Economic valuation of natural resources: a handbook for coastal resource policymakers

Professionals who are responsible for coastal environmental and natural resource planning and management have a need to become conversant with new concepts designed to provide quantitative measures of the environmental benefits of natural resources. These amenities range from beaches to wetlands to clean water and other assets that normally are not bought and sold in everyday markets. At all levels of government — from federal agencies to townships and counties — decisionmakers are being asked to account for the costs and benefits of proposed actions. To non-specialists, the tools of professional economists are often poorly understood and sometimes inappropriate for the problem at hand. This handbook is intended to bridge this gap. The most widely used organizing tool for dealing with natural and environmental resource choices is benefit-cost analysis — it offers a convenient way to carefully identify and array, quantitatively if possible, the major costs, benefits, and consequences of a proposed policy or regulation. The major strength of benefit-cost analysis is not necessarily the predicted outcome, which depends upon assumptions and techniques, but the process itself, which forces an approach to decision-making that is based largely on rigorous and quantitative reasoning. However, a major shortfall of benefit-cost analysis has been the difficulty of quantifying both benefits and costs of actions that impact environmental assets not normally, nor even regularly, bought and sold in markets. Failure to account for these assets, to omit them from the benefit-cost equation, could seriously bias decisionmaking, often to the detriment of the environment. Economists and other social scientists have put a great deal of effort into addressing this shortcoming by developing techniques to quantify these non-market benefits. The major focus of this handbook is on introducing and illustrating concepts of environmental valuation, among them Travel Cost models and Contingent Valuation. These concepts, combined with advances in natural sciences that allow us to better understand how changes in the natural environment influence human behavior, aim to address some of the more serious shortcomings in the application of economic analysis to natural resource and environmental management and policy analysis. Because the handbook is intended for non-economists, it addresses basic concepts of economic value such as willingness-to-pay and other tools often used in decision making such as costeffectiveness analysis, economic impact analysis, and sustainable development. A number of regionally oriented case studies are included to illustrate the practical application of these concepts and techniques.

Marine eutrophication review. Part 1: Quantifying the effects of nitrogen enrichment on phytoplankton in coastal ecosystems; Part 2: Bibliography with abstracts

Professionals who are responsible for coastal environmental and natural resource planning and management have a need to become conversant with new concepts designed to provide quantitative measures of the environmental benefits of natural resources. These amenities range from beaches to wetlands to clean water and other assets that normally are not bought and sold in everyday markets. At all levels of government — from federal agencies to townships and counties — decisionmakers are being asked to account for the costs and benefits of proposed actions. To non-specialists, the tools of professional economists are often poorly understood and sometimes inappropriate for the problem at hand. This handbook is intended to bridge this gap. The most widely used organizing tool for dealing with natural and environmental resource choices is benefit-cost analysis — it offers a convenient way to carefully identify and array, quantitatively if possible, the major costs, benefits, and consequences of a proposed policy or regulation. The major strength of benefit-cost analysis is not necessarily the predicted outcome, which depends upon assumptions and techniques, but the process itself, which forces an approach to decision-making that is based largely on rigorous and quantitative reasoning. However, a major shortfall of benefit-cost analysis has been the difficulty of quantifying both benefits and costs of actions that impact environmental assets not normally, nor even regularly, bought and sold in markets. Failure to account for these assets, to omit them from the benefit-cost equation, could seriously bias decisionmaking, often to the detriment of the environment. Economists and other social scientists have put a great deal of effort into addressing this shortcoming by developing techniques to quantify these non-market benefits. The major focus of this handbook is on introducing and illustrating concepts of environmental valuation, among them Travel Cost models and Contingent Valuation. These concepts, combined with advances in natural sciences that allow us to better understand how changes in the natural environment influence human behavior, aim to address some of the more serious shortcomings in the application of economic analysis to natural resource and environmental management and policy analysis. Because the handbook is intended for non-economists, it addresses basic concepts of economic value such as willingness-to-pay and other tools often used in decision making such as costeffectiveness analysis, economic impact analysis, and sustainable development. A number of regionally oriented case studies are included to illustrate the practical application of these concepts and techniques.

Bibliography of synthesis documents on selected coastal ocean topics

This compilation of references to works which synthesize information on coastal topics is intended to be useful to resource managers in decision making processes. However, the utility must be understand in terms of its limited coverage. The bibliography is not inclusive of all the published materials on the topics selected. Coverage is clearly defined in the following paragraph. The time span of the bibliography is limited to references that were published from I983 to 1993, except for a last-minute addition of a few 1994 publications. All searches were done in mid- to late-1993. The bibliography was compiled from searches done on the following DIALOG electronic databases: Aquatic Sciences and Fisheries Abstracts, BlOSlS Previews, Dissertation Abstracts Online, Life Sciences Collection, NTlS (National Technical lnformation Service), Oceanic Abstracts, Pollution Abstracts, SciSearch, and Water Resources Abstracts. In addition, two NOAA electronic datases were searched: the NOAA Library and lnformation Catalog and the NOAA Sea Grant Depository Database. Synthesis of information is not an ubiquitous term used in database development. In order to locate syntheses of required coastal topics, 89 search terms were used in combinations which required 10 searches from each file. From the nearly 6,000 citations which resulted from the electronic searches, the most appropriate were selected to produce this bibliography. The document was edited and indexed using Wordperfect software. When available, an abstract has been included. Every abstract was edited. The bibliography is subdivided into four main topics or sections: ecosystems, coastal water body conditions, natural disasters, and resource management. In the ecosystems section, emphasis is placed on organisms in their environment on the major coastlines of the U.S. In the second section, coastal water body conditions, the environment itself is emphasized. References were found for the Alaskan coast, but none were found for Hawaii. The third section, on natural disasters, emphasizes environmental impacts resulting from natural phenomena. Guidelines, planning and management reports, modelling documents, strategic and restoration plans, and environmental economics related to sustainability are included in the fourth section, resource management. Author, geographic, and subject indices indices are provided. The authors would like to thank Victor Omelczenko and Terry Seldon of the NOAA Sea Grant Office for access to and training on the NOAA Sea Grant Depository Database. We are grateful also to Dorothy Anderson, Philip Keavey, and Elizabeth Petersen who reviewed the draft document.

Technology and success in restoration, creation, and enhancement of Spartina afferniflora marshes in the United States. Vol. 1: Executive Summary and Annotated Bibliography

Extensive losses of coastal wetlands in the United States caused by sea-level rise, land subsidence, erosion, and coastal development have increased hterest in the creation of salt marshes within estuaries. Smooth cordgrass Spartina altemiflora is the species utilized most for salt marsh creation and restoration throughout the Atlantic and Gulf coasts of the U.S., while S. foliosa and Salicomia virginica are often used in California. Salt marshes have many valuable functions such as protecting shorelines from erosion, stabilizing deposits of dredged material, dampening flood effects, trapping water-born sediments, serving as nutrient reservoirs, acting as tertiary water treatment systems to rid coastal waters of contaminants, serving as nurseries for many juvenile fish and shellfish species, and serving as habitat for various wildlife species (Kusler and Kentula 1989). The establishment of vegetation in itself is generally sufficient to provide the functions of erosion control, substrate stabilization, and sediment trapping. The development of other salt marsh functions, however, is more difficult to assess. For example, natural estuarine salt marshes support a wide variety of fish and shellfish, and the abundance of coastal marshes has been correlated with fisheries landings (Turner 1977, Boesch and Turner 1984). Marshes function for aquatic species by providing breeding areas, refuges from predation, and rich feeding grounds (Zimmerman and Minello 1984, Boesch and Turner 1984, Kneib 1984, 1987, Minello and Zimmerman 1991). However, the relative value of created marshes versus that of natural marshes for estuarine animals has been questioned (Carnmen 1976, Race and Christie 1982, Broome 1989, Pacific Estuarine Research Laboratory 1990, LaSalle et al. 1991, Minello and Zimmerman 1992, Zedler 1993). Restoration of all salt marsh functions is necessary to prevent habitat creation and restoration activities from having a negative impact on coastal ecosystems.

Mapping reef fish and the seascape: using acoustics and spatial modeling to guide coastal management

Reef fish distributions are patchy in time and space with some coral reef habitats supporting higher densities (i.e., aggregations) of fish than others. Identifying and quantifying fish aggregations (particularly during spawning events) are often top priorities for coastal managers. However, the rapid mapping of these aggregations using conventional survey methods (e.g., non-technical SCUBA diving and remotely operated cameras) are limited by depth, visibility and time. Acoustic sensors (i.e., splitbeam and multibeam echosounders) are not constrained by these same limitations, and were used to concurrently map and quantify the location, density and size of reef fish along with seafloor structure in two, separate locations in the U.S. Virgin Islands. Reef fish aggregations were documented along the shelf edge, an ecologically important ecotone in the region. Fish were grouped into three classes according to body size, and relationships with the benthic seascape were modeled in one area using Boosted Regression Trees. These models were validated in a second area to test their predictive performance in locations where fish have not been mapped. Models predicting the density of large fish (≥29 cm) performed well (i.e., AUC = 0.77). Water depth and standard deviation of depth were the most influential predictors at two spatial scales (100 and 300 m). Models of small (≤11 cm) and medium (12–28 cm) fish performed poorly (i.e., AUC = 0.49 to 0.68) due to the high prevalence (45–79%) of smaller fish in both locations, and the unequal prevalence of smaller fish in the training and validation areas. Integrating acoustic sensors with spatial modeling offers a new and reliable approach to rapidly identify fish aggregations and to predict the density large fish in un-surveyed locations. This integrative approach will help coastal managers to prioritize sites, and focus their limited resources on areas that may be of higher conservation value.

National Centers for Coastal Ocean Science Coastal Ecosystem Assessment Program: a manual of methods

Environmental managers strive to preserve natural resources for future generations but have limited decision-making tools to define ecosystem health. Many programs offer relevant broad-scale, environmental policy information on regional ecosystem health. These programs provide evidence of environmental condition and change, but lack connections between local impacts and direct effects on living resources. To address this need, the National Oceanic and Atmospheric Administration/National Ocean Service (NOAA/NOS) Cooperative Oxford Laboratory (COL), in cooperation with federal, state, and academic partners, implemented an integrated biotic ecosystem assessment on a sub-watershed 14-digit Hydrologic Unit Code (HUD) scale in Chesapeake Bay. The goals of this effort were to 1) establish a suite of bioindicators that are sensitive to ecosystem change, 2) establish the effects of varying land-use patterns on water quality and the subsequent health of living resources, 3) communicate these findings to local decision-makers, and 4) evaluate the success of management decisions in these systems. To establish indicators, three sub-watersheds were chosen based on statistical analysis of land-use patterns to represent a gradient from developed to agricultural. The Magothy (developed), Corsica (agricultural), and Rhode (reference) Rivers were identified. A random stratified design was developed based on depth (2m contour) and river mile. Sampling approaches were coordinated within this structure to allow for robust system comparisons. The sampling approach was hierarchal, with metrics chosen to represent a range from community to cellular level responses across multiple organisms. This approach allowed for the identification of sub-lethal stressors, and assessment of their impact on the organism and subsequently the population. Fish, crabs, clams, oysters, benthic organisms, and bacteria were targeted, as each occupies a separate ecological niche and may respond dissimilarly to environmental stressors. Particular attention was focused on the use of pathobiology as a tool for assessing environmental condition. By integrating the biotic component with water quality, sediment indices, and land- use information, this holistic evaluation of ecosystem health will provide management entities with information needed to inform local decision-making processes and establish benchmarks for future restoration efforts.

Ecological condition of coastal ocean waters of the northwestern Gulf of Mexico: 2011

In August 2011, the NOAA National Ocean Service (NOS) conducted an assessment of the status of ecological condition of soft-bottom habitat and overlying waters of the continental shelf in the northwestern Gulf of Mexico (GOM). The original sampling design included 50 randomly selected sites from the Mississippi River delta to the U.S./Mexican border, representing a total area of 111,162 square kilometers; however, vessel failures and inclement weather precluded sampling at 16 sites in the western-most part of the study region. Sampling was completed at the remaining 34 sites in offshore waters between the Mississippi River delta and Freeport, Texas, representing an estimated 75,591 square kilometers. Field sampling followed standard methods and indicators applied in prior NOAA coastal studies and EPA’s Environmental Monitoring and Assessment Program (EMAP) and National Coastal Assessment (NCA). A key feature adopted from these studies was the incorporation of a random probabilistic sampling design. Such a design provides a basis for making unbiased statistical estimates of the spatial extent of ecological condition relative to various measured indicators and corresponding thresholds of concern. Indicators included multiple measures of water quality, sediment quality, and biological condition (benthic fauna, fish tissue contaminant levels). Water depths ranged from 13 – 83 m throughout the study area. About 9 % of the area had sediments composed of sands (< 20 % silt+clay), 47 % of the area was composed of intermediate muddy sands (20 – 80 % silt+clay), and 44 % of the sampled area consisted of mud (> 80 % silt+clay). About 50 % of the area (represented by 17 sites) had sediment total organic carbon (TOC) concentrations < 5 mg/g and all of the sites sampled had levels of TOC < 20 mg/g, well below the range associated with potentially harmful effects to benthic fauna (> 50 mg/g). Surface salinities ranged from 23.4 – 36.5 psu, with salinity generally increasing with distance west of the Mississippi River delta. Bottom salinities varied between 31.1 and 36.5 psu, with lowest values occurring at shallow, inner-shelf stations. Surface-water temperatures varied between 29.8 and 31.5 ºC, while near-bottom waters ranged in temperature from 19.4 – 31 ºC. An index of density stratification (Δσt) indicated that portions of coastal shelf waters in the northwestern GOM at the time of this sampling were strongly stratified. Values of Δσt at 19 of the 34 sites sampled in this study (56 % of the study area) ranged from 2.2 to 12.4, which is within the range considered to be indicative of strong vertical stratification (Δσt > 2). Stratification was strongest close to the Mississippi River delta, and decreased with distance west of the delta.

Monitoring well-being and changing environmental conditions in coastal communities: development of an assessment method

The intersection of social and environmental forces is complex in coastal communities. The well-being of a coastal community is caught up in the health of its environment, the stability of its economy, the provision of services to its residents, and a multitude of other factors. With this in mind, the project investigators sought to develop an approach that would enable researchers to measure these social and environmental interactions. The concept of well-being proved extremely useful for this purpose. Using the Gulf of Mexico as a regional case study, the research team developed a set of composite indicators to be used for monitoring well-being at the county-level. The indicators selected for the study were: Social Connectedness, Economic Security, Basic Needs, Health, Access to Social Services, Education, Safety, Governance, and Environmental Condition. For each of the 37 sample counties included in the study region, investigators collected and consolidated existing, secondary data representing multiple aspects of objective well-being. To conduct a longitudinal assessment of changing wellbeing and environmental conditions, data were collected for the period of 2000 to 2010. The team focused on the Gulf of Mexico because the development of a baseline of well-being would allow NOAA and other agencies to better understand progress made toward recovery in communities affected by the Deepwater Horizon oil spill. However, the broader purpose of the project was to conceptualize and develop an approach that could be adapted to monitor how coastal communities are doing in relation to a variety of ecosystem disruptions and associated interventions across all coastal regions in the U.S. and its Territories. The method and models developed provide substantial insight into the structure and significance of relationships between community well-being and environmental conditions. Further, this project has laid the groundwork for future investigation, providing a clear path forward for integrated monitoring of our nation’s coasts. The research and monitoring capability described in this document will substantially help counties, local organizations, as well state and federal agencies that are striving to improve all facets of community well-being.

Integrated conceptual ecosystem model development for the Florida Keys/Dry Tortugas coastal marine ecosystem: MARine Estuarine goal Setting (MARES) for South Florida

The overall goal of the MARine and Estuarine goal Setting (MARES) project for South Florida is “to reach a science-based consensus about the defining characteristics and fundamental regulating processes of a South Florida coastal marine ecosystem that is both sustainable and capable of providing the diverse ecosystem services upon which our society depends.” Through participation in a systematic process of reaching such a consensus, science can contribute more directly and effectively to the critical decisions being made by both policy makers and by natural resource and environmental management agencies. The document that follows briefly describes the MARES project and this systematic process. It then describes in considerable detail the resulting output from the first two steps in the process, the development of conceptual diagrams and an Integrated Conceptual Ecosystem Model (ICEM) for the first subregion to be addressed by MARES, the Florida Keys/Dry Tortugas (FK/DT). What follows with regard to the FK/DT is the input received from more than 60 scientists, agency resource managers, and representatives of environmental organizations beginning with a workshop held December 9-10, 2009 at Florida International University in Miami, Florida.

Integrated conceptual ecosystem model development for the southeast Florida coastal marine ecosystem: MARine Estuarine goal Setting (MARES) for South Florida

The overall goal of the MARES (MARine and Estuarine goal Setting) project for South Florida is “to reach a science-based consensus about the defining characteristics and fundamental regulating processes of a South Florida coastal marine ecosystem that is both sustainable and capable of providing the diverse ecosystem services upon which our society depends.” Through participation in a systematic process of reaching such a consensus, science can contribute more directly and effectively to the critical decisions being made both by policy makers and by natural resource and environmental management agencies. The document that follows briefly describes MARES overall and this systematic process. It then describes in considerable detail the resulting output from the first step in the process, the development of an Integrated Conceptual Ecosystem Model (ICEM) for the third subregion to be addressed by MARES, the Southeast Florida Coast (SEFC). What follows with regard to the SEFC relies upon the input received from more than 60 scientists, agency resource managers, and representatives of environmental organizations during workshops held throughout 2009–2012 in South Florida.

Integrated conceptual ecosystem model development for the southwest Florida shelf coastal marine ecosystem: MARine Estuarine goal Setting (MARES) for South Florida

The overall goal of the MARine and Estuarine goal Setting (MARES) project for South Florida is “to reach a science-based consensus about the defining characteristics and fundamental regulating processes of a South Florida coastal marine ecosystem that is both sustainable and capable of providing the diverse ecosystem services upon which our society depends.” Through participation in a systematic process of reaching such a consensus, science can contribute more directly and effectively to the critical decisions being made by both policy makers and by natural resource and environmental management agencies. The document that follows briefly describes the MARES project and this systematic process. It then describes in considerable detail the resulting output from the first two steps in the process, the development of conceptual diagrams and an Integrated Conceptual Ecosystem Model (ICEM) for the second subregion to be addressed by MARES, the Southwest Florida Shelf (SWFS). What follows with regard to the SWFS is the input received from more than 60 scientists, agency resource managers, and representatives of environmental organizations beginning with a workshop held August 19-20, 2010 at Florida Gulf Coast University in Fort Myers, Florida.

Assessing the impacts of the Deepwater Horizon oil spill: the National Status and Trends Program response; a summary report of coastal contamination

NOAA’s National Status and Trends Program (NS&T) collected oyster tissue and sediments for quantification of polycyclic aromatic hydrocarbons (PAHs) and petroleum associated metals before and after the landfall of oil from the Deepwater Horizon incident of 2010. These new pre- and post- landfall measurements were put into a historical context by comparing them to data collected in the region over three decades during Mussel Watch monitoring. Overall, the levels of PAHs in both sediment and oysters both pre- and post-landfall were within the range of historically observed values for the Gulf of Mexico. Some specific sites did have elevated PAH levels. While those locations generally correspond to areas in which oil reached coastal areas, it cannot be conclusively stated that the contamination is due to oiling from the Deepwater Horizon incident at these sites due to the survey nature of these sampling efforts. Instead, our data indicate locations along the coast where intensive investigation of hydrocarbon contamination should be undertaken. Post-spill concentrations of oil-related trace metals (V, Hg, Ni) were generally within historically observed ranges for a given site, however, nickel and vanadium were elevated at some sites including areas in Mississippi Sound and Galveston, Terrebonne, Mobile, Pensacola, and Apalachicola Bays. No oyster tissue metal body burden exceeded any of the United States Food and Drug Administration’s (FDA) shellfish permissible action levels for human consumption.

Ecological condition of coastal ocean waters of the U.S. continental shelf off South Florida: 2007

A study was initiated with field work in May 2007 to assess the status of ecological condition and stressor impacts throughout the U.S. continental shelf off South Florida, focusing on soft-bottom habitats, and to provide this information as a baseline for evaluating future changes due to natural or human-induced disturbances. The boundaries of the study region extended from Anclote Key on the western coast of Florida to West Palm Beach on the eastern coast of Florida, inclusive of the Florida Keys National Marine Sanctuary (FKNMS), and from navigable depths along the shoreline seaward to the shelf break (~100m). The study incorporated standard methods and indicators applied in previous national coastal monitoring programs — U.S. Environmental Protection Agency’s (EPA) Environmental Monitoring and Assessment Program (EMAP) and National Coastal Assessment (NCA) — including multiple measures of water quality, sediment quality, and biological condition. Synoptic sampling of the various indicators provided an integrative weight-of-evidence approach to assessing condition at each station and a basis for examining potential associations between presence of stressors and biological responses. A probabilistic sampling design, which included 50 stations distributed randomly throughout the region, was used to provide a basis for estimating the spatial extent of condition relative to the various measured indicators and corresponding assessment endpoints (where available). The study was conducted through a large cooperative effort by National Oceanic and Atmospheric Administration (NOAA)/National Centers for Coastal Ocean Science (NCCOS), EPA, U.S. Geological Survey (USGS), NOAA/Oceanic and Atmospheric Research (OAR)/Atlantic Oceanographic and Meteorological Laboratory in Miami, FKNMS, and the Florida Fish and Wildlife Conservation Commission (FWC). The majority of the South Florida shelf had high levels of dissolved oxygen (DO) in near-bottom water (> 5 mg L-1) indicative of “good” water quality.. DO levels in bottom waters exceeded this upper threshold at 98.8% throughout the coastal-ocean survey area. Only 1.2% of the region had moderate DO levels (2-5 mg/L) and no part of the survey area had DO <2.0 mg/L. In addition, offshore waters throughout the region had relatively low levels of total suspended solids (TSS), nutrients, and chlorophyll a indicative of oligotrophic conditions. Results suggested good sediment quality as well. Sediments throughout the region, which ranged from sands to intermediate muddy sands, had low levels of total organic carbon (TOC) below bioeffect guidelines for benthic organisms. Chemical contaminants in sediments were also mostly at low, background levels. For example, none of the stations had chemicals in excess of corresponding Effects-Range Median (ERM) probable bioeffect values or more than one chemical in excess of lower-threshold Effects-Range Low (ERL) values. Cadmium was the only chemical that occurred at moderate concentrations between corresponding ERL and ERM values. Sixty fish samples from 28 stations were collected and analyzed for chemical contaminants. Eleven of these samples (39% of sites) had moderate levels of contaminants, between lower and upper non-cancer human-health thresholds, and ten (36% of sites) had high levels of contaminants above the upper threshold.

Baseline assessment of Fish and Coral bays, St. John, U.S. Virgin Islands in support of watershed restoration activities, part I: fish, coral and benthic habitats

This report provides baseline biological data on fishes, corals and habitats in Coral and Fish Bays, St. John, USVI. A similar report with data on nutrients and contaminants in the same bays is planned to be completed in 2013. Data from NOAA’s long-term Caribbean Coral Reef Ecosystem Monitoring program was compiled to provide a baseline assessment of corals, fishes and habitats from 2001 to 2010, data needed to assess the impacts of erosion control projects installed from 2010 to 2011. The baseline data supplement other information collected as part of the USVI Watershed Stabilization Project, a project funded by the American Recovery and Reinvestment Act of 2009 and distributed through the NOAA Restoration Center, but uses data which is not within the scope of ARRA funded work. We present data on 16 ecological indicators of fishes, corals and habitats. These indicators were chosen because of their sensitivity to changes in water quality noted in the scientific literature (e.g., Rogers 1990, Larsen and Webb 2009). We report long-term averages and corresponding standard errors, plot annual averages, map indicator values and list inventories of coral and fish species identified among surveys. Similar data will be needed in the future to make rigorous comparisons and determine the magnitude of any impacts from watershed stabilization.

Shallow-water benthic habitats of southwest Puerto Rico

This report describes the creation and assessment of benthic habitat maps for shallow-water (<30m) marine environments of the Guánica/Parguera and Finca Belvedere Natural Reserve in southwest Puerto Rico. The objective was to provide spatially-explicit information on the habitat types, biological cover and live coral cover of the region’s coral reef ecosystem. These fine-scale habitat maps, generated by interpretation of 2010 satellite imagery, provide an update to NOAA’s previous digital maps of the U.S. Caribbean (Kendall et al., 2001) for these areas. Updated shallow-water benthic habitat maps for the Guánica/Parguera region are timely in light of ongoing restoration efforts in the Guánica Bay watershed. The bay is served directly by one river, the Rio Loco, which flows intermittently and more frequently during the rainy season. The watershed has gone through a series of manipulations and alterations in past decades, mainly associated with agricultural practices, including irrigation systems, in the upper watershed. The Guánica Lagoon, previously situated to the north of the bay, was historically the largest freshwater lagoon in Puerto Rico and served as a natural filter and sediment sink prior to the discharge of the Rio Loco into the Bay. Following alterations by the Southwest Water Project in the 1950s, the Lagoon’s adjacent wetland system was ditched and drained; no longer filtering and trapping sediment from the Rio Loco. Land use in the Guánica Bay/Rio Loco watershed has also gone through several changes (CWP, 2008). Similar to much of Puerto Rico, the area was largely deforested for sugar cane cultivation in the 1800s, although reforestation of some areas occurred following the cessation of sugar cane production (Warne et al., 2005). The northern area of the watershed is generally mountainous and is characterized by a mix of forested and agricultural lands, particularly coffee plantations. Closer to the coast, the Lajas Valley Agricultural Reserve extends north of Guánica Bay to the southwest corner of the island. The land use practices and watershed changes outlined above have resulted in large amounts of sediment being distributed in the Rio Loco river valley (CWP, 2008). Storm events and seasonal flooding also transport large amounts of sediment to the coastal waters. The threats of upstream watershed practices to coral reefs and the nearshore marine environment have been gaining recognition. Guánica Bay, and the adjacent marine waters, has been identified as a “management priority area” by NOAA’s Coral Reef Conservation Program (CRCP, 2012). In a recent Guánica Bay watershed management plan, several critical issues were outlined in regards to land-based sources of pollution (LBSP; CWP, 2008). These include: upland erosion from coffee agriculture, filling of reservoirs with sediment, in-stream channel erosion, loss of historical Guánica lagoon, legacy contaminants and sewage treatment (CWP, 2008). The plan recommended several management actions that could be taken to reduce impacts of LBSP, which form the basis of Guánica watershed restoration efforts.