The Bush administration's policy of turning over wetlands to developers almost certainly also contributed to the heightened level of the storm surge. In 1990, a federal task force began restoring lost wetlands surrounding New Orleans. Every two miles of wetland between the Crescent City and the Gulf reduces a surge by half a foot. Bush had promised "no net loss" of wetlands, a policy launched by his father's administration and bolstered by President Clinton. But he reversed his approach in 2003, unleashing the developers. The Army Corps of Engineers and the Environmental Protection Agency then announced they could no longer protect wetlands unless they were somehow related to interstate commerce.
In response to this potential crisis, four leading environmental groups conducted a joint expert study, concluding in 2004 that without wetlands protection New Orleans could be devastated by an ordinary, much less a Category 4 or 5, hurricane. "There's no way to describe how mindless a policy that is when it comes to wetlands protection," said one of the report's authors. The chairman of the White House's Council on Environmental Quality dismissed the study as "highly questionable," and boasted, "Everybody loves what we're doing."
http://scientium.com/diagon_alley/commentary/bowden_essays/one_year_later.htm