	Background

The South Florida ecosystem covers about 18,000 square miles in 16  counties. 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 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. 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. In 2006, WHC adopted a  set of benchmarks that, when met, would lead to the Park’s removal from  the list. 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. 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. Nonetheless, some of the CERP projects  currently in implementation are significantly behind schedule. 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. 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. 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. 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. 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. 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. 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. 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. 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. Consequently, future project costs are likely to rise with  higher land costs.
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 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.