Annual Report

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                                                Note from the Acting Director
Dear Colleagues, Friends and Partners:

        First of all, I want to thank all of our partners, including federal agencies, state, tribal and local govern-
ments, the private sector and academia who played a role in the many milestones presented in our annual report.
We cannot take credit for these accomplishments without acknowledging your invaluable contributions.
Je cannot t

      Wii
          'ith the beginning of a new Administration and the promise of new directions and possibilities, EPA's Of-
fice of Wetlands, Oceans and Watersheds (OWOW) will also be looking to the future. Our new EPA Administra-
tor, Lisa Jackson, has outlined  three fundamental values: science-based policies and programs, adherence to the rule
of law, and transparency. OWOW embraces these principles and looks forward to working with our new leadership
to make them a reality here at EPA.

        In the coming year, OWOW will continue to advance strategies to reduce nutrients, which are a leading
cause of pollution in our rivers, lakes, wetlands and estuaries. With the release of the new GulfHypoxia Action
Plan in 2008, we have outlined an ambitious strategy to help combat hypoxia. Another priority will be to prevent
healthy watersheds from becoming degraded. While we have invested heavily in the past decade and made sig-
nificant progress in cleaning up impaired waterbodies, we must also look to protect those waterbodies that meet
standards and support a diversity of aquatic life. And finally, we will continue to work closely with the Corps of
Engineers on policies related to the "Waters of the U.S." and strive to achieve a net increase of wetlands with a
greater focus on biological functions.

        I encourage my staff, as well as our external partners, to explore ways to leverage the great work that we
do.  We need to build upon and expand our partnerships with our sister federal agencies and to work more closely
with our state partners  to ensure that our programs deliver even better environmental performance for the Ameri-
can public. Clean water is everyone's business. And everyone must do his or her part to protect this precious and
finite natural resource.

        I look forward to working with each of you as we strive together to achieve our goals for clean water and
healthy ecosystems in 2009.
                                                       Sincerely,
                                                      Suzanne Schwartz, Acting Director
                                                      Office of Wetlands, Oceans and Watersheds
                                              of Wetlands, Oceans and Watersheds ZOOS Annual Repol~t

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               2008 Highlights

Hypoxia Action Plan: An updated Hypoxia Ac-
tion Plan, released in June 2008, sets the stage to
combat the "dead zone" in the Gulf of Mexico.
The plan, which followed a scientific reassessment
of the 2001 Action Plan, includes 11 actions de-
signed to reduce, mitigate and control hypoxia.

Wetland Protection and Restoration:  OWOW and
its partners improved and/or restored more than
82,000 acres of wetlands in Fiscal Year 2008. Major
contributions came from the National Estuary Pro-
gram, the Five-Star Restoration Program and the
§319 Nonpoint Source Program.

Yflzoo Section 404(c) Veto:  In 2008, EPA exercised
one of the strongest legal authorities available for
wetlands protection under the Clean Water Act
when it completed a §404(c) veto of the Yazoo
Backwater Pumps project in the Mississippi Delta,
protecting more than 67,000 acres of vital wet-
lands.

Wetlands Guidance: In 2008, EPA and the U.S.
Army Corps of Engineers issued revised guidance
on the scope of "Waters of the U.S.," providing
further clarifications on the Supreme Court's deci-
sion in Rapanos vs. the United States.

National Aquatic Surveys: 2008 marked the
completion of the first year of field sampling for
the National Rivers and Streams Assessment,
along with extensive lab and analytical work for
the National Lakes Assessment. Together with
upcoming surveys of wetlands and coastal waters,
these ambitious national assessments will provide
statistically valid data on the condition of the na-
tion's aquatic resources.

Watershed Protection and Restoration: Thanks
to efforts involving EPA and numerous partners,
more than 2,000 waterbodies, identified as im-
paired in 2002, now meet water quality standards.
In addition, more than 9,000 Total Maximum Daily
Loads (i.e., impaired water cleanup plans) were
completed in 2008, including 314 in the Mississippi
Basin.

New Partnerships:  OWOW launched new part-
nerships with federal land management agencies
to accelerate the cleanup of impaired waters on
federal lands.
About the Office of Wetlands, Oceans and
           Watersheds (OWOW)

       OWOW is one of five offices in the Office
       of Water at EPA Headquarters in Wash-
       ington, D.C. The office provides leader-
ship, policy direction, and financial support to
our 10 regional offices and to the states, tribes
and territories that implement our programs.
We also work collaboratively with our sister EPA
offices, other federal agencies, as well as with
local governments, the private sector and non-
profit organizations to carry out our mission to
protect and restore the aquatic ecosystems of our
marine and fresh waters.

In addition to our Clean Water Act authorities,
the office has authorities under the Marine Pro-
tection, Research, and Sanctuaries Act (Ocean
Dumping), Coastal Zone Management Act,
National Environmental Policy Act and several
other environmental statutes.

     OWOW Programs and Initiatives

•   National Estuary Program
•   Dredged Material Management
•   Ocean Dumping
•   Marine Debris
•   Control of Vessel Discharges
•   Ocean Monitoring and the Ocean Survey
   Vessel Bold
•   National Water Quality Inventory
•   National Aquatic Resource Surveys
•   Volunteer Monitoring
•   Nonpoint Source Program
•   Wetlands Permitting
•   Total Maximum Daily Loads (TMDLs)
•   Five-Star Restoration Program
•   Wetland Program Development Grants
•   Targeted Watersheds Grants
•   Community Action for a Renewed Environ-
   ment (CARE) program (new in 2009)

      For more information about OWOW,
             visit epa.gov/owow
                                             of Wetlands, Queans and Watersheds ZOO/Annual Report

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In this report.
Chapter One:   Protecting and Restoring Water Quality on a Watershed Basis (5)
Chapter Two:   Protecting and Restoring Wetlands and Natural Habitats (10)
Chapter Three:  Protecting and Restoring Oceans and Coasts (14)
Chapter Four: Addressing Global Climate Change in Coastal Communities (17)
Chapter Five:  Improving Monitoring and Assessment (19)
Chapter Six:   Improving Environmental Performance
             and Program Management (22)


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                               CHAPTER  ONE
                            on a Watershed Basis
       Although tremendous progress has been made in cleaning up the nation's waters since the passage
       of the landmark 1972 Clean Water Act (CWA), many challenges remain. An estimated 40 percent
       of the waters assessed by the states fail to meet state water quality standards. Low-oxygen or
"dead zones" — caused by excessive amounts of nutrients — plague many waters, including the Gulf of
Mexico, the Chesapeake Bay and other important estuaries. Stormwater runoff from farms, lawns and
cities is now a leading cause of impairment. Unlike factory discharges from pipes and sewage treatment
plants, these discharges are much more difficult to control and require a more holistic, watershed-based
approach.

In 2008, OWOW strengthened capacity at the state and local level to accelerate the cleanup of polluted wa-
terbodies through a number of its statutory programs and initiatives,  including the Total Maximum Daily
Load (TMDL) Program and §319 Nonpoint Source Program. To address hypoxia in the Gulf of Mexico, a
new plan was announced to help reduce and control major sources of pollution that sometimes originate
thousands of miles upstream. OWOW also launched new partnerships with other federal agencies to
restore impaired waters on federal lands, which comprise a large percent of the nation's land area. And
finally, OWOW advanced low impact development (LID) and other innovative approaches to stormwater
management through numerous partnerships and a demonstration project at EPA Headquarters.
                                 A Watershed Approach

   A Watershed Approach is the most effective framework to address today's complex water resource challenges.
   The approach:
       Is hydrologically-defined,geographically-focused
   •   Includes all stressors (air and water)
       Involves all stakeholders, including public (federal, state, local) and private sector
       Is community-based
       Includes a coordinating framework
   •   Strategically addresses priority water resource goals (e.g. water quality, habitat)
       Integrates multiple programs (regulatory and voluntary)
       Is based on sound science
                                             of Wetlands, Queans and Watersheds ZOO/Annual Report

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         2008 GulfHypoxia Plan Focuses on Nutrient Reductions and Accountability
              Hypoxia in the Gulf of Mexico continues
              to garner national attention. An article in
              Science reported over 400 hypoxic zones
      worldwide, and the zone in the Gulf ranks second
      largest in the world at 20,720 square kilometers.
      To move forward on this pressing national con-
      cern, in June 2008, the interagency Mississippi
      River/Gulf of Mexico Watershed Nutrient Task
      Force, chaired by EPA's Office of Water, published
      the Gulf Hypoxia Action Plan 2008 after complet-
      ing a scientific reassessment of the 2001 Action
      Plan. The 2008 Action Plan contains 11 actions
      designed to reduce, mitigate and control hypoxia
      in the Northern Gulf of Mexico and improve water
      quality  throughout the Mississippi River Basin.

      Critical improvements include:

      1)    A focus on state-led nutrient reduction
             strategies.
      2)    A complementary action to develop and
             implement federal strategies.
      3)    An outreach plan to engage stakeholders
             and build partnerships.

      In addition, the Action Plan increases accountabil-
      ity and  specificity through an Annual Operating
      Plan that provides mechanisms for maintaining
      progress and tracking results.  The first of five to
      guide the Task Force, the 2008 Annual Operating
      Plan is a compilation of actions that the various
      state and federal members of the Task Force took
      in FY 2008 to implement the Action Plan.

      The OWOW Director leads the Task Force Coor-
      dinating Committee and EPA's Hypoxia Team in
              The newly redesigned Task Force Web site,
         www.epa.gov/msbasin, serves as a resource for partners
                       and stakeholders.
implementing the Action
Plan with support from
five federal and ten state
partners. A major focus
is the development of
EPA's nutrient reduction
strategy. The four main
objectives include:

•   Employing innova-
    tive uses of Clean
    Water Act programs and tools.
•   Supporting the adoption of state numeric
    nutrient standards and criteria.
•   Enhancing environmental priorities in agri-
    cultural program implementation.
•   Improving and utilizing hydrologic models
    to identify watersheds within the Basin with
    the highest loadings of nitrogen and phos-
    phorus

(Contact: Kristen Goodrich, 202-566-1284)
                                                             Sediment loads empty into the Gulf from the
                                                                    Atchafalaya River Basin.
                                           Office of Wetlands, Oceans, and Watersheds ZOOS Annual Repol~t
6

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           O WOW Promotes Low Impact Development for Cities and Developers
       OWOW works with EPA's Office of Wastewater Management and
       other partners to promote low impact development (LID) ap-
       proaches to prevent and mitigate the effects of urban runoff and
stormwater. LID practices, including green roofs, rain gardens, vegetated
swales and porous pavers, can reduce the harmful effects of stormwater
runoff on downstream receiving waters. The goal is to mimic the natural
way water moves through an area prior to development by using design
techniques and strategies that infiltrate, evaporate and reuse runoff close to
its source.
In January 2008, OWOW published "Reducing Costs through Low
Impact Development (LID) Strategies and Practices" and made numer-
ous presentations at conferences to advertise the findings - that LID
typically saves communities and developers money while protecting
water quality. Working with the signatories of the "Green Infrastruc-
ture Statement of Intent" (2007), OWOW continues to promote these practices
through an LID Best Management Practices Effectiveness database, LID cost-
ing tools, LID models, guidance documents, fact sheets and other products.
On EPA's Green Infrastructure Web site, www.epa.gov/greeninfrastructure,
OWOW co-funded a Municipal Handbook Series to provide local governments
with information on funding options, retrofit policies, green streets and rainwa-
ter harvesting programs. (Contacts: Robert Goo, 202-566-1201; Don Waye, 202-
566-1170 or Anne Weinberg, 202-566-1217)
Large cisterns in the basement of EPA
West collect rainwater as part of EPA's
    LID demonstration project.
                                                                     Reducing Costs through Low Impact
                                                                   Development (LID) shows how LID can pro-
                                                                      tect water quality and save money!
 100 Nonpoint Source Successes Documented

        OWOW exceeded EPA's commitment to partially or fully restore 91
        waterbodies, achieving its fiscal year 2008 strategic plan measure.
        In November 2008, OWOW posted its 100th restored waterbody
 success story to the Nonpoint Source Web site at www.epa.gov/np/success.
 The definition of success is strict: to qualify, a previously impaired water-
 body that had been included on the Clean Water Act's (CWA's) §303(d)
 list of polluted waters must have subsequently achieved water quality stan-
 dards for one or more pollutants and/or designated uses. Further, the water
 quality improvement must have been as a result of addressing nonpoint
 source pollution through actual restoration efforts.

 These successes span 34 states and the District of Columbia, with many states documenting mul-
 tiple successes. In the vast majority of cases, restoration was at least partially funded by the CWA's §319 Non-
 point Source Management Program. Under §319, states, territories and tribes receive grant money that supports
 a wide variety of restoration, educational and monitoring activities. (Contacts: Andrea Matzke, 202-566-1150 or
 Jenny Biddle, 202-566-1281)
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   New Document Helps States Clean up Waters Impaired by Air-Deposited Mercury
   In Sept. 2008, OWOW released "TMDLs Where Mercury Loadings are Predominantly from Air
   Deposition," a document to assist states in developing water-
   shed-based cleanup plans (TMDLs) for mercury-impaired
waters under CWA §303(d).  A Total Maximum Daily Load, or
TMDL, is a calculation of the maximum amount of a pollutant
that a waterbody can receive and still safely meet water quality
standards (i.e., a "pollution budget"). Also referred to as a mer-
cury TMDL "checklist," the document helps ensure that states
follow existing EPA guidance. The document also provides fac-
tors for states to consider when developing TMDLs at different
geographic scales (i.e., waterbody, regional and interstate), build-
ing on successful approaches. This effort is part of EPA's multi-
pronged approach to accelerate the clean up of mercury-impaired
waters. Presently, more than 8,500 water bodies in 43 states and
Puerto Rico are listed as impaired due to mercury. EPA, the states
and other stakeholders have been working to determine how
best to address this challenging problem, particularly where the
primary source of the mercury is atmospheric deposition.

Although state water programs have tools for addressing mercury discharges from water sources un-
der the CWA, they need to work closely with air, waste and toxics programs to address other sources.
The mix of long-distance and local sources makes it difficult in some waterbodies to achieve water
quality standards. However, progress is being made —more than 6,600 waterbodies in 26 states and
the District of Columbia now have approved mercury TMDLs. In addition, a number of states are
moving ahead to address mercury sources within their control through comprehensive mercury re-
duction programs. For more information, visit www.epa.gov/owow/tmdl/mercury/. (Contact: Ruth
Chemerys, 202-566-1216)

                  Cumulative Number of Impaired Water Clean-up Plans
                              (TMDLs) Completed since  1996
          40,000 -,

          35,000

          30,000

       "  25,000
       Q
       ^  20,000
       fc
       *  15,000

          10,000

           5,000

              0
                       # of TMDLs per fiscal year  • Cumulative # of TMDLs
                                  Office of Wetlands, Oceans, and Watersheds ZOOS Annual Repol~t

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                  Impaired Waters on National Forest System
                                    Lands (2005)
                           60.3 %    ^m Top 4 States wrtth 303(d) listed segments In fS land*
                           77.2 %    5SSS lop 9 States with JO^d) listed tagmsnts In hS Uriels
                           22.8 %    ^B 32 other States with 303{d) |
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                                                Restoring  Wetlands a.
                                       Natural Habitatr
           Protecting, sustaining and restoring the health of natural habitats and aquatic ecosystems is a major
           objective in EPA's Strategic Plan. As part of this goal, the Agency is committed to increasing the
           quantity and quality of wetlands, which play a vital role in fish and wildlife habitat, along with
      other critical functions and values. Wetlands also filter pollutants, recharge water supplies and reduce
      flood risks. In addition, wetlands provide recreational opportunities, aesthetic benefits and places for
      research and education.


                  WOW Programs that Support Wetlands and Habitat Goals

                                  The Five-Star Restoration Program

          The Five-Star Restoration Program brings together students, conservation corps, other youth groups,
         citizen groups, corporations, landowners and government agencies to provide environmental education
        and training through projects that restore wetlands and streams. The program provides challenge grants,
          technical support and opportunities for information exchange to enable community-based restoration
            projects.  Funding levels are modest, from $5,000 to $20,000. However, when combined with the
        contributions of partners, projects that make a meaningful contribution to communities become possible.

                                    The National Estuary Program

        The National Estuary Program (NEP) is a very successful community-based program designed to restore
        and maintain the ecological integrity of estuaries of national significance. There are 28 NEPs, each with
        a director and staff, working with local stakeholders to improve the health of their estuary — its waters,
                                       habitats and living resources.
                                   The Tampa Bay National Estuary
                                  Program involves the community in a
                                      coastal restoration effort.
10
                                         Office of Wetlands, Oceans, and Watersheds ZOOS Annual Repol~t

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National Fish Habitat Action Plan Leverages New Partners
     F<
     :
     For the past two years, OWOW has staffed EPA's participa-
     tion in the National Fish Habitat Action Plan (NFHAP)
     and fostered EPA collaboration in several NFHAP regional
partnerships. NFHAP is a comprehensive national, public/pri-
vate partnering strategy created by USFWS to assess, restore and
protect the nation's fish habitats and maximize the impact of fish
habitat conservation dollars on the ground, all to safeguard the
economic value of fisheries as well as the interests of the 32 mil-
lion Americans who fish each year.  Under NFHAP, numerous
federal agencies, states and private interests are building regional
partnerships that are addressing the nation's biggest fish habitat problems and maintaining the benefits
of fish resources.  During 2008, private interests in NFHAP successfully introduced draft fish habitat
legislation, and federal participants drafted a proposed executive order and a national assessment of
fish habitat. (Contact: Doug Norton, 202-566-1221)
                               Clean Water Act §404 Program

   Clean Water Act §404 establishes a permit program to regulate discharges of dredged or fill material into
   waters, including wetlands, of the United States. §404 outlines specific and coordinated responsibilities for
   both EPA and the U.S. Army Corps of Engineers (Corps). EPA is required, in conjunction with the Corps, to
   establish environmental standards for reviewing permit applications for activities that would fill wetlands for
   residential development, roads, levees, and other projects.

   The Corps administers the permit program, processing applications in accordance with EPA and Corps' envi-
   ronmental standards, and issuing permits, where appropriate, after notice and an opportunity for public com-
   ment. Both EPA and the Corps have enforcement responsibility and routinely coordinate the review of permit
   applications to ensure that permit decisions are made in a timely manner, while providing effective protection
   for human health and environmental quality.
EPA and Corps Issue Revised Guidance Clarifying "Waters of the United States"

   In December 2008, EPA and the Corps issued revised guidance clarifying the scope of "waters of the
   United States" protected under the CWA §404 program. This guidance replaces guidance issued in
   2007, which followed the U.S. Supreme Court decision in Rapanos vs. United States. After the 2007
guidance was issued, EPA received more than 66,000 public comments.  OWOW coordinated review
and summary of those public comments, along with an analysis of field experiences to make conclu-
sions and clarifications on three key issues. As a result, the revised Rapanos Guidance further clarifies
the concepts of traditional navigable waters and adjacency, and refines the concept of a relevant reach.
Based on initial feedback, the revised guidance will increase consistency and speed of CWA jurisdic-
tional determinations. For more information, visit www.epa.gov/owow/wetlands/guidance/CWAwa-
ters.html. (Contact: Donna Downing, 202-566-1367)
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       Yazoo CWA 404(c) Veto Protects More Than 67,000 Acres of Mississippi Wetlands

          In 2008, EPA exercised one of the strongest legal authorities available for wetlands protection under
          the CWA when it issued a §404(c) veto of the Yazoo Backwater Pumps project in the Mississippi
          Delta. Under the CWA, EPA can prohibit, restrict or deny using waters of the United States as a
       disposal site for fill material when it determines it will have an unacceptable effect on municipal water
       supplies, shellfish beds and fishery areas, wildlife or recreational areas. The Yazoo Pumps §404(c) Final
       Determination, signed in August, 2008, will protect over 67,000 acres of some of the nation's most valu-
       able water resources, including critical fish and wildlife habitat.  EPA concluded that the proposed proj-
       ect would have resulted in unacceptable damage to these valuable resources that are used for wildlife,
       economic and recreational purposes. EPA has used this CWA authority only 12 times since the law was
       passed in 1972.  (Contact: Tanya Code, 202-566-1063)
       New Mitigation Rule Focuses on Science, Innovation and Ecological Results

          In March, 2008, EPA and the U.S. Army Corps of Engineers (the Corps) issued revised regulations
          governing compensatory mitigation for autho-
          rized impacts to wetlands, streams and other
       waters of the U.S. under §404 of the Clean Water Act.
       These regulations are designed to improve the ef-
       fectiveness of compensatory mitigation to replace lost
       aquatic resource functions and area, expand public
       participation in compensatory mitigation decision
       making and increase the efficiency and predictability
       of the mitigation project review process.  In addition,
       the new wetlands compensatory mitigation standards
       emphasize best available science, promote innovation
       and focus on results. This rule follows the recommen-
       dations of the National Research Council by estab-
       lishing equivalent, effective standards for all forms of
       wetland replacement projects under the Clean Water
       Act.  (Contact: Palmer Hough, 202-566-1374)             The new wetlands rule will improve compensatory
                                                              mitigation when wetlands are drained or filled.
                         Girl Scout Water Drop Patch Project Receives a Facelift
        In March 2008, OWOW partnered with the Girl Scouts of the USA to update and reprint the popular
        Water Drop Patch Project. The patch manual now aligns to the new Girl Scout Leadership Experience.
        It is divided into grade-level, age-appropriate activities suitable for adult's use with Girl Scout Brownies
        through Ambassadors (grades 2-12). New and expanded girl-led, learning by
        doing and cooperative learning activities help Girl Scouts discover, connect and
        take action.  This project is nationally recognized under Linking Girls to the
        Land (LGTTL). Thanks to LGTTL, 35,000 girls each year work collaboratively
        with federal natural resource agencies.To obtain more information, visit www.
        epa.gov/adopt/patch. Free copies of the manual can be ordered by calling the
        National Service Center for Environmental Protection at 1-800-490-9198.
        Ask for EPA document #EPA 840-B-07-001.  Patches can be ordered from the
        GSUSA online store or at Girl Scout council shops. (Contact: Patty Scott,
        202-566-1292)
12
                                           Office of Wetlands, Oceans, and Watersheds ZOOS Annual Repol~t

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EPA Celebrates Ten Years of Wetlands Protection and Enhancement under Five-Star Grant
Program

       OWOW made a renewed commitment to community-based wetlands and stream restoration in
       2008 by releasing a new grant for the Five-Star Wetlands Restoration Program. This marks the
       tenth year of OWOW support for Five-Star, which has restored over 23,000 acres of aquatic
resources (wetlands, dunes and estuaries) and 130 miles of streams by engaging over 21,000 community
volunteers. The National Fish and Wildlife Foundation and its partners will administer the program by
providing small grants to community-based partnerships that restore wetlands and stream corridors,
educate youth about their environment and foster local stewardship of water resources.  With this new
4-year grant cycle, EPA is adopting a number of enhancements to strengthen the Five-Star program.
These include encouraging grantees to develop sustainability plans to maintain restoration efforts
over time, making it easier for grantees to share best practices and lessons learned, offering assistance
for grantees in developing partnerships in a strategic manner, providing greater flexibility in funding
amounts and project duration, and finding ways to develop the technical capacity of project teams.
With these enhancements, the Five-Star program will provide even more inspiration for catalyzing local
action and education. (Contact: Myra Price, 202-566-1225)
                           OWOW Leads the Way in Web 2.0
                                                   Sign in ID TwHtar
       OWOW has been exploring the use of new
       Web-based tools to help communicate
       information and news about our pro-
grams to our partners and to the public. In 2008,
OWOW proved to be at the forefront of the latest
trends in Web technology.

RSS Feeds Provide Real-Time Updates

         Whenever OWOW posts a significant
         new addition to its homepage, an
         RSS feed informs all of our subscrib-
ers. Anyone can elect to receive these updates in real-time. OWOW also started a Twitter account,
where people can have updates sent to their cell phones or other Web-
enabled devices. In the first two months, ninety people followed our
Twitter updates (twitter.com/usepaowow).
                                                                        Find Your Watershed
                                                                          Enter your ZIP:
   OWOW created a "Find Your Watershed" widget that anyone can put
   into their own blog or Web page. By adding this widget to a Web page,
   visitors to that page can type in their zip code and immediately find a
   wealth of information about their watershed generated by EPA's Surf
   Your Watershed database. For more information, visit www.epa.gov/
   owow.
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                                CHAPTER THREE
                              Protecting and Restorin
                                                      nd Coast

            Keeping our ocean and coastal waters clean and safe is an important part
            OWOW has a number of marine pollution prevention programs
            to ensure marine ecosystem health, including improving water
      quality on a watershed basis. In addition to the National Estuary Pro-
      gram, the agency's flagshap watershed protection program, OWOW
      works to assess and reduce the air deposition of nutrients and toxic pol-
      lutants into coastal waters, a leading cause of water body impairments.
      With ever-increasing pressures on coastal resources from development
      and growth, OWOW is working with communities to promote smart
      growth and low impact development.
  of OWOW's mission.
      OWOW works with a variety of stakeholders to develop and implement
      watershed management tools, strategies and plans for coastal
      ecosystems in order to restore and maintain the health of coastal aquatic
      communities on a priority basis, including promotion of dredged material
      management and beneficial uses in a watershed context. In addition,
      as part of the Coral Reef Task Force, OWOW works to protect coral reef
      ecosystems using a watershed protection framework.
              PUMP
                 OUT
           STATION
OWOW promotes the use ofpumpouts
and "no discharge zones" to help
control pollutants from vessels.
      OWOW operates the Ocean Survey Vessel Bold to monitor coastal and ocean waters by conducting
      baseline trends and assessments (e.g., Gulf of Mexico hypoxic zone, climate change indicators, and
      coral reefs) and supporting ocean disposal site management. OWOW is responsible for developing the
      environmental criteria used in determining whether dredged material is suitable for ocean disposal.
      Our office works closely with our partners to improve dredged material management planning and
      provide guidances to promote environmental stewardship in U.S. ports. Significant environmental
      impacts to coastal and ocean ecosystems can occur from vessel discharges, and vessels can serve as
      a vector for non-indigenous species. OWOW is also developing and implementing regulations and
      technical guidance to control pollutants from vessels and is working in conjunction with our federal
      and state partners to address aquatic invasive species both domestically and internationally. Finally,
      our office supports international marine protection programs with other federal agencies through
      negotiations of international standards that address  aquatic invasive species, harmful antifoulants, bilge
      water, dumping of wastes at sea and marine debris.
                                        N_^^_X-V_X-V_X-V_X-
                                        Off|ce of Wetlands, Oceans, and Watersheds ZOOS Annual Repol~t
14

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T
       National Estuary Program Advances Water Quality Protection
                      Efforts in 28 Coastal Communities

he NEPs successfully leveraged EPA §320 grant money to support the implementation of
Comprehensive Conservation and Management Plans (CCMPs). These community-based wa-
tershed plans help address priority issues. Examples include:
    Reducing pollutants from storm water runoff.
    Protecting and restoring important habitat (e.g., revegetation, mapping critical areas and work-
    ing to protect manatees, salmon and other wildlife).
    Developing web-based tools and strategies for habitat protection.
    Using partnership dollars to leverage funds for restoration projects.
    Adopting long-range finance plans.
    Engaging business entities in conservation practices.
    Conducting third-party permit review of local water districts and State Department of Transpor
    tation agencies.
    Developing action plans to address groundwater and surface water use.
    Updating CCMPs to address biological production loss resulting from water
    diversions and invasive species.
    Promoting smart growth and green infrastructure concepts and tools.
    Providing minority high school students with hands-on field and laboratory
    experiences in NEP study areas.
    Developing education and outreach products such as newsletters, calendars
    and Web sites.
                                                                     ESTUARY
                                                                           PROGRAM
                                                                     NATIONAL
       Eart
                                                                          'ports
    Earth Gauge™ Delivers Environmental Information on TV Weather Report,

Earth Gauge™, a free environmental newsletter produced by the National Environmental Education
Foundation and funded in part by OWOW, now reaches more than 175 broadcast meteorologists in 102
media markets, reaching over 211 million local television viewers. Earth Gauge1™ is designed to make it
easy for weathercasters to explain the environmental implications of weather events and what viewers
can do to help protect their watersheds. Other Water offices are now engaged and providing tips on
water efficiency and other issues. For more information, visit www.epa/gov/owow/watershed/weather.
(Contact: Patty Scott, 202-566-1292)
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                              EPA Reinvigorates Marine Debris Prevention
               Marine debris is a pervasive environmental problem
               of increasing public concern. The issue stretches
               beyond the set responsibilities of any individual
      office or agency. Recognizing the need for a comprehen-
      sive approach, OWOW undertook projects with other EPA
      offices, non-governmental organizations and other federal
      agencies.  OWOW created an EPA Marine Debris Workgroup
      that includes the Office of Wastewater Management; the Of-
      fice of Solid Waste; the Office of Prevention, Pesticides, and
      Toxic Substances; and EPA Regional offices. The workgroup
      is developing a comprehensive approach to address the
      types, sources, movement and impacts of marine debris.  In
      addition, the Interagency Marine Debris Coordinating Com-
      mittee, co-chaired by EPA and National Oceanic and Atmo-
      spheric Administration, submitted a report to Congress that contains
      25 recommendations to guide the federal government's strategies
      on marine debris, identifies the sources of marine debris, reviews
      the ecological and economic impacts of marine debris, and provides
      recommendations to reduce marine debris both domestically and in-
      ternationally. The report discusses marine debris efforts, recent progress and innovative ways to address
      the problem. More information is available at www.epa.gov/owow/oceans/debris/index.html. (Contacts:
      Molly Madden, 202 -566-1279 and Katherine Weiler, 202-566-1280)
          Local Girl Scouts receive Water Drop Patch
          awards from former Assistant Administrator
             Ben Grumbles during the Anacostia
            International Coastal Cleanup event.
        EPA Strengthens Ocean Dumping Management

              Owow completed a number of major steps in 2008
              to improve ocean dumping management. In June,
              EPA submitted to Congress a package of legisla-
      tive changes to the Marine Protection, Research, and Sanc-
      tuaries Act to support ratification of the London Protocol,
      an international ocean dumping treaty.  With the U.S.
      Army Corps of Engineers, EPA completed the first draft
      of the consolidated Ocean Disposal and Inland  Testing
      Manuals to promote consistency and improve manage-
      ment of dredged material disposal programs. As co-chair
      of the National Dredging Team (NDT), EPA restructured
      the NDT website creating an information portal on key
      navigational dredging issues. EPA is also leading a
      review of the NDT's progress in implementing its 2003 Ac-
      tion Agenda to assess progress and identify any emerging
      issues of concern.

      More information on the ocean dumping program is
      available at: www.epa.gov/owow/oceans/regulatory/
      dumpdredged/dumpdredged.html. (Contacts:  Molly
      Madden, 202-566-1279 or Ken Potts, 202-566-1267)
Watershed
Academy Webcasts
Provide Training
and Reduce Carbon
Footprint
Watershed
cade my
webcasts
OWOW continues to host regular Webcasts on the
latest topics in watershed management. Thanks
to a new Web platform that uses state-of-the-art
Internet streaming technologies, OWOW is now
able to reach even larger audiences than ever
before. An October Webcast on GulfHypoxia,
which featured former Assistant Administrator for
Water, Benjamin Grumbles, EPA expert Darrell
Brown, and renowned hypoxia scientist Nancy
Rabalais, attracted several hundred participants.
The December 2008 Webcast on rain gardens
drew more than 1,100 attendees.  Webcasts have
emerged as a very cost-effective approach for
providing training while saving money. Archived
versions are accessible 24-7, including podcast
subscriptions from  iTunes. Visit: www.epa.gov/
watershedwebcasts. (Contacts: Anne Weinberg, 202-
566-1207 or Patty Scott 202-566-1292)
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       Global warming is the defining challenge of our generation. The scientific evidence for rising
       global temperatures has been called "unequivocal" by the United Nations Intergovernmental
       Panel on Climate Change. The world's leading scientists have warned that global warming, left
unchecked, will lead to rising sea levels, more frequent droughts and floods, loss of species, spreading
disease and other impacts. Dealing the potential impacts on infrastructure, water supply and habitat
needs to be a top priority for all federal agencies.

New Climate Change Tool Kit Available for Coastal Communities

     The Climate Ready Estuaries (CRE) program is a new partnership established in 2008 among the
     Oceans and Coastal Protection Division, EPA's Climate Change Division, and the National Estu-
     ary Program (NEP) to address climate change in coastal areas. This partnership will strengthen
capacity in the NEPs and other coastal communities to adapt to the effects of climate change and
improve coastal resiliency. Since its inception, CRE has become widely recognized for innovation and
leadership.

In 2008, the CRE program unveiled its Web site, www.epa.gov/cre, to provide users with information
about the importance of coastal adaptation to climate change and provide tools for adaptation.  More
specifically, the online toolkit features resources about coastal vulnerability, adaptation planning,
smart growth, data and monitoring, and sustainable financing, serving a range of needs - from
community members to coastal resource managers.
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         In 2008, OWOW provided targeted assistance to six NEP pilots to identify climate change vulnerabili-
         ties and develop adaptation plans.  Results and lessons learned from these projects will inform future
         efforts and serve as a model for coastal managers to get "ready" for reducing risks and future costs
       associated with rising sea level and other climate change impacts. For more information, visit the CRE
       Web site at www.epa.gov/cre. (Contact: John Wilson, 202-566-1158)

                                            Charlotte Harbor NEP

       Charlotte Harbor National Estuary Program (CHNEP) is developing a vulnerability assessment/
       overview for the seven-county southwest Florida CHNEP study area. The Climate Ready Estuaries pilot
       program will build on this work by developing an adaptation plan for a small city within the area. The
       adaptation plan will address a wide variety of issues, including future scenarios, emergency response,
       minimization/avoidance/mitigation, building materials and design, land development regulations, fiscal
       policies, habitat translocations, exotic plant and animal invasion, management challenges and solutions,
       and variable risk.

                                        Massachusetts Bays Program

       The Massachusetts Bays Program is working with EPA to design and complete a climate change
       vulnerability assessment for the coastal zone of Massachusetts and Cape Cod Bay. This effort will
       leverage existing initiatives under the StormSmart Coasts program in the Massachusetts Office of
       Coastal Zone Management. Upon completion of the vulnerability assessment, the information will be
       incorporated into a revised Comprehensive Conservation and Management Plan (CCMP) to strengthen
       climate change preparation.

                                   Piscataqua Region Estuaries Partnership

       The Piscataqua Region Estuaries Partnership (PREP) will lead a geographic information systems
       (GlS)-based analysis of road-stream infrastructure vulnerabilities associated with projected increases
       in storm water resulting from climate change and future development in the coastal Oyster River
       watershed. The analysis will result in the development of adaptation and mitigation strategies to be
       included in a 2010 Management Plan update.

                                     Partnership for the Delaware Estuary

       The Partnership for the Delaware Estuary (Partnership) will work with its many partners to begin
       evaluating which resources are most at risk and prioritizing what can—and should be—done to
       monitor, protect or otherwise benefit the most valuable and vulnerable features. The Partnership's
       Climate Adaptation Project will focus on assessing vulnerability and adaptation needs for three critical
       "case study" resources in the Estuary:  drinking water, tidal wetlands and shellfish. The final product
       will be an adaptation plan that will provide new guidance on monitoring, management actions and
       policies that have the greatest likelihood to maximize the "natural capital" of these key life-sustaining
       features in the Delaware Estuary and its watershed.

                                        San Francisco Estuary Project

       The San Francisco Estuary Project's (SFEP) 2007 CCMP update targeted the assessment of and response
       to potential impacts of climate change. The San Francisco Bay Conservation and Development
       Commission (BCDC) has taken a lead role  in identifying and planning for these threats, completing
       an assessment of the impacts of sea level rise. With BCDC  and other partners, SFEP intends to work
       with EPA to complete a vulnerability assessment for other climate-related impacts and produce an
       adaptation plan for the estuary.
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    Scientifically defensible data are essential in the Information Age. Water quality monitoring and
    assessment programs—the essential underpinning of all aspects of the watershed approach—are
    critical for establishing priorities, measuring success and following adaptive management strate-
gies. In 2008, OWOW made significant strides toward improving the accessibility, comprehensiveness,
and quality of information on the condition of the nation's waters.

Water Quality Assessment and Total Maximum Daily Loads Information (ATTAINS)

   In 2008, EPA released a new Web site where water quality managers and the public can go to view
   a wide range of state-reported water quality information. This Web site, known as ATTAINS, com-
   bines water quality assessment information reported by the states under §305(b) of the Clean Water
Act, along with impaired waters information reported under §303(d). By combining these two databas-
es (the National Assessment Database and the National Total Maximum Daily Load (TMDL) Tracking
System), ATTAINS gives the "full story" showing which waters have been assessed, which are impaired
and which are being (or have been) restored.  Users can access and download dynamic, continuously
updated tables and charts that summarize state-reported information for the nation as a whole, for
individual states and waters, and for the ten EPA Regions.  The Web site also provides information that
helps EPA track our strategic planning goals. Visit ATTAINS at www.epa.gov/waters/ir. (Contacts:
Shera Reems, 202-566-1264 or Wendy Reid, 202-566-1705)
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                                       National Surveys at Full Steam

                OWOW is working with the states and tribes to conduct a
                series of probability-based surveys (i.e., surveys based on
                a representative, random sample) of major U.S. aquatic re-
         sources to identify national priorities and evaluate the effectiveness
         of water quality protection efforts. These ambitious, unprecedented
         national surveys of water quality demand an exceptional amount
         of coordination and scientific data collection and analysis by EPA
         and its state and tribal partners. The surveys follow the Wadeable
         Streams Assessment, completed in 2006, which is available at epa.
         gov/owow/streamsurvey. (Contact: Susan Holdsworth 202-566-1187)

            •      A National Lakes Assessment is planned for release in
                   2009. In 2008, labs also processed over 10,000 samples
                   collected at 909 lakes in 2007. Sample results are
                   undergoing quality  review and analysis.
                                                                  Ellen Tarcjuinio of OWOW measuring a
                                                                  smallmouth bass in Delaware as part of a
                                                                  stream/river sampling in summer 2008.
                   A National Rivers and Streams Assessment report will be issued in 2011. In 2008,
                   EPA and its partners in the states successfully completed the first of two years of field
                   sampling. More than sixty field crews sampled nearly 850 sites nationwide. Among
                   other benefits, this 2011 report will allow EPA to track progress in meeting our strategic
                   planning goals for wadable streams.

                   A National Coastal Assessment will be released in 2010. In June 2008, OWOW sponsored
                   a national planning meeting with state representatives, where indicators of coastal quality
                   were selected.

                   A National Wetland Condition Assessment will be issued in 2013 (survey data will
                   be collected in 2011). Initial decisions have been made on condition indicators and
                   assessment methods that can be applied across a wide  range of wetland types. EPA is
                   also coordinating a number of regional pilot projects to test wetland field protocols and
                   indicators.
        Enhancing the Use and Sharing of Water Quality Data over the Internet

In 2007, OWOW released version 1.0 of the Water Quality Exchange, or WQX. WQX uses new
Web technology to make it easier for states, tribes, watershed groups and other users to submit water
quality data to the National STORETData Warehouse, EPA's national repository for water quality
data.  In 2008, OWOW released an enhanced version, WQX v2.0, which allows for the sharing
of biological taxonomic results and habitat assessment data. Essentially, WQX v2.0 now handles
a complete suite of water quality monitoring assessment data (physical,  chemical,  biological and
habitat) —making it easier for water quality managers to understand conditions and make decisions.
                                                                                               WQX
          OWOW continues to expand the community of data users by providing training and technical support to states
          and tribes. Web Services, a capability that allows users to incorporate data from the National STORET Data
          Warehouse into their own specialized applications, allows linkages to other water program data systems including
          ATTAINS. The STORET team also worked closely with the U.S. Geological Survey to ensure that the Survey's
          water data system generates data in compatible formats. In addition, OWOW has just released WQX Web, a
          new tool that makes it easier for small organizations without more formal systems to submit data. For more
          information on WQX, visit www.epa.gov/storet/wqx.html (Contact Kristen Gunthardt, 202-566-1194)
20
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                  EPA Completes Cruise Ship Discharge Assessment Report
       As the cruise industry continues to expand, there is growing concern over the potential environ-
       mental impacts resulting from ship discharges. In response, EPA examined five primary waste
       streams from cruise ships. In 2007, OWOW released a draft Assessment Report covering sewage,
graywater, oily bilge water, solid waste and hazardous waste. After reviewing public comments on the
draft report, in 2008 EPA issued a completed Assessment
Report which included options and alternatives to address
the primary cruise ship waste streams.

As part of EPA's ongoing evaluation of environmental
impacts due to vessel discharges, OWOW partnered with
the Alaska Department of Environmental Conservation to
conduct studies in Skagway Harbor, Alaska during July of
2008.  The OSV Bold, EPA's ocean survey vessel, served as the
scientific platform used to conduct these studies: near-field
dilution of treated sewage and graywater discharge plumes
from stationary cruise ships, experiments to determine if
phytoplankton growth in Skagway Harbor is limited by
nutrients, and the examination of nitrogen uptake by seaweed to assess the relative importance of natural
and anthropogenic sources of nutrient inputs. More information is available at:  www.epa.gov/owow/
oceans/cruise_ships/. (Contacts: Laura Johnson, 202-566-1273 or Brian Rappoli, 202-566-1548)
EPA's Ocean Survey Vessel, OSV Bold, Provides Critical Support for Ocean Programs

       As part of a very active year, the OSV Bold, EPA's ocean survey vessel, provided monitoring support
       at 20 ocean dredged material disposal sites.  For the first time, the ship provided primary support
       for West Coast programs. The Bold arrived in San Diego, California in March 2008, and performed
missions as far north as Skagway, Alaska. The ship supported six surveys and one open house event for
EPA Region 9, and eight surveys and six open house events in Region 10. The Bold returned to the East
Coast in October and conducted three surveys and one open house event for Region 4. The ship's mis-
sions were quite varied and included cruise ship discharge studies in Alaska; sediment work on PCBs and
dioxins in Puget Sound; and water quality assessments along the Washington and Oregon coasts. (Con-
tact: Ken Potts, 202-566-1267)
                                                        The Bold, EPA's ocean survey vessel, monitors
                                                       our nation's oceans and coastal waters, including
                                                             dredged material disposal sites.
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                                  CHAPT
                         mproving Environmen
           Performance  and Program Management
      National Estuary Program Implementation Reviews and Programmatic Evaluation

        In June 2008, OWOW released the National Estuary Program (NEP) Implementation Review (
        Report. The report summarizes NEP accomplishments documented during EPA's 2004 -
        2006 Implementation Reviews of the 28 NEPs.  Also, it demonstrates that the Implementa-
      tion Reviews served as an effective tool for EPA to assess NEP strengths and challenges. For
      example, the ecosystem protection projects and education and outreach efforts were found to
      be consistent strengths, while funding and organizational structure were found to be consis-
      tent challenges. The report can be accessed at www.epa.gov/owow/estuaries.

      In November 2008, OWOW completed nine NEP Program Evaluations (PE); all nine programs
      passed. EPA provided each NEP with a final letter with details about strengths, challenges and
      recommendations for improvements. A report summarizing the results of the 2008 PE process is
      expected to be issued in 2009. (Contact Noemi Mercado, 202-566-1251)

      Targeted Watersheds Grants Programmatic Evaluation

            After issuing three rounds of grants to 52 grantees, EPA conducted a programmatic
            evaluation of the Targeted Watersheds Grant (TWG) Program to assess its overall
            effectiveness.  The evaluation examined results to date, including success in build-
      ing on public/private watershed partnerships, achieving environmental results and encour-
      aging innovative approaches. Results indicated that grantees are achieving environmental,
      social and organizational results and are communicating their successes to other organizations and the
      public. The following factors most influenced successful watershed project implementation:
      •     Strong partnerships.
      •     Access to funding.
      •     Stakeholder and community support and organization.
      •     Administrative and technical capacity.

      Grantees reported that the most valuable aspects of the TWG program include funding, which grantees
      often leverage for additional financial support, and programmatic assistance from EPA staff. OWOW
      intends to use the results of the TWG evaluation to improve the program, as well as grants programs across
      OWOW. OWOW will continue to assist grantees in improving their output and outcome metrics, including
      the more difficult challenge of measuring social and organizational outcomes. (Contact: Erin Collard, 202-
      566-2655)
                                      Office of Wetlands, Oceans, and Watersheds ZOOS Annual Repol~t
22

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       Christina River Basin Clean Water Partnership Exceeds TWG Program Goals

  The Christina River Basin Clean Water Partnership in Pennsylvania and Delaware
  succeeded in significantly reducing stormwater pollution. Using a $1 million EPA
  Targeted Watersheds Grant, the partnership reduced the harmful effects of runoff
  on drinking water supplies, recreation, fisheries, and wildlife.  For every federal
  dollar invested, the partnership leveraged more than two dollars, allowing them to
  exceed the original goals, some by more than 50 percent. Accomplishments include
  over 10,000 feet of stream restoration, 8,000 feet of stream fencing and nutrient
  management control plans on over 1,000 acres. The final grant report includes a complete description of the
  projects.

                                         Rathbun Lake

  Iowa's Rathbun Lake Water Alliance (RLWA), a 2003 TWG grantee, has realized success through an
  innovative approach to Best Management Practices (BMP). RLWA used GIS modeling to determine the
  agricultural lands in the watershed where BMPs would achieve the largest reduction in phosphorus and
  sediment at the lowest cost. Outreach and technical assistance were focused in these areas. As a result of
  their targeted approach, costs were reduced by 25 percent and participation  among agricultural producers in
  these areas was 70 percent. For more information, visit www.epa.gov/twg.
Enhancing State and Tribal Wetland Management Programs

       OWOW's Wetlands Division continues to enhance support for state and tribal wetland programs,
       building on recommendations from a 2007 third-party evaluation of the Wetland Program
       Development Grants (WPDGs). In FY08 the division launched the Enhancing State and Tribal
Programs (ESTP) Initiative, a sustained effort to better align EPA's financial, planning and technical
resources to enhance state and tribal wetlands programs, especially those that are in earlier stages of
development. Key components of the ESTP are to:

•   Provide more specificity about wetland program development actions and benchmarks in a
    format useful to states/tribes that are still defining their programs. In FY08 the division consulted
    with states and tribes to develop the Wetlands Core Elements Framework (CEF).  For each of the
    four elements of a wetlands program - monitoring and assessment, voluntary restoration and
    protection, regulatory actions  and  wetland water quality standards - the CEF describes a menu of
    program objectives, actions and milestones that states/tribes can choose from to chart their own
    course for program development.
•   Align Wetland Grants with program-building activities in the Wetlands CEF.  To maximize the
    effectiveness of grant funds, the Wetlands Division plans to closely align future WPDG decisions
    with the program development actions in the Wetlands CEF beginning in FY10.
•   Assist states and tribes to develop  other sources of program funding and support. Recognizing that
    WPDGs are a critical but limited resource for state and tribal wetland programs, we are assisting
    states/tribes to leverage and develop other sources of program  support. An October 2008 webinar
    introduced about 70 participants to the basics of sustainable finance; this curriculum and outreach
    will be expanded in FY09.
•   Provide targeted technical  assistance. The Wetlands CEF provides an excellent framework for better
    understanding where states/tribes are focusing their program development efforts. Beginning
    in FY09, we will use this information to develop more targeted technical assistance that directly
    addresses the needs of emerging state and tribal wetland programs.
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EPA would like to thank and acknowledge the following photographers for their contributions to this
                                          report.

                            Bill and Sharon Draker (cover photo)
                                      Stephan Gersh
                                         Jon Paul
                                       April Wiese
                                        Eric Vance
                                       Danny Hart
                                      Kenneth Potts
                                       Don Paulson
                                       Larry Willis
                           Tampa Bay National Estuary Program
                             EPA Document Number. 840R09001
                         United States Environmental Protection Agency
                           Office of Wetlands, Oceans and Watersheds,
                           1200 Pennsylvania Avenue, N.W. (4501T)
                                   Washington, D.C. 20460

                                        April 2009

                                     www. epa.gov/owow

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