February 27, 2013

LO Focus Area: Watershed Protection and Restoration

Agency/Co-Agency: Washington State Dept. of Ecology/Washington State Dept. of Commerce

Overview of LO Focus:

Ecology and Commerce are implementing a coordinated approach that integrates a watershed framework with basin planning information to identify the best areas for protection, restoration and development in Puget Sound. We are supporting projects that develop science or plans, or that implement strategies to understand and address underlying problems and root causes of ecosystem degradation in watersheds. The primary goal is to protect and restore key areas critical to maintaining the integrity of the Puget Sound Ecosystem.

Major Themes of Current Investments:

Develop a watershed framework to protect and restore watershed-scale ecosystem processes. (Critical steps in a framework include: identify and define the environmental problem or issue, gather available watershed-based information, integrate and apply information, develop solutions and actions/implement actions, and monitor results of actions.)

Support local governments, tribes, and other entities in implementing a watershed framework and integrating the framework in updating regulatory tools.

Conserve ecologically significant undeveloped rural and resource lands and concentrate development within existing urban growth areas through improved regulation, stewardship, ecosystem markets and other incentives

Develop regional, cross-boundary protection and restoration strategies using a variety of tools such as incentive programs, transfer of development rights (TDRs) and regional alliances

Expand stormwater facility retrofits and effective stormwater source control programs in areas of existing development.

Use finer scale watershed assessment through hydrologic modeling in priority sub-basins to establish targets for limiting impervious area and preserving vegetation.

Accelerate the shift in stormwater management from traditional approaches to LID approaches.

Round 3 investments are focused on: analyzing land cover changes/permit effectiveness, improving existing planning and regulatory tools, building regional alliances for planning, updating the riparian habitat guidance, improving channel migration zone assessment, developing strategies for protecting/restoring small drainages, and planning stormwater retrofit projects.

For more information on the watershed protection and restoration NEP grant six-year implementation strategy see: http://www.ecy.wa.gov/puget_sound/grants_fed_watershed.html.

February 27, 2013

PROSPECTIVE MAJOR THEMES OF ROUND 4 INVESTMENTS

Types of Work Within Major Themes* Sub-strategy/ NTA Supported

Major Theme: Support local govts. and tribes in making improved land use decisions that result in protecting and restoring watersheds

Continue to fund WCTAT to provide assistance to local govts. and tribes in applying a watershed framework (direct award)

Support GMA plan and development code updates that integrate a watershed framework including: o CAO & SMP updates o floodplain management o stormwater management o LID development codes o stream typing updates o Other

Support local govts. and tribes to assess local climate change implications (e.g. vulnerabilities, important areas to protect from development) and develop adaptive strategies that focus on making land use decisions that reduce risks from climate change by improving the resiliency of ecosystems

A1.1 NTA 1 & 2 – ID & prioritize areas, apply Watershed Characterization, web-based tool A1.2 NTA 1 – ID Land use planning barriers A1.3 – Improve implementation & enforcement of laws, regulations, plans A4.1 NTA 1 – Regional sustainable communities A5.1 NTA 1 – Floodplain protection & policy team A5.2 – Align policies, regulations, planning for floodplain management A5.3 NTA 2 – CAO updates on frequently flooded areas

Major Theme: Support planning for stormwater retrofit projects

Support stormwater retrofit assessments, project lists & prelim. engineering in priority watersheds

C2.3 NTA 1 – Stormwater retrofit projects

Major Theme: Protect and restore riparian habitat

Support riparian habitat guidance, phase 2 (direct award)

Support assessing floodplain impacts from roads/bridges (direct award)

Support design of major floodplain projects

Support salmon recovery projects

Support implementing multi-parameter TMDLs for salmon recovery

Support watershed-based riparian habitat restoration

Support invasive management in riparian areas

Support stream typing updates

A1.2 – Support local govts. to adopt plans, regs consistent with targets A2.2 – Implement FW and terrest. restoration A5.1 NTA 1 – Floodplain protection & policy team A5.4 NTA 1 – State highways w/FP impacts A6.1 – Implement salmon recov. work plans C9.1 – Complete TMDL studies and other plans

*Note that all work would be awarded competitively except those designated as “direct award”.

Round 4 Linkages to Action Agenda

Strategic Initiatives: This work supports the Habitat and Stormwater Strategic Initiatives by

supporting A1.2 NTA 1, A5.1 NTA 1, A6.1 and C2.3 NTA 1.

Action Agenda Sub-Strategies and Near-Term Actions: See table above

Vital Signs: Land Development & Cover, Floodplains, Stream Flows, Freshwater Quality, Toxics in

Fish, Chinook Salmon

Biennial Science Work Plan:

o A1, A2, A3 – Develop analytical tools to identify where to protect, restore and develop.

o C2 – Evaluate projected environmental benefits of structural stormwater retrofits.

NEP Watershed Grant Overview & Status 1 January 10, 2013

NEP Watershed Protection & Restoration Grant Overview & Rationale for

Proposed Round 4 Themes

1. Background of Watershed Lead Organization Grant In February 2011, the Environmental Protection Agency (EPA) awarded to the Washington Department of Ecology (Ecology) a National Estuary Program (NEP) Lead Organization Grant to Protect and Restore Watersheds of Puget Sound (Watershed Grant). Ecology partnered with the Washington Department of Commerce (Commerce) to co-manage the grant and oversee investments made with grant funds. We then formed a Watershed Grant Core Team comprised of staff from Ecology, Commerce, EPA, the Puget Sound Partnership (PSP), and Washington Department of Fish and Wildlife (WDFW. This team is responsible for guiding decisions on investments, including the types of work we support, the actual projects funded, and the processes we use to select award recipients. In planning investments, the Core Team solicits input from a variety of federal, state, local, and tribal agency staff, as well as other stakeholders. Ecology received both Federal Fiscal Year (FFY) 2010 (Round 1) and FFY 2011 (Round 2) awards from EPA in 2011 for approximately $3,089,000 and $5,780,000, respectively. In 2012, we received $5,290,000 from EPA to support Round 3 sub-awards. We expect to receive FFY2013 (Round 4 funds) in late spring or early summer 2013. EPA has not yet determined the Round 4 amount that each LO will receive.

2. Main Objectives and Approach of Watershed Grant Ecology and Commerce are implementing a coordinated approach that integrates a watershed framework with basin planning information to identify the best areas for protection, restoration and development in Puget Sound. We are supporting projects that develop science or plans, or that implement strategies to protect and restore key areas critical to maintaining the integrity of the Puget Sound Ecosystem. The work program supports at least six of the twenty recovery targets identified for Puget Sound including stream flow, fresh water quality, overall stream health, salmon recovery, floodplain protection and restoration and conserving land cover through improved land use management. For more detailed information on the work program for the Watershed Grant, please see the Six-Year Implementation Strategy and 2012 Work Plan at http://www.ecy.wa.gov/puget_sound/grants_fed_watershed.html. The main objectives we are trying to achieve with the Watershed Grant are to:

Use watershed data, information and assessments across all spatial and temporal scales to address and understand underlying problems and root causes of ecosystem degradation in watersheds.

Create a coordinated state and local approach to protecting and restoring Puget Sound by integrating, analyzing and applying existing watershed data and information.

Implement solutions to underlying problems of ecosystem degradation through a coordinated set of pilot or demonstration projects, Soundwide policy efforts and locally based implementation activities.

Support strategies and actions identified in the Puget Sound Action Agenda as critical to protection and restoration of Puget Sound watersheds.

Our strategy is based on using sound science and on working in partnership with local governments, tribal governments and other entities to implement practical solutions that advance watershed protection priorities. To accomplish this, Ecology and Commerce are making grant investments across four activity areas:

Implement Watershed Characterization

Improve Land Use and Protect Rural Working Lands

Implement Watershed Protection and Restoration Strategies

Implement Stormwater Management Strategies.

NEP Watershed Grant Overview & Status 2 January 10, 2013

By investing in these four activity areas, we will integrate a watershed framework into the implementation actions that local governments and others will undertake. This organization for a coordinated watershed approach is presented in Figure 1.

The uppermost box in Figure 1 shows the main components that comprise the watershed framework. We are

using this framework to guide work funded by the Watershed Grant. The framework helps organize and integrate the results of assessments and other environmental information and guide the interpretation and application at the correct scale. This helps achieve an understanding of ecological conditions and processes across spatial scales as the basis for local land-use planning. The components are integrated to identify important areas to restore degraded watershed processes and areas to focus development. This integrating framework establishes a flexible and adaptive methodology for interpreting and visualizing watershed information and data.

Watershed Framework

Puget Sound Nearshore Ecosystem Restoration Project (PSNERP)

Puget Sound Watershed Characterization

•Water Quality Assessment, Water Flow Assessment, Terrestrial Habitat Assessment, Freshwater Habitat Assessment, Nearshore Marine Habitat Assessment

Other local watershed-based assessments and tools

Project Selection

Implement Watershed Characterization

Improve Land Use and Protect Rural Working

Lands

Implement Watershed Protection and

Restoration Strategies

Implement Stormwater Management Strategies

NEP Watershed Grant

Implementing Organizations

Local governments

NGOs

State Agencies

Tribes

Academia

Conservation Districts Protection and Restoration of Puget Sound Watershed

Ecosystems

Protection and Conservation

Land Use Planning

Restoration Projects

Filling Information

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Watershed Grant Core

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Watershed Characterization

Technical Assistance Team

Figure 1 – Strategic framework for integrating watershed framework into implementation projects that are funded by the Watershed Grant and using the information to adaptively manage and improve the watershed framework.

3. Rationale for Major Themes Proposed for Round 4 The Watershed Core Team is proposing three major themes for Round 4 work that are consistent with both the 2012 Action Agenda and the goals we originally established for this grant. The themes focus on using a watershed-based approach to 1) improve local land use decisions by applying a watershed framework in updating plans and regulations, 2) plan for stormwater retrofit projects to be located so they will protect and restore watershed processes, and 3) improve management of riparian habitat. These themes help us continue to build on work being funded under earlier rounds, particularly Round 3. Table 1 below summarizes the rationale for proposing the three themes. Table 2 shows major themes we considered but are not proposing at this time and the associated reasons.

NEP Watershed Grant Overview & Status 3 January 10, 2013

Table 1 – Rationale for Major Themes Proposed for Watershed Grant Round 4

Major Themes Proposed

Related Work from Previous Funding Rounds Providing Foundation for

Themes

Rationale

Support local governments and tribes in making improved land use decisions that result in protecting and restoring watershed processes and functions

Fall 2012 grant solicitation for projects to improve watershed management by updating planning and regulatory tools

Ongoing support to local govts. by Watershed Characterization TAT

Building regional alliances to address planning issues

Integrate land use permitting and plan data with Watershed Characterization

Floodplains by design – prioritizing important areas and developing decision support tool for floodplain management and restoration

This has been a major theme for the Watershed Grant from its outset. This is a prevention-oriented theme that is intended to reduce the effects on watersheds of future land use decisions. There is little money currently being directed to local governments to improve their land use plans, policies, and regulations. This focuses on integrating a watershed-based approach into CAOs, SMPs, and other regulations/plans to improve land use decisions. It relates directly to A1.2 NTA 1 which is a priority under the Habitat Strategic Initiative (S.I.). This also more indirectly relates to A1.3 NTA 1, A4.2, and A5.1 NTA 1 – all priorities under the Habitat S.I. This work also appears to be a priority for most of the LIOs.

Support planning for stormwater retrofit projects

Winter 2013 grant solicitation for stormwater retrofit planning & project lists

LID operations & maintenance standards, guidance & training

Strategies for preserving/ restoring small Puget Sound drainages with Excellent/ Fair B-IBI scores

EPA specifically designated a portion of the FFY2012 funds to support this work. This would continue that effort and allow us to expand retrofit planning to additional areas of Puget Sound. Retrofit planning is a critical part of reducing existing stormwater impacts. C2.3 NTA 1 is a priority under the Stormwater S.I. This is also a priority of most of the LIOs.

Protect and restore riparian habitat

Freshwater riparian habitat management guidance update

Land cover change detection analysis focused on riparian areas

Channel migration zone assessments

Riparian and salmon habitat restoration

Strategies for preserving/ restoring small Puget Sound drainages with Excellent/ Fair B-IBI scores

Improving stream data to protect freshwater processes in Kitsap and Island counties

Riparian protection and restoration is key to improving water quality and salmon/wildlife habitat. This work would emphasize watershed-based approaches to managing riparian areas. It would include supporting local govts. in adopting improved riparian protection regulations (A1.2) and also could implement riparian restoration projects focused on salmon recovery (A6.1). These are priorities under the Habitat S.I. Implementing salmon recovery plans is a priority of all LIOs. Also most LIOs prioritize implementing TMDLs, retaining native vegetation/managing invasive spp. in sensitive areas, riparian restoration, and related work.

Table 2 – Other Topics Considered but not Currently Proposed as Major Themes for Round 4

Topics Considered for Major Themes

Rationale

Incentives to focus growth in UGAs

We are not making this a major theme until we have some results from early pilot projects we funded for TDRs and ecosystem services markets.

Update instream flow rules

This work is way beyond the scale of funding available under Round 4. It is too big a project and too complex.

LID training & certification We are currently funding LID operations & maintenance training, but are not providing general LID training. The state budget is likely to provide funding for this – considerably more than we could dedicate.

NEP Watershed Grant Overview & Status 4 January 10, 2013

Topics Considered for Major Themes

Rationale

Watershed effects on shellfish production

This is the primary focus of the NEP Pathogen Grant and so already has targeted funding.

Floodplain management & implementation

We did not make this a major theme because the floodplain management projects we funded earlier are not far enough along to build on. However, improving floodplain management could be one of the areas of focus under the broader themes of supporting local governments in doing GMA updates and of protecting/restoring riparian habitat.

WS-based stormwater management permitting

This work Is not timely given the fact that Ecology recently re-issued jurisdiction-based permits and the emphasis of the water quality staff is currently on supporting that effort. These permits will be in effect through August 2018.

Social marketing/ behavior change

This work is the focus of PSP’s Stewardship/Outreach group – they are in a better position to provide expertise and funding. We could consider a more targeted theme related to this in the future.

Refine anadromous presence maps/ stream typing

We are currently supporting this work and will continue to do so. However, this is not broad enough to constitute a major theme. So we are proposing it as an area of focus under the broader themes of supporting GMA updates and protecting/restoring riparian habitat. This is specific work that supports local governments and tribes in making better land use decisions.

Implement salmon recovery plans

This is a very broad theme that incorporates a wide variety of project types. In order to more effectively focus our funding, we are proposing the theme of protecting and restoring riparian habitat. This will likely result in implementing some salmon recovery projects currently in plans, and also support other foundational work that will benefit salmon habitat. We also considered the fact that there is another dedicated source of funds for this as administered by the Salmon Recovery Funding Board. With the Watershed Grant, we are emphasizing protection of habitat because it is more cost effective and complements the larger restoration investments that can be funded by the SRF Board and other sources.

4. Projects Funded by the Watershed Grant through Rounds 1-3 The following is a list of projects we are funding under Rounds 1 through 3 of the Watershed Grant. In addition, we are conducting two competitive processes that will be funded under Round 3. The first opportunity, which is closing soon, will result in awards to local governments and tribes to develop watershed-based planning and regulatory tools. Applicants will need to show how they plan to apply a watershed framework and how the results will be integrated into updates of comprehensive plans, critical areas ordinances and other regulatory codes and planning documents. The goal is to improve land use decisions to better protect and restore ecological processes, water quality, and habitat at a watershed scale. The second competitive process will be focused on stormwater retrofit planning and will be published in January or February 2013. For this process, we will issue grant awards to local or tribal governments to implement a watershed-based approach in developing stormwater retrofit plans and project lists in priority watersheds.

Restoring Riparian Areas/Floodplains/Streams

Improving water quality and habitat in middle Green River sub-basin – King County: $300,000 The County will use the grant to address water quality problems and degraded salmon habitat by restoring riparian zones along three stream reaches.

Floodplains by design – habitat recovery through collective action – The Nature Conservancy: $500,000 The Nature Conservancy and partners will identify floodplain areas in Puget Sound that have the highest potential to advance multiple benefits such as habitat and flood protection and use this analysis as a basis to integrate flood risk reduction and ecosystem restoration information.

Engineered Nooksack River log jams – Nooksack Indian Tribe: $500,000

NEP Watershed Grant Overview & Status 5 January 10, 2013

The Tribe will design and construct engineered log jams in two Nooksack River reaches at South Fork near Hutchinson Reach and North Fork at Wildcat Reach to habitat conditions and help improve salmon abundance and productivity, particularly Puget Sound Chinook.

Knickerbocker Reach floodplain restoration phase 1, Thornton Creek – City of Seattle: $120,000 This is a two-phase project to restore floodplain function and stream habitat in an urban stream in north Seattle. The project will result in optimizing floodplain storage, reducing stream velocities and improving instream and riparian habitat quality.

Improving Resource Data/Modeling

Improve stream data to protect freshwater ecosystems – Kitsap County: $369,176 The County will expand its water typing assessment by conducting a field survey of stream reaches and developing, testing and refining a computer model to better predict distribution of streams and fish habitats throughout the county.

Predictive modeling, protecting coastal salmon streams – Tulalip Tribes: $186,923 The tribe and its partners will develop a predictive model for Island County watersheds to identify coastal streams that have key characteristics making them suitable salmon rearing habitat. This information will be incorporated in updates to regulations, ordinances, and plans.

Integrate land use permitting & plan data with watershed characterization – Washington Department of Commerce: $360,000 Commerce is evaluating how best to use, synthesize and display available data to monitor changes in land use. This will include developing recommendations on using these data and integrating it with the Puget Sound Watershed Characterization data to improve land use planning decisions.

Channel migration zone assessments – Washington Department of Ecology: $132,000 This project will provide a verified methodology and technical guidance for planning-level channel migration zone mapping that can be used for floodplain management, habitat recovery, and other purposes. This will also include a technical guidance for more detailed CMZ assessments where needed.

Update Freshwater Riparian Habitat Guidance – Washington Department of Fish and Wildlife: $261,000 WDFW will develop guidance for managing freshwater riparian habitat that incorporates current best available science and includes buffer recommendations, new stream typing classifications, recommendations for freshwater lakes and ponds, and other components.

Land cover change detection analysis – Washington Department of Fish and Wildlife: $379,609 This project will conduct an analysis of vegetation changes in riparian management zones for all Puget Sound marine shorelines and shorelines of major rivers and streams using high-resolution imagery covering 2006-2011. The goal is to develop a status and trend monitoring program to measure implementation success and effectiveness of land use policies and regulations.

Combating invasive species – Washington Invasive Species Council: $225,000 The Council will use the grant to continue work to identify the extent and impact of invasive species in Puget Sound watersheds. The council will build a database and species maps, and develop a survey tool to update the information annually.

Managing Stormwater

Innovative Penn Cove surface water runoff control project – Town of Coupeville: $495,523 Design and build a constructed wetland facility that will collect, clean and cool surface water runoff before the water is discharged into Penn Cove. The project will assess the effectiveness of this facility to reduce the harmful effects of human activities on water quality and habitat in Penn Cove.

Develop Low Impact Development Module for Western Washington Hydrology Model – Clear Creek Solutions: $160,000

NEP Watershed Grant Overview & Status 6 January 10, 2013

This project will result in improvements to the Western Washington Hydrology Model that include new LID features, updated precipitation data, and other improvements. This model is used by engineers and planners throughout western Washington in planning stormwater retrofits and new development.

Develop Operations & Maintenance Standards, Guidance & Training for Low Impact Development (LID) Facilities and Practices – Herrera Environmental: $120,000 This project will result in standards, guidance and training for the operation and maintenance of LID facilities that will be useful to local jurisdictions in planning efforts for meeting the new LID requirements in the Phase I and II NPDES Municipal Stormwater permits.

Hood Canal regional stormwater retrofit plan – Hood Canal Coordinating Council: $250,000 The Council will identify, prioritize, and plan for retrofits of stormwater infrastructure in locations most important to protect and restore to limit surface water runoff and related pollution, and boost rainwater infiltration in the Hood Canal watershed.

Strategies for Preserving Small Puget Sound Drainages with “Excellent” B-IBI Scores and Restoring 30 Drainages with “Fair” B-IBI Scores – King County Water and Land Resources: $134,000 This work will include synthesizing data from the Puget Sound Stream Benthos database, developing a restoration decision framework for restoring “Fair” drainages to “Good”, identifying restoration sites, identifying "excellent" drainages needing protection, developing protection and restoration strategies.

Regional master plan for surface water runoff – City of Mukilteo: $75,000 The City will develop a regional watershed-based stormwater plan to address increased levels of development, land clearing and impervious surfaces.

Develop Project List for Stormwater Retrofits – Puget Sound Regional Council: $125,000 This award will fund phase 1 of a program to develop a prioritized stormwater retrofit project list for the four most urban counties in the Puget Sound area.

Putting science to work to address surface water runoff – Washington State University: $480,584 This work will include testing of bioretention methods and permeable pavement. The results will be used to develop scientifically-defensible performance and design guidelines for low impact development techniques to be disseminated and applied on-the-ground with partners in four different watersheds across Puget Sound.

Ebey’s Prairie stormwater remediation project – Whidbey Island Conservation District: $120,000 This work will take a watershed-based approach to reduce contaminants that enter the drainage system in Ebey’s Prairie by controlling sources and improving water treatment facilities. This will include a targeted outreach and education effort and technical assistance to landowners.

Developing Local Watershed-based Land Use Planning Approaches

Watershed based land-use planning – Kitsap County: $134,814 Kitsap County will prepare land-use recommendations for the county’s 2016 comprehensive plan update, based on an analysis through the Puget Sound Watershed Characterization project.

Integrated watershed management plan using Puget Sound Watershed Characterization – Hood Canal Coordinating Council: $300,000 HCCC will complete an integrated watershed management plan using the Puget Sound Watershed Characterization to guide the development of an in-lieu-fee mitigation program in the Hood Canal region.

Build regional alliances to address planning issues – Washington Department of Commerce: $112,000 Commerce will develop and implement a plan to form regional alliances and facilitate regional planning. This plan will include convening meetings, workshops and other processes to bring together local planning and management entities and facilitating development of regional planning forums, tools and products.

Watershed characterization technical assistance team (WCTAT) support – Washington Departments of Commerce, Ecology, and Fish and Wildlife: $1,226,620

NEP Watershed Grant Overview & Status 7 January 10, 2013

The WCTAT is providing support to local governments, tribes and other entities in interpreting and implementing watershed frameworks such as the Puget Sound Watershed Characterization and incorporating a watershed framework into planning and restoration projects.

Protecting & Restoring Ecosystems through Protecting Rural/Working Lands

Integrating market-based tools to protect and restore land – King County: $200,000 The County will establish an integrated transfer of development rights program to help protect agricultural and working forest lands while restoring ecologically important lands using mitigation tools such as wetland mitigation banks and in-lieu fees.

Snoqualmie Valley grown and active: ‘When cows meet clams’ – King Co. Conservation District: $153,402 This project will establish an agricultural and forestry production, marketing, and tourism training program to help keep working farms and forests in the Snoqualmie Valley.

Sustaining ecological processes, working forests on lands at risk of development – Kitsap County: $270,000 The County will establish a community partnership to permanently protect working forest lands that provide key ecosystem benefits. This partnership will work to minimize the conversion of forest lands to residential development by applying a variety of land conservation tools.

Farms, fish and floods initiative – The Nature Conservancy: $305,000 TNC and its partners will identify and prioritize potential restoration projects and complete an agricultural land base analysis in the lower Skagit delta to evaluate long-term farmland protection needs to maintain a viable agricultural industry. The goal is to restore the estuary and protect agricultural lands.

Upper Nisqually ecosystem services demonstration – Nisqually Indian Tribe: $170,000 The Tribe and its partners will establish a framework for marketing the environmental and economic benefits that intact lands provide such as habitat protection and reducing surface water runoff. This is intended to provide incentives to landowners to protect and restore forested lands.

Establish transfer of development rights program – Skagit County: $200,068 This project will establish a TDR program in Skagit County where private and public developers purchase development rights from farmers or forest landowners so their land remains undeveloped. These development rights can then be used in urban areas better suited to accommodate additional growth.

Managing land use – Snohomish County: $367,000 The County will increase its urban densities by evaluating and developing infill strategies, including enhancement of transit corridors and implementing a county-wide TDR program. This work will incorporate watershed characterization into the Sustainable Lands Strategy Process.

Addressing agricultural land conversion & barriers to direct markets – Thurston Conservation District: $187,450 This project will link farmers looking for land with land owners seeking to protect their lands from development using various land planning tools including open space agriculture tax enrollment, conservation easements, and TDRs. This will also provide farmers training for business planning and accessing local markets.

Watershed services market demonstration projects – Washington Dept. of Natural Resources: $200,000 The WDNR will initiate demonstration projects in two watersheds to establish markets where forest landowners receive money to protect and maintain their lands from downstream beneficiaries who purchase watershed services such as surface water runoff control and salmon habitat enhancement.

Enhancing agriculture and water quality in Nooksack River basin – Whatcom County: $358,471 The County and its partners will establish a system that will provide incentives to landowners to restore agricultural lands in northern Whatcom County by marketing the services that intact streams and riparian areas provide such as protecting habitat and improving water quality. The project will identify high priority areas to protect and restore, and explore options for protecting these properties such as TDR and in-lieu-fee.