Comprehensive Everglades Restoration Plan: Additional Water Quality
Projects May Be Needed and Could Increase Costs (Testimony, 09/20/2000,
GAO/T-RCED-00-297).

Pursuant to a congressional request, GAO discussed the Army Corps of
Engineers' Comprehensive Everglades Restoration Plan, focusing on: (1)
the role of the Corps' Plan in addressing the major water quality
concerns in Florida's ecosystem; and (2) modifications that may be
needed as the Corps implements the Plan after it has been authorized by
Congress.

GAO noted that: (1) the Corps' Comprehensive Everglades Restoration Plan
provides a conceptual framework for improving the quality, quantity,
timing, and distribution of water in the South Florida ecosystem; (2) 24
of the Plan's 66 projects are intended, among other things, to improve
the quality of water in the natural areas of the ecosystem--the
remaining projects deal more with the water's quantity, timing, and
distribution; (3) the water quality projects in the Plan are intended to
supplement the efforts of the state, which has the primary
responsibility for achieving water quality standards in Florida; (4)
under the Water Resources Development Act of 1996, the Corps is allowed
to include water quality projects in the Plan and equally share the
costs with Florida if the projects are essential to restoring the
Everglades; (5) modifications and additions to the Plan will likely be
necessary as uncertainties related to implementing the Plan's projects
are resolved and more information is gathered about the extent of the
ecosystem's water quality problems; (6) these changes could increase the
total cost of the Plan over the Corps' current estimate of $7.8 billion;
(7) there are too many uncertainties to estimate the number and costs of
the Corps projects that will ultimately be needed to address water
quality in the ecosystem; (8) the Corps has acknowledged the uncertainty
in the Plan and has included a process for incorporating project
modifications and additions in its future reports to Congress; (9) it
has not, however, included a means for reporting: (a) cumulative changes
in projects and costs for the Plan as a whole; and (b) the progress
being made in implementing the Plan; and (10) such information will be
important for Congress in authorizing future projects.

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

 REPORTNUM:  T-RCED-00-297
     TITLE:  Comprehensive Everglades Restoration Plan: Additional
	     Water Quality Projects May Be Needed and Could Increase
	     Costs
      DATE:  09/20/2000
   SUBJECT:  Environmental policies
	     Strategic planning
	     Water resources conservation
	     Water pollution control
	     Water quality
	     Natural resources
	     Federal/state relations
IDENTIFIER:  South Florida Ecosystem Restoration Initiative
	     Army Corps of Engineers Comprehensive Everglades
	     Restoration Plan
	     Central and Southern Florida Flood Control Project (FL)
	     Everglades National Park (FL)
	     South Florida Water Quality Protection Program
	     Lake Okeechobee (FL)

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GAO/T-RCED-00-297

Mr. Chairman and Members of the Subcommittee:

The South Florida Ecosystem Restoration Initiative is a complex, long-term
effort to restore the South Florida ecosystem, which includes the
Everglades. Because water is key to restoring the ecosystem, one of the
initiative's major goals is getting the water rightor improving the quality,
quantity, timing, and distribution of water in the ecosystem. The primary
means of achieving this goal is through the U.S. Army Corps of Engineers'
Comprehensive Everglades Restoration Plan (the Plan). Although achieving the
right quantity, timing, and distribution of water is important, improving
its quality is critical to sustaining and restoring the South Florida
ecosystem. The Plan represents one of the most ambitious restoration efforts
the Corps has ever undertaken; it contains 66 individual projects that are
scheduled to take more than 20 years to complete., Implementing the Plan is
currently estimated to cost $7.8 billiona cost that will be shared equally
by the federal government and the state of Florida. We are here today to
discuss our report, which is being released today, on (1) the role of the
Corps' Comprehensive Everglades Restoration Plan in addressing the major
water quality concerns in the ecosystem and (2) modifications that may be
needed as the Corps implements the Plan after it has been authorized by the
Congress.

In summary, Mr. Chairman, the Corps' Comprehensive Everglades Restoration
Plan provides a conceptual framework for improving the quality, quantity,
timing, and distribution of water in the South Florida ecosystem.
Twenty-four of the Plan's 66 projects are intended, among other things, to
improve the quality of water in the natural areas of the ecosystem; the
remaining projects deal more with the water's quantity, timing, and
distribution. The water quality projects in the Plan are intended to
supplement the efforts of the state, which has the primary responsibility
for achieving water quality standards in Florida. Under the Water Resources
Development Act of 1996, the Corps is allowed to include water quality
projects in the Plan and equally share the costs with Florida if the
projects are essential to restoring the Everglades.

Modifications and additions to the Plan will likely be necessary as
uncertainties related to implementing the Plan's projects are resolved and
more information is gathered about the extent of the ecosystem's water
quality problems. These changes could increase the total cost of the Plan
over the Corps' current estimate of $7.8 billion. Currently, there are too
many uncertainties to estimate the number and costs of the Corps projects
that will ultimately be needed to address water quality in the ecosystem.
The Corps has acknowledged the uncertainty in the Plan and has included a
process for incorporating project modifications and additions in its future
reports to the Congress. It has not, however, included a means for reporting
(1) cumulative changes in projects and costs for the Plan as a whole and (2)
the progress being made in implementing the Plan. Such information will be
important for the Congress in authorizing future projects. Our report
recommends that the Corps provide the Congress with updates that provide
this information when the Corps submits future project authorization
proposals. Both the Corps and the state of Florida concurred with our
recommendation.

Background

Following major droughts from the 1930s through the mid-1940s and hurricanes
in 1947, the Congress authorized the Corps to construct the Central and
Southern Florida Project. The projectan extensive system of 1,700 miles of
canals and levees and 16 major pump stationsprevents flooding and saltwater
intrusion into the state's aquifer while providing drainage and water to the
residents of South Florida. The project's canals now divert much of the
water that historically flowed south from Lake Okeechobee through the
Everglades to Florida Bay east and west to the ocean or to agricultural and
urban uses. Although the Corps' Central and Southern Florida Project
accomplished its objectives, it had unintended detrimental environmental
effects. Coupled with urban and agricultural development, the project has
led to significant deterioration in the South Florida ecosystem's water
quality.

Recognizing that the Central and Southern Florida Project needed to be
modified to address its negative impact on the environment of South Florida,
the Congress included provisions relating to the project in the Water
Resources Development acts of 1992 and 1996. The 1992 act provided the
Secretary of the Army, who delegated this responsibility to the Corps, with
the authority to study the original design of the project in order to
determine whether modifications were needed because of changes in the
ecosystem's physical, biological, demographic, or economic conditions. The
1996 act directed the Corps, on the basis of its initial review, to prepare
a feasibility report and a programmatic environmental impact statement to
determine what changes were needed to restore the South Florida ecosystem.
The act required that the Corps report back to the Congress by July 1999.

Because the Plan consists of a large number of projects that will be
designed and constructed over a long period of time, according to Corps
officials, it is not as detailed as typical Corps feasibility studies. For
example, it does not identify specific sites for the proposed projects. The
Corps also plans to conduct additional feasibility studies because the time
allotted under the 1996 act to complete the Plan did not allow for a
thorough investigation of all of the regional water resource problems in
South Florida. The Corps will design the projects in more detail and expects
to request the Congress to authorize a new set of projects every 2 years
until all the projects are authorized, which the Corps anticipates will take
until 2014.

The Plan will be carried out primarily by one federal agencythe Corpsand one
state agencythe South Florida Water Management District (the District),
which manages water resources for South Florida and is the Corps' local
sponsor, or partner. These two agencies are responsible for operating the
Central and Southern Florida Project as it is currently configured and will
be responsible for planning, designing, and constructing the Plan's projects
to reconfigure it. The agencies are responsible for meeting both the water
supply and water quality goals in the Plan. Furthermore, under the Clean
Water Act, which seeks to restore and maintain the physical, chemical, and
biological integrity of the nation's waters, the projects must be designed
to meet applicable state water quality standards.

The Projects in the Corps' Plan Supplement Florida's Efforts to Address
Water Quality in the Ecosystem

The water quality projects included in the Corps' Plan supplement the
efforts of Florida, which is primarily responsible for ensuring compliance
with water quality standards in the ecosystem and for ensuring that the
projects meet state water quality standards. To identify water quality
projects, the Corps established two criteria. First, the Corps included
projects to treat water that is being reclaimed as part of the Plan. This
water is now being discharged by the Central and Southern Florida Project
into the ocean, but under the Plan, it will be diverted, stored, and
discharged into natural areas to supplement water supply and improve
habitat. Second, the Corps included treatment projects for water that will
be reused. This water will also be reclaimed, but its final use will be
changed. For example, the Corps now releases water from Lake Okeechobee to
the water conservation areas for flood control purposes and water supply,
but under the Plan it will instead release some of this water for
environmental purposes. As authorized by the Water Resources Development Act
of 1996, the Corps included 24 projects in the Plan to improve water quality
in the South Florida ecosystem that the Corps deemed essential to achieve
the restoration of the Everglades. These include

   * 17 projects to construct stormwater treatment areas in areas where new
     storage sites will be built to reclaim water or modify its use;
   * 2 advanced wastewater treatment facilities to take runoff from the
     Miami area, treat it, and return it to natural areas to increase the
     amount of water being provided there; and
   * 5 smaller projects, such as the restoration of wetlands or dredging of
     sediments from lakes or other water bodies, that will have immediate
     environmental benefits.

The federal and state governments will share the costs of these projects
equally. Figure 1 shows the location of the 24 water quality projects
included in the Plan.

Figure 1: Location of the Plan's Water Quality Projects

[0x01 graphic]

Source: GAO's adaptation of an illustration prepared by the U.S. Army Corps
of Engineers.

Resolution of Project Uncertainties and Outcomes of Studies May Lead to
Additional Water Quality Projects and Costs

As the Corps implements the Plan, Corps officials believe that modifications
to existing projects and additional projects may be necessary, as their
details are further developed and as uncertainties about their
implementation are resolved. In addition, the Corps plans to conduct several
studies that may further identify water quality problems in the ecosystem.
If it is determined that additional water quality projects are needed during
the Plan's implementation or as a result of these studies, the costs to
implement the Plan could increase above the Corps' current $7.8 billion
estimate. Recognizing that additional projects could be needed as the Plan
is implemented, the Corps included a process in the Plan to incorporate and
report to the Congress on modifications and additions to it. However, the
Corps has not included a process for updating the Congress on the cumulative
effects of the individual changes on the overall Plan.

This information is primarily based on our discussions with officials from
federal and state agencies that have responsibilities for managing water
supplies and ensuring water quality in South Florida. Reliance on
discussions with federal and state officials was necessary because the Plan
is a conceptual document and detailed plans of the projects to be
constructed are not yet available.

Resolution of Implementation Uncertainties

The Corps acknowledged that a number of uncertainties associated with
implementing the Plan's projects have not yet been resolved and could lead
to additional water quality projects. These uncertainties include

   * whether planned stormwater treatment areas will be successful in
     achieving the lowest phosphorus concentration needed,
   * whether 245,000 acre-feet of additional water will be needed for
     Everglades National Park, and
   * what type and level of treatment will be necessary for water stored in
     and retrieved from aquifer storage and recovery wellslarge underground
     wells that are one of the primary means in the Plan for storing water.

Impact of Ongoing and Planned Studies

Recognizing that all the water quality concerns in the South Florida
ecosystem have not been fully identified, the Corps plans to conduct several
feasibility studies to identify such concerns in areas of the ecosystem that
were not included when the Plan was developed. These feasibility studies,
which focus on the Southwest Florida and Florida Bay/Florida Keys areas,
were included in the Plan because there was not enough time when the Plan
was being developed for a thorough investigation of all the water resource
problems in these areas of the ecosystem. In addition to the feasibility
studies proposed in the Plan, the Corps is currently conducting two
feasibility studies under the authority of the Water Resources Development
Act of 1996the Indian River Lagoon Feasibility Study and the Water Preserve
Areas Feasibility Studyand is conducting a third for Biscayne Bay under a
separate authority. These studies will likely identify new water quality
projects to add to the Plan and would be in addition to those needed to
address the uncertainties involved in implementing the Plan. For example, as
a result of the Indian River Lagoon Feasibility Study, the Corps will likely
add a water quality project to the Plan to dredge the lagoon to remove
sediments from the St. Lucie estuary, a major tributary of the lagoon, to
improve the water's quality and clarity.

Moreover, the Plan recommends the development of a comprehensive integrated
water quality plan to evaluate and determine whether any additional water
quality projects recommended by the state should be added to the Plan.
Recognizing that not all of the ecosystem's water quality concerns have been
identified, the Corps has included a recommendation in the Plan for the
development of a comprehensive integrated water quality plan. According to
Corps officials, the water quality plan will be closely coordinated with the
South Florida Water Quality Protection Program, which was recently initiated
by the state. As the state program identifies additional projects to improve
water quality, the Corps will evaluate whether the projects are essential
and whether the federal government should participate in them, share their
costs, and include them in its comprehensive plan.

An example of an ongoing restoration effort where the Corps might have a
future role is the cleanup of Lake Okeechobee. The lake, which has been
described as the liquid heart of the ecosystem, may require a number of
projects to restore the quality of its water. According to Corps officials,
these projects could eventually require the Corps' involvement. Currently,
Lake Okeechobeewhich was once a sandy-bottomed, clear, shallow lakehas high
levels of phosphorus that make it prone to algal blooms and cattail growth,
adversely affecting the quantity and types of plants and fish in the lake.
Despite the implementation of certain permitting programs by the state, the
annual phosphorus amounts exceed the state targets. Our discussions with
state officials responsible for water quality in Florida indicate that a
combination of actions, such as agricultural best management practices and
the use of storm water treatment areas, will be needed to lower the levels
of phosphorus entering the lake. According to Corps officials, the Corps may
participate in the construction of other stormwater treatment areas if the
state determines that additional areas are needed. In addition, some federal
and state officials believe that if large deposits of phosphorus-laden
sediment remain in the lake, the lake's water quality will remain a
significant problem. Although no final decision has been made on what
actions to take, a preliminary estimate prepared by an issue team of federal
and state scientists showed that fully dredging the lake could cost at least
$1 billion. Pending Florida's completion of a feasibility study on options
to remove the sediment, the Corps could become involved if it decides that
the proposed action is essential to the restoration of the ecosystem.

The Plan Includes a Process for Incorporating and Reporting Change

To allow for changes that will result as uncertainties involved in
implementing the Plan's projects are resolved, including the possible
addition of water quality projects, the Corps' Plan includes three ways to
incorporate changes: (1) additional efforts, such as surveys, mapping, and
water quality analyses, that are needed to develop the final design of the
projects; (2) pilot projects conducted to resolve technical uncertainties;
and (3) an adaptive assessment process, which involves monitoring the
systemwide effects of the projects on the ecosystem as they are implemented.
The Corps has also included a process in the Plan for authorizing future
projects, including any changes, either modifications or additions, that
result from its additional planning efforts. As it prepares to move forward
with a project, the Corps will submit to the Congress a project
implementation report that includes the detailed technical information
necessary to design a project or a group of similar projects. These reports
will be used to add, remove, or modify projects in the Plan and, except for
the projects presented for initial authorization, will be presented to the
Congress for authorization every 2 years until 2014when the Corps
anticipates that all of the projects needed for the restoration effort will
have been authorized. Although the reports will contain recommendations for
any modifications to the Plan whose need was determined by systemwide
evaluations, the Corps does not currently plan to report to the Congress on
the cumulative changes that have been made to the Plan. Such a report would
provide the Congress and the state with an understanding of how the Plan is
evolving, as well as an update every 2 years on the costs of the projects
and the Plan.

Mr. Chairman, achieving water quality improvements in the South Florida
ecosystem will depend on several programs and efforts, including the Corps'
Plan. Although the Plan currently includes 24 projects to address the
quality of water in natural areas of the ecosystem, there are too many
uncertainties to estimate the number and costs of the projects that will
ultimately be needed to improve water quality. Given the Plan's conceptual
nature and the likelihood of changes and additions to its projects, we
recommend in our report that the Secretary of the Army, when submitting
subsequent authorization proposals, provide the Congress with updates that

   * reflect the cumulative project and cost changes to the overall Plan and

   * indicate the progress being made toward implementing the Plan.

Both the Corps and the state of Florida agreed with our recommendation. The
Corps also agreed that there are many uncertainties associated with
implementing the overall Plan and the projects to improve water quality in
the South Florida ecosystem. The Corps believes that the uncertainties have
been fully disclosed and has proposed a methodology that will address them.
This methodology includes the development of project implementation reports.
We recognize that the Corps was aware of the uncertainties associated with
implementing the Plan and our report describes, in detail, the process that
the Corps included in the Plan to incorporate changes as the uncertainties
are resolved. We believe that the resolution of these uncertainties may lead
to additional water quality projects and will likely result in cost
increases. The state took exception to the inclusion of the $1 billion cost
estimate for dredging Lake Okeechobee in our report and maintained that we
characterized the Corps' involvement as inevitable. We do not believe that
our report characterized the Corps' involvement in dredging Lake Okeechobee
as inevitable. We included Lake Okeechobee as an example of an area where,
through the state's efforts to identify actions needed to improve water
quality in the South Florida ecosystem, the Corps could have a future role.
We point out in our report that the state has not yet determined all of the
actions that will be needed to clean up Lake Okeechobee and that the Corps'
role has not yet been defined. However, to emphasize that point, we revised
this section of our report to reiterate that once the state determines which
projects are necessary, the Corps will determine if the additional projects
are essential to the ecosystem's restoration and decide if the federal
government will participate in and share the costs of the additional
projects.

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 Barry Hill at
(202) 512-3841. Individuals making key contributions to this testimony
included Susan Iott, Chet Janik, and Sherry McDonald.

(141497)

The Comprehensive Everglades Restoration Plan includes 68 projects, but 2 of
these projects were funded under another program's authority. As a result,
there are 66 projects remaining in the Plan. Many of the projects have
multiple purposes and contain multiple features. We use the term projects to
refer to the 66 projects and their features.

The Corps estimates that most projects will be completed within 20 years;
however, the projected time frames for two large reservoir projects extend
over 35 years. According to Corps officials, appropriations levels will
affect these time frames.

Comprehensive Everglades Restoration Plan: Additional Water Quality Projects
May Be Needed and Costs Could Increase(GAO/RCED-00-235, Sept.14, 2000)

Design work is already progressing under the authority of an existing design
agreement between the Corps and the District.

Although the South Florida Water Management District is the primary
nonfederal sponsor, as many as five counties and city governments and Native
American tribes could also serve as nonfederal sponsors for portions of the
Plan. The Seminole Tribe of Florida signed a project coordination agreement
with the Corps in Jan. 2000 to implement a water resources project on its
Big Cypress Reservation.

Enacted in 1972, the Federal Water Pollution Control Act is commonly called
the Clean Water Act (33 U.S.C. 1251-1387).

An acre-foot of water is equal to about 326,000 gallons of water--enough to
cover 1 acre to a depth of 1 foot.

The purpose of the program, which will be developed primarily by those
entities that have water quality responsibilities in South Florida, will be
to identify water quality problems in the ecosystem; recommend actions to
deal with these problems; and identify and coordinate the efforts of the
federal, state, tribal, or local agencies that will be responsible for
taking action. The key programs that will be coordinated are the state's
total maximum daily load program and its activities under Florida's
Everglades Forever Act, as well as the Corps' projects in the Comprehensive
Everglades Restoration Plan.

8

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