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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

 

U.S. ENVIRONMENTAL PROTECTION AGENCY

OFFICE OF INSPECTOR GENERAL
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).

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14-P-0348

September 3, 2014

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/oig.

The full report is at:

www.epa.gov/oig/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. 

U.S. Environmental Protection Agency

Office of Inspector General

At a Glance

The EPA lacks 

necessary data to 

determine the impact 

of state nutrient 

reduction strategies 

on the Gulf of Mexico 

hypoxic zone.
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

FROM: Arthur A. Elkins Jr. 

TO: Kenneth J. Kopocis, Deputy Assistant Administrator

Office of Water

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. 

We will post this report to our website at http://www.epa.gov/oig. 

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

WASHINGTON, D.C. 20460

THE INSPECTOR GENERAL
Nutrient Pollution: EPA Needs to Work With State to 14-P-0348

Develop Strategies for Monitoring the Impact of 

State Activities on the Gulf of Mexico Hypoxic Zone

Table of Contents

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
14-P-0348 1

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 5,791miles) or roughly the size of 

Connecticut.
14-P-0348 2

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 Gulf’s 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

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.

0

5,000

10,000

15,000

20,000

25,000

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Kilometers Squared

Size of Gulf Hypoxia

Size of

Hypoxic Zone

5 year

average

Goal
14-P-0348 3

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

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 4

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 5

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 memorandum4reaffirming 

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.

 

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/type/watersheds/named/msbasin/nutrient_strategies.cfm). 

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.
14-P-0348 6

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 7

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 8

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 9

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

Source: OIG analysis of USGS data: 

http://water.usgs.gov/nawqa/sparrow/gulf_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.

80%

12%

8%

Phosphorus

71%

16%

9%

4%

Nitrogen

Agriculture (crops & livestock)

Atmospheric deposition

Urban and population sources

Natural land
14-P-0348 10

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

Source: OIG analysis of Task Force states Nutrient Reduction Strategies from the EPA website:

http://water.epa.gov/type/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 

Task Force State

Final Strategy 

(Y/N) 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
14-P-0348 11

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 12

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 13

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 ForceWork 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 14

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 15

Status of Recommendation and 

Potential Monetary Benefits

RECOMMENDATIONS

POTENTIAL MONETARY 

BENEFITS (in $000s)

Rec. 

No.

Page 

No. Subject Status1 Action Official

Planned 

Completion 

Date

Claimed 

Amount

Agreed-To 

Amount

1 13 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. 

O Assistant Administrator

for Water

6/30/15

1O = 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 16

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 17

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.

1. 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. 

a) 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.

b) 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 18

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/type/watersheds/monitoring/aquaticsurvey

_index.cfm

c) 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.

d) 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 19

Appendix B

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