South Florida Ecosystem Restoration: A Land Acquisition Plan Is Needed to
Supplement the Strategic Plan Being Developed (Testimony, 04/05/2000,
GAO/T-RCED-00-137).

Pursuant to a congressional request, GAO discussed the Department of the
Interior's actions in response to previous GAO recommendations to
improve the management of the South Florida Ecosystem Restoration
Initiative, focusing on what: (1) the South Florida Ecosystem
Restoration Task Force has done to identify and acquire lands needed to
accomplish the goals of the restoration initiative; and (2) Interior did
to help ensure that it maximized the acreage purchased with $200 million
set aside in the 1996 Farm Bill for the initiative.

GAO noted that: (1) the Task Force is developing a strategic plan, which
is scheduled to be completed in July 2000; (2) until the Task Force
completes the plan, however, GAO cannot determine whether it contains
all the components of a strategic plan that GAO recommended; (3) in
addition, although a conflict resolution process is not yet in place,
Interior has developed recommendations that it will propose to the Task
Force in April 2000 for resolving "the most difficult conflicts" among
the federal, state, tribal, and local entities participating in the
initiative; (4) while critical to the initiative's success, GAO found
that the Task Force has not yet developed a land acquisition plan that
identifies all of the lands needed to accomplish the goals of the
restoration initiative; (5) to maximize the acreage acquired with the
$200 million in Farm Bill funds, Interior developed a cost-sharing
policy that required the state of Florida to match the federal funds
dollar for dollar; (6) GAO found that Interior did not consistently
require the state to match the funds; and (7) had it done so, an
additional $77 million would have been available to acquire lands for
the restoration initiative.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  T-RCED-00-137
     TITLE:  South Florida Ecosystem Restoration: A Land Acquisition
	     Plan Is Needed to Supplement the Strategic Plan Being
	     Developed
      DATE:  04/05/2000
   SUBJECT:  Strategic planning
	     Dispute settlement
	     Environmental policies
	     Environmental monitoring
	     Procurement planning
	     Federal/state relations
	     Cost sharing (finance)
	     Water resources conservation
	     Land management
	     Real property acquisition
IDENTIFIER:  South Florida Ecosystem Restoration Initiative
	     Everglades (FL)
	     Florida

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Testimony

Before the Subcommittee on Interior and Related Agencies, Committee on
Appropriations, House of Representatives

For Release on Delivery
Expected at
10:00 a.m. E.D.T
Wednesday,
April 5, 2000

SOUTH FLORIDA ECOSYSTEM RESTORATION

A Land Acquisition Plan Is Needed to Supplement the Strategic Plan Being
Developed

Statement of Jim Wells, Director,
Energy, Resources, and Science Issues
Resources, Community, and Economic
Development Division

GAO/T-RCED-00-137

Mr. Chairman and Members of the Subcommittee:

The South Florida Ecosystem Restoration Initiative is one of this country's
most significant environmental endeavors. Restoring the ecosystem, which
covers 18,000 square miles, or about 11.5 million acres, will take at least
20 years to complete. The South Florida Ecosystem Restoration Task Force,
first established in 1993 by a federal interagency agreement and later
expanded to include state, local, and tribal representatives, has been given
the responsibility to coordinate and facilitate this complex, long-term
effort. We are here today to discuss the Department of the Interior's
actions in response to previous GAO recommendations to improve management of
the initiative. We will also discuss our report, being released today, on
(1) what the Task Force has done to identify and acquire lands needed to
accomplish the goals of the restoration initiative and (2) what the
Department of the Interior did to help ensure that it maximized the acreage
purchased with $200 million set aside in the 1996 Farm Bill for the
initiative. Today's report was requested by you and the Chairpersons of the
Senate Committee on Energy and Natural Resources; the Subcommittee on
National Parks, Historic Preservation, and Recreation, Senate Committee on
Energy and Natural Resources; and the Subcommittee on Interior and Related
Agencies, Senate Committee on Appropriations.

In summary, Mr. Chairman, last April, we made two recommendations to improve
the management of the initiative. First, we recommended that the Secretary
of the Interior, as the Chairperson of the Task Force, in conjunction with
the other members of the Task Force, develop a strategic plan that would (1)
outline how the restoration of the ecosystem would occur, (2) identify the
financial resources needed to achieve the goals of the restoration, (3)
assign accountability for accomplishing actions identified in the plan, and
(4) link the initiative's strategic goals established by the Task Force to
outcome-oriented annual goals. Second, we recommended that the Task Force
work with organizations and entities participating in the restoration
initiative to develop and agree on a decision-making process to resolve
conflicts that will inevitably occur as the restoration progresses. We can
report to you today that the Task Force is developing a strategic plan,
which is scheduled to be completed in July 2000. Until the Task Force
completes the plan, however, we cannot determine whether it contains all the
components of a strategic plan that we recommended. In addition, although a
conflict resolution process is not yet in place, the Department of the
Interior has developed recommendations that it will propose to the Task
Force in April 2000 for resolving "the most difficult conflicts" among the
federal, state, tribal, and local entities participating in the initiative.

The report we are releasing today discusses land acquisition, a process
integral to accomplishing each of the initiative's three goals-"getting the
water right," restoring and enhancing the natural environment, and
transforming the built environment. While critical to the initiative's
success, we found that the Task Force has not yet developed a land
acquisition plan that identifies all of the lands needed to accomplish the
goals of the restoration initiative. Our report recommends that the Task
Force develop such a plan. The report also highlights the importance of
acquiring as much land as possible, and quickly, because undeveloped land in
South Florida is becoming increasingly scarce and costly. To maximize the
acreage acquired with the $200 million in Farm Bill funds, the Department of
the Interior developed a cost-sharing policy that required the state of
Florida to match the federal funds dollar for dollar. We found that the
Department did not consistently require the state to match the funds. Had it
done so, an additional $77 million would have been available to acquire
lands for the restoration initiative.

Background

The South Florida ecosystem extends from the Chain of Lakes south of Orlando
to the reefs southwest of the Florida Keys. This vast region, which is home
to more than 6 million Americans, a huge tourism industry, and a large
agricultural economy, also encompasses one of the world's unique
environmental resources-the Everglades. For centuries, the Everglades
provided habitat for many species of wading birds and other native wildlife,
including the American alligator, which depended on the water flow patterns
that existed before human intervention. However, the engineering changes
from the Central and Southern Florida Project, coupled with agricultural and
industrial activities and urbanization, have reduced the Everglades to about
half its original size and have had a detrimental effect on wildlife
habitats and water quality. The loss of habitats has caused sharp declines
in native plant and animal populations, placing many native species at risk.

In 1993, the administration made the restoration of the Everglades and the
South Florida ecosystem one of its highest environmental priorities. Through
an interagency agreement, federal agencies established the South Florida
Ecosystem Restoration Task Force to facilitate the development of consistent
policies, strategies, priorities, and plans for addressing concerns about
the ecosystem. The Water Resources Development Act of 1996 formalized the
Task Force; expanded its membership to include state, local, and tribal
representatives; and designated the Secretary of the Interior as the group's
chair.

To accomplish the restoration initiative, the Task Force established the
following three goals:

   * Getting the water right, which means restoring more natural hydrologic
     functions of the ecosystem while providing adequate water supplies and
     flood control. The goal is to deliver the right amount of water, of the
     right quality, to the right places at the right times.

   * Restoring and enhancing the natural system, which means restoring lost
     and altered habitats and changing current land uses, as well as halting
     the spread of invasive species and recovering threatened and endangered
     species.

   * Transforming the built environment, which means rebuilding and
     revitalizing urban cores to curtail outward sprawl.

The Task Force Is Developing a Strategic Plan and a Conflict-Resolution
Process

The Task Force is developing a strategic plan for the restoration initiative
as we recommended in our April 1999 report. According to the progress report
recently submitted by the Department of the Interior to this Committee and
the Senate Appropriations Committee, the strategic plan will (1) outline how
the restoration will occur, over 5-, 10-, 25-, and 50-year time frames; (2)
identify the financial resources needed to achieve full restoration; (3)
identify the agencies and entities responsible and accountable for
accomplishing actions; and (4) link the restoration projects to
outcome-oriented goals. The Task Force also plans to list the federal and
nonfederal projects that are necessary for restoration and to develop
outcome-oriented objectives and performance indicators for two of the
initiative's three goals. According to the Task Force, the third
goal-transforming the built environment-is being rewritten to make the goal
practical and achievable. Also, according to the Task Force, benchmarks and
measurable objectives will be developed for the revised third goal. Because
the progress report does not contain details of the plan and the plan is not
yet complete, we cannot determine whether the plan will adequately address
our recommendation or whether it will be sufficient to successfully guide
and manage the initiative.

The Department has also developed recommendations that it will propose to
the Task Force this month for resolving the conflicts that will inevitably
occur among the participating entities as the initiative progresses. The
proposed recommendations call for

   * the agencies to examine all existing contractual agreements to ensure
     that all possible and appropriate dispute resolution methods are
     utilized and time frames are incorporated to resolve matters in dispute
     and

   * the Task Force to adopt procedures that will further facilitate the
     resolution of interagency conflicts.

The Department also reports that it is seeking advice on conflict resolution
from organizations with expertise in this area and plans to make
recommendations to the Task Force on how to use outside expertise in the
resolution of intergovernmental conflicts.

We are encouraged that the Department recognizes that resolving conflicts
among agencies involved in the restoration initiative is critical to its
success. Although the Department is recommending that the Task Force adopt
procedures for resolving the most difficult conflicts, the proposed
recommendations did not provide details on what are regarded as "the most
difficult conflicts" or what those procedures will entail. Until the
detailed conflict resolution procedures are developed and adopted, we cannot
determine whether the procedures would establish a process, when a conflict
would be elevated to the Task Force, whether there would be restrictions on
the types of conflicts elevated, or whether the Task Force would use outside
expertise in resolving conflicts.

The Task Force Has Not Developed a Land Acquisition Plan That Identifies All
Lands Needed for Restoration

The South Florida Ecosystem Restoration Task Force cannot acquire lands on
its own. Instead, it must accomplish its objectives through the
participating federal and state agencies. This puts a premium on having a
systematic acquisition plan and effective communication and coordination
among the members of the Task Force. Furthermore, the South Florida
ecosystem covers a vast area (about 11.5 million acres) and much of the
undeveloped land is under development pressure, increasing the importance of
prioritizing the acquisitions that are possible. However, the Task Force has
not yet developed a land acquisition plan that identifies all of the lands
needed to accomplish the goals of the restoration initiative and would allow
it to effectively communicate the initiative's needs and priorities to the
agencies responsible for acquiring lands.

Although it has not yet done so, the Task Force should be able to develop a
framework for a land acquisition plan by using land acquisition information
and assessments already developed by the federal and state agencies
participating in the initiative. These agencies have already identified some
lands in the ecosystem that they plan to acquire to accomplish their
specific missions. Although the Task Force has not yet assessed those lands,
it could do so to determine how and to what extent they could be used to
further the goals of the restoration. In addition, the federal and state
agencies have also completed studies and assessments that identify areas of
potential acquisition. The Task Force could use these studies and
assessments to independently identify and prioritize additional lands needed
to achieve the restoration's goals. The efforts of the federal and state
agencies to identify lands for acquisition could serve as a starting point
for developing a plan, and the Task Force should build on these efforts.

Mr. Chairman, because land acquisition is critical to accomplishing each of
the initiative's three goals, today's report recommends that the Secretary,
as Chairperson of the Task Force, in conjunction with the other members of
the Task Force, develop a land acquisition plan. This plan would supplement
the strategic plan that we recommended in our 1999 report. It would also
enable the Task Force to help steer future acquisitions and provide the
Congress and the state with reasonable estimates of both the acreage needed
and the costs of acquiring these lands.

As is our policy, we asked the Department and the state of Florida to
comment on our draft report. The Department also saw the benefit of and
concurred with our recommendation that the Task Force develop an overall
land acquisition plan and stated that it will recommend that the member
agencies undertake an effort to integrate existing land acquisition programs
into a single overall plan.

The state disagreed with our recommendation that the Task Force create a
land acquisition plan because it believes our report implies that the Task
Force should plan to acquire and manage all the lands needed for the
restoration initiative. We did not envision that the Task Force would be the
entity to acquire and manage all lands for the initiative or that the
process of acquiring lands would be federally driven. We believe-and clearly
state in our report-that the federal and state agencies participating in the
initiative are responsible for the acquisition and management of lands and
that these agencies have developed a number of plans and studies that are a
starting point for the Task Force to use in developing a land acquisition
plan.

Interior Did Not Consistently Apply Its Cost-Sharing Policy to Maximize Its
Land Acquisitions

The 1996 Farm Bill provided $200 million to the Secretary of the Interior
for restoration activities in the South Florida ecosystem. Although not
required to do so by the Farm Bill, Interior developed a cost-sharing policy
as a means of leveraging the funds. Interior entered into a framework
agreement with the U.S. Department of the Army (Corps), the Florida
Department of Environmental Protection, and the South Florida Water
Management District that required the state of Florida to match the federal
funds dollar for dollar. Under this policy, the Secretary of the Interior
retained the authority to waive the matching requirement. According to
Interior officials responsible for overseeing these funds, the land
acquisition needs of the ecosystem exceeded the $200 million provided by the
Farm Bill. The matching requirement provided for doubling the funding
available to acquire lands and thus maximizing the acreage that could be
acquired.

With the Farm Bill funds, Interior approved four grants to buy land in four
areas in the South Florida ecosystem. These areas are referred to as the
East Coast Buffer, the Carroll property, the Southern Golden Gate Estates,
and the Talisman lands. Interior implemented its cost-sharing policy,
requiring the state to provide a dollar-for-dollar match for one of the four
grants (the Carroll property). For the remaining three grants, Interior
either waived the cost-sharing requirement (Talisman) or accepted as a match
lands that the state had already purchased (Southern Golden Gate Estates) or
that the state had begun purchasing (East Coast Buffer). If Interior had
required the state to match the Farm Bill funds dollar for dollar for each
of the properties acquired with these funds, we calculate that an additional
$77 million could have been available to acquire land in the ecosystem.
According to Interior officials, the agency did not always apply its
cost-sharing policy because it wanted to give the state credit for lands
that it had already acquired or was acquiring.

Both the Department of the Interior and the state disagreed with our
characterization of the cost-sharing requirement associated with the Farm
Bill grants. They expressed the view that we are too narrow in our
discussion of the Farm Bill grants and matching funds and that we do not
acknowledge the significance of the land acquired with Farm Bill and state
funds. We recognize that the lands acquired with Farm Bill funds are
important to the restoration and do not take issue with their acquisition.
The focus of our review was to determine whether the Department accomplished
its intended purpose of maximizing the amount of land acquired with Farm
Bill funds-which the Department did not achieve. We believe that these
grants are illustrations of lost opportunities to acquire as much land as
possible. In our view, lands acquired before the grants were approved do not
maximize the acreage acquired with Farm Bill funds and, therefore, should
not be counted as a part of the state's match for the Farm Bill grants.

This concludes our statement. We will be happy to respond to any questions
from you or other Members of the Subcommittee.

Contact and Acknowledgement

For further information on this testimony, please contact Jim Wells at (202)
512-3841. Individuals making key contributions to this testimony included
Alfredo Gï¿½mez, Susan Iott, Chet Janik, and Sherry McDonald.

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