U.S. ENVIRONMENTAL PROTECTION AGENCY
OFFICE OF INSPECTOR GENERAL
Nutrient Pollution: EPA Needs to
Work With States to Develop
Strategies for Monitoring the
Impact of State Activities on the
Gulf of Mexico Hypoxic Zone
Report No. 14-P-0348	September 3, 2014
Hypoxic Zone

-------
Report Contributors:
Dan Engelberg
Julie Hamann
Fred Light
Jayne Lilienfeld-Jones
Tim Roach
Genevieve Borg Soule
Abbreviations
CWA	Clean Water Act
EPA	U.S. Environmental Protection Agency
GMPO	Gulf of Mexico Program Office
MARB	Mississippi-Atchafalaya River Basin
NPDES	National Pollutant Discharge Elimination System
USGS	United States Geological Survey
Cover image: The Mississippi-Atchafalaya River Basin and the hypoxic zone in the
Gulf of Mexico (Map courtesy of the Mississippi River Gulf of Mexico
Watershed Nutrient Task Force).
Are you aware of fraud, waste or abuse in an
EPA program?
EPA Inspector General Hotline
1200 Pennsylvania Avenue, NW (2431T)
Washington, DC 20460
(888) 546-8740
(202) 566-2599 (fax)
OIG Hotline@epa.gov
More information at www.epa.gov/oiq/hotline.html.
EPA Office of Inspector General
1200 Pennsylvania Avenue, NW (241OT)
Washington, DC 20460
(202) 566-2391
www.epa.gov/oig
Subscribe to our Email Updates
Follow us on Twitter @EPAoig
Send us your Project Suggestions

-------
tD S7/|.	14-P-0348
* — *	U.S. Environmental Protection Agency	September 3,2014
sS?
Office of Inspector General
At a Glance
Why We Did This Review
We sought to determine steps the
U.S. Environmental Protection
Agency (EPA) and states in the
Mississippi River Watershed are
taking to reduce nutrients that
contribute to the Gulf of Mexico
hypoxic zone.
Hypoxia is the term used to
describe an area with low oxygen,
which results in conditions adverse
to most aquatic life. The hypoxic
zone in the Gulf of Mexico forms
every summer as a result of excess
nutrients that flow from the 31
states and two Canadian provinces
of the Mississippi-Atchafalaya
River Basin (MARB), and seasonal
stratification of gulf waters. The
5-year average size of the hypoxic
zone is largely unchanged since
1994, at approximately 15,000
square kilometers. According to the
United States Geological Survey,
agricultural sources contribute
more than 70 percent of the
nutrients that enter the Gulf of
Mexico, and an estimated
11.6 million metric tons of nitrogen
are added to the MARB each year.
This report addresses the
following EPA goals or
cross-agency strategies:
•	Protecting America's waters.
•	Launching a new era of state,
tribal, local and international
partnerships.
Send all inquiries to our public
affairs office at (202) 566-2391
or visit www.epa.gov/oiq.
The full report is at:
www.epa.aov/oia/reports/2014/
20140903-14-P-0348.pdf
Nutrient Pollution: EPA Needs to Work With
States to Develop Strategies for Monitoring the
Impact of State Activities on the Gulf of Mexico
Hypoxic Zone
What We Found
The EPA is working to reduce the size of the
Gulf of Mexico hypoxic zone principally by
encouraging states to develop and implement
nutrient reduction strategies. This approach
has some promising aspects that may result in
positive effects to local waterways. States
have developed partnerships and have
identified priority watersheds.
At the time of our review in early 2014, most of the MARB states had not
completed nutrient reduction strategies. In addition, few of the states in
our sample had committed to specific reduction targets or timelines. Some
states have expressed concern over their limited ability to monitor water
quality and measure the progress of the strategies. Without this
information, the EPA will be unable to determine the level of progress
toward achieving basin-wide pollution reduction goals.
Recommendation and Planned Agency Corrective Actions
We recommend that the Assistant Administrator for Water work with state
and federal Task Force members in the Mississippi River Watershed to
develop and enhance monitoring and assessment systems that will track
the environmental results of state nutrient reduction activities, including
their contribution to reducing the size of the Gulf of Mexico hypoxic zone.
The Office of Water agreed with our recommendation and presented
acceptable corrective actions that address it. This recommendation is
resolved based on the EPA's response and a subsequent meeting to
discuss the Office of Water comments.
The EPA lacks
necessary data to
determine the impact
of state nutrient
reduction strategies
on the Gulf of Mexico
hypoxic zone.

-------
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C. 20460
THE INSPECTOR GENERAL
September 3, 2014
MEMORANDUM
SUBJECT: Nutrient Pollution: EPA Needs to Work With States to Develop Strategies for Monitoring
the Impact of State Activities on the Gulf of Mexico Hypoxic Zone
Report No. 14-P-0348
This is our report on the subject evaluation conducted by the Office of Inspector General (OIG) of the
U.S. Environmental Protection Agency (EPA). This report contains findings that describe the problems
the OIG has identified and corrective actions the OIG recommends. This report represents the opinion of
the OIG and does not necessarily represent the final EPA position. Final determinations on matters in
this report will be made by EPA managers in accordance with established audit resolution procedures.
The EPA office having primary responsibility for implementing the audit recommendations included in
this report is the Office of Water.
Action Required
In accordance with EPA Manual 2750, you are required to provide a written response to this report
within 60 calendar days. You should include planned corrective actions and completion dates for all
unresolved recommendations. Your response will be posted on the OIG's public website, along with our
memorandum commenting on your response. Your response should be provided as an Adobe PDF file
that complies with the accessibility requirements of Section 508 of the Rehabilitation Act of 1973, as
amended. The final response should not contain data that you do not want to be released to the public;
if your response contains such data, you should identify the data for redaction or removal along with
corresponding justification.
FROM: Arthur A. Elkins Jr.
TO:
Kenneth J. Kopocis, Deputy Assistant Administrator
Office of Water
We will post this report to our website at http://www.epa.gov/oig.

-------
Nutrient Pollution: EPA Needs to Work With State to
Develop Strategies for Monitoring the Impact of
State Activities on the Gulf of Mexico Hypoxic Zone
14-P-0348
Table of C
Chapters
1	Introduction 		1
Purpose		1
Background		1
Responsible Office		5
Scope and Methodology		6
Prior Audit Coverage		6
2	State Strategies Need Measurement Systems		8
Reducing Nutrients in the MARB Is a Significant Challenge		8
State Nutrient Reduction Strategies Have Been Slow to Develop
and Are Missing Essential Components		9
State Nutrient Reduction Strategies Have Promising Aspects		12
State Strategies' Emphasis on Local Waterways Needs to be
Augmented with a Focus on the Larger Watershed		12
Conclusions		13
Recommendation		13
Agency Comments and OIG Evaluation		13
Status of Recommendation and Potential Monetary Benefits		15
Appendices
A Office of Water Response to Draft Report	 16
B Distribution	 19

-------
Chapter 1
Introduction
Purpose
The purpose of this review was to determine the steps the U.S. Environmental
Protection Agency (EPA) and states in the Mississippi River Watershed are taking
to reduce nutrients that contribute to the Gulf of Mexico hypoxic zone.
Background
Nutrient pollution, or excess concentrations of nitrogen and phosphorous, of the
nation's waters is one of America's most widespread, costly and challenging
environmental problems. According to the EPA, half of the streams in the United
States have medium to high levels of nitrogen and phosphorous. Nutrient pollution
comes from a combination of sources, including agriculture, municipalities and
industrial activities. High concentrations of nutrients in surface water stimulate an
overproduction of algae. As the algae die off, the decomposition process consumes
dissolved oxygen from the water column, creating conditions adverse to most
aquatic life. Hypoxia is the term used to describe an area with very low oxygen.
Ultimately, hypoxia causes a severe decrease in marine life and may affect species
that rely on marine organisms for food.
In addition to damaging marine life, hypoxia is a threat to human health. A harmful
algal bloom in Lake Erie in August 2014 shut down the local water treatment
facility, which left nearly 500,000 people in Toledo, Ohio without access to safe
drinking water. According to a water notice issued by the City of Toledo, the algal
toxins may cause adverse health effects. Symptoms range from diarrhea, vomiting,
nausea, and numbness, to liver damage. According to the Ohio Lake Erie
Phosphorous Task Force, the hazardous algal bloom is due to phosphorous from the
Maumee River, which drains agricultural lands in Ohio and Indiana before
discharging into Lake Erie. The EPA considers effluent from sewage treatment
plants as a source of excess nutrients. While the most recent instance, this is not the
first time that nutrient pollution affected drinking water sources. For example, In
May, 2013 the Des Moines Iowa Water Works struggled to clean nitrates from
water it supplies to its customers as a result of polluted runoff from farms.
Hypoxia is also a significant problem on America's Gulf Coast. The northern
Gulf of Mexico hypoxic zone refers to an area along the Louisiana and Texas
coasts and below the mouth of the Mississippi River. This hypoxic zone was first
observed in 1972. It is the largest area of hypoxia in the United States and the
second largest in the world. The long-term average size of the hypoxic zone is
approximately 15,000 square kilometers (or 5,791 miles) or roughly the size of
Connecticut.
14-P-0348
1

-------
The hypoxic zone forms every summer as a result of excess nutrients that flow
from the 31 states and two Canadian provinces of the Mississippi-Atchafalaya
River Basin (MARB). According to the United States Geological Survey (USGS),
agricultural sources contribute more than 70 percent of the nutrients that enter the
Gulf of Mexico. The USGS also estimates that 11.6 million metric tons of
nitrogen are added to the MARB each year; over half is from commercial
fertilizer used for agriculture. The influx of nutrients and the resulting hypoxic
zone negatively impact the Gulfs seafood industry, which produces one-third of
the nation's seafood. The National Oceanic and Atmospheric Administration
estimates the fishery resources of the Gulf are among the most valuable in the
United States, generating $2.8 billion annually. Further, hypoxia leads to habitat
loss, a decrease in biodiversity, and the alteration of the function and structure of
the coastal ecosystem.
The 5-year average size of the hypoxic zone is largely unchanged since 1994 at
15,000 square kilometers (See Figure 1), with no sustained headway toward a
5,000 square kilometer goal set in 2001 by the Mississippi River/Gulf of Mexico
Watershed Nutrient Task Force (Task Force)1. In 2007, the EPA's Science
Advisory Board (SAB) reported that the goal was not achievable by 2015. To
reduce the size of the hypoxic zone, the SAB recommended that nitrogen and
phosphorous flux (or "loads") in rivers and streams in the MARB be reduced by
45 percent. In the 2008 Action Plan, the Task Force agreed with the SAB's
conclusion regarding the 2015 goal, as well as acknowledging that the 45 percent
reduction may be necessary.
Figure 1: Five-year average size of hypoxic zone substantially unchanged over the
last 20 years
Size of Gulf Hypoxia
25,000
20,000
20,000 	 		1-|		
15,000	^ * s^|" 1 —	^ 	
10,000 - ri iii—i+i
<2 5,000
iiiiiiinimmm
iiiiiniiiiiiiiiini
Size of
Hypoxic Zone
5 year
average
Goal
0
1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
Source: OIG analysis of data from the Louisiana Universities Marine Consortium.
1 The federal members are the U.S. Army Corps of Engineers, U.S. Department of Agriculture, U.S. Department of
the Interior, National Oceanic and Atmospheric Administration, and the EPA. State members are Arkansas, Illinois,
Indiana, Iowa, Kentucky, Louisiana, Minnesota, Mississippi, Missouri, Ohio, Tennessee and Wisconsin.
14-P-0348
2

-------
The Clean Water Act
The Clean Water Act (CWA) sets a national goal that all waters of the United
States be fishable and swimmable. The process for achieving this goal involves
multiple steps. These steps include establishing water quality standards,
conducting monitoring, identifying "impaired waters," and developing a total
maximum daily load (TMDL) (see Figure 2). The EPA and states can control
point sources of pollution through issuing National Pollutant Discharge
Elimination System (NPDES) permits. The states may obtain authority from the
EPA to issue NPDES permits directly to facilities. To date, 46 states have
obtained full or partial NPDES program authority.
Figure 2: Improving water quality through the CWA
Steps in the Water Quality-based	Relevant Statutes
Approach of the Clean Water Act	and Regulations
Adopt 'W ater Quality Standards
Develop TMDLs
Monitor and Assess Waters
List Impaired & Threatened Waters
Manage Xonpoint Sources via
Grants. Partnerships, and
Voluntary Programs
Control Point Sources via
XPDES Permits
CWA 303 (a) - (c)
40 CFR 130.3
40 CFR 130.4
CWA 303 (d)
40 CFR 130.7
CWA 303 (d)
40 CFR 130.7
CWA 303 (e)
40 CFR 130.5
40 CFR 130.6
Source: Adapted from EPA training module, Understanding TMDLs.
CWA Section 303(c)(2)(A) requires states to establish designated uses for
waterbodies and adopt water quality criteria that are protective of those uses.
Consideration for use and value for waterbodies includes public water supplies,
propagation of fish and wildlife, recreation, agricultural, industry, and navigation.
Under Section 303(d), states are required to develop lists of impaired waters. The
EPA describes these waters as "too polluted or otherwise degraded to meet the
water quality standards set by states."
The law requires that the states establish priority rankings and develop a TMDL
for these waters. A TMDL is a calculation of the maximum amount of a pollutant
that a waterbody can receive and still safely meet water quality standards. CWA
14-P-0348
3

-------
Section 402, NPDES, regulates industrial, municipal and other point sources that
discharge into waters of the United States. Facilities must obtain permits if their
discharges go directly to surface waters. In contrast to the NPDES permit
program, which includes regulatory controls over point sources, there are no
required regulatory controls of nonpoint source discharges in the CWA.
EPA's Approach to Reduce the Gulf of Mexico Hypoxic Zone
The EPA's approach to reduce the Gulf hypoxic zone is based upon the Task
Force states developing and implementing nutrient reduction strategies. The Task
Force first encouraged this in the 2008 Action Plan where it noted that "no single
approach to nutrient reduction would be effective in every state." In 2011, the
EPA published a memo entitled Working in Partnership with States to Address
Phosphorus and Nitrogen Pollution through Use of a Framework for State
Nutrient Reductions (the Nutrient Framework memo), which is a state-based
strategy to reduce nutrient pollution nationwide. The EPA is assisting states in
developing these strategies.
The Task Force is directed by a federal co-chair and a state co-chair. The current
co-chairs are EPA (represented by the Assistant Administrator of the Office of
Water) and the State of Iowa (represented by Iowa's Secretary of Agriculture).
Established in 1997, the Task Force's role is to provide executive-level direction
and support for coordinating the actions of participating organizations' work on
nutrient management within the Mississippi River/Gulf of Mexico Watershed.2
The Task Force members are involved in a variety of activities aimed at reducing
nitrogen and phosphorus pollution to the Gulf of Mexico. Some of these activities
include monitoring, modeling, outreach and education, and financial and technical
assistance.
The Task Force issued Action Plans in 2001 and 2008. Each of these plans laid
out 11 actions needed for reducing and controlling hypoxia in the Gulf of Mexico.
The 2008 Action Plan called upon each of the 12 Task Force-member states to
develop nutrient reduction strategies by the end of 2013. Promoting state adoption
of these strategies is a key component of the Task Force's approach for
decreasing the size of the hypoxic zone. Action Item #1 in the 2008 Action Plan
states:
"Complete and implement comprehensive nitrogen and phosphorus
reduction strategies for states within the Mississippi/Atchafalaya River
Basin encompassing watersheds with significant contributions of nitrogen
and phosphorus to the surface waters of the Mississippi/Atchafalaya River
Basin, and ultimately to the Gulf of Mexico." 3
2	Charter of the Mississippi River/Gulf of Mexico Watershed Nutrient Task Force, May 1998.
3	Mississippi River/Gulf of Mexico Watershed Nutrient Task Force Gulf Hypoxia Action Plan 2008, page 32.
14-P-0348
4

-------
The Task Force issued Reassessment 2013: Assessing Progress Made Since 2008,
which reports details on state program developments since implementing the 2008
Action Plan. That same year the Task Force also released Looking Forward: The
Strategy of Federal Members of the Hypoxia Task Force. The primary objective
of this strategy "is to provide focused and effective support for the development,
refinement, and implementation of state nutrient reduction strategies." The report
describes federal efforts to support the state strategies. These efforts include
providing additional scientific and technical assistance, expanding education and
outreach on nutrient pollution, and working with landowners to foster voluntary
conservation commitments.
In 2011, the EPA's Office of Water
released a memorandum4 reaffirming
EPA's commitment to partnering
with states to accelerate reduction of
nitrogen and phosphorous loadings in
the nation's waterways. The Office
of Water established a series of
recommended elements of a
framework to reduce nutrient
pollution through state nutrient
reduction strategies. The strategies
encourage collaboration between
multiple levels of stakeholders
including state and federal
environmental and agricultural
agencies and private landowners to
achieve nutrient reductions in local
waterways. Currently, this eight element approach for developing state nutrient
reduction strategies is a major part of the Task Force's strategy for reducing the
Gulf hypoxic zone. States are encouraged to use this framework to develop and
implement their individual reduction strategies.5
Responsible Office
The EPA's Office of Water is responsible for implementing the CWA. It manages
EPA programs to achieve the CWA goal that the nation's waters should be
fishable and swimmable. The Office of Water provides guidance, specifies
scientific methods and data collection requirements, performs oversight and
facilitates communication. The office helps the states and tribes to build capacity,
and water programs can be delegated to them for implementation. The effort to
reduce nutrients nationally is a priority for the Office of Water.
Eight Framework Elements
1.	Prioritize watersheds on a statewide basis
for nitrogen and phosphorus loading
reductions.
2.	Set watershed load reduction goals based
upon best available information.
3.	Ensure effectiveness of point source permits
in targeted/priority sub-watersheds for:
wastewater treatment facilities,
Concentrated Animal Feeding Operations
and urban stormwater sources.
4.	Agricultural Areas.
5.	Storm water and Septic systems.
6.	Accountability and verification measures
7.	Annual public reporting of implementation
activities and biannual reporting of load
reductions and environmental impacts
associated with each management activity in
targeted watersheds.
8.	Develop work plan and schedule for numeric
criteria development.
4	Working in Partnership with States to Address Phosphorus and Nitrogen Pollution through Use of a Framework
for State Nutrient Reductions, EPA Office of Water, March 16, 2011.
5	Refer to EPA's Mississippi River Gulf of Mexico Watershed Nutrient Task Force Website for links to state
nutrient reduction strategies (http://water.epa.gov/tvpe/watersheds/named/msbasin/nutrient strategies.cfm).
14-P-0348
5

-------
Scope and Methodology
We interviewed staff and managers from the EPA's Office of Water, EPA
Regions 5 and 7, the Gulf of Mexico Program and Chesapeake Bay Program
Office. We also interviewed staff and managers from the environmental and
agricultural departments in Illinois, Indiana, Iowa, and Missouri. These states
account for roughly 48 percent of the nitrogen and 43 percent of the phosphorus
load in the Mississippi River Watershed. Additionally, we interviewed staff from
the USGS, and other individuals knowledgeable about the hypoxia issue. We
reviewed final state nutrient reduction strategies for Iowa and Ohio, and draft
strategies for Illinois, Indiana, Kentucky, Louisiana, Minnesota, Mississippi,
Missouri and Wisconsin (Arkansas and Tennessee had no public documents
available for review) to determine how states plan to reduce nitrogen and
phosphorus loadings flowing into waterways. To further our understanding of
large watershed management programs, we reviewed more than 20 studies
conducted by leading scientists, academic researchers and government officials
studying watershed restoration programs.
We conducted this performance audit from February 2013 to June 2014 in
accordance with generally accepted government auditing standards. Those
standards require that we plan and perform the audit to obtain sufficient,
appropriate evidence to provide a reasonable basis for our findings and
conclusions based on our audit objectives. We believe that the evidence obtained
provides a reasonable basis for our findings and conclusions based on our audit
objectives.
Prior Audit Coverage
EPA OIG Report No. 09-P-0223, EPA Needs to Accelerate Adoption of
Numeric Nutrient Water Quality Standards, August 26, 2009:
This report evaluated the effectiveness of the EPA's actions to establish nutrient
water quality standards in waters covered by the CWA. The OIG found that states
had not been motivated to create these standards because implementing them is
costly and often unpopular with various constituencies. Additionally, the EPA has
not held the states accountable for milestone commitments nor had the agency
adequately, until recently, used its CWA authority to promulgate water quality
standards for States. The OIG recommended that the EPA select significant
waters of national value which need numeric nutrient water quality standards to
meet the requirements of the CWA, and set numeric water quality standards to
meet CWA requirements for those waters. In addition, the OIG recommended
establishing EPA and state accountability for adopting numeric nutrient standards
for the rest of the Nation's waters; and metrics to gauge progress made by the
States. The agency agreed with some but not all of the recommendations.
14-P-0348
6

-------
EPA OIG Report No. 13-P-0271, Improved Internal Controls Needed in the
Gulf of Mexico Program Office, May 30, 2013:
The purpose of this audit was to determine whether the EPA's Gulf of Mexico
Program Office (GMPO) had established effective internal controls over program
operations. The OIG found that two of GMPO's performance measures are
unrealistic in that they do not reflect what the office was set up to achieve. The
two unrealistic measures involve the size of the hypoxic zone and the National
Coastal Condition Report Index. Further, one strategic objective (environmental
education) is not being measured. This occurred because GMPO had not
performed an assessment of its strategic objectives and performance measures, as
required by government-wide internal control standards. The OIG recommended
that GMPO conduct a risk assessment of its strategic objectives and measures,
and work with the Office of Water to adjust those measures to accurately reflect
GMPO's mission. The OIG also recommended that GMPO complete actions to
establish an office Web content review process. The agency agreed with almost
all of the recommendations.
EPA OIG Report No. 08-P-0199, EPA Needs to Better Report Chesapeake Bay
Challenges — A Summary Report, July 14, 2008:
This report summarized several evaluations conducted by the OIG in response to
a congressional request. The OIG found that despite many noteworthy
accomplishments by the Chesapeake Bay partners, the Bay remains degraded and
new challenges are also emerging. Bay partners need to address uncontrolled land
development, limited implementation of agricultural conservation, practices, and
limited control over air emissions affecting Bay water quality. The EPA does not
have the resources, tools, or authorities to fully address all of these challenges.
Farm policies, local land development decisions, and individual life styles have
huge impacts on the amount of pollution being discharged to the Bay.
The OIG recommended that the EPA Administrator improve reporting to
Congress and the public on the actual state of the Chesapeake Bay and actions
necessary to improve its health. We also recommended that the Administrator
develop a strategy to further engage local governments and watershed
organizations to capitalize on their resources, tools, authorities, and information to
advance the mission of the Chesapeake Bay, and provide the Chesapeake Bay
Program Office with the opportunity to comment on proposed rulemaking related
to pertinent air issues. The EPA concurred with all of the recommendations in this
report.
14-P-0348
7

-------
Chapter 2
State Strategies Need Measurement Systems
Reducing nutrients in the MARB is a significant challenge to the EPA and states.
The EPA's current approach to addressing hypoxia in the Gulf of Mexico is
centered on individual state strategies to achieve long-lasting nutrient reductions.
This could provide state environmental and agriculture agencies the potential
opportunity to better collaborate and identify priority watersheds within their
state. However, the focus of the state-driven strategies is on improving local water
quality rather than reducing the size of the Gulf hypoxic zone. As of February
2014 most of the Task Force states had not completed their strategies. Further, our
review of draft and completed strategies indicates that few states are committing
to specific nutrient reduction targets or timelines. Additionally, regional staff and
state managers agree that monitoring is a challenge. However, without water
quality monitoring data, the EPA will be unable to determine the impact of state
nutrient reduction strategies on reaching basin-wide nutrient reduction goals.
Reducing Nutrients in the MARB Is a Significant Challenge
Achieving reductions in nutrients that contribute to the Gulf of Mexico hypoxic
zone poses a significant challenge to the EPA and states. This challenge is due to
the vast size of the Mississippi River Watershed, the lack of CWA regulatory
authority over nonpoint source pollution, and competing environmental priorities:
Size of the MARB watershed: The MARB is the third largest watershed in the
world. It covers 41 percent of the contiguous United States with over 1.2 million
square miles. The 1.18 million farms in the MARB cover approximately 843,000
square miles of the watershed.
Limited regulatory authority over the most significant source of pollutants:
Most of the nitrogen and phosphorus that contribute to the hypoxic zone come
from activities that are largely unregulated by the CWA. The USGS estimates that
agricultural sources contribute more than 70 percent of the nitrogen and
phosphorus delivered to the Gulf (see Figure 3).
Competing public policy priorities: The 2005 Energy Policy Act established the
country's first renewable fuel mandate. This mandate was intended to reduce
energy imports but it also leads to more land being put into corn production. This
increases the amount of nutrients applied to the soil. A 2008 study predicted that
meeting the U.S. goal of 15-36 billion gallons of renewable fuels by 2022 would
increase the dissolved inorganic nitrogen load to the MARB by between 10 and
14-P-0348
8

-------
34 percent.6 The article states, "Examination of extreme mitigation options shows
that expanding corn-based ethanol production would make the already difficult
challenges of reducing nitrogen export to the Gulf of Mexico and the extent of
hypoxia practically impossible without large shifts in food production and
agricultural management."
Figure 3: Sources of nutrients released into the Gulf of Mexico
Nitrogen	Phosphorus
4%
8%
9%
12%
16%
71%
80%
Atmospheric deposition
Urban and population sources
Natural land
Agriculture (crops & livestock)
Source: OIG analysis of USGS data:
http://water.usqs.qov/nawqa/sparrow/qulf findings/primary sources.html.
State Nutrient Reduction Strategies Have Been Slow to Develop and
Are Missing Essential Components
The 12 states in the Mississippi-Atchafalaya River Basin with significant nutrient
contributions (also known as the 12 "Task Force states") have been slow to
develop strategies despite the 2008 Task Force goal of strategy completion by no
later than 2013. Only two states, Iowa and Ohio, have a final strategy. To date,
only three states—Iowa, Minnesota and Wisconsin—had set nutrient reduction
goals. Of these three states, only Minnesota has a timeframe for meeting these
goals. Without both goals and timeframes, we believe the EPA and the states will
be unlikely to determine if these strategies are reducing nutrients in the MARB.
The EPA encouraged these 12 states to develop methods to track progress toward
achieving nutrient reduction goals, but these states have been reluctant to commit
to this. The OIG reviewed EPA regional comments on four state strategies that
6 Donner, Simon D., and Christopher J. Kucharik. "Corn-based ethanol production compromises goal of reducing
nitrogen export by the Mississippi River." Proceedings of the National Academy of Sciences 105.11 (2008): 4513-
4518.
14-P-0348
9

-------
were available (Iowa, Minnesota, Ohio, and Wisconsin). The EPA regional staff
requested that states:
•	Develop a timeframe for activities included in the strategy.
•	Plan for measuring progress of the strategy.
•	Request further analysis and support for determining the effectiveness of
best management practices.
Our review of both draft and completed strategies indicates that most do not include
nutrient reduction goals or timeframes to achieve nutrient reductions (see Table 1).
Table 1: Status of state nutrient reduction strategies in Task Force states
Task Force State
Final Strategy
(YIN)
Nutrient Reduction Goal
Timeframe for achieving
reduction goal
Arkansas
State has not reported when it will produce a draft or final
Illinois
N
None
None
Indiana
N
None
None
Iowa
Y
45% N and P Reduction
None
Kentucky
N
None
None
Louisiana
N
None
None
Minnesota
N
20% N Reduction; 35% P
Reduction
By 2025
Mississippi
N
None
None
Missouri
N
None
None
Ohio
Y
None
None
Tennessee
State has not reported when it will produce a draft or final
Wisconsin
N
45% P Reduction Only
None
Source: OIG analysis of Task Force states Nutrient Reduction Strategies from the EPA website:
http://water.epa.qov/tvpe/watersheds/named/msbasin/nutrient strategies.cfm.
Of the 12 Task Force states, only Iowa and Minnesota established nitrogen and
phosphorus reduction goals. Wisconsin only has phosphorus reduction goals. The
other states do not have nutrient reduction goals. Minnesota's draft strategy is the
only one with a timeframe for achieving nutrient reductions. By 2025, the state set
reduction goals of 20 percent for nitrogen and 35 percent for phosphorous. While
this is a positive step, Minnesota accounts for just 2.9 percent of nitrogen and 2
percent of phosphorus discharged to the Gulf of Mexico according to the USGS.
The other 11 Task Force states contribute approximately 80 percent of the
nitrogen and phosphorus reaching the Gulf of Mexico. Most of these states do not
have nutrient reduction goals, and therefore have no timeframe for achieving
nutrient reductions. Iowa and Wisconsin have goals, but do not have a timeframe
for achieving these goals.
The state and regional personnel we interviewed expressed a concern about their
ability to monitor water quality and to a lesser extent, measure the progress of the
strategies. They cited various reasons, including financial and technical
constraints. Measurement and verification methods are complicated because
14-P-0348
10

-------
several factors need to be considered when determining the success of the state
strategies.
One important factor, according to USGS, is tracking changes in land
management practices such as farm field drainage systems and conservation
practices. Both the USGS and The National Academies have expressed the
concern that currently there is no clear way to track this and therefore no way to
determine the effectiveness of specific management practices in reducing nutrient
loadings. Additionally, it is often difficult to draw a causal link between changes
in land management practices and the resulting nutrient load because there is
often a lag time. It could take years or even decades for the effects to be fully
realized.
Table 2 contains a summary of the status of monitoring and establishing
milestones, according to state officials we interviewed. These four states account
for roughly 48 percent of nitrogen and 43 percent of phosphorus flowing into the
Gulf of Mexico.
Table 2: Status of measures in four key Task Force states
State
Status of monitoring and establishing milestones
Illinois
Relies on data gathered from fertilizer sales to estimate nutrient loadings from
agricultural sources.
The Bureau of Water Chief stated that Illinois has an overall goal of 45%
reductions in phosphorous and nitrogen loadings.
Indiana
While the 45% nutrient reduction goal is not planned for the state strategy, the
Chief of the Watershed Assessment Branch stated it is important to conduct
baseline monitoring before establishing any reduction goals for Indiana
Started including phosphorus monitoring requirements in NPDES permits and
Best Available Technology phosphorus limits of 1 mg/L in NPDES permits that
discharge up to 40 miles upstream of a lake.
Iowa
While Iowa is committed to the Task Force's 45 percent nutrient reduction goal,
the Director of the Iowa Nutrient Research Center voiced concerns about the
magnitude of change that is required to reach this goal.
Missouri
The state has not yet established nutrient reduction goals and doesn't have
baseline data to gauge progress of reductions.
Requires all point sources that discharge more than 100,000 gallons per day to
monitor for nutrients.
Source: OIG analysis of state-provided agricultural and environmental information.
While the strategy-based approach shows promise for reducing nutrients and
improving local water quality, progress in strategy development has been slow.
Additionally, many of the strategies do not include reduction goals and
milestones. This will make it difficult to hold states accountable for reductions.
The states and regions expressed the need for a well-defined comprehensive
monitoring program to measure the progress and efficacy of activities undertaken
as part of state strategies.
14-P-0348
11

-------
State Nutrient Reduction Strategies Have Promising Aspects
State nutrient reduction strategies have several promising features and encourage
collaboration between environment and agricultural stakeholders. We spoke with
environmental and agricultural staff and managers in Illinois, Indiana, Iowa, and
Missouri, which as stated above, account for roughly 48 percent of nitrogen and
43 percent of phosphorus flowing into the Gulf of Mexico. Most expressed
optimism that their strategies would result in a reduction of nutrient and
improvements in local water quality. In addition, these four states have already
identified, or have plans to identify priority watersheds. This is consistent with
element #1 of the EPA's Nutrient Framework Memo. Representatives from the
environmental and agriculture departments in Illinois, Indiana and Iowa stated
that they require or have plans to require phosphorus water quality-based limits or
technology-based effluent limits in NPDES permits for point sources such as
wastewater treatment facilities. An assistant director from the Missouri
Department of Natural Resources stated that the state currently requires nutrient
monitoring in selected NPDES permits, which could lead to phosphorus and
nitrogen limits in the future.
In Iowa, state agencies are collaborating with universities to design and
implement the state strategy. The Iowa state legislature provided $1.5 million to
establish a nutrient research center with three public universities. The center has
funded 10 research projects in 2013-2014 to pursue science-based approaches to
areas that include evaluating the performance of current and emerging nutrient
management practices, and providing recommendations on implementing the
practices and developing new practices. The Director of the Iowa Nutrient
Research Center stated that there will be annual reporting on progress and on
adoption of practices.
State Strategies' Emphasis on Local Waterways Needs to be
Augmented with a Focus on the Larger Watershed
The state environmental and agricultural program managers we interviewed
explained that nutrient reduction efforts are currently aimed at improving water
quality in local waterways. This is consistent with the Nutrient Framework Memo
element #1, Prioritize watersheds on a statewide basis for nitrogen and
phosphorus loading reductions. While an emphasis on local waters is vital for
achieving the nation's clean water goals, there is no assurance that individual state
successes will result in the nutrient reductions needed for the watershed as a
whole.
In its 2013 Federal strategy, the Task Force stated that the primary priority of the
document is "to provide focused and effective support for the development,
refinement, and implementation of state nutrient reduction strategies." As we noted
in chapter 1, the Task Force's first action item is to develop strategies that reduce
nutrients ". . . ultimately to the Gulf of Mexico." To efficiently reduce nutrient
14-P-0348
12

-------
loadings affecting the hypoxic zone, the work of individual states will therefore
need to be coordinated. We believe that over the long term, the EPA and its
partners on the Task Force will need to promote a watershed-level focus for the
state strategies in the MARB.
Conclusions
Reducing the size of the hypoxic zone poses a significant challenge. While the
Task Force states are in the process of developing and implementing nutrient
reduction strategies, there is no requirement for states to ensure that they will fully
implement them and that the practices implemented will achieve the intended
watershed-level environmental goal. An ambitious environmental goal such as
reducing the size of the hypoxic zone must be addressed by a well-designed and
implemented plan that also recognizes the challenges for the EPA and states. This
includes a uniform and comprehensive measurement and accountability system
for setting goals and tracking progress at the state and watershed level. The EPA
and other federal Task Force members need to lead as well as support states in
developing a measurement system that includes essential baseline data and
tracking progress toward goals using consistent measures.
Recommendation
We recommend the Assistant Administrator for Water:
1. Work with state and federal Task Force members in the Mississippi River
Watershed to develop and enhance monitoring and assessment systems
that will track the environmental results of state nutrient reduction
activities, including their contribution to reducing the size of the Gulf of
Mexico hypoxic zone.
Agency Comments and OIG Evaluation
The agency agreed with our recommendation and presented corrective actions that
address it. It outlined four activities that will enhance monitoring and systems for
tracking environmental results of state nutrient reduction activities. These activities
involve (1) improving measures of state reduction strategy performance, (2)
reporting changes in nitrogen and phosphorous concentrations in MARB
streams and rivers from the National Rivers and Streams Assessment, (3)
establishing a shared reporting network of sites with long-term nutrient
monitoring and streamflow records to analyze changes in nutrients and
sediments over time, and (4) updating the 2008 Action Plan through its
involvement in the Gulf Hypoxia Task Force Work Group. And notably, EPA
plans to publish the results of these activities in a biennial report to Congress
required under the newly enacted Harmful Algal Bloom and Hypoxia Research
Control Amendments Act of 2014. The first report will be completed in June 2015.
Based on the Office of Water official response and a subsequent meeting we held
14-P-0348
13

-------
with them, we consider the proposed corrective actions to be responsive and the
recommendation is resolved.
Appendix A contains the Office of Water's response. We also received technical
comments from the Office of Water which are incorporated into the report as
appropriate.
14-P-0348
14

-------
Status of Recommendation and
Potential Monetary Benefits
POTENTIAL MONETARY
BENEFITS (In $000s)
Claimed Agreed-To
Amount Amount
in the Mississippi River Watershed to develop and	for Water
enhance monitoring and assessment systems that
will track the environmental results of state nutrient
reduction activities, including their contribution to
reducing the size of the Gulf of Mexico hypoxic
zone.
RECOMMENDATIONS
Planned
Rec. Page	Completion
No. No.	Subject	Status1 Action Official	Date
1 13 Work with state and federal Task Force members 0 Assistant Administrator 6/30/15
10 = Recommendation is open with agreed-to corrective actions pending.
C = Recommendation is closed with all agreed-to actions completed.
U = Recommendation is unresolved with resolution efforts in progress.
14-P-0348
15

-------
Appendix A
Office of Water Response to Draft Report
July 28, 2014
MEMORANDUM
SUBJECT: Response to Office of Inspector General Draft Report/ Project No. OPE-FY13-0012,
"EPA Needs to Work with States to Develop Strategies for Monitoring the Impact of
State Activities on the Gulf of Mexico Hypoxic Zone" dated June 30, 2014
FROM: Nancy K. Stoner
Acting Assistant Administrator
TO:	Arthur A. Elkins, Jr.
Inspector General
Thank you for the opportunity to respond to the issues and recommendation in the subject audit report.
Following is a summary of the Office of Water's overall position, along with its position on the report
recommendation. We have provided high-level intended corrective actions and estimated completion
dates for that recommendation. For your consideration, we have included a Technical Comments
Attachment to supplement the response.
OFFICE OF WATER'S OVERALL POSITION:
The Office of Water concurs with the recommendation detailed in the report.
OFFICE OF WATER'S RESPONSE TO REPORT RECOMMENDATION: (See next page)
14-P-0348
16

-------
Agreements
No
Recommendation
High-Level Intended Corrective Action(s)
Estimated
Completion
by Quarter
and FY
1
We recommend
that the Assistant
Administrator for
Water work with
state and federal
Task Force
members in the
Mississippi River
watershed to
develop and
enhance
monitoring and
assessment
systems that will
track the
environmental
results of state
nutrient reduction
activities,
including their
contribution to
reducing the size
of the Gulf of
Mexico hypoxic
zone.
Biennial Report to Congress
The Harmful Algal Bloom and Hypoxia Research Control
Amendments Act of 2014 was enacted on June 30, 2014. It
requires the Administrator of the Environmental Protection
Agency, through the Hypoxia Task Force, to submit a progress
report to appropriate congressional committees and the
President within 12 months after the Act's enactment and
biennially thereafter.
The report will describe the progress made by activities directed
by the HTF and carried out or funded by the EPA, and the other
federal and state members, toward attainment of the goals of the
Gulf Hypoxia 2008 Action Plan. For example, it will assess the
progress made toward nutrient load reductions, the response of
the hypoxic zone, and water quality in the
Mississippi/Atchafalaya River Basin.
Below are four current corrective action efforts that address the
recommendation. The progress report can be used to provide
the status of these and future activities aimed at developing and
enhancing monitoring and assessment systems, with the goal of
tracking the environmental results of state strategy
implementation.
Measuring progress on reducing nutrient loads
At the spring 2014 HTF Executive Session, the HTF state and
federal members agreed to identify a set of four to six common
measures that all HTF states would use in measuring progress
in implementing nutrient strategies. This would not preclude
states from developing additional measures to track strategy
implementation progress. We expect that the process will be
completed by the end of the calendar year.
Long term assessment of environmental conditions and
trends
The National Rivers and Streams Assessment (NRSA) is a
statistically-representative probability-based monitoring survey
undertaken every five years by EPA and its state and federal
partners. We plan to use data and analysis generated by the
NRSA surveys to report on the ecological condition of rivers
and streams in the MARB and its sub-basins, including nitrogen
June 30,
2015, and
every other
year
thereafter.
14-P-0348
17

-------


and phosphorus concentrations. These surveys are conducted
every five years to track long-term changes in water quality
across the country. A draft of the first NRSA survey was
released in 2013, and based on samples that were collected in
2008 and 2009. In 2016, we will report on changes in nitrogen
and phosphorous concentrations in MARB streams and rivers at
the Basin and sub-basin levels, based on data collected in
2013/2014. More information on NRSA and other National
Aquatic Resource surveys can be found on their website:
http://water.epa.gov/tvpe/watersheds/monitoring/aquaticsurvev

index, cfm
Gathering existing site-specific monitoring from many
Basin sources into a single location
The HTF formed a MARB Monitoring Collaborative in 2012.
The United States Geological Survey is leading this effort, with
the participation of all HTF states and the EPA. The
Collaborative aims to establish a shared reporting network of
existing sites with long-term nutrient monitoring and
streamflow records. The intent is to use this data to analyze
changes in nutrients and sediments over time.
Gulf Hypoxia Task Force Work Group
The HTF formed a work group at the Coordinating Committee
level in spring 2013 to make recommendations to revise the
Coastal Goal in the 2008 Hypoxia Action Plan and include
possible incremental measures for tracking nitrogen and
phosphorus load reduction activity in the Basin. The work
group will be making final recommendations to the HTF on this
issue at the 2014 fall HTF meeting.
CONTACT INFORMATION
If you have any questions regarding this response, please contact Joe Piotrowski, HTF
Coordinating Committee Co-Chair, Office of Water/Office of Wetlands, Oceans, and
Watersheds on (215) 814-5715. The alternate contact is Hazel Groman, Hypoxia Team Leader,
Office of Wetlands, Oceans and Watersheds/Assessment and Watershed Protection Division. Her
phone number is (202) 566-1219.
cc: Michael H. Shapiro
Marilyn Ramos
Chris Orvin
14-P-0348
18

-------
Distribution
Office of the Administrator
Assistant Administrator for Water
Agency Follow-Up Official (the CFO)
Agency Follow-Up Coordinator
General Counsel
Associate Administrator for Congressional and Intergovernmental Relations
Associate Administrator for External Affairs and Environmental Education
Audit Follow-Up Coordinator, Office of Water
14-P-0348

-------