An agency proposing development on State-owned land or responsible for the administration of a water-dependent facility or activity located on State-owned land: In accordance with Natural Resources Article, §8-1808.3, Annotated Code of Maryland, and COMAR 27.02.05.09, shall limit development in the buffer to the minimum lot coverage necessary to accommodate each water-dependent facility or activity; Except as otherwise provided under Regulations .04—.04-3 of this chapter, may develop a water-dependent facility or activity in the buffer if: The facility or activity is water-dependent; The facility or activity meets a recognized public need; Adverse impacts on water quality and fish, wildlife, and plant [habitat] habitats are first avoided or, if unavoidable, minimized; and A nonwater-dependent project associated with the water-dependent facility or activity is located outside the buffer; May not place, or approve the placement of, dredged material in the buffer or a portion of the Critical Area that has been designated as a habitat protection area, except as necessary for: A beneficial use approved by the Board of Public Works or the Department of the Environment, such as: Backfill for a shoreline stabilization measure; Use in a nonstructural shoreline stabilization measure, including a living shoreline; Beach nourishment; Restoration of an island; The creation, restoration, or enhancement of a wetland or a fish, wildlife, or plant habitat; or Any other approved beneficial use; or Placement in an area that was approved for the disposal of channel maintenance dredged material before June 11, 1988; and Shall ensure: The avoidance or, if unavoidable, the minimization of impacts to fish, wildlife, or plant habitat; and Mitigation at a ratio of 1:1 based on the square footage of the area of the canopy coverage removed.