SENATE BILL REPORT

                  ESSB 5875

                     As of January 8, 1996

Title:  An act relating to wetlands mitigation banks.

Brief Description:  Regulating wetlands mitigation banks.

Sponsors:  Senate Committee on Ecology & Parks (originally sponsored by Senators Fraser and Fairley).

Brief History:

Committee Activity:  Ecology & Parks:  2/21/95, 3/1/95 [DPS]; 1/11/96.

Passed Senate, 3/11/95, 48-0.

SENATE COMMITTEE ON ECOLOGY & PARKS

Staff:  Kari Guy (786-7437)

Background:  It is estimated that over half of Washington's wetlands have been lost to human development since statehood, although there is great regional variation in these losses.  Some coastal and Puget Sound estuarine systems have lost nearly all their original wetlands, while many areas in Eastern Washington have experienced an increase in wetlands from irrigation systems.

The loss of wetlands in the state and nationally have led to enactment of regulatory programs to protect remaining wetlands.  These regulatory programs in Washington are administered under a variety of laws and by agencies at the local, state and federal level.  Most wetland regulatory laws are administered with a "hierarchy" of preferred alternatives, beginning with impact avoidance, then impact minimization, restoration, and, finally, "compensation" for wetlands impacts by creating or restoring other wetlands.  These laws are also generally administered under a "no net loss" goal.

While the "compensation" alternative is generally the least preferred, in many high growth areas with limited land availability such a compensatory approach may be the only alternative available that would allow a project to go forward.  Wetlands have been created and other degraded wetlands restored in a variety of settings as "compensatory" mitigation, and the long-term prospects for such wetlands are improving as knowledge is gained with each compensatory project effort.

It has been suggested that wetland mitigation "banks" may provide a useful compensatory tool, by which project proponents may obtain "credits" for wetlands creation or restoration as compensation for wetlands impacts to be caused by their project.  The monetary payment or other contribution by project proponents to the wetland bank owner provides a source of financing for further wetlands creation and for long-term monitoring and maintenance of the wetlands in the bank.  Such wetlands may thus have a greater likelihood of long-term viability than smaller, isolated wetlands created as compensation for individual projects.

The Washington Department of Transportation recently entered an interagency memorandum of agreement with several state and federal wetland regulatory agencies, creating a wetland bank to provide greater flexibility in obtaining transportation project approvals where wetlands impacts will occur.  King County is also developing a bank system available initially for county public works agencies, and other local jurisdictions and private landowners are exploring the potential of creating or restoring wetlands to serve as a "bank" for mitigation requirements.

Summary of Bill:  Legislative findings are made regarding the benefits of wetlands mitigation banking to wetland protection and in providing additional alternatives to allow projects to be approved which involve wetlands impacts.

A government entity operating or proposing to operate a wetland mitigation bank may request that the Department of Ecology initiate discussions with other state agencies and local governments with wetland regulatory jurisdiction in the area regarding entering an interagency agreement to consider credits from the bank in the review of permit applications proposing the use of such credits. The requesting entity must demonstrate that the bank satisfy certain minimum criteria:  the wetlands functions achieved by the bank area; that there is a long-term plan for maintenance of bank wetlands; the land is dedicated to wetlands conservation in the property title; and that provision for monitoring is made.

The agencies must use their best efforts to enter an agreement within one year.  Agreements should address: (1) methods for uniform consideration of bank credits and debits among wetland regulatory agencies; (2) consistent methods of wetland boundary delineation and measurement of functional values, provided that the delineation process by an agency not be more stringent than that adopted by the U.S. Army Corps of Engineers; (3) uniform guidelines for acreage ratios, other methods to compensate for uncertainties, and required proximity of the bank to wetland impacts in projects; and (4) procedures for integrated review by multiple regulatory agencies.

The department must seek federal agency participation in the interagency agreement.

Existing wetlands banks are not affected.  The Washington Department of Transportation wetlands mitigation bank is expressly recognized.  A biennial progress report on the program is provided by Ecology to the Legislature.

Appropriation:  None.

Fiscal Note:  Requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.