The work of wetland credit markets: two cases in entrepreneurial wetland banking

Wetland banking has been discussed in the policy literature mainly at a high level of abstraction, using economic models or generic examples to illustrate the concepts and tensions within wetland banking. This article illustrates two cases of wetland bank creation in-depth using the methodology of the extended case study, following the process from the initiation of interest in forming a bank through to the approval of credits for sale. The close attention to actual cases serves to move discussion beyond the goodness of models or the supposed rationality of economic actors, towards a consideration of actual market participants in complex situations. Successful wetland credit producers must negotiate a number of different economic, political, interpersonal, and ecological forces which impact their project from a number of different scales. While no optimal solution to this complexity is likely to be reached that is generalizable, the use of entrepreneurial wetland banking as a market-based policy may expand where skillful bankers and regulators together arrive at adequate solutions that are matched to the specificity of their contexts.

Impacts of section 404 permits requiring compensatory mitigation on wetlands in California (USA)

We analyzed data from Section 404 permits issued in California from January 1971 through November 1987 that involved impacts to wetlands and required compensatory mitigation (wetland creation, restoration, or preservation). The purpose of this study was to determine patterns and trends in permitting activity and to document cumulative effects of associated management decisions on the California wetland resource. The 324 permits examined documented that 387 compensatory wetlands (1255.9 ha) were required as mitigation for impacts to 368 wetlands (1176.3 ha). The utility of the data on wetland area was limited, however, since 38.0% of the impacted wetlands and 41.6% of the compensatory wetlands lacked acreage data. The wetland type most frequently impacted (37.8% of impacted wetlands) and used in compensation (38.2% of compensatory wetlands) was palustrine forested wetlands. Estuarine intertidal emergent wetlands had the most area impacted (52.3%) and compensated (62.5%). The majority of the wetlands were small (less than or equal to 4.0 ha in size). Wildlife habitat was the most frequently listed function of impacted wetlands (90.7% of the permits) and objective of compensatory wetlands (83.3%). Endangered species were listed as affected in 20.4% of impacted and 21.0% of compensatory projects. The number of permits requiring compensatory mitigation and the number of impacted and compensatory wetlands increased from 1971 to 1986.Documentation of the details of Section 404 permit decisions was inadequate for the permits we examined. Area information and specific locations of impacted and compensatory wetlands were lacking or of poor quality. Follow-up information was also inadequate. For example, project completion dates were specified in the permit for only 2.2% of compensatory wetlands. Furthermore, less than one-third (31.5%) of the permits required the compensatory wetland to be monitored by at least one site visit. We recommend improved documentation, regular reporting, and increased monitoring for better evaluation of the Section 404 permitting system.     

Ecosystem health: an example of implications arising from regulations under the Canadian Environmental Protection Act (CEPA), and the importance of setting precedent

Ecosystem health is a key principle which underlies the Canadian Environmental Protection Act (CEPA). This act is designed to protect human health and the environment from harmful and/or irreversible effects by providing a cradle-to-grave regulation of toxic substances.As an example of the application of this act, this contribution considers the most toxic dioxins and furans which are generally associated with Kraft pulp mill effluents. These are some of the first substances to come under the CEPA legislation. The proposed CEPA regulations for dioxins and furans are based on end-of-pipe control, which would effectively limit their concentrations in effluent to something close to measurable levels. Depending on sample matrix and methodology, however, measurable levels may differ considerably.Evidence presented at the Alberta-Pacific (ALPAC) pulp mill hearings in Alberta and the Northwest Territories during 1989 demonstrated that total loading are particularly important in dealing with the far-field effects of these extremely toxic, persistent, and bioaccumulating substances. Further, it was reported that there might be no threshold of effect for tetrachlorodibenzo-para-dioxin (2, 3, 7, 8, TCDD) or the companion furan. If such evidence is correct, the CEPA regulations should be designed to achieve zero discharge of these contaminants. Measurable levels, as presently defined in the CEPA regulations, may be in excess of zero discharge requirements.Clearly, such inconsistency may cause problems and should be addressed directly. Unfortunately, the first draft of the CEPA regulations represents a piecemeal approach. In this, it is unfair to industry, it is scientifically inadequate, and it may not be enforceable. The application of CEPA regulations for the pulp and paper industry will set a new precedent for Canada's approach to ecosystem health. It is therefore essential to base decisions on a good under-standing of the dynamics and effects of chemicals in ecosystems and to re-evaluate, carefully, the toxicities of key contaminants. Interim measures are likely appropriate.