South Florida Ecosystem
Some Restoration Progress Has Been Made, but the Effort Faces Significant Delays, Implementation Challenges, and Rising Costs Gao ID: GAO-07-1250T September 19, 2007The South Florida ecosystem covers about 18,000 square miles, and is home to the Everglades, one of the world's unique environmental resources. Historic efforts to redirect the flow of water through the ecosystem have jeopardized its health and reduced the Everglades to about half of its original size. In 1993, the United Nations Educational, Scientific, and Cultural Organization's World Heritage Committee (WHC) added Everglades National Park (Park) to its List of World Heritage in Danger sites. In 2000, a strategy to restore the ecosystem was set; the effort was expected to take at least 40 years and cost $15.4 billion. It comprises 222 projects, including 60 key projects known as the Comprehensive Everglades Restoration Plan (CERP), to be undertaken by a multiagency partnership. This testimony is based on GAO's May 2007 report, South Florida Ecosystem: Restoration Is Moving Forward, but Is Facing Significant Delays, Implementation Challenges, and Rising Costs, and a review of WHC decision documents relating to the Park's listing. This statement addresses the (1) status of projects implemented (2) status of projects key to improving the health of the Park, (3) project sequencing factors, and (4) funding provided for the effort and extent to which costs have increased.
Of the restoration effort's 222 projects, 43 have been completed, 107 are being implemented, and 72 are in design, in planning, or are not yet started. The completed and ongoing projects will provide improved water quality and water flow within the ecosystem and additional habitat for wildlife. According to restoration officials, significant progress has been made in acquiring land, constructing water quality projects, and restoring a natural water flow to the Kissimmee River--the headwater of the ecosystem. Many of the policies, strategies, and agreements required to guide the restoration in the future are also now in place. However, the 60 CERP projects, which are the most critical to the restoration's overall success, are among those that are currently being designed, planned, or have not yet started. Some of these projects are behind schedule by up to 6 years. Florida recently began expediting the design and construction of eight key projects, with the hope that they would immediately benefit the environment, enhance flood control, and increase water supply, thus providing further momentum to the restoration. In 2006, the WHC adopted several key benchmarks that if met would facilitate removal of the Everglades National Park from its List of World Heritage in Danger sites. As noted by WHC, achievement of these benchmarks was linked to the implementation of nine key restoration projects. However, only one of these projects has been completed, four are currently being implemented and four are currently being designed. Moreover, the benefits of these projects will not be available for many years because most of the projects are scheduled for completion between 2011 and 2035. There are no overarching sequencing criteria that restoration officials use when making implementation decisions for all 222 projects that make up the restoration effort. Instead, decisions for 162 projects are driven largely by the availability of funds. There are regulatory criteria to ensure that the goals and purposes of the 60 CERP projects are achieved in a cost effective manner. However, the 2005 sequencing plan developed for these projects is not consistent with the criteria because some of the data needed to fully apply these criteria were not available. Therefore, there is little assurance that the plan will be effective. GAO recommended that the agencies obtain the needed data and then comprehensively reassess the sequencing ofthe CERP projects. From fiscal years 1999 through 2006, the federal government contributed $2.3 billion and Florida contributed $4.8 billion, for a total of about $7.1 billion for the restoration. However, federal funding was about $1.4 billion short of the funds originally projected for this period. In addition, the total estimated costs for the restoration have increased by 28 percent--from $15.4 billion in 2000 to $19.7 billion in 2006 because of project scope changes, increased construction costs, and higher land costs. More importantly, these cost estimates do not represent the true costs for the overall restoration effort because they do not include all cost components for a number of projects.
GAO-07-1250T, South Florida Ecosystem: Some Restoration Progress Has Been Made, but the Effort Faces Significant Delays, Implementation Challenges, and Rising Costs
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Testimony:
Before the Subcommittee on International Operations and Organizations,
Democracy and Human Rights, Committee on Foreign Relations, U.S.
Senate:
United States Government Accountability Office:
GAO:
For Release on Delivery Expected at 3:00 p.m. EDT:
Wednesday, September 19, 2007:
South Florida Ecosystem:
Some Restoration Progress Has Been Made, but the Effort Faces
Significant Delays, Implementation Challenges, and Rising Costs:
Statement of Anu K. Mittal, Director:
Natural Resources and Environment:
South Florida Ecosystem Restoration:
GAO-07-1250T:
GAO Highlights:
Highlights of GAO-07-1250T, a testimony before the Subcommittee on
International Operations and Organizations, Democracy and Human Rights,
Committee on Foreign Relations, U.S. Senate.
Why GAO Did This Study:
The South Florida ecosystem covers about 18,000 square miles, and is
home to the Everglades, one of the world‘s unique environmental
resources. Historic efforts to redirect the flow of water through the
ecosystem have jeopardized its health and reduced the Everglades to
about half of its original size. In 1993, the United Nations
Educational, Scientific, and Cultural Organization‘s World Heritage
Committee (WHC) added Everglades National Park (Park) to its List of
World Heritage in Danger sites. In 2000, a strategy to restore the
ecosystem was set; the effort was expected to take at least 40 years
and cost $15.4 billion. It comprises 222 projects, including 60 key
projects known as the Comprehensive Everglades Restoration Plan (CERP),
to be undertaken by a multiagency partnership.
This testimony is based on GAO‘s May 2007 report, South Florida
Ecosystem: Restoration Is Moving Forward, but Is Facing Significant
Delays, Implementation Challenges, and Rising Costs, and a review of
WHC decision documents relating to the Park‘s listing. This statement
addresses the (1) status of projects implemented (2) status of projects
key to improving the health of the Park, (3) project sequencing
factors, and (4) funding provided for the effort and extent to which
costs have increased.
What GAO Found:
Of the restoration effort‘s 222 projects, 43 have been completed, 107
are being implemented, and 72 are in design, in planning, or are not
yet started. The completed and ongoing projects will provide improved
water quality and water flow within the ecosystem and additional
habitat for wildlife. According to restoration officials, significant
progress has been made in acquiring land, constructing water quality
projects, and restoring a natural water flow to the Kissimmee River”the
headwater of the ecosystem. Many of the policies, strategies, and
agreements required to guide the restoration in the future are also now
in place. However, the 60 CERP projects, which are the most critical to
the restoration‘s overall success, are among those that are currently
being designed, planned, or have not yet started. Some of these
projects are behind schedule by up to 6 years. Florida recently began
expediting the design and construction of eight key projects, with the
hope that they would immediately benefit the environment, enhance flood
control, and increase water supply, thus providing further momentum to
the restoration.
In 2006, the WHC adopted several key benchmarks that if met would
facilitate removal of the Everglades National Park from its List of
World Heritage in Danger sites. As noted by WHC, achievement of these
benchmarks was linked to the implementation of nine key restoration
projects. However, only one of these projects has been completed, four
are currently being implemented and four are currently being designed.
Moreover, the benefits of these projects will not be available for many
years because most of the projects are scheduled for completion between
2011 and 2035. There are no overarching sequencing criteria that
restoration officials use when making implementation decisions for all
222 projects that make up the restoration effort. Instead, decisions
for 162 projects are driven largely by the availability of funds.
There are regulatory criteria to ensure that the goals and purposes of
the 60 CERP projects are achieved in a cost effective manner. However,
the 2005 sequencing plan developed for these projects is not consistent
with the criteria because some of the data needed to fully apply these
criteria were not available. Therefore, there is little assurance that
the plan will be effective. GAO recommended that the agencies obtain
the needed data and then comprehensively reassess the sequencing of the
CERP projects.
From fiscal years 1999 through 2006, the federal government contributed
$2.3 billion and Florida contributed $4.8 billion, for a total of about
$7.1 billion for the restoration. However, federal funding was about
$1.4 billion short of the funds originally projected for this period.
In addition, the total estimated costs for the restoration have
increased by 28 percent”from $15.4 billion in 2000 to $19.7 billion in
2006 because of project scope changes, increased construction costs,
and higher land costs. More importantly, these cost estimates do not
represent the true costs for the overall restoration effort because
they do not include all cost components for a number of projects.
What GAO Recommends:
GAO is not making any new recommendations.
[hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO-07-1250T].
To view the full product click on the link above. For more information,
contact Anu K. Mittal at 202-512-3841 or mittala@gao.gov.
[End of section]
Mr. Chairman and Members of the Subcommittee:
We are pleased to be here today to participate in your hearing on
protecting the Everglades. As you know, restoring the South Florida
ecosystem is a complex, long-term effort. This vast region, which is
home to a rapidly growing population of more than 6 million people and
supports a large agriculture-, tourism-, and recreation-based economy,
also encompasses one of the world's unique environmental resources--the
Everglades. Recognizing the importance of the Everglades, in 1979, the
World Heritage Committee (WHC) of the United Nations Educational,
Scientific, and Cultural Organization (UNESCO) included Everglades
National Park (Park) on its list of world cultural and natural heritage
sites of importance. However, over the past 100 years, engineering
projects designed to control floods and supply water to the residents
of South Florida have diverted water from the Everglades. This
alteration of water flow, coupled with agricultural and industrial
activities and urbanization, has jeopardized the ecosystem's health and
reduced the Everglades to about half of its original size. In light of
the Everglades deteriorating condition, in 1993 the WHC added the Park
to its List of World Heritage in Danger sites. These sites are
determined to be facing serious and specific threats and require major
conservation efforts.
In 1996, through the Water Resources Development Act of 1996, the
Congress formalized the South Florida Ecosystem Restoration Task Force,
an effort established by federal agencies in 1993 to stem the
deterioration of the ecosystem and restore the Everglades to a more
natural state. The Task Force was expanded to include state, local, and
tribal representatives and was charged with coordinating and
facilitating efforts to restore the ecosystem. The restoration effort
currently consists of 222 projects, which include 60 key projects that
comprise the Comprehensive Everglades Restoration Plan (CERP), 28
projects that lay the foundation for the CERP projects (that we refer
to as CERP-related projects); and 134 projects that are not directly
related to CERP (that we refer to as non-CERP projects). According to
WHC and Park documents, nine of the 222 projects are key to achieving a
set of benchmarks adopted by the WHC in 2006 that, when met, would lead
to the removal of the Park from its list of sites in danger.
Our testimony today focuses on the (1) status of restoration projects
and their expected benefits, (2) status of projects that are key to
restoring the health of Everglades National Park, (3) factors that
influence the sequencing of project implementation, and (4) amount of
funding provided to the restoration effort since 1999 and the extent to
which costs have increased. Our testimony is based primarily on our May
2007 report [Footnote 1]on the status of the South Florida Ecosystem
Restoration Initiative. In addition, at the request of the
subcommittee, we reviewed publicly available WHC decision documents
regarding Everglades National Park's inclusion on the List of World
Heritage in Danger. We conducted our work in accordance with generally
accepted government auditing standards.
In summary, we found the following:
* Forty-three of the 222 projects that constitute the South Florida
ecosystem restoration effort have been completed, while the remaining
projects are currently being implemented or are in design, being
planned, or have not yet started. Many of the completed projects are
intended primarily to improve water quality in natural areas or to
acquire or improve tracts of land in order to preserve wildlife
habitat. The projects now being implemented also emphasize the
restoration of wildlife habitat by acquiring or improving land, as well
as the construction of key CERP-related projects that will improve
water flow to natural areas. The projects not yet implemented are
largely CERP projects that are crucial to realizing the restoration's
overall goals, but these projects are progressing slowly. Despite the
slow progress, agency officials report a number of achievements, such
as finalizing key CERP agreements and restoring a more natural water
flow to the Kissimmee River which is the headwater of the ecosystem. In
addition, because of the continuing delays in implementing critical
CERP projects, the state has begun expediting the design and
construction of some of these projects with its own resources. The
state hopes that its efforts will provide some immediate environmental,
flood control and water supply benefits and will help provide some
impetus to the larger CERP effort.
* Most of the nine projects that were identified by the WHC as being
critical to removing Everglades National Park from the list of world
heritage sites in danger have not yet been completed. Specifically,
only one project has been completed, four are currently being
implemented, and four are currently in the planning and design phase.
Moreover, the benefits from these projects may not be apparent for many
more years. For example, five of the projects have scheduled completion
dates from 2012 to 2035.
* There are no overarching criteria to ensure that the 222 projects
that make up the restoration effort are implemented in a sequence that
would ensure the achievement of environmental benefits as early as
possible and in the most cost effective manner. Instead, implementation
decisions for the 162 CERP-related and non-CERP projects are largely
driven by available funding. The 60 CERP projects--which are critical
to successfully achieving the restoration--have sequencing criteria;
however, when the agencies developed their sequencing plan for CERP
projects in 2005, they did not have key data and other information to
fully apply these criteria. Recently, the agencies began revising the
CERP project schedules and sequencing plan, but they still do not have
the key information needed to fully apply the established criteria. As
a result, there is little assurance that the revised sequencing plan,
when it is final, will lead to a CERP project implementation plan that
will provide restoration benefits as early as possible and in the most
cost-effective manner. We recommended that the agencies obtain the
information needed to fully apply the required criteria and then
comprehensively reassess its sequencing decisions to ensure that the
CERP projects have been appropriately sequenced.
* Participating federal and state agencies provided a total of $7.1
billion for the restoration effort from fiscal years 1999 through 2006.
During this period, the federal government contributed about $2.3
billion to the restoration effort and Florida contributed about $4.8
billion. However, the federal contribution to the effort has been about
$1.4 billion less than agencies expected during this period. Because
the state has contributed more than its share the overall shortfall for
the restoration effort has been about $1.2 billion. At the same time,
the total projected cost of the restoration effort has increased by 28
percent--from $15.4 billion in 2000 to $19.7 billion in 2006. According
to agency officials, the overall cost increases are due to project
scope changes, increased construction costs, and higher land costs.
Moreover, these cost estimates do not reflect the true cost of the
restoration effort, which could be significantly higher because most
CERP projects are still in the conceptual phase and their full cost is
not yet known.
Background:
The South Florida ecosystem covers about 18,000 square miles in 16
counties. It extends from the Kissimmee Chain of Lakes south of Orlando
to Lake Okeechobee, and continues south past the Florida Bay to the
reefs southwest of the Florida Keys. The ecosystem is in jeopardy today
because of past efforts that diverted water from the Everglades to
control flooding and to supply water for urban and agricultural
development. The Central and Southern Florida project, a large-scale
water control project begun in the late 1940s, constructed more than
1,700 miles of canals and levees and over 200 water control structures
that drain an average of 1.7 billion gallons of water per day into the
Atlantic Ocean and the Gulf of Mexico. This construction resulted in
insufficient water for the natural system and for the growing
population, along with degraded water quality. Today, the Everglades
has been reduced to half its original size and the ecosystem continues
to deteriorate because of the alteration of the water flow, impacts of
agricultural and industrial activities, and increasing urbanization.
In response to growing signs of ecosystem deterioration, federal
agencies established the South Florida Ecosystem Restoration Task Force
in 1993 to coordinate ongoing federal restoration activities. The Water
Resources Development Act of 1996 formalized the Task Force and
expanded its membership to include state, local, and tribal
representatives, and charged it with coordinating and facilitating
efforts to restore the ecosystem. The Task Force, which is chaired by
the Secretary of the Department of the Interior, consists of 14 members
representing 7 federal agencies, 2 American Indian tribes, and 5 state
or local governments.[Footnote 2]
To accomplish the restoration, the Task Force established the following
three goals:
* Get the water right. The purpose of this goal is to deliver the right
amount of water, of the right quality, to the right places, at the
right times. However, restoring a more natural water flow to the
ecosystem while providing adequate water supplies and controlling
floods will require efforts to expand the ecosystem's freshwater supply
and improve the delivery of water to natural areas. Natural areas of
the ecosystem are made up of federal and state lands, and coastal
waters, estuaries, bays, and islands.
* Restore, preserve, and protect natural habitats and species. To
restore lost and altered habitats and recover the endangered or
threatened species native to these habitats, the federal and state
governments will have to acquire lands and reconnect natural habitats
that have become disconnected through growth and development, and halt
the spread of invasive species.
* Foster compatibility of the built and natural systems. To achieve the
long-term sustainability of the ecosystem, the restoration effort has
the goal of maintaining the quality of life in urban areas while
ensuring that (1) development practices limit habitat fragmentation and
support conservation and (2) traditional industries, such as
agriculture, fishing, and manufacturing, continue to be supported and
do not damage the ecosystem.
The centerpiece for achieving the goal to get the water right is the
Comprehensive Everglades Restoration Plan (CERP), approved by the
Congress in the Water Resources Development Act of 2000 (WRDA 2000).
CERP is one of the most ambitious restoration efforts the federal
government has ever undertaken. It currently encompasses 60 individual
projects that will be designed and implemented over approximately 40
years.[Footnote 3] These projects are intended to increase the water
available for the natural areas by capturing much of the water that is
currently being diverted, storing the water in many different
reservoirs and storage wells, and releasing it when it is needed. The
cost of implementing CERP will be shared equally between the federal
government and the state of Florida and will be carried out primarily
by the U.S. Army Corps of Engineers (the Corps) and the South Florida
Water Management District (SFWMD), which is the state authority that
manages water resources for South Florida.[Footnote 4] After the Corps
and SFWMD complete the initial planning and design for individual CERP
projects, they must submit the proposed projects to the Congress to
obtain authorization and funding for construction.
In addition to the CERP projects, another 162 projects are also part of
the overall restoration effort. Twenty-eight of these projects, when
completed, will serve as the foundation for many of the CERP projects
and are intended to restore a more natural water flow to Everglades
National Park and improve water quality in the ecosystem. Nearly all of
these "CERP-related" projects were already being designed or
implemented by federal and state agencies, such as the Department of
the Interior and SFWMD, in 2000 when the Congress approved CERP. The
remaining 134 projects include a variety of efforts that will, among
other things, expand wildlife refuges, eradicate invasive species, and
restore wildlife habitat, and are being implemented by a number of
federal, state, and tribal agencies, such as the U.S. Fish and Wildlife
Service, the Florida Department of Environmental Protection (FDEP), and
the Seminole Tribe of Florida. Because these projects were not
authorized as part of CERP and do not serve as CERP's foundation, we
refer to them as "non-CERP" projects.
Success in completing the restoration effort and achieving the expected
benefits for the ecosystem as quickly as possible and in the most cost-
effective manner depends on the order, or sequencing, in which many of
the 222 projects will be designed and completed. Appropriate sequencing
is also important to ensure that interdependencies among restoration
projects are not ignored. For example, projects that will construct
water storage facilities and stormwater treatment areas need to be
completed before undertaking projects that remove levees and restore a
more natural water flow to the ecosystem.
Recognizing the threats that Everglades National Park was facing, in
1993, UNESCO's World Heritage Committee (WHC) included the Park on its
List of World Heritage in Danger. This list includes cultural or
natural properties that are facing serious and specific threats such as
those caused by large-scale public or private projects or rapid
urbanization; the outbreak or the threat of an armed conflict;
calamities and cataclysms; and changes in water levels, floods, and
tidal waves. The Park's inclusion on the list resulted from five
specific threats: (1) urban encroachment; (2) agricultural fertilizer
pollution; (3) mercury contamination of fish and wildlife; (4) lowered
water levels due to flood control measures; and (5) damage from
Hurricane Andrew, which struck the south Florida peninsula in 1992 with
winds exceeding 164 miles per hour. In 2006, WHC adopted a set of
benchmarks that, when met, would lead to the Park's removal from the
list. According to Park and WHC documents, nine projects that are part
of the overall restoration effort will contribute to the achievement of
these benchmarks.
Although Many Restoration Projects Have Been Completed or Are Ongoing,
Key Restoration Benefits Are Expected to Come From Projects Not Yet
Implemented:
Forty-three of the 222 projects that constitute the South Florida
ecosystem restoration effort have been completed, while the remaining
projects are currently being implemented or are either in design, being
planned, or have not yet started. Table 1 shows the status of the 222
restoration projects.
Table 1: Status of the 222 Restoration Projects by Project Group:
CERP;
Completed: 0;
In implementation: 7;
Not yet implemented: Planning/design: 21;
Not yet implemented: Not yet started: 32;
Total: 60.
CERP-related;
Completed: 15;
In implementation: 10;
Not yet implemented: Planning/design: 3;
Not yet implemented: Not yet started: 0;
Total: 28.
Non-CERP;
Completed: 28;
In implementation: 90;
Not yet implemented: Planning/design: 2;
Not yet implemented: Not yet started: 14;
Total: 134.
Total;
Completed: 43;
In implementation: 107;
Not yet implemented: Planning/design: 26;
Not yet implemented: Not yet started: 46;
Total: 222.
Source: GAO analysis of documents provided by Task Force and
participating agencies.
[End of table]
Completed Restoration Projects --Although 43 of the 222 projects have
been completed since the beginning of the restoration effort, this
total is far short of the 91 projects that the agencies reported would
be completed by 2006.[Footnote 5] Nine projects were completed before
2000 when the strategy to restore the ecosystem was set. These projects
are expected to provide benefits primarily in the area of habitat
acquisition and improvement. Thirty-four projects were completed
between 2000 and 2006. The primary purposes of these projects range
from the construction of stormwater treatment areas, to the acquisition
or improvement of land for habitat, to the drafting of water supply
plans.
Ongoing Restoration Projects --Of the 107 projects currently being
implemented,[Footnote 6] 7 are CERP projects, 10 are CERP-related
projects, and 90 are non-CERP projects. Five of the seven CERP projects
are being built by the state in advance of the Corps' completion of the
necessary project implementation reports and submission of them to the
Congress for authorization and appropriations. Nonetheless, some of the
CERP projects currently in implementation are significantly behind
schedule. For example, four of the seven CERP projects in
implementation were originally scheduled for completion between
November 2002 and September 2006, but instead will be completed up to 6
years behind their original schedule because it has taken the Corps
longer than originally anticipated to design and obtain approval for
these projects. Overall, 19 of the 107 projects currently being
implemented have expected completion dates by 2010. Most of the
remaining 88 projects are non-CERP habitat acquisition and improvement
projects that have no firm end date because the land will be acquired
from willing sellers as it becomes available.
Projects Not Yet Implemented --Of the 72 restoration projects not yet
implemented--in design, in planning, or not yet started--53 are CERP
projects that are expected to be completed over the next 30 years and
will provide important benefits such as improved water flow, additional
water for restoration as well as other water-related needs. In
contrast, the other 19 projects include 3 CERP-related and 16 non-CERP
projects, which are expected to be completed by or before 2013.
Consequently, the full environmental benefits for the South Florida
ecosystem restoration that the CERP projects were intended to provide
will not be realized for several decades. Several of the CERP projects
in design, in planning, or not yet begun, were originally planned for
completion between December 2001 and December 2005, but instead will be
completed from 2 to 6 years behind their original schedule. According
to agency officials CERP project delays have occurred for the following
reasons:
* It took longer than expected to develop the appropriate policy,
guidance, and regulations that WRDA 2000 requires for the CERP effort.
* Some delays were caused by the need to modify the conceptual design
of some projects to comply with the requirements of WRDA 2000's savings
clause. According to this clause, CERP projects cannot transfer or
eliminate existing sources of water unless an alternate source of
comparable quantity and quality is provided, and they cannot reduce
existing levels of flood protection.[Footnote 7]
* Progress was limited by the availability of less federal funding than
expected and a lack of congressional authorization for some of the
projects.
* The extensive modeling that accompanies the design and implementation
of each project in addition to the "cumbersome" project review process
may have also contributed to delays, as well as stakeholder comment,
dispute resolution, and consensus-building that occurs at each stage of
a project.
* Delays have occurred in completing the CERP-related Modified Water
Deliveries to Everglades National Park (Mod Waters) project, which is a
major building block for CERP. These delays, in turn, have delayed CERP
implementation.
Given the continuing delays in implementing critical CERP projects, the
state has begun expediting the design and construction of some of these
projects with its own resources. The state's effort, known as Acceler8,
includes most of the CERP projects that were among WRDA 2000's 10
initially authorized projects, whose costs were to be shared by the
federal government and the state. According to Florida officials, by
advancing the design and construction of these projects with its own
funds, the state hopes to more quickly realize restoration benefits for
both the natural and human environments and to jump-start the overall
CERP effort once the Congress begins to authorize individual projects.
The Acceler8 projects include seven that are affiliated with CERP and
an eighth that expands existing stormwater treatment areas. The state
expects to spend more than $1.5 billion to design and construct these
projects by 2011.
Restoration Projects That Would Help Achieve the World Heritage
Committee's Benchmarks Will Not Be Completed for Many Years:
Most of the restoration projects that would help Everglades National
Park achieve the WHC's benchmarks for removing the Park from its list
of world heritage sites in danger have not been completed. According to
Park and WHC documents, nine restoration projects were key to meeting
these benchmarks. Table 2 lists the nine projects, the type of project,
implementation status, and expected completion date.
Table 2: Status of Nine Restoration Projects Key to Achieving the World
Heritage Committee's Benchmarks:
Project: Storm Water Treatment Areas 3/4;
Type: CERP-related;
Purpose: Water Quality;
Stage: Completed;
Completion Date: 2005.
Project: East Everglades Addition to Everglades National Park;
Type: Non-CERP;
Purpose: Habitat Acquisition and Improvement;
Stage: Ongoing;
Completion Date: TBD.
Project: Everglades Agriculture Area Storm Water Treatment Areas
Expansion;
Type: CERP-related;
Purpose: Water Quality;
Stage: Ongoing;
Completion Date: 2010.
Project: Modified Water Deliveries;
Type: CERP-related;
Purpose: Water Storage and Flow;
Stage: Ongoing;
Completion Date: 2011.
Project: C-111 (South Dade);
Type: CERP-related;
Purpose: Water Storage and Flow;
Stage: Ongoing;
Completion Date: 2012.
Project: C-111 Spreader Canal;
Type: CERP;
Purpose: Water Quality;
Stage: Not Yet Implemented;
Completion Date: 2015[A].
Project: Everglades National Park Seepage Management;
Type: CERP;
Purpose: Water Storage and Flow;
Stage: Not Yet Implemented;
Completion Date: 2015.
Project: Water Conservation Area 3 --DECOMP;
Type: CERP;
Purpose: Water Storage and Flow;
Stage: Not Yet Implemented;
Completion Date: 2020.
Project: Central Lake Belt Storage;
Type: CERP;
Purpose: Water Storage and Flow;
Stage: Not Yet Implemented;
Completion Date: 2035.
Source: GAO analysis of agency provided data.
[A] SFWMD is expediting the design and construction of this project
with its own funds in advance of congressional authorization, which may
result in earlier completion.
[End of table]
As table 2 shows, only one of the nine projects has been completed;
four projects are ongoing and will not be completed until at least
2012; and four projects are still in planning and design and are not
expected to be completed until some time between 2015 and 2035.
In February 2007, the United States prepared a status report for the
WHC on the progress made in achieving the benchmarks that the committee
had established for the Park in 2006. Based on its review of this
progress report, at a benchmarks meeting on April 2-3, 2007, the WHC's
draft decision was to retain Everglades National Park on the list of
world heritage sites in danger; to recommend that the United States
continue its commitment to the restoration and conservation of the Park
and provide the required financial resources for the full
implementation of the activities associated with CERP. WHC's draft
decision also requested that the United States provide an updated
report by February 1, 2008 on the progress made towards implementation
of the corrective measures. However, at the WHC session held between
June 23 and July 2, 2007, the WHC decided to remove the Park from the
list of world heritage sites in danger and commended the United States
for the progress made in implementing corrective measures. In its final
decision, the WHC encouraged the United States to continue its
commitment to the restoration and provide the required financial
resources for the full implementation of the activities associated with
CERP. It is unclear from the WHC final decision document whether any
additional or new information was provided to the committee that led to
its final decision.
The Overall Restoration Effort Has No Sequencing Criteria and Criteria
Established For CERP Projects Have Not Been Fully Applied:
No overall sequencing criteria guide the implementation of the 222
projects that comprise the South Florida ecosystem restoration effort.
For the 60 CERP projects there are clearly defined criteria to be
considered in determining the scheduling and sequencing of projects.
However, the Corps has not fully applied these criteria when making
CERP project sequencing decisions, because it lacked key data such as
updated environmental benefits data and interim goals. As a result the
Corps primarily relied on technical interdependencies and availability
of funding as the criteria for making sequencing decisions.[Footnote 8]
The Corps has recently started to revisit priorities for CERP projects'
and alter project schedules that were established in 2005 (this process
is referred to as CERP-reset). However, because the Corps continues to
lack certain key data for making sequencing decisions, the revised
plan, when completed, will also not fully adhere to the criteria.
Although CERP-related projects provide the foundation for many CERP
projects, there are no established criteria for determining their
implementation schedule and their estimated start and completion dates
largely depend upon when and if the implementing agency will have
sufficient funding to implement the project. For example, the
construction of the Mod Waters project has been delayed several times
since 1997 because, among other things, Interior did not receive enough
funding to complete the construction of this project. This project is
expected to restore natural hydrologic conditions across 190,000 acres
of habitat in Everglades National Park and assist in the recovery of
threatened and endangered plants and wildlife. The completion date for
the Mod Waters Project has slipped again and it is now not expected to
be completed until 2011. Because completion of this project is critical
to the implementation of other CERP projects such as the Water
Conservation Area 3 Decompartmentalization and Sheetflow Enhancement
(Decomp) project--a project that many agency officials consider key to
restoring the natural system--these delays will have a ripple effect on
the completion date of this project as well.
Similarly, for non-CERP projects, agencies reported that they do not
have any sequencing criteria; instead, they decide on the scheduling
and timing of these projects primarily if and when funding becomes
available. For example, Florida has a land acquisition program to
acquire lands for conservation and habitat preservation throughout the
state, including for some non-CERP projects that are part of the South
Florida ecosystem restoration effort. State officials have identified
lands and added them to a list of priority projects proposed for
acquisition throughout the state. However, whether or not these lands
will be acquired for non-CERP projects depends on whether there is
available funding in the annual budget, there are willing sellers, and
the land is affordable based on the available funding.
Because of the correct sequencing of CERP projects is essential to the
overall success of the restoration effort, we recommended that the
Corps obtain the data that it needs to ensure that all required
sequencing criteria are considered and then comprehensively reassess
its sequencing decisions to ensure that CERP projects have been
appropriately sequenced to maximize the achievement of restoration
goals. The agency agreed with our recommendation.
Federal Agencies and Florida Have Provided More Than $7 Billion for
Restoration Activities Since 1999, But Estimated Costs Have Increased
and Are Likely to Rise:
From fiscal year 1999 through fiscal year 2006, federal and state
agencies participating in the restoration of the South Florida
ecosystem provided $7.1 billion for the effort. Of this total, federal
agencies provided $2.3 billion and Florida provided $4.8 billion. Two
agencies--the Corps and Interior--provided over 80 percent of the
federal contribution. As figure 1 shows, federal and state agencies
allocated the largest portion of the $7.1 billion to non-CERP projects
for fiscal years 1999 through 2006.
Figure 1: Federal and State Funding Provided for CERP, CERP-Related,
and Non-CERP Projects and Activities, Fiscal Years 1999-2006:
[See PDF for image]
Source: GAO analysis of federal and state agencies restoration funding
data.
Note: Amounts do not total to $7.1 billion due to rounding. The amounts
are $1.93 billion for CERP-related, $2.35 billion for CERP, and $2.80
billion for non-CERP.
[End of figure]
While federal agencies and Florida provided about $2.3 billion during
fiscal years 1999 through 2006 for CERP projects, this amount was about
$1.2 billion less than they had estimated needing for these projects
over this period. This was because the federal contribution was $1.4
billion less than expected. This shortfall occurred primarily because
CERP projects did not receive the congressional authorization and
appropriations that the agencies had expected. In contrast, Florida
provided a total of $2 billion over the period, exceeding its expected
contribution to CERP by $250 million, and therefore making up some of
the federal funding shortfall.
Additionally, between July 31, 2000, and June 30, 2006, the total
estimated cost for the South Florida ecosystem restoration grew from
$15.4 billion to $19.7 billion, or by 28 percent. A significant part of
this increase can be attributed to CERP projects; for these projects
costs increased from $8.8 billion to $10.1 billion. This increase
represents nearly 31 percent of the increase in the total estimated
cost for the restoration. Agency officials reported that costs have
increased for the restoration effort primarily because of inflation,
increased land and construction costs, and changes in the scope of
work. Furthermore, the costs of restoring the South Florida ecosystem
are likely to continue to increase for the following reasons:
* Estimated costs for some of the projects are not known or fully known
because they are still in the design and planning stage. For example,
the total costs for one project that we examined--the Site 1
Impoundment project--grew by almost $36 million; from about $46 million
to about $81 million after the design phase was completed. If other
CERP projects, for which initial planning and design have not yet been
completed, also experience similar increases in project costs, then the
estimated total costs of not only CERP but the overall restoration
effort will grow significantly.
* The full cost of acquiring land for the restoration effort is not
known. Land costs for 56 non-CERP land projects, expected to total
862,796 acres, have not yet been reported. According to state
officials, Florida land prices are escalating rapidly, owing primarily
to development pressures. Consequently, future project costs are likely
to rise with higher land costs. Similarly, while land acquisition costs
for CERP projects are included as part of the total estimated project
costs, thus far, the state has acquired only 54 percent of the land
needed for CERP projects, at a cost of $1.4 billion. An additional
178,000 acres have yet to be acquired; the cost of these purchases is
not yet known and is therefore not fully reflected in the cost of CERP
and overall restoration costs.
* The cost of using new technologies for the restoration effort is
unknown. The Congress authorized pilot projects in 1999 and 2000 to
determine the feasibility of applying certain new technologies for
storing water, managing seepage, and reusing treated wastewater. While
the pilot projects have been authorized, the cost to construct or
implement projects based on the results of the pilot projects is not
yet known.
In conclusion, Mr. Chairman, our review of the South Florida Ecosystem
restoration effort shows that the some progress has been made in moving
the restoration forward. However, the achievement of the overall goals
of the restoration and ultimately improvements in the ecological
condition of Everglades National Park depends on the effective
implementation of key projects that have not progressed as quickly as
was expected. Moreover, the shortfall in federal funding has
contributed to some of these delays and at the same time the costs of
the restoration continues to increase and we believe could rise
significantly higher than the current estimate of almost $20 billion.
In light of these concerns, we believe that restoring the South Florida
Ecosystem and Everglades National Park, will continue to be a
significant challenge for the foreseeable future. This concludes our
prepared statement. We would be happy to respond to any questions you
may have.
GAO Contacts:
If you have any questions about this statement, please contact Anu K.
Mittal @ 202-512-3841 or mittala@gao.gov. Other contributors to this
statement include Sherry McDonald (Assistant Director) and Kevin Bray.
Footnotes:
[1] South Florida Ecosystem Restoration: Restoration is Moving Forward,
but Is Facing Significant Delays, Implementation Challenges, and Rising
Costs, GAO-07-520 (Washington, D.C.: May 31, 2007
[2] Representatives from the state's major industries, environmental
groups, and other stakeholders provide comments to the Task Force
through public meetings and forums.
[3] The original number of individual projects in CERP was 68. In
addition to these 68, CERP included 6 pilot projects and 3 proposed
feasibility studies. Since CERP's approval in 2000, the Corps and the
South Florida Water Management District have reorganized the projects
to group those that are logically connected into broader projects. For
example, several projects around Lake Okeechobee have been combined
into one project. At the time of our report, CERP consisted of 60
projects, but the total number of projects that make up CERP may
continue to change as implementation progresses and projects are added,
combined, divided into multiple parts or phases, or deleted.
[4] Although SFWMD is CERP's primary nonfederal sponsor, the Florida
Department of Environmental Protection as well as three county
governments and two American Indian tribes also serve as nonfederal
sponsors for portions of the plan.
[5] South Florida Ecosystem Restoration Task Force, Coordinating
Success: Strategy for Restoration of the South Florida Ecosystem,
Volume 2 (Miami, Fla.: July 31, 2000).
[6] Some projects have multiple components, and while the entire
project cannot be counted as completed, important components of it may
be finished. Unless all components of the project were complete, we
counted these projects as being implemented.
[7] The sources of water and levels of flood protection that must be
protected are those that were in existence on the date of WRDA 2000's
enactment--December 11, 2000.
[8] An agreement establishing interim goals was signed by the
Departments of the Army and the Interior and the state of Florida in
late April/early May 2007.
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