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<br />. 30 . <br /> <br />The land and Water Fund af the Rackies <br /> <br /> <br />@ <br /> <br />Moving Blue Mesa's Marketable Yield: A Myth <br /> <br />1. Veto Authority under Section 404 of the Clean Water Act <br /> <br />A trans-mountain diversion project almost certainly would require a Section <br />404 permit by the Army Corps of Engineers (Corps) pursuant to the Clean Water Act <br />(CWA).'" Constructing a dam or building a pipeline that impacts a stream nearly <br />always requires such a permit.'" A permit for discharging dredged or fill material <br />into the nation's waters may be obtained only if there is no feasible alternative that <br />would be less damaging to the environment.'" <br /> <br />The U.S. Environmental Protection Agency (EPA) is heavily involved in the <br />permit process, too. An applicant for a permit must show compliance with the EPA <br />guidelines, under CWA S 404(b)(1), which include: (1) Avoiding impacts to aquatic <br />resources and wetlands where practicable (2) minimizing potential impacts, and (3) <br />providing compensation for any unavoidable impacts.'" Under S 404(c), the EPA <br />reviews all permits issued by the Corps, and has the authority to overrule a Corps <br />decision if it "will have an unacceptable adverse effect on municipal water supplies, <br />shellfish beds and fishery areas (including spawning and breeding areas), wildlife, or <br />recreational areas."'" Though rarely used, this provision of the act grants the EPA <br />tremendous veto power. no <br /> <br />The EPA's veto authority is perhaps most significant with respect to the sec- <br />tion 404(b)(1) mandate of considering less-damaging alternatives to the proposed <br />action. These guidelines require not only that less-damaging alternatives be exam- <br />ined, but dictate that the Corps may only issue a permit for the least damaging practi- <br />cable alternative. '" <br /> <br />The proposed Two Forks Project, an ill-fated dam proposal on Colorado's Front <br />Range, supplies an excellent example of the reach of EPA's veto power, and illustrates <br />the complex interplay of environmental laws and government entities when section <br />404 is triggered. When it was all over, the Two Forks controversy spanned several <br />decades, cost more than $50 million, and ultimately was defeated because the EPA <br />determined that there were potential alternatives to the dam proposal that would be <br />far less damaging to the environment. no The Two Forks story hints at the significant <br />challenges any proposal to divert Gunnison Basin water to the Front Range likely <br />would face. <br /> <br />In the case of Two Forks, the Denver Water Board had held water rights since <br />1902 to construct a dam in the river valley downstream from the confluence of the <br />South Platte River and the North Fork of the South Platte."" Denver also had a dam <br />construction right obtained from the Forest Service in 1931. ,"u But the most impor- <br />tant authorization needed to construct the dam was a S 404 permit. Although the <br />EPA concluded independently that Two Forks could not be permitted under S 404 <br />because it didn't satisfy EPA guidelines, the Corps thereafter announced that it would <br />issue the permit because it found the environmental damage could be mitigated.'" <br />The EPA, however, had the final say, and that was a blunt denial.'" <br /> <br />The EPA determined that mitigation was simply not enough to comply with <br />the demanding guidelines of S 404.'"' Noting that the dam would have flooded more <br />