1. Columbia River 49 Years of Removal-Fill Regulation (1967-2016); Why Hasn’t Oregon Assumed

2. Oregon Statistics
million ac. wetlands/62 million ac. total land area
2% of land area is wetland/population 4 million

3. State Program Began 1967 to Protect Salmon Habitat by Regulating Gravel Removal

4. :Early Years
State statute amended to regulate placement of fill in waters and intermittent stream and wetland jurisdiction added.
For Oregon and other state and local wetland permit programs that pre-dated the Clean Water the overlap between the federal 404 program and state programs was awkward.
1977 Clean Water Act Section 404(g) allowed states/Tribes to assume the 404 program.

5. 1981-1982:First Study Oregon received a pilot grant from EPA.
Developed a 404 program.
The state and federal programs were determined to be equivalent by the Oregon Department of Justice.
Sought legislative approval.

6. 1983: First Attempt Failed
DSL submitted proposed legislation to conform state law to federal jurisdictional standards to address state legal deficiencies but it died in committee.
Bill opposed by environmental groups:
Concerned that state assumption would result in the loss of one avenue of public review.
Funding for additional staff not guaranteed
Environmental groups are skeptical the state could/would do a good job.

7. 1988:Second Study
DSL funded a study on 404 assumption that concluded there were not enough perceived benefits/program improvements to justify the increased costs.
DSL’s regulatory program manager concluded that EPA needed to sweeten the deal by providing funding without strict overview and allow the state to assume all wetlands.

8. 1989 Significant Program Expansion
Recommendations were enacted in 1989.
Key provisions of the legislation included:
Development of a statewide wetland inventory,
Strengthening of state mitigation requirements and
Establishment of standards for wetland conservation plans to unite the state removal-fill program with local government efforts to protect wetlands through comprehensive planning.

9.
Legislature mandated the Department to apply to EPA to assume the 404 program and to receive approval by June 30, 1997 or
DSL would be barred from exercising its permitting authority whenever the Corps required an individual permit under Section 404.
DSL submitted a complete draft application package to EPA in December 1995.

10. 1996 (Third Study)
Staff concluded that 404 assumption would result in a 20% increase in the workload.
Four new field positions and one administrative support position were recommended.
Would have resulted in an increase in field staff from (currently have over 30).

11. 1997: Second Attempt Failed
No strong consensus for assumption among internal and external stakeholders.
Awareness of the numerous complexities and increased costs involved.
DSL opted to develop draft legislation that would direct it to continue to pursue streamlining, and would repeal the provision reducing the Department’s authority and repeal the July 1, 1997 deadline to assume the program.
The Department continued down two tracks: continue to pursue assumption but also work with the Corps to develop an SPGP.

12.
The perception of some applicants was that they would get a “better deal” from the Corps than from the state because the state’s program was stronger
Example, National Mining Association et al. v. U.S. Army Corps of Engineers, 145 F.3d 1399 (D.C. Cir. 1998) which invalidated and set-aside the Tulloch Rule). “Incidental fallback” was no longer a covered discharge which drew into question the Corps’ jurisdiction over removal.

13. (continued)
DSL still continued to work on 404 legislation with a large consensus group while it worked with the Corps to develop the Programmatic General Permit (PGP) for Douglas and Linn Counties. The PGP went into effect on September 8, 1998 and expired on September 7, 1999.
Some applicants found the PGP to be beneficial but a key weakness is that the PGP did not have a programmatic approach to ESA compliance so the Corps continued to process applications the same way.

14. 2001: Success/Failure
DSL’s work with the stakeholders paid off and assumption efforts got a huge boost with the passage of SB 172.
It made all the statutory changes required for state program equivalency BUT it required another legislative approval to allow the state to actually assume the 404 program.

15. Third Attempt (continued)
This latter requirement killed the momentum and assumption efforts stalled out.
The agency instead put all its resources into developing an SPGP with the Corps—BIG MISTAKE!—lost focus.

16. 2005:Fourth Attempt Failed
HB 2082 was introduced as part of the Governor’s streamlining and regulatory reform package.
This legislation was to have granted final approval to DSL to assume administration of the Section 404 program.
The bill was referred to House Water Committee but it never received a hearing and died in committee due to lack of strong support and no pushback push back against opponents

17. 2010 (ESA-Breakthrough)
EPA announced that is would not conduct a consultation on a assumed program at the time of program transfer (December 2010 EPA sent a letter to the Environmental Council of the States and ASWM).
EPA also said it would not consult on state-issued 404 permits--in other words; there will be no federal lead agency for Section 7 ESA consultation.
Non-federal applicants may elect to apply for a permit under Section 10 of the federal ESA for “incidental” take of listed species, or comply with state permit conditions, or follow BMPs in applicable programmatic consultations.

18. 2012-2013 The Department renewed its effort to assume the 404 program.
We have a draft MOA with the Services but no solution to the problem of how to achieve ESA compliance with state-issued 404 permits and provide “take” protection to applicants.
We also experienced challenges in reaching agreement with the Corps on what waters are assumable by the state.

19. Present Situation (Hiatus)
404 assumption efforts were put on hold just prior to the 2013 Legislative Session
Challenges going forward are:
ESA compliance
Determining assumable waters
Making sure that the program delivers real, tangible streamlining for applicants.
An assumed program would require a small increase in staff; this would raise the issue of a new source of additional revenue (unidentified at this time).

20. 2017 and Beyond— Still Hopeful 2019??
Function-based accounting for wetland and stream mitigation has taken priority over 404 Assumption.
2008 Mitigation Rule required a Federal response.
Our program is cooperating with Corps and EPA on developing the program; tying up resources.
For this reason there was no 404-assumption Legislative Concept (LC) developed for the 2017 session.
We may take another swing at it during the 2019 session.