At a Gla

24-P-0029
March 21, 2024

Multiple Factors Contributed to the Delay in Constructing Combined Sewer
Overflow Tanks at the Gowanus Canal Superfund Site in New York City

Why We Did This Audit

To accomplish this objective:

The U.S. Environmental Protection Agency
Office of Inspector General conducted this
audit to determine the status of the
construction of the combined sewer overflow
tanks at the Gowanus Canal Superfund site
in Brooklyn, New York City. We initiated this
audit in response to an OIG Hotline complaint
and congressional interest. The hotline
complaint alleged that New York City has
failed to construct the tanks in a timely
manner and that EPA Region 2 failed to
enforce the administrative orders that require
the Gowanus Canal Superfund site to have
these tanks. These orders were issued
pursuant to the Comprehensive
Environmental Response, Compensation,
and Liability Act, informally known as
Superfund.

Combined sewer overflow tanks collect
rainwater runoff, domestic sewage, and
industrial wastewater and then transport this
untreated water to a treatment plant. Such
tanks would thus act to prevent untreated
water from flowing into the Gowanus Canal.

Superfund authorizes the EPA to oversee the
cleanup of contaminated sites. The Gowanus
Canal Superfund site is contaminated by
multiple pollutants that may cause cancer and
other health effects.

To support this EPA mission-related
effort:

•	Cleaning up and revitalizing land.

To address this top EPA management
challenge:

•	Maximizing compliance with
environmental laws and regulations.

Address inquiries to our public affairs
office at (202) 566-2391 or
OIG.PublicAffairs@epa.gov.

List of OIG reports.

What We Found

Construction of the two combined sewer overflow, or CSO, tanks for the Gowanus
Canal Superfund site is approximately six-and-a-half years behind the original
schedule, based on a comparison of Region 2's estimated project timelines in the
2013 Record of Decision, or ROD, that detailed the selected remedy for cleaning up
the site against the revised project milestones outlined in a 2021 administrative order.
Multiple factors contributed to this delay:

•	New York City and Region 2 disagreed about important aspects of the ROD's
CSO remedy, including CSO tank design and siting. They also disagreed about
the estimated costs and schedule for constructing the CSO tanks.

•	New York City and Region 2 agreed years after the ROD was issued that the city
could acquire privately owned land via eminent domain rather than siting the
tanks on city-owned land, as initially recommended by Region 2.

•	Despite waiving its right to change the CSO tank remedy, the city spent
approximately two years designing a CSO tunnel in lieu of tanks, and Region 2
spent another year evaluating and ultimately denying the CSO tunnel design.

•	New York City defunded design efforts for the smaller Owls Head tank for about
four years and allocated those funds to the larger Red Hook tank design.

•	Region 2 required New York City to salvage building materials from existing
structures at the larger CSO tank site after the city had completed a significant
portion of the design work. This caused an approximate two-year delay.

•	Region 2 waited until 2021 to issue an administrative order that cited New York
City's noncompliance with prior administrative orders and required the city to
construct the CSO tanks by specific dates.

The causes for the delay occurred primarily before 2021, and Region 2 told us in
February 2024 that "the city's current level of performance on the [CSO] tank projects
has been highly satisfactory." The past delay, however, has prolonged exposures to
contaminants in the Gowanus Canal, and could result in increased costs, such as
redredging the canal. As of this audit, the project cost is estimated to be more than
$1 billion—a more than 1,300-percent increase from Region 2's original estimate.

CSO tank construction delays may increase taxpayer costs to complete
the cleanup remedy at the Gowanus Canal Superfund site and prolong
community exposure to contaminants.

Recommendations and Planned Agency Corrective Actions

We recommend that the regional administrator for Region 2 closely monitor CSO
tank construction progress and take immediate action if New York City does not meet
the construction requirements and milestones listed in the 2021 administrative order.
We further recommend that Region 2 keep the community surrounding the Gowanus
Canal apprised of the city's progress. The Agency agreed with our recommendations
and provided acceptable planned corrective actions and estimated completion dates.
We consider the recommendations resolved with corrective actions pending.


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