[House Hearing, 110 Congress] [From the U.S. Government Publishing Office] COMPREHENSIVE WATERSHED MANAGEMENT AND PLANNING ======================================================================= (110-146) HEARING BEFORE THE SUBCOMMITTEE ON WATER RESOURCES AND ENVIRONMENT OF THE COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE HOUSE OF REPRESENTATIVES ONE HUNDRED TENTH CONGRESS SECOND SESSION __________ JUNE 24, 2008 __________ Printed for the use of the Committee on Transportation and Infrastructure U.S. GOVERNMENT PRINTING OFFICE 43-277 WASHINGTON : 2008 ----------------------------------------------------------------------- For Sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; (202) 512�091800 Fax: (202) 512�092104 Mail: Stop IDCC, Washington, DC 20402�090001 COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE JAMES L. OBERSTAR, Minnesota, Chairman NICK J. RAHALL, II, West Virginia, JOHN L. MICA, Florida Vice Chair DON YOUNG, Alaska PETER A. DeFAZIO, Oregon THOMAS E. PETRI, Wisconsin JERRY F. COSTELLO, Illinois HOWARD COBLE, North Carolina ELEANOR HOLMES NORTON, District of JOHN J. DUNCAN, Jr., Tennessee Columbia WAYNE T. GILCHREST, Maryland JERROLD NADLER, New York VERNON J. EHLERS, Michigan CORRINE BROWN, Florida STEVEN C. LaTOURETTE, Ohio BOB FILNER, California FRANK A. LoBIONDO, New Jersey EDDIE BERNICE JOHNSON, Texas JERRY MORAN, Kansas GENE TAYLOR, Mississippi GARY G. MILLER, California ELIJAH E. CUMMINGS, Maryland ROBIN HAYES, North Carolina ELLEN O. TAUSCHER, California HENRY E. BROWN, Jr., South LEONARD L. BOSWELL, Iowa Carolina TIM HOLDEN, Pennsylvania TIMOTHY V. JOHNSON, Illinois BRIAN BAIRD, Washington TODD RUSSELL PLATTS, Pennsylvania RICK LARSEN, Washington SAM GRAVES, Missouri MICHAEL E. CAPUANO, Massachusetts BILL SHUSTER, Pennsylvania TIMOTHY H. BISHOP, New York JOHN BOOZMAN, Arkansas MICHAEL H. MICHAUD, Maine SHELLEY MOORE CAPITO, West BRIAN HIGGINS, New York Virginia RUSS CARNAHAN, Missouri JIM GERLACH, Pennsylvania JOHN T. SALAZAR, Colorado MARIO DIAZ-BALART, Florida GRACE F. NAPOLITANO, California CHARLES W. DENT, Pennsylvania DANIEL LIPINSKI, Illinois TED POE, Texas NICK LAMPSON, Texas DAVID G. REICHERT, Washington ZACHARY T. SPACE, Ohio CONNIE MACK, Florida MAZIE K. HIRONO, Hawaii JOHN R. `RANDY' KUHL, Jr., New BRUCE L. BRALEY, Iowa York JASON ALTMIRE, Pennsylvania LYNN A WESTMORELAND, Georgia TIMOTHY J. WALZ, Minnesota CHARLES W. BOUSTANY, Jr., HEATH SHULER, North Carolina Louisiana MICHAEL A. ARCURI, New York JEAN SCHMIDT, Ohio HARRY E. MITCHELL, Arizona CANDICE S. MILLER, Michigan CHRISTOPHER P. CARNEY, Pennsylvania THELMA D. DRAKE, Virginia JOHN J. HALL, New York MARY FALLIN, Oklahoma STEVE KAGEN, Wisconsin VERN BUCHANAN, Florida STEVE COHEN, Tennessee ROBERT E. LATTA, Ohio JERRY McNERNEY, California LAURA A. RICHARDSON, California ALBIO SIRES, New Jersey VACANCY (ii) ? Subcommittee on Water Resources and Environment EDDIE BERNICE JOHNSON, Texas, Chairwoman GENE TAYLOR, Mississippi JOHN BOOZMAN, Arkansas BRIAN BAIRD, Washington JOHN J. DUNCAN, Jr., Tennessee JERRY F. COSTELLO, Illinois WAYNE T. GILCHREST, Maryland TIMOTHY H. BISHOP, New York VERNON J. EHLERS, Michigan BRIAN HIGGINS, New York FRANK A. LoBIONDO, New Jersey RUSS CARNAHAN, Missouri GARY G. MILLER, California JOHN T. SALAZAR, Colorado ROBIN HAYES, North Carolina MAZIE K. HIRONO, Hawaii HENRY E. BROWN, Jr., South HEATH SHULER, North Carolina Carolina HARRY E. MITCHELL, Arizaon TODD RUSSELL PLATTS, Pennsylvania JOHN J. HALL, New York BILL SHUSTER, Pennsylvania STEVE KAGEN, Wisconsin CONNIE MACK, Florida JERRY MCNERNEY, California, Vice JOHN R. `RANDY' KUHL, Jr., New Chair York ELEANOR HOLMES NORTON, District of CHARLES W. BOUSTANY, Jr., Columbia Louisiana BOB FILNER, California JEAN SCHMIDT, Ohio ELLEN O. TAUSCHER, California CANDICE S. MILLER, Michigan MICHAEL E. CAPUANO, Massachusetts THELMA D. DRAKE, Virginia GRACE F. NAPOLITANO, California ROBERT E. LATTA, Ohio MICHAEL A. ARCURI, New York JOHN L. MICA, Florida VACANCY (Ex Officio) JAMES L. OBERSTAR, Minnesota (Ex Officio) (iii) CONTENTS Page Summary of Subject Matter........................................ vi TESTIMONY Collier, Carol, Executive Director, Delaware River Basin Commission, West Trenton, New Jersey........................... 5 Freedman, Paul L., Vice President, Water Environment Federation, Ann Arbor, Michigan............................................ 5 Galloway, Gerald E., Glenn L. Martin Institute Professor of Engineering, University of Maryland, College Park, Maryland.... 5 Larson, Larry, Executive Director, Association of State Floodplain Managers, Madison, Wisconsin........................ 5 Mullican, III, William F., Deputy Executive Administrator for Planning, Texas Water Development Board, Austin, Texas......... 5 Richter, Brian, Director, Global Freshwater Initiative, The Nature Conservancy, Arlington, Virginia........................ 5 Stockton, Steven L., Director of Civil Works, U.S. Army Corps of Engineers...................................................... 5 PREPARED STATEMENT SUBMITTED BY MEMBERS OF CONGRESS Carnahan, Hon. Russ, of Missouri................................. 31 Costello, Hon. Jerry F., of Illinois............................. 32 Mitchell, Hon. Harry E., of Arizona.............................. 34 PREPARED STATEMENTS SUBMITTED BY WITNESSES Collier, Carol R................................................. 35 Freedman, Paul L................................................. 44 Galloway, Gerald E............................................... 59 Larson, Larry A.................................................. 66 Mullican, III, William F......................................... 76 Richter, Brian................................................... 83 Stockton, Steven L............................................... 95 SUBMISSIONS FOR THE RECORD Richter, Brian, Director, Global Freshwater Initiative, The Nature Conservancy, Arlington, Virginia, responses to questions from the Subcommittee.......................................... 91 ADDITIONS TO THE RECORD Susquehanna River Basin Commission, Paul O. Swartz, Executive Director, written statement.................................... 100 Water Resources Coalition, written statement..................... 110 [GRAPHIC] [TIFF OMITTED] T3277.001 [GRAPHIC] [TIFF OMITTED] T3277.002 [GRAPHIC] [TIFF OMITTED] T3277.003 [GRAPHIC] [TIFF OMITTED] T3277.004 [GRAPHIC] [TIFF OMITTED] T3277.005 COMPREHENSIVE WATERSHED MANAGEMENT AND PLANNING ---------- Tuesday, June 24, 2008 House of Representatives, Committee on Transportation and Infrastructure, Subcommittee on Water Resources and Environment, Washington, DC. The Subcommittee met, pursuant to call, at 2:10 p.m., in Room 2167, Rayburn House Office Building, Hon. Eddie Bernice Johnson [Chairwoman of the Subcommittee] presiding. Ms. Johnson. The Committee will come to order. I need to announce that I am going to have to leave early to go to a classified briefing. And Mr. Carnahan will be taking the chair as I depart. The United States is a country of very diverse water resource needs. Watershed planning and management provides a means for Federal and local governments to identify water resources conflicts and find potential solutions. In fact, comprehensive watershed management and planning has been raised in several contexts before this Committee over the past year. At present, several regions of the country face significant water resource challenges, ranging from droughts in the Southeast and Southwest to the recent flooding in the Midwest. Watershed planning and management can be an important tool to help make better decisions in resolving these water resource needs. Last year, during a hearing on H.R. 135, the Committee received testimony from experts that highlighted the need for a comprehensive watershed approach to water resource planning, one that is not limited just to water supply needs but takes a comprehensive view of all the water resources activities in a watershed, including local, State and Federal roles and activities in water supply, flood control and environmental restoration. The experts also advise taking into account the impacts of global climate change on water resource capacity and future needs. WRDA passed last year for the first time in 7 years and included provisions to reinvigorate broader watershed planning authority, including a federally funded assessment of water resource needs for the river basins and watersheds of the southeastern United States and a region-wide study to review drought conditions in the southwestern United States. These region-wide assessments are essentially critical to southeastern U.S., including the States of Georgia, Alabama and Florida, which are experiencing the ever-increasing challenge of balancing water needs during a record drought. My home State of Texas has had long experience in water resource planning. Following the drought of the 1950s--I am not old enough to remember that--Texas began its initial efforts in State-wide planning. In 1957, the Texas legislature created the Texas Water Development Board. The board has prepared and adopted eight water plans. Early efforts focused mostly on describing the State's water resources and then evolved into a focus on developing plans addressing water supply, conservation and environmental issues. We do have a representative here today. I am very proud of my State for the planning. The drought of 1997 was a watershed event for Texas. This devastating drought caused nearly $5 billion in losses for agriculture and related industries and caused widespread loss and anxiety over water supply shortages. As a result of this statewide event, Texas totally changed its approach to water planning and moved from a very centralized approach to a decentralized process that put primary responsibility for water planning at the regional and local government levels. The new process greatly increased public participation and implemented a bottom-up local and regional planning process. This new effort emphasized conservation and increases in environmental protection. Texas recently released its 2007 water plan, which is one of the most comprehensive State water plans produced. I am very pleased that we have Mr. William Mullican, deputy executive administrator for planning of the Texas Water Development Board, here today to tell us more about the implementation of this latest plan. I also look forward to hearing suggestions on how to better develop watershed planning activities from our panel of experts today. I now yield to our Ranking Member, Mr. Boozman of Arkansas. Mr. Boozman. Thank you very much, Madam Chairman. Water resources development planning in the Nation typically has been narrowly focused, usually addressing a single purpose and within a single community. It is not surprising that project planning has developed in this way. When one learns the purposes of a project and geographic scope, solutions become easier to identify. Also, when it is one community that is sharing in the cost of a water resources development feasibility study, it is reasonable to expect that the focus will be on the concerns of that community. Impacts on other water uses in the watershed are not necessarily ignored, but they are secondary to the stated purpose of the ongoing study, be it flood control, environmental restoration, water supply or some other use. Competition for water is increasing throughout the country. More and more often, we are seeing where growing cities' need for municipal and industrial water supplies are at odds with similar needs for that same water downstream. This conflicts with environmental, recreation, navigation or flood control needs elsewhere in the watershed. What has been missing in most cases is a comprehensive watershed plan against which more focused, local feasibility plans can be measured. Such a comprehensive plan would identify the water supply and demand in the watershed for all its purposes and include models that would allow planners to see how certain decisions in one area would impact water uses elsewhere. Such an approach would allow local planners to face the inevitable tradeoffs that occur when multiple users with different interests compete for a limited resource. Facing these issues will be difficult, but they must be done at the State and local level. It is important that we face the fact there is a limited amount of usable water in any watershed. At the State and local levels, water must be conserved, and a plan must be developed on how this limited resource is going to be shared. If we do not do this, we can expect to see many more water conflicts developing around the country. Citizens in Georgia, Alabama and Florida are currently struggling to find a way to share the water in a watershed that is oversubscribed for water use, at least in drought conditions. This has proved to be a very challenging task for which there are no easy solutions. We must encourage, throughout the Nation, a pattern of comprehensive watershed management that will reduce these kinds of conflicts in the future. A broad watershed management plan could be a standard upon which traditional feasibility studies for individual projects are measured. Congress could even consider making studies and projects that are consistent with the watershed management plan a priority for appropriations and authorizations. Exactly how we can make watershed management planning happen is a challenge. What are the appropriate State and Federal roles of such planning? Who should bear the cost? I tend to believe that a State-driven planning effort with heavy local involvement will lead to the best plans with the most acceptance. Certainly, the Federal Government can help with technical assistance and some minimal standards. Fortunately, we have some expert witnesses today who have been looking at this issue for a very long time and who have some experience with it. I look forward to hearing their insights as to how we can move forward with comprehensive watershed management planning. And I yield back, Madam Chairman. Ms. Johnson. Thank you, Mr. Boozman. The Chair now recognizes Mr. Bishop. Mr. Bishop. Thank you, Madam Chairman. I want to thank you for holding this hearing on watershed management and planning. My district encompasses 300 miles of eastern Long Island's coastline and coastal watersheds that I am very proud to represent. Maintaining coastal health is an important objective not only in my district, but also as we seek to preserve our Nation's environment and to sustain the economies of our States that rely on safe, clean water. Specific to this hearing, I am interested in hearing the panelists' views about the sometimes conflicting responsibilities and jurisdictions between the Army Corps and other Federal and State agencies. In my district, the Fire Island to Montauk Point Reformulation Study will be concluding next year after decades of work and millions of Federal dollars being spent. As we near completion, the Army Corps of Engineers, the Department of Interior, through the National Park Service and the U.S. Fish and Wildlife Service, and the State of New York, have begun discussions about the implementations of the study's findings. These three entities have, to varying degrees, different responsibilities for the implementation of the project, and they also have somewhat differing perspectives on the goals of the FIMP project. While I am confident that the Army Corps, Department of Interior, and New York State will reach a consensus on how to best protect the residents of my district and protect the environment, I am interested in understanding how future projects can be authorized to prevent competing jurisdictions and responsibilities. Increased coordination will save taxpayer dollars and speed the completion of critical projects. I appreciate the participation of today's panelists, and I look forward to the discussion of these important issues. Thank you, Madam Chair. And I yield back. Ms. Johnson. Thank you very much, Mr. Bishop. Mrs. Drake? Mrs. Drake. Thank you, Madam Chair. First, I would like to thank the Chair for holding today's hearing. And I would also like to thank the panel members for joining us today, and I look forward to your testimony. The 2nd District of Virginia is home to the mouth of the Chesapeake Bay, which represents the beginning of a 64,000- square-mile watershed. However, most of us live in a watershed, whether they are large like the Chesapeake or small like a local stream or river. There are incredibly diverse water conditions across our Nation, from coastlines and bays, such as in the 2nd District, to mountain, plains and desert environments to the west. In addition, there are varying levels of watershed management across the country, which are operated by various entities. These conditions can sometimes lead to regional conflicts over water resources, as well as a lack of understanding of the downstream impacts of developmental decisions. I look forward to today's hearing to learn more about the opportunities to explore a more comprehensive and collaborative approach to watershed management. Again, I thank you all for being here today, and I look forward to your testimony. Thank you, Madam Chair. Mr. Carnahan. [presiding.] I want to recognize the gentlewoman from Hawaii for an opening statement. Ms. Hirono. Thank you, Mr. Chairman. I just wanted to enter for the record the efforts of the partnerships in Hawaii that already pay attention to a very comprehensive method of watershed management and planning. That is because in Hawaii we have a term called "ahapuaa" where we think of our land and natural and water resources as running from the mountain to the ocean. And, therefore, a lot of our planning incorporates that perspective. And so we have nine partnerships that includes State, county, nonprofits, businesses and the Federal Government. And I would like to enter that for the Committee record. Thank you. I yield back. Mr. Carnahan. Thank you. I want to turn to our panel of witnesses today that consists of Steven Stockton, Director of Civil Works, U.S. Army Corps of Engineers; Carol Collier, executive director, Delaware River Basin Commission; Larry Larson, executive director, Association of State Floodplain Managers; Brian Richter, co- director, Global Freshwater Team, The Nature Conservancy; Gerald Galloway, professor of engineering, University of Maryland; Paul Freedman, vice president, Water Environment Federation; William Mullican, deputy executive administrator for planning, Texas Water Planning Board. Your full statements will be placed in the record. We ask that you try to limit your testimony to about 5 minutes as a courtesy to the other witnesses. And we will proceed in the order the witnesses are listed in the call of the hearing. Mr. Stockton, please proceed. TESTIMONY OF STEVEN L. STOCKTON, DIRECTOR OF CIVIL WORKS, U.S. ARMY CORPS OF ENGINEERS; CAROL COLLIER, EXECUTIVE DIRECTOR, DELAWARE RIVER BASIN COMMISSION, WEST TRENTON, NEW JERSEY; LARRY LARSON, EXECUTIVE DIRECTOR, ASSOCIATION OF STATE FLOODPLAIN MANAGERS, MADISON, WISCONSIN; BRIAN RICHTER, DIRECTOR, GLOBAL FRESHWATER INITIATIVE, THE NATURE CONSERVANCY, ARLINGTON, VIRGINIA; GERALD E. GALLOWAY, GLENN L. MARTIN INSTITUTE PROFESSOR OF ENGINEERING, UNIVERSITY OF MARYLAND, COLLEGE PARK, MARYLAND; PAUL L. FREEDMAN, VICE PRESIDENT, WATER ENVIRONMENT FEDERATION, ANN ARBOR, MICHIGAN, WILLIAM F. MULLICAN, III, DEPUTY EXECUTIVE ADMINISTRATOR FOR PLANNING, TEXAS WATER DEVELOPMENT BOARD, AUSTIN, TEXAS Mr. Stockton. Thank you, Mr. Chairman, Members of the Subcommittee. I am Steven Stockton, Director of Civil Works with the U.S. Army Corps of Engineers. Thank you for the opportunity to testify today on the importance of comprehensive watershed management planning on the Corps's role in watershed planning. Water resources problems we face today are complex. Trends that impact water resources include: the impact of droughts, floods and hurricanes; the migration of people to coastal States; growing urban centers in arid and semi-arid regions, all with a need for reliable, sustainable water supply; urban development in river valleys and its impacts on floodplains; aging infrastructure; and water conflicts between States, which become most apparent when shared water resources diminish, such as under long-term drought conditions. These and other similar challenges require coordinated and collaborative approaches. Water resource planning and management requires an appreciation of the existing and potential future uses of the water resources and fitting all the pieces and interests into an integrated plan that addresses those very needs. We are technical experts in water resources management, water policy, regulatory permitting, and disaster response. However, these roles are changing as States and other resource agencies grow in their engineering and water resource capabilities, with many showing much greater interest in being directly involved and even leading the water resource management opportunities. Water management is not a sole responsibility of either the State or the Federal Government, but is rather a shared responsibility. Both the Federal Government and the States can benefit from this shared responsibility, and the Corps of Engineers is working to play a constructive role in these partnerships. Historically, the Corps's flood damage reduction and emergency response efforts have been watershed-based. Since the great Mississippi River flood of 1927, the Corps has been building and maintaining a large system of levees and related features to reduce flood damage in the lower Mississippi River Valley. This and our later effort to reduce flood damage along the Missouri River by building large mainstem dams were based on watershed planning. For a number of reasons, the civil works construction program has become more focused on specific, locally based projects in recent years. The era of large, multipurpose dams construction has come to a close in this country. The cost-sharing requirements of the Water Resources Development Act of 1986 may have also contributed to this trend. Our sponsors have limited budgets and are often interested in minimizing their costs to achieve a solution to a specific water resource problem. Watershed studies are more challenging to arrange because they involve multiple sponsors and require compatible interests and aligned budgets. Nevertheless, we have undertaken a number of watershed studies since the passage of the Water Resources Development Act of 1986. For example, the recent Illinois River Basin Restoration Study covered 30,000 square miles in Illinois, Indiana and Wisconsin. The large geographic scale, numerous stakeholders, close teamwork, innovation and commitment to collaboration earned its selection as the winner of the 2007 Environmental Planning Excellence Award of the American Planning Association. Our efforts to manage water on a large geographic scale have also led to major Corps aquatic ecosystem restoration programs in the Everglades, in the coastal wetlands ecosystem of Louisiana, and in and along the upper Mississippi River and Illinois waterway. Nonetheless, the cumulative effect of small-scale decision- making over the past two decades has become more apparent. Now there is a general recognition of the need for more holistic, comprehensive approaches to watershed management at all levels of government. In 2006, Congress directed the Secretary to initiate a series of pilot watershed studies to address collaboration and planning on a watershed scale at full Federal expense. Funds of $4.5 million were appropriated, and 38 proposals were considered by the Corps. Five studies from across the Nation were selected. We are pleased to report that these 2-year studies nearing completion have benefitted the Nation by bringing resource and stakeholder groups together to solve water resource problems, in many cases for the first time. The unfunded remaining 33 proposals provide an initial indication of the unmet demands for watershed-based analysis. The main observation from these studies is that collaboration is working, partnerships with the States and other resource agencies have helped to achieve better coordination. The Corps involvement provided tools and databases, collection and sharing of data, engineering, scientific and environmental expertise to assist watershed planning. How can the Corps assist States? Today we can provide planning and technical assistance through a number of programs, such as authority in Section 729, WRDA 1986, as amended, to support comprehensive watershed planning through a 75 percent Federal and 25 percent local cost-share contribution. We also have planning assistance to States programs. The Corps role in the water resources community is evolving. In some cases, we are the lead; in others, we are a contributor as a facilitator. This is due to the changing role of the States and local agencies. They are initiating more water resource planning efforts and projects on their own, and are approaching the Corps to assist on a technical level. Partnerships to leverage resources and technical expertise are clearly a requirement to effectively address future watershed studies. In summary, the need for a comprehensive water resource management and planning for future water resource needs is more important than it has been in the past. Collaborative involvement by the Federal community will be a requirement. As such, the Corps stands ready to work as a partner with State and local leaders by providing technical expertise, working with nongovernmental organizations and other State and Federal agencies, as well as providing science and data to advance locally led collaborative planning. Mr. Chairman, Members of the Subcommittee, thank you for this opportunity to testify. That concludes my remarks. Mr. Carnahan. Thank you. Ms. Collier, please proceed. Ms. Collier. Thank you, Mr. Carnahan and Members of the Subcommittee. I am Carol Collier, executive director of the Delaware River Basin Commission. The DRBC was formed in 1961 and is an interstate Federal compact, the mission of which is to manage water resources without regard to political boundaries. My bosses are five; they are Governors of the four basin States--New York, New Jersey, Pennsylvania and Delaware--and a general in the Corps of Engineers, commander of the North Atlantic Division, who is the appointee of the President. And when he votes, he votes for all Federal agencies. While it is a small basin, it serves 15 million people. New York City has three huge reservoirs in the very headwaters of the basin and can divert up to 800 million gallons a day out of the basin. It also provides water to Philadelphia and the down- basin estuary area. This is my favorite topic, so I really appreciate this opportunity. In my short time, I would like to talk about some of the problems and my key recommendations, because integrated water resource management is critical. One, rivers do not respect political boundaries. To effectively manage rivers, you need to manage on a watershed approach and also, you know, connect that with our socioeconomic political boundaries. The river divides two States. It is really hard to manage flood waters just standing on one State and having control of one shore. So you need to look at it holistically. In our case, one of DRBC's jobs is to keep the saltwater out of Philadelphia intakes, having enough fresh water flowing down the river to push that saltwater back to the bay. The only way that works is having agreements with the upper-basin States--New York, New Jersey, Pennsylvania--to have a release program from the New York City reservoirs, State reservoirs, power reservoirs, so that during drought conditions, plans are already in place and we know what to do. A second concern is, our existing laws that govern water resources are fractured. It made sense when these were put into place, but now that we know more about the need for holistic watershed management and the problems that the fracturing can cause and missing opportunities, we need to put the pieces back together again. Thirdly, you have to have a plan. As Mr. Carroll said in "Alice in Wonderland," if you don't know where you are going, you will end up somewhere else. And it is really important, when you are looking at all the different aspects of watershed management, to have a plan, not one of the 5-inch types that you think of from back in the 1970s, but one that is done through an open process, results in priorities, that then we can work with partners, Federal agencies, States, nonprofits and private sector to really implement those priorities. Another direction that is needed is that no one agency can manage a river basin. It needs to be a collaborative process with all levels of government and key stakeholders. Through the planning process we can make the snowballs--and I do have with me a copy of our resource plan that we put together in 2004 and some summaries of that, if you would like that--but we need partners such as the Corps of Engineers, USGS, et cetera, to really get the actions done. My key recommendations: One, we need a mechanism to bring principal parties together to manage a river system. In an interstate river basin, I really think river basin commissions are the best mechanism. The commission itself is not above the States and Federal Government; it provides a forum for those principal parties to come together and act on a watershed basis. Management of natural resources is always changing. You can't draw a line on a rock and say, "That is what is going to be the allocation for the future." Science changes, technology changes, political regimes change, and you need to have a forum for adaptation. And that is what the basin commission provides. This is going to be even more important as we address the concerns of climate change and what that means to our water resources. Managing water resources is not easy. We don't sing "Kumbaya" every day. Everybody has different agendas. But it takes trust, flexibility and a little sacrifice to make it work. You also can't develop a plan in a crisis, and I think that is what we are seeing down in the Southeast region. You need to have a plan ahead of time and a river basin commission that not only has planning capability but implementation capability so you can put together a drought operating plan or whatever is necessary. We need Federal agencies to have more flexibility so they can really work with these watersheds, either at the State level or interstate level. We need to encourage funding of basin planning. And, finally, a river can be and often is a dividing line, creating a high wall between States, but it can be the rope that binds communities together. Effective integrated water resource management, using river basin commissions as the local manager and having Federal agencies on a team that really bring their individual expertise, can make our rivers the centers of strong communities and ensure that the water resources are used more cost-effectively and the system is environmentally sustainable. I will be glad to answer questions and work with you in the future to forward watershed management. Thank you. Mr. Carnahan. Thank you very much. Next let's turn to Larry Larson. Mr. Larson. Thank you, Mr. Chair. ASFPM is pleased to once again testify in front of this Committee, a Committee that, in our view, has demonstrated a concern for these complex, broad issues and also an in-depth understanding of these issues. Unfortunately, I have to start with a statement that I have made many times before, and that is, those of us in the Midwest are telling you that once again we are under devastating flooding. That is not news to many of you, of course, but the fact we are seeing these impacts shows many of the things that currently are not working in our plans for watershed management. On the TV set, I am seeing too many people say this is an event that was unexpected, we couldn't predict it, we didn't know it was going to happen. Well, that tells me that our programs aren't doing a very good job of helping people understand risk, helping people understand the impacts of conflicting watershed management approaches that are leading us toward some of these water quality, water quantity negative impacts, public safety issues, that really should be handled as part of good watershed management. We shouldn't be seeing things like water treatment plants that are flooded and not operational, critical facilities like hospitals and fire stations that aren't operable during flood events, social disruptions of our communities, businesses out of operation for long periods of time, drinking water contaminated and undrinkable, levee design levels that are inadequate for urban areas and lead to numerous catastrophic flooding failures and overtoppings, closures of roads, streets and bridges. All of those are issues that can be handled through and assisted through good watershed approaches. We have a number of issues now, but I can assure you that in the next 50 years, as we add 100 million to 150 million people to this Nation, those problems are going to multiply significantly. I have some detailed recommendations in our written testimony, but let me give you some what I view as pretty much outcomes of what we should work collaboratively together on to get off of this stovepipe problem. This comprehensive watershed management approach is absolutely essential, that we have all talked about. That is a challenge not only for agencies and programs, but it is a challenge for those of you here in Congress where jurisdictional issues for each of the Committees is still stovepiped, as it is in the programs. So some forum is probably going to be necessary beyond the formal hearing process, where maybe cross Committees work together, where we have national commissions that you can appoint and come back to you with broad-based recommendations. Secondly, room for our rivers and oceans. Our deep floodplains and our sensitive ecosystems are areas where we should not build--and those that are there, we need to start a gradual retreat from those high-risk and ecologically sensitive areas. We need to reverse some of the perverse incentives we currently have, reform those Federal programs that incentivize unwise development in our watersheds. And Federal agency programs that cause adverse impacts on other communities and other properties need to be adjusted so those things don't occur, both on a water quality and a water quantity basis. And we need to restore and enhance those natural systems on our rivers and coasts. The big issue is renaissance of government, of course, of how we govern water resources management. Both of the previous speakers have talked about that. Steve has mentioned that the Federal Government role is changing, more to that of a facilitator and technical assistance, less into the actual doing. The bottom-up approach is key and essential. It is a shared responsibility, and it is one that we need to collaborate on and work on. Most of the solutions to these issues lie in land use, comprehensive planning, community planning. Those are not functions of the Federal Government under our Constitution. They fall under the role of State and local governments. So we must build off of that to really come into our solutions. Then we have to promote personal and public responsibility. We do have programs that reward those who do things wrong. We need to modify that and change that, so we are rewarding those communities and people who act responsibly and do the right thing, who understand that shared responsibility and accept their cost and risk. One of the first simple things, for example, is the Corps of Engineers' programs for nonstructural could be cost-shared at a larger cost share, say, 75-25, as opposed to 65-25 for structural. And I think that is a win for the Federal Government, because, in the long term, the Federal Government would not be coming back in, having to build and repair structural measures like we see now--levees that are failed, rebuild the levees, or help for operation and maintenance. So, in the long term, those non-structural kinds of programs should be better cost-shared. That is just one point that I wanted to raise. With that, I will pass on the rest of it. Thank you. Mr. Carnahan. Thank you. Mr. Richter? Mr. Richter. Members of the Subcommittee, I want to thank you for this opportunity to testify on comprehensive watershed planning and management. My name is Brian Richter, and I am the director of The Nature Conservancy's Global Freshwater Team. The Nature Conservancy is a leading conservation organization that protects ecologically important places for both people and nature. Our on-the-ground conservation work is carried out in all 50 States and in more than 30 foreign countries. The comments that I am going to provide today are drawn from our experience of working on the ground with the Corps of Engineers and other water managers to restore and protect aquatic ecosystems. The idea of a watershed approach has been around for some time, but it is a term that remains poorly defined and not yet commonly applied. We believe that a watershed approach should be based on natural hydrologic processes that consider water and sediment movement along the river, hydrologic connections between headwaters and downstream areas, including estuaries, and the role of properly functioning floodplains, as some of the previous speakers have emphasized. This watershed process-based approach should fully incorporate the role of healthy and functioning ecosystems such as wetlands into the project planning and evaluation. By determining how a project or a management activity will affect the downstream systems, considering upstream management actions and land uses in the watershed, a watershed process-based approach can bring valuable insights to the planning and design of water resource projects. To employ such an approach, the current water resource planning process must be improved. Instead of planning individual projects in isolation, water resource planning efforts should be more frequently seeking to develop and utilize watershed-based tools that allow the Corps and other key stakeholders to make critical decisions about water resources management. One example of such a tool is a computer-based decision support system being developed by the Army Corps of Engineers and The Nature Conservancy in the Upper Delaware River Watershed. This innovative computer tool will model key physical and biological variables, existing infrastructure, and hydrologic conditions across the watershed. The information will allow State and Federal agencies, as well as key stakeholders, to evaluate the impact and viability of various strategies for reducing flood heights throughout the basin. Comprehensive watershed management should also include an approach to management of dams and reservoirs that seeks to optimize resource goals throughout watersheds. The benefits of comprehensive dam management are illustrated through our work on the Penobscot River in Maine, where we are working with a variety of partners to restore hundreds of miles of spawning habitat for endangered Atlantic salmon and numerous other fish species. Under an innovative agreement between the Penobscot River Restoration Trust and the PPL Corporation, three mainstem hydropower dams will be removed in a state-of-the-art fish-passage structure constructed around a fourth dam. To compensate for the lost energy production due to the removal of the three dams, hydropower production will be increased at other dams in the same watershed. Because the Penobscot project is built on a comprehensive multi-dam evaluation of both hydropower and ecosystem needs across the entire river basin, it will achieve one of the largest river and migratory fish restoration efforts in the eastern United States with little or no hydropower loss. The Conservancy is also working with the Corps to more comprehensively manage Corps reservoirs through our mutual Sustainable Rivers Project. This innovative partnership seeks to incorporate a broader array of watershed needs, such as downstream ecosystem health, into the operation of Corps dams. Our work to date has already demonstrated at several sites that modest adjustments to existing dam operations can accommodate a broader set of watershed needs without impacting the original purposes of the dam. In fact, on the Green River in Kentucky, our work with the Corps to restore the river's health by modifying dam operations actually improved the flood control performance of the dam and extended the recreation season on the reservoir. Comprehensively managing our water resources infrastructure, in combination with downstream floodplain management, is a key component of the work at the Sustainable Rivers Project sites, as well as in some of our international water management efforts. Presently, a tremendous volume of potential water storage space is left empty behind dams because of the spaces needed to be reserved to capture incoming floods and protect downstream structures and roads. But on the Yangtze River in China we have developed a proposal that is under serious consideration by the Chinese Government to restore the Yangtze Valley's natural floodplain and thereby reduce dependence on the dams as a sole means of flood management. By using floodplains for flood storage instead of dams, the hydropower production at these dams can be increased, expanding a sustainable energy source for this country. This example illustrates how a comprehensive approach for managing infrastructure, together with floodplains, can create opportunities for greater efficiency and provides the ability to meet multiple watershed goals, such as flood risk management, hydropower production and ecosystem restoration. Lastly, while the examples above illustrate the importance of improving our planning techniques and better managing our infrastructure in a watershed context, we must also examine how water resource projects are authorized and funded. A project- by-project authorization and funding process makes comprehensive watershed management very, very challenging. Instead, we should be managing projects on a regional or watershed basis by investing in planning tools and approaches that evaluate watershed-wide processes and needs and in implementing projects consistent with the information and the learning that is generated. Regional or watershed-based authorizations, focused on projects that comprehensively meet watershed goals, would encourage such an approach. To conclude, the Conservancy believes that comprehensively managing our water resources across watersheds can have enormous benefits, ranging from efficient management of infrastructure to maximizing Federal investments to meet multiple needs. Thank you for holding this hearing today and providing us with the opportunity to present The Nature Conservancy's views and testimony on this topic. I would be happy to answer any questions you may have. Mr. Carnahan. Thank you. Now, Mr. Galloway with the University of Maryland. Mr. Galloway. Thank you, Mr. Chairman, Members of the Committee. It is a distinct privilege for me to participate in this important and timely hearing. I am Gerald Galloway. I am a professor of engineering at the University of Maryland, where I teach and do research in water resources. I come here today to speak to the need for watershed planning, as we continue the development, maintenance and restoration of our Nation's water resources. These resources cannot be sustainably, efficiently and safely developed if we continue to address problems on a project-by-project basis. Watershed planning and management have brought great rewards to this country. It is not new. In 1927, the Congress directed the Corps of Engineers to conduct comprehensive river basin studies across the United States. These "308" studies provided the basis for much of the work that took place in the 1930s and 1940s, including the TVA and on the Columbia. TVA is a shining example, as each issue TVA faces, whether it was power production, navigation, flood control, malaria prevention, recreation or the environment, was studied in its broadest context and weighed in relation to the others. It was truly systems planning. Failing to see the need for watershed planning can have serious consequences. We now recognize that, for nearly 40 years, the Nation invested heavily in hurricane protection for New Orleans through construction of levees and other structures without recognizing that the wetlands of coastal Louisiana's watershed were key elements of a natural structural system that provided storm buffering for New Orleans and protection for oil, gas, shipping and fishing industries that generate revenues for the State and the Nation and sustain critical ecosystems. If watershed planning makes sense, why is it not being accomplished? Well, the nature of the congressional authorization, appropriation and project-focused process supports the stovepipe approach you have heard several people mention and gives projects a priority over watershed planning. An example: St. Louis sits at the junction of the Missouri, Mississippi and Illinois rivers, and those living in the area, as we have seen on television day after day, rely on levees for their protection. They campaign for increases in the size of their existing levees. Without a comprehensive plan to guide its action, the Corps is forced to look at each levee project in isolation and cannot judge what the cumulative impact on people and the environment will be from new levees. In 2004, a Senate Committee resolution authorized a comprehensive watershed study of this critical area, yet no funds have been provided to date to carry out this important effort, and none are in the budget for 2009. Planning has no priority. To get watershed/basin level planning off the ground, there must be better collaboration among Federal agencies and the States within the basins. There must be better collaboration among congressional Committees authorizing and funding water programs. Committee reports should require watershed planning as a basis for project approval. The administration, the Congress and the States must develop an approach for management of activities within the watershed and decide who is going to be in charge. Is one Federal agency going to be the lead systems integrator for Federal activities? Is it top-down, or is it bottoms-up? Texas is a great example for much of us in their bottoms-up planning. Where does bottoms-up and top-down meet, and how can we make that work? While the United States has put watershed planning on the back burner, other nations have not. The European Union finds, and I quote, "The best model for a single system of water management is management by river basin," unquote. Initiatives for the Maas, the Schelde or the Rhine river basins, very large basins, have served as positive examples of this approach. Australia also has a long problem with water, and they have been dealing with this in many parts of its country over the last decades, through watershed, what they call catchment management, to ensure that the waters are used effectively and that decision-makers consider the balance among the multiple uses of this resource. Like the European nations, Australia has found that the integration that is achieved through catchment management has reduced conflicts over water, improved the efficiency of the use of the resource, and more fully involved the stakeholders, an important factor. Watershed planning eliminates long-term problems. We have technologies and tools, finally, such as shared-vision planning and the models that Brian Richter has just mentioned, that make this possible. I would urge the Congress to carefully examine the projects it authorizes to ensure that these projects, as they authorize them, are set within a watershed context, and that the authorization and eventual funding by the Congress of individual projects is not creating watershed problems. Now is certainly the time for you to demand watershed planning and management. Thank you very much for your attention. Mr. Carnahan. Thank you very much, Dr. Galloway. I especially appreciate your reference to St. Louis. And let's go on now to Mr. Freedman. Mr. Freedman. Good afternoon, Mr. Chairman and Members of the Subcommittee. My name is Paul Freedman. I am vice president of the Water Environment Federation and president of Limnotech, an environmental consulting firm I founded over 30 years ago. I have been involved in hundreds of water and watershed management projects coast to coast, and have chaired five national conferences on watershed management. My written testimony highlights why the watershed management approach is the only logical and effective approach to solve today's large-scale and complex water resource challenges. In my statement, I offered several elements of success, including coordination among Federal programs, large- scale water planning, integrating both land use and water planning, the need for comprehensive data and modeling, and multi-stakeholder involvement. But as I sat to write my oral presentation and keep it within the 5 minutes, I realized some irony. Twelve years ago this month, I co-chaired one of the earliest and largest watershed conferences to ever occur. WEF organized it jointly with 15 Federal agencies. Well over 1,000 experts participated, and more than 5,000 participated through video conference. Hundreds of papers were delivered, and a lot of excitement was generated, illustrated by this fat proceedings book. At the time, it was kind of this "a-ha" moment, you know. We had made enormous progress since the Clean Water Act of 1972, but further progress toward restoring the physical, chemical and biologic health of our water resources and protecting public health and well-being was stalled. Everyone agreed there: Watershed management was the only answer to take us into the 21st century. It was viewed as the new paradigm. Yet here we sit, 12 years later, and those 15 Federal agencies, despite good intentions, have largely fallen back into siloed, programmatic approaches, focusing on administrative and legislative mandates and not necessarily maximizing the environmental outcomes to the public welfare. Unfortunately today, the same problems exist that we had in the 1990s, compounded by concerns about water scarcity and climate change. Yet, in the face of this, we are back focusing on specific programs rather than holistic solutions. We have limited agency cooperation, though very well-intentioned people. And we have many good examples. You have heard many from the panelists here today, but most are kind of isolated and have limited success, because widescale and integrated implementation of the watershed approach seems to be limited by programmatic constraints. The missing piece is a compelling articulation of the goal. Congress needs to articulate the watershed approach as our national policy toward water resources. I often say that today's problems are dramatically different in scale and in nature than those of the 1970s. One example, the Clean Water Act, was passed when the environmental drivers were point-sourced wastewater pollution. Today the drivers are nonpoint sources, land use, ecosystem restoration, water scarcity, flooding, invasive species, endocrine disruptors, climate change, et cetera. The list goes on. And trying to solve these problems with the 1972 Clean Water Act is like trying to use a 1972 auto repair manual to repair a 2008 electric hybrid; it just doesn't work. So it is with other independent and dated Federal programs that don't reflect the large scale and complexity of the problems we are dealing with today. So I applaud this Subcommittee for examining how we could undertake comprehensive watershed planning and management. I encourage you to consider bold action to change the course of our water resource programs. We need to move toward a holistic watershed framework that integrates what are now competing water resource concerns, scrambling for attention of Federal agencies and dollars, that often work in isolation and even, at times, cross purpose. I thank you very much for this opportunity to speak before your Committee today. And WEF would certainly be happy to work with you on this important challenge. Thank you, again, for the time. Mr. Carnahan. Thank you very much. Finally, let's turn to William Mullican with the Texas Water Development Board. Mr. Mullican. Thank you, Mr. Chairman, Members of the Committee. For the record, my name Bill Mullican. I am deputy executive administrator for water science and conservation at the Texas Water Development Board. I would like to again echo my appreciation for this Subcommittee, for your diligence to focusing on water resource issues, not only for the Nation, but also for many issues that have been of particular importance to the State of Texas. I would like to, rather than repeat many of my co- panelists' remarks, just simply state that I echo the issues that they have raised with respect to the absolute importance and criticality of moving forward with a comprehensive watershed management and planning approach for the nation. The value of water, as far as it relates to our economy, our environment and our public health, simply cannot be quantified. We can no longer afford the inefficiencies or the ineffectiveness of project-specific, project-driven, silo- driven, mission-driven watershed planning where we often and almost always fail to realize opportunities that exist within a watershed for other efficiencies of scale. What I would really like to do today is just focus on a couple of things: what I believe watershed planning for the 21st century really must entail; a bit about the Texas experience and Texas's experience with respect to the Federal activities on watershed planning; and then, finally, a recommendation. First, our working definition. And this is just my working definition of watershed planning. Comprehensive watershed planning is sort of a sequential process. It seems to me that, most often, while we might do one piece or another piece of this process, we always seem to forget to carry it through to fruition. I believe that we have to evaluate and gain an understanding of the physical, chemical, biological and economic characteristics of our watersheds. I believe we have to integrate those characteristics of the watersheds. I think we then need to move to the next level, whereas we explore the opportunities and challenges that we face in those watersheds, especially as it relates to changing conditions, whether it be the implementation of a new water supply project, the implementation of an environmental restoration project, or even something so broadly applicable as the climate variability that undoubtedly is going to be affecting our watersheds. We then have to identify all potentially feasible water management strategies, projects, management objectives, everything that might be identified in order to facilitate the compilation of an effective watershed plan. And then, through a stakeholder-driven process, we must compile those recommendations into a plan that can then be implemented. Often, though, this is where, even if in an ideal world this is where we are at the end, the reality of it is, is that if you don't put in place a process to monitor implementation of that plan and also put in place a process that allows to systematically review and revise that plan based on changed conditions, then the reality is that plan will quickly become shelf art and of little value. As far as the Texas experience is concerned, as Madam Chair was just describing, we have suffered through some very significant droughts. We basically expect drought and are very happy when it rains. And right now we are in the early stages of what appears to be another significant drought. In the 2007 State water plan, there were a number of findings. For example, we now know that our population projections will increase from 23 million people today to 46 million people by 2060. Our current water supplies are on the order of about 17.9 million acre feet per year. We project that that will decline, due to the mining of aquifers and sedimentation in our reservoirs, down to 14.5 million acre feet per year. We understand, though, that our demands for that water supply will increase from about 18.1 million acre feet today to a little over 21 million acre feet per year by 2060. The result is, if we do nothing right now today, for the first time in our 50-year history of water planning, we will be in the red by about 3.8 million acre feet in 2010, and that number will increase to almost 9 million acre feet per year by 2060. The bottom line is, this planning process, which is basically a watershed planning process, for water supply has resulted in an understanding in the State of Texas of the crisis that we face if we do not do anything. But the reality of it is that that watershed planning approach for water supply was just that; it was only water supply planning. While we did try to take into consideration water quality and land use and environmental issues, the reality of it is that the focus on water supply planning did not really do the kind of job that we felt like needed to happen in those other areas. So, in the last legislative session in 2007, the Texas legislature passed Senate Bill 3, which, in part, contained a new watershed effort to look at environmental flows. In other words, what this will do is it has created a similar stakeholder-led process on a watershed-by-watershed basis where recommendations will be developed for how much water needs to be in our streams and rivers and freshwater inflows into our bays and estuaries in order to maintain a healthy ecosystem. That parallel watershed approach to environmental issues will then be integrated into our water supply planning process so that it will then ultimately become a comprehensive effort. We are not there. We have a lot of work to do. But what we have realized is that doing nothing is no longer an option. We are very concerned about the impacts of drought. And, in fact, in the last legislative session, the Texas legislature appropriated $750 million just for this 2-year biennium to implement water supply projects so that we will be prepared when the next drought hits. As far as our involvement with the Federal agencies on watershed planning, I echo the remarks of my co-panelists in that the reality of it is it is a very fragmented approach and it has many inefficiencies built into it that we simply can no longer afford as a Nation or as local sponsors working with the Federal Government. And our recommendation to you today, which is somewhat more repetitive of my remarks back in November when you were considering H.R. 135, is simply this: We would ask that you convene a national forum such that you can pull together all the Federal agencies, the States, regional authorities and NGOs, and have a discussion about what is the appropriate role for the Federal Government and all the agencies in the watershed planning and management activities to ensure that we can gain the kind of efficiencies and effectiveness that are going to be needed if we are going to meet the demands of our Nation as we move forward in protecting our watersheds. Thank you. And I will be happy to answer any questions you may have. Mr. Carnahan. Thank you all very much. I am going to start off with a couple of questions before we go to the other Members. But let me start with Mr. Mullican and Mr. Richter. I wanted to ask these questions of you. Texas, as you indicated, has recently completed your State- wide watershed planning exercise. Do you think that kind of exercise--has that been done around the country? Is that something that could be used as a model for other States? And to Mr. Richter, the computer-based system that was used with the Corps in the Delaware River Basin, is that something that could be useful in other watersheds around the country? And we will start with Mr. Mullican. Mr. Mullican. Yes, sir. In fact, we have worked, Texas has worked with a number of States in the United States, in fact, I personally have worked with about 14 States, in helping them to understand the Texas model for regional water planning. Many of those States are in various different stages of implementing their own version of the Texas model. Now, I think it is important to note, just as it is in Texas, with average rainfall of 6 inches in the west and 60 inches in the east, there is no one-size-that-fits-all, and it is on a State-by-State basis. There are pieces of our approach that are obviously, though, transferrable and have, in fact, been transferred. For example, in Pennsylvania, they have a very similar water supply planning process in action right now in Pennsylvania. I think the most important component of it, though, is the realization that it has to be a stakeholder-led process. In Texas, we defined 11 different interests by law that have to be involved in each one of these regional planning groups. And if you don't have the right interests at the table, then whatever decisions come out of that process are not going to be agreed to by the greater community. The second thing is, is there is an almost overnight realization that we had when we started down this path of the need for good data and good science. And as a result of that, the State has invested about $50 million over the last decade in the development of water data, of water science, and bringing together the facilitation that is needed to understand that analysis. So we have transferred this information to other States. And I know that there are a number of States, from California to Pennsylvania and Georgia, that are looking for, for example, looking at the implementation of something similar to the Texas model. Mr. Carnahan. Thank you. Mr. Richter? Mr. Richter. Yes, thank you, Mr. Chairman. I want to start by emphasizing that, although we are quite happy with the particular model that we are developing in the upper Delaware, I want to caution against any conversation about which model is the best one to use for these purposes. And, in fact, one of the maladies that all of these panelists are sharing with you today is, oftentimes, because of the competition among different models or different impressions about what is the best model--it is "my model is better than your model"--can be one of the dysfunctions that results in us not being able to move forward with comprehensive watershed planning. So I think the key issue is really rather that somebody needs to have clear directive and authority for leading the watershed planning process; that there is no clear directive. You have heard from the panelists--Dr. Galloway said whether it comes from the bottom-up or the top-down doesn't really matter. Ms. Collier, from the Delaware River Basin Commission, is a tremendous example, a terrific example of an organization that was provided with clear authority and clear directive and funding capabilities to enable them to do the kind of comprehensive watershed planning that I think we are all seeking here. So I really want to focus the issue on providing some authority and enabling some leadership, as opposed to technology and the tools. The technology and the tools are very sophisticated, very well-advanced. And that really isn't what is limiting our potential here. Mr. Carnahan. Thank you. And for Mr. Stockton, some have been critical of the watershed planning process for focusing on isolated water resource issues that are lead by single State or Federal agencies without enough outside input. Can you identify for us some steps you think the Corps either has taken or can take to ensure that watershed plan is more comprehensive and has sufficient public input along the way. Mr. Stockton. Thank you, Mr. Chairman. Yes, we have recently issued, actually about 3 years ago, we issued an engineering regulation, called Planning in a Collaborative Environment, trying to really focus more on broadening our scope, broadening the involvement of other folks in that process. We are also currently in the process of revising the Corps of Engineers principals and guidelines for how we formulate and plan projects. And we would like to see the whole comprehensive water resource planning component of that as it goes through the process. I think one of our limitations that has been addressed here is that we are a project-funded organization. We don't have walking around money to collaborate unless we get specific funding for doing a watershed study. It is just the way we get our appropriation and funding typically drives our ability to look at a broader range of problems that is within a watershed and to solicit through cost-sharing sponsors necessary to partner with us. I think that is probably the biggest limitation. Mr. Carnahan. Thank you very much. Next I want to turn to Mr. Boozman from Arkansas. Mr. Boozman. Thank you, Mr. Chairman. Mr. Stockton, what do you see as the advantages and disadvantages of the Corps' existing planning authority found in section 729 of WRDA 1986? So right now we have current legislation in place. What are the pros and cons of the legislation as far as you can see? Mr. Stockton. I think it is a great piece of legislation. It allows us to do comprehensive watershed planning. The difficulties are as you look at larger geographic areas, watersheds, is to solicit the interest of a stakeholder, sponsor, to come up with that 25 percent non-Federal share, to look at that broader range of project issues within the watershed. So I think that is probably the biggest limitation. It is not so much on the authority side. I think we have all the authorities we need to do comprehensive watershed planning. The hard part is to develop the partnerships and the sponsorship to participate financially. Mr. Boozman. Mr. Larson, in a similar vein, what you do see as the appropriate division of responsibilities between state, local governments and the Federal Government in carrying out comprehensive watershed planning? Mr. Larson. Again, I think all of us would probably talk commonly saying there is a role for every level, but the bottom up approach starting at the watershed level, with the local units of governments, with the States playing a coordinating role and an integrating role, and the Federal Government playing a facilitation and a technical assistance role that Mr. Stockton has talked about, that we have all talked about. Everyone has that role, but we have gone too many years with this top down approach that needs to be inverted if we are really going to end up with an approach that works. Again going toward what we have all talked about as saying that any specific plan must fit within the context of a total watershed plan. Mr. Boozman. Mr. Stockton mentioned that one of the obstacles was the Corps could step in and help with the big approach, but trying to find the political will of the local entities, sometimes communities, counties, the State, sometimes interstates to come up with the 25 percent match. What do you see as the biggest obstacle? Do you see that also as a-- Mr. Larson. Well, to me it is an obstacle because we have let it become an obstacle. The first thing we need to do is disabuse governors, local community officials and our citizens of the notion that the Federal Government is going to solve this problem, because they are not. There isn't enough money in the Federal Government to solve this problem. There isn't the ability overall, or the authority overall to make it happen. But they believe that the Federal Government will. And as long as they do that, making it a priority at the local level to put resources into solving these problems isn't going to happen. Our programs right now, our Federal programs don't incentivize those communities and citizens to take the leadership in this activity or the States. So until we set up a structure through our Federal programs that say to them if you do, those communities and States that do these things and do them right, you are going to get the Federal technical assistance that will help you through the process to get these implemented, it is not going to change. I don't believe it is going to change. Mr. Boozman. Thank you. Dr. Galloway, we have heard a lot of discussion on the need for the comprehensive watershed planning obviously, most of it is done at the Federal level done by the Corps. What do you think that the agency or that the Corps ought to be doing with regard to the planning process? In other words, where do you see their function being? Mr. Galloway. The Corps, certainly in many of the studies, has to be the lead for dealing with watershed or a basin plan. But in other cases, I think the Corps has to be in a position to support others in a basin, for example where water quality is a preeminent issue. In larger basins, you can take the Missouri Basin, or the Mississippi, if you really want to go large, and you recognize you will need an agency that has work in all of those States, all the States of the Basin, and recognizes the immensity of the operation. But it can't be just the Corps of Engineers, it has to be collaborative among the agencies. And I really believe that this idea of the Federal agency being the lead integrator of the Federal approach can vary from location to location as to who is in charge and what the States roles can be. So you are very familiar with the challenges of trying to get the States in the Missouri Basin to agree on anything. You do need some sort of Federal leadership in that regard just as Ms. Collier has done in the Delaware Basin. But again, I think it is case by case, where the amount of involvement and the roles can differ. Mr. Boozman. I agree. In our case with Missouri and then the Oklahoma situation that we have, you bring the EPA and other agencies and the politics of it gets very difficult. So we appreciate you all being here. And I will go ahead and defer to the next round, Mr. Chairman. Mr. Carnahan. Next, I want to yield to the gentleman from New York. Mr. Bishop. Thank you, Mr. Chairman. As I indicated in my opening statement, I am interested in the issue of how to resolve or overcome a situation in which different agencies, particularly different Federal agencies approach the solving of a problem from different perspectives. And let me be specific, we have this Fire Island and Montauk Point reformulation study in my district, it is actually a very important study that will govern how we protect 83 miles of shoreline and the associated watershed area. The Army Corps is approaching this issue consistent with the goal of national economic development. So that is to say that they are focusing on shoreline protection and on storm damage mitigation. The Department of the Interior is approaching this from the perspective of national ecosystem restoration. So they are focusing on restoration of natural habitat and on maintenance of the natural processes in terms of shoreline protection. And these areas don't have to be mutually exclusive, but there is a very strong propensity for them to be viewed as mutually exclusive. And so, Mr. Stockton, I am going to ask you to comment on this first, and perhaps Mr. Richter, if you could comment on this. I am very interested in how these differing perspectives can be reconciled. So I would appreciate your comments on that. Mr. Stockton. The rules by which we formulate projects and plan them are based upon Principles and Guidelines from 1983. We are currently in the process of revising those. The current Principles and Guidelines really focus on the National Economic Development plan. Those are kind of rules that drive us. And a lot of that is policy. Actually the existing rules actually do give us flexibility to look at an environmental quality account, social effects, regional economic benefits, but because of the budgetary limitations we, through policy, focus primarily just on the national economic development. As we are working through our revisions to the Principles and Guidelines, we are hoping to elevate the environmental quality account up to a coequal status, if you will, with the national economic development account. So it will be easier for us to do the tradeoffs, recognizing that all of these projects serve multiple purposes and they don't have to be mutually exclusive. So I think we are looking at our policies, trying to improve those and I think we can work through that. So I think there is hope, but right now the focus is on national economic development. Mr. Bishop. Mr. Richter. Mr. Richter. Yes, it may seem like I am oversimplifying, but I think, what we are seeing around the world is when we create the forum for dialogue between different agencies, different stakeholders, different interests to come together and bring their expertise and their information and their different values in a context where they can learn from each other, then some very, very positive things can happen. The question is what kind of a catalyst do we need to provide in order for that type of forum to emerge? And again, I don't think that there is any one particular governance framework that is going to fit for all these situations, but we do have a lot of good examples across the United States and around the world where that type of forum has emerged because there was somebody who took the leadership to direct that the planning activity take place, and then there was funding support to enable it to happen. So in Texas they passed Senate bill 1, the State legislature provided funding to enable them to do watershed planning to talk about water supply and allocation and sharing the water in the major river basins across the State. Again, in the case of Delaware River Basin Commission, again, the same initiative, the same leadership to create that Commission, to create that forum where those different interests and ideas and values can come together along with the funding source. So if we could find the right chemistry, and in your situation there in New York, there probably are a couple of different governance models to look at, but what is necessary is for somebody to create the context and find the funding to enable it, to catalyze it. Mr. Bishop. Thank you very much. Mr. Chairman, I yield back thank you. Mr. Carnahan. Next we will go to Ms. Napolitano. Mrs. Napolitano. Thank you, Mr. Chairman, and Mr. Stockton and mostly to Mr. Galloway. Mr. Stockton, from what I am hearing is they want a leadership, or least the recommendation is for the Bureau to be the leader, but to have a specific plan. Does your 83 principals and guidelines, the new provisions that you are going to hopefully go and institute it would include being able to carry out a plan that maybe then set up to establish that leadership necessary to be able to carry out what these panelists are talking about. And that would then include not only the leadership, but the funding request to Congress to be able then to carry out those things, and not just leave them in limbo, because some of those entities may not of themselves be able to afford to set them up by themselves. Mr. Stockton. Yes, ma'am. I think we would like to see the watershed approach embedded within our revised Principles and Guidelines. We are currently going through interagency coordination with that now, but it is really one of the key parts that we would like to see in the process and procedures by which we put together plans. We have very strong collaborative working relationships with other Federal agencies, with the States, with local and Federal sponsors. And we really do want to have a collaborative bottoms up approach, where we can perform a facilitative role to provide that leadership, to bring folks together, with the technical tools, the models so they can see what the trade offs are to look at alternative plans. We do see a role for us. But it does require appropriations. Mrs. Napolitano. You are prepared to implement them into your new plan? Mr. Stockton. If funds are appropriated, yes, we would include them in our planning process. Mrs. Napolitano. In setting forth the roles, the modeling that you would say, would you use those that have been successful? And to what extent would people be able to have their own, because it is not a one-size-fits-all. Mr. Stockton. Absolutely not, no. Every model you put together, it has the technical background to it, but as people go through these shared vision planning, they identify what the goals and objectives are in the watershed and then you have the technical tools behind that to look at the trade offs of different alternative plans. And so people are very involved in it. Mrs. Napolitano. Does any of this look for the ability to be able to capture some of that watershed to run off into aquifers in the identification through USGS of those aquifers? Mr. Stockton. Typically our primary mission areas are flood damage reduction, navigation and aquatic ecosystem restoration. So we typically don't look too hard at that. I think as we move into more integrated water resource management comprehensive planning, we would want to look at those other alternatives. Mrs. Napolitano. Well, I certainly hope you do, because given the fact that we have climate warming and a lot of that runoff is going to waste sort of kind of, we need to understand that we need to begin to look at more storage, and above ground will be evaporated more quickly. USGS does only one aquifer study a year. I think we need to speed that up. So possibly working with USGS, and maybe having some joint working relationship about prioritizing areas that are heavily in need of the work and being able to bring all the other agencies to fore to assist in the projects. Mr. Stockton. Yes, ma'am. Mrs. Napolitano. Does that make sense? Mr. Galloway. When we did the 1994 study after the 1993 Mississippi flood, we determined a lot of agencies as you have just described, would love to come to participate in collaborative planning, but they have no money. There needs to be, and we recommended provisions be made in the authorizations and appropriations for these different agencies, USGS, Department of the Interior, Fish and Wildlife, et cetera, to have funds to cooperate with the Corps of Engineers and not have to come to the Corps of Engineers for every nickel that they needed to do work. And again, in spite of the fact that you would really like to work, if you don't have the money it is awfully hard to come to the party. And I think that's what we hope you could encourage in the appropriations for these agencies support for the comprehensive planing of the Corps. Mrs. Napolitano. And going back to Mr. Stockton, I am assuming that most Federal agencies do have the adequate authority or funding to do the comprehensive watershed planning or is new authority needed to make Federal agencies better partners? Mr. Stockton. I think we have the authority to do that. Mrs. Napolitano. Well, explain. Mr. Stockton. Well, it depends on each specific study authorization that we are provided. Mrs. Napolitano. Okay, okay. Mr. Stockton. It tells us what the focus of that study is, whether it is navigation, flood , etc. Typically water supply is outside of our mission areas, so you get into storage, those kinds of things. It is really one of our silos that belongs to another agency or to the States. We only do it for multi purpose projects when it is ancillary to one of those specifically authorized purposes. So yes, we would like to do it for watershed studies and, depending upon how they are authorized, we can do it. It is just that you need the appropriations necessary to actually engage the other Federal agencies, the State agencies, and the NGOs to bring them together. Mrs. Napolitano. Well, it made sense to do an overall approach, instead of just a single agency focusing on one thing without considering the rest. Thank you, Mr. Chair. Mr. Carnahan. Next, I want to recognize Mr. Hall of New York. Mr. Hall. Thank you, Mr. Chairman. In my district, which is part of the Delaware River Basin watershed and home to a number of other waters, watershed management is a serious concern. We have had several major flooding events in the last few years. Three 50-year floods in the last 5 years to be exact. As I watch the news as the crest moves down the Mississippi River, I think we are all thinking about the old ways of managing watersheds versus the new ones that we may be moving toward. Homeowners and local farmers are holding their breath alike, both in my district, the 19th district of New York which has the Hudson Valley, the Delaware Valley, the Minisink, the Wallkill, the 10 mile river, all of which, with the exception of the Hudson, has an amazing capacity, but all tributaries in Delaware and its tributaries have flooded numerous times in recent years. So I am happy to see that both a number of you, if not all, are calling for an integrated holistic approach to watershed management. If management was fully integrated where would flood prevention fall as a priority? And what actions could be taken to combine for flood prevention with other goals? I guess I would start by asking Mr. Stockton. Mr. Stockton. Clearly, water is one of those resources that has multiple uses and purposes in how you manage it. And I think the Delaware River Basin Commission is a perfect example of how you actually take all those competing interests, those needs for flood risk reduction, for water supply, for instream flows for environmental purposes and how you would strike those different balances. I would hope that public safety and protecting people's lives and properties would rank very high. But it is all a question of tradeoffs and how you accept less risk in one area and perhaps you accept more risk in another one of those areas. So it really is part of the process. Mr. Hall. Ms. Collier, would you like to weigh in? Ms. Collier. Yes, sir, thank you. After those three floods, the four governors of the Basin came to DRBC and charged us with putting together an interstate flood mitigation task force to look at it holistically, knowing when they stood on one shore of the river, they could not solve the flooding problem. Two aspects came out of that, one, we had a quite diverse task force with Federal members, State members, nonprofits, et cetera came up with 45 recommendations, and then the four governors prioritized those, and we are working with the Federal agencies and the States to actually implement those priorities. One of which is looking across State boundaries on how DRBC might be able to use our authorities to have an umbrella water--excuse me, floodplain protection so that it is uniform on both sides of the river. The other is, as you know, there is a strong cry for voids in the New York City reservoirs to catch some of that flood water. The governors provided us $500,000 and we received proposals from both Corps of Engineers and USGS to develop a model on how you can use the reservoirs of the Basin better for flood mitigation. Well, both those proposals were good. It goes back to the issue of what models best. We asked USGS and the Corps to get together in the same room and also include National Weather Service and see if they could come up with a proposal that used the best of the three agencies and they did. And I think we have a much better product because of it and we are also able to significantly able to leverage the dollars. We will have had a model this fall and then we will have really good science basis to evaluate how best we should use the reservoirs. Mr. Hall. Thank you, I have another fewer than 40 seconds left, so let me jump to Mr. Richter and ask in the Hudson Valley there are a number of environmental organizations and conservation groups that are looking at acquiring what they think will become the floodplain should ocean levels rise with climate change and the Hudson River, of course, is tidal all the way to Troy, so well past my district. The high tide will be considerably higher than it is now. Are you aware of or taking part in any similar---- Mr. Richter. Yes, and it is a very important example of how we can be proactive in our thinking about how we as a society are going to adapt to future climate change. Well, climate change is actually in front of us even today. And it falls in the category of there are of natures services or what a lot of the scientists are calling ecosystem services. So to recognize--the thing of a comprehensive watershed planning approach can enable us to do is to identify where there are areas in the watershed that need to be protected or reserved to provide the natural function of the storing flood waters. Where are the parts of the watershed that need to be protected so that they can naturally recharge groundwater aquifers. In some cases, we have to undo some of the development that may have been done previously in order to regain some of those services, but that is very much along the lines of this comprehensive watershed planning that we have been talking about today is being able to recognize what are the healthy, natural functions of watersheds and trying to work with those to the greatest extent possible. Mr. Hall. And if I may ask one more question, Mr. Chairman, of Dr. Galloway, perhaps as some of other witnesses have noticed watersheds don't respect human boundaries and they do cross over State lines as Mr. Richter said, we may have to find a balance between undoing some of the development that is already done to get rid of impervious surfaces and restore recharge areas and retention areas, grasslands, wetlands, forest lands that may have disappeared. Parts of my district, that would be impossible. Some parts are Orange County, in particular, has mostly undeveloped land area and has a lot of options open to them. And I am happy to say that the local and county governments are taking a very proactive and highly forward looking approach to this. And they have an opportunity to do things right. So the question is, is there a middle ground that could be effectively reached between the old way of flood control and the new? Mr. Galloway. Most certainly. I am a 20-year resident of Orange County, so I appreciate what you are talking about and the challenges you face. There has been development, some of it was wise, some of it was not wise. And I think you have to examine each and every case, but more important than thing else is to recognize the new paradigm and from now on, not move against the direction you want to go, not allow things to be built where you already recognize that if they are built, they are going to be problems for you. And I think that again, in New York State, there is such development in the lower part of the State that is going to be difficult to move everything out of the way of the rivers. Capture what you can and certainly as you go north in Orange County north, there are opportunities that are certainly available. Mr. Hall. Thank you very much, I yield back. Thank you, Mr. Chairman. Mr. Carnahan. Thank you. We don't have any new questions, but I want to wrap up based on some of the testimony that we have heard here today. And in particular getting back to the structure of the Corps in terms of the project driven appropriations process, in terms of the cost share requirements for planning, the sort of lack of incentives involved in that process. I guess my question to really any of the panel, but I want to start with Mr. Stockton, how do we break out of that structure? I would like to hear recommendations on how we can get from where we are to more comprehensive planning, more collaboration between Federal agencies and there and are there some State models out there that we should be looking at. Mr. Stockton, we will start with you. Mr. Stockton. First of all going back to what Dr. Galloway said, we as a Nation back in the last century, really, did some innovative work in the Tennessee Valley and the Columbia River Basin and Missouri River Basin, and I think we cannot forget that. So we have a history of doing this, we just kind of forgot about doing it recently. And I think if I had to make one recommendation, it would be we need to incentivize the States in helping them do their watershed planning. I mean, Texas is very, very sophisticated. They are kind of our gold standard, Texas, California, Pennsylvania. There are really a number of States out there that have really done an incredible job. And so I think it is not anything new, but I think we do need to find ways to incentivize watershed planning on a comprehensive basis and to use that as a criteria for making Federal investments within a watershed as we go through our planning process for specific projects. I think we need to find ways to incentivize that. Mr. Carnahan. Let me ask you to further elaborate. Can you give us examples of ways to provide those incentives that you think would work? Mr. Stockton. Well, as we go through our planning process and our budgetary process, I think we could set budgetary priorities based upon if you had well-defined criteria for the type of watershed plans that need to be done and it would need to be defined, because there are a lot of different definitions out there of what it is. But for those States and watershed entities that had actually gone through the process, had an approved plan, they would get priority both within the planning process and the budgetary process for how we allocate those scarce Federal dollars and make those Federal investments as a way to incentivize good behavior. Mr. Carnahan. Thank you. And I want to open it up to others on the panel. Mr. Freedman. Mr. Freedman. Yeah, I want to comment on that with kind of a general statement, the kind of advice I gave my children about life and that is that a vision without a plan is just fantasy and a plan without a vision is just activity. And so we need kind of both. We need to start at the stakeholder level and through a multi stakeholder process, we need to develop this collective vision. And then we need a framework to implement a plan that is matched to the vision. Otherwise we can't get where we are going. And that plan you know we have talked about top down or bottom up, it really starts at both ends and kind of meets in the middle. The bottom part of it is the stakeholders, the local people, the local citizens. You have to identify what their issues and what their priorities and concerns are, whether it be groundwater or flooding or water quality or ecological protection. And then you need the strength and authority at the Federal level to integrate all the complex partners that you have in this. You know, you have Federal, State, municipal, tribal, you know, its quite complex. And the Federal framework needs to have the authority, needs to have funding and it needs to have some flexibility to make the right decisions. To focus on priority actions, not just programmatic activities, little check boxes where you, you know, you are meeting a particular act. And sometimes that may mean that you don't spend money in one area that seems to be the prescriptive approach of a Federal program, but you reprioritize it in another area. Because all too often we are spending money on things that aren't really making a difference in terms of the objectives. And rather, we need to--combining that vision and that plan focus on the things that gets you the biggest benefit towards your vision. Mr. Carnahan. Thank you. Any others? Mr. Mullican. Mr. Chairman---- Mr. Carnahan. Let me go to Ms. Collier, she had her hand up first. Ms. Collier. Thank you very much. I just want to mention that when we did our resource plan in 2004, we had about 48 different organizations represented at seven Federal agencies. We did this primarily within internal staff. I have a staff between 40 and 45, depending on how finances are, plus receiving a grant from a local philanthropic foundation to get a facilitator. But what is critical is there is an implementation phase afterwards. That is where having the Federal agencies as part of this plan is really critical. Because then we can sit down with them and carve out parts. You know, what is it that the Corps can pick up the ball and lead with this. In fact, we were lucky enough to be one of the partners with the Corps on the pilot watershed studies in 2006. It was really based on priority needs identified in the plan. So it is financial incentives to do the plan, but then also as Mr. Stockton said have some carrot out there that if you do the plan according to key directions and priorities then you get a jump on the Federal agency funds. Mr. Carnahan. Mr. Mullican. Mr. Mullican. The Texas model also integrates into some incentives just as you asked about. And I thought I would just share with you our experience and the success that has had. In 1997 when Senate bill 1 passed, there were these two provisions that really did not get a lot of attention. One was if you want to come to the State for a water route permit for a project, it has to be in the plan. Second one is if you want to come to the State for financing for a water supply project, it has to be in the plan. And nobody paid much attention to it until 5 years later when the first State water plan came out under those provisions. And then all of a sudden, we had cities coming to the State for financing for water right permits and they realized that they had not participated in the planning process, and therefore the project that they were wanting to get financing or permitting for was not in the plan. Well, why was that important? Because the plan was a comprehensive integrated plan that insured that there was not any overallocation of resources and that the decisions that were made or the strategies and projects had been vetted in a very public process. So now that we have gone through the second round of that planning process, we have matured tremendously and the process has matured such that now all the municipalities are very aware of this requirement so that they are very active in participating in the planning process. And so what we have now is a situation where, for example, in July next month, we will be having our second round of applications coming in for water supply projects in this planning process. We have about somewhere in the neighborhood of $350 million available to allocate for financing those projects. And we are already anticipating of eligible projects from this planning effort that we are going to get over a billion dollars of applications. So what happens then? Well as part of the law also since Senate bill 1 has passed, there have been additional provisions. For example, good water conservation plans, you have to have that as part of your application process. You can not come to the State for financing if you do not have a water conservation plan and are in the process of implementing that conservation plan. You have to have water loss audits, you have to submit those water loss audits in order to be able to get financing from the State. So we have put in place a series of, call them carrots, call them sticks or whatever you want to call them. But we have put in place a process that incentivizes participation in the stakeholder-driven process that is done in a holistic, comprehensive manner such that in the end of projects that participated in that are the ones that are getting the advantages of the financing and permitting to move those projects forward to implementation. Mr. Carnahan. Thank you again. Anybody else. Mr. Larson? Mr. Larson. What was described in Texas is also being used, for example, in California, their water resources projects and activities priorities are based on a check list. And the check list includes how many multiple objectives that particular activity is addressing. So if it is a single purpose activity, it is seldom going to get funded. FEMA does the same kind of things, for example, in its hazard mitigation projects that it funds under post disaster mitigation activities. Unless a community has a comprehensive community plan for hazard mitigation, it is not eligible for those kinds of funding. So these kinds of incentives, disincentives are critical. You can build in added incentives, for example, to say that activities must make sure that projects not adversely impacts other communities and other people now, but also in the future based on future conditions that we know are going to occur in terms of watershed development, in terms of climate change and those kinds of things. That goes for urban flood protection as well as water quality and quantity issues throughout the watershed. So all of those things are important to moving us in that direction. Mr. Carnahan. I thank all of you again. And on behalf of Chairwoman Johnson, I thank you for your time, your expertise that you share with us today. And the Subcommittee stands adjourned. 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