Florida's Vanishing Wetlands and the Failure of No Net Loss
By Craig Pittman and Matthew Waite
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  Ch. 9
  The Myth of Mitigation
  
  This is how no net loss really works:
  
  Florida’s  Panhandle is known for its sugar-white beaches and its picturesque  dunes. But amid the dunes on Pensacola   Beach lie scattered marshlands,  lush with saltmeadow cordgrass and pennywort. These marshes are  vital to the purity and health of the emerald green waters of nearby Santa Rosa  Sound, home to a plethora of sea trout, redfish, ladyfish, and jack crevalle.
  
  In 1997, a development company with control of 28 acres of  the beach proposed  building a $250-million luxury condominium project called Portofino.  The plans called for building five towers, each with 150  units, each 21 stories tall. The Portofino  condos would be the tallest buildings between Tallahassee and New Orleans.
  
  The two main partners in the company building Portofino  were lawyer Fred
  Levin, a leading Democratic Party fundraiser with close  friends at all levels
  of government, and his brother Allen, one of the Panhandle’s  most successful
  developers. Fred Levin’s name carried a lot of weight in Florida.  He used
  his political contacts to score a multimillion-dollar fee  from a major tobacco
  case, then made such a hefty donation to the University   of Florida that the law
  school was named in his honor. He gained further fame by  helping to manage
  the career of boxing champion Roy Jones Jr.
  
|  [Photo: Lara Cerri, St. Petersburg Times] Clean Water Network activist Linda Young walks through sparsely vegetated man-made marshes on Pensacola Beach that were supposed to mitigate the destruction of wetlands to build the Portofino condominiums, seen in the background | 
  Fred and Allen Levin grew up on Pensacola   Beach, where their father once
  held the exclusive concession contract for selling snacks  and souvenirs to the
  tourists. Back then Pensacola   Beach was a sleepy little resort  village with scattered
  mom-and-pop motels and lots of one-story concrete-block  homes available
  for rent by the week or month.
  
  But the Levins’ minds were not fogged by nostalgia. They saw the beach
  as a resource to be exploited. Still, they appreciated the  role nature played in
  making the property attractive to buyers. So they planned to  preserve several
  of the picturesque dunes as part of their project—but not  the marshes that
  were so important to the sound. Those did not fit the  Levins’ aesthetic vision.
“When we did our development, we could not do a development  on this
acreage without impacting some wetlands,” Allen Levin told  us. They did not
want to shift their buildings around to keep the marshes  intact, he said, “because
  then the buildings would be right on top of each other, and  we liked the
  distance.”
  
  Of the 11 acres of marsh on the site, the Levins asked the Corps for a permit
  to dump fill into 6.5 acres—in other words, more than half.
  
  Other federal agencies lined up to oppose the Levins’ plans. The U.S.  Fish
  and Wildlife Service strongly objected to wiping out the  marshes. So did the
  EPA and the National Marine Fisheries Service. They all said  those wetlands
  were too important to keeping Santa Rosa Sound clean and  full of fish.
  Beach residents opposed the Levins’ project too. It was too  big, too gaudy,
  too vulnerable to hurricanes, they said. It didn’t fit their  low-profile neighborhood
  and would cause all kinds of traffic problems, they warned.  A residents’
  group even sued the developers over whether they could alter  the land. Shortly
  after the Corps published a public notice in 1998 about Portofino’s  404 application,
  the residents petitioned the Corps to hold a public hearing.
  
“We kept writing, we kept calling,” recalled beach resident Jean Kuttina, who
led the neighborhood opposition. “We had several letters of  objection, we had
the lawsuit going. None of it did any good.”
  
  In 1999 an environmental activist named Linda Young, a Panhandle native
  who headed up the Florida  chapter of the Clean Water Network, persuaded a
  top Pentagon official in the Clinton Administration to tour  the site. She was
  hoping to persuade him to block the project. She recalls  Deputy Assistant Secretary
  of the Army Michael Davis walking around the beach as she  talked to
him. Then, she said, Davis  told her, “This project does not need to happen.”
“He was adamantly opposed to it,” Young recalled. “But then  he went back
  to D.C. A few weeks went by, and I called him. And he said,  ‘I can’t stop this
  project. These people are too powerful.’”
Davis remembers  the tour and remembers thinking Portofino  was a bad
  idea. But he denies telling Young the well-connected Levins  were too powerful
  to stop. “I would’ve never said those words,” he insisted.  Instead, he said,
  he probably made some comment about the permitting process  being too far
  along for even the Pentagon to halt it.
Allen Levin told the Pensacola News Journal that the last  thing he wanted
  to leave behind was a legacy of environmental destruction.
 “Somebody would have  to be a total jerk to want to hurt the environment,”
  he said. “It doesn’t make sense. Good developers won’t do  that. I really believe
  in this project we are putting more back in than we are  taking out.”
The Levins promised to build new man-made wetlands to  replace the ones
  they were destroying. The mitigation would make it all okay,  they said. However
  the wildlife service predicted the beach wetlands were just  too delicate to
  be duplicated. That’s why the agency urged the Corps to say  no to the permit.
“We told them it would be almost impossible to mitigate,”  said Hildreth
  Cooper, a Fish and Wildlife Service biologist. “We told them  they should either
  deny the permit or admit they can’t mitigate for it.”
  Even trying to preserve some of the wetlands on the site  wouldn’t work,
  the wildlife agency predicted. Past attempts by beach  developers to save a few
  marshes while destroying others had cut off the flow of  water, starving the
  marshes that remained.
The Corps permit reviewer in the Pensacola  office, a dutiful bureaucrat
  named Lyal “Clif ” Payne, spent two years struggling to save  the wetlands and
  still make the developers happy. He didn’t want to approve  the permit the way
  it was, but he didn’t want to deny it either. So he kept  suggesting changes that
  might make the Levins’ project more palatable: Cut the  number of buildings
  back to three? Add even more mitigation? Nothing worked.
The developers weren’t too thrilled with even preserving  some of the marsh
  in its natural state, telling Payne at one point that the  wetlands “would be managed
  to remove the unsightly effect they have on (their)  surroundings.”
Finally, frustrated with what he saw as Payne’s hemming and  hawing, Allen
  Levin had a heart-to-heart conversation with Payne’s bosses  in Jacksonville.
“When it finally got to the very higher-ups, we were finally  able to get some
  relief,” he said.
Corps officials decided the agencies objecting to the  project were off base,
  and so in August 2000 they approved the permit. The Corps  did order two
  small marshes on the project site to be preserved. They  allowed the rest to be
  wiped out by the Levins’ condo project.
For mitigation, the Corps approved the creation of man-made  wetlands on
  county-owned land, along with a little something extra. In  October 1995, when
  Hurricane Opal made landfall at Pensacola   Beach, the storm had knocked
  down most of the big dunes and washed them across the  island, leaving a thick
  layer of sand across the property next door to Portofino.  Requiring the Levins
  to build their mitigation there would not only replace the  natural marshes, the
  Corps concluded. It would also result in all that sand being  dug up and used to
  rebuild the destroyed dunes, thus benefiting the whole  island.
On the same day the Corps issued the permit, its top official  in Florida, Col.
  Joe Miller, notified all the residents who had asked for a  public hearing that
  there wouldn’t be one. The next day, Miller retired from the  Army.
The Corps’ behavior left a bad taste in Kuttina’s mouth.
“They’re destructive people,” she said. “They’re not really  going to save anything.”
  By July 2004, when we toured the site with Linda Young,  three of the towers
  had been built and occupied and the other two were under  construction. They
  loomed above one-story houses next door. Sales were brisk,  with some units
  selling for more than $500,000.
But the man-made wetlands that the Levins had built looked  nothing like
  the lush natural ones they had wiped out. Most of the year  they were bone dry,
  until heavy rains hit. Then stagnant water puddled up two  inches deep, the
  surface broken every foot or so by a few strands of thin  brown grass.
“There’s no way that mitigates for the adverse impacts that  project is having,”
  grumbled Young. She slipped off her shoes and splashed  through the standing
  water, then giggled and pointed out that the straggly sprigs  of grass looked like
  a bald man’s hair implants.
“It’s not exactly what you’d call thriving,” she said.
Two months later, something entirely predictable happened.
On September 16,   2004, Hurricane Ivan roared through the Panhandle. The
  storm knocked down the dunes that Portofino  had recreated, sweeping the
  sand across the highway and deep into the lobby of the  condos. The sand also
  spread across the same areas of the beach that Opal had  covered a decade
  before. The thick layer of sand that Ivan dumped on the  man-made marshes
  smothered them. It was as if they had never been built.
Since the man-made wetlands were destroyed through a natural  disaster,
  the Corps would not make the Levins rebuild them, Payne told  us. The failure
  was not the Levins’ fault, he said. Actually, he explained,  the Corps considered
  it an act of God.
So to sum up: wetlands that were crucial to the health of  Santa Rosa Sound
  and its sea life were filled in and paved over because saving  them didn’t fit the
  plans of some powerful people. The federal agency that was  supposed to save
  them instead bent over backwards to aid their destruction.  The developers’
  attempt to make up for the damage failed, and their failure  carried no consequences.
Yet in the Corps’ recordkeeping, the Portofino  project was a success. There
  was no net loss of wetlands.
  _
What happened at Portofino  illustrates both the myth of mitigation and its
  consequences.
On paper, filled-in wetlands are being replaced and everything  balances out.
  In reality, they are swept aside by the works of man and  nothing makes up for
  them. Development races across the land with all the speed  and power of a
  hurricane hitting a beach, and the attempts to replace what  it destroys usually
  result in expensive failures.
  
  “Mitigation,” Vic Anderson said with his usual bluntness,  “is a fraud.”
  In the case of Portofino,  the loss of wetlands was on a small scale. Many
  man-made wetlands are what are commonly called “postage  stamp wetlands”—
  small mitigation sites, often built in a new subdivision  near the site where the
  natural wetlands were destroyed. Those used to be the  standard requirement
  for 404 permits, but not any more.
 “A lot of the  postage-stamp wetlands have not proven viable,” veteran Corps
  biologist Chuck Schnepel told us. Ultimately, he said,  “they’re used as a playground,
  or as dumping grounds. Or they become invaded by noxious or  exotic
  vegetation.” Usually the developer dumps the job of  maintaining them on
  a homeowners association, which has no idea that it’s  responsible or what to
  do about it. Eventually the man-made marsh becomes a  cattail-choked mud
  puddle.
When the panel from the National Research Council reviewed  the sorry
  state of mitigation in America,  the panel declared in its 2001 report: “In many
  cases this approach has resulted in the creation of open  water areas as compensation
  for loss of intermittently inundated or saturated wetlands.  . . . The
  stable-water pond has come to typify mitigation efforts in  many parts of the
  country.”
Such ponds—the same ones that Gale Norton insisted were  being given a
  bad rap—“will not replace the functions provided” by natural  wetlands, the
  NRC concluded. According to the flawed survey produced for  Gale Norton’s
  announcement, quite a few of those ponds started off as Florida  mitigation
  wetlands.
Those are the small mitigation projects. But now look what  happens when
  phosphate mining companies spend 30 years digging up  thousands of acres of
  Central Florida land to get the  ingredients for fertilizer—and then try to make
  up for such vast destruction.
First discovered by a Corps of Engineers captain in 1881, Florida’s  phosphate
  deposits today form the basis of an $85-billion industry  that supplies threefourths
  of the phosphate used in the United    States.
To get at the underground deposits, the miners use a  dragline with a bucket
  the size of a truck. It scoops up the top 30 feet of earth  and dumps it to the side
  of the mine pit. Then the dragline scoops out the underlying  section of earth,
  which contains phosphate rocks mixed with clay and sand. The  bucket dumps
  this in a pit where high-pressure water guns create a slurry  that can then be
  pumped to a plant up to 10 miles away.
At the plant, the phosphate is separated from the sand and  clay. The clay
  slurry is pumped to a settling pond, and the phosphate is  sent to a chemical
  processing plant where it is processed for use in fertilizer  and other products.
  The sand is sent back to the mine site to fill in the hole  after all the phosphate
  is dug out.
A byproduct of the processing, called phosphogypsum, is  slightly radioactive
  so it cannot be disposed of easily. The only thing the  miners can do with it
  is stack it into mountainous piles next to the plant. Florida  is such a flat state
  that the 150-foot-tall “gyp stacks” are usually the highest  point in the landscape
  for miles around.
When phosphate miners destroy a wetland, they promise to  replace it a few
  decades later when they’re finished—a seemingly impossible  task. After all, as
  Florida  wetlands expert Kevin Erwin told us, “You’re really talking about creating
  wetlands after 60 to 80 feet of earth have been souffléed.”
The odds against success are higher than any gyp stack.  Forty percent of the
  land that’s left behind after mining is covered by the clay  settling ponds. Within
  five years a crust forms on top of the ponds, but the stuff  under the crust remains
  about as hard as a bowl of chocolate pudding. That means the  old clay
  settling areas are too unstable for building or for anything  else. Meanwhile the
  sand-filled pits drain too fast to hold water—a serious  problem for any wouldbe
  wetland.
The idea of requiring the miners to try to re-create  wetlands seemed reasonable
  in the late 1970s. Col. James W. R. Adams, the district  engineer in Jacksonville
  from 1978 to 1981, told us he had denied 404 permits for  several phosphate
  mining companies and was catching a lot of heat for it  because phosphate was
  viewed as important to maintaining the nation’s balance of  trade.
“I had all kinds of people calling me saying, ‘Jim, be  reasonable,’” Adams
  recalled. So he proposed that, in exchange for getting their  permits, the
  phosphate miners restore the wetlands they destroyed. After  all, they had the
  money to do it right. “We worked out something very  concrete, and we had
  a historic and great agreement. Everybody was really happy  about it,” Adams
  said.
Since then, Florida  phosphate companies have spent millions of dollars recreating
  thousands of acres of wetlands wiped out by mining in Polk,  Hillsborough,
  and Manatee counties—or rather, attempting to re-create  them. One
  of the earliest phosphate mitigation sites in Florida was  Hooker’s Prairie, the
  mine site in Hillsborough County that Vic Anderson tried to  save by suggesting
  the miners get their phosphate from Morocco instead.
“It was like Payne’s Prairie near Gainesville—before  W. R. Grace proposed
  mining it,” Anderson told us. “It was a sawgrass prairie . .  . I said, ‘We ought to
  deny this permit.’ . . . Instead we decided to mitigate.”
  Anderson urged his bosses at the Corps to monitor the  mitigation closely,
  in a rigorous scientific fashion, to see if it really  worked. But Anderson’s boss,
  John Adams (no relation to the colonel), told him the Corps  had no time for
  that.
 “John Adams said no,  you’ve got to process these permits,” Anderson  said.
  As a result, “we’re making these same mistakes 30 years  hence.”
Anderson didn’t  get the chance to check on what happened to Hooker’s
  Prairie until years later. When he drove out there, what he  found was not a
  sawgrass prairie but something far less complex, a broom  sedge marsh—and
  thus not something that truly replaces what the miners  destroyed.
The track record for phosphate mitigation hasn’t improved  since Hooker’s
  Prairie was mined. In 2002, in preparation for a lawsuit in  which he was listed
  as an expert witness, consultant Kevin Erwin toured several  wetland mitigation
  sites built by IMC-Agrico, then the largest phosphate  company in the world (it
  has since merged with another company, Cargill, to form an  even larger company
  called Mosaic). Erwin found that virtually all the wetlands  the company
  built were deep marshes, with standing water two to four  feet deep.
“We didn’t see an acre, let alone the hundreds of thousands  of acres, of pine
  flatwoods that they had mined,” Erwin said.
Erwin said he asked his IMC tour guides to show him how the  company had
  recreated a wet prairie. That particular type is extremely  difficult to rebuild, he
  said, but the site the mining officials showed him surprised  him. The vegetation
  looked perfect, as if it had been growing there for decades.  But then Erwin
  looked a little closer and discovered that this wet prairie  had no roots.
“What they’d done is gone out in a wet prairie before it was  mined and used
  a sod cutter,” Erwin said.
After slicing a swath of vegetation from one location, he  said, the company
  brought the swath out to its mitigation site and rolled it  out like a section of
  carpet. But the miners forgot something important.
“I took some borings and the water table was several feet  below the surface,”
  Erwin said. Since wetlands need water flowing through them  to survive, these
  were unlikely to last long.
Erwin’s testimony helped convince a judge to rule against  IMC, which had
  sought a permit to mine 2,300 acres in Manatee   County. Mining the IMC property
  would destroy 600 acres of wetlands that form the headwaters  of Horse
  Creek, one of the cleanest streams in the state. Horse Creek  is also a major
  tributary of the Peace River, which  supplies drinking water for 100,000 people
  and ultimately gushes into the state’s most productive  estuary, Charlotte Harbor,
  itself the center of a billion-dollar tourism and recreation  industry.
Although IMC had promised to build new wetlands to replace  the ones it
  had destroyed, the judge found that those man-made wetlands  would differ
  too much from the ones there now. The mine site boasts a  variety of wetlands,
  some shallow, some deeper, but IMC planned to build just one  big, deep wetland,
  the judge found.
The company tried to show the judge that it has rebuilt  other wetlands it
  damaged by mining. But the evidence Erwin presented showed  those mitigation
  wetlands are not working as well as natural swamps, “despite  the fact that
  most of them have been in existence for more than 15 years,”  the judge wrote
  in his decision.
  _
Although the phosphate miners had destroyed thousands of  acres of wetlands,
  they did it over three decades. According to John Hall and  Bob Barron, year in
  and year out the greatest destroyer of wetlands in Florida  is the state itself—or
  rather, one agency: the Department of Transportation,  commonly known as
  the DOT.
With a $7-billion budget, the DOT is Florida’s  most powerful state agency.
  Its nearly 7,500 employees oversee more than 12,000 miles of  highways. It can
  condemn property and force the owners to move. And every  year it kills lots
  of wetlands.
The DOT doesn’t just kill wetlands by paving them over. When  a new road
  is built, then-DOT Secretary Denver Stutler told us in 2005,  “it’s going to open
  up corridors for potential growth.” In other words, development  follows the
  roads, wiping out still more wetlands all along the route.
Stutler, who previously worked in a mitigation-related  business, said destroying
  wetlands for roads is the price Florida pays for continued  growth.
“To me, transportation is the backbone of our economy,”  Stutler told DOT
  employees in a 2005 speech in Sarasota. “And it takes a  strong economy to afford
  the environmentalism we ascribe to here in Florida.”
We discovered that DOT officials did not keep track of all  the wetlands
  they destroyed each year. They were too busy building new  roads. But agency
  records we reviewed showed the DOT wiped out more than 1,000  acres of
  swamps, bogs, and marshes between 1997 and 2005.
The DOT has to go through the same permitting process as the  average
  developer and thus has repeatedly tried to make up for the  damage it does
  through mitigation. DOT officials also didn’t know exactly  how much of the
  taxpayers’ money they had spent on mitigation, but agency  records showed
  it was more than $62 million during that same eight-year  period. How much
  more we simply could not determine, because the  documentation did not
  exist.
We spent months digging through boxes and boxes of DOT  mitigation records,
  squirreled away in places like Bartow and Palatka and  Brooksville. We
  pored over monitoring reports and interviewed DOT staffers  and visited mitigation
  sites. We found that whenever the DOT has built its own  wetlands, they
  failed, over and over.
“It’s not easy to re-create what God put here,” said Sue  Moore, who oversees
  the maintenance of dozens of the DOT-built wetlands in the Tampa   Bay region.
Yet the DOT kept trying. One seven-acre wetland the DOT  built off State
  Road 44 in Crystal   River in 1990 was planted with  trees that an expert later
  found were doomed by root problems. Water management  officials warned the
  DOT in 1992 that the site was too dry—in fact, the wetland  was built on sand,
  with the water table some four feet down. The DOT  nevertheless planted 3,000
  more trees. Still, no wetland. Finally, in 1998, the DOT  abandoned the effort
  and the site is now overgrown with upland vegetation.
Then there was the man-made wetland in Polk   County that got too wet.
  In 1994, the DOT planned to widen U.S. 17 where it crosses  the Polk-Hardee
  county line. Because that would destroy about 2.5 acres of  wetlands adjacent to
  the road, the DOT proposed as mitigation turning five acres  of pasture by the
  Peace River into new wetlands. A  consultant hired by the state predicted that
  the new, man-made wetland would be better than the destroyed  one.
By July 1995, the DOT had planted cypress, sweetgum, red  maple, and other
  wetland trees, grasses, and shrubs. In the next three  months, though, the river
  overflowed, killing them. So the DOT replanted.
But in late 1997, a storm put the man-made wetland under six  feet of water,
  wiping out hundreds of the new trees. When consultants  checked the site in
  April 1998, they reported finding “no living vegetation.”  The water was so deep
  that they found fish jumping as if it were part of the  river. When the DOT’s
  consultants checked in again in August 2004, they found it  underwater again.
  Dead trees were sticking out of the water, they reported,  “and many more were
  detected below the water surface.”
So after spending 10 years and $242,000, the DOT had not  only failed to
  build a wetland that was superior to the one destroyed—it  had failed to replace
  the natural wetland at all. Rob Dwyer, the DOT employee who  oversees the
  Peace River mitigation area, calls  the site “problematic.”
  “I would think we would have to throw in the towel at some  point,” he said,
  though he wasn’t sure when that point would be reached.
This sort of thing happened all over the state. Down in the  Keys, the DOT
  spent $66,000 planting thousands of mangroves on a half-acre  site in Whale
  Harbor. They kept dying. The agency replanted the mangroves  four times. It
  even dug out the soil and put in fresh muck. Nothing worked.
At one point, the DOT dropped the ball for a while, failing  to plant more
  mangroves or report on its progress. The Florida Department  of Environmental
  Protection (which had replaced the old DER) didn’t notice.  Then, in 1995, a
  DOT employee reviewing the files discovered the problem and  asked the DEP
  what to do.
The response: forget it. The regulators asked, “If FDEP  isn’t asking for it to
  be fixed, why is FDOT pursuing it?”
Yet the DOT persisted for another four years, spending even  more taxpayer
  dollars on planting more mangroves. In 1999, after 11 years  of trying, the DOT
  finally gave up and declared Whale   Harbor a failure.
We found numerous examples of DOT mitigation failures, but  our favorite
  by far was the one connected to the bridge over the Withlacoochee   River in
  Citrus County  in 1990. The new State Road 44 bridge destroyed less than an
  acre of wetlands. The DOT’s efforts to build a new wetland  to replace it ran into
  repeated problems. Then, after nine years of trying, it  began at last to flourish.
  That’s when the DOT widened the road, destroying the  man-made wetland
  it had worked so hard to create.
A DOT employee asked if the agency needed to build new  wetlands to
  replace the man-made wetlands that replaced the natural  wetland—in other
  words, should they mitigate for the mitigation?
In response, a Southwest Florida Water Management District  wetlands
  expert named Mark Brown fired off an e-mail that said: “STOP  THE MADNESS!!!”
  _
That mitigation fails should come as no surprise to anyone  involved in wetlands
  regulation. The failures have been obvious to wetland  scientists for 30
  years.
The practice of requiring mitigation for wetland impacts  began in the late
  1970s. At the time, it seemed to federal regulators like a  way to hold the destroyers
  of the environment to a higher standard, forcing them to  give something
  back to nature in exchange for getting their permits.
By 1981, the Corps was requiring 5,000 acres of new wetlands  to be created
  or old wetlands to be restored nationwide—though that fell  far short of the
  50,000 acres of wetlands the Corps allowed to be wiped out.  But soon scientists
  were questioning whether mitigation could really replace  what was being
  destroyed.
In 1987, when the National Wetlands Policy Forum was coming  up with the
  no-net-loss policy, wetland experts handed the committee  members briefing
  papers on various issues they ought to consider. Among the briefing  papers
  was a prescient warning against relying too heavily on  mitigation to save the
  day.
The warning, written by Jon Kusler, chairman of the  Association of State
  Wetland Managers, noted the need for more research but  pointed out that the
  limited surveys of mitigation wetlands done so far had found  that that “about
  half of the projects failed in one or more respects.”
In fact, Kusler wrote, “wetlands scientists seem to agree  that no wetland can
  be duplicated or replicated exactly. Most natural systems  are far too complex,
  and represent thousands of years of geologic and hydrologic  processes with
  resulting accumulations of soil profiles and ecologic niches  of plant and animal
  species.”
Kusler told us that as early as 1977 wetland experts from  around the nation
  were aware that man-made wetlands often failed. “Even back  then, people were
  saying hey, some of this works, some doesn’t,” he said.
The members of the wetlands forum saw Kusler’s report and  knew what it
  meant, he said. But “remember, there were lots of people on  there, homebuilders
  and everybody else was on that forum,” he explained. “The  feeling was:
  better to get half a pie than no pie at all.”
In other words, they felt it would be better to get lots of  mitigation, even
  if much of it fails, than to get little or none. The reason,  Kusler explained, is
  simple: while scientists may know that reproducing natural  wetlands is virtually
  impossible, and thus wiping them out causes damage that  can’t be repaired,
  “it’s one thing to know, and another to have a political  will.” And there was no
  political will for declaring all wetlands off-limits.
So the forum’s final report still listed mitigation as a way  for the nation
  to hit its no-net-loss target, contending that “achieving  the goal will require
  increased compensation for wetlands alterations through a  higher rate of restoration
  of former and degraded wetlands and, where feasible,  creation of new
  wetlands.”
Somehow, though, that call for restoration over creation got  lost as the proposal
  was turned into a policy.
In 1990, when the no-net-loss policy was adopted by the  Corps and EPA,
  the two agencies agreed to follow a three-step process with  each 404 permit application:
  First, try to avoid building anything in wetlands. Second,  if wetlands
  couldn’t be avoided, try to minimize the impact on them as  much as possible.
Third, if the wetlands couldn’t be avoided and the impact  was as minimal as
  possible, then and only then could the Corps consider  requiring mitigation for
  the damage.
Today, though, mitigation has gone beyond merely making up  for lost wetlands.
  Now it’s used as a justification for wiping out natural  wetlands. Mitigation
  has jumped to the head of the line for the state agencies  issuing wetland
  permits—and that limits what the Corps can do, Corps biologist  Steven Brooker
  told us.
“They’ve stopped doing avoidance,” he said. “Now they’re  hardly doing
  minimization. They’re going straight to mitigation.”  Developers submit plans
  with “ridiculous impacts,” he said, and instead of denying  the permits “you just
  throw a lot of mitigation at it.”
A prime example of that is a highway project in the Keys  known as the
  18-Mile Stretch. The two-lane road runs from the southern Everglades  to Key
  Largo, and there have been car crashes at night along its  more isolated stretches.
  In 1988 the DOT proposed widening the road to four lanes,  destroying 164
  acres of wetlands. It said widening the road would ease  hurricane evacuation,
  improve safety, and accommodate growth.
But Keys residents feared it also could pave the way for a  population boom
  in the fragile Keys. Brooker was the permit reviewer at the  time, and he passed
  along those concerns to Col. Terry Rice, then in charge of  the Corps in Florida.
“I was half a week in the Keys with Col. Rice—he saw what  was going on.
  I had his support after that,” Brooker said. “It would’ve  been a better highway,
  but the secondary and cumulative impacts—a term everybody  was afraid of
  then—were really huge.”
Rice said he kept asking state officials, “What are you  doing to make sure
  this is not going to inspire more growth in the Keys that’s  going to outrun your
  hurricane evacuation plans?” He never got a satisfactory  answer, he said. So
  Rice told state officials he was going to deny their federal  wetlands permit.
  Instead the DOT withdrew its application and revamped its  plans.
By then, though, the DOT already had begun building 385  acres of wetlands
  to make up for the damage it expected to cause by widening  the road. In 1995 it
  filled in more than 6 miles of an old canal, making it more  like the Everglades,
  and tried to create 12 tree islands like the ones dotting  the River of Grass. The
  DOT also filled in an area that had been illegally dredged  and planted thousands
  of mangroves there.
In 2003 the DOT scaled back the highway project and asked  for a new 404
  permit—and now Brooker was no longer the permit reviewer.  Instead of four
  lanes, the DOT application called for a wider paved shoulder  and a threefoot
  concrete barrier between the two lanes. But the new highway  plan
  still called for destroying 103 acres of wetlands. So DOT  promised even more
  mitigation to make up for the damage. It pledged to build  another 41 acres of
  wetlands, although some of that would be at the U.S. Navy  base in Key West,
  100 miles away.
The Corps approved the permit in 2004, even though Corps  officials wrote
  that the project “does not increase hurricane evacuation.”  Although Keys activists
  had suggested several ways to improve traffic safety while  avoiding destroying
  so many wetlands, the Corps did not even consider those  alternatives,
  noting only that the agency “typically defers to the FDOT .  . . in highway safety
  issues.”
In the official record of decision, the Corps wrote that its  staff was particularly
  impressed with the DOT’s mitigation, which it said would  “outweigh the
  minimal detrimental impacts” of destroying wetlands in the Everglades  and
  the Keys. The mitigation became the justification for  issuing the permit.
  
  However, when we looked at the DOT’s monitoring reports on  the mitigation
  it had already built, here’s what we found: after struggling  for a decade and
  spending more than $1 million of the taxpayers’ money, the  DOT’s mitigation
  was a failure any way you looked at it.
“So often the best-laid plans just don’t work,” said John  Palenchar of the
  DOT’s Miami office,  who oversaw the mitigation projects.
  
  Many of the mangroves the DOT planted a decade ago are still  only two
  feet high. Mature mangroves should be 30 feet high. These  were so short, Vic
  Anderson called  them “bonsai mangroves.” They probably will never
  get any bigger. Because they were planted in fill dirt  instead of natural muck,
  “you get a dwarf-type mangrove,” Palenchar said. “They don’t  die, but they
  don’t really flourish.”
As for the dozen tree islands the DOT built—well, the trees  aren’t there
  anymore. Palenchar said the tree islands weren’t built high  enough to keep the
  trees out of the water: “They were too soggy and most of  them died.”
  _
The problem of mitigation failure might not be so bad if  someone were requiring
  developers, miners, and roadbuilders to start over and do  things right.
“We only care about it working if compliance inspections are  at such a level
  that if people screw up, they get caught,” said Roy “Robin”  Lewis, an environmental consultant in Florida  for 30 years. “That’s not taking place. The regulators
  need to be on everybody’s tail. Instead, developers hire the  cheapest landscaper
  they can find to do their mitigation, and then the site goes  bad. That
  happens every time.”
As a result, Lewis said, “there isn’t any significant incentive  to make sure the
  process works.”
This is not a new problem. In 1988, the investigative arm of  Congress, the
  General Accounting Office, issued a report pointing out that  the Corps was
  placing little emphasis on making sure mitigation actually  occurred. In 1993,
  the GAO pointed it out again.
But the Corps’ attitude remained the same: we’re too busy  cranking out
  new permits. That’s particularly understandable in Florida,  where the permit
  reviewers are constantly on the verge of drowning in permit  applications, Rice
  told us.
“People are calling and writing every day: ‘Where’s my  permit?’ So that’s
  what you focus on,” Rice told us. “Meanwhile enforcement is  out of sight, out
  of mind, unless somebody brings something to your  attention.”
That’s fine with the Corps’ leaders. In 1999, Maj. Gen.  Russell Furman sent
  a memo to all Corps commanders outlining what their  priorities should be.
  He told them to think of a dividing line separating their  most pressing duties
  from the ones that could be postponed indefinitely. Above  the line: making
  “timely” decisions on permit applications, he said. Below  the line—to be done
  after everything else—he listed compliance inspections for  mitigation.
Two years later the National Research Council panel wrote  that “the cumulative
  effect of these policy decisions indicates that . . .  issuing permits takes
  priority over careful evaluation of mitigation projects.”
When the National Research Council report came out in 2001,  the Corps
  trumpeted its intention to mend its ways and make mitigation  meaningful.
  Corps leaders joined with the EPA and other federal agencies  to prepare a
  “Mitigation Action Plan” that would fix everything the  report had pointed out
  as wrong.
But four years later, in 2005, the GAO issued a new report  that said the same
  old attitude still prevailed.
“The Corps’ Section 404 program is crucial to the nation’s  efforts to protect
  wetlands and achieve the national goal of no net loss,” GAO  investigators
  wrote. “Although Corps officials acknowledge that  compensatory mitigation
  is a key component of this program, the Corps has  consistently neglected to
  ensure that the mitigation it has required as a condition of  obtaining a permit
  has been completed. The Corps’ priority has been and  continues to be processing
  permit applications. . . . The Corps continues to provide  limited oversight
  of compensatory mitigation, largely relying on the good  faith of permittees to
  comply with compensatory mitigation requirements.”
Unless the Corps starts doing its job, the GAO investigators  wrote, “it . . . will
  be unable to ensure that the section 404 program is  contributing to the national
  goal of no net loss of wetlands.”
  _
Think about the cost of all this failure, not just in the  loss of wetlands and the
  broken promises to the voters, but in actual dollars.
Trying to create new mangrove and tidal wetlands costs about  $50,000 an
  acre, Lewis estimated when we talked to him in 2005. Trying  to create freshwater
  wetlands costs a little more “because you’re dealing with  water control
  structures,” he said, so figure $75,000 to $100,000 an acre  for those.
Now add up all the acres of mitigation built all across Florida—by  the DOT,
  by miners, by developers.
“You’re in the tens of millions of dollars,” Lewis pointed  out. “How much
  tax money goes into attempts to do this stuff that doesn’t  work? And when it’s
  private developers doing it, that winds up affecting the  cost of a house.”
But don’t count on any effort by the government to stop  relying on mitigation
  to prop up the politicians’ promise of no net loss.
In 2005, we talked to James Connaughton, who as chairman of  the White
  House Council on Environmental Quality is President George  W. Bush’s top
  environmental adviser. We pointed out all the mitigation  failures throughout
  Florida, and  Connaughton acknowledged that “sometimes some of these projects
  don’t work out the way we think they should.”
But mitigation remains a crucial part of the permitting  process, he said,
  because it offers a way to balance wetlands protection with  continued development.
“People need homes to live in, hospitals to go to when  they’re sick, and
  stores to buy food,” Connaughton told us. “As long as we  support a growing
  population in America,  there will be a need for land. We need to minimize the
  impact to valuable wetlands, but where we do have impact,  mitigation is the
  answer.”
Yet it’s hard to see it that way when you’ve visited the  Wal-Mart store in
  Oldsmar, a small town between Tampa  and Clearwater.
In 1999, Wal-Mart proposed building a supercenter on 28  acres near the
  aptly named Cypress   Lakes subdivision development in  Oldsmar. Smack in the
  middle of the site was a five-acre cypress dome that  Wal-Mart said had to go.
  As mitigation, Wal-Mart dug out holes around its parking lot  to create three
  new wetlands. One was built on a site that, before Wal-Mart  arrived, held some
  dumpy apartment buildings.
To show its environmental sensitivity, the retail giant  didn’t just kill off all
  the plants in the cypress dome. Instead, the company  transplanted the vegetation
  from the natural wetland it was destroying, even  70-foot-tall cypress trees.
  Wal- Mart’s environmental consultant, Kimley-Horn and  Associates, promised
  the mitigation sites would soon become a “mini-ecosystem”  with a “dense
  canopy.” As further mitigation, Wal-Mart also promised to  preserve 26 acres
  of wetlands north of the store by donating them to the  public.
The Corps approved the permit in 2000. Five years later, we  toured the Wal-
  Mart mitigation site with a former state wetlands expert  named Sydney Bacchus
  who does freelance work for environmental groups. As we  slogged through the
  thigh-deep water, we found that many of the transplanted  trees were dead. Bacchus
  pointed out a lot more were showing signs of severe stress.
Every rainstorm sends polluted water from the parking lot  flowing into the
  largest man-made wetland, which doubles as a retention pond.  Cypress can
  tolerate standing in a few inches of water with an  occasionally deeper inundation,
  but Wal-Mart’s man-made wetlands always hold three feet or  more of
  water. In other words, these wetland trees were too wet.  They were drowning.
To make matters worse, Bacchus pointed out, the  transplanting process severed
  the tangle of roots that bind one cypress to the trees  surrounding it. When
  a high wind hits the dying trees, they topple easily, their  root balls popping out
  of the muck like a giant divot. At one point we scrambled up  on top of one such
  root ball protruding from the water. It was as big as a  retail executive’s desk.
So many transplanted trees died in one area that biologists  at the Southwest
  Florida Water Management District, after reading the  company’s monitoring
  reports, recommended Wal-Mart replace them with new  plantings, in the
  hopes the new trees might do better than the transplants.
And what of the wetland that Wal-Mart was supposed to  donate? Instead,
  the company tried to sell it for development.
The Cypress Lakes Homeowners Association found out about the  sale and
  sent a letter to the Corps protesting that Wal-Mart was  violating its permit.
  Only then did the Corps take action, forcing Wal-Mart to  give the undeveloped
  wetland to Pinellas   County.
Yet in 2005, Wal-Mart trumpeted the news that its Oldsmar  mitigation work
  had won an Award of Excellence from the National Arbor Day  Foundation.
  When we looked at the company’s submittal for the award, we  found that
  Wal-Mart had inflated the number of trees that survived the  transplant. National
  Arbor Day Foundation Vice President Dan Lambe said the  contest judges—
  like the Corps—simply took Wal-Mart’s word for how well its  mitigation
  worked.
While troubled by the news of the falsified application, he  said the foundation
  could not give the award to anyone else for one simple  reason: Wal-Mart
  was the only entry.
Regardless of whether a mitigation project like Wal-Mart’s  is successful, the
  accounting on wetlands creation is simple. There are acres  to measure, costs to
  total up. The concept is easy to grasp: you wipe out a few  acres here; you build
  a few acres there.
But as creation’s failures became glaringly obvious, regulatory  agencies
  turned to other forms of mitigation.
And then the accounting got downright creative.












