Fact Sheet1

Water Quality Credits at Former Mine Lands:

Improving America's Water Resources, Reclaiming Lost Landscapes

This fact sheet is intended to educate communities, mine land owners, potentially responsible
parties, companies, and other interested groups about how water quality trading credits can be used
as part of an integrated strategy to clean up and restore former mine lands. It is one of a series of
papers that describe a variety of tools that can be used to reuse former mining sites. Other topics
in this series include carbon sequestration, wetlands banking, and land conservation. This fact sheet
focuses on one tool, water quality trading credits, that may be applicable to only a small percentage
of the former mine lands throughout the countiy. However, given the number of former mine lands,
that small percentage may represent thousands of actual sites. This document also describes the
opportunities and limitations associated with using water quality trading credits and provides
resource and contact information.


In 1972, the U.S. Congress passed the Clean Water Act (CWA) to restore and maintain the chemical,
physical, and biological integrity of the nation's waters. Thirty years later, forty percent of the
country's rivers, forty-five percent of its streams, and fifty percent of all lakes assessed by states and
tribes are still not clean enough to meet the goals set by the Act. In light of the statutory obligations
under CWA to meet those goals, some stakeholders have begun seeking innovative ways to improve
water quality.

EPA is investigating innovative approaches to
encourage the cleanup of former mine lands. One
potential remediation opportunity for former mine lands
that contaminate water resources is the creation and
sale of water quality credits. This fact sheet will
introduce interested parties to this potentially useful,
and dollar-generating alternative to traditional cleanup
approaches. A West Virginia community's efforts to
improve its local river and watershed serves as a case
study to illustrate processes needed to capitalize on
water quality credits.

Former mine lands continue to cause water quality
problems because they are a major source of heavy
metal pollutants. Mining often requires deforestation

1 This document does not represent official US EPA policy or guidance. Rather this material presents
alternative approaches which may lead to environmental improvements at mining sites.

Acid mine drainage at Minnesota Ridge,
Black Hills, South Dakota. (Source: BLM)


and road construction, both of which reduce water quality due to sediment and nutrient runoff. In
addition, mining and milling processes may also produce acid mine drainage (AMD), a highly acidic
byproduct laced with dissolved heavy metals. This drainage can flow into streams and groundwater,
harming wildlife and making the water unsafe for human consumption or recreation.

What are Water Quality Trading Credits?

EPA believes that market-based approaches, such as the trading of water quality credits, can improve
water quality and provide more flexibility and better results than traditional regulatory approaches.
On January 13, 2003, EPA issued the Water Quality Trading Policy (see
http://www.epa.gov/owow/watershed/trading/finalpolicv2003.html). The policy provides guidance
to states, interstate agencies, and tribes in the development and implementation of water quality
trading programs for nutrients, sediments, and other pollutants.

Water quality credits are created when water quality is improved beyond government requirements.
In most cases, a managing authority would establish a credit trading system and would determine
what qualifies as a credit under the system. A water quality trading system may encompass an entire
watershed or may be used to address a single polluter. For instance, a single polluter with more than
one facility could reduce discharges at one facility to generate credits for another facility.

The entity that generated the credits can sell a percentage of the credits to polluters that are unable,
either economically or technically, to comply with pollution limits. The remaining unsold credits
are permanently taken out of the trading market and "retired." By lowering the overall amount of
effluent that can be traded, this retirement mechanism ensures a net improvement in water quality.
The credit generator may also choose to use the saleable credits itself. As in the single polluter
example, an entity that has more than one polluting facilities in the same watershed may use credits
it created to offset its own discharges.

Several pilot proj ects for water quality trading credits are already underway. EPA's Region 10 office
in Seattle, Washington, is helping dischargers to the Lower Boise River develop the knowledge base
and techniques they need to achieve pollution reductions through trades. In West Virginia, EPA is
also supporting a stakeholder-driven project to achieve reductions in acid mine drainage pollution
in the Cheat River watershed through a credit trading program.

Potential Benefits of Water Quality Trading Credits

The use of water quality credits has a number of possible advantages over traditional systems for
eliciting water quality improvements. Some potential benefits of this approach are economic and
environmental, but water quality credits trading can have social benefits as well.


Economic and Environmental Benefits

Because water quality credits trading uses market forces to encourage cleanup of watersheds, it may
be a more cost-effective solution than traditional approaches. Owners of former mine lands or groups
who generate the credits can receive direct income by selling the credits to polluters within the
watershed who are otherwise unable to meet pollution standards. Credit purchasers also benefit
financially because, for them, buying credits costs less than meeting pollution limits through
traditional means. By allowing remuneration for those who generate water quality credits, the new
policy encourages polluters to fund activities—such as constructing wetlands, removing mine
tailings, and planting vegetation—that benefit water quality within the watershed.

Planting trees and other vegetation can be an effective and low cost way to clean up contaminants
associated with mining and to reduce soil erosion.2 Revegetation helps to remediate former mine
lands in several ways. The tree and plant roots stabilize the mine land soil, which is often highly
erodible. By holding the soil in place the plants prevent excess sediments and nutrients from
washing into nearby streams and rivers during storms. Trees, grasses, and other vegetation may also
help remediate sites by drawing up some minerals and water pollutants through their root systems
and either storing the contaminants, immobilizing them, or metabolizing them. This process is
called phytoremediation.

Not only can revegetation and other cleanup activities generate water quality credits, they also create
wildlife habitat and natural landscapes that attract tourists and local recreation enthusiasts. The
increased tourism and recreational use in turn bring economic benefits to the surrounding localities
in the form of higher tax revenues and more commerce for local businesses.


Soil improvement may be a necessary first step to allow trees to live and grow.



Sucher Creek Project, Oregon

The Sucher Creek Project in Oregon restored a functioning stream bed and planted vegetation; the result,
improved salmon and wildlife habitat. (Source: BLM)

Social Benefits

The development of a successful water quality trading system within a watershed may foster
relationships among a wide range of groups and agencies such as states, tribes, homeowners, farmers
and ranchers, fishermen, community leaders, members of civic and environmental groups, water and
sewer system managers, business and local government representatives, EPA, the U.S. Forest
Service, and the U.S. Corps of Engineers. These kinds of partnerships can lead to grassroots
alliances committed to long-term environmental improvements. Such collaboration can tap into
unexpected reservoirs of energy, talent, and inspiration. Watershed partnerships can also generate
new ideas and information, help defuse polarization between competing interests, and lead to a
common understanding of individual roles, priorities, and responsibilities. By drawing attention to
the cumulative effects of human activities and focusing efforts on the most critical problems within
a watershed, partnerships provide opportunities for communities to build sustainable futures.

Applying the Water Quality Trading Policy

The potential economic and environmental benefits associated with the remediation of streams,
rivers, and watersheds have prompted several local communities to explore the viability of water
quality trading credits. These communities are moving forward with the development of trading
systems to find a more efficient alternative to traditional methods for cleaning up water.


In FY2Q02, EPA provided $800,000 to
support eleven water quality trading pilot
projects around the country.

011303.htm) A number of the pilot
projects target excess nutrients in
watersheds, but one project, involving the
Cheat River in West Virginia, specifically
addresses acid mine drainage caused by
former mining sites. The effort to reduce
AMD and improve water quality in the
Cheat watershed received $50,000 and
illustrates how EPA's guidance can be
applied to remediate former mine lands.

The experience in the Cheat watershed is
only one example of the many ways that
the water quality trading concept may be
adapted. Using water quality credits to
address contamination from mines is such
a new approach that applications of it are still experimental, and because water quality problems are
site specific, trading systems should be tailored to meet the needs of each watershed. The following
description of the framework being developed for the Cheat watershed shows how stakeholders
created a water quality trading system to address acid mine drainage from former mine lands.

The Cheat River Trading Framework—A Case Study

The Cheat River is the largest undammed river east of the Mississippi and runs north to south
through eastern West Virginia. Its watershed encompasses more than 900,000 acres. State agencies
estimate that about 200 miles of the Cheat River are affected by acid mine drainage, a legacy left by
more than a century of mining in the area. Since 1994, an alliance of government agencies, private
industry, academics, community organizations, and landowners has worked to address the severe
AMD contamination in the Cheat watershed. These diverse interests formed a Stakeholder
Committee, which is using the funding from EPA, supplemented by state funds, to develop a water
quality trading framework. Taking the lead in this effort is a subgroup of the Committee referred
to as the technical team. This team is basing the trading framework on total maximum daily load
allocations (TMDLs)3 for fifty-five segments of the Cheat River that were set by EPA in 2001.


The maximum amount of a pollutant a body of water can accommodate without becoming impaired is
termed the total maximum daily load (TMDL). EPA's TMDL programs allow trading among all types of
contaminant sources. Under the Clean Water Act. specific discharge sources of polluted water (known as point

Discharge to Muddy Creek

Untreated acid mine drainage in the Cheat River
Watershed. (Source: WVDEP 1996)


In designing the framework, the technical team
is considering a variety of elements, some of
which are unique to watersheds degraded by
acid mine drainage. They include:

•	allowing trades among different
pollutants (cross-pollutant trades) as
well as same-pollutant trades;

•	specifically targeting acid mine drainage
pollutants such as iron, aluminum, and

•	creating a local board (the Cheat
Watershed Restoration Authority) to
manage trades and ensure that they
result in a net environmental
improvement; and

•	allowing trades between point sources
and non-point sources.

Trading Scenarios

The Stakeholder Committee envisions two
different kinds of possible trades: same-
pollutant trades and cross-pollutant trades.

Same-pollutant trades are possible within the
Cheat watershed because it contains permitted
as well as former mine lands. Permitted mines

generate the same kinds of pollutants that exist at former mines, so trades could be made on a
pollutant-by-pollutant basis. A typical same-pollutant trading scenario for the Cheat would involve
a permitted coal mine that has been assigned new, stricter discharge limits under the TMDL. If
meeting these limits would entail significant costs, the mine owner may prefer to purchase pollution

Water Quality Trading Credit Terms

Total Maximum Daily Load: The amount of a
pollutant a body of water can accommodate and still
meet water quality standards.

Abandoned Mine Land Reclamation Trust Fund:

A program established under the Surface Mining Law
requiring mine operators to pay certain fees into a
fund for reclamation of mines abandoned before

Same-Pollutant Trades: Trading of water quality
credits in which increases in a certain pollutant are
offset by reductions in that same pollutant.
Cross-Pollutant Trades: Water quality credit trades
in which increases in one pollutant can be offset by
reductions in different pollutant.

Point Source: An identifiable and confined discharge
point for one or more water pollutants, such as an
industrial facility.

Non-point Source: A diffuse, unconfined discharge
of polluted water into a water body, such as runoff
from city streets and agricultural areas.

Information Sources:

http; //www. o smre. go v/fund stat .htm
http;//do wnstreamstrategies.com/CheatTradingFrame
work FINAL2-18-04.doc

Stevenson, L. Harold and Bruce Wyman. 1991. The
Facts on File Dictionary of Environmental Science.

Facts on File, Inc. pp. 170 and 190.

sources) are subject to restrictions on the physical, chemical, and biological properties of their discharges. These
point sources include sewage treatment plants, municipal storm water collection systems, and industrial facilities
such as power plants. Pollution from non-point sources includes fertilizer and pesticides/herbicides that runoff from
agricultural fields and golf courses, siltation from agriculture and logging, acidic drainage from mine tailings, the
"settling" of pollutants from the atmosphere (known as deposition), and bacteria from livestock and faulty septic
systems. Non-point-source pollution is best addressed together with point-source discharges in a watershed-wide
approach that considers the cumulative effects of all pollution sources—including natural sources—affecting the
entire watershed.


reduction credits at a lower cost, rather than investing in additional discharge reductions. The mine
owner could then purchase water quality credits in lieu of meeting the discharge limits. In the Cheat
watershed, the most likely source of credits would be acid mine drainage remediation on the former
mine lands.

Several other scenarios involving different credit buyers and credit sellers are also possible. For
example, a more complex scenario would involve trading among different kinds of pollutants. This
type of cross-pollutant trade depends on an ability to calculate equivalencies between ecological
condition, environmental stressors, and dollars. The Cheat watershed technical team developed
equivalencies between acid mine drainage and thermal effluent from a power plant. These
equivalencies would make it possible for an existing coal-fired power plant on the Cheat River to
offset its thermal effluent4 by purchasing credits generated through AMD remediation.

The team calculated that thermal effluent produced by the plant has an ecological effect equivalent
to 1,110 tons per year of acidity. Given this impact and the cost of AMD remediation ($300 for each
ton of acidity per year [DRAFT Cheat Trading Report:
http://wvwri.nrcce.wvu.edu/CheatTradingTEXT-DRAFT-10Nov03.pdf1). the dollar equivalency
between the plant's thermal effluent and AMD would be $333,087 per year. If it would cost the
power plant more than this amount to reduce its thermal effluent to required levels, the plant owners
would likely be willing to buy trading credits in return for an extension of their thermal variance.
(For more details about calculating cross-pollutant equivalencies, see the diagram in Appendix B.)

Under the nascent Cheat trading
framework, a Cheat Water Restoration
Authority (CWRA) would oversee both
types of trades—same-pollutant and
cross-pollutant. The Cheat Watershed
Restoration Authority would also ensure
that all trades are acceptable to
stakeholders and that they meet
watershed restoration goals. Keith
Pitzer, a member of the Stakeholder
Committee, says one of the main
benefits of the trading framework and
CWRA is that together they would serve
to unify restoration activities watershed-
wide so financial resources can be used
most efficiently.

Treated Area

Treatment on Sovern Run, a tributary that flows into Cheat

River. (Source:WVDEP)


Thermal effluent is excessive waste heat added to a water body, usually by the discharge of cooling water
from an electric power plant. The shift to a warmer aquatic environment can cause changes in species composition
and can lower the dissolved oxygen content of the water.


To generate the credits, the state may fund remediation through the Abandoned Mine Land Trust
Fund. Other agencies such as the Army Corps of Engineers or the Office of Surface Mining may
also provide grants or use other mechanisms to fund cleanup activities such as:

•	passive treatments including the creation of limestone leach beds, open limestone channels,
wetland systems or other alkaline producing systems; and

•	active systems that use chemical alkaline treatment, settling ponds, and sludge removal.

Requirements and Limitations

EPA's Water Quality Trading Policy presents several recommendations for trading water quality
credits. First, any water quality trading or other market-based programs must be consistent with the
Clean Water Act and water quality management plans. In addition, all water quality trading should
take place within the same watershed or defined area for which a TMDL has been approved. This
stipulation helps ensure that watersheds and surrounding areas experience a net improvement in
water quality.

Currently, EPA does not support trading of certain chemicals such as persistent bioaccumulative
toxics (PBTs) including dioxins, furans, polychlorinated biphenyls, and mercury. PBTs are slow to
break down in the environment and they bioaccumulate in food chains, posing human health and
ecosystem risks to current and future generations. EPA also does not support trading that results in
locally high pollutant concentrations, or "hot spots." Without this restriction, trading programs could
lead to net pollution reductions across a watershed while at the same time creating a localized
pollution increase. By preventing hot spots EPA helps to protect communities from bearing an
unfair and disproportionate amount of water pollution.

Finally, credits should be generated before or during the time period in which they are used. The
length of the appropriate time period is stipulated by the monthly, seasonal, or annual requirements
of aNational Pollutant Discharge Elimination System5 permit. Polluters interested in pursuing water
trading credits should work with their local or state water authority and watershed managers to
understand the specific requirements for their particular watershed.

See Appendix A for a selection of grants that can provide technical and financial assistance for the
reclamation of watersheds contaminated by mining activities.

5Under the Clean Water Act, all point sources of water pollution are required to obtain a
National Pollutant Discharge Elimination System permit issued by the U.S. EPA or by a state
environmental agency. The permit lists all permissible discharges and/or the level of cleanup
required for wastewater.



The creation of water quality trading credits may present a new and exciting incentive for cleaning
up former mine lands on a watershed level. Water quality trading credits have the potential to allow
communities to benefit from improved water quality beyond that required by governmental
regulations, and to provide a way for parties interested in improving water quality to financially
benefit. Tools such as carbon sequestration, wetland banking, and land conservation could be used
in conjunction with water quality trading credits to increase economic opportunities, tourism, and
recreation. The creation of water quality trading credits can be a win-win solution. In a successful
trading system, groups generating the credits are compensated for improving the quality of the
environment, while communities enjoy the long-term benefits associated with cleaner watersheds.


Contact Information

•	Abandoned Mine Lands Reclamation Program in the Office of Surface Mining provides information
about funding projects at: http; //www. o smre. go v/o sm ami .htm and can be reached at: (202) 208-2719.

•	U.S. Army Corps of Engineers' Restoration of Abandoned Mine Sites program can be accessed at:
http://www .nwo.usace.armv.mil/litml/rams/rams.html

•	EPA's Abandoned Mine Land Team can provide communities with support and resources as they
explore reuse opportunities at former mine lands. For more information about EPA's Abandoned
Mine Land Tearn, please see the W eb site at: http://www.epa.gov/sup erfund/pro grams/ami/

•	EPA's office of Wetlands, Oceans, and Watershed, which approves TMDL management programs can
be reached http://www.epa.gov/owow/ This office also provides information and guidance on water
quality trading programs at: http://www.epa.gov/owow/watershed/trading.htm

•	EPA also supports the reuse of former mining sites through the Superfund Redevelopment Initiative
(SRI). For further information see the (SRI) Web site at: www.epa.gov/superfund/programs/recvcle.
which provides tools, case studies, and resource information on remediating and reusing Superfund
sites, including abandoned mine lands.



National Water Quality Inventory, 2000 Report, EPA.

Clean Water Action Plan, 1998

Final Water Quality Trading Policy


EPA 2003 Water Quality Trading Policy: Questions and Answers

Information about the Cheat River Work Group taken from:
http ://downstreamstrategies .com/ CheatT radingMinutes6-27-03. doc
http ://downstreamstrategies .com/ CheatT radingMinutes5-8-03. doc

Information on Cheat River Water Quality Trading Framework taken from:
wvwri.nrcce.wvu.edu/CheatTradingTEXT-DRAFT-10Nov03 .pdf

Managing Water Resources: The Watershed Approach Hz3YJ:www.epri.com/corporate/discover epri/n
ews/HotTopics/env WaterResources.pdf+water+qualitv+trading+credits+on+mine+lands&hl=en

Information about the Clean Water Initiative:

Region 10 Water Quality Trading Assessment Handbook


South Dakota department of environment and natural resources Web site provided the picture of
the Minnesota Ridge Mine:


Information about the Kalamazoo Water Quality Trading Demonstration Project was provided by
the state of Michigan's Department of Environmental Quality and Kieser and Associates:
http ://www. deq.state.mi.us/documents/deq -swq -trading-T radingDemonstration. doc

The West Virginia DEP Web site provided pictures from the Cheat watershed:
http ://www.wvdep. org/alt. cfm?asid=96



The following table provides a selection of grants that can provide technical and financial
assistance for the reclamation of watersheds contaminated by mining activities. Additional
grants can be identified using the web tool available at the following link:

Catalog of Federal Funding Sources for Watershed Protection: The Catalog of Federal
Funding Sources for Watershed Protection Web site is a searchable database of financial
assistance sources (grants, loans, cost-sharing) available to fund a variety of watershed protection
projects. Interested parties can search using subject matter criteria or words in the title of the
funding program. Criteria searches include the type of organization (e.g., non-profit groups,
private landowner, state, business), type of assistance sought (grants or loans), and keywords
(e.g., agriculture, wildlife habitat).
http ://cfpub. epa. gov/ fedfund/

Table of Funding Opportunities for Watershed Cleanup:

Name &


Abandoned Mine



http://www.o smr


rams .htm

The Abandoned Mine Land Reclamation (AMLR) Program is designed to protect the
public and correct environmental damage caused by coal and, to a limited extent, non-
coal mining practices that occurred prior to August 3, 1977. AMLR provides for the
restoration of eligible lands mined and abandoned or left inadequately restored. AMLR is
divided into two programs, the State Indian Reclamation Program and the Federal
Reclamation Program. Both programs address problems such as dangerous highwalls,
slides, subsidence, dangerous portals, and polluted water. Water projects related to mine
drainage acidity, metals, or toxicity may be eligible under the AMLR's Appalachian
Clean Streams Initiative. As part of the Appalachian Clean Streams initiative, funds are
available to award cooperative agreements to not-for-profit organizations, especially
small watershed groups, that undertake local acid mine drainage (AMD) reclamation
projects. The maximum award amount for each cooperative agreement will normally be
$100,000 in order to assist as many groups as possible to undertake actual construction
projects to clean streams impacted by acid mine drainage.

W atershed

Protection and

Flood Prevention





Also known as the "Small Watershed Program" or the "PL 566 Program," this program
provides technical and financial assistance to address resource and related economic
problems on a watershed basis. Projects related to watershed protection, flood
prevention, water supply, water quality, erosion and sediment control, wetland creation
and restoration, fish and wildlife habitat enhancement, and public recreation are eligible
for assistance. Technical and financial assistance is also available for planning and
installation of projects to protect, develop, and use land and water resources in small


Name &



Equity Act for

the 21 st Century-



littc: //www. fliwa.


The Transportation Equity Act for the 21st Century (TEA-21) funds numerous
transportation programs to improve the nation's transportation infrastructure, enhance
economic growth, and protect the environment. Through increased funding to the Surface
Transportation Program (STP) and the National Highway System (NHS), TEA-21 allows
for more environmental projects. States may spend up to 20 percent of their STP dollars
(used for transportation facility reconstruction, rehabilitation, resurfacing, or restoration
projects) for environmental restoration and pollution abatement projects, including the
construction of stormwater treatment systems. Additionally, each state sets aside 10
percent of STP funds for transportation enhancement projects, which can include
acquisition of conservation and scenic easements, wetland mitigation, and pollution
abatement, as well as scenic beautification, pedestrian and bicycle trails, archaeological
planning, and historic preservation. These varied project types can be used to protect
source water areas during construction of transportation corridors.

Grants for Clean
Water State
Revolving Funds

EPA awards grants to states to capitalize their Clean Water State Revolving Funds
(CWSRFs). The states, through the CWSRF, make loans for high-priority water quality
activities. As loan recipients make payments back into the fund, money is available for
new loans to be issued to other recipients. Although traditionally used to build
wastewater treatment facilities, loans are also used for other water quality management
and source water protection activities, including (1) agricultural, silvicultural, rural, and
urban runoff control; (2) estuary improvement projects; (3) wet weather flow control,
including storm water and sewer overflows; (4) alternative wastewater treatment
technologies; and (5) landfills and riparian buffers.

Grants for
Drinking Water
State Revolving


EPA awards grants to states to capitalize their Drinking Water State Revolving Fund
(DW SRF). States use a portion of their capitalization grants to set up a revolving fund
from which loans and other types of assistance are provided to eligible public water
systems (publicly and privately owned) to finance the costs of infrastructure projects.
Loan repayments made by assistance recipients provide a continuing source of
infrastructure financing. States may also use a portion of their capitalization grants to
fund set-aside activities that help to prevent contamination of surface and ground water
drinking water supplies, as well as enhance water system management through source
water protection, capacity development, and operator certification programs.

Great Lakes





EPA's Great Lakes Program issues awards to monitor Great Lakes ecosystem indicators;
provides public access to Great Lakes data; helps communities address contaminated
sediments in their harbors; supports local protection and restoration of important habitats;
promotes pollution prevention through activities and projects such as the Canada-U.S.
Binational Toxics Strategy; and provides assistance to implement community-based
Remedial Action Plans for Areas of Concern and for development of Lake-wide
Management Plans and the reduction of critical pollutants pursuant to those plans.

Nonpoint Source


Grants (319





The 319 program provides formula grants to the states and tribes to implement nonpoint
source projects and programs in accordance with section 319 of the Clean Water Act
(CWA). Nonpoint source pollution reduction projects can be used to protect source water
areas and the general quality of water resources in a watershed. Examples of previously
funded projects include installation of best management practices (BMPs) for animal
waste; design and implementation of BMP systems for stream, lake, and estuary
watersheds; basinwide landowner education programs; and lake projects previously
funded under the CWA section 314 Clean Lakes Program.


Name &


U.S. Army Corps

of Engineers




httc: //w w w. u s ac e


The types of work that can be accomplished under this program are structural
or operational changes to improve the environment, such as reconnecting old river
channels and backwaters, creating wetland sub-impoundments on the perimeters of
reservoirs, improving water quality through the reduction of erosion and sedimentation,
manipulating wetlands and vegetation in shallow headwaters of reservoirs, and planting
woody vegetation in flood plains. If a non-Federal sponsor is interested in cost-sharing a
project, the Corps will prepare a study proposal at 100 percent Federal cost. If the study
proposal is approved, the subsequent costs for the feasibility study, plans and
specifications, and construction are cost-shared. The sponsor's share is 35 percent of
these costs but is not payable unless and until the project enters the construction phase.
In-kind services provided during design or construction can be credited toward a
sponsor's share. Sponsors are usually public agencies; however, Indian Tribes and
national nonprofit organizations such as Ducks Unlimited and the National Wildlife
Federation may also qualify as sponsors. A private interest may qualify as a non-Federal
sponsor if the proposed modifications do not require future operation and maintenance.

U.S. Army Corps
of Engineers
Assistance to the


Studies are cost-shared on a 50-50 basis with one (or more) non-Federal sponsor (a State,
a public entity within a State, or an Indian Tribe). Assistance, not to exceed $500,000 in
funds per State or Tribe per year, can be granted for: flood damage reduction; hydrologic
analysis; bank stabilization; hydraulic analysis; sedimentation; hydropower; dredging;
flood hazard mitigation; navigation; environmental preservation and enhancement;
hazardous, toxic, and radioactive wastes; fish, wildlife, water conservation; cultural
resources; water quality; flood plain information; surface water; ecosystem and watershed
planning; ground water; recreation; and streambed degradation.

U.S. Army Corps
of Engineers
Restoration of
Abandoned Mine


This program provides technical planning and design assistance to Federal and non-
Federal interests for carrying out projects to address water quality problems caused by
drainage and related activities from abandoned and inactive non-coal mines. It also
provides assistance to non-Federal and nonprofit entities to develop, manage, and
maintain a database of technologies for reclamation of abandoned and inactive non-coal
mine sites. Cost-sharing with sponsors is authorized for both Federal and non-Federal
agencies. The Federal share of the cost of a project carried out under this program is 50
percent, except for any project located on Federal lands, in which case, the Federal share
is 100 percent of the cost. The Corps' share will be determined through negotiation with
the other Federal agency. Assistance may be provided under the RAMS program in
support of a Federal or non-Federal project for the following purposes: (1) Response,
control, and remediation of hazardous, toxic, and radioactive waste and improvement of
the quality of the environment associated with abandoned or inactive non-coal mines. (2)
Restoration and protection of streams, rivers, wetlands, groundwater sources, and other
water bodies and all ecosystems, including terrestrial ecosystems degraded, or with the
potential to become degraded, from abandoned or inactive non-coal mines. (3)
Demonstration and implementation of treatment technologies, including innovative and
alternative technologies, to minimize or eliminate adverse environmental effects
associated with abandoned or inactive non-coal mines. (4) Demonstration and
implementation of management practices to address environmental effects associated
with abandoned or inactive non-coal mines. (5) Remediation and restoration of
abandoned or inactive non-coal mine sites for public health or safety purposes. (6)
Expedition of the remediation or restoration of abandoned or inactive non-coal mines to
minimize adverse impacts to the environment.


Name &


U.S. Army Corps
of Engineers
Water Resources


This program is designed to assist with the construction of large projects to reduce flood
damages or to restore the environment and to provide Corps assistance in resolving more
complex flood-related water resources problems. This program includes projects ranging
from those that solve costly flood problems for a single community to those that solve
more complex flooding problems involving multiple communities or large agricultural
areas. This program can be used to evaluate multipurpose projects that can include flood
damage reduction, water supply, ecosystem restoration, sedimentation reduction, cultural
resources preservation, recreation, or other purposes. Examples of projects developed
under this program are reservoirs, diversions, levees, channels, floodwalls, pump stations,
and nonstructural measures such as flood plain parks, flood warning systems, flood
proofing, and the relocation of flood-prone development. The Corps works with the
project sponsor to (1) define the problem and related water resources opportunities, (2)
evaluate flood control or multipurpose solutions, (3) select a plan, (4) develop the design,
and (5) construct a project. The reconnaissance study determines if there is at least one
potentially feasible solution to the identified water resources problem. The $100,000 cost
of the reconnaissance study is paid by the Federal Government. If a feasible solution is
found during the reconnaissance study, the Corps, along with a non-Federal sponsor,
conducts a feasibility study (1) to further evaluate the plan identified in the
reconnaissance study and any other potentially feasible solutions and (2) to determine
whether the Federal Government and the non-Federal sponsor should construct the
project. Fifty percent of the cost of the feasibility study is paid by the non-Federal
sponsor in the form of cash and in-kind services.

Water Pollution
Control Program


Section 106 of the Clean W ater Act authorizes EPA to provide federal assistance to
states (including territories, the District of Columbia, and Indian Tribes) and interstate
agencies to establish and implement ongoing water pollution control programs.
Prevention and control measures supported by State Water Quality Management
programs include permitting, pollution control activities, surveillance, monitoring, and
enforcement; advice and assistance to local agencies; and the provision of training and
public information.

Water Quality







Grants are provided to support the creation of unique and new approaches to meeting
stormwater, sanitary sewer, and combined sewer outflows, biosolids, and pretreatment
requirements, as well as enhancing state capabilities. Eligible projects include research,
investigations, experiments, training, demonstrations, surveys, and studies related to the
causes, effects, extent, and prevention of pollution.

W atershed

httD://www. river
cfm?doc id=94

The Clean Water Action Plan calls for the creation of a dedicated source of funding to build
the capacity of existing or new watershed partnerships to protect and restore their watershed.
These partnerships would serve as national demonstrations or models of how to bring
together diverse interests to achieve watershed protection and restoration and of how to
ensure diversity in watershed partnerships. In September 1998, the Environmental Protection
Agency's Office of Wetlands, Oceans, & Watersheds selected River Network to coordinate
and administer the Watershed Assistance Grants Program (W AG). The WAG program will
make grants to local watershed partnerships to support their organizational development and
long-term effectiveness. Grants will be distributed to a pool of applicants, which are diverse
in terms of geography, watershed issues, the type of partnership, and approaches.



Determining Cross-pollutant Equivalencies