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		<mainTitle nfc="0"><title>Improvements needed in the Corps of Engineers&apos; regulatory program for protecting the nation&apos;s waters</title>/<respStmt>United States General Accounting Office.</respStmt></mainTitle>
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			<subject cat="top">Water quality management</subject>
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<pb n="1" />
Coastal Zone                                                                                / 2
Information
  Center

                                                       U.S. DEPARTMENT OF COMMERCE
                                                       National Technical Information Service

                                                       PB-275 312

                  Improvements Needed in the Corps of

                  Engineers' Regulatory Program for

                  Protecting the Nation's Waters

                  General Accounting Office, Washington, D C

                                            VI01 OATO  CFENTEP

 0
                  23 Dec 77

 L  (  TD
   .U5

     223
     .U56
     19 77
!J-
<pb n="2" />

                                                           PB 275 312
                               MAY 1 5 1978

                      UNITED S TA TES
      % &lt;                GENERAL ACCOUNTING OFFICE

                   Pr-opLrty Of CSC Library

                      Improvements Needed In The

                      Corps Of Engineers' Regulatory

                      Program For Protecting The

                      Nation's Waters
                      The Corps of Engineers has a broad mandate
                      to protect and conserve the Nation's waters
                      by approving only those activities (i.e., dredg-
                      ing, filling, construction, etc.) that are in the
                      public interest.
                      While some elements of local discretion are
                      necessary in a program of this nature, incon-
                      sistencies and variances between the opera-
                      tions of the Corps' districts have been of such
                      magnitude as to hamper the establishment of         . .  DEPARTMENT OF COMMERCE NOAA
                      an effective nationwide program. The head-        COASTAL SERVICES CENTER
                      quarters and districts will have management       2234 SOUTH HOBSON AVENUE
                      and evaluation difficulties until the Corps       CHARLESTON   SC  29405-2413
                          --defines the geographical boundaries of
                           the program,
                          --provides for consistency by the districts
                           in interpreting and applying regulations
                           and guidelines,
                          --defines the methods to be used to
                           achieve results expected from the pro-
                           gram, and
                          --provides for periodic program evalu-
                           ation.
                      iCED-78-17 REPRODUCED BY                       DECEMBER   23, 1977
                                   NATIONAL TECHNICAL
                                   INFORMATION SERVICE
                                     U.S. DEPARTMENT OF COMMERCE
·I                                            SPRINGFIELD. VA. 22161                                               ,.
      -6  m                                                                   /
<pb n="3" />

      ° .          ... UNITED STATES GENERAL ACCOUNTING OFFICE
                          WASHINGTON, D.C. 20548

COMMUNITY AND ECONOMIC
 DEVELOPMENT DIVISION

   B-114885

   The Honorable
   The Secretary of the Army

   Dear Mr. Secretary:

        We recently completed a review of the effectiveness of
    the Corps of Engineers' regulatory activities, as related to
   permits authorized under Section 10 of the River and Harbors
   Act of 1899 and under Section 404 of the Federal Water Pollution
   and Control Act Amendments of 1972. Our review included nermit
    actions during the period of July 1, 1974, through September 30,
    1976, as well as subsequent policy changes.

         Sections 404 and 10 give the Corps a broad mandate to
   protect, enhance, and conserve the Nation's waters by aoorovina
   only those activities that are in the public interest. The
   means by which this is to be achieved have not been clearly
    identified. Failure to establish specific criteria and
   guidance has resulted in significant differences in the
   methods and emphasis given by Corps districts in carrying
   out various program operations.

        We were unable to measure the effectiveness of the
   program because the Corps had not (1) defined the qeoa-raohical
   boundaries of the regulatory program, (2) orovided for more
   consistency between districts in interpreting and apDlyinq
    regulations and guidelines, (3) defined methods to be used
    to achieve expected program results, and (4) provided for
   periodic evaluation of the program.

        We performed the review at the Corps headauarters in
   Washington, D.C. and at district offices in New York, Detroit,
   Galveston, New Orleans, and Jacksonville. We also discussed
    the program with officials from the Environjnental Protection
   Agency (EPA), the Department of Interior's Fish and Wildlife
   Service, and the Department of Commerce's Office of Fisheries
    (formerly the National Marine end Fisheries Service) and
   talked with industrial and environmental groups, and with
   various State agencies in New York, Michigan, Texas, Louisiana,
   and Florida.

                                                  CED-78-17
                                                   (08017)
<pb n="4" />

NEED TO IDENTIFY GEOGRAPHICAL
BOUNDARIES OF THOSE AREAS
SUBJECT TO REGULATORY CONTROL

     Corps regulations define, in general terms, qeographic
areas subject to regulation under its sections 10 and 404
regulatory authorities. Corps districts are resoonsible for
identifying specific geographic areas subject to regulation
in their districts, but few have done so. Instead, the
districts identify areas on a case-by-case basis upon
receiving applications and requests for jurisdictional
decisions or upon asserting jurisdiction in cases where
work was performed without a Corps Dermit.

     The lack of specifically defined geographical areas
causes problems for the Corps and other aqencies which assist
the Corps in reviewing applications and making knowledgeable,
informed decisions and also subjects the public and others to
possible innocent violations.  We found that most reoorted
violations involved individuals who performed work without
Corps permits. Because these individuals were, in most cases,
unaware that the areas where they were working required a
permit, the Corps usually approved an "after-the-fact" permit.

     For example, in the Detroit District a nrooertv owner
replaced a bulkhead to protect his residential property from
erosion after the original bulkhead had been damaged by high
waters. Apparently the applicant did not know that the area
was subject to Corps regulation. In exolaininq the circum-
stances, the applicant noted that the replacement was made
to a structure that had been in place for over 50 years.
After lengthy permit processing, involving 13 months from
the time the violation was reported, the property owner was
issued a permit.

     A Jacksonville District case illustrates how Corps
personnel and other State and Federal agencies resoonsible
for evaluating oermits made erroneous decisions because of
lack of clear designation of areas subject to requlation.  A
Corps inspector reported a violation involving unauthorized
placement of fill in an area near the Santa Fe River.
Subsequent evaluations by other concerned State and Federal
Agencies confirmed the Corns inspector's contention that the
fill site appeared to meet veaetative descriotions of a wetland
area and appeared to be a periodically flooded area, therefore
requiring a Corps permit. The property owner disagreed and
refused to apply for a permit. The district submitted the case
to the U.S. Attorney and requested maximum fines or penalties.

     Subsequently, another Corps inspector visited the area
during a period of flooding and found that it was not affected

                              2
<pb n="5" />

by high waters. The property owner had been correct--his
activity was not subject to Corps permit requirements. The
district withdrew its request for legal action.

     Corps headquarters officials are aware of the lack of
specifically defined geographical areas to be regulated.
We recognize that defining the areas has been complicated by
 the 1975 court decision expanding Corps permit jurisdiction
to "all waters of the United States." However, until the
Corps requires districts to specifically define regulatory
boundaries, the Corps inspectors and reviewing agencies will
have difficulty making knowledgeable, informed decisions
and innocent violations of the regulatory program will
iPcontinue.  We believe that the Corps' headquarters office
needs to take a more aggressive posture in ensuring that
regulatory bogndaries are defined and in oroviding uniform
guidance to its districts.

GUIDANCE FOR EVALUATING PERMIT
APPLICATIONS CAN BE IMPROVED

      In reviewing a permit application, the district regula-
 tory branch determines the type permit required and

     --if a section 10 permit is required, applies regula-
       tions developed by the Corps;

     --if a section 404 permit is required, applies the same
       Corps regulations, as well as guidelines developed by
       the Environmental Protection Agency (EPA).

     CorDs regulations and EPA guidelines provide for many
different types of considerations to be made in evaluating
permit applications. In implementing the regulatory program,
districts differed in their interpretation and aoplication
of certain of these considerations. Because of these
differences, applicants submitting similar permit proposals
are subjected to different degrees of regulation and different
decisions, and evaluation of the overall regulatory program
 is difficult.

     We believe that the Coros headquarters should provide
additional guidance to the districts in the following areas.

Better guidance needed for reviewing
permit applications in wetlands

     Corps regulations and EPA guidelines both discourage
activities having detrimental effects on important wetlands.
Corps regulations provide that no permits are to be issued
in important wetland areas unless the public interest requires

                              3
<pb n="6" />

otherwise or upnless the benefits of the proposal outweigh
the damages. EPA guidelines provide that discharge of dredge
material in wetlands is not to be permitted unless there
are no less damaging alternative sites or unless other
alternatives are not practicable. Discharge of fill material
in wetlands is not permitted unless the applicant clearly
demonstrates the proposed activity is wetland dependent pr
that other alternatives are not practicable. For both dredge
and fill material to be discharged in wetlands, there must
be no unacceptable adverse impact on aquatic resources.

     Although the five districts considered wetlands Protection
as an objective of the section 404 program, different methods
were employed by the districts to achieve that objective.
For example, the method used by the New Orleans District
was to review alternatives to ensure that applicants used
the most feasible and least damaging dredging methods and
disposal locations. In instances where there appeared to
be no less damaging alternatives, however, the district
generally approved the activity proposed.  There were no
denials of any wetland applications in this district during
our review period. In the Jacksonville District, however,
officials advised us that the district followed a policy of
allowing either no fill in wetlands or very minimal fill.
Minimal fills which were authorized, involved only wetland
areas defined as nonproductive or of very little benefit.
Approximately 42 percent of the district's denials involved
wetland applications.

     Differences in the applications of wetland protection
measures caused unequal treatment of applicants desiring
to perform work in wetland areas. For example, in commenting
on several proposed oil and gas production activities in
wetlands, the New Orleans District concluded that it was
not feasible to lessen environmental damage to wetlands by
requiring applicants to drill and explore multiple locations
from a single site (directional drilling).  Thus, the district
approved dredging canals to each drilling location. In one
case in which the district approved a permit to construct a
barge canal in wetlands for the purpose of drilling an
exploratory oil well, the activity involved dredging
approximately 27,000 cubic yards of material. Subsequently,
additional wells were drilled involving seven extensions to
the original canal and an additional 156,000 cubic yards
of dredge material. In approving the additional plans,
the New Orleans District accepted the applicant's content.ion
that directionally drilling the additional wells from a
single site was not feasible because it would result in
both increased costs and difficulties in controlling the
drilling direction and angle.

                               4
<pb n="7" />

     In the adjoining Galveston District, however, an
applicant proposed to construct a road through a wetland
area to a proposed drilling site within the area. District
officials recommended that the applicant revise his proposal
and directionally drill to the proposed site from an existing
roadway and drilling pad. Subsequently, the applicant agreed
to the district's recommendation, thereby incurring consider-
able expense to avoid damage to wetlands.

    We believe the above differences demonstrate the need
for criteria and guidance for evaluating permit applications
involving wetlands. This would help to avoid varying inter-
pretations by the districts and would aid management in
ensuring that uniform application of the criteria is being
achieved. Without such consistency and uniformity, applicants
desiring to perform similar work in different wetland areas
are not assuredof uniform treatment, and the wetlands do
not receive uniform protection.

Guidance needed for making
cumulative impacts assessments

     According to regulations, evaluation of permit applica-
tions is to include consideration of the probable impact of
each application in relation to the cumulative effect created
by other existing and anticipated structures or work in the
general area. Although requiring this consideration, neither
the regulations nor management directives specifically provide
means for identifying and evaluating cumulative effects.

     In a 1976 in-house Corps study, districts identified the
evaluation of cumulative impacts of proposed works as a major
district problem. The study showed that this was due to a
lack of methods or data to perform cumulative impact assess-
ments. Varying methods are used by districts in determining
cumulative effects.

     In an application requesting approval to construct a
recreational housing area, the Jacksonville District
considered the precedents which might be set and the
possibility of a proliferation of similar structures if
the permit was approved. These factors, interpreted as
cumulative impacts, plus the district finding that the
success of this activity did not depend on its being in
the wetlands, resulted in permit denial.

     The Galveston District, on the other hand, approved
a similar application. The district evaluators recognized
that there were impacts on the environment but concluded
that cumulative impacts could not be estimated because no
specific environmental studies had been done in the area.

                              5
<pb n="8" />

     For a similar application, the New Orleans District
found that canal dredge and fill for recreational housing
in wetlands would pose serious cumulative and environmental
effects on the ecosystem; however, it approved the applica-
tion based on economic benefits to be derived. Although
the New Orleans District identified construction of
recreational housing in wetlands as an activity causing
serious cumulative impacts, most applications were approved
without noting whether cumulative impacts were considered.
We noted also, that this district is in the process of
issuing a general permit 1/ for recreational housing.

     The Galveston District noted, in response to an
in-house Corps questionnaire, that dredging sand and shell
for industrial uses caused serious cumulative impact. Of
the 10 sand and shell dredging applications processed in
the Galveston District during our review period, however,
six were approved, two were withdrawn by the aoolicants,
and two were denied because of the adverse impact on fish
and wildlife.

     In the two cases denied, the district reported that the
cumulative impacts were unknown. In one of the cases
approved, on the other hand, the Galveston District reported
that no adverse cumulative impacts were anticipated; however,
according to the district's permit branch, the district has
no means for assessing cumulative impacts.

     Although the five districts recognized that certain
types of activities cause serious cumulative impacts,
applications for these activities are usually approved.
The districts either do not determine cumulative imoacts
required by regulation or they use different criteria to
determine them. We believe that additional guidance from
Corps headquarters on how to make cumulative impact assess-
ments would prove to be a valuable tool for each district
to use in protecting the waters in its jurisdiction.

Better guidance needed for use
of general and blanket permits

     The Corps has adopted special procedures (general
permits) and certain districts have adopted other procedures
(blanket permits) to reduce workloads and make the regulatory
program more administratively manageable. These procedures
eliminate the need for individual approval of all permit
applications. The qeneral permit is used in four of the five

1/See p. 7 for description of general permits.

                              6
<pb n="9" />

districts we reviewed, the blanket permit in three of the
five. We believe that the Corps can put the qeneral permit
to more widespread use; however, the Cori-s needs to
reexamine the use of the blanket permit to determine
its effectiveness in protecting the public interest.

     The general permit

     Under this procedure a district issues a single Permit,
after public review and comment, to authorize many similar
activities which individually and cumulatively are determined
to have only minimal environmental impacts. Examples of
how districts use general permits are presented below.

     The New York District issued a general pe rmit for
submarine and aerial cables. As a result, applicants
proposing to undertake this type of work notify the district
engineer of their plans and proceed with the work. In the
Jacksonville District, on the other hand, a utility company
submitted 100 applications for aerial power cables which
were already in place. Since the Jacksonville District
has no general permit for power cables, the district will
have to issue public notices and evaluate and consider public
comments on each of these applications.

     Jacksonville District issued a general permit for private
piers in October 1975. District officials estimated that
400 piers were constructed under the general permit through
September 30, 1976, without evaluation and processing. The
New Orleans District, on the other hand, does not have a
general permit for piers and has individually processed
several hundred applications for private piers even though
none of these applications was denied.

     In all the cases above, the work was considered minor
by the district involved. The general permits resulted in
less time and paperwork for the applicants and reviewinq
agencies and demonstrated the effectiveness with which
district operations can be carried out. We believe the
Corps should pursue the possibilities of expanding the role
of the general permit in all districts to ensure uniform
ti'eatment of applicants and more economy and efficiency of
operations.

     The blanket permit

     Specific authority for issuing blanket permits is not
provided for in Corps regulations. According to an official
of one district, authority was "orobably" Provided by Corps
headquarters in the late 1940s. Headquarters officials stated
that they were aware of the use of blanket permits but that

                              7
<pb n="10" />

there was no specific authorization sanctioning this
method of issuing permits.

     Under the blanket permit concept, an applicant applies
for a permit to conduct a variety of oil and gas exploration
and production activities within a large geographical area.
After public notice issuance and consideration of comments
and potential impacts, the district issues a blanket permit.
The permit does not identify the specific location, nature,
or type of activity which is to be undertaken.

     individual districts determine the length of time for
which blanket permits are issued. The New Orleans District
issued blanket permits for 10-year periods, Galveston District
3 years, and Jacksonville District approximately 9-year
periods.

     New Orleans District officials, apparently deciding it
was necessary to review individual actions under section 404,
have recently changed their blanket permit policy to exclude
section 404 actions from the blanket permit authority. The
Jacksonville District also does not use blanket permits for
authorizing section 404 activities. The Galveston District
policies, on the other hand, do not exclude section 404
activities from the blanket permit, and officials at this
district stated that no changes to this policy were currently
being considered.

     We believe that the continued use of blanket permits is
questionable because (1) the permit does not identify the
specific location, nature, or type. of activity to be under-
taken and (2) there appears to be no authority for the use
of this type of permit. In a Decemfber 2, 1977, letter we asked
the Chief of Engineers to identify any authority for blanket
permit use, and to inform us of any actions which are taken
regarding these permits.

Guidance needed to ensure
consistent treatment of violators

     most violations reported by the five districts we visited
involved failure of individuals to obtain required permits.
The ultimate disposition of these issues usually resulted in
"1after-the-fact" permits. During the 27-month review period,
fou6r Of the districts r'esolved from 87 to 99 percent of the
violations in this manner. As shown on the next page, however,
the Jacksonville District resolved only 55 percent by issuing
permits.

                              8
<pb n="11" />

                                  Reported Violations
                          July 1, 1974 to September 30, 1976

  Resolution of                    New
proved violations               Orleans  Galveston    New York  Detroit   Jacksonville

Number of "after-the-
  fact" permits issued
  to violators                     172       74           117         440           115

Number of fines                       8      15              0         14             37

Number of restorations
  required (note a)                  2        3            15          63            96

Percent resolved by
  fines or restoration               6       23            11          15            63

Percent resolved by issuing
  an "after-the-fact" permit
  with or without fines             99       96            89          87            55

a/Restorations involve a requirement that the violato.r
  return the impacted area to a condition existing before
  the unauthorized activity took place.
<pb n="12" />

     Districts are inconsistent in their treatment of
violators. These inconsistencies exist within as well as
among districts. The following examples illustrate some of
the differences found.

     --In the New Orleans District, two individuals were aware
       of the need for a permit but did not obtain one for the
       dredqing operations they performed. One individual was
       fined ($1000) and one was not.

     --In the Galveston District, a violator was required to
       remove, fill, and restore the area along a 120-foot
       drainage canal. In the New Orleans District, another
       violator was not required to remove fill and restore
       the area along a 1.4 mile drainage canal. (Both
       violators were issued after-the-fact permits.)

     --In the Detroit District, about 200 violation cases
       were closed without permit fines or restoration. This
       was due to (1) the cases being about two years old,
       (2) the possibility that the violations may have been
       corrected, and (3) the inspectors reports being
       inadequate.

     We also found that Corps guidance does not specify
whether program emphasis should be placed on permit
processing, monitoring and enforcing, or whether each
function should be given equal emphasis. Currently, the
districts differ considerably in their interpretation of
the importance of these functions. For example:

     --Galveston District has no one assigned to the
       monitoring function, whereas the other four districts
       have over 20 percent of their staffs dedicated to this
       function; and

     --Detroit District devotes about 50 percent of its
       staff to processing and evaluating permits, whereas
       the other four districts devote from 20-34 percent to
       this function. Two of these four districts had about
       the same workload and staffing as Detroit.

     We believe that the Corps needs (1) to improve its
guidance for handling violations so that permit violators
can be treated more uniformly and equitably and (2) to
identify the emphasis to be placed on program functions.

                              10
<pb n="13" />

Guidance needed to provide better
information in public notices

     The Corps uses public Participation as a key element
in evaluating the interest of the public and as a basis
for making decisions on activities under the regulatory
program. However, we found cases where Public notices
of regulatory activities did not provide'enough information
for the public to make informed comments. We noted that,
in' many of the 92 public notices we reviewed, pertinent
information such as the type of area to be impacted was
not given.

     In the New York District, a public notice described
a project as involving 24,000 cubic yards of fill in "an
irregularly shaped area with a offshore face." The Corps
used this description in the Public notice and the Public
was not informed that wetlands were involved. The only
comment received from the public stated that the public
notice did not provide adequate information upon which
to form an independent judgement.

     In the New Orleans District, a public notice described
a proposal as maintenance of a 23,400-foot levee system,
constructed with 219,000 cubic yards of dredqed material.
The notice stated that the levee system was to he used to
protect land for aqricultural Purposes. Although aware that
the entire 600 acre area involved wetlands which would be
destroyed, the district did not provide this information in
its public notice. In contrast, Jacksonville District
public notices qenerally describe the nature and amount
of wetlands involved in describing proposed activities.

     We believe that the Corps should institute measures
to ensure that the districts are providing the public with
information to evaluate proposed activities.

IMPROVEMENTS NEEDED IN IDENTIFYING
METHODS OF ACHIEVING EXPECTED PROGRAM RESULTS

     The methods to be used in achieving expected regulatory
program results need to be spelled out more soecifically.
Expected results of the Corps' program are protection,
enhancement, and conservation of the Nation's waters.
However, the details of how these expected results are
to be attained have not been identified so that they could
be applied uniformly nationwide. Such uniformity is hampered
due to

     --changes in laws and varying interpretations of those
       laws,

                             11
<pb n="14" />

     --ambiguity in EPA guidelines and Corps regulations in
      describing how the program is to be carried out, and

     --the Corps' decentralized management of the program.

    We recognize that, due to the above factors and
conflicting public concerns, the Corps' regulatory program
has become more complex to implement and administer.

     The original program under Section 10 of the Rivers
and Harbors Act of 1899 was to ensure, by issuing permits,
that navigable waterways were not obstructed. The sole
criterion for permit issuance was that the proposed work
not impede or obstruct navigation.

     During recent years, supplementary legislation and
judicial interpretations have required that the Corps
consider various "public interest" factors in evaluating
proposed activities, and section 404 of the 1972 Federal
Water Pollution Control Act Amendments added another permit
for regulating the discharge of dredge or fill material.

     Because of this legislation and court decisions, the
Corps issued regulations in 1973 recognizing for the first
time the Corps' regulatory responsibilities under the 1972
amendments. The Corps issued revised regulations in July
1975 after litigation on the 1972 act resulted in an
expansion of the Corps' jurisdiction under section 404
of the regulatory program.

     The Corps' 1975 regulations and subsequent regulations
issued in July 1977 were unclear in indicating how some
regulated activities were to be evaluated. For example,
there was no indication as to the weight to be assigned
in arriving at a decision when navigation and water guality
interests conflict. Also when energy development needs
conflict with wetlands protection goals, there is no
clear indication of how the conflict is to be resolved.

     Corps management recognizes that differences exist
in the specific methods applied and decisions rendered by
individual districts. Different districts' methods are
actually viewed, according to a Corps headquarters official,
as a good way to regulate because individual districts are
"fine-tuned" to their respective areas and interests.
Although different decisions are rendered by two districts
evaluating similar proposals, both decisions, according
to this official, meet the Corps' concept of public interest.
Corps headquarters, according to this same official, does
not view these decisions as problems but as indicators of
district responsiveness to area needs.

                             12
<pb n="15" />

               We recognize that local interest considerations are
          very important; however, these interests may not always
          be synonymous with the overall interests of the nation.
           In fact, Corps regulations and EPA guidelines have not clearly
           identified how the local and national interests are to be
          protected nor the methods to be used to reconcile conflicting
           interests.

                In the absence of clear er definitions, the Corps may
*             be performing functions that either need no regulation or
           could be more appropriately handled by the local or state
          authorities. Also individual districts could be approving
          activities which are not in the national interest.

               We believe that the Corps needs to provide additional
          guidance to the districts as to methods to be used to achieve
          expected program results. If the Corps is unable to reconcile
          the conflicting interests involved or is unable to design
           a methodology for balancing the local and national interests,,
           then it should request additional guidance from the Congress.
          In any event, interpretation of program requirements should
          not be left to ind8ividual Corp s districts.

          PERIODIC EVALUATION CAN IMPROVE
          MANAGEMENT OF THE PROGRAM

                Program evaluation is a fundamental part of effective
          program administration and we believe that responsibility
           for evaluations should rest with agency management. However,
          we found that the Corps has not performed an evaluation of
          the regulatory program.

               The current program relies on individual district
          approaches and considerations, and program diversity is
          accepted. This makes program evaluation difficult especially
           in some of the areas previously discussed, such as wetlands
           protection and cumulative impact assessment. The Corps
          has not yet established a basis for periodically evaluating
          the' overall level of program effectiveness.

               Since evaluation is an integral part of program
          administration, we believe the Corps should establish a
          requirement for periodic program evaluation. The Corps
          needs these evaluations to assess the program and to provide
          data for better management direction and control.

          CONCLUSIONS

               The Corps' regulatory program is difficult to manage
          and evaluate because of its ambiguity, size, diversity, and

                                        13
<pb n="16" />

the variety of approaches the Corps districts use in carrying
it out.

    While some elements of local discretion are necessary
in a program of this nature, the inconsistencies and variances
between the operations of the five districts we reviewed were
of such magnitude that they hamper the establishment of an
effective nationwide program. The headquarters and districts
will have management and evaluation difficulties until the
Corps accomplishes the following:

     --De fines the geographical boundaries of the regulatory
       program'. Until this is accomplished, it will be
       difficult for Corps inspectors and reviewing aqencies
       to make knowledgeable, informed decisions, and innocent
       violations of the regulatory program, will continue.

     --Provides for additional guidance to the districts to
       aid them in (1) achieving expected program results
       and (2) interpreting and applying regulations and
       guidelines, specifically concerning wetlands,
       cumulative impact assessments, violations, public
       notices, and general and blanket permits. This can
       minimize differences in treatment of applicants and
       provide a better basis for overall evaluation of the
       program.

     Accomplishment of the above will provide more consistent
management of the program; however, there also needs to be
a mechanism set up for overall and district r roqram evaluation.

RECOMMENDATIONS

     We recommend that the Secretary of the Army provide for
improved management and control of the Corps' regulatory
program by directing the Corps headquarters office to:

     --Take a more agressive posture in ensuring that
       regulatory boundaries are defined and in providing
       additional guidance for districts to use in defining
       geographic boundaries.

     --Provide additional guidance to the districts for
       evaluating permit applications that involve wetlands,
       making cumulative impacts assessments, using general
       and blanket permits, handling violations, and providing
       information to the public on proposed projects.

     --Provide additional guidance to the districts as to the
       methods to be used to achieve expected program results.

                             14
<pb n="17" />

     --Establish a requirement for and specific guidance
       to conduct periodic program evaluations.

AGENCY COMMENTS

     We did not request formal comments from the Secretary
of the Army or the Corps of Engineers but did obtain oral
comments from the Corps. The Corps officials generally agreed
with the facts of the report. They stated that there are
differences in district operations; however, these differences
do not necessarily constitute problems but are indicative of
district responsiveness to area needs.

PENDING LEGISLATION CONCERNING
THE REGULATORY PROGRAM

     The Conference Committee of the House Committee on Public
Works and Transportation and the Senate Committee on Environment
and Public Works recently agreed on a bill (H.R. 3199 - the
the Clean Water Act of 1977) to amend the Federal Water
Pollution Control Act. The bill passed Congress on December 15, 1977,
but had not been signed by the President as of December 19, 1977.
     The bill allows the Secretary of the Army to transfer
permitting authority to the States for controlling discharge
of dredged or fill material into navigable waters within the
State 1/ providing the Governor so desires and the State plan
is approved by the Environmental Protection Agency (in consulta-
tion with the Secretary of the Army and the Director, Fish and
Wildlife Service).

     We believe our recommendations will be applicable under
such legislation because problems identified in this report
will continue to exist. Furthermore, differences in program
operations may be even more pronounced because of the diversity
of State management.

     As you know, Section 236 of the Legislative Reorganization
Act of 1970 requires the head of a Federal agency to submit
a written statement on actions taken on our recommendations to

1/11 **  (other than those waters which are presently used,
  or are susceptible to use in their natural condition or by
  reasonable improvement as a means to transport interstate
  or foreign commerce shoreward to their ordinary high water
 mark, including all waters which are subject to the ebb
 and flow of the tide shoreward to their mean high water
 mark, or mean higher high water mark on the west coast,
  including wetlands adjacent thereto)***1

                             15
<pb n="18" />

the House Committee on Government Operations and the Senate
Committee on Governmental Affairs not later than 60 days
after the date of the report and to the House and Senate
Committees on Appropriations with the agencies' first request
for appropriations made more than 60 days after the date of
the report.

    We are sending copies of this report to the four committees
to set in motion the requirements of section 236. Copies are
also being sent to cognizant legislative committees; the Acting
Director, Office of Management and Budget; the heads of
Departments or Agencies directly involved and the Governors
of the fifty States.

                              Sincerely yours,

                              Henry Eschwege
                              Director

Enclosures - 40

                             16
                                                 GPO 92-426
<pb n="19" />

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