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        Wetlands Categorization There has been interest over many years      in revising the Section 404 regulatory program to base decisions more on      the relative values of wet lands as determined in advance based on the type      or condition of the wetland. In response, several approaches have been proposed      to classify or "categorize" wetlands based on their relative value, with      commensurate levels of regulatory protection assigned to each wetland category.      
Issues

Categorization proponents believe wetlands regulation would be improved        by focusing agency resources on protection of the most valuable wetlands.        Categorization proponents also believe this approach could provide greater        consistency and predictability in the permit review process and reduce        regulatory burden for activities in lower value wetlands.

However, there is concern that such a hierarchical approach to wetlands        protection may result in "writing off" low value wetlands and increase        the potential for wetlands "takings" claims for high value wetlands.        Related concerns include the complexity of evaluating wetland functions        and values and the inadequacy of existing methods to do so. In addition,        some feel that catego rization would lead to increased reliance on mitigation.

State experience indicates that categorization programs require substantial        time and financial resources to implement.

Current Status

Wetland values are currently assessed on a case-by-case basis in the        Section 404 permit review process. The level of review is commensurate        with severity of the environmental impact, requiring consideration of        both the relative value of the wetland *and* the impacts of the proposed        activity. For many in the regulated community, however, this approach        does not provide sufficient predictability or certainty.

In the mid-1980s, efforts to categorize wetlands nationally were abandoned        because of scientific uncertainties. Some States, including New York,        Maine, and Vermont, have applied categorization within their wetlands        protection programs. Alternatively, some States are establishing wetland        categories as they incorporate wetlands into their water quality standards        programs.

It has been found that categorization works most effectively in the context        of local or regional watershed planning initiatives where the relative        value of wetlands within the context of a particular watershed can be        more accurately assessed.

 

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