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Everglades Restoration: Federal Funding and Implementation Progress

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. Everglades Restoration: Federal Funding and Implementation Progress Charles V. Stern Specialist in Natural Resources Policy February 26, 2013November 18, 2014 Congressional Research Service 7-5700 www.crs.gov R42007 CRS Report for Congress Prepared for Members and Committees of Congressc11173008 Everglades Restoration: Federal Funding and Implementation Progress . Summary The Everglades is a unique network of subtropical wetlands in South Florida that is approximately half of its historical size, due in part to degradation from federal water projects. In 2000, Congress authorized a 30-year plan, termed the Comprehensive Everglades Restoration Plan Plan (CERP), for the restoration of the Everglades ecosystem in southern Florida. When originally originally authorized, it was estimated that CERP would cost a total of $8.2 billion and take approximately approximately 30 years to complete. More recent estimates indicate that the plan would take approximately 50 years to implement, and would cost $13.5 billionapproximately $1.63 billion more than originally thought, plus additional adjustments for inflation. Under CERP, the federal government (through the U.S. Army Corps of Engineers and the Department of the Interior) is required to fund half of the costs for restoration, with an array of state, tribal, and local agencies paying the other half. In addition to activities under CERP, a number of otherongoing federal and state efforts that pre-date CERP (known collectively as “non-CERP” nonCERP,” or “Foundation” activities) also contribute to Everglades restoration. While non-CERP efforts are technically not included in CERP, the two sets of activities are widely viewed as complementary. Since passage of CERP in 2000, the federal investment in the Everglades restoration has increased. As of the end of FY2012FY2014, the federal government had provided more than $1 billion in funding for CERP, with the state providing matching funds for CERP projects, as well as advanced funding for land acquisition and construction for expected future CERP projects. Federal funding for non-CERP activities (most of which pre-date CERP) has also continued over this time period. These efforts Together with CERP, all Everglades restoration efforts are estimated to totalhave totaled more than $3 billion as of 20115 billion since FY1993. While estimates of nonfederal (i.e., state) funding contributions to CERP and related restoration efforts vary widely depending on what methodology is employedand assumptions are used, most agree that, to date, the Statestate of Florida has spent significantly more on Everglades restoration than has the federal government. Progress has been made on a number of Everglades restoration projects, although overall progress to date has fallen short of initial goals. As of 2012, the late 2014, eight CERP projects were authorized, the majority of the land necessary for restoration projects under CERP had been acquired, and significant progress has been made on non-CERP activities (including improved water deliveries to Everglades National Park). Construction has alsohad been initiated on four CERP projects, and studies have been completed or are underway for a number of other CERP projects. Despite this progress, some projects have seen setbacks in the form of schedule delays and cost escalations. Additionally, new or revised authorizations will be required for many projects to go forward. These impediments may have the effect of further delaying restoration effortsother major CERP projects, such as the Central Everglades Planning Project (CEPP), to go forward. These and other impediments have been noted as possible causes of further delays to restoration benefits in the future. Reductions to state funding and the lack of new Everglades CERPenactment of four new CERP project authorizations in the Water Resources Development Act have Water Resources Reform and Development Act (WRRDA, P.L. 113-121) in June 2014 have increased attention to the congressional role in Everglades facilitating Everglades restoration. Debate and resolution of these issues has implications, both for ecosystem restoration in the Everglades and for large-scale restoration initiatives elsewhere. This report provides information on federal appropriations funding for Everglades restoration and provides a brief summary of accomplishments and potential challenges for Everglades restoration.. It also provides an overview of the federal role in Everglades restoration, including funding structures and major accomplishments to date. c11173008 Congressional Research Service Everglades Restoration: Federal Funding and Implementation Progress . Contents Introduction...................................................................................................................................... 1 Everglades Projects: CERP and Non-CERP .................................................................................... 1 Funding for Everglades Restoration ................................................................................................ 2 DOI Funding.............................................................................................................................. 3 U.S. Army Corps of Engineers Funding .................................................................................... 43 Funding Trends .......................................................................................................................... 4 Comparing Federal and State Funding ...................................................................................... 5 Implementation Progress/Challenges .............................................................................................. 6 Accomplishments Status and Accomplishments .......................................................................................................................... 7 Selected Non-CERP Accomplishments 6 Foundational Elements: Land Acquisition and Pilot Efforts, and Non-CERP Projects .......................................................................................................... 7 Generation 1 CERP Projects ............................................................................................... 8 Generation 2 CERP Projects ............................................................................................... 8 Generation 3 CERP Projects .......................................................................................... 7..... 8 Challenges ................................................................................................................................. 79 Figures Figure 1. Estimated Federal Everglades Restoration Expenditures Corps/DOI Funding for Everglades Restoration .............................................................. 5 Tables Table 1. Corps and DOI Funding for Everglades Restoration, FY2010-FY2015 ............................... 3 Table 2. Corps and DOI Funding for Everglades Restoration, FY2007-FY2015 .......................... 311 Contacts Author Contact Information............................................................................................................. 8 12 c11173008 Congressional Research Service Everglades Restoration: Federal Funding and Implementation Progress . Introduction The Florida Everglades is a unique network of subtropical wetlands that is now half its historical size. The federal government has had a long history of involvement in the Everglades, beginning in in the 1940s with the U.S. Army Corps of Engineers (hereinafter referred to as the Corps) the Corps) constructing flood control projects that shunted water away from the Everglades to make way for agricultural and urban development. Additional factors, including nonfederal development efforts, have contributed to the shrinking and altering of the Everglades ecosystem. In recognition of the unique ecosystem services provided by the Everglades, federal and state agencies began ecosystem restoration activities in the Everglades in the early 1990s. However, it was not until 2000 that federal and state restoration activities were coordinated under an integrated plan. In the Water Resources Development Act of 2000 (WRDA 2000, P.L. 106-541), Congress approved the Comprehensive Everglades Restoration Plan (CERP) as a framework for Everglades restoration and authorized an initial round of projects by the Corps and the Department of the Interior (DOI). According to the process, additional Everglades projects are to be presented to Congress for authorization as their planning is completed. In WRDA 2007 (P.L. 110-114), four additional projects were authorized. As of early 2013, four other projects had feasibility studies completed but were not yet authorizedTo date, eight CERP projects have been authorized, including one in WRDA 2000, three in WRDA 2007 (P.L. 110114), and four in the Water Resources Reform and Development Act of 2014 (WRRDA, P.L. 113121). Pilot projects authorized in WRDA 1999 and WRDA 2000 have also been installed. Other projects are undergoing study and pending authorization. To date, some progress has been made on Everglades restoration, but much more time and funding will be required to complete restoration as currently contemplated. Previously, some have highlighted the overall slow pace of restoration as an argument for expedited support. Conversely, others have argued that restoration activities in the Everglades already receive too much funding relative to other priorities, and that the level of support provided for these activities is not appropriate appropriate given larger fiscal concerns and the uncertainty of results. Stakeholders involved with planning other large-scale restoration initiatives look to the Everglades as a model and a test case. Some believe the types of activities funded and the level of funding for the Everglades may set a precedent for other restoration initiatives, and should thus be a priority. Others assert that Everglades restoration efforts have been disproportionately favored relative to similar projects, and should be subject to the same cost-cutting efforts as other areas of the budget. This report summarizes historical and current funding trends for Everglades restoration, with a focus on federal funding totals and issues forand recent issues facing Congress. It also summarizes some provides a brief summary of some of the major accomplishments in Everglades restoration since the enactment of CERP in 2000, as well as ongoing challenges facing the effort. Everglades Projects: CERP and Non-CERP Federal CERP funding was first authorized in WRDA 2000, with a focus on increasing storage and treatment of of excess water in the rainy season to provide more water during the dry season for the ecosystem and for urban and agricultural users. It is estimated that CERP will take more than 50 years and As of 2010, it was estimated that CERP will c11173008 Congressional Research Service 1 Everglades Restoration: Federal Funding and Implementation Progress . take more than 50 years and $13.5 billion to complete.1 The federal government is expected to pay half of CERP’s costs, and 1 This figure represents the estimated cost to the federal government in October 2009 dollars according to the Corps. (continued...) Congressional Research Service 1 Everglades Restoration: Federal Funding and Implementation Progress pay half of CERP’s costs, and an array of state, tribal, and local agencies (i.e., nonfederal sponsors) will pay the other half. This same cost -share is expected to apply to all project operation and maintenance costs. WRDA 2000 authorized initial projects (including pilots), established federal/nonfederal cost-sharingcostsharing ratios for Everglades restoration, and created a process for additional projects to be authorized as part of the CERP framework. WRDA 2007 authorized an additional three CERP projects. Four other projects have completed the study phase and are ready for construction authorization. The status of these in 2012 and were authorized for construction in WRRDA 2014, while two other CERP projects remained in the study phase and were thus not yet authorized. The status of these projects is discussed later in this report. Federal Everglades restoration activities not authorized under CERP are often referred to as “nonCERP” or “Foundation” activities. This includes, among other things, work related to the Modified Water Deliveries Project, which is expected to augment flows to Everglades National Park. Depending on how broadly this category is defined, it can encompass a wide variety of Everglades restoration activities undertaken by multiple agencies.2 Most (but not all) of the authorities for this funding predate the enactment of CERP in 2000. However, similar to CERP funding, most funding for non-CERP Everglades restoration is provided to the Department of the Interior and the Corps of Engineers. Thus, the Corps and DOI are often the focal point for funding debates surrounding the Everglades. Funding for Everglades Restoration Federal funding for Everglades restoration is largely provided through DOI and the Corps, and is concentrated in two appropriations bills—the Interior and Environment appropriations bill (which provides funds to DOI) and the Energy and Water Development appropriations bill (which provides funds to the Corps). Additionally, some funding in other appropriations bills is sometimes sometimes noted as contributing to Everglades restoration, but is not formally tracked under the Administration’s non-CERP totals.3 Appropriations laws and conference reports typically do not specify appropriations levels for most Everglades restoration activities. Rather, the Administration’s budget request identifies restoration funding totals for the Administration’s request and for the previous fiscal year.4 Actual Although the Administration’s budget request identified restoration funding totals for CERP and non-CERP in the budget request, appropriations laws and conference reports typically do not specify appropriations levels for Everglades restoration activities (including CERP and nonCERP totals). Rather, actual expenditure information for previous appropriations is tracked by the South Florida Ecosystem Restoration Task Force. A summary of funding for both CERP and non-CERPnonCERP activities within DOI and the Corps for recent years is provided below in Table 1. (...continued)1 This figure represents the estimated cost to the federal government in October 2009 dollars according to the Corps. See U.S. Army Corps of Engineers, Comprehensive Everglades Restoration Plan, 2010 Report to Congress. Available at http://www.sfrestore.org/documents/index.html. Hereinafter 2010 CERP Report to Congress. More recent estimates are not available. 2 In addition to the Corps and DOI, the South Florida Ecosystem Restoration Task Force also tracks funds that are provided to the National Oceanic and Atmospheric Administration, the U.S. Environmental Protection Agency, and the U.S. Department of Agriculture, among others. However, in its annual budget request, the Administration typically only tracks “nonCERP” funding for the Corps and DOI. 3 As previously noted, some funds not discussed in this report are tracked under the “non-CERP” heading because of their contribution to Everglades restoration. This includes funds for the Environmental Protection Agency (also in the Interior and Environment appropriations bill), the National Oceanic and Atmospheric Administration (Commerce, Justice, and State, the Judiciary, and Related Agencies appropriations bill), and the U.S. Department of Agriculture (U.S. Department of Agriculture and Related Agencies appropriations). For additional information, see crosscut budget documents available at http://www.sfrestore.org/documents/index.html. 4 Thus, these totals often lag behind final enacted appropriations. Congressional Research Service 2 Everglades Restoration: Federal Funding and Implementation Progressnon-CERP” funding for the Corps and DOI. For additional information, see crosscut budget documents available at http://www.sfrestore.org/documents/index.html. c11173008 Congressional Research Service 2 Everglades Restoration: Federal Funding and Implementation Progress . Table 1. Corps and DOI Funding for Everglades Restoration, FY2010-FY2015 (thousands of dollars) FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 Proposed DOI 79,424 70,600 99,884 66,355 70,452 62,000 CERP 8,449 8,401 8,347 7,883 8,376 8,000 70,975 62,199 91,537 58,472 62,076 54,000 Corps 167,364 131,066 142,486 96,008 47,616 66,000 CERP 119,966 79,860 57,886 76,212 38,499 61,000 47,398 41,108 84,600 19,796 9,117 5,000 246,788 201,666 242,370 158,683 118,068 128,000 Non-CERP Non-CERP Total Source: FY2015 Congressional Budget Justifications for the U.S. Department of the Interior and Army Corps of Engineers and the South Florida Ecosystem Restoration Crosscut Budget Report for FY2014. Notes: “ARRA” represents funding under the American Recovery and Reinvestment Act (P.L. 110-5). DOI Funding Funding within the Interior and Environment bill is allotted to four agencies within DOI: the National Park Service (NPS), the Fish and Wildlife Service (FWS), the U.S. Geological Survey (USGS), and the Bureau of Indian Affairs (BIA). Within these agencies, two types of Everglades funding are often highlighted: funding for CERP and funding for the Modified Waters DeliveryWater Deliveries Project for Everglades National Park (also known as the “Mod Waters” project). The latter is a non-CERP project that has received significant attention from Congress, and that aims to improve water deliveries to Everglades National Park by removing barriers in and around the Tamiami Trail. DOI’s CERP funding is ). 5 Funding for CERP is typically provided to NPS and FWS, while funding for the Modified Waters deliveries project is provided to NPS.project has been provided to NPS in recent years.3 Although Mod Waters is technically a non-CERP project, it is widely considered to be a keystone project for Everglades restoration, including CERP. DOI funding totals for FY2006-FY2013with an important nexus to CERP. Recent DOI funding totals are shown in Table 1. The FY2013FY2015 Administration request for Everglades funding included $71was $62 million in DOI funding for Everglades restoration, including an increase of approximately $8 million for the Modified Waters Delivery Project. This funding has been provided directly to the Department of the Interior since FY2009.6 Table 1. Corps and DOI Funding for Everglades Restoration (thousands of dollars) FY2010 FY2011 FY2012 FY2013 Proposed 23,264 79,424 70,600 99,831 70,748 9,459 - 8,449 8,401 8,347 8,392 78,972 119,403 23,264 70,975 62,199 91,484 62,356 [13,330] [14,299] [60.000] [21,052] [8,400] [8,000] [7,987] [8,000] Corps 157,553 112,694 115,712 95,412 167,364 131,066 142,486 153,000 CERP 64,000 64,000 83,640 87,896 119,966 79,860 57,886 91,000 Non-CERP 93,553 48,694 32,072 7,516 47,398 41,108 84,600 62,000 [35,000] [9,840] - - - - - - 232,705 200,049 244,574 118,676 246,788 201,666 242,317 223,748 FY2007 FY2008 FY2009 75,152 87,355 128,862 8,481 8,383 Non-CERP 66,671 [DOI Mod Waters] DOI CERP [Mod Waters] Total ARRA Source: Congressional Budget Justifications for the U.S. Department of the Interior and Army Corps of Engineers, FY2006-FY2013. Notes: DOI funding includes funding for the National Park Service, the Fish and Wildlife Service, the U.S. Geological Survey, and the Bureau of Indian Affairs. “ARRA” represents funding under the American Recovery and Reinvestment Act (P.L. 110-5). Mod Waters totals represent a subset of non-CERP funding. 5 The Modified Waters Deliveries Project is an ecosystem restoration project in south Florida designed to improve water delivery to Everglades National Park. 6 Prior to FY2009, this funding was provided both to the Corps and to DOI. Congressional Research Service 3 Everglades Restoration: Federal Funding and Implementation Progress for Everglades restoration, including $8 million for CERP projects and $54 million for non-CERP projects. No funding was requested for the Mod Waters project, as the initial construction of its 1-mile bridge component was completed.4 U.S. Army Corps of Engineers Funding Funding for Corps Everglades restoration projects in the Energy and Water Development bill is listed under project-level headings inwithin the Corps Construction account. Currently, these projects projects include the Central and Southern Florida Project, Kissimmee River Restoration, project, and Everglades and South Florida Restoration. Historically, funding was also included for two other areas, Florida Keys Water Quality Improvement and the Modified Waters Deliveries Project.7 Corps 3 4 c11173008 Originally, this funding was provided to the Corps. For additional information on this project, see the “Challenges” section at the end of this report. Congressional Research Service 3 Everglades Restoration: Federal Funding and Implementation Progress . other areas, Florida Keys Water Quality Improvement and Modified Waters Deliveries Project.5 Corps funding is directed toward planning and construction of projects authorized under CERP and and other authorities. Within Corps totals, funding for CERP is considered a key benchmark for Everglades restoration commitment and progress. Table 1 shows funding totals for the Corps in Corps Everglades restoration in recent fiscal years and the FY2012 President’s request. Funding Trends Federal funding totals for restoration activities in the Everglades ecosystem have been collected since the early 1990s. Overall, since FY1993, the federal investment in Everglades restoration is estimated to have exceeded $4 billion, and has increased in recent years. From FY1993 through FY2000, federal appropriations for Everglades restoration activities totaled more than $1.2 billion. More recently, from the enactment of CERP in FY2000 through FY2012, total federal funding exceeded $3.1 billion, with more than $900 million of that total going to federal CERP projects. Overall, average federal funding since the enactment of CERP has increased, from approximately $159 million per year before enactment of CERP to $259 million per year since CERP was enacted.8 Figure 1 shows all Everglades funding since 2001, breaking these totals down between CERP and non-CERP funding. 7 As noted above, in recent years Mod Waters funding has been provided solely to DOI. Florida Keys Water Quality Improvement was completed in FY2009. 8 CRS analysis of departmental data for FY1993-FY2011. These totals are for Corps and DOI restoration work only. Congressional Research Service 4 Everglades Restoration: Federal Funding and Implementation Progress Figure 1. Estimated Federal Everglades Restoration Expenditures 400 350 Funding ($- millions) 300 250 Federal Non-CERP 200 Federal CERP 150 100 50 0 Fiscal Year Source: Estimated Federal CERP Expenditures. Notes: FY2010 includes additional funding under P.L. 111-5 (ARRA). Some totals for non-CERP funding may not match with previous totals due to inconsistencies in reported funding levels between the President’s budget and the crosscut budget documents. Comparing Federal and State Funding Exact comparisons between federal and state funding levels are complicated for a number of reasons. As previously noted, CERP funding is to be cost-shared equally between the federal government and nonfederal entities in the state of Florida. Many view the status and amount of federal CERP funding relative to nonfederal funding for this initiative as an important indicator of the federal government’s commitment to Everglades restoration. While the state has invested considerable funding in CERP, much of this funding is for land acquisition related to the expected “footprints” of future CERP projects. Thus, exact comparisons between federal and state funding levels are complicated. Nonfederal CERP expenditures are ostensibly tracked in several reports, including a crosscut budget report prepared annually by the South Florida Ecosystem Restoration Task Force. However, this funding is not formally “credited” by the Corps toward CERP project cost shares until a number of requirements have been met. These requirements include completion of a project implementation report (PIR) and authorization for construction of the project by Congress, as well as signing of a project partnership agreement, or PPA. Thus, although some may reference large nonfederal contributions toward CERP, the proportion of these expenditures that have been formally credited toward CERP is actually much smaller. Indeed, it is possible Congressional Research Service 5 Everglades Restoration: Federal Funding and Implementation Progress that, depending on subsequent actions of the Corps and Congress, some of the aforementioned funds will never be credited under CERP. The magnitude of the difference between initial state expenditures and the amounts actually credited under CERP results in a wide range of reported state funding levels for CERP. For instance, the State of Florida’s annual crosscut budget previously estimated that from 2001 to 2011, it spent approximately $3 billion for its CERP costs. However, actual credited expenditures from federal and state entities have been noted by the Corps to be roughly even to date, and a 2012 National Research Council (NRC) review noted that all state expenditures for authorized CERP projects (i.e., projects authorized in WRDA 2000 and WRDA 2007) only exceeded federal expenditures by $270 million as of 2011.9 In its 2012 report to Congress, the NRC estimated that another $584 million in state expenditures would be available for crediting if the next “round” of CERP authorized projects is authorized. The total amount expended by the State of Florida that may be credited to all future CERP projects ranges widely, depending on which assumptions are used.10 Future legislative actions, including project authorizations, would be an important factor in determining the exact amount eligible for cost shares. (For more information, see “Challenges”, below.) Implementation Progress/Challenges Congress has mandated several major reports that include detailed evaluations of Everglades restoration. NRC reviews of Everglades restoration are published biennially and a report was most recently published in 2012; CERP reports to Congress are published every five years and a report was most recently completed in 2010.11 Both reports outline accomplishments and challenges related to CERP and non-CERP projects. Since passage of CERP in 2000, progress has been made on Everglades restoration for both CERP and non-CERP projects, including construction of pilot projects and initiation of several other construction projects. As discussed below, some of the non-CERP “Foundation” projects are nearing completion. Additionally, in recent years many have noted an increase in momentum for Everglades restoration as several projects moved from the planning to construction phase. Most of these projects have seen increases in federal appropriations. In addition to progress on construction, baseline information and processes have also been established, the scientific understanding of many of the uncertainties associated with Everglades restoration has improved, and a programmatic structure is in place to facilitate future projects. Selected CERP and nonCERP accomplishments as of 2013 are noted below. 9 Committee on Independent Scientific Review of Everglades Restoration, National Research Council, Progress Toward Restoring the Everglades: The Fourth Biennial, Washington, DC, 2012, http://www.nap.edu/catalog.php? record_id=13422. Hereafter Fourth Biennial Review. 10 A number of potential CERP projects benefited from land purchases by the State of Florida but have yet to receive a Chief’s Report or be authorized by Congress. Correspondence with Steve Kopecky, Corps, May 11, 2011. 11 See footnotes 1 and 9. Congressional Research Service 6 Everglades Restoration: Federal Funding and Implementation Progress Accomplishments12 • Purchase of more than 60% of total land required under CERP. • Design and installation of four CERP pilot projects authorized in WRDA 2000. • Initiation of construction on the Picayune Strand restoration project (authorized in WRDA 2007), which is expected to restore 55,000 acres of wetlands. The first phase of this project is expected to be complete in 2013. • Initiation of construction on the Site 1 Impoundment Project (authorized in WRDA 2007), which is expected to provide for 13,280 acre-feet of water storage and prevent saltwater intrusion. The first phase of this project is expected to be completed in 2013. • Initiation of construction for the C-44 Reservoir and Stormwater Treatment Area (STA) component of the Indian River Lagoon-South Project (authorized in WRDA 2007), which is expected to store approximately 50,000 acre-feet of stormwater. This project is expected to be completed in 2018. • Completion of PIRs by the Corps for four projects: the C-111 Spreader Canal; Biscayne Bay Coastal Wetlands; C-43 West Basin Storage Reservoir, and Broward County water preserve areas. • Initiation of expedited construction by the State of Florida on four projects: Loxahatchee River Watershed, Lakeside Ranch STA, C-111 Spreader Canal, and Biscayne Bay Coastal Wetlands. Selected Non-CERP Accomplishments • Initiation of construction of the 1-mile bridge component of the Mod Waters Project, which is expected to improve water deliveries to Everglades National Park. This project is expected to be completed in 2013. • Completion of three of four phases of the Kissimmee River Restoration Project, which is expected to reconnect the river with its historical flood plain and better restore more natural flows. Challenges Outside reviewers, including the NRC, have noted the relatively slow pace of Everglades restoration compared to the ambitious timetables laid out in original program documents.13 These observers have acknowledged that while there has been some progress in the Everglades, implementation of actual restoration projects receiving federal and state funds has been considerably slower than expected. At the same time, estimated costs for Everglades restoration have gone up significantly. While CERP was originally estimated to cost a total of $8.2 billion (2000 dollars) in funding over 30 years, more recent estimates indicate that CERP will cost $13.5 12 Accomplishments noted are as of 2013. See for example, Committee on Independent Scientific Review of Everglades Restoration, National Research Council, Progress Toward Restoring the Everglades: The Third Biennial Review, Washington, DC, 2010, pp 64-68, https://download.nap.edu/catalog.php?record_id=12988. Hereinafter referred to as the Third Biennial Review. 13 Congressional Research Service 7 Everglades Restoration: Federal Funding and Implementation Progress billion (2009 dollars), and have extended the expected timeline for implementation to 50 years.14 Stated reasons for these cost and schedule changes include inflation, changes to project design, and funding streams that were less than originally expected. As of 2013, no major CERP project receiving federal funds had been completed, and the majority of projects described in earlier plans had yet to be initiated. Many of the projects envisioned in earlier program documents are either unauthorized, or else require amendments to their original authorization to proceed further.15 As of 2013, 10 of the 45 project implementation reports expected under CERP had been finalized or completed in draft form. Of these 10 projects, only four have been authorized by Congress and have had construction initiated. In several cases, CERP projects have yet to be authorized by Congress, but nonfederal construction work has begun. Another challenge going forward for Everglades restoration may be the status of potential new project authorizations under the Water Resources Development Act (WRDA). Originally, CERP envisioned regular enactment of WRDAs and associated inclusion of CERP projects as they were studied and recommended to Congress. However, since 2000, one WRDA has been enacted (2007). Absent new authorizations, there is no clear way for federal work on Everglades restoration to proceed, and construction may slow considerably from its current pace as existing projects wind down and the Corps is not able to match prior state expenditures for unauthorized projects. Such a scenario would likely delay CERP further relative to the current expected timeline. Other challenges to Everglades restoration have been noted by outside reviewers and others. These challenges include ongoing issues associated with water quality in the Everglades and south Florida, the adequacy of some restoration efforts in recreating historical hydrologic conditions, and ongoing degradation of species and ecosystems in south Florida, which has in some cases accelerated in recent years. Author Contact Information Charles V. Stern Specialist in Natural Resources Policy cstern@crs.loc.gov, 7-7786 14 According to the Corps, the increased cost estimates since 2000 are attributed to (1) $3.63 billion in inflation adjustments; and (2) $1.63 billion in price /scope changes. 15 While WRDA 2000 conditionally authorized 10 projects, these projects will reportedly need to have their authorizations amended due to substantive changes in project scope. Congressional Research Service 8 FY2015 President’s request. For FY2014, the enacted amount for Corps Everglades restoration work for FY2014 was $47.6 million, and the FY2015 requested level for the Corps was $66 million. This funding level was below previous years due to a number of factors, including the availability of unobligated funds from prior years, the drawdown of needed funding for authorized, ongoing projects, and the lack of new and modified project authorizations prior to the enactment of WRRDA in June 2014. Funding Trends The federal government has funded restoration of the Everglades in some form since at least the early 1990s. Overall, from FY1993 to FY2014, the total federal investment in Everglades restoration (including agencies other than the Corps and DOI) is estimated to have exceeded $5 billion. From FY1993 through FY2000, prior to the enactment of CERP, federal appropriations for Everglades restoration activities totaled more than $1.2 billion. More recently, since the enactment of CERP (i.e., since FY2001), total federal funding from all agencies is estimated to have exceeded $4 billion, with Corps and DOI funding for Everglades restoration accounting for more than $3.15 billion of that amount.6 As previously noted, Everglades funding for the Corps and DOI typically receives the most attention from Congress. Figure 1 shows Everglades funding since 2001 for those two agencies, including CERP and non-CERP totals. As shown in that figure, while overall funding for Everglades restoration by these agencies has remained somewhat constant since the enactment of CERP, the distribution between CERP and non-CERP funding has changed over time. CERP projects gradually increased from FY2001 to FY2010 (including ARRA). Over the same period, funding for non-CERP projects (such as Mod Waters) decreased from their earlier levels. Finally, over the last two years, overall spending in both categories has decreased. Total funding for CERP projects from FY2001 to FY2014 is estimated to have exceeded $1 billion. Fluctuations in Everglades federal funding can be explained by a number of factors. For instance, after authorization in FY2007, federal funding for “Generation 1” CERP projects increased as project construction commenced, and began declining in FY2012. The subsequent decrease in funding for CERP beginning at that time was a combined result of “Generation 1” CERP Projects (i.e., projects authorized in WRDA 2007) winding down certain construction activities while “Generation 2” projects (i.e., projects with completed project implementation reports that were proposed and eventually authorized in WRRDA 2014) were awaiting authorizing legislation before they could be funded. For non-CERP projects, more recent decreases in funding can in part be attributed to the completion of the initial phases of construction on the Mod Waters project. 5 As noted above, in recent years Mod Waters funding has been provided solely to DOI. Florida Keys Water Quality Improvement was completed in FY2009. 6 CRS analysis of departmental data for FY1993-FY2014. c11173008 Congressional Research Service 4 Everglades Restoration: Federal Funding and Implementation Progress . Figure 1. Corps/DOI Funding for Everglades Restoration 400 350 Funding ($- millions) 300 250 Federal Non-CERP 200 Federal CERP 150 100 50 0 Fiscal Year Source: CRS estimates based on Corps and DOI budget documents from FY2001-FY2015. Notes: Does not include agency funding for non-CERP activities outside of the Corps and DOI. FY2010 includes additional funding under P.L. 111-5 (ARRA). Comparing Federal and State Funding Many view the status and amount of federal CERP funding relative to nonfederal funding for this initiative as an important indicator of the federal government’s commitment to Everglades restoration, and there is widespread agreement that the state has invested more funding in CERP than has the federal government. However, comparisons between federal and state funding levels for Everglades restoration are complicated for a number of reasons. As previously noted, CERP funding is to be cost-shared equally between the federal government and nonfederal entities in Florida. Notably, much of the nonfederal funding for Everglades restoration efforts has been for land acquisition related to the expected “footprint” of future CERP projects, rather than construction funding for federal projects that have been authorized by Congress. That is, state CERP funding has anticipated or accelerated multiple Everglades restoration projects that have yet to be federally approved.7 7 Funding is not formally “credited” by the Corps toward CERP project cost-shares until a number of requirements have been met. These requirements include completion of a project implementation report (PIR) and authorization for construction of the project by Congress, as well as signing of a project partnership agreement, or PPA. c11173008 Congressional Research Service 5 Everglades Restoration: Federal Funding and Implementation Progress . Although some reference large nonfederal contributions toward CERP, the proportion of these expenditures that have been formally credited toward CERP is actually much smaller. Indeed, it is possible that, depending on subsequent actions of the Corps and Congress, some of the aforementioned nonfederal funds will never be credited to federal CERP projects. Thus, the size, scope, and priority of new federal CERP projects and their relation to previous state expenditures receives significant attention, and may in some cases be a matter of disagreement. Differences between initial reported state expenditures and the amounts actually credited under CERP result in a wide range of state funding levels being attributed to Everglades restoration. For instance, in its annual crosscut budget the South Florida Ecosystem Restoration Task Force previously estimated that from 2001 to 2011, it spent approximately $3 billion on CERP, or considerably more than the federal government spent over that time. However, actual credited state and federal expenditures over the same period were comparable. In recent years, the state of Florida’s funding on CERP has decreased due to a number of factors, including a decline in state tax revenues and a focus on other aspects of Everglades restoration, such as funding for projects under its Restoration Strategies Regional Water Quality Plan, which is intended to address EPA narrative and numeric nutrient criteria in the Everglades.8 It is unclear whether state funding for CERP will return to previous levels in the future. Previous estimates indicated that approximately $584 million in previous state expenditures would be “available” for crediting when the “Generation 2” projects were authorized by Congress (as occurred in June 2014). Assuming no major influx of new funding by the state of Florida in the near future, the status of federal authorizing legislation for subsequent Everglades restoration projects may receive added attention. Implementation Progress/Challenges Congress has mandated several reports that regularly evaluate Everglades restoration. Pursuant to congressional direction, the National Research Council (NRC) publishes reviews of Everglades restoration biennially, with the most recent report published in 2014.9 Separately, a report to Congress focusing specifically on CERP is published every five years, with the most recent report completed in 2010.10 Both reports outline accomplishments and challenges related to both CERP and non-CERP projects. Status and Accomplishments Since passage of CERP in 2000, progress has been made on Everglades restoration for both CERP and non-CERP projects. Significant actions have included the construction of pilot projects, the completion of studies, and the initiation of several construction projects (including completion of the initial phases of some projects). As discussed below, some of the non-CERP “foundation” projects are nearing completion, and some Generation 1 CERP projects are expected 8 These efforts, which began in 2012, are being undertaken in response to a court-ordered Amended Determination by the EPA. 9 Committee on Independent Scientific Review of Everglades Restoration, National Research Council, Progress Toward Restoring the Everglades: The Fifth Biennial Review, Washington, DC, 2014. 10 2010 CERP Report to Congress. c11173008 Congressional Research Service 6 Everglades Restoration: Federal Funding and Implementation Progress . to be completed in the near future. In addition to progress on construction, baseline information and processes have also been established, and the scientific understanding of many of the issues associated with Everglades restoration has improved. Tangible ecosystem benefits resulting from progress to date are for the most part yet to be realized or noted. In many cases, these benefits are expected to lag several years behind project construction and restoration of hydrologic conditions, and are expected to require extensive monitoring and adaptive management to confirm and refine. Selected CERP and non-CERP accomplishments as of 2014 are discussed below. Foundational Elements: Land Acquisition and Pilot Efforts, and Non-CERP Projects As noted above, as of 2014, Everglades restoration had achieved several milestones. Major achievements included accomplishment of several foundational steps required for the eventual completion of larger restoration projects. This includes the purchase by nonfederal project sponsors of most of the land expected to be required for CERP projects (a necessary first step in project construction by the Corps). As discussed previously, many of these projects are expected to be credited toward the nonfederal cost-share for individual projects. Early pilot projects that will influence the eventual prioritization and construction of larger CERP projects are also largely completed. Specifically, design and installation of six pilot projects authorized in WRDA 1999 and WRDA 2000 have taken place in recent years. Examples include Aquifer Storage and Recovery (ASR) Pilot projects, authorized in WRDA 1999 and WRDA 2000, which assessed the feasibility of this technology at specific sites as they applied to Everglades restoration. Based on the findings from these projects (published in 2013), ASR is expected to be among the options considered for future water storage projects in South Florida. Other projects are achieving benefits already and may be added to in future years. A pilot groundwater seepage barrier to the southeast of the Mod Waters project was completed and has been found to be successful in blocking subsurface migration of groundwater. This pilot project may be expanded in the future. As previously noted, non-CERP projects are a key part of Everglades restoration that pre-date CERP and are therefore in several cases more established than CERP projects. Some non-CERP accomplishments as of 2013 included the completion of the Florida Keys Water Quality Improvement Project, as well as the NPS-constructed 1-mile bridge component of the Modified Water Deliveries project, which may be expanded in the future.11 Another major restoration project that pre-dated CERP, the Kissimmee River Project (authorized in 1992 and initiated in 1999), was nearing completion. Some outside observers have noted that this project has already resulted in significant benefits that demonstrate the potential for planned CERP projects.12 Another project, the Seminole Big Cypress Reservation Water Conservation Plan Critical Project, was expected to be complete by 2015. 11 Another planning project, known as the Next Steps project, is being directed by the National Park Service and may eventually lead to the bridging of up to an additional 5.5 miles of the roadway. 12 Committee on Independent Scientific Review of Everglades Restoration, National Research Council, Progress Toward Restoring the Everglades, the Fourth Biennial Review, Washington, DC, 2014, p 102. Hereinafter referred to as the Fourth Biennial Review. c11173008 Congressional Research Service 7 Everglades Restoration: Federal Funding and Implementation Progress . Generation 1 CERP Projects Among the “Generation 1” CERP projects authorized in WRDA 2007 (Picayune Strand Restoration, Site 1 Impoundment, Indian River Lagoon-South or IRL-South, and the programmatic authority for Melaleuca Eradication that was authorized by Congress in WRDA 2000), as of 2014 planning/design was complete and construction was underway to some extent for all four projects. However, none of these projects is fully operational, and two of them (Picayune Strand and Site 1 Impoundment) may require additional congressional authorization in the near future. Generation 2 CERP Projects As previously noted, the Water Resources Reform and Development Act of 2014 (WRRDA 2014, P.L. 113-121) authorized four additional “Generation 2” CERP projects with completed project implementation reports: the C-111 Spreader Canal, Biscayne Bay Coastal Wetlands, C-43 West Basin Storage Reservoir, and Broward County Water Preserve Areas (WPAs). Congressional authorization of WRRDA will allow construction to be initiated on two new projects (C-43 Reservoir and Broward County WPAs) and will allow federal funding to flow toward two other projects (the C-111 Spreader Canal and Biscayne Bay Coastal Wetlands) whose construction was previously initiated by the state. At the time of their authorization, these four projects were expected to have a total cost of approximately $1.9 billion. Generation 3 CERP Projects Two other CERP projects, the Central Everglades Planning Project (CEPP) and the Loxahatchee River Watershed Project, were still in the study process when WRRDA 2014 was enacted and were thus not authorized for federal construction. These “Generation 3” projects are currently expected to be among the next CERP projects authorized for construction. CEPP in particular is widely considered to be a high-priority project for Everglades restoration, and its status has received considerable attention (see box below). The exact path to authorization for Generation 3 projects remains uncertain. Notably, pursuant to a new process established in WRRDA 2014, these projects could potentially be approved outside of the traditional authorization process for water resources projects.13 However, if this process is not available in the future, federal work on these projects could not take place until they receive full federal authorization. 13 For more information, see CRS Report R43298, Water Resources Reform and Development Act of 2014: Comparison of Select Provisions, by Nicole T. Carter et al. c11173008 Congressional Research Service 8 Everglades Restoration: Federal Funding and Implementation Progress . Central Everglades Planning Project The Central Everglades Planning Project (or CEPP) is an Everglades restoration study under the CERP framework that was initiated in 2011 by the Corps and the Department of the Interior, with the state of Florida. It is expected to recommend a suite of restoration projects in the central Everglades that would be a part of the broader CERP program aiming to address problems associated with the timing and distribution of freshwater flows in the central Everglades. CEPP was initiated due to a perceived need to prioritize restoration projects in the central portion of the Everglades ecosystem and enhance the prospects for Everglades restoration overall. To date, most restoration projects in the Everglades have focused on the periphery of the historic Everglades (rather than flows to the Central Everglades). CEPP would incorporate multiple CERP projects that were envisioned in the original 1999 plan, at a preliminary estimated cost of approximately $1.9 billion. Due to the interest in expediting CEPP’s authorization and construction, the Corps included this study among those investigations being undertaken as part of its National Planning Pilot Program. The aim of this effort is to complete feasibility studies in less time than is traditional for Corps investigations. Among other goals, studies initiated under the pilot are expected to adhere to a “3x3x3” rule, which means that feasibility studies will be completed with no more than $3 million in federal costs, in three years or less, and with the involvement of the three levels of Corps review (districts, divisions, and Headquarters). Initially, final approval of CEPP was envisioned for December 2013. However, the Chief’s Report was delayed and the project was not authorized with the other Generation 2 Everglades projects in WRRDA 2014. Thus, the status of CEPP moving forward will depend on how (and when) Congress approaches water resources project authorizations. Challenges Despite the achievement of some milestones, outside reviewers have frequently noted the relatively slow overall pace of Everglades restoration compared to the ambitious timetables laid out in original program documents in 1999 and, more recently, in 2011. These observers have pointed out that while there has been some progress toward restoring the Everglades, project implementation has been considerably slower than expected due to a number of factors, such as inadequate appropriations and delayed project authorization.14 At the same time, estimated costs for Everglades restoration have gone up. While CERP was originally estimated to cost a total of $8.2 billion, the 2010 update to these estimates indicated that it would take 50 years to complete, at a cost of $13.5 billion. According to the report, approximately $1.63 billion of the increased costs since the initial estimates could be attributed to price/scope changes (i.e., costs other than inflation).15 Individually, some CERP projects have been implemented more slowly than anticipated. As of 2014, no major CERP project receiving federal funds had been completed, and many of the projects and schedules envisioned in earlier program documents have proven to be inaccurate.16 Only a fraction of the project implementation reports originally envisioned under CERP have been finalized or completed in draft form. Further, of these, only eight projects have been authorized by Congress and four have had federal construction initiated.17 14 The lack of project authorizations in a WRDA appears to have occurred mostly during the 2012-2014 time period, since PIRs for three projects were completed and awaiting congressional authorization beginning in 2012. 15 According to the Corps, the increased cost estimates since 2000 are attributed to (1) $3.63 billion in inflation adjustments; and (2) $1.63 billion in price /scope changes. 16 While WRDA 2000 conditionally authorized 10 projects, many of these projects will need to have their authorizations amended due to substantive changes in project scope. 17 In several other cases, CERP projects have yet to be authorized by Congress, but nonfederal construction work has begun. c11173008 Congressional Research Service 9 Everglades Restoration: Federal Funding and Implementation Progress . Reviewers have noted that funding has been a challenge for authorized Everglades restoration projects, and this challenge could grow in future years. Recently authorized Generation 2 CERP projects will presumably have to compete for funds with ongoing Generation 1 and non-CERP projects, as well as with other water resource projects and appropriations priorities. Even if funding were to stay at current levels, project implementation could slow if funding is spread out among multiple projects. Attaining new state funding where required for project cost-shares may also be challenging in light of decreased funding and the shift toward other restoration priorities by the state of Florida in recent years. If these trends continue, the pace of implementation for some projects could slow further. Another challenge for Everglades restoration may be the status of potential new project authorizations under Water Resources Development Acts (WRDAs). CERP originally anticipated regular enactment of WRDAs and related Everglades restoration projects as they were studied and recommended to Congress. However, since 2000, only two WRDAs have been enacted, in 2007 and 2014. With enactment of WRRDA 2014, attention has largely shifted to the status of a large CERP project in the Central Everglades, the Central Everglades Planning Project, whose current path to authorization is unclear. Absent new authorizations, federal work on Everglades restoration could slow considerably if ongoing projects wind down and the Corps is not authorized to expend funds and match prior state expenditures for some projects (as was the case in recent years). Such a scenario would likely delay CERP further relative to the current expected timeline. Once construction projects are complete, ecological benefits associated with restoration are not expected immediately, and they will be dependent on a number of factors. While preliminary benefits in the early stages of project operations are possible, it will likely take time for projects to individually and collectively refine their operations and demonstrate maximum positive effects on species and the environment. In many cases, benefits may depend on the successful completion of one or more other projects, further highlighting the interconnected nature of the overall restoration effort. Thus, completion of project construction represents only one hurdle for Everglades restoration, with refined operations and monitoring of performance representing challenges in their own right. Other challenges to Everglades restoration have been widely noted. These challenges include ongoing issues associated with water quality in the Everglades and south Florida that are being addressed by the state, the adequacy of some restoration efforts in recreating historical hydrologic conditions, and ongoing degradation of species and ecosystems in south Florida, which has in some cases accelerated in recent years. The interaction of one or more of these factors may impact the operational status of federal restoration projects. For instance, although construction has been completed on the 1-mile bridge portion of the Mod Waters project, a number of other hurdles related to water quality, land easements, and operational planning must be overcome before the project can actually be operated to achieve the flows and benefits that were originally expected. Similar variables and complications could impact the implementation of other Everglades restoration projects in the future. c11173008 Congressional Research Service 10 . Table 2. Corps and DOI Funding for Everglades Restoration, FY2007-FY2015 (thousands of dollars) FY2007 FY2008 FY2009 ARRA FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 Proposed DOI 75,152 87,355 128,862 23,264 79,424 70,600 99,884 66,355 70,452 62,000 CERP 8,481 8,383 9,459 — 8,449 8,401 8,347 7,883 8,376 8,000 66,671 78,972 119,403 23,264 70,975 62,199 91,537 58,472 62,076 54,000 157,553 112,694 115,712 95,412 167,364 131,066 142,486 96,008 47,616 66,000 CERP 64,000 64,000 83,640 87,896 119,966 79,860 57,886 76,212 38,499 61,000 Non-CERP 93,553 48,694 32,072 7,516 47,398 41,108 84,600 19,796 9,117 5,000 232,705 200,049 244,574 118,676 246,788 201,666 242,370 158,683 118,068 128,000 Non-CERP Corps Total Source: CRS estimates based on Congressional Budget Justifications for the U.S. Department of the Interior and Army Corps of Engineers, FY2007-FY2015. Notes: DOI funding includes funding for the National Park Service, the Fish and Wildlife Service, the U.S. Geological Survey, and the Bureau of Indian Affairs. “ARRA” represents funding under the American Recovery and Reinvestment Act (P.L. 110-5). For FY2013, no funding breakdown for CERP and Non-CERP funding for the Corps was available. c11173008 CRS-11 Everglades Restoration: Federal Funding and Implementation Progress . Author Contact Information Charles V. Stern Specialist in Natural Resources Policy cstern@crs.loc.gov, 7-7786 c11173008 Congressional Research Service 12