However, some of the objectives served by public acquisition--for 

 example protection of endangered species, water quality, and wetlands 

 function--also may be legitimate objectives of regulatory permit programs 

 such as the permit program for the discharge of dredged and fill material. 

 A regulation of this type may substantially restrict the use of land, 

 without any provision for compensation, and still meet the requirements of 

 due process. This problem has been referred to as the "taking issue" [104] 



Assuming the program serves a valid purpose, there are two general 

 elements in evaluating a taking claim: 



1. if the regulation applies to private land where there is no 

 competing formal public interest (e.g., the navigation 

 servitude), the regulation must not deny "all practical use" of 

 the property. The interpretation of this standard varies from 

 state to state and may still result in severe restrictions on 

 dredging and filling of low-lying properties. 



2. if there is an appropriate competing formal public interest 

 (e.g., the navigation servitude), the regulation may prohibit any 

 modification of the natural system providing it is not arbitrary 

 and serves properly documented public objectives. 



Appendix A provides a more detailed discussion of this issue. 



3.1.3 State and Local Roles 



OCS-related development projects often require large sites, and 

 outside of a few industrially developed areas, these sites are unlikely to 

 have appropriate local zoning and services before their selection. Both 

 zoning use designation and public services such as water and sewer usually 

 require the approval and support of local government before a project may 

 reasonably proceed. Typically a developer will require some assurances 

 of both before finally acquiring a site. Often acquisition is contingent 

 upon proper local approvals, and the price paid reflects expected 

 development values. 



Flood protection conditions generate the most widespread special 

 building standards for coastal development. These are implemented by 

 local governments pursuant to Federal standards to enable the Federal 

 Insurance Administration to issue flood insurance. They impact residential 

 construction most significantly, but they impose floodproofing requirements 

 on other types of flood-prone development as well [105]. 



State natural resource programs also work with the Fish and Wildlife 

 Service, both cooperatively and through grant programs. These activities 

 often include support for specialized Federal programs such as the 

 Endangered Species Program, directly contributing to the advise and 



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