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Understanding the Clean Water Act and its Impact on Real Estate
04-2023
In order to maintain the quality of America’s waters, the Clean Water Act (CWA) was passed in 1972. It sets criteria for water quality and controls pollutant discharges into rivers. Real estate development is significantly impacted by the Act, particularly when it comes to land near wetlands, streams, or other bodies of water.
In this blog post, we’ll examine the fundamentals of the Clean Water Act and how it affects property owners and developers.
What is the Clean Water Act?
A federal legislation known as the Clean Water Act controls the release of contaminants into US navigable waters. The Act was revised in 1977 to incorporate new clauses governing the control of pollutants, the maintenance of water quality standards, and the preservation of wetlands.
The Environmental Protection Agency (EPA), which oversees the Act’s administration and enforces the law, also establishes national water quality standards. The EPA also collaborates with states to create and implement initiatives to reduce water contamination.
The Impact of the Clean Water Act on Real Estate
Real estate development is significantly impacted by the Clean Water Act, particularly when it comes to land near wetlands, streams, or other bodies of water. In accordance with the Act, certain activities that can have an impact on the quality of the water must get authorization.
For instance, if a developer intends to construct a new development close to a wetland, they might require an Army Corps of Engineers permission in accordance with Section 404 of the Clean Water Act. Every action that involves the discharge of dredged or fill material into a body of water inside the United States, including wetlands, requires this permit.
Developers must prove that their project won’t significantly impair the wetland or other water body in order to obtain a Section 404 permit, which can take time and money. Also, to lessen any effects that their project might have, developers might need to establish or restore wetlands.
Developers could also need to apply for permits under other provisions of the Clean Water Act in addition to the Section 404 permit. For instance, they may require a permit under Section 402 of the Act if their project will cause the discharge of pollutants into a water body.
The Clean Water Act may also have an effect on landowners who have property close to wetlands or other bodies of water. For instance, a landowner may require a permit under the Act if they intend to develop their property and the project may have an impact on the neighboring waterways.
The Importance of Compliance with the Clean Water Act
Real estate developers and property owners who intend to engage in activities that could have an influence on water quality must comply with the Clean Water Act. Significant fines and legal liabilities may come from a failure to get the required permissions or follow the Act’s regulations.
For instance, a California real estate developer was fined $6.5 million in 2016 for breaking the Clean Water Act. Without getting the required permits, the developer filled up marshes and streams, seriously harming the ecosystem.
Failure to comply with the Clean Water Act may include fines as well as reputational harm and project delays. If the Act is determined to have been broken, developers would have trouble getting future permits, and their projects might be given more scrutiny.
By controlling pollution discharges into rivers and establishing water quality standards, the Clean Water Act is a crucial federal law that safeguards the quality of America’s waters. Real estate development is significantly impacted by the Act, particularly when it comes to land near wetlands, streams, or other bodies of water.
Developers and owners of real estate must abide with the Act’s standards to avoid harsh fines and legal repercussions. Since developers must get permits and provide evidence that their projects won’t significantly affect water quality, complying with the Act can be difficult and time-consuming. To conserve the environment and guarantee that our waterways are clear and safe for use by future generations, compliance with the Act is necessary.
Real estate developers and property owners can make sure that their projects are both environmentally and financially sustainable by cooperating with regulatory bodies and taking preventative measures to safeguard water quality. The long-term health and prosperity of our communities depend on our towns’ ability to comply with the Clean Water Act, which is a critical component of responsible real estate development and management.
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