[Federal Register: November 12, 2003 (Volume 68, Number 218)]
[Rules and Regulations]               
[Page 64199-64249]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12no03-11]                         


[[Page 64199]]

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Part II





Department of Defense





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 Department of the Army, Corps of Engineers



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33 CFR Part 385



Programmatic Regulations for the Comprehensive Everglades Restoration 
Plan; Final Rule


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DEPARTMENT OF DEFENSE

Department of the Army, Corps of Engineers

33 CFR Part 385

RIN 0710-AA49

 
Programmatic Regulations for the Comprehensive Everglades 
Restoration Plan

AGENCY: Army Corps of Engineers, DOD.

ACTION: Final rule.

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SUMMARY: The Army promulgates this final rule to establish programmatic 
regulations for the Comprehensive Everglades Restoration Plan. Congress 
approved the Comprehensive Everglades Restoration Plan in section 601 
of the Water Resources Development Act of 2000, which was enacted into 
law on December 11, 2000. The Act requires the Secretary of the Army to 
promulgate programmatic regulations to ensure that the goals and 
purposes of the Comprehensive Everglades Restoration Plan are achieved. 
We have developed this final rule in response to that statutory 
requirement. The rule establishes processes and procedures that will 
guide the Army Corps of Engineers in the implementation of the 
Comprehensive Everglades Restoration Plan.
    Today's action completes a rulemaking that began on August 2, 2002 
with the publication of proposed regulations. The final rule contain a 
number of revisions that respond to public comments on the proposed 
regulations.

DATES: This rule is effective December 12, 2003.

FOR FURTHER INFORMATION CONTACT: Stu Appelbaum, Corps of Engineers, 
Jacksonville District, at the above address by telephone (904) 232-
1877, or by fax (904) 232-1434. You may also access the programmatic 
regulations Web page at: http://www.evergladesplan.org/pm/progr_regs.cfm/
.

SUPPLEMENTARY INFORMATION: 

I. Background

    Section 601(h)(3) of the Water Resources Development Act of 2000, 
Public Law 106-541 (114 Stat. 2688) (hereinafter ``WRDA 2000'') 
requires the Secretary of the Army, after notice and opportunity for 
public comment, to promulgate regulations to ensure that the goals and 
purposes of the Comprehensive Everglades Restoration Plan (the Plan) 
are achieved. These final regulations fulfill this requirement and 
establish the administrative structure for carrying out the Plan.
    The programmatic regulations establish a process: for the 
development of Project Implementation Reports, Project Cooperation 
Agreements, and Operating Manuals that will ensure that the goals and 
the objectives of the Comprehensive Everglades Restoration Plan (CERP) 
are achieved; to ensure that new information resulting from changes or 
unforeseen circumstances, new scientific or technical information or 
information that is developed through the principles of adaptive 
management contained in the Plan, and future authorized changes to the 
Plan will be integrated into the implementation of the Plan; and, to 
ensure the protection of the natural system consistent with the goals 
and purposes of the Plan, including the establishment of interim goals 
to provide a means by which the restoration success of the Plan will be 
evaluated throughout the implementation process.
    The programmatic regulations recognize that the Everglades are a 
critical national resource in which the public has an important 
interest. Restoration of the Everglades involves many complicated 
issues involving ecosystem restoration, other water-related needs of 
the region, novel scientific and technical information and technology, 
and adaptive management. The final regulations envision a comprehensive 
process to involve the public, and the agencies that represent them, in 
important decisions involved in implementing the project.
    In general, the programmatic regulations envision that the goals 
and purposes of the Plan will be achieved through the development of 
project-specific and system-wide measures. Project specific measures 
include but are not limited to Project Implementation Reports, Project 
Cooperation Agreements, Pilot Project Technical Data Reports, and 
Operating Manuals. The more generally applicable system-wide measures 
include, but are not limited to, the development of guidance memoranda, 
the Master Implementation Sequencing Plan, interim goals for evaluating 
the restoration success of the Plan, and interim targets for evaluating 
progress towards achieving other water-related needs of the region, 
including water supply and flood protection. The interim goals for 
evaluating the restoration success of the Plan and interim targets for 
other water-related needs are of special significance. They establish 
incremental targets to evaluate progress toward the expected level of 
performance of the Plan and are used to monitor overall progress toward 
meeting the goals and purposes of the Plan. Taken together, the project 
specific and system-wide measures form the foundation of the Plan and 
are critical to the successful restoration of the South Florida 
ecosystem.
    The South Florida ecosystem is a nationally and internationally 
unique and important natural resource. It is also a resource in peril, 
having been severely affected by human activities for over a hundred 
years. The Central and Southern Florida Project extends from south of 
Orlando to the Florida Keys and is composed of a regional network of 
canals, levees, water storage areas, and water control structures. 
First authorized by Congress in 1948, the project serves multiple 
objectives. The objectives of the project include flood control, 
regional water supply for agricultural and urban areas, prevention of 
salt water intrusion, water supply to Everglades National Park, 
preservation of fish and wildlife, recreation, and navigation. While 
fulfilling these objectives, the project has had unintended adverse 
effects on the unique natural environment that constitutes the 
Everglades and South Florida ecosystem. In 1996, the Army Corps of 
Engineers was directed to develop a comprehensive plan to restore, 
preserve, and protect South Florida's natural ecosystem while providing 
for the water-related needs of the region, including flood control, the 
enhancement of water supplies, and other objectives of the Central and 
South Florida Project. The resulting plan, which was submitted to 
Congress on July 1, 1999, is called the Comprehensive Everglades 
Restoration Plan.
    The overarching goal of the Plan is the restoration, preservation, 
and protection of the South Florida ecosystem while providing for other 
water-related needs of the region, such as flood protection and water 
supply. As submitted to Congress, the Plan contained 68 major 
components that anticipated the creation of approximately 217,000 acres 
of reservoirs and wetland-based water treatment areas, wastewater reuse 
plants, seepage management, and the removal of levees and canals in 
natural areas. These components vastly increase storage and water 
supply for the natural system, as well as for urban and agricultural 
needs, while continuing to fulfill the original objectives of the 
existing Central and Southern Florida Project. The Comprehensive 
Everglades Restoration Plan will restore more natural flows of water, 
including sheet flow; improve water quality; and

[[Page 64201]]

establish more natural hydroperiods in the South Florida ecosystem. 
Improvements to fish and wildlife habitat, including those that benefit 
threatened and endangered species, are expected to occur as a result of 
the restoration of hydrologic conditions. This will promote the 
recovery of native flora and fauna, including threatened and endangered 
species.
    In enacting section 601 of WRDA 2000, Congress approved the 
Comprehensive Everglades Restoration Plan as a framework for 
modifications to the Central and Southern Florida Project. Section 601 
of WRDA 2000 contains a variety of provisions associated with 
implementation of the Comprehensive Everglades Restoration Plan, 
including an authorization for the construction of four pilot projects 
and ten initial projects of the Comprehensive Everglades Restoration 
Plan.
    Section 601(h) of WRDA 2000 states, ``the overarching objective of 
the Plan is the restoration, preservation, and protection of the South 
Florida ecosystem while providing for other water-related needs of the 
region, including water supply and flood protection.'' This section 
directs that the Plan be implemented to ensure the protection of water 
quality in, the reduction of the loss of fresh water from, and the 
improvement of the environment of the South Florida Ecosystem. 
Implementation of the Plan also seeks to achieve and maintain the 
benefits to the natural system and human environment described in the 
Plan.
    Section 601(h)(2) of WRDA 2000 requires the President and Governor 
to enter into a binding agreement ensuring that the water generated by 
the Plan will be made available to the natural system. The President 
and Governor signed this agreement on January 9, 2002. The agreement 
specifies that the State will ensure by regulation, or other 
appropriate means, that water made available by each project in the 
Plan will not be permitted for a consumptive use or otherwise made 
unavailable by the State until such time as sufficient reservations of 
water for the restoration of the natural system are made under State 
law in accordance with the Project Implementation Report for that 
project and consistent with the Plan. This agreement also specifies 
that the State will monitor and assess the continuing effectiveness of 
reservations as long as the project is authorized in order to achieve 
the goals and objectives of the Plan.
    Section 601(h)(3) of WRDA 2000 requires that the Secretary of the 
Army, after notice and opportunity for public comment, and with the 
concurrence of the Governor of Florida and the Secretary of the 
Interior, and in consultation with the Miccosukee Tribe of Indians of 
Florida, the Seminole Tribe of Florida, the Administrator of the 
Environmental Protection Agency, the Secretary of Commerce, and other 
Federal, State, and local agencies, issue programmatic regulations 
within two years of the date of enactment of WRDA 2000 to ensure that 
the goals and purposes of the Plan are achieved. This regulation is 
promulgated in furtherance of these statutory requirements.
    Section 601(h)(4) of WRDA 2000 describes the project specific 
assurance requirements for Project Implementation Reports, Project 
Cooperation Agreements, and Operating Manuals. Finally, section 
601(h)(5) contains a savings clause that provides protection for 
existing legal sources of water that will be eliminated or transferred 
due to project implementation and provides for maintenance of the 
levels of service for flood protection that were in existence on the 
date of enactment of WRDA 2000 and in accordance with applicable law.

II. Process for Developing the Programmatic Regulations

    The Department of the Army developed the programmatic regulations 
through an open and inclusive process that involved numerous meetings, 
briefings, and discussions with other Federal, State, and local 
agencies; the Miccosukee Tribe of Indians of Florida and the Seminole 
Tribe of Florida; agricultural, environmental, urban utilities, 
recreational, and urban interest groups; and the public. Briefings on 
the programmatic regulations were provided to the Governing Board of 
the South Florida Water Management District and its Water Resources 
Advisory Commission and the South Florida Ecosystem Restoration Task 
Force and its Working Group. In addition, programmatic regulations web 
pages were developed and posted on the Comprehensive Everglades 
Restoration Plan web site (http://www.evergladesplan.org). The web site was 
used to disseminate information about the programmatic regulations and 
to provide a place for individuals and organizations to submit comments 
electronically during the development of the programmatic regulations. 
This was designed to identify the major concerns of the agencies and 
various groups, prior to publishing the proposed regulations and 
soliciting formal public comment.
    The Army held an opening round of meetings with agencies, interest 
groups, and the public in May and June 2001. The purpose of these 
meetings was to discuss the process that would be used to develop the 
programmatic regulations and to solicit comments on the major issues 
and concerns that should be addressed in developing the regulations.
    Following this initial round of meetings, the Army developed a 
draft outline of the programmatic regulations. We then held a second 
round of meetings in September and October 2001 with agencies, interest 
groups, and the public to solicit comments on the outline. We also 
consulted with the Miccosukee Tribe of Indians of Florida and the 
Seminole Tribe of Florida, and sought their comments on the draft 
outline.
    After the second round of meetings, we developed an initial draft 
of the programmatic regulations. We distributed this initial draft to 
the public on December 28, 2001, and allowed informal public comment 
until February 15, 2002. We then held meetings with agencies, tribes, 
and interest groups, to discuss the initial draft. We also received 
written comments on the initial draft that were posted on the 
programmatic regulations web site. In addition, the Water Resources 
Advisory Commission formed a subcommittee on the programmatic 
regulations. The subcommittee met several times to discuss issues 
concerning the initial draft and potential ways of addressing these 
issues. The South Florida Ecosystem Restoration Task Force also met 
several times after the release of the initial draft to discuss the 
programmatic regulations.
    The proposed rule was published in the Federal Register on August 
2, 2002 and the public was allowed to submit comments on the 
regulations until October 1, 2002. During the comment period, we held a 
public meeting in Miami on September 10, 2002 and a public meeting in 
West Palm Beach on September 19, 2002. We also consulted with the 
Miccosukee Tribe of Indians of Florida and the Seminole Tribe of 
Florida and held a number of informal meetings with interested groups. 
The comments submitted on the proposed rule and the transcripts of the 
two public meetings were posted on the programmatic regulations web 
site after the close of the public comment period.
    On February 6, 2003, the Council for Environmental Quality hosted a 
public meeting in Washington. The purpose of the public meeting, which 
was facilitated by the Council on Environmental Quality, was to provide 
an opportunity for interested parties to clarify comments filed on the 
proposed rule. Representatives of the Department

[[Page 64202]]

of the Army, the Department of the Interior, and the State, as well as 
representatives of other Federal agencies were in attendance to listen 
to these views. Additionally, the meeting afforded attendees an 
opportunity to engage directly with each other. This open dialogue was 
especially useful in developing a thorough understanding of the 
parties' views.
    This final rule was developed after considering all of the 
information received at the meetings, as well as written comments that 
were received from agencies, interest groups, and the public.

III. Discussion of Final Rule

    We received approximately 820 comments on the proposed regulations 
issued on August 2, 2002. Of these comments, approximately 800 were 
individual or form letters from the public. In general, these letters 
requested that the proposed regulations be revised to: give the 
Department of the Interior a greater voice in approving CERP documents 
and participating in RECOVER; to strengthen the independence of the 
independent scientific review panel to ensure that its reviews are 
objective, and to incorporate the interim goals in the final 
regulations. We also received approximately 25 letters from various 
types of organizations, members of Congress, Federal, State, and local 
agencies, the Miccosukee Tribe of Indians of Florida, and the Seminole 
Tribe of Florida. These letters included detailed comments on the 
recommendations and specific proposals for revisions in a number of 
areas.
    All of the comments were generally supportive of the effort to 
issue final regulations. We have carefully considered all of these 
comments in developing today's final rule. The following paragraphs 
include a description of the significant issues raised by these 
comments and a discussion of how these issues were addressed in the 
final regulations. In reviewing these comments, we sought to reconcile 
different points of view and to find consensus solutions to common 
concerns. In a few instances this was not possible because the parties 
simply held diametrically opposing views. In these instances, our 
decisions on proposed revisions were guided by our judgment as to what 
would best fulfill Congressional intent with respect to the goals and 
purposes of CERP. The final rule remains similar to the proposed rule 
in organization and structure, but contains the substantive and 
editorial changes that were made to address the issues raised by the 
comments. The Army is confident that these final programmatic 
regulations provide an excellent framework for the implementation of 
CERP as envisioned by Congress.

IV. Discussion of Comments

A. Amount of Detail in the Proposed Regulations

    A number of commenters shared their views on the appropriate level 
of detail that should be contained in the regulations. Some commenters 
believed that the programmatic regulations should be very detailed and 
directive in terms of specific procedures and outcomes. Others believed 
that the programmatic regulations should be process-oriented and 
provide a general framework for implementing CERP. A few of these 
commenters also expressed concern that the Federal regulations not 
infringe on the sovereignty of the State of Florida or its right to 
allocate its water resources. Others sought to ensure that the 
regulations safeguard the Federal interest and investment in 
restoration, preservation, and protection of the South Florida 
ecosystem, including Federal properties within South Florida, such as 
national parks and wildlife refuges.
    The final regulations attempt to recognize these diverse views. We 
made a number of changes to the proposed rule in order to clarify the 
procedures and processes specified in the regulations to ensure that 
the goals and purposes of the Plan are achieved. As in the proposed 
rule, the final regulations also call for the development of detailed 
guidance memoranda in the future to specifically address issues of 
system-wide import. In striking a balance between process and 
specificity, we strove to address those matters that could be 
specifically dealt with now while avoiding being so prescriptive that 
we would lose the flexibility to respond to new technical and 
scientific information revealed during implementation of the Plan.

B. Guidance Memoranda

    A number of commenters raised concerns about the guidance memoranda 
described in the proposed regulations. These concerns varied but, in 
general, related to either the substantive matters addressed in the 
guidance memoranda or the process for finalizing the guidance 
memoranda. Some commenters felt that the concurrence provisions 
contained in the proposed regulations would delay finalizing the 
guidance memoranda. Others felt that the concurrence provisions in the 
proposed regulations did not give the Secretary of the Interior or the 
Governor of Florida an appropriate role in approving the guidance 
memoranda because it appeared that the Secretary of the Army could 
finalize these documents after giving good faith consideration to 
comments from the Department of the Interior and the Governor, 
notwithstanding the fact that either or both officials had concerns 
about finalizing the regulations.
    Some commenters believed that the scheduled completion dates for 
developing the guidance memoranda were unrealistic and should be 
changed. Others expressed the view that issues addressed in the 
guidance memoranda should be covered in the programmatic regulations. 
In addition, they were concerned that the guidance memoranda did not 
have the same legal status as the programmatic regulations and thus 
would not have the same legal import. These commenters stated that if 
the material intended for inclusion in the guidance memoranda was not 
included in the final rule then the guidance memoranda should be 
included in the programmatic regulations at the next revision. Several 
commenters also believed that the proposed regulations gave an 
inappropriate role to the South Florida Water Management District in 
the development of the guidance memoranda. One commenter requested that 
an additional guidance memorandum be developed to provide a procedure 
for determining if implementation of a project will cause the 
elimination or transfer of existing legal sources of water. The 
Seminole Tribe commented that ``existing legal source'' of water is a 
new concept not found in Florida statutes or regulations. The Tribe 
requested that the programmatic regulations set up a process for 
defining ``existing legal source'' of water and addressing how an 
``existing legal source'' of water would be replaced to comply with the 
savings clause.
    The comments reflected a difference of opinion with respect to 
whether certain issues should be addressed in the guidance memoranda or 
the programmatic regulations and whether the Department of the Interior 
and the Governor of Florida should have concurrence over the guidance 
memoranda, as they do with regard to the programmatic regulations. Some 
of the commenters believe that the issues that are proposed for 
discussion in the guidance memoranda should be included in the 
regulations because they cover processes and matters of system-

[[Page 64203]]

wide applicability. Alternatively, they believe that if guidance 
memoranda must be developed, they should later be incorporated into the 
regulations. These commenters believe that for these reasons the 
Secretary of the Interior and the State of Florida should have a 
concurrence right in the guidance memoranda regardless of whether the 
guidance memoranda are included in the regulations. Other commenters 
expressed the view that guidance memoranda should not be included in 
the regulations because they address technical or detailed matters 
instead of the system-wide procedural matters Congress intended would 
be addressed in the programmatic regulations. These commenters believed 
that it would be inappropriate to give the Secretary of the Interior 
and the Governor of Florida a concurrence right over these documents 
because the statute authorizing CERP provides for concurrence in the 
programmatic regulations only.
    The final regulations contain revisions in response to these 
comments. In attempting to address the views of those who commented 
that the Secretary of the Interior and Governor of Florida should be 
given a greater role in the development of the guidance memoranda and 
that the South Florida Water Management District had an inappropriate 
role in developing the guidance memoranda, the final rule clarifies 
that the South Florida Water Management District and the Corps of 
Engineers work together in developing the guidance memoranda but the 
final approval is by the Secretary of the Army, after public notice and 
comment and with the concurrence of the Secretary of the Interior and 
the Governor of Florida. We believe that this change in the regulations 
assures that the South Florida Water Management District plays an 
important role in the development of the guidance memorandum, but 
preserves the ability of the Secretary of the Army to make a final 
decision on the guidance memorandum with the concurrence of the 
Secretary of the Interior and the Governor.
    The approval process for the guidance memoranda parallels the 
statutory concurrence process for the programmatic regulations. We 
deleted the language in the proposed regulations that said the Army 
would give ``good faith consideration'' to the concurrence or non-
concurrence statements of the Secretary of the Interior and the 
Governor before approving the guidance memoranda. Our intent is to 
issue guidance memoranda that have been concurred in by the Secretary 
of the Interior and the Governor. We agree that the old language in the 
proposed regulations did not communicate adequately this intent. 
Instead, it suggested that the Army simply had to fulfill a ministerial 
coordination requirement by asking the Secretary of the Interior and 
the Governor whether they concurred or non-concurred in the guidance 
memorandum. This language did not convey the Army's intent to actively 
seek the concurrence of the Secretary of the Interior and the Governor 
prior to approving the guidance memoranda. The new language gives the 
Secretary of the Interior and the Governor the same concurrence 
opportunity they have on the programmatic regulations and assures that 
they have an appropriate role in the Department of the Army's adoption 
of these important documents. While concurrence or non-concurrence on 
the six guidance memoranda in Sec.  385.5(b) is not required by law and 
will require additional time to fulfill, we believe it is appropriate 
to provide for this process because of the significance of these 
documents.
    We believe that the public should have an opportunity to review and 
comment on the guidance memoranda because of their significance. 
Accordingly, the final regulations state that the public will be 
advised by notice in the Federal Register when the guidance memoranda 
are ready for review and comment. The final rule requires that the 
guidance memoranda should be developed within a year of the effective 
date of the programmatic regulations with the concurrence of the 
Secretary of the Interior and the Governor.
    We have determined that the guidance memoranda should not be 
included in the programmatic regulations at this time for several 
reasons. First, they are still being developed, second, they will be 
very technical, and third, they will provide internal guidance to the 
agencies implementing CERP. This decision is consistent with the view 
of commenters who felt that including the guidance memoranda in the 
programmatic regulations was incompatible with structured, formal rule-
making processes. These commenters felt that rulemaking processes would 
not accommodate recurring revisions to published technical documents, 
like the guidance memoranda, which will require periodic changes to 
accommodate new information. These commenters were concerned that if 
guidance memoranda were included in these regulations, every revision 
of them would require us to initiate a rulemaking process. While we 
determined that the guidance memoranda should not be included in the 
programmatic regulations at this time, we preserve the opportunity to 
include the guidance memoranda in the programmatic regulations during 
the next review and revision of the programmatic regulations.
    The final regulations no longer contemplate that a separate 
guidance memorandum will be developed for the system-wide evaluation of 
Project Implementation Report alternatives by RECOVER. We concluded 
that this subject should be addressed in the guidance memorandum for 
the formulation and evaluation of alternatives for Project 
Implementation Reports and that a separate guidance memorandum on this 
subject was unnecessary.
    The final regulations also require the development of an additional 
guidance memorandum that will be used by agency personnel to identify 
if an elimination or transfer of ``existing legal sources of water'' 
will occur as a result of implementation of the Plan. This guidance 
memorandum will ensure the fulfillment of the savings clause 
requirements of section 601 (h)(5)(a) of WRDA 2000 that are designed to 
ensure that ``existing legal sources of water'' are preserved. There 
was general agreement among commenters that a definition is required 
for the phrase, ``existing legal sources of water'' but there was wide 
disagreement among the commenters about what the phrase actually means 
or who determines what an ``existing legal source of water'' is. The 
term is not defined in WRDA 2000 or elsewhere in Federal or Florida 
State law. Some commenters felt the term should include all water in 
the South Florida ecosystem that was not discharged to tide at the time 
WRDA 2000 was enacted. Other commenters emphasized that the term used 
in the statute, ``existing legal sources'' is a broad term which 
indicates that all water in the South Florida ecosystem should be 
covered by the requirements of the savings clause. Several commenters 
felt that the determination of what constitutes an ``existing legal 
source of water'' is not a decision for the Secretary of the Army to 
make. They argued that the Secretary of the Army should defer to the 
State of Florida on this issue because the determination of what 
constitutes an existing legal source of water involves a matter of 
state law. The new guidance memorandum contemplated in the regulations 
will establish procedures for identifying what constitutes ``an 
existing legal source of water'' and for determining

[[Page 64204]]

when an existing legal source of water has been eliminated or 
transferred.

C. Goals and Purposes of the Plan

    The comments reflected different views on the goals and purposes of 
the Plan. A number of commenters felt the proposed regulations did not 
place enough emphasis on the restoration objectives of the Plan and 
recommended that the regulations be revised to clearly state that the 
restoration objectives of the Plan are a priority. Another commenter 
believed that the language in the proposed regulations concerning the 
goals and purposes of the Plan was vague. This commenter suggested that 
the language be replaced with the description of the goals and 
objectives of the Plan contained in the April 1999 ``Final Integrated 
Feasibility Report and Programmatic Environmental Impact Statement.'' 
Finally, several commenters believed that the regulation should include 
all of the goals and purposes of the Plan, including providing for 
other water-related needs of the region.
    To respond to these comments we have included a definition of the 
goals and purposes of the Plan in the final regulations that follows 
the language of WRDA 2000. This definition specifies that the 
overarching goal of the Plan is the restoration, preservation, and 
protection of the South Florida ecosystem while providing for other 
water-related needs of the region, including water supply and flood 
protection. We believe the open and collaborative process set forth in 
these regulations for the implementation of the Plan provides the 
greatest assurance that all the goals and the purposes of the Plan will 
be achieved. This regulation emulates the successful, open and 
collaborative process that produced the Comprehensive Everglades 
Restoration Plan and we are confident that these same processes will 
ensure that the goals and purposes of the Plan are fulfilled as 
intended by Congress.
    Several commenters also expressed the view that the proposed 
regulations should not have tied performance of the Plan, and 
particularly the development of interim goals, to the model run 
identified as D-13R in the April 1999 ``Final Integrated Feasibility 
Report and Programmatic Environmental Impact Statement.'' These 
commenters maintained that implementation modeling conducted after 
completion of the feasibility report demonstrated the potential for 
improving the Plan with regard to the restoration of the ecosystem.
    We have removed the references to D-13R in the final regulations 
because we agree that it may be possible to produce ecosystem 
restoration benefits beyond those contemplated in D-13R. We will 
further evaluate the performance of the Plan in accordance with the 
adaptive management provisions of the regulations to determine whether 
it is possible to realize any improvements in the performance of the 
Plan with regard to ecosystem restoration while providing for other 
water-related needs of the region. We will make adjustments to the Plan 
to the extent these improvements can be realized consistent with the 
overall goals and purposes of the Plan. As indicated, we have deleted 
the reference to D-13R in the hope that it may be possible to improve 
the Plan's performance with respect to ecosystem restoration consistent 
with the statutory and budgetary framework approved by Congress.

D. Defining Restoration

    Several commenters expressed concern about the definition of 
restoration contained in the proposed regulations. Some commenters felt 
that restoration should be defined in terms of hydrologic and ecologic 
targets, not the level of performance contained in the April 1999 Final 
Integrated Feasibility Report and Programmatic Environmental Impact 
Statement'' as was contemplated in the proposed regulations. They 
believe that implementing the Plan in accordance with hydrologic and 
ecologic targets, and making adjustments as necessary through adaptive 
management, is a more effective way to ensure that system-wide 
restoration occurs. In particular, the Everglades Coalition commented 
that, ``* * * the yellow book provides only a framework for 
restoration, and does not clearly describe the essential ecological 
characteristics of a sustainable restored Everglades. * * * It is 
necessary to keep the definition of restoration * * * based on 
ecological necessity and not anticipated performance. This structure is 
necessary for the adaptive management process to be successful in 
making meaningful improvements to the plan.'' Another commenter stated 
that the definition of restoration must clearly specify that 
restoration is ``an absolute priority above all others.''
    Other commenters expressed the view that the definition of 
restoration must take into account certain relevant provisions of WRDA 
2000. These commenters point out that the purpose of the Plan was not 
to provide for the restoration of the South Florida ecosystem without 
regard to other considerations. They note that restoration is not an 
open-ended abstract term; WRDA 2000 states that the Plan must take into 
account ``the other water-related needs of the region,'' and contains a 
prohibition against eliminating or transferring ``existing legal 
sources of water'' until new sources of water of comparable quantity 
and quality are available to replace the water that is lost as a result 
of implementation of the Plan. These commenters pointed out that the 
definition of restoration must recognize that Congress authorized the 
Plan as a framework for restoring the South Florida ecosystem and that 
the restoration that actually occurs is a result of the specific 
projects that Congress later authorizes in fulfillment of the Plan.
    Other commenters believed that the definition should recognize the 
important role that ``getting the water right'' plays in restoration. 
Getting the water right involves delivering water to the ecosystem in 
the right quantity and quality at the right time and place. Another 
commenter held a somewhat similar view, believing that the definition 
should emphasize the importance of hydroperiod and water quality in 
fulfilling the restoration objective since natural system conditions 
are a result of water quality and hydroperiod conditions.
    Other commenters expressed the view that the definition of 
restoration in the proposed regulations was not scientifically 
credible. These commenters believed that to be credible from a 
scientific perspective, the definition of restoration must take into 
account other considerations that are relevant to the ecological 
condition of the South Florida ecosystem. For example, state and local 
restoration and water quality programs affect the South Florida 
ecosystem as well. Additionally, some commenters pointed out that there 
is no consensus among scientists about the specific ecological 
parameters that constitute successful ``restoration.'' As an example, 
there is no agreement on what the goal should be for the population of 
specific species of plants, fish, or birds.
    To some extent, the disagreement surrounding the definition of 
restoration reflects the underlying concern of affected parties that 
the definition of restoration will not take their interests into 
account. Certain parties are concerned that if the definition of 
restoration does not assign a proper role to science in fulfilling the 
objectives of the Plan, the implementation of the Plan will be driven 
by political compromises. These parties are concerned that as Federal 
and State governments move forward with implementation of the Plan, the 
restoration goals of the Plan

[[Page 64205]]

will be preempted by water supply and flood protection needs. In this 
regard, the Natural Resources Defense Council urged that the 
programmatic regulations must ``preclude the achievement of water 
supply and flood protection goals at the expense of restoration 
goals.'' Other commenters are concerned that the other water-related 
goals of the region will be ignored in an effort to advance an elusive 
and constantly changing vision of restoration favored by scientists, 
instead of the Plan approved by Congress. All commenters emphasized the 
importance of developing an appropriate definition of restoration so 
that CERP projects are properly sequenced and appropriations wisely 
spent.
    The final regulations contain a new definition of restoration that 
responds to these comments. The regulations define restoration as the 
recovery and protection of the South Florida ecosystem so that it once 
again achieves and sustains the essential hydrological and biological 
characteristics that defined this ecosystem in an undisturbed 
condition. This definition acknowledges that, as authorized by 
Congress, the restored South Florida ecosystem will be significantly 
healthier than the current system but will be smaller and somewhat 
differently arranged than the historic ecosystem. Also, there may be 
different degrees of restoration in different areas of the ecosystem. 
The irreversible physical changes made to the South Florida ecosystem 
make a complete return to the historic ecosystem impossible. However, 
the restored ecosystem will have recovered those essential hydrological 
and biological characteristics that defined the undisturbed South 
Florida ecosystem and made it unique among the world's wetlands 
systems.
    The new definition of restoration recognizes that the restoration 
goal of the Plan is to achieve a healthy and functioning ecosystem that 
once again exhibits the essential characteristics of the undisturbed 
South Florida ecosystem. The definition acknowledges that, as 
authorized by Congress, the restored ecosystem will be different than 
the historic ecosystem. In so doing, the definition affords flexibility 
to allow for adaptive management and the accommodation of other water-
related needs of the region, as the Plan is implemented through 
individual projects specifically authorized by Congress.
    The definition of restoration recognizes implicitly that science 
will be the foundation of restoration, but it also assumes, as noted 
throughout the programmatic regulations, that in all phases of 
implementation of the Plan both restoration and the other goals and 
purposes of the Plan should be achieved. The definition also recognizes 
that we must act within the legislative framework that has been 
approved by Congress in WRDA 2000 and later may be approved by Congress 
in future authorization acts.

E. Amount of Water Provided for Restoration

    Some commenters expressed the view that the regulations must 
include a statement that new water generated by the Plan will be 
reserved for the natural system on an 80%-20% basis. These commenters 
note that the report of the Senate Committee on Environment and Public 
Works on WRDA 2000 (Senate Report No. 106-362) states:

    The Plan contains a general outline of the quantities of water 
to be produced by each project. According to the Army Corps, 80 
percent of the water generated by the Plan is needed for the natural 
system in order to attain restoration goals, and 20 percent of the 
water generated for use in the human environment. * * * Subject to 
future authorizations by Congress, the committee fully expects that 
the water necessary for restoration, currently estimated at 80 
percent of the water generated by the Plan, will be reserved or 
allocated for the benefit of the natural system (Emphasis added).

    These commenters believed that the 80%-20% ratio should be set 
forth in the regulations as a generalized planning goal for reserving 
or allocating new water to the natural system. They are concerned that 
the 80%-20% ratio was not identified in the proposed regulations as a 
planning goal. On a different but related note, several commenters felt 
that a water budget should be developed for the South Florida ecosystem 
to ensure that the restoration goals of the Plan are achieved.
    Other commenters observed that the 80%-20% ratio was merely the 
initial estimate of the new water that would be produced by the Plan 
and therefore, could be allocated or reserved for the benefit of the 
natural system. These commenters maintain that the goal of the Plan is 
to provide whatever water is needed for restoration of the natural 
system, irrespective of the 80%-20% ratio. These commenters point out 
that individual components of the Plan may produce amounts of water 
different from this initial estimate. In fact, some commenters pointed 
out that the 80%-20% ratio was part of a scenario called D-13R4, which 
was not included in the framework Plan (D-13R) authorized by Congress.
    We understand the desire of the commenters to assure sufficient 
water will be allocated or reserved for the benefit of the natural 
system. To accomplish this result, we believe that it is necessary to 
preserve the ability to adapt to new information as the Plan is 
implemented. Therefore, the regulations do not contemplate the 
allocation of water on a rigid 80%-20% basis, either system-wide or 
project-by-project. Instead, the final regulations ensure that adequate 
water will be allocated or reserved for the benefit of the natural 
system without regard to this ratio by requiring that each Project 
Implementation Report evaluate and identify water to be reserved for 
the natural system and made available for other water-related needs of 
the region, and that the Plan itself be continually evaluated through 
adaptive management to assure that adequate water is allocated or 
reserved on a system-wide basis.
    The final rule also provides that the Corps of Engineers and the 
South Florida Water Management District will determine the total 
quantity of water that is expected to be generated by implementation of 
the Plan, including the quantity expected to be generated for the 
natural system to attain restoration goals as well as the quantity 
expected to be generated for use in the human environment, and will 
periodically update that estimate, as appropriate, based upon changed 
or unforeseen circumstances, new scientific and technical information, 
new or updated modeling, and congressionally authorized projects or 
modifications to the Plan. In addition, the final regulations envision 
that a water budget for the Plan will be developed and disseminated 
annually to the public. These regulatory provisions will ensure that 
adequate water will be reserved or allocated to the natural system as 
intended by Congress.

F. Independent Scientific Review and External Peer Review

    A number of commenters were concerned that the proposed regulations 
did not provide for the establishment of an independent scientific 
review panel. They noted that section 601(j) of WRDA 2000 requires that 
the Secretary of the Army, the Secretary of the Interior, and the 
Governor, in cooperation with the Task Force establish an independent 
scientific review panel convened by a body, such as the National 
Academy of Sciences, to review the Plan's progress toward achieving the 
natural system restoration goals of the Plan. These commenters feel 
that the panel must operate independently of the Corps of

[[Page 64206]]

Engineers, the State, and the Department of the Interior and believe 
that the programmatic regulations should address how the implementing 
agencies would work with the panel. One commenter also felt that the 
proposed regulations did not provide an appropriate role for the Task 
Force in the establishment of the independent scientific review panel.
    The Department of the Army embraces the use of independent 
scientific review and external peer review. The successful 
implementation of CERP requires that appropriate decisions be made 
about significant scientific and technical issues. These extremely 
technical, often controversial, issues will be presented in various 
reports and documents generated by numerous sources, including the 
Corps of Engineers, the South Florida Water Management District, 
Everglades National Park, the Fish and Wildlife Service, the Florida 
Fish and Wildlife Conservation Commission, and various Federal, State, 
and local agencies. Independent scientific review and external peer 
review will ensure that the decisions made in implementing CERP are 
based on appropriate data and sound science that is clearly presented 
to decision makers.
    There was some confusion evident in comments and public meetings 
regarding the panel that will be established to perform the section 
601(j) functions and other independent scientific review, particularly 
the standing panel currently used by the South Florida Ecosystem 
Restoration Task Force (Task Force). In February 1999, the Task Force 
endorsed ``the establishment of an ongoing outside scientific review 
panel * * * as an essential component to ensure an effective adaptive 
management process for South Florida Ecosystem restoration.'' In 
September 1999, in fulfillment of the Task Force's resolution, the 
Department of the Interior entered into a five-year cooperative 
agreement with the National Academy of Sciences (NAS) to establish the 
Committee on Restoration of the Greater Everglades Ecosystem (CROGEE). 
CROGEE provides scientific advice to the Task Force and its member 
agencies and that the Committee will review and make recommendations on 
the scientific and technical aspects and elements relating to the South 
Florida ecosystem.
    The section 601(j) panel will be independent of CROGEE or any other 
panel. Its only mission will be to carry out section 601(j).
    Acting on a proposal from the Department of the Army, the Secretary 
of the Army, the Secretary of the Interior, and the Governor, in 
consultation with the South Florida Ecosystem Restoration Task Force, 
agreed to designate the National Academy of Sciences to convene the 
initial independent scientific panel that will perform the tasks 
required by Section 601(j) of the Water Resources Development Act of 
2000. The final regulations contain new language that identifies the 
National Academy of Sciences as the entity that will convene the 
initial independent scientific review panel. These regulations also 
acknowledge that the South Florida Ecosystem Restoration Task Force has 
played a role in choosing the National Academy of Science as the 
initial organization to convene the panel, and the Task Force will play 
a role in the establishment of the panel. The final regulations state 
that we will enter into an agreement with the National Academy of 
Sciences to convene the independent scientific review panel. This 
agreement shall be for a period of five years with options for 
extensions in five-year increments. The final regulations include a 
statement recognizing that independent scientific review is crucial for 
ensuring that the best available science is used in the implementation 
of the Plan. The regulations recognize the continuing role of the Task 
Force to consult on decisions to exercise the option to extend the 
agreement. The regulations recognize the continuing role of the Task 
Force in designation of the organization to convene future panels and 
to consult on establishment of the panel upon expiration of the initial 
agreement.
    The final regulations state that the Secretary of the Army, the 
Secretary of the Interior, and the Governor shall finalize any 
agreements and procedures necessary to provide for the operation and 
funding of the independent scientific review panel and establish this 
panel within six months of the effective date of the programmatic 
regulations.
    The final regulations set forth the expectation that the National 
Academy of Sciences will use established practices for assuring the 
independence of members and that the review panel will include members 
reflecting a balance of the knowledge, training, and experience 
suitable to comprehensively review and assess the Plan's progress 
towards achieving restoration goals. WRDA 2000 provides very specific 
direction that the panel is ``to review the Plan's progress toward 
achieving the natural system restoration goals of the Plan.'' This 
specific requirement will be the focus of the agreement and the mission 
of the independent scientific review panel. The independent panel's 
tasks include those activities that are necessary to review the Plan's 
progress towards achieving the restoration goals of the Plan. In 
addition, in accordance with WRDA 2000, the panel will produce a 
biennial report to Congress, the Secretary of the Army, the Secretary 
of the Interior, and the Governor that includes an assessment of 
ecological indicators and other measures of progress in restoring the 
ecology of the natural system, based on the Plan.
    To further insure the independence of the panel, the regulations 
provide that the panel will not be assigned, and may not accept, other 
tasks, nor may it provide advice on other matters to any entity, public 
or private. Its sole mission is to review the Plan's progress toward 
achieving the natural system restoration goals of the Plan and to 
produce the section 601(j) report.
    The final regulations provide that the agreement with the section 
601(j) panel will specifically recognize that the agencies may provide 
for other independent scientific panels and peer review to address 
specific scientific or technical questions. The regulations provide for 
an external peer review process to review documents, reports, 
procedures, or to address specific scientific or technical questions or 
issues. Draft Pilot Project Technical Reports and draft assessment 
reports are specifically designated to be externally peer reviewed.

G. Restoration Coordination and Verification (RECOVER)

    Many comments focused on the role of RECOVER in implementing the 
Plan. Some of the commenters felt that the responsibilities of RECOVER 
were not clearly identified in the proposed regulations. They suggested 
that these responsibilities should be organized according to three 
major missions `` assessment, evaluation, and planning. Another 
commenter felt the final regulations should clearly state that RECOVER 
is not an independent body but that it is instead an interagency group 
that prepares work products for consideration by others. Some 
commenters believe that the final regulation should emphasize that 
RECOVER is composed of agency personnel with scientific expertise. 
Several commenters believed that the Department of the Interior should 
have a co-leadership role over RECOVER along with the Corps of 
Engineers and the South Florida Water Management District.

[[Page 64207]]

    RECOVER's origins trace back to the April 1999 ``Final Integrated 
Feasibility Report and Programmatic Environmental Impact Statement.'' 
RECOVER is an interdisciplinary, interagency scientific and technical 
team that was designed to perform system-wide analyses. In reviewing 
the comments on the proposed regulations, we felt that some 
misunderstanding might exist concerning the role of RECOVER. For 
example, some commenters suggested that RECOVER should be an 
independent body because independent science plays an important role in 
implementing the Plan. While RECOVER is a science-based group because 
many of its members possess scientific expertise, it is not an 
independent agency. It is an interagency group consisting of members 
from governmental entities The role of RECOVER is to promote an 
integrated view within the implementing agencies on matters relevant to 
the implementation of the Plan in order to ensure that the goals and 
purposes of the Plan are achieved. Independent scientific research will 
be used to gain perspectives on these issues from outside parties and 
will be provided by entities other than RECOVER.
    The final regulations recognize that RECOVER is an existing, 
presently functioning interagency team. The final regulations are 
consistent with the description of RECOVER in the Plan and envision 
that RECOVER will play an important role in ensuring that a system-wide 
perspective is applied and that the best available scientific and 
technical information is used during the development, implementation, 
and evaluation of the Plan. The final regulations address a number of 
issues. They recognize that the Corps of Engineers and the South 
Florida Water Management District will oversee the activities of 
RECOVER. The final regulations also identify the members of the RECOVER 
Leadership Group, which includes the program managers from the Corps of 
Engineers and the South Florida Water Management District, the 
Environmental Protection Agency, the National Oceanic and Atmospheric 
Administration, the U.S. Fish and Wildlife Service, the U.S. Geological 
Survey, Everglades National Park, the Miccosukee Tribe of Indians of 
Florida, the Seminole Tribe of Florida, the Florida Department of 
Agriculture and Consumer Services, the Florida Department of 
Environmental Protection, and the Florida Fish and Wildlife 
Conservation Commission. The diverse membership of the Leadership Group 
assures that the views of Federal agencies, State agencies, and Tribes 
are appropriately represented. The final regulations outline a series 
of specific scientific and technical duties RECOVER will perform to 
assist the Corps of Engineers and the non-Federal sponsors in achieving 
the goals and purposes of the Plan, particularly restoration of the 
natural system. We have grouped these duties under the three major 
missions of RECOVER--assessment, evaluation, and planning/integration 
activities.
    Again, the final regulations indicate that RECOVER is an 
interagency, interdisciplinary, scientific and technical team. The 
regulations state that the documents prepared by RECOVER are to be 
provided to the Corps of Engineers and the South Florida Water 
Management District for consideration as they carry out their 
responsibilities in implementing the Plan. The regulations specify that 
the Corps of Engineers and the SFWMD will consult with other Federal 
agencies, state agencies, local agencies and Tribes, as they consider 
the information that is provided by RECOVER.
    Several commenters expressed the view that RECOVER is an advisory 
body that is subject to the Federal Advisory Committee Act (FACA). We 
concluded that FACA does not apply to RECOVER. FACA contains an 
exception for meetings ``held exclusively between Federal officials and 
elected officers of State, local, and tribal governments,'' where those 
meetings ``are solely for the purposes of exchanging views, 
information, or advice relating to the management or implementation of 
Federal programs established pursuant to public law that explicitly or 
inherently share intergovernmental responsibilities or 
administration.'' Unfunded Mandates Act, Public Law 104-4, 109 Stat. 
48, 65 (1995), 2 U.S.C. 1501, 1534 et seq. RECOVER's meetings and 
activities fall within this exception. Another commenter noted that 
FACA does not apply to the South Florida Ecosystem Restoration Task 
Force, pursuant to WRDA 1996 and proposed that RECOVER be made an 
advisory committee to the South Florida Ecosystem Restoration Task 
Force to avoid the application of FACA. Because we have determined FACA 
does not apply to RECOVER's meetings and activities, we do not believe 
this action is necessary.

H. Reservation or Allocation of Water for the Natural System

    The provisions in the proposed regulations concerning the 
reservation or allocation of water for the natural system were of 
interest to a number of parties. A brief discussion of the legislative 
foundation of these provisions proves helpful in understanding these 
comments.
    The Plan authorized in WRDA 2000 is a framework plan designed to 
improve the distribution of water to the South Florida ecosystem. In 
accordance with section 601(f) of WRDA 2000, the Secretary of the Army, 
in coordination with the non-Federal sponsor, must prepare a Project 
Implementation Report before proceeding with an individual project that 
is included in the Plan. Section 601(h)(4)(A) of WRDA 2000 states that 
the Project Implementation Report must, among other items, identify the 
amount of water to be reserved or allocated for the natural system in 
order to provide for the appropriate quantity, timing, and distribution 
of water dedicated and managed for the natural system, and comply with 
applicable water quality and permitting standards. Section 
601(h)(4)(B)(2) of WRDA 2000 specifies that the reservation or 
allocation of water for the natural system will be implemented under 
State law and must be made before the Department of the Army can 
execute a Project Cooperation Agreement for a project.
    Several commenters expressed concern about the process for 
verifying that a reservation or allocation of water for the natural 
system has been made under State law. One commenter believed that the 
regulations should clarify the process for determining reservations by 
establishing a restoration target of water to be reserved or 
established for each area of the ecosystem. Another commenter requested 
that the Corps of Engineers develop procedures for verifying that the 
reservation or allocation of water identified in the Project 
Implementation Report has been executed under State law. Two commenters 
believed that the requirement to amend the Project Cooperation 
Agreement (PCA) whenever the State revises the reservation limits the 
State's discretion to make appropriate reservations under State law. 
These commenters also believe that the requirement to revise the PCA is 
unnecessary as the State is required to make reservations that are 
consistent with the requirements of the President-Governor agreement of 
January 9, 2002, and that agreement is specifically enforceable in 
court. Both the State of Florida and the South Florida Water Management 
District expressed the view that in enacting WRDA 2000, Congress had 
not preempted State water law and that the programmatic regulations 
should not impede or interfere with Florida water law. Several 
commenters

[[Page 64208]]

were concerned that under the proposed regulations, changes to 
reservations or allocations of water could be made without the same 
congressional and public involvement that occurred for the initial 
reservation. Several Senators, while recognizing that reservations may 
need to be revised, expressed the view that because Congress approves 
projects based on a quantification of water, it also has a 
responsibility to ensure that when any change to a reservation of water 
occurs, that the Project Cooperation Agreement be changed to account 
for de minimus changes or changes consistent with the purposes of the 
Plan, or that the change be authorized by Congress.
    Many commenters observed that the proposed regulations did not 
address the possibility that the actual performance of a project or 
project component might not meet the performance expected in the 
Project Implementation Report (PIR). As explained, WRDA 2000 requires 
that the Secretary not execute a Project Cooperation Agreement until a 
reservation or allocation of water for the natural system has been 
executed under State law. This raises the potential for problems under 
the provisions in WRDA 2000 that require sufficient reservations of 
water for the restoration of the natural system to be made under State 
law in accordance with the PIR for that project and provisions in the 
savings clause of WRDA 2000 that prohibit the elimination or transfer 
of existing legal sources of water. The problem arises if the actual 
performance of a project does not meet the projections of the water to 
be produced by the project or component laid out in the PIR. This led 
us to conclude that the final regulations must contain a discussion of 
what actions should be taken if a project or component does not perform 
as expected. This issue arises because the performance of a project or 
component will impact the reservation of the appropriate quantity, 
timing, and distribution of water dedicated and managed for the natural 
system, and whether a new source of water supply of comparable quantity 
and quality has been provided to replace an existing legal source, as 
required by the savings clause. The amount of water identified in the 
PIR is only a projection and the actual amount of water produced by a 
project will only be known when the project has been operated. The 
proposed regulations also were designed not to interfere in the State 
reservation process while providing, consistent with Congressional 
intent, that the reservation remain consistent with the agreements 
reached between the State and Federal government in the Project 
Cooperation Agreement.
    The proposed regulations recognized that reservations or 
allocations of water are a State responsibility. We attempted to ensure 
that the purpose of CERP reservations were met in the final regulations 
by requiring that the Project Cooperation Agreement include a finding 
that the required reservation has been made before execution of a 
Project Cooperation Agreement and by providing that the parties execute 
an amendment to the agreement if there is a change in the reservations. 
The final regulations also specify that ``State law'' includes 
reservations or allocations of water made by the South Florida Water 
Management District or the Florida Department of Environmental 
Protection under authority of Florida law. The intent was to preserve 
the State's control over its reservation and allocation process while 
also protecting the Federal interest in proceeding with the project 
only if adequate water had been reserved for the natural system.
    In order to clarify our process and provide further assurances to 
concerned parties, the final regulations include provisions which state 
that prior to the execution of the Project Cooperation Agreement, the 
District Engineer will verify that the initial reservation has been 
made by the State, and that the District Engineer's verification will 
be referred to in the Project Cooperation Agreement and made available 
to the public. This provision is consistent with the right of third 
parties to enforce the reservation provisions of the President-Governor 
agreement of January 9, 2002. The final regulations retain the 
provision in the proposed regulations that reservations or allocations 
of water are a State responsibility and that any change to the 
reservation or allocation of water for the natural system made under 
State law will require an amendment to the Project Cooperation 
Agreement. The final regulations also retain the provision in the 
proposed regulations that the District Engineer will, in consultation 
with other agencies and the Tribes, make a determination, after 
considering any changed circumstances or new information since 
completion of the PIR, that the revised reservation or allocation 
continues to provide for an appropriate quantity, timing, and 
distribution of water dedicated and managed for the natural system and 
satisfies the requirements of the project-specific assurances of CERP.
    The final regulations also provide that the Secretary of the Army 
will notify the appropriate committees of Congress if a change in 
reservation is made after approval of the PIR. The Secretary's and the 
State's reasons for changing the reservation and information about any 
new or changed circumstances will also be provided to Congress. This 
provision will assist Congressional oversight of any project, and its 
oversight of the integrity of the reservation process.
    We feel that these measures provide adequate assurances that the 
requirements of WRDA 2000 will be followed while not infringing upon 
the authority of the State of Florida. The open process also ensures 
both government and public oversight.

I. Interim Goals

    Many comments focused on development of the interim goals. As 
background, section 601(h)(3)(c)(i)(III) of WRDA 2000 requires that the 
``Programmatic regulations * * * establish a process * * * to ensure 
the protection of the natural system consistent with the goals and 
purposes of the Plan, including the establishment of interim goals to 
provide a means by which the restoration success of the Plan may be 
evaluated throughout the implementation process.'' Interim goals 
provide a means of tracking restoration performance and for 
periodically evaluating the accuracy of predictions of system responses 
to the effects of the Plan. Progress towards meeting the interim goals 
is to be reported to Congress as part of the periodic reports required 
by WRDA 2000.
    There was universal agreement among agencies, tribes, interest 
groups, and the public that interim goals will be useful for measuring 
the restoration success of the Plan; however, there was disagreement 
about whether the interim goals should be included in the final 
programmatic regulations. Some commenters believed that WRDA 2000 
required that the interim goals be included in the programmatic 
regulations. In contrast, other commenters maintained that WRDA 2000 
merely required that the regulations develop ``a process'' for 
establishing interim goals, and did not require that the goals 
themselves be in the regulations. Other commenters expressed views that 
did not relate to statutory considerations. Some of these commenters 
believed that it was important to include the interim goals in the 
programmatic regulations to give them appropriate visibility and to 
ensure that the interim goals are actually met. These commenters also 
believed that including the interim goals in the regulations would have 
the additional benefit of enabling the public to take part in the 
process of establishing the goals. Another group of

[[Page 64209]]

commenters realized that we could not include the interim goals in the 
regulations now but urged that they be made a part of the regulations 
at a later time. In this regard, five Senators wrote: ``We understand 
that the interim goals will not be ready to include in the regulations 
before they are finalized, but we urge the Corps to include these goals 
when they are established rather than relegating them to guidance 
documents.'' Two Congressmen commented that the final rule should 
provide for ``adoption of interim restoration goals once the 
programmatic regulations are completed.''
    Other comments maintained that interim goals should not be included 
in the programmatic regulations. Some pointed out that the Plan 
incorporates adaptive management, continuously assessing and adapting 
to new information and circumstances. They believe that incorporating 
fixed goals into regulations is inconsistent with adaptive management. 
Some commenters maintain that the rulemaking process is structured and 
cumbersome and that it is impractical to establish and amend interim 
goals through such a time-consuming process. These commenters believe 
that placing the interim goals in the programmatic regulations would 
delay the process of adopting and amending the goals, which is 
inconsistent with the concept of adaptive management. Other commenters 
were also concerned with delays but their concerns relate to 
identifying the interim goals in an Interim Goals Agreement independent 
of the regulations and making this agreement subject to the concurrence 
of the Secretary of the Interior and the Governor. These commenters 
maintain that the statute only grants the Secretary of the Interior and 
the Governor a concurrence right in the programmatic regulations and 
extending this right to the Interim Goals Agreement will simply cause 
delays.
    In reviewing the comments, it was apparent that there was 
significant disagreement on exactly what the interim goals should be. 
One commenter observed that the interim goals should not include 
ecological goals as that could subvert the hydrological basis for the 
Plan. Most commenters who maintained that interim goals must be 
included in the regulations did not give examples or provide 
descriptions of the interim goals. Even those who thought that interim 
goals should be included in the final regulations recognized that 
additional time was required to perform more modeling related to the 
interim goals. These commenters understood the importance of modeling 
in establishing interim goals that are an effective measure of the 
Plan's progress toward restoration. A number of commenters, including 
the Miccosukee Tribe of Indians of Florida, expressed a desire to 
review and comment on the interim goals before they are set forth in 
the Interim Goals Agreement.
    As a threshold matter, we think it is important to acknowledge the 
significance of the interim goals. The interim goals provide the 
yardstick that will measure the success of the restoration effort. It 
will not be possible to fairly measure the success or failure of the 
Plan without appropriate interim goals. The final regulations establish 
principles that will guide the development of the interim goals and the 
execution of the Interim Goals Agreement discussed in Sec.  385.38(a). 
These principles will appropriately involve Tribes, governmental 
interests and the public in the process. The regulations do not contain 
the specific interim goals because more time is needed to model them to 
satisfaction; therefore, the final regulations retain the concept of 
establishing the interim goals in an Interim Goals Agreement. The 
regulations provide that the public will have the opportunity to review 
and comment on the Interim Goals Agreement before the agreement is 
finalized. The regulation also makes clear that interim goals are 
targets for use by the agencies and Congress in evaluating the success 
of the restoration effort. They are not standards or schedules 
enforceable in court. The final regulations provide for the development 
and use of interim goals that include water quality and ecological 
indicators in addition to indicators characteristic of anticipated 
hydrological performance. These indicators will be helpful in making 
meaningful judgments about the performance of the Plan.
    In order to address the concern that interim goals be given 
appropriate visibility, and to clarify the relationship between the 
interim goals and the programmatic regulations, the final regulations 
also contain a new section, 385.1(c), that clarifies our interpretation 
of the statutory assurances provided for in section 601(h) of WRDA 2000 
and how the processes, tools and enforcement mechanism established in 
this section of the Act constitute an integrated framework for assuring 
that the goals and purposes of the Plan are achieved. The section 
clarifies that the programmatic regulations provide a process for 
developing tools, including Project Implementation Reports, Project 
Cooperation Agreements, Operating Manuals, interim goals, and other 
tools established in the regulations, which are used to guide the 
planning implementation and evaluation of the project. Section 601(h) 
also provides an enforcement mechanism, the Agreement between the 
President and the Governor, under which the State is to ensure, by 
regulation or other appropriate means, that water made available by 
each project in the Plan shall not be permitted for a consumptive use 
or otherwise made unavailable by the State until such time as 
sufficient reservations of water for the restoration of the natural 
system are made under State law in accordance with the project 
implementation report and consistent with the Plan. The President and 
the Governor signed this Agreement on January 9, 2002.
    The new Sec.  385.1(c) further directs the Secretary of the Army to 
ensure that the public understands the linkage between the process, 
tools, and enforcement mechanism and can monitor the effectiveness of 
this integrated framework in assuring that the goals and purposes of 
the Plan are achieved, as provided for in the programmatic regulations, 
by providing for public notice and comment in the development of the 
tools; providing notice of final action on tools; making available on 
the world-wide web or by other appropriate means final, and where 
appropriate draft, copies of all tools; and explaining through these 
regulations and by other appropriate means the process for developing 
the tools, the linkage between the process, tools and enforcement 
mechanism, and the means by which these elements constitute an 
integrated framework for assuring that the goals and purposes of the 
Plan are achieved.
    The Restoration Coordination and Verification (RECOVER) team will 
use the principles set forth in the proposed regulations to develop and 
recommend by no later than six months after the effective date of the 
programmatic regulations, a set of interim goals for implementation of 
the Plan. This date was set in recognition of the completion dates for 
the pre-CERP baseline and the Master Implementation Sequencing Plan. 
RECOVER has already begun work in order to meet the deadline.
    The final regulations specify that the interim goals will identify 
improvements in quantity, timing, and distribution of water in five-
year increments that begin in 2005, with the goals reflecting the 
results expected to be achieved by 2010 and for each five-year 
increment thereafter. As stated, the interim goals also will include 
indicators for water quality improvement and ecological responses,

[[Page 64210]]

such as increases in extent of wetlands, improvements in habitat 
quality, and improvements in native plant and animal abundance. While 
hydrologic interim goals will assess the Plan's success in restoring 
the hydrology of the region, we believe that the development and use of 
indicators for water quality improvement and ecological responses is 
necessary to assess the Plan's success in achieving the ultimate goal 
of restoration of a healthy ecosystem. The final regulations recognize 
that programs and activities that are independent of CERP may influence 
the achievement of improvements in water quality and desired ecological 
responses. The extent of the influence of these programs and activities 
should be assessed and described at the time goals are developed, and 
should be taken into account as the Plan is subsequently evaluated 
relative to its goals and purposes. In addition, the final regulations 
include specific water quality indicators for RECOVER to consider.
    The final regulations envision that RECOVER will provide its 
recommendations to the Army Corps of Engineers, the South Florida Water 
Management District, and the Department of the Interior for 
consideration. A proposed Interim Goals Agreement shall be developed by 
the Secretary of the Army, the Secretary of the Interior and the 
Governor in consultation with the Miccosukee Tribe of Indians of 
Florida, the Seminole Tribe of Florida, the Environmental Protection 
Agency, the Department of the Commerce, other Federal, State, and local 
agencies, and the South Florida Ecosystem Restoration Task Force. 
Interim goals will be memorialized in an agreement to be signed by the 
Secretary of the Army, the Secretary of the Interior, and the Governor 
of the State of Florida no later than one year after the effective date 
of the programmatic regulations. The Secretary of the Army will provide 
a notice of availability of the proposed agreement to the public in the 
Federal Register, seek public comments, and execute the final agreement 
with the Secretary of the Interior and the Governor.
    As discussed previously, the final regulations do not envision that 
interim goals will be included in the programmatic regulations 
themselves. The regulations provide that the Department of the Army 
will memorialize the Interim Goals Agreement in appropriate Corps of 
Engineers guidance. However, the regulations do establish requirements 
that are triggered if the interim goals are not achieved as 
anticipated. If the interim goals have not been met or are unlikely to 
be met, then the Corps of Engineers and the South Florida Water 
Management District must determine why the goals have not been met or 
are unlikely to be met and either initiate adaptive management actions 
to achieve the interim goals as soon as practical, consistent with the 
purposes of the Plan and consistent with the interim targets, or 
recommend changes to the interim goals.
    Finally, the final regulations establish a process for revising the 
interim goals in five-year increments or sooner, if appropriate, in 
light of new information.

J. Interim Targets for Other Water-Related Needs of the Region

    The overarching objective of the Plan is the restoration, 
preservation, and protection of the South Florida ecosystem while 
providing for other water-related needs of the region, including water 
supply and flood protection. Identifying incremental targets for the 
other water-related needs of the region will help evaluate the success 
of implementation of the Plan in achieving the non-restoration goals of 
the Plan. The proposed regulations included provisions establishing a 
process for evaluating progress on meeting the other water-related 
needs of the region.
    These provisions drew comments from several parties. One commenter 
suggested that the process for developing targets for other water-
related needs of the region should closely parallel the process for 
developing the restoration-related interim goals. Two commenters 
believed that the date specified in the proposed regulations for 
RECOVER to provide recommendations on the targets should be extended 
because the targets are influenced by information that will be 
developed in connection with the pre-CERP baseline and the Master 
Implementation Sequencing Plan. One commenter expressed the view that 
the targets for other water-related needs should not be established 
before the adoption of the restoration-related interim goals. Other 
commenters were concerned that the proposed regulations did not address 
the question of how issues would be resolved if conflicts arise between 
achieving the interim goals and the targets for other water-related 
needs.
    The final regulations provide that by not later than six months 
after the effective date of the programmatic regulations, RECOVER will 
recommend interim targets for the other water-related needs of the 
region, that are consistent with the interim goals. The Secretary of 
the Army and the Governor, in consultation with others, including the 
South Florida Ecosystem Restoration Task Force, will develop the 
interim targets. RECOVER already has begun work in order to meet the 
deadline. The final regulations specify that the Secretary of the Army 
and the Governor will establish the targets within one year of the 
effective date of the programmatic regulations, but not prior to the 
execution of the Interim Goals Agreement. Like interim goals directed 
at evaluating the restoration success of the Plan, interim targets for 
other water-related needs of the region will be incorporated into 
appropriate agency guidance.
    The final regulations retain the idea of drawing a distinction 
between interim goals, which are directed at evaluating the restoration 
success of the Plan, and interim targets for achieving the other water-
related needs of the region. In the regulations, we use the term 
``interim'' in front of the term ``targets'' to show that the interim 
targets for other water-related needs, which evaluate progress towards 
providing for these purposes, are parallel to the interim goals, which 
measure restoration success.
    Like the provisions for interim goals, the final regulations 
specify that the interim targets will identify improvements in 
quantity, timing and distribution of water in five-year increments that 
begin in 2005, with the targets reflecting the results expected to be 
achieved by 2010 and for each five-year increment thereafter. The 
interim targets will include indicators for the frequency of water 
restrictions in various areas and the frequency of meeting salt-water 
intrusion protection criteria for different areas. Again, like the 
provisions for interim goals, the final regulations do establish 
requirements that are triggered if the interim targets are not achieved 
as anticipated. If the interim targets have not been met or are 
unlikely to be met, then the Corps of Engineers and the South Florida 
Water Management District must determine why the targets have not been 
met or are unlikely to be met and either initiate adaptive management 
actions to achieve the interim targets as soon as practical, consistent 
with the purposes of the Plan and consistent with the interim goals, or 
recommend changes to the interim targets.
    Finally, the final regulations make clear that the interim targets 
are intended to facilitate inter-agency planning, monitoring, and 
assessment throughout the implementation process and are not standards 
or schedules enforceable in court.

[[Page 64211]]

K. Role of the Department of the Interior

    Several commenters recommended that the Department of the Interior 
be given a more prominent role in implementation of the Plan because it 
administers significant lands and natural resources involved in the 
Plan. These commenters felt that the concurrence provisions in the 
proposed regulations diminished the role of the Department of the 
Interior envisioned in WRDA 2000. They felt that the concurrence 
provisions in the proposed regulations did not give the Secretary of 
the Interior an appropriate role in approving the guidance memoranda 
because the Secretary of the Army could finalize these documents after 
giving good faith consideration to comments from the Secretary of the 
Interior, notwithstanding the fact that the Secretary of the Interior 
might have concerns about finalizing the regulations. In addition, 
these commenters believe that the Department of the Interior should 
have a concurrence role on other programmatic decisions such as 
Comprehensive Plan Modification Reports, the Master Implementation 
Sequencing Plan, and System Operating Manual. Other commenters noted 
that the concurrence process in WRDA 2000 only extends to the 
programmatic regulations and that section 601(h)(3)(C)(ii) expressly 
prohibits the requirement for concurrence on Project Implementation 
Reports, Project Cooperation Agreements, Operating Manuals for 
individual projects, and other documents relating to the development, 
implementation, and management of individual features of the Plan 
unless concurrence is provided for in other laws. These commenters did 
not favor giving the Department of the Interior a greater role in 
implementing the Plan.
    The final regulations give the Department of the Interior a 
concurrence role, along with the Governor of the State of Florida, in 
the development of six specific guidance memoranda related to important 
program-wide aspects of implementing the Plan. These guidance memoranda 
address the: (1) General format and content of Project Implementation 
Reports; (2) processes for evaluation of alternatives developed for 
Project Implementation Reports, their cost effectiveness and impacts; 
(3) general content of operating manuals; (4) general processes for the 
conduct of assessment activities of RECOVER; (5) process for 
identifying if an elimination or transfer of existing legal sources of 
water will occur as a result of implementation of the Plan; and (6) 
process used in Project Implementation Reports for identifying the 
appropriate quantity, timing, and distribution of water dedicated and 
managed for the natural system. In accordance with section 
601(h)(3)(c)(ii) of WRDA 2000, the regulations prohibit concurrence by 
the Secretary of the Interior and the Governor of Florida on Project 
Implementation Reports, Project Cooperation Agreements, Operating 
Manuals for individual projects, and other documents relating to 
individual features of the Plan.
    We revised the concurrence provisions in the final regulations so 
that the approval process for the guidance memoranda parallels the 
statutory concurrence process for the programmatic regulations. We 
deleted the language in the proposed regulations that said the Army 
would give ``good faith consideration'' to the concurrence or non-
concurrence statements of the Secretary of the Interior and the 
Governor before approving the guidance memoranda. This language did not 
communicate adequately our intent to obtain the concurrence of the 
Secretary of the Interior and the Governor. Instead, it suggested that 
the Army simply had to fulfill a ministerial coordination requirement 
by asking the Secretary of the Interior and the Governor whether they 
concurred or non-concurred in the guidance memorandum. We felt that 
this language did not convey the Army's intent to actively seek the 
concurrence of the Secretary of the Interior and the Governor prior to 
approving the guidance memoranda.
    The final regulations also provide that the Department of the 
Interior will play a significant role in addressing other issues 
related to the Plan. Like the proposed regulations, the final rule 
gives the Secretary of the Interior, along with the Governor of the 
State of Florida, a concurring role in the Secretary of the Army's 
determination of the pre-CERP baseline. The final regulations also 
envision that interim goals will be established through a formal 
Interim Goals Agreement among the Secretary of the Army, the Secretary 
of the Interior, and the Governor. Further, the Department of the 
Interior plays an important role in the Leadership Group of RECOVER, 
along with several other Federal and State agencies and Tribes.
    Finally, the regulations give the Department of the Interior an 
important consulting role throughout implementation of the program, 
including, among other things, participation on Project Delivery Teams; 
selection and revision of hydrologic models; development of the 
Adaptive Management Program, Project Implementation Reports, Operating 
Manuals, and Comprehensive Plan Modification Reports; development, 
review and revision of changes to the Master Implementation Sequencing 
Plan; and the development of the means for monitoring progress towards 
other water-related needs of the region as provided for in the Plan.
    Read together, we believe that these provisions give the Department 
of the Interior as well as the Governor of the State of Florida an 
important and appropriate role in implementing the Plan. This prominent 
role is consistent with Interior's natural resources stewardship and 
land management responsibilities.

L. Role of South Florida Ecosystem Restoration Task Force

    Several commenters felt that the proposed regulations did not give 
the South Florida Ecosystem Restoration Task Force (``Task Force'') an 
appropriate role in Plan implementation. The Task Force is an 
interagency group created by section 528(f) of the Water Resources 
Development Act of 1996 (110 Stat. 3770) (hereinafter ``WRDA 1996'') 
More specifically, the Miccosukee Tribe and the Seminole Tribe 
expressed the view that the Task Force could play a constructive role 
in facilitating an open discussion of issues related to implementation 
of the Plan among Federal, State, Tribal, and local interests. The 
Seminole Tribe also commented that information about alternatives 
developed for Project Implementation Reports should be shared with the 
Task Force before the completion of the draft Project Implementation 
Report.
    The responsibilities of the Task Force are found in section 528 of 
WRDA 1996 and section 601 of WRDA 2000. In general, section 528 
envisions that the Task Force will coordinate programs and research on 
ecosystem restoration, exchange information, provide assistance and 
facilitate resolution of conflicts involving the restoration of the 
South Florida ecosystem. Section 601 of WRDA 2000 gives the Task Force 
a consultation responsibility concerning the establishment of an 
independent scientific review panel to review the progress that is 
being made toward achieving the natural system restoration goals of the 
Plan.
    The final regulations recognize that the Task Force can play a 
constructive role in Plan implementation. The regulations acknowledge 
the benefits that result from sharing issues with the

[[Page 64212]]

Task Force and set forth the intention of the agencies involved in 
implementing the Plan to regularly report to the Task Force as they do 
currently. We will continue to regularly report to the Task Force and 
its working group on Plan implementation matters and we expect that the 
Task Force will continue to provide valuable input regarding 
implementation of the Plan.
    The South Florida Water Management District and the Jacksonville 
District already regularly report to the Task Force and its working 
group on CERP matters. We expect that informal coordination among the 
implementing agencies, the Task Force and its working group and its 
other advisory bodies will continue. For example, the Task Force may 
wish to have regular briefings on CERP implementation issues, on the 
Master Implementation Sequencing Plan, on Project Implementation 
Reports, or on Operating Manuals; or the Task Force may decide to have 
RECOVER provide the working group with information on work in progress. 
Further, we contemplate that the Task Force will determine, on a case-
by-case basis, the manner and extent to which it is appropriate for it 
to be involved in CERP in order to carry out its existing statutory 
responsibilities.
    The final regulations assure that the Task Force will be informed 
of certain matters of significance. They specifically state that the 
Task Force will be notified of and given an opportunity to review and 
provide comment on a variety of issues, including but not limited to, 
interim goals, Project Implementation Reports, Pilot Project Design 
Reports, Pilot Project Technical Data Reports, the pre-CERP baseline, 
assessment reports, guidance memoranda, Master Implementation 
Sequencing Plan, Comprehensive Plan Modification Reports, periodic CERP 
updates, and reports to Congress. Finally, the regulations require that 
the Task Force shall be provided with information on the alternatives 
developed and evaluated for the Project Implementation Reports before 
completion of the draft Project Implementation reports.

M. Consultation

    There was general agreement among those commenting on the proposed 
regulations that it is important for the agencies implementing the Plan 
to consult with interested parties. The Corps of Engineers and non-
Federal sponsors are responsible for implementation of the Plan. 
However, successfully implementing the Plan requires more than the 
involvement of these parties, it also requires extensive involvement by 
Tribes, Federal, State and local agencies.
    One commenter recommended that the Tribal consultation provisions 
in the proposed regulations be revised to specifically state that the 
consultation with Tribes should be conducted on a government-to-
government basis. This commenter also felt that the Federal trust 
responsibility for Tribes should not be tied to one Executive Order 
alone.
    Other commenters expressed concerns about the time that would be 
allowed for consultations. Several commenters expressed the view that 
the time allowed for consultation should reflect the complexity of the 
task or issue under review. Another commenter suggested that the 
Tribes, agencies, and public be informed of the closing dates for 
consultation.
    The final regulations contemplate that the implementing agencies 
will consult fully and openly with the Department of the Interior, the 
Environmental Protection Agency, the Department of Commerce, the 
Miccosukee Tribe of Indians of Florida, the Seminole Tribe of Florida, 
the Florida Department of Environmental Protection, and other Federal, 
State, and local agencies as the Plan is implemented. These 
consultation provisions ensure that interested parties are 
appropriately involved in implementing, evaluating, and modifying the 
Plan when necessary. The final regulations specifically state that the 
consultation with the Tribes will be conducted on a government-to-
government basis and in compliance with applicable laws, Executive 
Orders, and regulations.
    The final regulations contemplate that the consultations on Plan 
related matters will facilitate a timely exchange of views among the 
parties. This will ensure that the consultation process is not used as 
a tool to delay or veto actions. The final regulations also envision 
that the Corps of Engineers and the non-Federal sponsor will set 
reasonable limits on the time for consultations and inform parties of 
those limits, after giving appropriate consideration to the 
significance of the proposed action, the degree to which relevant 
information is known or obtainable, the degree to which the action is 
controversial, the state of the art of analytical techniques, the 
number of persons affected, the consequences of delay, and other time 
limits imposed on the agency by law, regulations, or Executive Order.

N. Operating Manuals

    The provisions in the proposed regulations on Operating Manuals 
were of interest to a number of commenters. These manuals provide 
operational guidance that is intended to ensure that the goals and 
purposes of the Plan are achieved. Project operating manuals provide 
guidance on operational concerns relevant to individual projects. 
System Operating Manuals provide guidance on operational concerns 
related to projects in the aggregate to ensure that projects function 
in a coordinated, systematic way. Several commenters expressed concerns 
that the proposed regulations would allow unconstrained deviations from 
the approved Operating Manuals because of provisions in the regulations 
that allowed for adjustments during years when substantial deviations 
from expected rainfall and runoff occur, or when required for adaptive 
management reasons. These commenters also were concerned that the 
precise circumstances in which these temporary deviations would be 
allowed were not specified. Another commenter expressed the view that 
the final regulations should include a provision that would ensure any 
changes to Operating Manuals are consistent with the goals and purposes 
of the Plan. Finally, one commenter felt that the final regulations 
should include a provision stating that the drought contingency plans 
that are mentioned in the regulations discussing Operating Manuals 
should be consistent with the Seminole Tribe's water rights compact.
    The final regulations retain the concept of developing Project 
Operating Manuals and System Operating Manuals. They contain new 
provisions that allow for public review and comment before they are 
finalized. The regulations also specify that the System Operating 
Manual will be developed by December 31, 2005. They contemplate that a 
Project Operating Manual will be developed for each project and that a 
draft Project Operating Manual will be included as an appendix in the 
Project Implementation Report. This will ensure that the operation of 
the project is linked to the expected benefits of the project 
recommended in the Project Implementation Report. The final regulations 
state that the final Project Operating Manual will be prepared as soon 
as possible after completion of the operational testing and monitoring 
phase of the project. Additionally, a provision has been added to the 
regulations that will require modifications to operating manuals to be 
consistent with the goals and purposes of the Plan. We have deleted the 
proposed provision of concern regarding yearly adjustments and have

[[Page 64213]]

described the circumstances for allowing temporary deviations due to 
emergencies and unplanned minor deviations. The final regulations also 
require that the drought contingency plans be consistent with the 
Seminole water rights compact.

O. Master Implementation Sequencing Plan

    Several parties commented on the provisions in the proposed 
regulations concerning the Master Implementation Sequencing Plan. This 
Master Implementation Sequencing Plan, identified as the framework for 
restoration of the South Florida ecosystem, covers 68 components that 
will be implemented as approximately 45 separate projects. The proposed 
regulations establish a process for developing a Master Implementation 
Sequencing Plan and a process for specifying that projects will be 
sequenced and scheduled to maximize the achievement of the goals and 
purposes of the Plan, including the achievement of the interim goals 
and interim targets at the earliest possible time, to the extent 
practical given scientific, technical, funding, contracting, and other 
constraints. One commenter felt that the Master Implementation 
Sequencing Plan should reflect the formulation and evaluation 
provisions and the results of Plan efforts currently underway. Another 
commenter believed that the Master Implementation Sequencing Plan 
should take into account the savings clause of WRDA 2000.
    The final regulations contemplate that the Master Implementation 
Sequencing Plan will be developed within one year of the effective date 
of the programmatic regulations, following consultation with the 
Miccosukee Tribe of Indians of Florida, the Seminole Tribe of Indians, 
the U. S. Department of the Interior, the U.S. Department of Commerce, 
U.S. Environmental Protection Agency, the Florida Department of 
Environmental Protection, and other Federal, State and local agencies, 
as well as in consultation with the South Florida Ecosystem Restoration 
Task Force. They provide for sequencing and scheduling projects to 
ensure that each project delivers benefits, including benefits to the 
natural system, that justify the project, in the context of the then 
existing Central and Southern Florida Project, as modified by any Plan 
components that already have been implemented. The final regulations 
envision that the Master Implementation Sequencing Plan will base the 
sequence and schedule of projects on the best scientific, technical, 
funding, contracting, and other information available. They also state 
that the Master Implementation Sequencing Plan will be revised as 
necessary to integrate new information such as updated schedules from 
Project Management Plans, the results of pilot projects and other 
studies, updated funding information, revisions to the Plan, 
Congressional or other authorization and direction, or information from 
the adaptive management program, including achievement of the expected 
performance level of the Plan and the interim goals and targets.

P. Adaptive Management Program

    Several commenters thought that it was important to modify the 
proposed regulation's provisions concerning adaptive management in 
order to reinforce the importance of this management concept in 
implementing the Plan. Adaptive management is a crucial element of the 
Everglades Restoration Plan. It involves refining the Plan during its 
implementation to respond to new information or technologies to ensure 
that the goals and purposes of the Plan are fulfilled. The report of 
the Senate Committee on Environment and Public Works on WRDA 2000 
(Senate Report No. 106-362) contains a discussion of that committee's 
expectations with respect to adaptive management:

    The committee does not expect rigid adherence to the Plan as it 
was submitted to Congress. This result would be inconsistent with 
the adaptive management principles in the Plan. Restoration of the 
Everglades is the goal, not adherence to the modeling on which the 
April 1999 Plan was based. Instead, the committee expects that the 
agencies responsible for project implementation report formulation 
and Plan implementation will seek continuous improvement of the Plan 
based upon new information, improved modeling, new technology and 
changed circumstances.

    One commenter suggested that the definition of adaptive management 
be revised to clarify its meaning. Another commenter pointed out that 
the Corps of Engineers and the South Florida Water Management District 
currently are in the process of updating the Plan to ensure that it is 
based on the latest available information and modeling. This commenter 
recommended that a direction to complete this update be included in the 
final regulations since the Plan is based on information and 
projections that are approximately five years old.
    The final regulations contain a new definition of adaptive 
management. The regulations define adaptive management to mean:

    The continuous process of seeking a better understanding of the 
natural system and human environment in the South Florida ecosystem, 
and seeking continuous refinements in and improvements to the Plan 
to respond to new information resulting from changed or unforeseen 
circumstances, new scientific and technical information, new or 
updated modeling; information developed through the assessment 
principles contained in the Plan; and future authorized changes to 
the Plan in order to ensure that the goals and purposes of the Plan 
are fulfilled.

    The final regulations also provide for the establishment of an 
adaptive management program that will guide the implementation of the 
Plan. This program will be used to assess the responses of the South 
Florida ecosystem to the Plan and to determine whether these responses 
match expectations, including anticipated performance levels. If the 
interim goals or targets are not achieved as anticipated, the Corps of 
Engineers and the South Florida Water Management District must 
determine why not, followed by either adaptive management actions to 
achieve the goals or targets as soon as practicable, or revisions to 
the goals or targets as appropriate.
    The final regulations envision that the Corps of Engineers and the 
South Florida Water Management District, based on technical information 
developed by RECOVER, will prepare periodic assessment reports as part 
of this adaptive management program. These reports will be externally 
peer reviewed and used by the implementing agencies in consultation 
with others to evaluate whether the goals and purposes of the Plan are 
being achieved and to determine whether improvements to the Plan are 
warranted. The reports should prove invaluable in gaining an 
understanding of the Plan's effectiveness and in ensuring that its 
goals and purposes are fulfilled. The regulations also provide that in 
considering how the Plan may be improved, the Corps of Engineers and 
non-Federal project sponsor specifically shall consider modifying the 
design or operational plan for a project of the Plan not yet 
implemented; modifying the sequence or schedule for implementation of 
the Plan; adding new components to the Plan or deleting components not 
yet implemented; removing or modifying a component of the Plan already 
in place; or a combination of any of these actions.
    The final regulations also specify that periodic CERP updates shall 
be performed, beginning within six months of the effective date of the 
programmatic regulations and whenever necessary to ensure that the 
goals and purposes of

[[Page 64214]]

the Plan are achieved, but not any less often than every five years. 
The periodic CERP updates will be accomplished by the Corps of 
Engineers and the South Florida Water Management District, in 
consultation with Tribes, Federal, State, and local agencies, to 
conduct an evaluation of the Plan using new or updated modeling that 
includes the latest scientific, technical, and planning information. 
The periodic CERP updates will provide a basis for determining if 
management actions are necessary to seek improvements in the Plan based 
upon new information resulting from changed or unforeseen 
circumstances, new scientific and technical information, new or updated 
modeling; information developed through the assessment principles 
contained in the Plan; and future authorized changes to the Plan. The 
final regulations direct that as part of the periodic CERP update, the 
Corps of Engineers and the South Florida Water Management District will 
determine the total quantity of water that is expected to be generated 
by implementation of the Plan, including the quantity needed for the 
natural system and human environment.
    The consultation provisions of the proposed regulations have been 
expanded to provide that the Corps of Engineers and the South Florida 
Water Management District also shall consult with the South Florida 
Restoration Task Force in conducting the evaluation of the Plan. The 
final regulations no longer provide for review of the assessment report 
by the independent science review panel. The independent science review 
panel will prepare its own report to Congress with its independent 
assessment of ecological indicators. It was deemed appropriate to keep 
these reports separate in order to provide for a truly comprehensive 
review of Plan performance and to ensure the independence of the 
science review panel by insulating it from any other aspect of Plan 
implementation or assessment beyond its statutory mission.

Q. Comprehensive Plan Modification Reports

    We anticipate that the Plan will need to be revised periodically as 
part of the adaptive management program to reflect new information and 
to improve performance. The final regulations provide that a 
Comprehensive Plan Modification Report shall be prepared whenever 
significant revisions to the Plan are necessary to ensure that the 
goals and purposes of the Plan are achieved. The Comprehensive Plan 
Modification Report will be prepared using a process that parallels the 
process for developing a Project Implementation Report. The final 
regulations provide that the final approved Comprehensive Plan 
Modification Report shall be transmitted to Congress. The final 
regulations also provide that the Comprehensive Plan Modification 
Report will include updated water budget information for the Plan, 
including the total quantity of water that is expected to be generated 
by implementation of the Plan, the quantity needed for the natural 
system in order to attain restoration goals, and the quantity generated 
for use in the human environment. In general, Plan modifications should 
be consistent with achieving the interim goals and targets. In some 
cases, the process of developing a Comprehensive Plan Modification 
Report (which includes consultation with Federal, State, and local 
agencies and public notice and comment) could identify necessary 
changes to the interim goals or targets. In this case, the goals or 
targets would be revised accordingly, as provided for in the final 
regulations.
    We did not receive any comments on the proposed regulations 
provisions concerning Comprehensive Plan Modification Reports. We did 
make several changes in the proposed regulations to conform to the 
general comments made on other sections and to provide more detailed 
information related to these reports. For example, the final 
regulations state that the Comprehensive Plan Modification Report will 
be initiated at the discretion of the Corps of Engineers and South 
Florida Water Management District, in consultation with Federal, State, 
and local agencies and the Tribes. The regulations also set forth a 
series of general requirements related to the preparation of these 
reports.

R. Pre-CERP Baseline

    The provisions in the proposed regulations concerning the pre-CERP 
baseline were of interest to a number of parties. Developing the pre-
CERP baseline is an important step in ensuring that the goals and 
purposes of the Plan are fulfilled in accordance with WRDA 2000. This 
baseline is a tool for estimating hydrological conditions in the South 
Florida ecosystem on the date of enactment of WRDA 2000. It will be 
used to aid in the determination if existing legal sources of water 
will be eliminated or transferred as a result of project implementation 
and for determining the water made available by the Plan.
    A number of commenters expressed concerns about the concurrence 
provisions for the pre-CERP baseline. These commenters pointed out that 
WRDA 2000 only granted concurrence rights to the Secretary of the 
Interior and the Governor on the programmatic regulations. They believe 
that extending this concurrence process to the pre-CERP baseline was 
unnecessary and would cause delays in developing the baseline. Two 
commenters believed that the pre-CERP baseline should include all 
existing legal sources of water and also should include the levels of 
service for flood protection. One commenter observed that the 
requirement in the proposed rule that the pre-CERP baseline was to be 
consistent with the guidance memorandum for identifying the appropriate 
quantity, timing, and distribution of water to be dedicated and managed 
for the natural system might not be developed before the pre-CERP 
baseline is determined.
    The final regulations provide guidance on developing the pre-CERP 
baseline. They envision that the pre-CERP baseline will include 
information on the quantity, timing, distribution, and quality of water 
in the South Florida ecosystem on the date of enactment of WRDA 2000. 
The regulations state that the pre-CERP baseline will be supported by 
appropriate documentation and will include a description of the 
assumptions on which it is based. Additional work performed by the 
Corps and the South Florida Water Management District with regard to 
the pre-CERP baseline indicates that the pre-CERP baseline does not 
need to be tied to the methodology for identification of water to be 
reserved for the natural system as these are two separate analyses. The 
final regulations require that the recommended project be compared to 
the pre-CERP baseline and other appropriate information to determine if 
an elimination or transfer of legal sources of water will be caused by 
implementation of the project. Therefore, the final regulations do not 
contain the provision from the proposed regulations that require the 
Corps of Engineers and South Florida Water Management District, when 
determining the pre-CERP baseline, to use a method consistent with the 
guidance memorandum that contains instructions for identifying the 
appropriate quantity, timing, and distribution of water dedicated and 
managed for the natural system.
    The final regulations provide that within six months of the 
effective date of the programmatic regulations, the Corps of Engineers 
and the South Florida Water Management District shall, in consultation 
with Tribes, Federal, State, and local agencies develop the pre-CERP 
baseline and

[[Page 64215]]

present it to the Secretary of the Army for consideration, memorialized 
in an appropriate document. The regulations state that the pre-CERP 
baseline shall be developed with the concurrence of the Secretary of 
the Interior and the Governor. The language gives the Secretary of the 
Interior and the Governor the same concurrence opportunity they had on 
the programmatic regulations. While this concurrence process is not 
required by law and will require additional time to fulfill, we believe 
it is appropriate to provide for this process because of the 
significance of the pre-CERP baseline.
    Additionally, the final regulations specify that pre-CERP baseline 
water availability is one of the factors that will be assessed in each 
Project Implementation Report when determining the water that needs to 
be reserved for the natural system. In order to ensure that the levels 
of service for flood protection are not reduced, we have added a 
provision that requires each Project Implementation Report to include 
an analysis that considers the operational conditions included in the 
pre-CERP baseline.

S. Shortfall in Performance by a Project

    Several commenters noted that the proposed regulations did not 
provide guidance on what actions should be taken when the amount of 
water generated by a project is less than the amount estimated when the 
Project Implementation Report was prepared. These commenters believe 
that such a shortfall in performance should be shared in an equitable 
manner among project purposes. One commenter proposed that, if a 
component does not produce the water expected, the shortfall should be 
shared equally. Another commenter proposed that if the actual 
operations of a component do not produce the amount of water expected 
for the natural system and other water-related needs of the region, 
``the shortfall be shared between all anticipated uses on a pro rata 
basis of what the project was expected to produce for each use.'' Other 
commenters want to ensure that the needs of the natural system and the 
savings clause requirements are provided first, before additional water 
for agricultural and urban needs is provided.
    The proposed regulations did not address the shortfall question. 
Since the framework Plan includes 68 components that have different 
functions, we do not consider one general rule concerning shortfalls in 
performance to be appropriate. One unvarying rule for all projects 
might also create problems under the savings clause. The final 
regulations provide that the Project Implementation Report (PIR) will 
include a plan for interim operations of the project in the event that 
the project fails to provide the quantity, timing, or distribution of 
water described in the PIR. The plan will take into account the 
specific purposes of the specific project component addressed in the 
PIR and the overall goals and purposes of the Plan. Under the final 
regulations, management actions must be taken as part of the adaptive 
management program to make permanent adjustments for shortfalls in 
performance on a system-wide basis.

T. Elimination or Transfer of Existing Legal Sources of Water

    Several commenters noted that the proposed regulations did not 
contain a definition of the term ``existing legal sources of water.'' 
Section 601(h)(5)(A) of WRDA 2000 contains a savings clause provision 
that is designed to ensure that an existing legal source of water is 
not eliminated or transferred until a replacement source of water of 
comparable quantity and quality as was available on the date of 
enactment of WRDA 2000 is available. The statute states that ``the 
Secretary and the non-Federal sponsor shall not eliminate or transfer 
existing legal sources of water, including those for--(i) agricultural 
or urban water supply; (ii) allocation or entitlement to the Seminole 
Indian Tribe of Florida * * * (iii) the Miccosukee Tribe of Indians of 
Florida; (iv) water supply for Everglades National Park; (v) water 
supply for fish and wildlife.''
    The report of the Senate Committee on Environment and Public Works 
on WRDA 2000 (Senate Report No. 106-362) describes the intent of the 
prohibition against the elimination or transfer of legal sources of 
water as follows:

    Elimination of existing sources of water supply is barred until 
new sources of comparable quantity and quality of water are 
available; existing authorized levels of flood protection are 
maintained; and the water compact among the Seminole Tribe of 
Florida, the State, and the South Florida Water Management District 
is specifically preserved.

    Although WRDA 2000 uses the term ``existing legal sources of 
water,'' it does not define the term; nor could we find a definition of 
this term elsewhere in Federal or State law. Several commenters 
believed that the term should include all sources of water. According 
to this view, a legal source of water that was available on the date of 
enactment of WRDA 2000 would include water that was accessible and 
could have been used on that date, as well as water that actually was 
used or permitted to be used on that date. These commenters pointed out 
that the statute refers to existing legal ``sources'' not existing 
legal ``uses.'' Other commenters believed that existing legal sources 
of water should be limited to water permitted for consumptive use. 
Still others believed that the term was further limited to consumptive 
uses that not only were permitted, but also were actually used, on the 
date of enactment. One commenter suggested that a guidance memorandum 
be developed that defines an existing legal source of water and 
provides guidance for determining if the implementation of a project 
will cause an elimination or transfer of an existing legal source of 
water.
    The final regulations provide for the development of a guidance 
memorandum that will define ``existing legal sources of water.'' This 
guidance memorandum also will describe the process for determining if 
existing legal sources of water are to be eliminated or transferred and 
for determining if a new source of water of comparable quantity and 
quality as that available on the date of enactment of WRDA 2000 is 
available to replace the water to be lost as a result of implementation 
of the Plan.
    The final regulations also state that the Project Implementation 
Report will include an analysis to determine if the project will cause 
an elimination or transfer of existing legal sources of water. The 
final regulations also state that the recommended project will be 
compared to the pre-CERP baseline and other appropriate information to 
determine if an elimination or transfer of legal sources of water will 
be caused by implementation of the project. If the project will cause 
an elimination or transfer of a source of water, then the Project 
Implementation report will include measures to ensure that such 
elimination or transfer will not take place until a new source of water 
of comparable quantity or quality is available to replace the water 
that would be lost as a result of implementation of the Plan.
    In accordance with WRDA 2000, the regulations make clear that the 
Secretary of the Army and the non-Federal sponsor will not eliminate 
existing legal sources of water, including those for agricultural or 
urban water supply, an allocation or entitlement of the Seminole Tribe 
of Florida, the Miccosukee Tribe of Indians of Florida, water supply 
for Everglades National Park, and water supply for fish and wildlife. 
Some commenters wanted the

[[Page 64216]]

regulation to include a definition for urban water supply. We have not 
included a definition of urban water supply because we believe that 
such a definition should be more appropriately developed with the 
definition of existing legal sources of water that will be defined in 
the required guidance memorandum.

U. Flood Protection

    The WRDA 2000 provisions concerning the maintenance of flood 
protection were of interest to several commenters. Section 601(h)(5)(B) 
of WRDA 2000 contains a savings clause provision that is designed to 
ensure that levels of service for flood protection are not reduced by 
implementation of a project. This provision specifically states 
``implementation of the Plan shall not reduce levels of service for 
flood protection that are `` (i) in existence on the date of enactment 
of this Act; and (ii) in accordance with applicable law.''
    The report of the Senate Committee on Environment and Public Works 
on WRDA 2000 (Senate Report No. 106-362) describes the intent of the 
flood protection savings clause as follows:

    With respect to flood control, the committee intends that 
implementation of the Plan will not result in significant adverse 
impact to any person with an existing, legally recognized right to a 
level of protection against flooding. The committee does not intend 
that, consistent with benefits included in the Plan, this bill 
create any new rights to a level of protection against flooding that 
is not currently recognized under applicable Federal or State law.

    Several commenters felt that the final regulations should contain 
additional guidance on how to interpret the provisions providing for 
the maintenance of flood protection. One commenter believed that the 
savings clause provisions for flood protection also should be extended 
to the natural system and should be interpreted to prevent the transfer 
of excessive water to the natural system. This commenter also felt that 
the final regulations should define the term ``in accordance with 
applicable law.'' Some commenters questioned how the Plan would address 
opportunities for increased levels of flood protection or the provision 
of flood protection in locations where there currently is no flood 
protection. These commenters felt that the regulation should specify 
that during the implementation of the Plan, the Project Delivery Teams 
will consider opportunities for providing additional flood protection.
    We have concluded that the existing levels of service for flood 
protection for a particular area should be determined on a project-by-
project basis. Accordingly, the final regulations specify that Project 
Implementation Reports will include an appropriate analysis and 
consider the operational conditions included in the pre-CERP baseline 
to demonstrate that the levels of service for flood protection that 
were in existence on the date of enactment of WRDA 2000 and is in 
accordance with applicable law will not be reduced by the project. The 
Project Implementation Report process provides numerous opportunities 
for the Project Delivery Team, the public, and the South Florida 
Ecosystem Restoration Task Force, to examine the levels of service of 
flood protection provided by previous projects and any law applicable 
to the specific area affected by the Project Implementation Report. 
Finally, the regulations acknowledge that the overarching objective of 
the Plan is the restoration, preservation, and protection of the South 
Florida ecosystem while providing for other water-related needs of the 
region, including water supply and flood protection. Accordingly, the 
final regulations provide for the evaluation of additional flood 
protection, provided that such flood protection is consistent with the 
other goals and purposes of the Plan.

V. NEPA Compliance

    The Council on Environmental Quality regulations that implement the 
National Environmental Policy Act (NEPA) (40 CFR 1505.1 and 1507.3), 
specify that agencies must issue regulations identifying typical 
classes of actions that normally require environmental impact 
statements, that normally do not require either an environmental impact 
statement or an environmental assessment (categorical exclusions), or 
that normally require environmental assessments but not necessarily 
environmental impact statements. The Corps of Engineers has adopted 
procedures fulfilling this requirement in 33 CFR 230. The final 
regulations consider the actions needed to implement the Plan on a 
system-wide basis and apply the principles of 33 CFR 230 to those 
actions to ensure that the provisions of NEPA are fulfilled. The 
regulations identify certain actions that generally require preparation 
of a NEPA document (either an Environmental Impact Statement or an 
environmental assessment) or that do not require the preparation of a 
NEPA document because they are subject to a categorical exclusion under 
NEPA.
    The final regulations envision that ordinarily the NEPA 
documentation for a particular project will accompany the Project 
Implementation Report. For this reason, other project-specific 
documents such as the Project Cooperation Agreement, Project Management 
Plan, and plans and specifications for the project are listed as 
categorically excluded from NEPA documentation requirements. It is 
important to note that identifying a document as being categorically 
excluded from NEPA does not mean that the environmental effects of the 
action covered by that document will not be analyzed as required under 
NEPA. The Corps of Engineers will fully analyze and consider these 
effects at an appropriate time as required by NEPA. This analysis will 
be accomplished at the time the Corps of Engineers develops its 
specific project proposal in the Project Implementation Report. This 
process accords with NEPA's provisions on timing (40 CFR 1502.5 and 
1508.23) and its admonishment to avoid duplication (Sec.  1500.4) and 
improper segmentation of Federal actions (Sec.  1502.4).
    Some commenters expressed the view that the guidance memorandum for 
determining the quantity, timing and distribution of water dedicated 
and managed for the natural system in a Project Implementation Report 
(PIR) should be analyzed in an Environmental Impact Statement (EIS). 
Since the guidance memorandum is procedural and does not affect the 
environment, recommend legislation, or determine a specific quantity, 
timing, or distribution of water for a specific component, it is not 
considered a ``major Federal action'' under NEPA. As noted, the 
specific project proposal, which is governed by the guidance 
memorandum, will be subject to a full NEPA analysis in the Project 
Implementation Report.
    Similar comments were directed at the interim goals. Some 
commenters felt that the interim goals were not ``major Federal 
actions'' affecting the environment under NEPA. These commenters 
regarded the interim goals as evaluation and reporti