[Federal Register Volume 67, Number 100 (Thursday, May 23, 2002)]
[Notices]
[Pages 36172-36176]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-12968]


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ENVIRONMENTAL PROTECTION AGENCY

[FRL-7216-9]


Process for Designing a Watershed Initiative

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice and request for comments.

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SUMMARY: This notice solicits comments and suggestions from 
stakeholders and other interested parties on the potential design of 
EPA's new Watershed Initiative. The Agency is specifically seeking 
ideas and possible approaches to the nomination and selection 
processes. On January 25, 2002, EPA announced a proposal to include $21 
million in its fiscal year 2003 budget for the new Watershed 
Initiative. Pending appropriations for this purpose, EPA will call for 
nominations and select up to 20 watershed organizations to receive 
grants to support innovative watershed based approaches to preventing, 
reducing, and eliminating water pollution. The Initiative will also 
support local communities in their efforts to expand and improve 
existing protection measures with tools, training, and technical 
assistance, and provide for ten Federal liaison positions. The primary 
component of the Initiative will be in the form of a competitive grant 
program. In addition, throughout the upcoming months, EPA will be 
working cooperatively with the States, Tribes, local governments, and 
community groups to develop the proposed program.

DATES: Comments, identified by the document control number W-02-05 must 
be received no later than July 8, 2002.

ADDRESSES: Comments may be submitted by mail, electronically, or in 
person. Please follow the detailed instructions for each method as 
provided in section I of the SUPPLEMENTARY INFORMATION section of this 
notice.

FOR FURTHER INFORMATION CONTACT: Carol Peterson, Environmental 
Protection Agency, Office of Wetlands, Oceans, and Watersheds (4501T), 
1200 Pennsylvania Ave. NW, Washington, DC 20460. Telephone: 202-566-
1304; e-mail: [email protected].

SUPPLEMENTARY INFORMATION:

I. General Information

A. Does This Notice Apply to You?

    You may be interested in this notice if you are involved in water 
quality, aquatic habitat, and sustainable land management issues at the 
Regional, State, Tribal, local, or community level. This notice is 
intended to solicit ideas and comments from an array of organizations 
and individuals across the country who have an interest in achieving 
clean and healthy watersheds. Interested individuals and organizations 
may include farmers, private landowners, commercial businesses, 
watershed and environmental interest groups, academicians, community 
leaders, county/city planners, commissioners, engineers, recreational 
water users, and members of the general public. This list is not 
intended to be exhaustive, nor is it intended to exclude entities that 
may be ineligible for Watershed grants, but rather provides a guide for 
readers. To determine whether you, your company or organization may be 
interested in responding to this notice, you should carefully examine 
its contents. If you have questions regarding the applicability of this 
action to a particular entity, consult the person listed in the FOR 
FURTHER INFORMATION CONTACT section.

B. How Can I Get Additional Information or Copies of Support Documents?

    1. Electronically. You may obtain electronic copies of this 
document and various support documents from the EPA home page at the 
Federal Register http://www.epa.gov/fedrgstr/, or on EPA's watershed 
homepage at http://www.epa.gov/owow/watershed.
    2. In person. The complete administrative record for this action 
has been established under docket number W-02-05 and includes 
supporting

[[Page 36173]]

documentation as well as printed, paper versions of electronic 
comments. Copies of information in the record are available upon 
request. A reasonable fee may be charged for copying. The records are 
available for inspection and copying from 9 a.m. to 4 p.m., Monday 
through Friday, excluding legal holidays, at the Water Docket, EPA, 
East Tower Basement, 401 M Street, SW, Washington, DC. For access to 
docket materials, please call (202) 260-3027 to schedule an 
appointment.

C. How and To Whom Do I Submit Comments?

    EPA invites you to provide your views on those items outlined in 
Section IV, Design of the Watershed Initiative, approaches it has not 
considered, the potential impacts of the various options (including 
possible unintended consequences), and any other information that you 
would like the Agency to consider. You may submit comments by mail, in 
person, or electronically:
    1. By mail. Submit written comments on this notice to: Comment 
Clerk for the Watershed Initiative Competitive Grant program, Water 
Docket (W-02-05), Environmental Protection Agency, Ariel Rios Bldg. 
1200 Pennsylvania Ave. NW, Washington, DC 20460. The Document Control 
Office telephone number is 202-260-3027. To ensure proper 
identification of your comments, include in the subject line the docket 
control number, together with the name, date and Federal Register 
citation of this notice.
    2. In person. Deliver written comments to EPA's Water Docket 
located in Room EB-57 (East Tower Basement), 401 M Street, SW, 
Washington, DC 20460.
    3. Electronically. Submit your comments electronically to: [email protected]. Electronic comments must be submitted as an ASCII or 
WordPerfect file avoiding the use of special characters and any form of 
encryption. Comments will also be accepted on disks in WordPerfect or 
ASCII file format sent or delivered to the addresses above. All 
comments and data in electronic form must be identified by the docket 
control number W-02-05. Electronic comments on this notice may also be 
filed online at many Federal Depository Libraries. No confidential 
business information should be sent via e-mail.

II. Authority

    EPA expects to award these grants under the authority of section 
104(b)(3) of the Clean Water Act (CWA) which authorizes grants to 
conduct and promote the coordination and acceleration of research, 
investigations, experiments, training, education, demonstrations, 
surveys, and studies relating to the causes, effect, extent, 
prevention, reduction, and elimination of water pollution. EPA is also 
considering awarding grants under the authority in the Clean Water Act 
for Wet Weather Watershed Pilot Projects (33 U.S.C. 1274) or National 
Estuary Program projects (33 U.S.C. 1330).

III. Background

A. Introduction

    Americans depend on clean water to drink, manufacture their 
products, irrigate their crops, and support a healthy habitat for 
wildlife. Water resources also provide opportunities for recreation, 
such as fishing, boating and swimming. Wetlands afford protection from 
floods, filter pollutants, and are home to a wide diversity of plants 
and animals. Estuaries serve as both birthplace and nursery for many 
species of fish and shellfish. Today, a majority of watersheds have 
water quality problems such as habitat loss, nutrient enrichment, 
pathogens, toxic chemicals, and invasive species. These problems 
continue to impair watersheds nationwide and prohibit the attainment of 
State/Tribal water quality standards and other water quality goals. The 
problems are complex and vary from region to region. Governments 
working alone can not solve all of them.
    State and Federal water protection programs along with volunteer 
and private sector efforts, have been successful in reversing or 
preventing damage to the nation's waters over the past 30 years. 
Nevertheless, nearly 40 percent of the nation's waters that have been 
assessed are still not considered safe for swimming and fishing, or are 
impaired in other ways. Further, many lakes, rivers, streams, wetlands, 
and estuaries have yet to be adequately assessed. The nation remains 
far from realizing the goals of the Clean Water Act.

B. The Watershed Approach

    To address water resource problems more effectively, water resource 
managers at all levels have been adopting a more comprehensive 
approach--one that considers all threats to a watershed. A watershed 
can be large or small. It can encompass the entire Mississippi River 
basin or a small stream in western Georgia. The ``watershed approach'' 
addresses natural resource issues that cross geographic, jurisdictional 
and political boundaries. This approach recognizes needs for water 
supply, water quality, flood control, navigation, hydropower 
generation, fisheries, biodiversity, habitat preservation and 
recreation--and it recognizes that these needs often compete. It 
establishes local priorities in the context of national goals, 
coordinates public and private actions, encourages partnerships to 
affect change, and enlists the support and knowledge base of the public 
at the local level.
    Effective solutions to restoring water quality across the country 
will typically require cooperative efforts. Over the years, many 
communities around the country have joined forces to protect their 
watersheds, often using innovative and novel approaches that are geared 
toward solving the problems that make sense for their locality. In 
recent years, governments, non-profit organizations, businesses, and 
citizens have employed watershed based approaches to refocus their 
efforts to protect and restore the nation's waters. These refocused 
efforts have brought positive results and attainment of State/Tribal 
water quality standards in some areas.

C. The Watershed Initiative

    The Watershed Initiative, if approved by Congress, would build on 
the watershed approach, encouraging innovative approaches for attaining 
water quality standards and improving water resource protection and 
restoration. It would also further EPA's goal to meet the mandate of 
the Clean Water Act. The Initiative will focus on highly valued 
watershed resources such as those that support human health, wildlife 
diversity, ecosystem integrity, economic stability, recreational 
opportunity, and natural or cultural significance.
    The Administration has requested an additional $21 million in EPA's 
2003 budget to spearhead this effort. The investment will capitalize on 
lessons learned from current protection efforts and build upon proven 
successful approaches to protect valued watershed resources. The 
Initiative will have several kinds of assistance. One part would direct 
cooperative agreements and demonstration funds to up to 20 watersheds. 
The grants would range from $300,000 to $1,300,000, depending on the 
amount requested and the overall size and need of the project.
    A smaller portion of the funds could be used to respond to the 
recommendations of last year's National Watershed Forum (http://www.epa.gov/owow/forum), by supporting the development of tools, 
training, data and information, and technical assistance that can be 
provided to all watershed

[[Page 36174]]

activities across the country, including projects which are nominated 
for selection under this Initiative but are not selected. The 
Initiative will also establish ten Federal liaison positions in EPA's 
Regional Offices. These watershed liaisons will serve as a vital link 
between the Federal government and the groups funded under the 
Initiative. This liaison will work to support cooperation and 
communication among all affected stakeholders of the project.
    This notice only focuses on the competitive grant component of the 
Watershed Initiative described in section IV below.

D. Eligibility

    If EPA awards these grants under section 104(b)(3) of the Clean 
Water Act, the funds may be used to conduct and promote the 
coordination and acceleration of research, investigations, experiments, 
training, demonstrations, surveys, and studies relating to the causes, 
effect, extent, prevention, reduction, and elimination of water 
pollution. Eligible activities under Wet Weather Watershed Pilot 
Project grants include pilot projects relating to watershed management 
of wet weather discharges and storm water best management practices. If 
EPA awards Watershed Initiative grants under the authority for National 
Estuary Program grants (section 320 of the Clean Water Act), the funds 
may be used for the development and implementation of a comprehensive 
management plan that has been developed under section 320.

E. Tentative Schedule

    EPA has begun the process of devising a strategy to implement the 
Initiative. Work is underway both within EPA and with outside parties 
to solicit ideas. Over the next few months, the Agency will consult 
with Congress, Governors, States, Tribes, local governments, and 
community groups to seek their help in developing the program.
    Plans are to complete the design of the program this summer and to 
call for nominations of projects soon thereafter. The Agency wants to 
make its selections as soon as possible after the fiscal year 2003 
appropriation act is enacted. Project selections could be made as early 
as December 2002 and implementation could be underway by next summer.

IV. Design of the Watershed Initiative--the Nomination and Selection 
Process

    The Agency is interested in the public's views on several key 
aspects of the Initiative.

Who Is Eligible?

    EPA will award grants through a competitive process. Under section 
104(b)(3) of the CWA, the following entities are eligible to receive 
grants: State and Tribal water pollution control agencies, interstate 
or intertribal agencies, other public or non-profit private agencies, 
institutions, organizations, and individuals. Grants authorized under 
section 320 of the CWA (National Estuary Program Grants) may be awarded 
to State, interstate, and regional water pollution control agencies and 
entities, State coastal zone management agencies, interstate agencies, 
other public or nonprofit private agencies, institutions, 
organizations, and individuals. For-profit entities are not eligible 
for grants under either section 104(b)(3) or 320 of the CWA. There is 
no limitation on the types of entities eligible for Wet Weather 
Watershed Pilot Project grants. The Agency invites the public to 
address whether the Initiative should be limited to certain groups and 
why.

How Will a Watershed Be Selected?

    The Agency is interested in the views of interested parties on the 
selection process. One option is for the Governors or Tribal Leaders to 
nominate watershed projects to EPA. Under this option candidates 
representing a watershed that is wholly within a State's or Tribe's 
boundaries submit their proposals to the Governor or Tribal Leader of 
that State or Tribe, who in turn, would formally nominate selected 
watersheds to the EPA Administrator. This process is used by the 
Agency's National Estuary Program (NEP). Nominations for NEP funding 
can only be made by a Governor or by the EPA Administrator, on her own 
initiative. The Governor /Tribal Leader could serve as a screening step 
to the selection process and nominate only those watersheds in its 
State/Tribal land that most merit Federal funding. If the Governors or 
Tribal Leaders make the nominations, should they be restricted to a 
limited number of nominations?
    Other programs take somewhat different approaches. For instance, to 
receive funding under EPA's Brownfields Showcase Communities Program, 
nominations are solicited through a notice in the Federal Register and 
are accepted from any party but must be submitted in partnership with a 
government entity. Other government granting programs, such as the 
Large-scale Watershed Restoration Program (LWRP), and the Community-
Based Restoration Program (CBRP), do not require a State role per se. 
Nominations for these programs are submitted directly to the U.S. 
Forest Service and the National Marine Fisheries Service, respectively.

What About Regional Watersheds That Include More Than One State or 
Tribe?

    Some of the most significant management and environmental 
challenges the nation faces involve water bodies that straddle State 
and Tribal boundaries. If Governors and Tribal Leaders nominate 
watershed projects that are wholly within their jurisdiction as 
described above, should interstate or inter-tribal watershed projects 
go through a different nomination process? EPA could require that 
nominations for these trans-boundary watershed projects be screened by 
EPA's Regional Administrators or be submitted directly to the 
Administrator. In light of limited time to prepare nominations, and the 
increased difficulty of developing the proposal for multi-
jurisdictional projects, would requiring Governor or Tribal Leader 
level nomination put these larger projects at a disadvantage?

What Should Be the Criteria for Selecting a Watershed?

    EPA is requesting comment on the criteria it should use to select 
watershed projects for funding. Below is a list of criteria that are 
utilized in various other Federal programs. EPA would like comments on 
the appropriateness of each criterion to this Initiative, and which 
criteria (and/or others not on the list) should be used in the 
selection process.
    1. Value of the Resource at Risk and Extent of Impairment or 
Threat. The cornerstone of the Watershed Initiative is to foster the 
protection, preservation, and restoration of the country's water 
bodies. To what degree should successful candidates demonstrate that 
the watershed provides a high value of services to human health, 
economic stability, ecosystem integrity, recreational opportunity, 
natural or cultural significance or any other important services? For 
water bodies which are impaired, how should the nature, extent, and 
severity of the impairment be weighed? Are there other aspects of 
resource value that should be considered, and if so, what are they?
    2. Focus on Success. To what extent should selections be based on 
readiness to proceed and the likelihood of achieving positive 
environmental outcomes? EPA is considering giving preference to 
nominations that (1) demonstrate a knowledge of priority water resource 
problems, (2) have substantially completed planning for the

[[Page 36175]]

project, and (3) are ready to begin. The reasoning behind this is that 
these types of projects would have the greatest likelihood of attaining 
tangible environmental results in the near, rather than distant, 
future.
    EPA is considering establishing a requirement that nominations be 
supported by a clearly articulated set of success or progress measures 
and a description of how these measures would be tracked. The Agency is 
also considering criteria which would address the capability of 
nominees to manage the project. Should each project be required to have 
a coordinator and a developed infrastructure for carrying out the 
project? While a grant may be awarded to an individual watershed group, 
an institution, or to a consortium of groups, it seems likely that a 
project leader would be needed to oversee the plan and take fiscal and 
practical responsibility for implementing the project. For example, 
should candidates be required to submit a detailed business plan? 
Should there be a cost-share requirement to demonstrate a real 
commitment to the project? And if so, how much? Should applicants that 
commit to provide a larger share of the project's cost be given 
preference?
    Finally, one additional aspect of this category of potential 
criteria is the ability to transfer the experience gained from a 
project selected for the Initiative to other watersheds across the 
country. The goal of this criterion would be to develop and document 
restoration models that can be applied nationally. For this criterion, 
EPA would consider whether the success of the particular project could 
be repeated in other impaired or threatened watersheds.
    3. Innovation. To what extent does the project test novel or unique 
approaches, concepts, or techniques? A key objective of the Initiative 
is to foster innovative and novel approaches to achieving environmental 
results. The designated watersheds are expected to serve as models of 
the most creative, economically successful and ecologically sustainable 
approaches to restoration and protection. A wide array of progressive 
and forward-thinking actions, such as pollutant trading, third-party 
total maximum daily loads (TMDLs), National Pollutant Discharge 
Elimination System (NPDES) watershed permits under the Clean Water Act, 
enforcement programs, and demonstration projects could be advanced. The 
public is invited to comment on this criterion and how it should be 
applied in the selection process.
    4. Broad Support. The most successful watershed communities have 
attained a local commitment, established stakeholder partnerships, and 
forged effective working relationships among State and local 
authorities. EPA is seeking comment on the extent to which partnerships 
should be demonstrated by the nominees for this Initiative. Should EPA 
have nominees submit letters of support, or affidavits, attesting to 
the establishment of partnerships and collaboration efforts? And, 
should one or more of the entities have a proven track record with 
respect to implementing environmental protection and restoration 
projects?
    Another aspect to consider is what role, if any, should the 
Interagency Regional Coordination Teams play? These teams of 
representatives of Federal agencies that share common concerns about 
water quality are spread around the country to strengthen cross-agency 
communications and implementation activities. These regional teams were 
created to link the Federal government with on-the-ground water 
protection, restoration, and conservation efforts. As a result, they 
could be helpful in enhancing partnerships and leveraging resource 
possibilities.
    5. Accountability. Performance expectations and attaining 
measurable results are a fundamental part of the Initiative. The 
progress of each watershed project must be measurable by scientifically 
sound ways that can also be understood and appreciated by the general 
public. Monitoring should be designed to show progress in the short 
term. Questions arising from this criterion are: should the nominee be 
required to provide a ``Watershed Plan'' as part of the nomination 
package and if so, what should be the key elements of that plan? What 
are the most appropriate measures of success for this Initiative? How 
could EPA and other affected stakeholders monitor the progress of each 
selected project and report on the results?
    6. Integrated Application of EPA Programs. The Agency is also 
considering linking the goals of the Watershed Initiative with its 
programmatic goals and solicits comments on whether and how to apply 
such a criterion. For example, the Agency could give priority 
consideration to those watershed projects that incorporate an 
integrated approach to using regulatory and nonregulatory tools (e.g., 
water quality standards, source water protection, TMDLs, permits, 
financial incentives) to address a diversity of aquatic resources 
(e.g., rivers, streams, lakes, wetlands, riparian areas, and/or 
estuaries). A linkage could be applied to national goals as well. In 
this case, special consideration could be given to watershed projects 
with national prominence, such as the Gulf Hypoxia Action Plan or the 
Pacific Northwest Salmon Recovery Program. The Agency is specifically 
seeking comment on whether, and if so how, watersheds that include 
estuaries should be linked to the National Estuary Program.

Should the Criteria Be Weighted?

    Once the nomination materials have been submitted, EPA must 
determine how it will make its selections. EPA must decide whether any 
particular criterion should be ``checked off'' if met, or given more 
weight in the selection process than the others. For example, those 
nominations addressing the aquatic resources of greatest ecological or 
human health value could be considered first, or be scored higher by 
being assigned more ``points.'' EPA is exploring these and other 
questions regarding how much information will be needed to select the 
best projects.

Should There Be a Minimum or Maximum Size Established for These 
Targeted Watersheds?

    EPA is inclined to support a variety of watershed scales and 
geographic locations. The appropriate size and location of the 
watershed and/or project area may depend on the local circumstances, 
the level of impairment, and other factors. Funds may be awarded based 
on the scale of the project, the anticipated need, and the amount 
requested. While EPA is leaning toward not specifying the scale or 
location of the watershed, it invites additional thoughts and comments 
on this issue.

V. Request for Comments

    This Federal Register notice is meant to solicit public 
participation in an initiative designed to encourage the building of 
partnerships in an effort to protect, preserve, and restore watersheds 
across the country. The goal of the Watershed Initiative is to provide 
funding and other types of assistance to communities with a broad 
spectrum of affected interests in attaining clean and healthy 
waterways. EPA invites constructive and insightful comments on the 
subject of this notice. The Agency is especially seeking the public's 
input and suggestions on the qualifying and selection criteria and 
other topics outlined in section IV. Commentors should feel free to 
deviate from the scope of this notice and provide comments on other 
possible innovative approaches to designing the Watershed Initiative.


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    Dated: May 16, 2002.
Diane C. Regas,
Acting Assistant Administrator for Water.
[FR Doc. 02-12968 Filed 5-22-02; 8:45 am]
BILLING CODE 6560-50-P