[Federal Register: March 9, 2000 (Volume 65, Number 47)] [Notices] [Page 12817-12899] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr09mr00-188] [[Page 12817]] ----------------------------------------------------------------------- Part III Department of Defense ----------------------------------------------------------------------- Department of the Army, Corps of Engineers Final Notice of Issuance and Modification of Nationwide Permits; Notice [[Page 12818]] ----------------------------------------------------------------------- DEPARTMENT OF DEFENSE Department of the Army, Corps of Engineers Final Notice of Issuance and Modification of Nationwide Permits AGENCY: Army Corps of Engineers, DoD. ACTION: Final notice. ----------------------------------------------------------------------- SUMMARY: The Corps of Engineers (Corps) is issuing 5 new Nationwide Permits (NWPs) and modifying 6 existing NWPs to replace NWP 26 which expires on June 5, 2000. The Corps is also modifying nine NWP general conditions and adding two new NWP general conditions. The new NWP general conditions will increase protection of designated critical resource waters and waters of the United States within 100-year floodplains. In December 1996, the Corps decided to replace NWP 26, which authorizes discharges of dredged or fill material into headwaters and isolated waters of the United States, with activity-specific NWPs. The new and modified NWPs authorize many of the same activities that NWP 26 authorized, but the new and modified NWPs are activity-specific, with terms and conditions to ensure that these activities result in minimal adverse effects on the aquatic environment. The new and modified NWPs will substantially increase protection of the aquatic environment, while efficiently authorizing activities with minimal adverse effects on the aquatic environment. The maximum acreage limits of most of the new and modified NWPs is \1/2\ acre. Most of the new and modified NWPs require notification to the district engineer for activities that result in the loss of greater than \1/10\ acre of waters of the United States. This notice also constitutes the Corps application to States, Tribes, and the Environmental Protection Agency (EPA) for Section 401 water quality certification (WQC) and Coastal Zone Management Act (CZMA) consistency determinations. These agencies have 90 days to determine if the new and modified NWPs meet state or Tribal water quality standards and are consistent with state coastal zone management plans. DATES: The new and modified NWPs and general conditions will become effective on June 5, 2000. The expiration date for NWP 26 is June 5, 2000. ADDRESSES: HQUSACE, ATTN: CECW-OR, 20 Massachusetts Avenue, NW, Washington, DC 20314-1000. FOR FURTHER INFORMATION CONTACT: Mr. David Olson or Mr. Sam Collinson at (202) 761-0199 or access the Corps of Engineers Regulatory Home Page at: http://www.usace.army.mil/inet/functions/cw/cecwo/reg/. SUPPLEMENTARY INFORMATION: Background In the December 13, 1996, issue of the Federal Register (61 FR 65874) the Corps reissued NWP 26 for a period of two years and announced its intention to replace NWP 26 with activity-specific NWPs. NWP 26 authorizes discharges of dredged or fill material into headwaters and isolated waters, provided the discharge does not result in the loss of greater than 3 acres of waters of the United States or 500 linear feet of stream bed. Headwaters are non-tidal streams, lakes, and impoundments that are part of a surface tributary system to interstate or navigable waters of the United States with an average annual flow of less than 5 cubic feet per second. Isolated waters are non-tidal waters of the United States that are not part of a surface tributary system to interstate or navigable waters and are not adjacent to such surface tributary systems to interstate or navigable waters. In the July 1, 1998, issue of the Federal Register (63 FR 36040) the Corps published its initial proposal to replace NWP 26, including 6 new NWPs, modifying 6 existing NWPs, modifying 6 NWP general conditions, and adding one new NWP general condition. In the October 14, 1998, issue of the Federal Register (63 FR 55095), the Corps published a supplementary proposal to limit the use of the proposed new and modified NWPs in 100-year floodplains, impaired waters, and designated critical resource waters. In the October 14, 1998, Federal Register notice, the Corps also announced the withdrawal of the proposed NWP for master planned development activities and the extension of the expiration date of NWP 26 to September 15, 1999. The Corps also announced, in the October 14, 1998, Federal Register notice, its intent to solicit additional comments on the proposed new and modified NWPs and regional conditions proposed by Corps districts. As a result of the comments received in response to the July 1, 1998, and October 14, 1998, Federal Register notices, the Corps made changes to the proposed NWPs and general conditions. The Corps also modified and reproposed the three new NWP general conditions to limit the use of NWPs in 100-year floodplains, impaired waters, and designated critical resource waters. The draft NWPs and general conditions were published in the July 21, 1999, issue of the Federal Register (64 FR 39252) for a 45-day comment period. Concurrent with this Federal Register notice, Corps districts proposed the latest drafts of their proposed regional conditions for the new and modified NWPs. In the September 3, 1999, issue of the Federal Register (64 FR 48386), the Corps announced that the comment period for the draft NWPs and general conditions was extended an additional 30 days to provide a 75-day comment period. The comment period for the July 21, 1999, Federal Register notice ended on October 7, 1999. In the September 3, 1999, Federal Register notice, the Corps also announced that the expiration date of NWP 26 was extended to January 5, 2000. As a result of the number of substantial comments received in response to the July 21, 1999, Federal Register notice and the need for additional time to review those comments and develop the final NWPs and general conditions, the Corps issued another Federal Register notice on December 15, 1999 (64 FR 69994). This Federal Register notice announced a revised expiration date for NWP 26 and the process for accepting NWP 26 PCNs. The expiration date for NWP 26 was extended to April 14, 2000. Since the schedule published in the December 15, 1999, Federal Register notice has changed, we are extending the expiration date of NWP 26 to June 5, 2000. NWP 26 PCNs submitted on or before March 9, 2000, (whether required or not) will be reviewed under the existing terms and conditions of NWPs. If those activities are authorized by NWP 26, their authorizations will be valid until February 11, 2002. If the activity is under construction or under contract prior to February 11, 2002, the permittee will have 12 additional months to complete the authorized activity. NWP 26 PCNs for activities that require notification which are submitted after March 9, 2000, will be reviewed under the new and modified NWPs or other types of DA authorization, such as individual permits. NWP 26 activities that do not require a PCN are authorized by NWP 26 until June 5, 2000. For those NWP 26 activities that do not require notification, the permittee has 12 months to complete the work if construction begins or is under contract before June 5, 2000. The terms and limits of the new and modified NWPs are intended to authorize activities that have minimal adverse effects on the aquatic environment, individually and cumulatively. Most of the new NWPs authorize activities in non-tidal waters of the United States, excluding non-tidal wetlands adjacent to tidal waters. The [[Page 12819]] acreage limit for most of the new and modified NWPs is \1/2\ acre. For the new and modified NWPs, the Corps has established pre-construction notification (PCN) thresholds to ensure that any activity that potentially may have more than minimal adverse effects on the aquatic environment is reviewed by a district engineer on a case-by-case basis. Most of the new NWPs require submission of a PCN for discharges of dredged or fill material resulting in the loss of greater than \1/10\ acre of waters of the United States. Regional conditions may be added to the NWPs by division engineers to lower notification thresholds. The new and modified NWPs issued today will become effective on June 5, 2000. This Federal Register notice begins the 90-day Clean Water Act Section 401 water quality certification (WQC) and Coastal Zone Management Act (CZMA) consistency determination processes. Because of the changes to the proposed new and modified NWPs, including the general conditions, we have increased the normal 60-day WQC and CZMA consistency determination processes to 90 days. During this 90-day period, Corps divisions and districts will finalize their regional conditions for the new and modified NWPs. Discussion of Public Comments I. Overview In response to the July 21, 1999, Federal Register notice, we received over 1,700 comments. We reviewed and fully considered all of these comments. Most of the commenters expressed opposition to the proposed NWPs, but a few commenters indicated support for these NWPs. One commenter stated that NWP 26 should be retained without any changes. A number of commenters support the current NWP program, because data collected by the Corps during Fiscal Year (FY) 1997 indicates that there are net gains in aquatic resources because of the Corps mitigation requirements. These commenters indicated that this net gain demonstrates that the current NWP program results only in minimal adverse effects on the aquatic environment. After considering the comments received in response to the July 21, 1999, Federal Register notice, we have made several important changes to the new and modified NWPs. For most of these NWPs, we have established a \1/2\ acre limit. Notification to the district engineer will be required for most activities that result in the loss of greater than \1/10\ acre of waters of the United States. For NWPs 39, 40, 42, and 43, we have imposed a 300 linear foot limit for filling and excavating stream beds. We have also increased the notification review period to 45 days. We have revised nine general conditions and added two new general conditions. The new NWP general conditions limit activities in designated critical resource waters and fills in waters of the United States within 100-year floodplains. All above-grade fill under NWPs 29, 39, 40, 42, 43, and 44 is prohibited within the FEMA- mapped 100-year floodplain below the headwaters of any stream. Within the headwaters, above-grade fill is prohibited within the FEMA-mapped regulatory floodway, and any above-grade fill in the flood fringe must meet FEMA standards. These new restrictions on use of the NWPs will substantially increase the protection of the Nation's aquatic environment. These revised NWPs continue a trend by the Corps of Engineers of enhancing the protection of the aquatic environment through the NWP program. In 1977 the predecessor to NWP 26 authorized unlimited fill in headwaters and isolated waters without any notification of the Corps. In 1984 the Corps established a maximum project specific impact limit of 10 acres and a notification of the Corps for any impact greater than 1 acre. In 1996, we reduced these project specific limits to 3 acres maximum and \1/3\ acre for notification of the Corps. To further ensure that the NWP program properly protects the aquatic environment, the Corps is conducting a Programmatic Environmental Impact Statement, which will be completed in early 2001. To ensure full protection of endangered species, the Corps is formally consulting with the U.S. Fish and Wildlife Service and the National Marine Fisheries Service on the NWP program. All of these substantial improvements will increase costs to applicants to some degree and will increase the funding needed by the Corps to maintain our current level of service to the public. Based on a report prepared by the Corps Institute for Water Resources (IWR) in response to the Corps FY 2000 Appropriations Act, the changes to the NWP program announced today will increase direct costs for permit applicants by about $20 million per year. Further, based on the IWR report, the Corps would need about $6 million in additional funding to maintain current levels of service to the public. We believe the changes are necessary to ensure the statutory requirement that general permits, including NWPs, will have no more than minimal adverse effects on the aquatic environment. II. General Comments In the following discussion, where the comments and responses were the same as for the July 21, 1999, Federal Register notice, we referred to the July 21, 1999, Federal Register notice instead of repeating those responses. Many commenters objected to the proposed NWPs for the following reasons: (1) The proposed NWPs are too complex; (2) the proposed NWPs are contrary to the Congressional intent of Section 404(e) of the Clean Water Act; (3) the proposed NWPs are contrary to the Administration's 1993 Wetlands Plan, which states that Federal regulatory programs should be fair, flexible, and effective; (4) the proposed NWPs are contrary to the 1998 Clean Water Action Plan, which states that duplication between Federal, state, and local agencies and Tribal governments should be reduced wherever possible; (5) the conditions of these NWPs will cause many activities with minimal adverse effects on the aquatic environment to be processed as individual permits; and (6) these NWPs will result in unnecessary and costly burdens on the regulated public, increase delays, and increase the Corps workload without providing any benefits. We have reduced the complexity of these NWPs as much as possible by making the scope of applicable waters for most of the new NWPs the same and establishing similar PCN thresholds. In addition, we have eliminated the indexed acreage limits from NWPs 39 and 40 and established a \1/2\ acre limit for these NWPs. However, some complexity is unavoidable because different activities in waters of the United States do not have the same effects on the aquatic environment and each NWP must have different conditions to address those dissimilar impacts. The new and modified NWPs are conditioned to ensure that only those activities that have minimal adverse effects on the aquatic environment are authorized by these permits. The new and modified NWPs are not contrary to Section 404(e) of the Clean Water Act, because each NWP authorizes activities that are similar in nature, with terms and conditions to ensure that those NWPs authorize only activities with minimal adverse effects on the aquatic environment. These NWPs still provide an expedited authorization process when compared to the standard permit process, because the district engineer must respond to the applicant within 45 days of the receipt date for a complete preconstruction [[Page 12820]] notification (PCN). The 45-day PCN review period is shorter than the average evaluation time for individual permits, which was 100 days in FY 1999. The new and modified NWPs comply with the President's 1993 Wetlands Plan, by allowing the Corps regulatory program to continue to provide effective protection of wetlands and other aquatic resources and avoid unnecessary impacts to private property, the regulated public, and the aquatic environment. The new and modified NWPs, including the new and modified general conditions, will more clearly address individual and cumulative adverse effects on the aquatic environment and ensure that those adverse effects are minimal. The new and modified NWPs address specific applicant group needs and provide more predictability and consistency to the regulated public. During the development of these NWPs, we recognized the concerns of the natural resource agencies and environmental interest groups for potential adverse effects on the aquatic environment resulting from activities authorized by these NWPs and the regulated public's need for certainty and flexibility in the NWP program. Although certain aspects of the new and modified NWPs duplicate existing Federal, state, and local agency programs, such duplication is not contrary to the 1998 Clean Water Action Plan because it provides additional protection for the aquatic environment. While some state and local governments may address some of the same issues that are addressed by the NWPs and general conditions, there are many areas of the country where those issues are not addressed. Therefore, we believe it is necessary to add certain conditions to the NWPs to address potential adverse effects to the aquatic environment. For example, General Condition 9 requires a water quality management plan for certain NWP activities, unless the state or Tribal Section 401 agency requires an adequate water quality management plan. If the state or Tribe does not adequately address impacts to water quality through its water quality certification process, the district engineer can require additional measures such as stormwater management facilities and vegetated buffers to protect water quality. There are circumstances where the Corps needs to consider more stringent NWP requirements to ensure that the adverse effects to the aquatic environment are minimal, individually and cumulatively. We agree that the terms and conditions of the new and modified NWPs may cause some activities with minimal adverse effects on the aquatic environment to be subject to the individual permit process. It is important to note that aquatic resource functions and values differ greatly across the country. When developing NWPs that have national applicability, there will be many parts of the country where the terms and limits of the NWPs will not authorize some activities that have minimal adverse effects on the aquatic environment. In these areas, district engineers can issue regional general permits in the future to provide expedited authorization for categories of activities with minimal adverse effects on the aquatic environment. However, for six months after the publication date of the new and modified NWPs, district engineers will not issue regional general permits or letters of permission (LOPs) that explicitly authorize the same activities as the new and modified NWPs. This six month period will allow Corps districts to assess how effectively the new and modified NWPs authorize activities with minimal adverse effects on the aquatic environment, individually and cumulatively. As required by the Energy and Water Development Appropriations Act, 2000, we have conducted a study of the workload and compliance costs of the NWPs, including the new general conditions, proposed in the July 21, 1999, Federal Register notice. The report for this study was finalized in January 2000. This report is available on the Internet at the Corps headquarters regulatory home page. The workload and compliance costs study determined that the proposal published in the July 21, 1999, Federal Register would increase the number of standard individual permit applications received by the Corps by 4,429 per year. This and other workload increases would result in direct compliance costs incurred by the regulated public by an estimated $46 million annually. The study also examined indirect compliance costs (i.e., opportunity costs) of the July 21, 1999, proposal. The indirect compliance costs include the opportunity costs that result from increases in permit processing times and an estimate of foregone development value caused by the vegetated buffer requirement. The study estimates that the processing times for standard permits would steadily increase each year if the July 21, 1999, proposal were to be implemented and Corps budget resources are not increased. Within five years, the average standard permit processing time and number of backlogged permit applications would increase three to four times the levels measured in FY 1998. The study also examined an alternative replacement NWP package that included lowering the acreage limit of the new and modified NWPs to \1/ 2\ acre and withdrawing the three proposed new NWP general conditions. The alternative replacement NWP package would result in 40% fewer standard permit applications and 30% less direct compliance costs than the July 21, 1999, proposal would. After five years, the standard permit processing times and permit application backlog would be approximately \1/2\ of that estimated for the proposal published in the July 21, 1999, Federal Register. Many commenters objected to the Corps statement in the July 21, 1999, Federal Register notice that NWPs are optional permits, and that if they do not want to comply with the terms and conditions of the NWPs, then they can request an individual permit. Numerous commenters indicated that the new and modified NWPs are likely to result in decreased protection of the aquatic environment because of the higher numbers of individual permits and a greater workload for the Corps that would result if these NWPs were implemented as proposed. Some commenters also stated that the new and modified NWPs would also result in less protection of the aquatic environment because project proponents would have less incentive to build projects with smaller impacts to aquatic resources due to the strict acreage limits, notification requirements, and conditions. In contrast, one commenter said that developers will modify their projects to comply with the new and modified NWPs. Another commenter said that the costs to the Corps and regulated public that are imposed by the new and modified NWPs will be offset by the additional environmental protection provided by those NWPs. NWPs provide an expedited Corps permit process for activities that have minimal adverse effects on the aquatic environment, individually and cumulatively. The NWPs are conditioned to ensure that only activities with minimal adverse effects are authorized. If a prospective permittee cannot comply with all of the terms and conditions of the NWPs, then he or she can request another form of Department of the Army (DA) authorization, such as a regional general permit or a standard individual permit. [[Page 12821]] We believe that the terms and conditions of the new and modified NWPs, including the \1/2\ acre limit and \1/10\ acre PCN threshold, are substantially more protective of the aquatic environment. The terms and conditions of these NWPs will ensure that only activities with minimal adverse effects on the aquatic environment are authorized by NWPs. Many project proponents will design their projects to comply with the \1/2\ acre limit so that they can qualify for an NWP and receive authorization more quickly than they could through the standard permit process. Many commenters stated that the new and modified NWPs would cause more than minimal adverse effects on the aquatic environment, individually and cumulatively. A few commenters said that the proposed NWPs do not comply with the requirement that general permits authorize only activities that are similar in nature. A number of commenters objected to the NWPs, because they provide no opportunity for the public to comment on individual projects. We have developed terms and conditions for the new and modified NWPs to ensure that they authorize only those activities that result in minimal individual or cumulative adverse effects on the aquatic environment. The new and modified NWPs have PCN thresholds that require prospective permittees to notify district engineers prior to conducting activities that could result in more than minimal adverse effects. Most of the new and modified NWPs require notification to district engineers for discharges resulting in the loss of greater than \1/10\ acre of waters of the United States. Division engineers can regionally condition these NWPs to lower notification thresholds, protect high value waters, or add additional restrictions to ensure that authorized activities result only in minimal adverse effects. District engineers will review PCNs on a case-by-case basis to determine if the adverse effects of the proposed work are minimal. If the adverse effects of a particular activity are more than minimal, the district engineer can either add conditions to the NWP authorization to ensure that the adverse effects on the aquatic environment are minimal or exercise discretionary authority to require an individual permit for the proposed work. Each of the new and modified NWPs authorizes activities that are similar in nature, in full compliance with section 404(e) of the Clean Water Act. This issue was discussed in detail in the July 21, 1999, Federal Register notice (64 FR 39263), and we have not changed our position on this matter. The intent of general permits, including NWPs, is to efficiently authorize activities that have minimal adverse effects on the aquatic environment. These activities are usually non-controversial, and would generate few or no comments from the public if they were subject to the standard permit process. Conducting full public interest reviews for activities with minimal adverse effects on the aquatic environment would substantially increase the Corps workload with little or no added value for the aquatic environment. A large number of commenters objected to the proposed NWPs, stating that the new and modified NWPs would result in significant wetland losses. Many commenters said that the new and modified NWPs would undermine the Administration's goal of net gain in wetland acreage stated in the Clean Water Action Plan. The new and modified NWPs will not result in significant losses of wetlands because they are conditioned to require prospective permittees to avoid and minimize impacts to waters of the United States on-site to the maximum extent practicable (see General Condition 19). In addition, the \1/2\ acre limit will substantially reduce wetland losses. Compensatory mitigation is often required for activities that require notification to the district engineer, which offset losses of wetlands and other aquatic habitats so that significant losses of wetlands do not occur as a result of the NWP program. As discussed in the July 21, 1999, Federal Register notice, the NWP program supports the Administration's goal of no net loss and is not contrary to the goals of the Clean Water Action Plan. Several commenters objected to the proposed NWPs, stating that the NWPs place too much reliance on the assertion of discretionary authority by district engineers. They said that this process does not provide adequate protection of the aquatic environment. Another commenter stated that the proposed NWPs are inappropriately based on the intent of the prospective permittee, instead of potential impacts to aquatic resources. One commenter indicated that there is too much overlap between the new and modified NWPs, which would be confusing to permit applicants. We disagree with these commenters, because the notification process allows case-by-case review of those activities that have the potential for more than minimal adverse effects on the aquatic environment. If the adverse effects of the proposed activity are more than minimal, then the district engineer can either add special conditions to the NWP authorization to ensure that the activity results in minimal adverse effects or exercise discretionary authority and require an individual permit. This process provides substantial protection for the aquatic environment. The new and modified NWPs are activity-specific to satisfy the requirements of section 404(e) of the Clean Water Act. These NWPs address impacts to the aquatic environment, because they are limited to certain types of waters and are conditioned to ensure that the adverse effects resulting from the authorized work are minimal, individually and cumulatively. Since these NWPs are activity-specific, they have to reflect specific categories of work that are conducted by individuals of certain occupations. Although there is some overlap between the activities authorized by the new and modified NWPs, such redundancy is necessary because our intent was to develop NWPs that authorize single and complete projects generally without having to resort to using multiple NWPs. For instance, NWP 39 authorizes most features of residential, commercial, or institutional developments, including road crossings and stormwater management facilities. Several commenters stated that the NWPs should only authorize activities that are water dependent. One of these commenters said that limiting the NWPs only to water dependent activities would result in a regulatory program that is easier to administer and result in wetland gains. Some commenters indicated that the proposed NWPs do not comply with the Section 404(b)(1) guidelines. We addressed the issue of water dependency in the preamble of the July 21, 1999, Federal Register notice and have not changed our position on this issue. The new and modified NWPs comply fully with the requirements for general permits in the Section 404(b)(1) guidelines (see 40 CFR 230.7). A few commenters opposed the new and modified NWPs because they said that the Corps has failed to define the term ``minimal effects'' in an understandable or meaningful way. Many commenters stated that the minimal adverse effects criterion for the NWPs is too subjective and that an assessment procedure that considers the size of impacts and quality of waters must be used instead. The term ``minimal effect'' as it is used in the context of general permits, [[Page 12822]] including NWPs, cannot be simply defined. The terms and conditions of general permits are established so that those permits authorize most activities that result in minimal adverse effects on the aquatic environment. Preconstruction notifications are an important mechanism to ensure compliance with the minimal adverse effect requirement. Case- specific special conditions and regional general conditions are also important for addressing site-specific and regional concerns for the aquatic environment and ensuring that the NWPs authorize only activities with minimal adverse effects. For activities that require notification to the district engineer, the minimal adverse effects determination requires consideration of site-specific factors, such as the quality of waters that may be impacted by the proposed work, the functions and values of those waters, the geographic setting of the proposed work, and other factors. The minimal adverse effects criterion must be subjective, due to the complexity of the analysis required. Two commenters suggested issuing the new NWPs with an expiration date of February 11, 2002, so that these NWPs will expire on the same day as the current NWPs. One commenter said that the new NWPs should be reevaluated when the current NWPs are reevaluated to determine if the use of all NWPs will result in more than minimal impacts. Two commenters recommended allowing NWP 26 to expire in January 2000 and not issuing the new NWPs until the next NWP reissuance in 2002. In the interim, individual permits would be required for activities that do not qualify for any of the current NWPs. The new and modified NWPs issued today will expire on June 5, 2005 (i.e., five years from their effective date). However, when the current NWPs are proposed for reissuance in 2002, the new and modified NWPs are likely to be part of that proposal, so that all of the NWPs will be on the same five year cycle for review. We do not agree with the third comment of the previous paragraph. Allowing NWP 26 to expire prior to the effective date of the new and modified NWPs would be unfair to the regulated public. Several commenters requested that the expiration date for NWP 26 should be extended to the expiration date of the current NWPs to ensure that NWP 26 is available until the effective date of the new and modified NWPs. We do not agree that it is necessary to extend the expiration date of NWP 26 to February 11, 2002, because the new and modified NWPs will become effective on June 5, 2000. Keeping NWP 26 in place while the new and modified NWPs are effective would be contrary to the Corps goal of replacing NWP 26 with activity-specific NWPs. One commenter suggested that the Corps clarify in this Federal Register notice that activities authorized by NWP 26 prior to the expiration date will continue to be authorized by NWP 26 for 12 months, provided the permittee has commenced construction or is under contract to commence construction. Another commenter recommended changing the 12-month grandfather provision for the NWPs to 24 months to provide adequate time for the completion of transportation projects. A permittee who receives an NWP 26 authorization prior to the expiration date will have up to 12 months to complete the authorized activity, provided the permittee commences construction, or is under contract to commence construction, before the date NWP 26 expires (see 33 CFR 330.6(b)). Except as indicated below, this provision applies to all NWP authorizations unless discretionary authority has been exercised on a case-by-case basis to modify, suspend, or revoke the NWP authorization in accordance with 33 CFR 330.4(e) and 33 CFR 330.5(c) or (d). We do not agree that it is necessary to increase the time period for the grandfathering provision from 12 months to 24 months. However, anyone who submitted a NWP 26 PCN on or before March 9, 2000, will have until February 11, 2003, to complete the work, provided the permittee receives an NWP 26 verification and has commenced construction or signed a construction contract prior to February 11, 2002. Jurisdictional Issues In response to the July 21, 1999, Federal Register notice, we received many comments concerning the scope of the Corps regulatory authority. These comments addressed excavation activities in waters of the United States and whether ephemeral streams, drainage ditches, and certain other categories of waterbodies are waters of the United States. Today's action addresses only NWPs, and in no way affects or alters the geographic or activities-based jurisdiction of the CWA nor is it intended to create new policy related to such jurisdiction. Many commenters said that the Corps is ignoring recent court decisions by including excavation activities as regulated activities in the text of the new and modified NWPs. These commenters cited the recent decision by the United States Court of Appeals for the District of Columbia which upheld the United States District Court for the District of Columbia's decision in the American Mining Congress v. Corps of Engineers lawsuit. This lawsuit challenged the Corps and EPA's revised definition of ``discharge of dredged material'' that was promulgated on August 25, 1993 (58 FR 45008). The revised definition of ``discharge of dredged material'' was overturned because the District Court held that the rule was outside of the agencies' statutory authority and contrary to the intent of Congress by asserting Clean Water Act jurisdiction over activities where the only discharge associated with the activity is ``incidental fallback.'' These commenters requested that the Corps remove all references to excavation activities from the new and modified NWPs. Two commenters stated that the reference to excavation activities in the new and modified NWPs requires project proponents to submit a notification to the Corps to determine if a Corps permit is required. One commenter said that the final NWPs should contain guidance that explains when excavation is a regulated activity. This commenter also recommended that the Corps clarify how excavation activities are included in the calculation of acreage loss of waters of the United States, to determine if a particular activity exceeds PCN thresholds or NWP acreage limits. The agencies revised their regulations on May 10, 1999, to respond to the results of the American Mining Congress lawsuit (64 FR 25120). It is important to recognize that not all excavation activities in waters of the United States are conducted so that only incidental fallback occurs. Excavation activities that result in the redeposit of dredged material into waters of the United States other than incidental fallback require a Section 404 permit. For example, excavated material may be temporarily stockpiled in waters of the United States before it is removed. Excavation activities that result only in discharges identified by the Corps as ``incidental fallback'' do not require a Section 404 permit. However, all excavation activities in Section 10 navigable waters require Corps permits under section 10 of the Rivers and Harbors Act of 1899. We have retained the excavation language in the new and modified NWPs and the definition of ``loss of waters of the United States'' because some excavation activities in Section 404 only waters of the United States result in discharges that still [[Page 12823]] require a Section 404 permit. These activities may be authorized by NWPs. NWPs issued under the Corps Section 10 authority also authorize excavation activities in navigable waters of the United States. No permit is required for excavation activities that do not meet the definition of discharge of dredged or fill material. As with any activity in waters of the United States, a landowner who is uncertain whether their activity needs a permit may contact the Corps. Two commenters noted that a statement in the July 21, 1999, Federal Register notice (64 FR 39276) concerning excavation activities is inaccurate and misleading. This statement said that excavation activities that result in the replacement of an aquatic area with dry land or change the bottom elevation of a waterbody require a Section 404 permit. These commenters said that this statement is actually the definition of ``fill material'' and that excavation cannot, by itself, result in the replacement of an aquatic area with dry land or change the bottom elevation of a waterbody. We agree that the statement in the Federal Register is inaccurate and have included clarification concerning when excavation activities require a Section 404 and/or a Section 10 permit from the Corps (see the above discussion). Excavation activities can change the bottom elevation of a waterbody by removing material and increasing the depth of the waterbody. Increasing the depth of a waterbody without associated discharges of dredged material other than incidental fallback does not require a Section 404 permit, but a Section 10 permit would be required if the activity is in Section 10 waters. However, an excavation activity that involves redeposit of dredged material into waters of the United States other than incidental fallback or involves the discharge of fill material that increases the bottom elevation of a waterbody or creates dry land requires a Section 404 permit (unless the activity qualifies for a Section 404(f) exemption). A number of commenters stated that the Corps does not have authority to regulate discharges into ephemeral streams because these watercourses, by definition, contain water only briefly and therefore are not waters of the United States. One of these commenters noted that 33 CFR 328.3 includes intermittent streams, but does not include ephemeral streams. A few commenters remarked that the Corps has not explained how an ordinary water mark can be present in a watercourse that has water flow only during a short time after rain events. These commenters assert that under ordinary circumstances, ephemeral watercourses do not have flowing water and cannot develop an ordinary high water mark (OHWM). They said that the Corps needs to define what constitutes an ``ordinary flow'' in an ephemeral watercourse that establishes an OHWM and what indicators are to be used to determine the presence and location of the OHWM. In addition, these commenters stated that the Corps cannot use peak flows and flood stages in lieu of ordinary flows and the Corps cannot use cut banks, shelving, or debris that is influenced only by peak flows or flooding. An ephemeral stream is a water of the United States, provided it has an OHWM. An ephemeral stream that does not have an OHWM is not a water of the United States. The frequency and duration at which water must be present to develop an OHWM has not been established for the Corps regulatory program. District engineers use their judgement on a case-by-case basis to determine whether an OHWM is present. The criteria used to identify an OHWM are listed in 33 CFR 328.3(e). Several commenters said that the Corps can only exercise jurisdictional authority over those ephemeral waters that are tributaries to waters of United States. These commenters said that the low frequency of water flows in these watercourses requires the Corps to define criteria and circumstances to determine whether ephemeral watercourses are tributaries to waters of the United States. Some commenters also stated that the Corps has not demonstrated how ephemeral streams have any nexus to interstate commerce or how discharges of dredged or fill material into those watercourses would affect interstate commerce. We agree that ephemeral streams that are tributary to other waters of the United States are also waters of the United States, as long as they possess an OHWM. The upstream limit of waters of the United States is the point where the OHWM is no longer perceptible (see 51 FR 41217). Ephemeral streams that are part of an interstate surface tributary system are waters of the United States, because they are an integral part of that surface tributary system, which supports interstate commerce. Three commenters stated that the proposed NWPs illegally assert jurisdiction over drainage ditches. Three commenters objected to a statement in the July 21, 1999, Federal Register notice that drainage ditches constructed in waters of the United States remain waters of the United States. These commenters said that if a drainage ditch converts a water of United States to a non-jurisdictional upland, the drainage ditch would not be a water of United States unless the area remains a wetland or other type of water of United States. These commenters also objected to the Corps assertion that non-tidal drainage ditches are waters of the United States if they extend the OHWM of an existing water of the United States. They said that this position is contrary to preamble to November 13, 1986, final rule for the Corps regulatory program (51 FR 41217) and that this change requires justification. One commenter requested that the Corps clarify whether the entire ditch becomes jurisdictional if the OHWM becomes extended within the ditch or whether jurisdiction is extended only to that portion of the ditch that develops an OHWM. Two commenters asked for clarification whether a drainage ditch that runs through a series of uplands and waters of the United States is jurisdictional. One commenter asked how an OHWM that develops within a drainage ditch would be determined to be due to ordinary flows, not peak flows or flooding. A drainage ditch constructed in a stream, wetland, or other water of the United States remains a water of the United States, provided an OHWM is still present. Since drainage ditches constructed in waters of the United States are constructed either by channelizing a stream or excavating the substrate to improve drainage, it is unlikely that the drainage ditches will become dry land unless the hydrology is removed by some other action. District engineers will determine, on a case-by- case basis, whether a particular area is a water of the United States. If the construction of a drainage ditch has legally converted the entire area to dry land, then the area drained is not a water of the United States, however, in most cases the drainage ditch would remain a water of the United States. The statement that non-tidal drainage ditches are waters of the United States if they extend the OHWM of an existing water of the United States is consistent with the final rule published in the November 13, 1986, Federal Register and applies to ditches constructed in waters or that connect waters. Nothing in the NWP notice was intended to change the November 13, 1986, Federal Register notice which states that drainage ditches constructed entirely in upland areas generally are not considered to be waters of the United States. Drainage ditches constructed in uplands that connect two waters of the United States may be considered waters of the United States if those ditches [[Page 12824]] constitute a surface water connection between those two waters of the United States. As previously noted, drainage ditches constructed entirely in uplands generally are not considered to be waters of the United States. District engineers will use the criteria at 33 CFR 328.3(e) to determine the presence and extent of an OHWM that may have developed in a drainage ditch. One commenter stated that the July 21, 1999, Federal Register notice incorrectly asserts jurisdiction over farmed wetlands by considering them to be waters of the United States and the Corps does not have authority to require permits for discharges into these areas. Another commenter said that the Corps does not have the authority to regulate activities in isolated wetlands. Two commenters indicated that the Corps contradicts its regulations concerning the construction and maintenance of stormwater management facilities. These commenters assert that the Corps regulations published in the November 13, 1986, Federal Register state that detention and first flush basins are generally not considered waters of the United States. One commenter requested clear definitions of the terms ``waters of the United States,'' ``navigable waters,'' and ``navigable waters of the United States.'' Farmed wetlands as defined under the Food Security Act are waters of the United States provided they meet the criteria at 33 CFR 328.3. In addition, those criteria further provide that prior converted croplands are not waters of the United States. Isolated wetlands are waters of the United States, provided they meet the criteria at 33 CFR 328.3. (Within the Fourth Circuit, isolated waters must be shown to have an actual connection to interstate or foreign commerce.) Stormwater management facilities constructed in waters of the United States may, under certain circumstances, be considered waters of the United States. The Corps has the discretion to determine on a case-by- case basis whether or not a particular waterbody is a water of the United States (see 51 FR 41217). The term ``waters of the United States'' is defined at 33 CFR 328.3 and refers to the Corps Section 404 jurisdiction. The term ``navigable waters'' as used in Section 404 of the Clean Water Act has the same meaning as ``waters of the United States.'' The term ``navigable waters of the United States'' is defined at 33 CFR part 329 and refers to the Corps Section 10 jurisdiction. None of these definitions were changed by the proposed NWPs or these final NWPs. Procedural Comments Many commenters stated that the Corps was required to hold public hearings on the draft NWPs proposed in the July 21, 1999, Federal Register notice. Some of these commenters said that the draft NWPs, especially the three proposed new NWP general conditions, represent a substantial change from the proposed NWPs published in the July 1, 1998, Federal Register notice and that these changes warrant an additional public hearing. Numerous commenters stated that the 75-day comment period was inadequate to thoroughly review and comment on the July 21, 1999, Federal Register notice. Some of these commenters said that the comment period should be extended because many districts did not post their draft regional conditions on their Internet home pages quickly enough. We believe that we have fully complied with the public hearing requirements of the Clean Water Act. After the publication of the July 1, 1998, Federal Register notice, public hearings on the proposed new and modified NWPs were held across the country, including a public hearing in Washington, DC on August 19, 1998. The proposal published in the July 21, 1999, Federal Register was a modification of the original July 1, 1998, proposal to replace NWP 26 with activity-specific NWPs. The 75-day comment period for the July 21, 1999, Federal Register notice provided adequate time for the public to review and comment on the draft NWPs. Within one week of the publication of the July 21, 1999, Federal Register notice, 31 out of 38 districts had posted their draft regional conditions on their Internet home pages, which allowed the public sufficient time to consider how the regional conditioning process affected the proposed new and modified NWPs. All Corps districts had posted their draft regional conditions on their Internet home pages by September 3, 1999. A large number of commenters said that the Corps has completely ignored the economic and workload implications of the new and modified NWPs and general conditions proposed in the July 21, 1999, Federal Register notice. These commenters indicated that the economic impacts of this proposal would be substantial. Many commenters stated that the new and modified NWPs should not be issued or implemented until an economic and workload analysis study is completed. As required by the Energy and Water Development Appropriations Act, 2000, we have prepared, through the Institute for Water Resources (IWR), a study of the workload and compliance costs that would be incurred by the July 21, 1999, proposal. The study report will be available on the Internet at the Corps headquarters regulatory home page. This study demonstrated that the proposal published in the July 21, 1999, Federal Register would result in substantial increases in workload and costs to the Corps and the regulated public. The proposed new and modified NWPs, including the three proposed general conditions, would result in a 50% increase in the number of standard permit applications received by the Corps each year. The proposed new and modified NWP package would increase the Corps costs for processing permit applications at the current levels of service by $11.5 million annually, nearly a 15% increase over FY 1998 program funding. In addition, the July 21, 1999, proposal would also increase the direct compliance costs incurred by the regulated public by $46 million annually. In contrast, the modifications to the new and modified NWPs issued today (i.e., the \1/2\ acre limit and the revised floodplain condition) would result in impacts very similar to the IWR estimate for a \1/2\ acre approach to the NWPs. That IWR estimate was 40% fewer standard permit applications than the July 21, 1999, proposal and 30% less in direct compliance costs. It is also important to note that the modified NWPs being issued today will protect the aquatic environment substantially better than the July 21, 1999, proposal would. These final NWPs are also less complex than the proposed NWPs, which will assist the regulated public. Many commenters stated that the proposed new and modified NWPs, including the proposed general conditions, violate the Administrative Procedures Act (APA). These commenters said that the Corps has failed to provide an adequate administrative record and failed to demonstrate that the proposed acreage limits and other restrictions are necessary to provide protection for the aquatic environment. Some of these commenters stated that the Corps must provide an environmental basis for the acreage limits of the new and modified NWPs. Several commenters said that the proposal to issue new and modified NWPs to replace NWP 26 falls under the jurisdiction of the APA, because these NWPs are an agency statement of general applicability to implement, interpret, or prescribe a law or policy. A number of commenters stated that the proposed NWPs violate the APA because the schedule published in the [[Page 12825]] July 21, 1999, Federal Register notice implies that the decision to issue these NWPs and new general conditions was predetermined and the schedule did not include adequate time for the Corps to carefully consider comments received in response to that notice. The new and modified NWPs issued today comply with Section 404(e), which requires notice and opportunity for public hearing. The Corps notice and comment process is virtually the same as the APA process. We have prepared an adequate administrative record to justify the issuance of these NWPs. In addition, we have fully considered all comments received in response to the July 21, 1999, Federal Register notice to determine the terms and conditions for the new and modified NWPs. This included three extensions of the final NWP issuance in order to fully and fairly consider all comments. The acreage limit for an NWP is established so that the NWP authorizes most activities that result in minimal adverse effects on the aquatic environment, individually or cumulatively. However, since NWPs are issued for national applicability, the terms and conditions of NWPs, including the acreage limits, must be restrictive enough to ensure that the NWPs authorize only those activities with minimal adverse effects on the aquatic environment, individually and cumulatively, across the country. The NWPs also contain notification requirements that provide district engineers with the opportunity to review certain activities to determine if those activities will result in minimal adverse effects on the aquatic environment. Aquatic resource functions and values vary considerably across the country. Therefore, the minimal adverse effects determination by Corps districts is based site-specific or regional criteria. The acreage limits of the new and modified NWPs do not preclude any proposed activity from qualifying for a DA permit. If a proposed activity does not meet the terms and conditions of an NWP, then that activity could be authorized by other forms of DA permits. Regional general permits may be available to authorize certain activities that have minimal adverse effects on the aquatic environment based on local environmental conditions. The proposed work may also be authorized by individual permits, including letters of permission, if the activity involves more than minimal adverse effects on the aquatic environment. We recognize that there are specific activities or classes of activities in areas of the country that will result in minimal adverse effects on the aquatic environment, but exceed the acreage limits of the new and modified NWPs. Corps districts can develop regional general permits in the future to authorize these activities. Several commenters stated that the Corps is obligated to minimize regulatory burdens on small businesses, as required by Small Business Regulatory Enforcement Fairness Act of 1996. Two commenters said that the Corps is not in compliance with the Regulatory Flexibility Act because an ``initial regulatory flexibility analysis'' was not provided in the Federal Register notice. One commenter indicated that the Corps must comply with the Congressional Review Act. Another commenter said that the July 21, 1999, proposal to issue new and modified NWPs does not comply with Executive Order 12630, ``Governmental Actions and Interference with Constitutionally Protected Property Rights,'' because the Corps has not identified the takings implications of the proposed NWPs. The new and modified NWPs comply with the Small Business Regulatory Enforcement Fairness Act of 1996 because they provide an expedited authorization for activities in waters of the United States that have minimal adverse effects on the aquatic environment. We are not required to provide an initial regulatory flexibility analysis because we proposed to issue new and modified NWPs, not change our regulations. The Corps believes it is not required to submit the final new and modified NWPs to Congress pursuant to the Congressional Review Act, but as a matter of comity, we will submit the final NWPs to Congress. The new and modified NWPs will not result in the taking of private property because the NWPs provide an expedited authorization process for certain activities in waters of the United States that have minimal individual and cumulative adverse effects on the aquatic environment but require a Corps permit. If a proposed activity does not comply with the terms and conditions of an NWP, then the project proponent can request another form of DA permit, including regional general permits, letters of permission, or individual permits. Therefore, there are no takings implications for these NWPs. General Terms and Limits of NWPs One commenter stated that the acreage limits for the new and modified NWPs are too high. One commenter said that the NWPs should not have an acreage limit greater than 1 acre. Other commenters recommended maximum acreage limits of \1/3\ acre and \1/4\ acre. Several commenters suggested higher acreage limits for NWP activities in ephemeral streams located in the western United States. Two commenters said that the NWPs should have lower acreage limits for activities in certain types of wetlands, such as forested wetlands, playas, prairie potholes, vernal pools, kettles, pocosins, and bogs. Two commenters opposed the use of indexed acreage limits. We have fully considered comments concerning acreage limits for the new and modified NWPs. To simplify the new and modified NWPs and ensure that these NWPs still authorize only activities with minimal individual and cumulative adverse effects on the aquatic environment, all of the new NWPs, except for NWP 41, will have a \1/2\ acre limit. We have not imposed a \1/2\ acre limit on NWP 41 because it only authorizes activities that benefit the aquatic environment. The acreage limits for specific NWPs are discussed in detail in the preamble discussions for each NWP. Division engineers can regionally condition these NWPs to lower acreage limits if there are specific concerns for the aquatic environment in a particular part of the country. We do not agree that there should be higher acreage limits on the NWPs for discharges of dredged or fill material into ephemeral streams in the western states, due to the national scope of the NWPs. However, Corps districts may issue RGPs with larger acreage thresholds in any local situations where they determine that the activity would result in no more than minimal adverse effects, individually or cumulatively. Division engineers can also regionally condition these NWPs to restrict or prohibit their use in certain types of high value waters of the United States. We have eliminated the indexed acreage limits from NWPs 39 and 40 because the simple \1/2\ acre limit is a more effective way to ensure that these NWPs authorize only activities with minimal adverse effects and the vast majority of activities authorized by NWP 26 are below or slightly above \1/2\ acre. Many commenters indicated that the PCN thresholds for the new and modified NWPs should be \1/3\ acre, instead of \1/4\ acre. These commenters believe the difference between these two notification thresholds is too small to provide any value and that the lower PCN threshold will increase the Corps workload without providing any benefits. One commenter recommended providing more consistency in PCN thresholds for the NWPs. Several commenters stated that PCNs should be [[Page 12826]] required for all activities authorized by NWPs and one commenter remarked that PCNs should be required for all discharges into special aquatic sites. One commenter said that lower acreage limits for the NWPs should result in fewer PCN requirements, not a lowering of PCN thresholds. To further ensure that the new NWPs authorize only activities with minimal adverse effects on the aquatic environment, we have established a \1/10\ acre PCN threshold for the new NWPs (except for NWP 41) and retained the original PCN thresholds for impacts to open waters, including streams. The notification threshold for NWP 14 has also been lowered to \1/10\ acre. The \1/10\ acre PCN threshold will result in a workload increase for Corps districts, but we believe that this increase will be minor, since many permittees request written verification of NWP authorizations, even when notification is not required. We believe that the PCN thresholds in the new and modified NWPs are consistent. There are circumstances, such as NWP 39 activities that impact open waters, where we believe it is necessary to review all proposed activities. However, we do not agree that is necessary to require notification for all NWP activities because most minor activities authorized by NWPs result in minimal adverse effects. Division engineers can impose regional conditions on NWPs to lower PCN thresholds in those geographic areas where there is the potential for more than minimal adverse effects on the aquatic environment. We do not agree that lower acreage limits should result in fewer PCN requirements because the notification process is necessary to address activities that might result in more than minimal adverse effects. Several commenters suggested adding PCN requirements for discharges into ephemeral streams, not just perennial and intermittent streams, because ephemeral streams are important in arid regions. One commenter recommended reducing the 500 linear foot PCN threshold for perennial and intermittent stream impacts to 200 linear feet. One commenter said that PCNs should be required for all discharges into open waters to allow district engineers to determine appropriate vegetated buffer requirements. Except for those NWPs that require notification for all activities or all discharges of dredged or fill material into open waters, we believe that notification requirements for stream impacts should be limited to perennial and intermittent streams, since discharges of dredged or fill material into ephemeral streams are likely to result in minimal adverse effects. In geographic areas where discharges of dredged or fill material into ephemeral stream beds may result in more than minimal adverse effects on the aquatic environment, division engineers can regionally condition these NWPs to require notification for these activities. For some of the new NWPs, we have replaced the 500 linear foot PCN threshold for stream bed impacts with a 300 linear foot limit. Division engineers can impose regional conditions to require a PCN threshold to address activities that may result in more than minimal adverse effects. With the exception of NWP 39, we do not agree that it is necessary to require notification for all discharges of dredged or fill material into open waters to determine vegetated buffer requirements. Vegetated buffers are not required for all activities authorized by the NWPs. District engineers will determine on a case-by-case basis when it is appropriate to require vegetated buffers next to open waters. Cumulative Impact Assessment and Data Collection Many commenters objected to the Corps position stated in the July 21, 1999, Federal Register notice that the Corps can monitor only those cumulative adverse effects on the aquatic environment that result from activities permitted by the Corps regulatory program. Some of these commenters said that this position is contrary to the Clean Water Act and recommended that the Corps utilize the definition of cumulative impacts found in the regulations for the National Environment Policy Act (NEPA). Numerous commenters asserted that cumulative impact analysis should include both regulated and unregulated losses of aquatic habitat within a geographic area. One commenter said that cumulative impact analysis should include all activities that affect water quality. Two commenters objected to the Corps statement in the July 21, 1999, Federal Register notice that district engineers must have clear, extensive, and unequivocal evidence that activities regulated pursuant to section 404 of the Clean Water Act or section 10 of the Rivers and Harbors Act are causing more than minimal cumulative adverse effects on the aquatic environment, not unregulated activities, before revoking or suspending the use of NWPs. One commenter stated that cumulative impact assessment should consider temporary and permanent losses of waters of the United States in a different manner. This commenter also remarked that the cumulative impact assessment must also consider both losses of waters of the United States and compensatory mitigation to determine the net cumulative adverse effects on the aquatic environment. The Corps position in the July 21, 1999, Federal Register notice concerning cumulative impact assessment is based on the statutory requirements of Section 404(e) of the Clean Water Act. There are no other references to cumulative adverse effects in Section 404 of the Clean Water Act. The requirement for authorized activities to cause no more than minimal adverse effects on the aquatic environment applies only to general permits (including NWPs), not the entire Corps regulatory program. This position is also supported by the regulations for implementing the Section 404(b)(1) guidelines at 40 CFR 230.7. These regulations state that activities authorized by general permits can result only in minimal adverse effects on water quality and the aquatic environment (see 40 CFR 230.7(a)(3)). The Corps scope of analysis for the purposes of NEPA is discussed in 33 CFR part 325, appendix B. The Corps can only address the impacts of the specific activity that requires a Department of the Army permit and those portions of the activity over which the district engineer has sufficient control and responsibility to warrant Federal review. The Corps does provide different consideration to temporary and permanent losses of waters of the United States when assessing the adverse effects of regulated activities on the aquatic environment. As discussed in the NWP definition of ``loss of waters of the United States,'' waters of the United States that are temporarily filled, flooded, excavated, or drained, but restored after construction, are not included in the measurement of loss of waters of the United States. Therefore, temporary losses would not be included in the Corps cumulative impact assessment since the affected areas would be restored as waters of the United States. When assessing cumulative adverse effects on the aquatic environment, the Corps also considers compensatory mitigation for losses authorized by NWPs, because compensatory mitigation is often required to offset losses of waters of the United States and ensure that the activities authorized by NWPs have minimal adverse effects. Corps districts assess cumulative impacts on a watershed basis. Attempting to assess cumulative impacts across the nation is not possible, or appropriate. [[Page 12827]] Two commenters supported the Corps assertion that cumulative impacts must be assessed on a watershed basis. One of these commenters said that watersheds should be defined by the 8-digit watershed cataloging units designated by the U.S. Geological Survey (USGS). Two commenters requested that the Corps develop a method to quantify potential cumulative and indirect impacts that will result from activities authorized by NWPs in a watershed. Two commenters said that district engineers must demonstrate that the use of NWPs in a watershed or geographic area will not result in more than minimal adverse effects on the aquatic environment. As discussed in the July 1, 1998, Federal Register notice, the Corps utilizes the 8-digit hydrological unit codes developed by USGS to identify watersheds for its data collection process. However, district engineers can utilize subwatersheds within these hydrological units when conducting cumulative impact assessments. The Corps does not have the resources to develop a method to quantify potential cumulative and indirect impacts that may result from activities authorized by NWPs. If the division or district engineer determines that the use of NWPs to authorize activities within a particular watershed or geographic area will result in more than minimal individual or cumulative effects on the aquatic environment, then he or she can modify, suspend, or revoke those NWPs in that area (see 33 CFR 330.4). This is a determination that must be made by districts as they administer the Corps regulatory program in specific geographic areas. Two commenters said that the Corps should analyze the cumulative impacts of the current NWPs and any NWPs that will be proposed in the future before issuing the new and modified NWPs. These commenters recommended that this analysis consider the efficiency of compensatory mitigation. Two commenters objected to the Corps assertion that it cannot make the individual and cumulative adverse effects determination nationally. When the Corps issues or modifies an NWP, an environmental assessment, a finding of no significant impact (FONSI), and if necessary, an evaluation of compliance with the Section 404(b)(1) guidelines is prepared for each NWP. These items are contained in one document. This document includes an analysis of the cumulative impacts that are expected to occur during the time the NWP is in effect. This analysis also includes estimates of the amount of compensatory mitigation that will be required to offset losses of waters of the United States authorized by the NWP. We maintain our position that an assessment of cumulative adverse effects that result from the use of the NWPs cannot be made at the national level, and that the only technically sound method to conduct this assessment is on a watershed basis, through the district offices. Concurrent with the issuance of the new and modified NWPs and the final decision documents for each of the new and modified NWPs, division engineers will issue supplementary decision documents that address the impacts of the NWPs in Corps districts. Several commenters said that Corps record-keeping methods are inadequate and that the Corps should issue quarterly public reports on wetland losses and the status of compensatory mitigation. A number of commenters recommended that the Corps establish a data collection system that tracks various types of compensatory mitigation (i.e., creation, restoration, enhancement, preservation) and monitors compliance with the goal of no net loss. Numerous commenters indicated that the Corps needs to commit to stronger monitoring and enforcement efforts. We do not have the resources to publish quarterly reports on impacts to waters of the United States and compensatory mitigation at this time. The data collection systems for most Corps districts do not currently differentiate between the amounts of compensatory mitigation provided through restoration, enhancement, creation, or preservation. Instead, most districts track the total amount of compensatory mitigation required for Corps permits. The effectiveness of compensatory mitigation efforts is monitored by district engineers on a case-by-case basis to the extent allowed by workload and personnel resources. Therefore, we cannot collect this type of information for all activities. We are committed to strong enforcement and monitoring efforts, but enforcement and compliance efforts are limited to available district resources. The Corps permit evaluation workload must take precedence over enforcement and monitoring. Compliance with the National Environmental Policy Act Several commenters stated that the proposed NWPs require an Environmental Impact Statement (EIS). Two commenters objected to the Corps statement in the July 21, 1999, Federal Register notice that the NWP program does not require an EIS because the NWPs can only authorize activities with minimal individual and cumulative adverse effects on the aquatic environment. We maintain our position that the NWPs do not require an EIS, but we are in the process of preparing a Programmatic Environmental Impact Statement (PEIS) for the NWP program. A number of commenters indicated that the Corps needs to reevaluate the Finding of No Significant Impact (FONSI) issued on June 23, 1998, since the draft NWPs are substantially different from the NWPs proposed in the July 1, 1998, Federal Register notice. These commenters said that the three proposed new general conditions warrant reevaluation of the FONSI. We do not agree that the FONSI issued on June 23, 1998, requires revision. The FONSI issued on June 23, 1998, was a general statement of findings for the NWP program. That FONSI did not address a specific set of NWPs. The three proposed new general conditions are intended to provide additional protection to the aquatic environment and their implementation would not substantially change the scope of the FONSI issued on June 23, 1998, or its findings. Two commenters said that the Corps should release or issue the Environmental Assessments (EAs) for the new and modified NWPs before those permits are issued so that the public can comment on those EAs. These commenters stated that the EAs should also include regional analyses in addition to the national analyses. One of these commenters indicated that the EAs should contain analyses of potential impacts on recreation, wildlife habitat, endangered species, cultural resources, land use, and habitat degradation, as well as address cumulative impacts that occur when an NWP is used with other NWPs. Another commenter requested that the EAs assess the expansion of geographic scope of the new NWPs, the amount of cumulative and individual impacts that may be authorized by these NWPs, the types of waters that may be adversely affected by the new and modified NWPs, and the functions of those waters. Other commenters objected to the preliminary EAs, stating that those EAs did not include an ecological rationale for the proposed acreage limits. We do not agree that it was necessary to issue new preliminary EAs for the draft NWPs proposed in the July 21, 1999, Federal Register notice. We received few comments in response to the preliminary EAs that were issued with the July 1, 1998, Federal Register [[Page 12828]] notice. Those individuals that commented on the preliminary EAs requested that the Corps include an alternatives analysis in each EA. We have included an alternatives analysis in each EA for the new and modified NWPs. The EAs for the new and modified NWPs issued today discuss, in general terms, the acreage limits for these NWPs, the types of waters subject to the new and modified NWPs, and the functions of those waters. The EAs also include projected impacts to waters of the United States that will occur through the use of these NWPs. Since aquatic resource functions and values vary considerably across the country, we cannot include detailed ecological analyses to support the acreage limits for these NWPs. However, division engineers will be issuing supplemental EAs that will address issues at the district level. The final EAs for the new and modified NWPs have been substantially modified from the preliminary EAs issued in conjunction with the July 1, 1998, Federal Register notice. The final EAs contain general discussions of potential individual and cumulative impacts to the 20 public interest review factors at 33 CFR 320.4 and the factors in Subparts C through F of the Section 404(b)(1) guidelines (40 CFR Part 230). In response to the July 21, 1999, Federal Register notice, some commenters addressed the Programmatic Environmental Impact Statement (PEIS) of the NWP program that the Corps is preparing. One commenter supported the PEIS, but asserted that an EIS is required. Another commenter stated that the PEIS is unwarranted and unnecessary. Many commenters said that the Corps cannot finalize the NWPs before the PEIS is completed. These issues concerning the PEIS were addressed in the July 21, 1999, Federal Register notice (see 64 FR 39265) and we have not changed our position. Compliance with the Endangered Species Act Two commenters stated that the proposed NWPs require Endangered Species Act (ESA) Section 7 consultation. Three commenters asserted that the proposed new and modified NWPs do not comply with ESA. One of these commenters said that the Corps does not adequately address the direct, secondary, and cumulative impacts on endangered and threatened species that will result from activities authorized by the NWPs. This commenter also stated that the Corps cannot rely on prospective permittees to conduct adequate investigations to determine whether endangered or threatened species or designated critical habitat occur on the project site. Three commenters indicated that compliance with ESA cannot be ensured for activities that do not require notification to the district engineer. We have requested programmatic ESA consultation for the NWP program. We contend that the new and modified NWPs, through the requirements of General Condition 11, comply with ESA. We use the ESA interagency consultation regulations at 50 CFR Part 402 when determining compliance with ESA. Scope of analysis issues for ESA will be resolved through consultation with the U.S. Fish and Wildlife Service (FWS) and the National Marine Fisheries Service (NMFS). General Condition 11 requires non-Federal permittees to notify the district engineer if any listed species or designated critical habitat might be affected or is in the vicinity of the project. The permittee shall not begin work on the activity until notified by the District Engineer that the requirements of the Endangered Species Act have been satisfied and that the activity is authorized. Three commenters asserted that the Corps cannot issue the new and modified NWPs prior to completing programmatic ESA consultation. One commenter stated that programmatic ESA consultation does not obviate the need for regional and site-specific consultation. One commenter said that since Standard Local Operating Procedures for Endangered Species (SLOPES) have not yet been completed, the Corps cannot rely on SLOPES to ensure compliance with ESA. One commenter suggested that SLOPES should be developed for all issued NWPs. We can issue the NWPs prior to the completion of the NWP programmatic ESA consultation, because issuance of the NWPs has not foreclosed opportunities to address endangered species and the NWPs already contain safeguards to ensure compliance with ESA. The programmatic consultation will provide additional assurance that the existing NWPs, as well as the new and modified NWPs issued today, have a formal process to develop any necessary additional procedures at the district level. The programmatic consultation will provide further assurance that the NWP program does not jeopardize the existence of any Federally-listed threatened or endangered species, or destroy or adversely modify the critical habitat of such species. Both the programmatic ESA consultation and the PEIS will address potential cumulative effects on endangered and threatened species and their designated critical habitat regarding the NWP program. We maintain that the SLOPES help ensure compliance with the ESA at the district level. Districts can meet with local offices of the FWS and NMFS at any time to modify or improve their SLOPES. Districts will enter case-specific consultation in any case where the district determines the proposed project may affect a threatened or endangered species. In addition to NWP General Condition 11, division and district engineers have imposed and can impose additional regional conditions on the NWPs and case-specific special conditions to address endangered or threatened species or their critical habitat. For example, Corps regional conditions can prohibit the use of NWPs in designated critical habitat for endangered or threatened species or require notification for activities in areas known to be inhabited by threatened or endangered species. Some Corps districts have conducted programmatic consultation for specific geographic areas. Also, Corps districts have and will conduct case-specific Section 7 consultation for endangered species. These efforts usually consider the NWP program in that particular area. In summary, General Condition 11, Corps regional conditions, case-specific special conditions, and SLOPES will ensure that the NWP program complies with ESA. Stream Impacts Many commenters objected to the proposed NWPs, stating that thousands of feet of stream bed could be channelized or filled under these NWPs. These commenters said that linear foot limits for stream bed impacts should be imposed on the NWPs instead of acreage limits. A large number of commenters recommended adding a 250 linear foot limit for stream bed impacts to the new and modified NWPs. Other commenters suggested linear stream bed impact limits of 200, 100, and 50 linear feet. A few commenters said that the NWPs should not authorize any stream impacts. Another commenter requested clarification regarding the PCN thresholds for linear feet of stream bed impacts, asking if the flooded area is included with the filled area. After consideration of these comments, we have decided to impose on NWPs 39, 40, 42, and 43, a 300 linear foot limit for filling or excavation activities in stream beds. This 300 linear foot limit applies only to stream beds that normally have flowing water. [[Page 12829]] Division engineers can regionally condition the NWPs to lower the 300 linear foot limit for stream bed impacts, impose linear foot limits for stream bed impacts on other NWPs, or establish lower PCN thresholds for filling or excavating stream beds. Several commenters stated that all Corps districts must use the same method to determine where the average annual flow of a stream is 1 cfs. One of these commenters recommended using drainage area as a substitute. Another commenter suggested that the guidance in the preamble to the final rule for the NWP regulations (33 CFR part 330) published in the November 22, 1991, Federal Register (56 FR 59112) should be used to establish where the 1 cfs point of a stream is located. That guidance described how to determine the geographic location of the limit of headwaters for perennial, intermittent, and ephemeral streams. District engineers will utilize the best methods available to identify where the average annual flow of a stream is 1 cfs. Although the guidance published in the November 22, 1991, Federal Register was intended to assist district engineers and the regulated public in identifying the geographic location of headwaters (i.e., where the average annual flow is less than 5 cfs), this guidance can also be used to locate the 1 cfs point on a stream. District engineers can utilize the median flow, rather than the average flow, to establish where the 1 cfs point on a stream is located. This approach recognizes that streams with highly irregular flows, such as those occurring in the western portion of the United States, could be dry at the 1 cfs point for most of the year and still average, on an annual basis, a flow of 1 cfs because of high volume, flash flood type flows which greatly distort the average. Furthermore, we recognize that using the median flow for an entire year in streams that have no stream flow for over half the year but with flows greater than 1 cfs for several months would also distort the average. It should also be noted that precision is not required in establishing the 1 cfs point. The definition allows the district engineer to use approximate means to compute it. The drainage area that will contribute an average annual flow of 1 cfs can be estimated by approximating the proportion of average annual precipitation that is expected to find its way into the stream. Knowing the amount of area that will produce this flow in a particular region, the 1 cfs point can be approximated from drainage area maps. For example, in most areas of the eastern United States (i.e., east of the Mississippi River), one square mile of drainage area produces 1 cfs of stream flow annually. Applicable Waters for the New and Modified Nationwide Permits A number of commenters objected to the increased scope of waters in which the proposed NWPs published in the July 21, 1999, Federal Register could be used. One commenter stated that the NWPs should be used only in headwaters and isolated waters. Two commenters supported the use of the new and modified NWPs in non-tidal waters. Three commenters objected to prohibiting the use of the new and modified NWPs in tidal waters and non-tidal wetlands adjacent to tidal waters. One commenter stated that the Corps has not provided justification for excluding the new and modified NWPs from non-tidal wetlands that are adjacent to tidal waters and recommended that the Corps utilize the term ``contiguous'' instead of ``adjacent.'' We contend that limiting the new NWPs to non-tidal waters, except for non-tidal wetlands adjacent to tidal waters, provides adequate protection of the aquatic environment and helps ensure that these NWPs authorize only activities with minimal adverse effects. Regional conditioning of the new and modified NWPs by division engineers will provide additional protection by restricting or prohibiting the use of the new and modified NWPs in high value waters. General Condition 25 will also protect high value waters. General Condition 26 does not allow permanent, above-grade fills in the 100-year floodplain downstream of the headwaters. We do not agree that the new and modified NWPs should be used in tidal waters or non-tidal wetlands adjacent to tidal waters. We have identified tidal waters as high value waters on a national basis. Non- tidal wetlands adjacent to tidal waters contribute to the ecological integrity of tidal waters and should not be subject to the new and modified NWPs. District engineers can develop regional general permits for discharges into non-tidal waters adjacent to tidal waters, if such regional general permits are needed for activities that result in minimal adverse effects on the aquatic environment, individually or cumulatively. One commenter requested that the Corps define the term ``adjacent'' for the purposes of the new and modified NWPs. One commenter stated that the definition of the term ``adjacent'' at 33 CFR 328.3(c) is confusing for use in the NWP program and that the Corps needs to provide a definition that is easily understandable by the regulated public. This commenter also said that the NWPs should be limited to only those non-tidal wetlands that are both adjacent to and inundated by spring tides; wetlands landward of the mean high tide line would be considered as non-tidal wetlands adjacent to tidal waters and wetlands landward of the spring high tide line would not be considered adjacent to tidal waters. Two commenters asked the Corps to provide a clear explanation of the upstream limit of non-tidal wetlands adjacent to tidal waters and whether non-tidal wetlands miles upstream of tidal waters would be considered adjacent to those tidal waters. For the new and modified NWPs, the definition of the term ``adjacent'' at 33 CFR 328.3(c) will be used. Since aquatic systems vary considerably across the country, we cannot establish more specific criteria at a national level to further define adjacency. District engineers will make appropriate determinations of adjacency, based on regional hydrologic conditions. Wetlands located between mean high water and the spring high tide line are tidal wetlands because they are inundated by tidal waters (see 33 CFR 328.4(b)(1)). Non-tidal wetlands that are bordering, contiguous, or neighboring to tidal waters are considered adjacent to those tidal waters. The upstream limit of non-tidal wetlands adjacent to tidal waters is determined by the degree of influence of the tidal waterbody on non-tidal wetlands. Those non-tidal wetlands that exert direct hydrologic influence on tidal waters are considered adjacent to those tidal waters. For the purposes of the NWPs, non-tidal streams located upstream of the head of tide are not considered adjacent to tidal waters, although those streams eventually flow into tidal waters and are part of the surface tributary system. Wetlands adjacent to non- tidal streams are within the scope of waters for the new and modified NWPs. One commenter stated that the new and modified NWPs should not authorize discharges into prairie potholes, playa lakes, or vernal pools. Another commenter said that the NWPs should not be used in rare and irreplaceable wetlands. We do not agree that the new and modified NWPs should be subject to a national prohibition against discharges of dredged or fill material into prairie potholes, playa lakes, or vernal pools. Rare and irreplaceable wetlands have not been formally defined. General Condition 25 restricts activities in designated critical resource waters. Further, division engineers can [[Page 12830]] regionally condition these NWPs to restrict or prohibit discharges into high value waters. For those activities that require notification, district engineers can exercise discretionary authority if the proposed work will result in more than minimal adverse effects on the aquatic environment. Mitigation A large number of commenters specifically addressed the compensatory mitigation requirements of the proposed new and modified NWPs. One commenter said that the goal of compensatory mitigation is not clearly defined in the proposed NWPs. Several commenters requested that the Corps clarify when compensatory mitigation is required for activities authorized by NWP. These commenters said that there are some inconsistencies concerning compensatory mitigation requirements in the July 21, 1999, Federal Register notice. Two of these commenters referred to Corps statements in the July 21, 1999, Federal Register notice that: (1) Compensatory mitigation will normally be required for activities that require notification and, (2) in some circumstances, compensatory mitigation may be unnecessary because the adverse effects on the aquatic environment are minimal without mitigation. For the NWP program, including the new and modified NWPs, the purpose of compensatory mitigation is to ensure that the authorized work results in minimal adverse effects on the aquatic environment. For those activities that require notification to the district engineer, compensatory mitigation may be necessary to ensure that the authorized work results in minimal adverse effects on the aquatic environment. District engineers will determine, on a case-by-case basis, when compensatory mitigation is not practicable. Our use of the word ``normally'' when referring to compensatory mitigation for NWP activities allows district engineers flexibility in determining when compensatory mitigation will be required and lets the regulated public know that compensatory mitigation is likely to be required for impacts that exceed PCN thresholds, except under circumstances where the adverse effects are minimal without compensatory mitigation. Activities that do not require notification are presumed to result in minimal adverse effects and do not require compensatory mitigation to ensure minimal adverse effects. Division engineers can regionally condition an NWP to lower the notification threshold to allow district engineers to determine, on case-by-case basis, if compensatory mitigation is necessary to ensure that the authorized work results in minimal adverse effects on the aquatic environment. Many commenters opposed the use of compensatory mitigation to ensure that activities authorized by NWPs result in minimal adverse effects on the aquatic environment. Several commenters supported the use of compensatory mitigation to ensure that authorized activities result in minimal adverse effects. One of these commenters said that compensatory mitigation should not be required simply to meet a ``no net loss'' of wetland acreage goal. One commenter indicated that compensatory mitigation should not be required for activities authorized by NWP because NWPs can only authorize activities with minimal adverse effects. Compensatory mitigation is often necessary to offset losses of waters of the United States and ensure that the authorized activity results in minimal adverse effects on the aquatic environment. The NWP regulations at 33 CFR 330.1(e)(3) allow permittees to provide compensatory mitigation to reduce the adverse effects of the proposed work to the minimal level. In the July 21, 1999, Federal Register notice, we stated that for the purposes of the NWP program, compensatory mitigation is required to ensure that the authorized activities result in minimal adverse effects on the aquatic environment, individually or cumulatively, not to achieve ``no net loss'' of wetland acreage. NWP compensatory mitigation requirements are not driven by the ``no net loss'' goal, but will help support that goal. A district engineer can determine, for an activity that requires notification, that compensatory mitigation is not practicable. Two commenters said that compensatory mitigation should be required only for impacts to waters of the United States. Another commenter stated that the Corps is proposing to require mitigation for activities not subject to its regulatory authority, such as flooding, excavation, and drainage activities. One commenter indicated that the July 21, 1999, Federal Register notice requires compensatory mitigation for non- wetland impacts. One commenter remarked that compensatory mitigation for wetland or stream losses should be subject to a public notice process because mitigation is being used to avoid significant impacts. Compensatory mitigation may be required by district engineers to offset losses of waters of the United States to ensure that the authorized work results in minimal adverse effects on the aquatic environment. Although district engineers may require out-of-kind compensatory mitigation, such as the restoration of upland riparian zones, to compensate for losses of the functions and values of waters of the United States, compensatory mitigation is required only to offset losses of waters of the United States. District engineers can require compensatory mitigation for losses of aquatic resource functions and values caused by flooding, excavation, and drainage caused by activities that are associated with activities that are regulated by the Corps (i.e., discharges of dredged or fill material). However, if the activity does not involve work in navigable waters of the United States or a discharge of dredged or fill material into waters of the United States, compensatory mitigation cannot be required because no Corps permit is necessary to conduct the activity. We do not agree that a public notice process is required for compensatory mitigation projects. Several commenters stated that the mitigation requirements discussed in the July 21, 1999, Federal Register notice do not adequately protect wetlands. Numerous commenters said that the NWPs should be conditioned to require a full alternatives analysis. Many commenters requested that the Corps condition all NWPs to require project proponents to avoid impacts to the maximum extent practicable and implement compensatory mitigation that fully replaces all losses of wetland acreage and functions. One commenter objected to including minimization as a form of mitigation. Two commenters asserted that the NWPs should be subject to the mitigation requirements of the 1990 mitigation Memorandum of Agreement (MOA), including sequencing requirements. The mitigation requirements of the new and modified NWPs adequately protect wetlands. General Condition 19 requires permittees to avoid and minimize discharges into waters of the United States on-site to the maximum extent practicable. General Condition 19 also states that district engineers can require compensatory mitigation to ensure that the authorized work results in minimal adverse effects on the aquatic environment. The use of minimization as mitigation is well established in Federal regulations (see the Council on Environmental Quality's regulations at 40 CFR 1508.20). The avoidance provisions of the 1990 mitigation MOA apply only to standard individual permits, not activities authorized by NWPs. One commenter stated that some of the new NWPs (e.g., NWPs 39 and 43) [[Page 12831]] require compensatory mitigation without requiring submission of a notification to the district engineer. This commenter said that compensatory mitigation should not be required unless the district engineer reviews the PCN and determines that compensatory mitigation is necessary to offset authorized losses of waters of the United States. One commenter objected to requiring compensatory mitigation for activities that require notification, but another commenter supported this requirement. Two commenters objected to allowing district engineers to make the final determination whether compensatory mitigation is required. Compensatory mitigation is not required for NWP activities that do not require notification to the district engineer. Division engineers can regionally condition NWPs to lower PCN thresholds or require notification for all activities, if such PCN thresholds are necessary to allow district engineers to require compensatory mitigation to ensure that adverse effects to the aquatic environment are minimal. We believe that it is appropriate for district engineers to make the final decisions whether compensatory mitigation is necessary to ensure that activities authorized by NWPs result in minimal adverse effects. A large number of commenters recommended that the Corps require acre-for-acre wetland restoration as compensatory mitigation for all activities resulting in the loss of greater than \1/4\ acre of wetlands. Other commenters suggested \1/2\, \1/3\, and 1 acre thresholds for requiring compensatory mitigation. Many commenters said that a minimum 1:1 mitigation ratio should be required for all losses of waters of the United States authorized by NWPs. Other commenters recommended higher mitigation ratios. One commenter said that the Corps should provide compensatory mitigation guidelines that addresses site selection and design, options for compensatory mitigation, and a description of success criteria and monitoring requirements. While final specific compensatory mitigation requirements, such as replacement ratios, are determined by district engineers on a case-by- case basis, we agree that there should be a minimum requirement of an acre-for-acre (1:1) wetland replacement as compensatory mitigation for all activities requiring notification. The Corps can require compensatory mitigation in excess of a 1:1 ratio of impact acreage to compensatory mitigation acreage to adequately replace aquatic resource functions and values that are lost as a result of activities authorized by NWPs. The Corps can also accept out-of-kind compensatory mitigation, if it is best for the aquatic environment. Existing policy and guidance for compensatory mitigation provides a preference for on-site and in- kind replacement of the functions and values of the impacted aquatic resource. If on-site compensatory mitigation is not practicable, off- site compensatory mitigation should be undertaken in the same geographic area if practicable, (i.e., in close proximity and, to the extent possible, the same watershed) or environmentally preferable. The Corps can also accept out-of-kind compensatory mitigation, if it is best for the aquatic environment. Many commenters stated that the Corps should require in-kind, on- site replacement of wetlands. Several commenters supported the utilization of off-site, out-of-kind compensatory mitigation for losses of waters of the United States authorized by NWPs. These commenters also supported the Corps position that the appropriate compensatory mitigation required for activities authorized by NWPs should be based on what is best for the aquatic environment. One commenter remarked that the selected mitigation method should best replace site-specific functions and values of the impacted aquatic habitat. One commenter supported the use of out-of-kind compensatory mitigation, such as the establishment and maintenance of vegetated buffers next to streams, and stream restoration, and the preservation of wetland/upland complexes. When reviewing compensatory mitigation proposals, district engineers will consider what is best for the aquatic environment, including requirements for vegetated buffers next to perennial and intermittent streams and other open waters. Wetland restoration, enhancement, creation, and, only in exceptional circumstances, preservation are not the only methods of providing compensatory mitigation for activities authorized by NWPs. Stream restoration and enhancement, including the restoration or preservation of riparian zones, can also provide compensatory mitigation for losses resulting from activities authorized by NWPs. The establishment and maintenance of vegetated buffers next to streams and other open waters as compensatory mitigation for losses of waters of the United States authorized by NWPs are discussed in the next section of this notice. Many commenters opposed the Corps preference for the use of mitigation banks and in lieu fee programs to provide compensatory mitigation for losses of waters of the United States authorized by NWPs. A number of other commenters supported the Corps preference for consolidated compensatory mitigation methods. One commenter indicated that the preference for consolidated compensatory mitigation methods should not be limited to mitigation banks. One commenter expressed some support for using mitigation banks and other consolidated mitigation methods as alternatives for on-site compensatory mitigation because of the uncertainty for success in some individual compensatory mitigation projects. This commenter also recommended developing guidance for in lieu fee programs and other consolidated mitigation methods before allowing widespread use of these methods. Another commenter recommended that the text of the NWPs and the preamble to the notice announcing the issuance of the NWPs refer to the Federal guidance for compensatory mitigation, especially for the use of mitigation banks and in lieu fee programs. Two commenters indicated that in lieu fee programs should not be considered as compensatory mitigation until guidance has been developed for these programs. One commenter objected to the use of in lieu fee programs to provide compensatory mitigation because the commenter asserts that these programs are not subject to agency and public review and do not ensure compliance with the goal of no net loss. Consolidated compensatory mitigation methods, including mitigation banks, are often an efficient means of compensating for losses of waters of the United States, particularly for multiple small activities. We recognize that consolidated compensatory mitigation methods are often more practicable and successful because of the planning and implementation efforts typically expended on these activities by their proponents. Individual efforts to create, restore, or enhance wetlands to replace small wetland losses may be unsuccessful because of poor planning and/or construction. Furthermore, consolidated mitigation efforts are often better monitored and maintained and often result in the establishment of larger contiguous wetland areas that benefit the overall local aquatic environment and many of the species that utilize larger aquatic habitats. One commenter stated that where mitigation banks and in lieu fee programs are in the same watershed, preference should be given to using the mitigation bank since mitigation banks subject to more stringent requirements [[Page 12832]] and more likely to be successful. Two commenters said that mitigation banks should be located in the same watershed as the site of the NWP activity. One commenter said that in lieu fee programs should not be used as compensatory mitigation for activities that result in the loss of greater than \1/10\ acre of waters of the United States. Where practicable, mitigation banks and other consolidated mitigation methods should be located in the same watershed as the site of the activity authorized by NWP. District engineers have the authority to approve or disapprove the use of specific mitigation approaches as compensatory mitigation for losses of waters of the United States authorized by NWPs. Permittees should have the flexibility to utilize compensatory mitigation methods that are within their means to accomplish and meet the requirements to offset unavoidable losses of waters of the United States. To the extent practicable, permittees should consider use of approved mitigation banks and other forms of consolidated compensatory mitigation. We do not agree that there should be an acreage limit that would preclude the use of any particular type of mitigation to provide compensatory mitigation for losses of waters of the United States authorized by NWPs. Several commenters stated that the preservation of high value wetlands should be encouraged as a form of compensatory mitigation. A number of commenters objected to the use of preservation as compensatory mitigation, unless one-to-one replacement of aquatic habitats has been achieved. One commenter objected to the use of enhancement unless one-to-one replacement of wetlands has been accomplished. We concur that the preservation of high value wetlands is one appropriate method of compensatory mitigation for losses of waters of the United States, but only in exceptional circumstances. Preservation of aquatic habitats should be done in conjunction with aquatic habitat restoration, creation, or enhancement to offset losses of waters of the United States. The amount of preservation or enhancement that will be accepted as compensatory mitigation for impacts authorized by NWPs will be determined by district engineers on a case-by-case basis. To further clarify the issue of mitigation, we have removed some of the mitigation information from General Condition 13 and consolidated the mitigation requirements for the NWPs in General Condition 19. Vegetated Buffers In the July 21, 1999, Federal Register notice, we proposed to require the establishment and maintenance of vegetated buffers adjacent to waters of the United States as an alternative form of compensatory mitigation to ensure that activities authorized by NWPs result in minimal adverse effects on the aquatic environment. The vegetated buffer requirement was in the draft NWP 39 and the proposed modifications to General Conditions 13 and 19. As a result of our review of the comments received in response to the July 21, 1999, Federal Register notice, we have made several changes to the vegetated buffer requirements for the NWPs. For example, vegetated buffers are required only if there are perennial or intermittent streams or other open waters on the project site. Vegetated buffers will be established and maintained on the uplands or wetlands next to the open waters. For the purposes of the NWPs, vegetated buffers are not required next to ephemeral streams or wetlands. The use of vegetated buffers as mitigation for NWP activities is discussed in General Condition 19. The changes to the vegetated buffer requirements are discussed in more detail below. Many commenters supported the vegetated buffer requirements for the new and modified NWPs. A number of commenters stated that vegetated buffers should not be a condition of an NWP authorization. These commenters said that vegetated buffers should be considered only when a landowner voluntarily agrees to establish and maintain vegetated buffers adjacent to waters of the United States as an alternative form of compensatory mitigation. Several commenters contend that compensatory mitigation sites should be protected by vegetated buffers. Another commenter stated that the use of upland buffers should be consistent with current Federal guidance, particularly the ``Federal Guidance for the Establishment, Use and Operation of Mitigation Banks'' (60 FR 58605). A commenter stated that the vegetated buffer requirement should not apply to all activities that require a Corps permit, such as piers. Vegetated buffers will be required only when there are open waters, such as perennial or intermittent streams, on the project site, and the NWP activity involves discharges of dredged or fill material into waters of the United States. However, a required vegetated buffer could be established off-site for impacts on the project site. Project proponents will not be required to establish and maintain vegetated buffers next to ephemeral streams. Vegetated buffers are not normally required for activities that require only Section 10 permits, but district engineers can require vegetated buffers as compensatory mitigation for activities authorized by Section 10 permits, if such compensatory mitigation is appropriate. District engineers will determine, on a case-by-case basis, whether or not vegetated buffers are required. Vegetated buffers are required only when it is practicable for the permittee to establish these areas and the vegetated buffer will be self-maintaining, other than restrictions on cutting or removal of the buffer. If the permittee does not own the land next to the open waters, then vegetated buffers are not required unless the permittee can reasonably obtain the appropriate conservation easements for those buffers. Compensatory mitigation sites can be protected by vegetated buffers, but we do not agree that this should be a requirement of the NWP program. However, providing a buffer to the restored waters of the United States in a mitigation bank is precisely why a good mitigation bank will have a matrix of waters and uplands for maximum ecological functions and values. The ``Federal Guidance for the Establishment, Use and Operation of Mitigation Banks'' does not contain any useful guidance concerning the establishment and maintenance of vegetated buffers next to open waters. During the revision of the vegetated buffer requirements for the NWPs, we considered the riparian forest buffer Conservation Practice Standard (Code 391A) issued by NRCS in July 1997. We also considered the information in the document entitled ``Riparian Forest Buffers: Function and Design for Protection and Enhancement of Water Resources'' published by the Forest Service. A large number of commenters opposed the vegetated buffer requirement. Those in opposition to this requirement were divided into two groups. One group objected to vegetated buffers as compensatory mitigation for discharges of dredged or fill material into wetlands because they believe that wetland losses should be compensated only through wetland restoration, creation, or enhancement. The other group of commenters stated that the Corps does not have the regulatory or statutory authority to require vegetated buffers adjacent to waters of the United States. Those commenters that oppose the use of vegetated buffers as [[Page 12833]] compensatory mitigation for losses of wetlands indicated that vegetated buffers adjacent to waters of the United States do not replace the lost functions that would be provided by wetland restoration or creation. Many of these commenters said that vegetated buffers next to open waters and streams do not provide flood storage capacity, wildlife habitat, water quality, or groundwater recharge functions. Numerous commenters stated that using vegetated buffers as compensatory mitigation will not help the Administration achieve its goal of a net gain of 100,000 acres of wetlands per year. Other commenters indicated that vegetated buffers as compensatory mitigation is contrary to the ``no net loss'' goal. One commenter said that the use of vegetated buffers is contrary to the 1990 mitigation MOA. Vegetated buffers next to streams and other open waters on the project site are an important type of compensatory mitigation that provides substantial aquatic habitat, water quality, and flood storage benefits. The establishment and maintenance of vegetated buffers may be a preferable form of compensatory mitigation because it may be infeasible to create or restore wetlands on the project site after the activity is built. Vegetated buffers, even if they are established on uplands next to streams and other open waters, would provide on-site aquatic habitat, water quality, and flood storage functions. Vegetated buffers next to streams and other open waters provide many of the same functions that wetlands provide. In fact, many vegetated buffers will be wetlands. Due to their proximity to open waters, vegetated buffers are more effective at protecting open waters than wetlands distant from those open waters. We have refined the following list of the functions of vegetated buffers from the list of functions published in the July 21, 1999, Federal Register notice. In general, vegetated buffers next to streams and open waters provide the following functions: (1) Reduce adverse effects to water quality by removing nutrients and pollutants from surface runoff; (2) reduce concentrations of nutrients and pollutants in subsurface water that flows into streams and other open waters; (3) moderate storm flows to streams, which reduces downstream flooding and degradation of aquatic habitat; (4) stabilize soil (through plant roots), which reduces erosion in the vicinity of the open waterbody; (5) provide shade to the waterbody, which moderates water temperature changes and provides a more stable aquatic habitat for fish and other aquatic organisms; (6) provide detritus, which is a food source for many aquatic organisms; (7) provide large woody debris from riparian zones, which furnishes cover and habitat for aquatic organisms and may cause the formation of pools in the stream channel; (8) provide habitat to a wide variety of aquatic and terrestrial species; (9) trap sediments, thereby reducing degradation of the substrate that provides habitat for fish and other aquatic organisms (e.g., some fish species depend upon gravel stream beds for spawning habitats); and (10) provide corridors for movement and dispersal of many species of wildlife. In addition, vegetated buffers next to streams provide flood storage capacity and groundwater recharge functions. Although we are requiring the establishment and maintenance of vegetated buffers in uplands next to open waters as compensatory mitigation for certain activities, we expect to continue our documented programmatic no net loss of wetlands approach to the regulatory program. For most activities authorized by NWPs, vegetated buffers will only be a portion of the required compensatory mitigation. Moreover, where the project involves filling wetlands, vegetated buffers will only be required after a 1:1 ratio based on acreage of wetland mitigation has been required. Only \1/3\ of the additional mitigation required for the project may be non-wetland vegetated buffers. The vegetated buffer requirement for the NWPs is not contrary to the 1990 mitigation MOA, because vegetated buffers next to open waters help achieve the goals of the Clean Water Act. It is also important to note that the 1990 mitigation MOA applies only to activities subject to the standard permit process. One commenter requested clarification as to where vegetated buffers must be located. A few commenters disagree with the Corps position that vegetated buffers adjacent to waters of the United States provide benefits for the aquatic environment. One commenter requested that the Corps explain why vegetated buffers are necessary and specify the goals that will be accomplished by vegetated buffers. This commenter said that the goals of vegetated buffers will affect width requirements. This commenter also believes that not all areas adjacent to open waters provide significant benefits to water quality and that all vegetated buffers do not perform all 10 functions listed on page 39274 of the July 21, 1999, Federal Register notice, because the functions of vegetation buffers are dependent on the vegetation present and site and soil characteristics. For the purposes of the NWPs, vegetated buffers are to be established and maintained on uplands or wetlands next to perennial and intermittent streams and other open waters. The functions and values of vegetated buffers next to open waters, especially forested riparian zones next to streams, are well documented in the scientific literature. The main goal of the vegetated buffer requirement is to restore, enhance, and protect open waters. In general, properly designed and implemented vegetated buffers, especially those inhabited by trees, will perform the functions listed above. Since we are not requiring vegetated buffers next to ephemeral streams, most vegetated buffers should have adequate amounts of water to naturally establish and support trees in the riparian zone. Vegetated buffers will normally be 25 to 50 feet wide on both sides of streams, but the district engineer can require wider vegetated buffers to address documented water quality concerns. A 25 to 50 foot wide vegetated buffer next to a stream provides important aquatic habitat functions and values, as well as substantial water quality benefits. Many commenters believe that the vegetated buffer requirements for the new and modified NWPs exceed the Corps regulatory authority. Several commenters consider the vegetated buffer requirement as an attempt to expand the scope of the Corps jurisdiction to uplands. Numerous commenters indicated that the Corps is requiring vegetated buffers even if the work does not involve discharges of dredged or fill material into waters of the United States. Many commenters said that any vegetated buffer requirements should be imposed by the states, who have authority under Section 401 of the Clean Water Act to address water quality issues. Several commenters said that vegetated buffers could also be imposed by states through the requirements of the National Pollutant Discharge Elimination System program. The Corps has the statutory authority to require vegetated buffers next to streams and other open waters because the goal of the Clean Water Act is to restore and maintain the chemical, physical and biological integrity of Nation's waters. This goal is stated in Section 101 of the Clean Water Act and is applicable to all sections of the Clean Water Act, including section 404. Vegetated buffers next to streams and other open waters help maintain the chemical, physical, and biological integrity of these waters. The establishment and maintenance of vegetated buffers next to streams is the [[Page 12834]] restoration of riparian zones. Discharges of dredged or fill material into waters of the United States, which the Corps regulates under section 404 of the Clean Water Act, result in the loss of aquatic resource functions and values. The establishment and maintenance of vegetated buffers next to streams and other open waters offsets losses of aquatic resource functions and values and reduces degradation of these aquatic resources. The vegetated buffer requirement is not an attempt to expand the Corps regulatory jurisdiction. We are not asserting jurisdiction over uplands next to streams and other open waters. We cannot require compensatory mitigation for upland impacts, but we can require, as compensatory mitigation, upland vegetated buffers that restore or protect aquatic habitat and water quality. The establishment or maintenance of a vegetated buffer next to waters of the United States can be an important part of the compensatory mitigation required for a Corps permit. The establishment and maintenance of vegetated buffers next to open waters can be considered as compensatory mitigation that offsets losses of waters of the United States and ensures that the adverse effects of the authorized work on the aquatic environment are minimal. Vegetated buffers are not normally required for activities that do not involve discharges of dredged or fill material into waters of the United States. For example, vegetated buffers are not required for structures in navigable waters of the United States, unless the district engineer determines that such compensatory mitigation is necessary to offset impacts to those waters. Vegetated buffers next to streams and other open waters do more than protect water quality. Eight of the 10 functions listed in the July 21, 1999, Federal Register notice relate to aquatic habitat. Only two functions listed in that notice exclusively addressed water quality functions. Likewise, most of the functions of vegetated buffers listed in this Federal Register notice are aquatic habitat functions. Commenters objecting to the vegetated buffer requirement focused only on the water quality functions of vegetated buffers, and ignored the aquatic habitat functions. A number of commenters stated that the vegetated buffer requirement duplicates, and may conflict with, local land use planning. Two commenters said that the vegetated buffer requirement is contrary to 33 CFR 320.4(j)(2), which states that the primary responsibility for zoning lies with state, local and Tribal governments. Many commenters believe that the vegetated buffer requirement constitutes a taking of private property. Two commenters said that the vegetated buffer requirement has the potential to result in a taking of private property because the Corps has failed to demonstrate the causal link between the vegetated buffer requirement and specific water quality concerns caused by discharges of dredged or fill material into waters of the United States authorized by the NWPs. These commenters assert that the Corps must allow alternative methods to address water quality concerns. The vegetated buffer requirement does not duplicate or conflict with local land use planning. Although some state and local governments have vegetated buffer requirements, there are many regions that do not have such requirements. The district engineer will consider state and local vegetated buffer requirements when determining the vegetated buffer requirements for NWP activities. If the state or local vegetated buffer requirements are adequate, then the district engineer can defer to those requirements. The vegetated buffer requirement is not contrary to 33 CFR 320.4(j)(2) because it does not override state or local zoning decisions. If it is impractical for the permittee to establish and maintain vegetated buffers next to open waters on the project site, then vegetated buffers are not required. If the project proponent does not want to establish and maintain vegetated buffers and the district engineer determines that such buffers are necessary to ensure the proposed work results in minimal adverse effects on the aquatic environment, then the project proponent can request an individual permit or other form of DA permit. The vegetated buffer requirement does not constitute a taking of private property because it is compensatory mitigation to offset losses of aquatic resource functions and values. If the project proponent does not want to establish and maintain vegetated buffers next to open waters on the project site, then he or she can request another form of DA permit to authorize the activity. The removal of nutrients, sediments, and pollutants from surface and shallow subsurface waters by vegetated buffers next to open waters is well documented in the scientific literature. The establishment and maintenance of vegetated buffers is a type of out-of-kind compensatory mitigation to offset authorized losses of wetlands and other waters of the United States, which also remove these chemical compounds from waters. The vegetated buffer requirement is no different than requiring the alteration of uplands to create wetlands as compensatory mitigation for losses of wetlands. In fact, the establishment and maintenance of vegetated buffers next to streams and other open waters is likely to be more successful and less costly than attempting to create wetlands by grading and altering uplands. When reviewing compensatory mitigation proposals, district engineers can consider alternative forms of compensatory mitigation to address water quality concerns, if vegetated buffers are not practical for the project site. Several commenters opposed the vegetated buffer requirement, stating that it substantially reduces the amount of developable area on a parcel of land. Two commenters said that the vegetated buffer requirement will be difficult to implement for those projects that have already received subdivision approval. These commenters also assert that this requirement will increase the cost of housing. Several commenters said that the establishment and maintenance of vegetated buffers is practical only in large, open spaces. One commenter stated that the vegetated buffer requirement will increase sprawl development because it requires buildings to be constructed farther apart from each other. Although the vegetated buffer requirement may reduce the amount of developable land on a particular parcel, we do not agree that such a reduction will be substantial. In most situations, vegetated buffers will be located in 100-year floodplains, in which there are often state or local building restrictions. If it is impractical for the project proponent to establish and maintain vegetated buffers on the property because of prior subdivision approval, then the district engineer can determine that vegetated buffers are not required. We do not agree that the vegetated buffer requirement will increase the cost of housing more than any other type of compensatory mitigation requirement, such as the creation of wetlands. In most circumstances, establishing and maintaining vegetated buffers will be less costly than grading land to create wetlands. The vegetated buffer requirement will not encourage sprawl development. One commenter believes that the Corps needs to provide a cost- benefit analysis for the vegetated buffer requirement. This commenter also stated that this requirement requires an environmental impact statement because it is a major Federal action. The vegetated buffer requirement does not need a cost-benefit analysis or an environmental impact statement. In the July 21, 1999, Federal Register notice, we stated that vegetated buffers [[Page 12835]] will normally be 50 to 125 feet wide, but provided district engineers with the flexibility to impose narrower or wider vegetated buffers. Many commenters stated that the widths of vegetated buffers required for NWP activities should be based on the width necessary to ensure that the adverse effects to the aquatic environment are minimal. These commenters said that permit conditions, including mitigation requirements, must be directly related to impacts of the proposed work and appropriate to scope and degree of those impacts. One of these commenters cited 33 CFR 325.4(a). Another commenter cited 33 CFR 320.4(r) and remarked that the Corps has not demonstrated that vegetated buffers provide compensatory mitigation for identifiable losses of resources. Numerous commenters said that the requirement for 50 to 125 foot wide vegetated buffers would, in some cases, result in compensatory mitigation requirements that would exceed the impacts of the activity. Two commen