource. This kind of system incentives in the right place and serve both the the other way, then valuation, in my judgment. is the ly nchpin to that undertaking. • would put the environment and the developer. JANUARY /FEBRUARY 1993 9