-5- 



Rdplaos tha preference for on-site mitigation for all 

 watlande except those In the higheet wetland category 

 with a preference for mitigation within Stataa or 

 within major hydrologiaal units which may oroea State 

 lines. 



D. Femlt Conditions for Wetlanda 



The Administration proposes to maintain the process known as 

 saquenoing for the high-value wetland category. Permit 

 applicants involving wetlanda in the remaining categoriea will be 

 required to offset wetland losses through compensatory 

 mitigation. States with less than e 1 percent historic rate of 

 wetlands development will be able to satisfy permit requirements 

 through minimixation. The Adminiatretlon will also establish 

 general pamits for low- value wetlanda. 



B. Increasing State Role 



To increase the. role of Stated in the wetlands permitting 

 -process, the Administration will issue guidance to encourage 

 greater use of Regional and State General Permit Programs. 

 States which assume delegation of the 404 program will be given 

 flexibility, to the extent allowed by current law, to tailor the 

 wetland categoriea based on State resources. State programa 

 would be approved as long as the program achieves on balance the 

 same environmantal benefita aa the Federal program. 



The Administration also supports legislation to allow 

 permitting of wetlands near navigable waters by States that 

 assume reaponsibility for the permit program. 



r. Modifying the Coverage of the Program 



The Administration supports legislation to expand the scope of 

 the 404 program to Include other activities which may destroy 

 wetlands besides the addition of fill materiel. The 

 Administration will also take steps to exempt man-made wetlands 

 which are not used for purposes of mitigation and whose creation 

 was not subsidized by the Federal government. The Adminietration 

 will also clarify that normal farming, ranching and silvicultural 

 activities generally are exempt from the 404 program, and that 

 lands exempted from the Swampbuster program are similarly not 

 covered. 



